Short answer. Yes, but only among the specific claims Article 2243 covers. Taxes named in Article 2241 and Article 2242 are treated as liens and must be satisfied first, ahead of the other secured claims listed there. Whether taxes beat an ordinary unsecured creditor depends on which list of claims is actually competing for the same property.
What the law says
The claims or credits enumerated in the two preceding articles shall be considered as mortgages or pledges of real or personal property, or liens within the purview of legal provisions governing insolvency. Taxes mentioned in No. 1, article 2241, and No. 1, article 2242, shall first be satisfied.
Civil Code, Article 2243 — Taxes Come First. Read the full provision →
What Article 2243 actually says
Article 2243 does two things. First, it takes the claims listed in Article 2241 and Article 2242 — covering personal and real property respectively — and gives them the force of mortgages or pledges, or liens recognized in insolvency law, rather than leaving them as ordinary unsecured debts. Second, within that list it singles out taxes for first place: the taxes mentioned in No. 1, article 2241, and No. 1, article 2242, shall first be satisfied ahead of everything else the two preceding articles cover. So the tax preference operates inside a specific, enumerated group of claims, not against every debt a person owes.
This is not a blanket priority over every creditor
The question of who gets paid first only arises among the claims the law recognizes as liens on particular property — the enumerated list in Article 2241 and Article 2242. An ordinary personal loan that was never secured by that property is not automatically pushed behind unpaid taxes by this article; it is competing in a different tier entirely. Article 2243 settles the ranking within the preferred group, and taxes come out on top of that group, but the article does not by itself decide every contest between a tax authority and a random unsecured creditor.
Why taxes get first call
Placing taxes ahead of the other liened claims reflects that tax obligations attach to property by operation of law rather than by a private agreement between two parties, and they exist to fund the government functions that protect property rights generally. Real property taxes and certain personal property assessments are treated as running with the asset itself, which is why the two preceding articles list them among the claims entitled to lien status in the first place. Article 2243 then resolves any competition among those liened claims by putting the tax claims at the front of the line.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Strategic Alliance Development Corporation vs. Radstock Securities Limited and Philippine National Construction corporation, G.R. No. 178158 / G.R. No. 180428, December 4, 2009 — read the decision on LawPhil →
- Manuel D. Yngson, Jr., (in his capacity as the Liquidator of ARCAM & Co., Inc.) vs. Philippine National Bank, G.R. No. 171132, August 15, 2012 — read the decision on LawPhil →
- Maricalum Mining Corp. vs. Remington Industrial Sales Corp, G.R. No. 158332, February 11, 2008 — read the decision on LawPhil →
- Development Bank of the Philippines vs. Hon. Court of Appeals, et al, G.R. No. 126200, August 16, 2001 — read the decision on LawPhil →