Marites Domato-Togonon v. The Commission On Audit

Summary

This case involves a petition for certiorari challenging the Commission on Audit's disallowance of P2,398,403.02 paid by Koronadal City for transfer taxes and fees in a land purchase. The heirs of Plomillo offered to sell their property for P22,000,000.00 provided the city shoulder all transfer expenses, which the Sangguniang Panlungsod authorized through Resolution No. 746. However, the Deed of Absolute Sale contained no such stipulation. The COA found this payment irregular, violating laws requiring sellers to bear transfer costs and constituting indirect taxation prohibited under the Local Government Code. The Supreme Court affirmed the disallowance, applying Civil Code Article 1487 and the Parol Evidence Rule, but excused petitioner Domato-Togonon from personal liability, finding she acted in good faith without bad faith, malice, or gross negligence. The decision clarifies the proper allocation of real property transfer costs and the limits of local government taxation powers.