I. Introduction

In the Philippines, many people still equate a tax declaration with “ownership.” This belief becomes especially problematic where the land involved is actually unclassified forest land—part of the public domain that is inalienable and under the administration of the State.

This article explains, in a Philippine legal context, how tax declarations work, why they sometimes end up being issued over unclassified forest lands, and under what grounds and processes such tax declarations may be cancelled. It also discusses the effects of such cancellation, interaction with DENR land classification, and common issues in practice.

II. Legal Framework: Public Domain and Forest Lands

A. The Regalian Doctrine

The 1987 Constitution, Article XII, Section 2, embodies the Regalian doctrine:

All lands of the public domain, waters, minerals, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State.
With very limited exceptions, natural resources (including forest lands) cannot be alienated; only their use may be granted through licenses, concessions, leases, or production-sharing agreements.

B. Classification of Lands of the Public Domain

Lands of the public domain are traditionally classified as:

Agricultural
Forest or Timber
Mineral
National Parks

Only agricultural lands may be declared alienable and disposable (A&D) and then be the subject of private ownership (through homestead, sale, free patents, judicial confirmation, etc.).

Forest lands and national parks are outside the commerce of man. They cannot be validly titled or owned by private parties except through special laws, and even long occupation does not ripen into ownership.

C. Unclassified Public Forest under P.D. No. 705

Presidential Decree No. 705 (Revised Forestry Code) provides that:

All unclassified lands of the public domain are deemed public forest.

Thus, if a portion of land has not yet been classified as A&D by competent authority (DENR), it is treated as “unclassified public forest”, i.e., forest land.

Key points:

Only the State, through the President or delegated authority (now through the DENR Secretary via land classification projects), may reclassify forest land into A&D.
Until such official reclassification is done and duly approved, the land remains forest land regardless of tax declarations, private surveys, or long occupation.

III. Real Property Taxation and Tax Declarations

A. Nature and Purpose of a Tax Declaration

A tax declaration is a document issued by the city or municipal assessor describing a parcel of real property and indicating its assessed value for purposes of real property tax under the Local Government Code of 1991 (R.A. 7160).

It serves to:

Place property on the assessment roll of the LGU;
Provide a basis for computing real property tax (RPT), special education fund tax, and other local impositions;
Reflect the declared possessor or claimant, but not conclusively the owner.

Under Philippine jurisprudence, a tax declaration:

Is not a mode of acquiring ownership;
Is at best secondary evidence of claim or possession;
Cannot prevail over Torrens titles or legal classification of the land as forest or public domain.

B. Properties Subject to Real Property Tax

Under the Local Government Code, real property tax applies to real property not exempt and located within the LGU’s territory.

Section 234 (LGC) exempts, among others:

Real property owned by the Republic of the Philippines, except when the beneficial use has been granted to a taxable person.

Forest lands of the public domain, owned by the State and not leased or granted for private beneficial use, are generally exempt and should not be assessed for RPT.

IV. How Tax Declarations End Up Over Unclassified Forest Lands

Despite the rules, it is not uncommon to find tax declarations issued over forest lands or unclassified public forest, due to:

Historical practice – Local assessors historically declared lands based on occupation or claims, sometimes without checking DENR land classification.
Mapping and survey gaps – Inaccurate or outdated cadastral maps, or absence of clear delineation between forest lands and A&D lands.
Erroneous assumptions – Local officials or claimants assuming that long possession transforms public forest into private land.
Pressure or misrepresentation – Claimants submitting surveys or documents that make land appear as alienable when it is not, sometimes involving falsified or misleading certifications.

When the discrepancy is later discovered (often via DENR certifications or updated land classification maps), the question arises: Should the tax declaration be cancelled? Usually, the answer is yes.

V. Legal Basis for Cancellation of Tax Declarations Over Unclassified Forest Lands

A. Lack of Taxable Subject

If a parcel of land is unclassified public forest, it is:

Owned by the Republic;
Not A&D agricultural land;
Generally exempt from RPT unless beneficial use has been granted to a taxable entity.

Where there is no taxable subject (i.e., private real property), the assessment and corresponding tax declaration are void for lack of basis.

B. Lack of Jurisdiction or Authority of the Assessor

LGU assessors have authority only over properties properly subject to assessment. When the land is inalienable public forest, the assessor has no authority to treat it as taxable private property. The tax declaration is then an ultra vires act.

C. Supremacy of Land Classification by DENR

Only the DENR, under P.D. 705 and related issuances, can classify or certify the status of public lands as forest or alienable.

Thus:

A DENR certification and land classification map showing that the land is within unclassified public forest or other forest category will prevail over tax declarations.
Courts and administrative bodies consistently treat forest classification as controlling.

D. Jurisprudential Doctrines (General Principles)

Philippine Supreme Court rulings have consistently held, in essence, that:

Tax declarations and realty tax payments do not confer ownership over forest lands.
The government is not estopped by erroneous issuance of tax declarations or even titles covering inalienable lands.
Where land is shown by official classification to be forest land at the relevant time, private claims based on possession or tax declarations must fail.

These doctrines underpin the legal justification for cancelling tax declarations that cover unclassified forest land.

VI. Authorities Involved in Cancellation

City/Municipal Assessor – Prepares and issues tax declarations; has administrative authority to correct and cancel erroneous assessments.
Provincial Assessor – Supervisory role over municipal assessors in provinces.
Local Board of Assessment Appeals (LBAA) – Hears appeals from assessment decisions.
Central Board of Assessment Appeals (CBAA) – Appellate body from LBAA decisions.
Courts (Trial Courts, Court of Tax Appeals, Court of Appeals, Supreme Court) – Exercise judicial power to annul or declare void tax declarations, assessments, or to decide issues on land classification and ownership.
DENR (through CENRO/PENRO/Regional Offices) – Issues certifications and maintains land classification maps that are crucial evidence.

VII. Administrative Cancellation of Tax Declarations

While specific LGUs may have local guidelines, several general legal principles apply.

A. Initiation

Cancellation may be initiated by:

The LGU assessor, motu proprio (upon discovery of error);
A government agency, often DENR, informing the assessor that the land is forest land;
A private party (e.g., neighboring claimant, or the holder of the tax declaration) filing a sworn request or protest.

Typically, the requesting party submits:

Copy of the tax declaration(s);
DENR certification (often from CENRO/PENRO) stating that the land is within unclassified public forest, timberland, national park, or otherwise non-A&D;
Copy or reference to the Land Classification (LC) Map and its project number;
Survey plans, if any, showing the subject land’s location relative to forest boundaries.

B. Due Process Requirements

An assessor cannot simply delete someone’s tax declaration without due process. Usually, the process includes:

Notice to the person in whose name the tax declaration stands;
Opportunity to submit evidence (e.g., contrary DENR certifications, LC maps showing A&D status);
Hearing or conference, especially in controversial cases;
Written decision explaining the basis for cancellation or retention.

Due process is important because:

The taxpayer has legitimate expectations based on long practice;
Cancellation affects not only current taxes, but sometimes pending land applications or transactions.

C. Grounds for Cancellation

Common grounds include:

Land is unclassified public forest or otherwise non-A&D at all relevant times;
Duplicate or overlapping tax declarations (e.g., two declarations over the same area, with one covering forest land);
Misrepresentation or fraud in securing the tax declaration;
Correction of mapping errors or misdescription of the property which reveals it actually lies within forest land.

If evidence clearly establishes that the land is forest land and there is no basis for RPT, the assessor should cancel the tax declaration and remove the property from the assessment roll.

VIII. Remedies and Appeals

A. If the Assessor Cancels the Tax Declaration

The affected taxpayer may:

Appeal to the LBAA within the period prescribed by the LGC (generally 60 days from receipt of written notice of the decision).
If aggrieved by the LBAA decision, appeal to the CBAA.
Further judicial review may be sought in the Court of Tax Appeals or Court of Appeals, depending on the nature of the case.

In the appeal, the central issues typically include:

Whether the land is forest land or A&D at the relevant time;
Whether the assessor observed due process;
Whether the cancellation is consistent with the LGC and applicable regulations.

B. If the Assessor Refuses to Cancel

If the assessor refuses to cancel a tax declaration despite clear proof that the land is unclassified forest, possible remedies include:

Administrative appeal to the LBAA (arguing that the assessment is illegal and should be nullified);
Coordinated action by DENR, formally notifying the LGU of land classification and requesting deletion from the tax roll;
Judicial action, such as:
- Action to declare the assessment void;
- Petition for certiorari / mandamus if there is grave abuse of discretion.

IX. Judicial Cancellation and Related Actions

Even if the assessor has not yet acted, courts may be asked to address tax declarations in broader cases, such as:

Actions for quieting of title;
Reversion actions by the State to recover public lands;
Cases questioning land registration over forest lands;
Cases involving ancestral domains or communal forests.

In such cases, courts may:

Declare that tax declarations over forest lands confer no ownership;
Order their cancellation or direct LGUs to correct their assessment records;
Use the existence (or absence) of tax declarations as secondary evidence of possession, but always subject to the overriding effect of State land classification.

X. Special Situations and Complications

A. Land Later Reclassified as Alienable and Disposable

Sometimes, land initially unclassified forest is later reclassified by DENR as A&D agricultural land.

Issues:

Effect on existing tax declarations
- If a tax declaration was issued when the land was still forest land, it was technically erroneous at that time.
- However, upon reclassification, the land becomes properly taxable as private property (once applied for and acquired under public land laws).
- LGUs often update or issue new tax declarations based on the current classification and actual private claims.
Relevance to land titling
- In land registration or free patent cases, courts often look at whether the land was already A&D at the time the applicant completed the required possession, not merely at the time of the application.
- Tax declarations issued during forest status carry little weight; those issued after valid reclassification have more probative value but are still not conclusive of ownership.

B. Overlapping Private Titles and Unclassified Forest Land

Where a private title (OCT/TCT) overlaps forest land, courts have sometimes declared the title void or ineffective as to portions that are forest land.

Tax declarations aligned with such defective titles may also be subject to partial cancellation or correction.
The State may pursue reversion of the forest portions to the public domain.

C. Claims for Refund of Real Property Taxes

If real property tax has been paid for years on land later found to be forest land or public domain, the taxpayer may seek refund, but:

Must comply with the protest and refund procedures under the LGC;
Is subject to prescriptive periods;
Recovery of taxes paid under a mistake of law or fact is not automatic and often contentious.

D. Administrative and Criminal Liability

In certain cases, issuance or maintenance of tax declarations over forest land may involve:

Administrative liability of assessors or other officials for grave misconduct, gross neglect, or abuse of authority;
Criminal liability for falsification, or if used to facilitate fraudulent titling or illegal sale of public land;
Issues under anti-graft laws where public officials knowingly facilitate illegal private appropriation of forest lands.

XI. Interaction with DENR, NCIP, and Other Agencies

A. Role of DENR

DENR, through its regional, PENRO, and CENRO offices:

Maintains Land Classification (LC) maps and records;
Issues certifications on whether a parcel is within forest land or A&D;
Conducts land investigations and participates in inter-agency boundary delineation.

For tax declaration cancellation cases, DENR certifications and maps are usually decisive.

B. Overlaps with Ancestral Domains (NCIP, IPRA)

Where unclassified forest lands overlap with ancestral domains claimed or titled under R.A. 8371 (IPRA):

Indigenous peoples’ rights coexist with the Regalian doctrine in a nuanced way;
CADTs (Certificates of Ancestral Domain Title) may include forest lands;
LGUs may still face questions about whether and how to issue tax declarations or impose RPT, considering exemptions and special regimes.

In many instances, ancestral domains and communal forests are not subject to conventional RPT, or are treated under special rules, making tax declarations inappropriate or limited.

XII. Practical Considerations and Common Issues

Tax declaration is not ownership
- Land buyers who rely solely on tax declarations, especially in remote or heavily forested areas, assume a huge risk.
- Always check DENR classification and, where possible, existing titles and cadastral records.
DENR Certification is Key
- In disputes over cancellation, the most important document is often the DENR certification supported by LC maps.
- Private surveys, affidavits, or long possession cannot override an official classification as forest land.
LGUs Must Coordinate with DENR
- Ideally, assessors should align tax mapping with DENR data to avoid erroneous tax declarations and repeated disputes.
Effect on Land Transactions and Financing
- Banks and prudent buyers may reject properties whose tax declarations are in areas suspected to be forest land.
- Cancellation or doubt over tax declarations can derail sales, mortgages, and development projects.
Balancing Equity and Strict Legality
- Many families have occupied lands for generations, paid realty taxes faithfully, and only later discover that their land is “forest.”
- While the law is strict, equity considerations sometimes influence policymaking (e.g., special tenurial instruments, socialized settlements, or eventual reclassification), but these require specific legal measures, not mere reliance on tax declarations.

XIII. Conclusion

In the Philippines, tax declarations over unclassified forest lands represent a collision between local tax practice and the public domain regime under the Constitution and forestry laws.

Key takeaways:

Unclassified forest land is public forest, inalienable and owned by the State.
A tax declaration does not create ownership, especially not over forest lands.
Local assessors should not assess forest lands as privately owned real property; if they do, the assessment and tax declaration are erroneous and subject to cancellation.
Cancellation may occur administratively or judicially, often hinging on DENR land classification and compliance with due process.
Long possession and payment of realty taxes, while considered in some contexts, cannot override the fundamental rule that forest lands cannot be privately owned without proper reclassification and compliance with public land laws.

Anyone dealing with land in or near forested or upland areas should treat tax declarations with caution and always verify DENR classification and related records before relying on them for investment, development, or legal action.

This discussion is for general information only and is not a substitute for advice from a Philippine lawyer who can review specific documents, locations, and circumstances.