Manulife Data Services, Inc. vs. Commissioner of Internal Revenue

DECISION

CUI-DAVID, J.:

Before this Court is petitioner's Petition for Review, filed on July 20, 2022, assailing respondent's Letter dated June 3, 2022, which denied its claim for refund. Petitioner seeks a refund or issuance of a Tax Credit Certificate (TCC) in the amount of P 107,79 5, 128.7 4, 1 allegedly representing its excess and unutilized input Value-Added Tax (VAT) paid for all four (4) quarters of the calendar year (CY) 2020. 2

THE PARTIES

Petitioner, Manulife Data Services, Inc. , is a foreign corporation duly licensed by the Securities and Exchange Commission (SEC) to operate as a Regional Operating Headquarters (ROHQ) in the Philippines, under SEC Certificate of Registration and License No. FS200603505. 3 It is also registered with the Bureau of Internal Revenue (BIR) , Revenue Th< ''"o""' of mfimdltox ocod;t m;g;,lly pmyed foo ;, the P"ilion f" Re"'"' w>< P 14 7,008, 789. I 5, b"t the "me y was reduced to PI 07,795, 128.74, which is the amount of refund the Independent Certified Public Accountant (I CPA) concluded that petitioner is entitled to; Refer to par. 30 and Prayer, petitioner's Memorandum, Docket, p. 64 1. Docket, p. 179, Pre-Trial Order dated May 18, 2023, Statement of the Case. !CPA Exhibit "P-2", USB (Exhibit "P-41-b").

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

District Office No. 126 - Regular Large Taxpayers Division III, under Taxpayer Identification Number (TIN) 244-027-271- 00000.4 Respondent is the Commissioner of Internal Revenue (CIR), who holds office at the 5th Floor, BIR National Office Building, Agham Road, Diliman, Quezon City, 5 vested with the power to decide on applications for tax refunds or tax credits. 6

THE FACTS

On March 31, 2022, petitioner filed with the BIR an Application/or Tax Credits/Refunds (BIR Form No. 1914) for its unutilized input VAT in the total amount of P147,008,789.15, covering the period from January 1 to December 31, 2020. 7 On the same date, respondent issued Tax Verification Notice No. TVN201800190844, 8 authorizing Revenue Officers (ROs) Marjorie C. Dioso (Dioso) and Michele J. Alonzo-Bucayu to verify the supporting documents and/ or pertinent records relative to petitioner's claim for VAT refund for the period from January 1 to December 31, 2020.9 Thereafter, respondent denied petitioner's application for tax refund or credit via a letter dated June 3, 2022, 10 which was received by petitioner on June 20, 2022, or within ninety (90) days from the filing of the refund application. 11

PROCEEDINGS BEFORE THE COURT

Aggrieved, petitioner filed the present Petition for Review on July 20, 2022.12 On September 6, 2022, respondent transmitted to the Court the B~R.fecords of the case, consisting of 520 pages in one folder.

13 "r !CPA Exhibit ·'P-8", USB (Exhibit "P-41-b"). Petition for Revie>v. par. 3 vis-a-vis Answer. par. 1. Docket. pp. f:r 7 and 26. respectively. Docket. p. 163, Joint Stipulation of Facts and Issue (JSFI). Stipulation of Facts, par. 1 (a). !CPA Exhibit "P-35''. USB (Exhibit "P-41-b"). Docket. p. 163, JSFI. Stipulation of Facts, par. l(b). Exhibit ·'R-1", BIR Records (Exhibit "R-6"). p. 143. 10 Docket. p. 163. JSPI, Stipulation of Facts. par. l(c). 11 Docket. p. I 63, JSFI. Stipulation of Facts. par. I (d): !CPA Exhibit "P-37". USB (Exhibit "P-4 I -b"); Exhibit "R-4", BIR Records (Exhibit "R-6"), pp. 487a-517. 12 Docket, pp. 6-17.

13 !d. at 21-23. Compliance dated September 2. 2022.

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Respondent subsequently filed his Answer on September 7, 2022.14 The Pre-Trial Conference was initially set on November 16, 2022, 15 but was reset and held on March 15, 2023. 16 Prior thereto, Respondent's Pre-Trial Briefwas filed on September 23, 2022, 17 while petitioner submitted its Pretrial Brief on October 20, 2022.18 On May 3, 2023, the parties filed their Joint Stipulation of Facts and Issue, 19 which was admitted and approved by the Court in a Resolution dated May 8, 2023,20 thereby terminating the pre-trial stage. The Pre-Trial Order was issued on May 18, 2023. 21 Trial then ensued, during which both parties presented and offered their respective testimonial and documentary evidence.

Petitioner presented the testimonies of the following individuals:

1. Mr. Inigo P. Garcia,22 petitioner's Finance Director;

2. Ms. Clarissa L. Magarao, 23 petitioner's Accounting Specialist; and

3. Mr. Garry S. Pagaspas, 24 the Court-commissioned Independent Certified Public Accountant (ICPA). 25 The Report of the ICPA was submitted on October 24, 2023.26 On November 28, 2023, petitioner filed its Formal Offer of Exhibits with Motion (Re: To Mark !CPA Exhibits). 27 Respondent, however, failed to file a comment thereon.28 In its Resolution 14 /d. at 26-33.

\1 15 !d. at 70--71, Notice of Pre-Trial Conference dated September 14. 2022. 16 !d. at 93. Notice of Resetting dated November 8, 2022: 94-96. Minutes of the hearing held on. and Order dated, March 15, 2023.

17 /d. at 72-75.

18 /d. at 77-91.

19 /d. at 163-174.

20 Jd. at 177.

21 /d. at 179-186.

22 !d. at 117-134, Exhibit "P-I''; 236-236-A, Order dated August 10, 2023. 23 /d. at 135-145, Exhibit "P-7"; 242-242-A, Order dated September 5, 2023. 24 !d. at <175 <180. Exhihit ·'P-10"": 532 533. Order d<1ted November 8. 2023. 25 /d. at 242-242-A, Order dated September 5, 2023. 26 ld at 258-453, Exhibit "P-41 ". " /d. at 540-586.

~

Manulife D ata Services, Inc. v. Commissioner of Internal Revenue dated March 20, 2024,29 the Court admitted all of petitioner’s offered exhibits, except the following:

l.

Exhibits “P-2”, “P-3”, “P-4”, “P-4-1”, “P-4-2”, “P-4- 4”, “P-4-7”, “P-4-8”, “P-4-9”, “P_4-10”, “P-4-11”, “P- 4-12”, “P-4-13”, “P-4-15”, “P-4-16”, “P-5”, “P-5-1”, “P_5-2”, “P-5-3”, “P-5-4”, “P-5-5”, “P-5-6”, “P-5-7”, “Pp.5-8”, “P-5-9”, “P-5-10”, “P-5-12”, “P-5-13”, “P-5- 17”, “P-6”, “P-6-1”, “P-6-2”, “P-6-3”, “P-6-4”, “P-6- 5”, “P-6-6”, “P-6-7”, “P-6-8”, “P-6-9”, “P-6-10”, “P- 6-11”, “P-6-12”, “P-6-13”, “P-6-14”, “P-6-15”, “P-6- 16”, “P-6-17”, “P-8”, “P-9”, “P-10”, “P-11”, “P-12”, “P-13”, “P-13-a”, “P-14”, “P-15”, “P-16”, “P-17”, “P- 18”, “P-19”, “P-20”, “P-21”, “P-22”, “P-23”, “P-25”, “P-26”, “P-27”, “P-28”, “P-29”, “P-30”, “P-31”, “P- 32”, “P-34”, “P-35”, “P-36”, and “P-37”, under the “Exhibits Caused to be Marked by the Petitioner,” for failure to submit the documents duly marked during the commissioner’s hearing held before the Court;

. Exhibit “P-5-12”, under the “Independent CPA Exhibits,” for being written in an unofficial language not accompanied by a translation into English or Filipino, pursuant to Section 33, Rule 132 of the Rules of Court;

. Exhibits “P-44C-Q1-a", “P-46C-Q3-a,” and “P-63- Q2-b,” for not being found in the records of the case; and . Exhibit “P-54-Q3-cx,” for being totally blurred, unreadable, or improperly scanned.

For his part, respondent presented the testimony of RO Dioso.3° On May 14, 2024, respondent filed his Formal Offer of Evidence,3! to which petitioner filed its Comment (Re: Formal Offer of Evidence dated 14 May 2024) on May 21, 2024.32 In its 29 Ted. at 898-603.

30 Id. at 39-44, Exhibit “R-7": 604-606 and 608-609, Minutes of the hearing held on, and Order dated, May 14, 2024, respectively, 31 fd. at 611-614.

32 Id. at 616-617.

Ww

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Resolution dated July 30, 2024,33 the Court admitted all of respondent's offered evidence. Respondent filed his Memorandum on August 20, 2024,34 while petitioner submitted its Memorandum on August 30, 2024.35 The case was submitted for decision on September 13, 2024.36

THE ISSUE

The parties submit the following rssue for the Court's resolution, to wit:

"Whether or not the petitioner is entitled to its claim for refund, or issuance of a Tax Credit Certificate in the amount of Php14 7,008, 789.15, allegedly representing its excess and unutilized input VAT for the four quarters of calendar year 2020."37

PETITIONER'S ARGUMENTS

Petitioner, in insisting on its entitlement to a refund, argues that it is VAT-registered; it is engaged in zero-rated sales paid through inward remittances of foreign currency; it paid input VAT in CY 2020 arising from domestic purchases of goods and services, which are not transitional input taxes; its excess and unutilized input VAT is directly attributable to its zero- rated sales for CY 2020 and was not applied against output tax in the same or succeeding quarters; the excess and unutilized input VAT was allocated between zero-rated and taxable sales; the ICPA concluded that petitioner is entitled to a refund of !'107,795,128.74; and the claim was filed within two years after the close of the taxable quarter when such sales were made.

RESPONDENT'S ARGUMENTS

Respondent contends that the petition must be dismissed because petitioner failed to substantiate its administrative claim for refund; it is not entitled to a refund in the amount of ll ld at 624 625.

H ld at 626-{533.

35 ld at 635-M2.

36 !d. at 646. Notice of Resolution dated September 13. 2024. 37 !d. at 180, Pre-Trial Order. B. Stipulation ofissue: 172, JSFI. Issues.

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

!'147,008,789.15; and claims for refund are strictly construed against the claimant, as they partake of the nature of tax exemption, and as such, are looked upon with disfavor.

THE COURT'S RULING

The instant Petition for Review is partly meritorious. Requisites for input VAT refund or issuance of a Tax Credit Certificate.

Section 112 of the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act (RA) No. 10963,38 provides, in part, as follows: SEC. 112. Refunds or Tax Credits of Input Tax. - (A) Zero-Rated or Effectively Zero-Rated Sales. - Any VAT-registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax: Provided, however, That in the case of zero-rated sales under Section 106(A)(2)(a)(l), (2) and

(b) and Section 108(8)(1) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP): Provided, further, That where the taxpayer is engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt sale of goods or properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales: Provided, finally, That for a person making sales that are zero-rated under Section 108(8)(6), the input taxes shall be allocated ratably between his zero-rated and non-zero-rated sales. 38 AN ACT AMENDING SECTIONS 5. 6. 24. 25. 27. 3 I, 32, 33, 34, 51. 52. 56, 57, 58, 74. 79, 84, 86, 90, 91, 97. 99. 100. 101. 106. 107. 108. 109. 110. 112. 114. 116. 127. 128. 129. 145. 148. 149. 151. 155, 171. 174. 175. 177, 178. 179. 180. 181. 182, 183. 186. 188. 189. 190. 191. 192, 193, 194.195. 196. 197.232.236.237.249.254.264.269, AND 288: CREATING NEW SECTIONS 5 I -A, 148-A. 150-A. 150-B. 237-A. 264-A, 264-8. AND 265-A; AND REPEALING SECTIONS 35, 62, AND 89: ALL UNDER REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997. AS AMENDED. AND FOR OTHER PURPOSES.

Manulife Data Senrices, Inc. v. Commissioner of Internal Revenue

(C) Period within which Refund of Input Taxes shall be Made. - In proper cases, the Commissioner shall grant a refund for creditable input taxes within ninety (90) days from the date of submission of the official receipts or invoices and other documents in support of the application filed in accordance with Subsections (A) and (B) hereof: Provided, That should the Commissioner find that the grant of refund is not proper, the Commissioner must state in writing the legal and factual basis for the denial. In case of full or partial denial of the claim for tax refund, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim, appeal the decision with the Court of Tax Appeals: Provided, however, That failure on the part of any official, agent, or employee of the BIR to act on the application within the ninety (90)-day period shall be punishable under Section 269 of this Code." Based on the foregoing provision, jurisprudence has laid down the requisites that a taxpayer-applicant must satisfy to successfully obtain such a refund or credit. These requirements may be categorized as follows: 39 40 As to the timeliness of the filing of the administrative and judicial claims:

1. The refund claim is filed with the BIR within two (2) years after the close of the taxable quarter when the sales were made;39

2. In case of full or partial denial of the refund claim rendered within a period of 90 days from the date of submission of the official receipts (ORs) or invoices and other documents in support of the application, the judicial claim shall be filed with this Court within thirty (30) days from receipt of the decision;4o With reference to the taxpayer's registration with the BIR:

3. The taxpayer is a VAT-registered person;41 AT&T Communications Services Philippines, Inc. v. Commissioner of Internal Revenue, G.R. No. 182364. August

3. 2010 [Per J. Carpio-Morales. Third Division]: San Roque Power Corporation v. Commissioner of Internal Revenue. G.R. No. 180345. November 25, 2009 [Per J. Chico-Nazario, Third Division]; Intel Technology Philippines. Inc. v. Commissioner of Internal Revenue, G.R. No. 166732, April27. 2007 [Per .1. Calleja, Sr., Third Division].

See Commissioner of Internal Revenue v. Vest as Services Philippines. Inc., G.R. No. 255085, March 29, 2023 [Per J. Hernando, First Division]; Commissioner of Internal Revenue v. CE Casecnan Water and Energy Company. Inc., G.R. No. 212727, February L 2023 [Per J. Hernando, First Division]; Energy Development Corporation v. Commissioner of Internal Revenue, G.R. No. 203367, March 17, 2021 [Per J. Hernando. Third Division]; [cf: Sections 7(a)(l) and (2). and II (first paragraph), RA No. 1125. as amended by RA No. 9282]. AT&TC'ommunications Scrriccs PhihjJJJines. Inc., .. C'ommissinner o[h1tC'rnal Revenue. G.R. No. 182364. August

3. 2010 lPcr J. Carpio-Morales, Third Division]: San Roque Power Corporation v. Commissioner of Interned Revenue, G.R. No. 180345, November 25, 2009 [Per J. Chico-Nazario, Third Division]; Intel Technology Philippines. Inc. v. Commissioner of Internal Revenue, G.R. No. 166732, April 27, 2007 [Per 1. Calleja, Sr., Third Division].

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

In relation to the taxpayer's output VAT:

4. The taxpayer is engaged in zero-rated or effectively zero- rated sales;42

5. For zero-rated sales under Section 106(A)(2)(a)(l), (2) and

(b) and Section 108(8)(1) and (2),43 the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with the Bangko Sentral ng Pilipinas (SSP) rules and regulations;44 As regards the taxpayer's input VAT being refunded:

6. The input taxes are not transitional;45

7. The input taxes are due or paid;46

8. The input taxes claimed are attributable to zero-rated or effectively zero-rated sales. However, where there are both zero-rated or effectively zero-rated sales and taxable or exempt sales, and the input taxes cannot be directly and entirely attributable to any of these sales, the input taxes shall be proportionately allocated on the basis of sales volume;47 and

9. The input taxes have not been applied against output taxes during and in the succeeding quarters48 In addition to the above, the taxpayer-applicant must comply with the substantiation and invoicing requirements prescribed under the NIRC and its implementing rules and regulations. 49 Such compliance is indispensable to a "valid claim for input taxes attributable to zero-rated sales,"50 as it provides the necessary basis to "determine the veracity of the taxpayer's claims."SV 4) 45 46 !d.

Under RA No. 10963, Section 106(A)(2)(a)(2) was renumbered to Section 106(A)(2)(a)(3) while Section 106{!\)(2)(b) was deleted. However, there was no corresponding amendment to the subsections cited in Section 112(A) of the NJRC of 1997, as amended. AT&T Communications Services Philippines. Inc. v. Commissioner of Internal Revenue, G.R. No. 182364, August

3. 2010 [Per J. Carpio-Morales, Third Division]: San Roque Power Corporation v. Commissioner of Internal Revenue. G.R. No. 180345, November 25. 2009 [Per J. Chico-Nazario, Third Division]; Intel Technology Philippines, Inc. v. Commissioner of Internal Revenue. G.R. No. 166732, April 27. 2007 [Per J. Calleja, Sr., Third Division].

!d.

/d.

~ 7 San Roque Pmver Corporation v. Commissioner of internal Revenue. G.R. No. 180345. November 25, 2009 [Per J. Chico-Nazario, Third Division]; Intel Technology Philippines, inc. v. Commissioner of Internal Revenue, G.R. No. t66732. April27. 2007 [Per J. Callejo, Sr .. Third Division]. ~ 8 Supra note 39.

49 Team Energy Corporation (Formerly: .\Iirant Pagbi/ao Corporation and Southern Energy Quezon, Inc.) v. Commissioner oflnlcma! Rc>rcm!c. G.R. Nos. 197663 & 197770, March 14.2018 [Per J. Lconcn, Third Division].

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Strict adherence to these requirements is necessary considering VAT's nature and VAT system's tax credit method, where tax payments are based on output and input taxes and where the seller's output VAT becomes the buyer's input VAT that is available as a tax credit or refund in the same transaction. It ensures the proper collection of taxes at all stages of distribution, facilitates the computation of tax credits, and provides an accurate audit trail or evidence for BIR monitoring purposes. s2 Furthermore, it must be emphasized that in cases filed before this Court, which are litigated de novo, party-litigants must prove every minute aspect of their case.s3 Thus, petitioner must demonstrate compliance with each of the foregoing requisites and invoicing requirements. First and second requisites:

Petitioner's administrative and judicial claims were timely filed. The first requisite pertains to the filing of an administrative claim for a refund or tax credit of input VAT with the BIR within two years after the close of the taxable quarter in which the zero-rated or effectively zero-rated sales were made. The present claim covers the 1st to 4th quarters of CY 2020. Accordingly, the respective deadlines for filing the administrative claim are as follows: Taxable Close of taxable Last day to file an Quarter quarter administrative claim 1st quarter March 31, 2020 March 31, 2022 2nd quarter June 30, 2020 June 30, 2022 3rct quarter September 30, 2020 September 30, 2022 v 52 Supra note 49.

53 Commissioner of Internal Revenue v. Vestas Services Philippines, Inc .. G.R. No. 255085, March 29, 2023 [Per J. Hernando, First Division}; Commission of Internal Revenue v. Deutsche Knmvledge Services. Pte. Ltd, G.R. Nos. 226548 & 227691, 226682-83. February 15. 2023 [Per J. M.Y. Lopez. Second Division] citing Atlas Consalidated .'\4ining and Development Corporation v. Commissioner of lntemal Revenue, G.R. No. 145526, March 16, 2007 [Per J. Corona. First Division]: See also Edison (Bataan) Cogeneration Corporation v. Commissioner of internal Revenue. G.R. Nos. 201665 & 201668. August 30. 2017 [Per J. Del Castillo, First Division]: Commissioner of Internal Revenue v. Philippine A'ational Bank. G.R. No. 180290. September 29. 2014 [Per J. Leonen, Second Division]: rommissinner nf Internal Revemw v. ( initf'd Salvage and Tnwnge (?hils.). Inc .. G.R. No. 197515. July

2. 2014 [Per J. Peralta, Third Division]: Dizon v. Court ofT ax Appeals, eta! .. G.R. No. 140944. Apri130, 2008 [Per J. Nachura, Third Division]; Commissioner of Internal Revenue v. Manila Aiining Corporation, G.R. No. 153204. August 31.2005 [Per 1. Carpio~Morales. Third Division].

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

4th quarter I December 31, 2020 I December 31, 2022 Considering that petitioner filed its administrative claim for refund for all quarters of CY 2020 on March 31, 2022,54 the same was well within the two (2)-year prescriptive period. Thus, the first requisite is satisfied. The second requisite requires that the judicial claim be filed within thirty (30) days from receipt of the BIR's decision, or after the lapse of the 90-day period from the date of submission of the ORs or invoices and other documents in support of the application for refund under Section 112(C) of the NIRC of 1997, as amended by RA No. 10963. Counting 90 days from petitioner's submission of its administrative claim on March 31, 2022, respondent had until June 29, 2022, to act on the claim. The BIR issued a denial letter dated June 3, 2022, 55 well within the 90-day period, which was received by petitioner on June 20, 2022.56 Counting 30 days, petitioner had until July 20, 2022, to file its judicial claim. Therefore, the filing of the present Petition on Review on July 20, 202257 was within the prescribed period, satisfying the second requisite.

Third requisite: Petitioner is a VAT-registered entity. The third requisite is likewise satisfied and undisputed, as petitioner is duly registered with the BIR as a VAT taxpayer under TIN 244-027-271-00000.58 Fourth and fifth requisites:

Petitioner had zero-rated or effectively zero-rated sales for CY 2020.

The fourth and fifth requisites respectively require that the taxpayer is engaged in zero-rated or effectively zero-rated sales, and that, in the case of zero-rated sales under Sections 54 !CPA Exhibit ·'P-35", USB (Exhibit ''P-41-b"). ~

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

106(A)(2)(a)(1), (2) and (b),59 and 108(8)(1) and (2) of the NIRC of 1997, as amended, the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with the 8SP rules and regulations. Petitioner avers that its sales of services were rendered to non-resident foreign clients engaged in business outside the Philippines. These services were paid in acceptable foreign currency inwardly remitted into the Philippine banking system in accordance with the 8SP rules and regulations. As such, these sales are subject to zero-percent (0%) VAT, pursuant to Section 1 08(8)(2) of the NIRC of 1997, as amended, 60 which reads as follows:

SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties. - (B) Transactions Subject to Zero Percent (0%} Rate. - The following services performed in the Philippines by VAT- registered persons shall be subject to zero percent (0%) rate:

(1) Processing, manufacturing or repacking goods for other persons doing business outside the Philippines which goods are subsequently exported, where the services are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP);

(2) Services other than those mentioned in the preceding paragraph, rendered to a person engaged in business conducted outside the Philippines or to a nonresident person not engaged in business who is outside the Philippines when the services are performed, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP);" (Emphasis supplied} Based on the foregoing provision, the following essential elements must be established for a sale or supply of services to qualify for a VAT rate of zero percent (0%), under Section 1 08(8)(2) of the NIRC of 1997, as amended, to wit: v 59 Under RA No. \0963. Section \06(A)(2)(a)(2) was renumbered to Section \06(A)(2)(a)(3) while Section \06(A){2){b) was deleted. However, there was no corresponding amendment to the subsections cited in Section \12(A) of the NIRC of 1997, as amended.

Manulife Data Services, lnc. v. Commissioner of Internal Revenue

1. The recipient of the services is a foreign corporation, and the said corporation is doing business outside the Philippines, or is a non- resident person not engaged in business who is outside the Philippines when the services are performed;6 1

2. The services fall under any of the categories under Section 108(8)(2), 62 or simply, the services rendered should be other than "processing, manufacturing or repacking goods";63

3. The services must be performed in the Philippines64 by a VAT -registered person; and

4. The payment for such services should be m acceptable foreign currency accounted for m accordance with BSP rules. 65 In its Quarterly Value-Added Tax Returns (BIR Form No. 2550-Q) for the 1st to 4th quarters of CY 2020, petitioner reported total sales of P5,819,465,711.52, which included zero- rated sales ofP5,715,533,377.30, broken down as follows: ICPA Exhibit "P-11"66 "P-12"67 "P-13-a"68 "P-14"69 61 63 64 Period Covered VATable Sales Zero-Rated Sales Total Sales

(CY 2020)

1" Quarter I" 28,095,867.43 I" 1,562,119,008.81 I" 1,590,214,876.24 2nd Quarter 14,853,718.43 1, 149,143,809.74 1,163,997,528.17 3cd Quarter 33,656,940.66 1,465,038,391.11 1 ,498,695,331. 77 4th Quarter 27,325,807.70 1,539,232,167.64 1,566,557,975.34 Total 1"103,932,334.22 1"5,715,533,377.30 P5,819 ,465, 711.52 Site! Philippines Corporation (Formerly C!ientfogic ?hils. Inc.) v. Commissioner of Internal Revenue, G.R. No. 201326, February 8. 2017 [Per J. Caguioa. First Division]; Accenture. Inc. v. Commissioner of Internal Revenue, G.R. No. 190 I 02, July 1 1. 2012 [Per J. Sereno. Second Division]: Commissioner of Internal Revenue v. Burmeister and Wain Scandinavian Contractor .\findanao, Inc., G.R. No. 153205, January 22, 2007 [Per J. Carpio, Second Division].

Commissioner of Internal Revenue v. American Express International. Inc. (Philippine Branch). G.R. No. 152609, June 29, 2005 {Per J. Panganiban, Third Division]. Commissioner of Internal Revenue v. Burmeister and I·Vain Scandinavian Contractor .Hindanao. Inc., supra. Commissioner of Internal Revenue v. Burmeister and Wain Scandinavian Contractor Mindanao, Inc .. supra; Commissioner of Internal Revenue v. American E-xpress International, Inc. (Philippine Branch). supra. ld USB (Exhibit "P·41·b"). USB (Exhibit "l'-41·b"). USB (Exhibit "P-41-b"). USll (Exhibit ··P-41-b").

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Petitioner claims that it generated VAT zero-rated sales from services rendered to the following non-resident foreign clients, to wit:7o

1. THE MANUFACTURERS LIFE INSURANCE COMPANY

2. MANULIFE BANK AND TRUST

3. MANULIFE ASSET MANAGEMENT LIMITED

4. JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

5. JH INVESTMENT MANAGEMENT DISTRIBUTORS LLC

6. MANULIFE ASSET MANAGEMENT (US) LLC

7. MANULIFE (INTERNATIONAL) LTD.

8. MANULIFE ASSET MANAGEMENT (HONG KONG) LIMITED

9. MANULIFE FINANCIAL ASIA LTD.

10. MANULIFE (SINGAPORE) PTE. LTD.

11. MANULIFE ASSET MANAGEMENT SINGAPORE PTE. LTD.

12. MANULIFE JAPAN

13. MANULIFE ASSET MANAGEMENT SERVICES BERHAD

14. MANULIFE INVESTMENT MANAGEMENT (MALAYSIA)

MAPLE MANULIFE INFORMATION & TECHNOLOGY SERVICES

15. (CHENGDU)

16. MANULIFE (VIETNAM) LTD.

17. MANULIFE INSURANCE (THAILAND) PUBLIC COMPANY LTD. As to the first essential element, in order to be considered a non-resident foreign corporation (NRFC) doing business outside the Philippines, each entity must be supported, at the very least, by both a Certification of Non-Registration of Corporation/ Partnership issued by the Philippine SEC, and proof of incorporation/registration in a foreign country (e.g., Articles/ Certificate of Incorporation/ Registration and/ or Tax Residence Certificate). The former document establishes that the recipient of the service is not registered to do business in the Philippines, and is not engaged in trade or business within the Philippines. Meanwhile, the latter document proves that the said service recipient is indeed a foreign entity. These documents have been required by the Court to establish compliance with the first essential element.

In Commissioner of Internal Revenue v.

Deutsche Knowledge Services Pte. Ltd.,7 1 the Supreme Court affirmed the necessity of presenting these documents in this wise: For purposes of zeo-rating under Section 108(8)(2) of the Tax Code, the claimant must establish the twv 70 Docket. pp. 8-10. Petition for Review. IV. Facts. par. II: !CPA Exhibit '"P-3", USB (Exhibit '"P-41-b"). " G.R. No. 234445, July 15.2020 [Per J. lnting. Second Division].

Manulife Data Services, Inc. v. Commissioner of Internal Revenue components of a client's NRFC status, viz.: (1) that their client was established under the laws of a country not the Philippines or, simply, is not a domestic corporation; and

(2) that it is not engaged in trade or business in the Philippines. To be sure, there must be sufficient proof of both of these components: showing not only that the clients are foreign corporations, but also are not doing business in the Philippines. Such proof must be especially required from ROHQs such as DKS. That the law expressly authorizes ROHQs to render services to local and foreign affiliates alike only stresses the ROHQ's burden to distinguish among their clients' nationalities and actual places of business operations and establish that they are seeking refund or credit of input VAT only to the extent of their sales of services to foreign clients doing business outside the Philippines. To recall, the CTA found that the SEC Certification of Non-Registration of Company and Authenticated Articles of Association and/ or Certificates of Registration/ Good Standing/Incorporation sufficiently established the NRFC status of 11 of DKS's affiliates clients. The Court upholds these findings. The Court accords the CTA's factual findings with utmost respect, if not finality, because the Court recognizes that it has necessarily developed an expertise on tax matters. Significantly, both the CTA Division and CTA En Bane gave credence to the aforementioned documents as sufficient proof of NRFC status. The Court shall not disturb its findings without any showing of grave abuse of discretion considering that the members of the tax court are in the best position to analyze the documents presented by the parties. In any case, after a judicious review of the records, the Court still do not find any reason to deviate from the court a quo's findings. To the Court's mind, the SEC Certifications of Non-Registration show that these affiliates are foreign corporations.

On the other hand, the articles of association/ certificates of incorporation stating that these affiliates are registered to operate in their respective home countries, outside the Philippines are prima facie evidence that their clients are not engaged in trade or business in the Philippines. (Emphasis supplied) In the present case, petitioner satisfied the first essential element as it proved that the clients below are NRFCs doing business outside the Philippines, as evidenced by: (1) Certifications of Non-Registration of Corporation issued by the

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

SEC; and (2) proof of incorporation or registration m their respective foreign jurisdictions, as detailed below: Certification of Proof of Non-Registration incorporation/ of Company issued registration in a by the SEC foreign country Company Name (ICPA Exhibit No.)

(ICPA Exhibit No.)

THE MANUFACTURERS LIFE INSURANCE

COMPANY "P-6-1"72 "P-5-1" to "P-5-1 a"73

MANULIFE ASSET MANAGEMENT LIMITED

"P-6-3"74 "P-5-3"75

JOHN HANCOCK LIFE INSURANCE

COMPANY (U.S.A.)

"P-6-4"76 "P-5-4" to "P-5-4a"77 MANULIFE (INTERNATIONAL) LTD. "P-6-7"78 "P-5-7" to "P-5-7 d"79

MANULIFE ASSET MANAGEMENT (HONG

KONG) LIMITED

"P-6-8"so "P-5-8"81 MANULIFE FINANCIAL ASIA LTD. "P-6-9"82 "P-5-9"83 "P-5-1 0" to "P-5- MANULIFE (SINGAPORE) PTE. LTD. "P-6-10"84 10b"85

MANULIFE ASSET MANAGEMENT

SERVICES BERHAD

"P-6-13"86 "P-5-13"87

MANULIFE INSURANCE (THAILAND)

PUBLIC COMPANY LIMITED

"P-6-17"88 "P-5-17"89 Relative to the second essential element, only the following NRFCs, among those listed above, executed Service Agreements with petitioner, to wit:

1. The Manufacturers Life Insurance Company - Master Administrative Services Agreement dated May 1, 2006 which states that the agreement will commence on said date and shall continue thereafter until terminated in accordance with its terms, with attached Service Level Agreement which took effect on April 1, 2012; 90 72 USI3 (Exhibit "P-41-b"). 7J /d.

74 ld 75 fd 76 /d 77 ld 7& Id 79 !d 80 ld 81 /d.

82 ld 8J !d 84 /d.

8 ~ ld u, ld 87 /d.

88 /d.

89 !d.

90 !CPA Exhibit ·'P-4-1", USB (Exhibit "P-41-b"'). v Manulife Data Services, Inc. v. Commissioner of Internal Revenue 2. John Hancock Life Insurance Company (U.S.A.) - Services Agreement dated October 25, 2007, and Addendum to the Service Agreement dated October 31, 2007, which states that the agreement is deemed to have commenced on May 1, 2006 and shall continue thereafter until terminated in accordance with its terms;9J

3. Manulife (International) Limited - Business Processing Services Agreement effective April 10, 2006 and shall continue thereafter until terminated in accordance with its terms;92

4. Manulife Asset Management (Hong Kong) Limited- Services Agreement dated July 18, 2011, which states that the agreement shall commence on said date and shall continue thereafter until terminated with its terms;93

5. Manulife Financial Asia Limited - Master Administrative Services Agreement and Service Level Agreement which takes effect on November 16, 2015 and shall remain in effect for an indefinite term unless earlier terminated in accordance with its terms;94 and

6. Manulife Singapore Pte. Ltd. - Master Services Agreement dated July 2, 2012 and shall continue thereafter until terminated in accordance with its terms. 95 These agreements confirm that petitioner was engaged to provide administrative and other business processing services to support the operations of the above-stated clients. Thus, the services provided by petitioner clearly fall under the scope of "services other than processing, manufacturing or repacking goods." Hence, petitioner satisfactorily complied with the second essential element, insofar as the foregoing NRFCs are conceme\1 01 I CPA Exhibit "P-4-4". l!Sfl (Exhibit "P-41-b''). " I CPA Exhibit "P-4-7". USB (Exhibit "P-41-b''). 03 ICPA Exhibit "P-4-8", USB (Exhibit "P-41-b"). 04 ICPA Exhibit ·'P-4-9", USB (Exhibit ·'P-41-b"). 9' ICPA Exhibit "P-4-10''. USB (Exhibit "P-41-b").

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Anent the third essential element, the aforementioned Service Agreements clearly indicate that the services are to be performed by petitioner in the Philippines, except for the Master Administrative Services Agreement and Service Level Agreement with Manulife Financial Asia Limited. As such, petitioner has shown compliance with the third essential element, but only with respect to the following NRFCs, to wit:

a. The Manufacturers Life Insurance Company;

b. John Hancock Life Insurance Company (U.S.A.);

c. Manulife (International) Limited;

d. Manulife Asset Management (Hong Kong) Limited; and

e. Manulife Singapore Pte. Ltd. Consequently, only the sales of services related to the above clients may be considered for VAT zero-rating. With regard to the fourth essential element, and in relation to the fifth requisite for the grant of an input VAT refund, petitioner presented Bank Statements issued by Citibank N.A.96 which purportedly show the foreign currency remittances made by the above-mentioned clients to petitioner. However, it is equally important to consider that the VAT zero-rated sales, to which the said foreign currency remittances correspond, must be supported by VAT zero-rated ORs that comply with the invoicing requirements under Section 113(A) and (B) of the NIRC of 1997, as amended, which provide: SEC. 113.

Invoicing and Accounting Requirements for VAT-registered Persons. - (A) Invoicing Requirements. -A VAT-registered person shall issue:

(1) A VAT invoice for every sale, barter or exchange of goods or properties; and

(2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. (B) Information Contained in the VAT Invoice or VAT Official Receipt.- The following information shall be indicated in the VAT invoice or VAT official receipt: 06 !CPA Exhibit "P-19". USB (Exhibit "P-41-b"). y

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

(1) A statement that the seller is a VAT-registered person, followed by his Taxpayer's Identification Number (TIN);

(2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax: Provided, That:

(a) The amount of the tax shall be shown as a separate item in the invoice or receipt;

(c) If the sale is subject to zero percent (0%) value-added tax, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt;

(3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; and

(4) In the case of sales in the amount of One thousand pesos (P1,000) or more where the sale or transfer is made to a VAT-registered person, the name, business style, if any, address and Taxpayer Identification Number (TIN) of the purchaser, customer or client. (Emphasis supplied) The foregoing provisions are further implemented by Section 4.113-1 (A) and (B) of Revenue Regulations (RR) No. 16- 2005,97 which states: SEC. 4.113-1. Invoicing Requirements. - (A) A VAT-registered person shall issue: -

(1) A VAT invoice for every sale, barter or exchange of goods or properties; and

(2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. Only VAT-registered persons are required to print their TIN followed by the word 'VAT' in their invoice or official receipts. Said documents shall be considered as a 'VAT Invoice' or VAT official receipt. All purchases covered by invoices/receipts other than VAT Invoice/VAT Official Receipt ehill not gi"' ri" tn "ny input W.~ SUBJECT: Consolidated Value-Added Ta'\ Regulations of2005.

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

VAT invoice/official receipt shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of his accounting records.

(B) Information contained in VAT invoice or VAT official receipt. -The following information shall be indicated in VAT invoice or VAT official receipt:

(1) A statement that the seller 1s a VAT-registered person, followed by his TIN;

(2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the VAT; Provided, That:

(a) The amount of tax shall be shown as a separate item in the invoice or receipt;

(c) If the sale is subject to zero percent (0%) VAT, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt;

(3) In the case of sales in the amount of one thousand pesos (P1,000.00) or more where the sale or transfer is made to a VAT-registered person, the name, business style, if any, address and TIN of the purchaser, customer or client, shall be indicated in addition to the information required in (1) and (2) of this Section. (Emphasis supplied) In addition, the ORs must be duly registered with the BIR pursuant to Section 237, in relation to Section 238 of the NIRC of 1997, as amended, to wit: SEC. 237. Issuance of Receipts or Sales or Commercial Invoices.- (A) Issuance. - All persons subject to an internal revenue tax shall, at the point of each sale and transfer of merchandise or for services rendered valued at One hundred pesos (PlOO.OO) or more, issue duly registered receipts or sale or commercial invoices, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: Provided, however, That where the receipt is issued to cover payment made as rentals, commissions, compensation or fees, receipts or invoices shall be issued which shall show the name, business style, if any, and address, of the purchaser, customer or client: Provided, ~

Manulife Data Services, Inc. v. Commissioner of Internal Revenue further, That where the purchaser is a VAT-registered person, in addition to the information herein required, the invoice or receipt shall further show the Taxpayer Identification Number (TIN) of the purchaser. SEC. 238. Printing of Receipts or Sales or Commercial Invoices. - All persons who are engaged in business shall secure from the Bureau of Internal Revenue an authority to print receipts or sales or commercial invoices before a printer can print the same.

No authority to print receipts or sales or commercial invoices shall be granted unless the receipts or invoices to be printed are serially numbered and shall show, among other things, the name, business style, Taxpayer Identification Number (TIN) and business address of the person or entity to use the same, and such other information that may be required by rules and regulations to be promulgated by the Secretary of Finance, upon recommendation of the Commissioner.

To support its zero-rated sales of services, petitioner submitted its Schedules of Zero-Rated Sale of Services for the four quarters of CY 202098 and the related VAT zero-rated 0Rs99 issued to its clients. Based on petitioner's Schedules of Zero-Rated Sale of Services, the sales of services to the above-listed NRFCs doing business outside the Philippines (and which comply with the second and third essential elements) amounted to P5,197,163,020.01, broken down as follows: Schedule of sales of services to NRFCs doing business outside the Philippines (Table 1) Amount in Amount in Customer Name Exhibit No.

Date of OR OR No.

US Dollar ($) Philippine Peso (I')

a. THE MANUFACTURERS LIFE INSURANCE COMPANY 1,529.00 76,973.42 2,300.00 115,787.36 385.00 19,381.79 The Manufacturers Life "P-43-Q 1-f' Feb. 21, 10780 1,509.00 75,966.57 Insurance Company 2020 210.00 10,571.89 150.00 7,551.35 50.00 2,517.12 200.00 10,068.47 98 !CPA Exhibits ··r-1 5"' to "P-18", USB (Exhibit ··P-41-b'"). \ - /

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Amount in Customer Name Exhibit No.

Date of OR OR No.

US Dollar ( $) 100.00 3,410.60 721.00 144.00 180.00 260.00 112.00 40.00 100.00 920.00 132.00 112.00 1,288.00 300.00 368.00 80.00 80.00 350.00 1,126.00 1,262.49 100.00 4,002.00 4,002.00 2,001.00 4,002.00 8,004.00 3,520.00 3,934.00 2,989.00 319.70 794.50 100.00 200.00 2,383.50 5,449,743.92 5,503,514. 71 The Manufacturers Life Insurance Company "P-41-Q 1-c" Mar. 3, 2020 10785 2,620.00 1,938.00 2,083.00 2,300.00 6,074.00 The Manufacturers Life "P-43-Q 1-i" Mar. 23, 10802 350.00 Insurance Company 2020 3,695.00 350.00 92.00 240.00 Amount in Philippine Peso (P) 5,034.23 171,697.55 36,296.82 7,249.29 9,061.62 13,089.00 5,638.34 2,013.70 5,034.23 46,314.94 6,645.19 5,638.34 64,840.92 15,102.70 18,525.98 4,027.39 4,027.39 17,619.81 56,685.46 63,556.69 5,034.23 201,470.00 201,470.00 100,734.99 201,470.00 402,939.99 177,204.99 198,046.72 150,473.22 16,094.44 39,996.98 5,034.23 10,068.46 119,990.94 274,344,503.84 277,051,450.59 131,896.90 99,074.69 106,487.40 117,580.90 310,515.83 17,892.75 188,896.28 17,892.75 4,703.24 12,269.31

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Amount in Customer Name Exhibit No.

Date of OR OR No.

US Dollar($) 30.00 460.00 368.00 2,032.00 36.00 855.00 320.00 300.00 320.00 165.00 1,958.00 1,050.00 50.00 248.71 1,356.08 100.00 8,004.00 4,002.00 2,001.00 4,002.00 2,001.00 4,002.00 1,012.91 9,107.14 3,520.00 3,000.00 3,934.00 794.50 696.90 1,944.91 7,654,897.49 7, 729,690.64 8,004.00 4,002.00 1,055.42 4,002.00 2,001.00 4,002.00 The Manufacturers Life "PA3-Q2-d" Apr. 20, 10820 412.67 Insurance Company 2020 991.54 744.05 23,071.43 3,520.00 3,000.00 3,934.00 794.50 Amount in Philippine Peso (I') 1,533.66 23,516.18 18,812.95 103,880.17 1,840.40 43,709.42 16,359.08 15,336.64 16,359.08 8,435.15 100,097.13 53,678.24 2,556.11 12,714.59 69,325.70 5,112.21 409,181.54 204,590.77 102,295.39 204,590.77 102,295.39 204,590.77 51,782.12 465,576.40 179,949.90 153,366.39 201,114.46 40,616.53 35,627.02 99,427.94 390,157,098.56 393,980,683.81 408,325.69 204,162.84 53,842.47 204,162.84 102,081.42 204,162.84 21,052.44 50,583.61 37,957.87 1,176,993.69 179,573.51 153,045.61 200,693.81 40,531.58

Manulife Data Services, Inc. v. Commissioner of Internal Revenue r —_ The Manufacturers Life Insurance Company “P.43-Q2-1” May 27, 2020 10842 Amount in Amount in Customer Name 7 Exhibit No. Date of OR | OR No. US Dollar a a , ine Peso ee 200.00 120,00 1,764.00 80.00 250.00 346.00 624.00 1,828.00 164.00 112.00 45.00 128.00 75.00 1,667.00 1,188.00 196.00 4,644.00 221.00 1,732.50 3,675.00 1,355.00 9,798,957.05 5,885,599. 86 | i 3,421.00 4,494.00 9,263.00 4,494.00 1,002.00 1,209.74 1,194.65 8,004.00 4,002.00 315.10 16,074.89 1,765.60 90,072.44 75.00 3,826.14 345.00 17,600.25 19,895.93 10,203.04 6,121.83 77,543.11 89,990.82 4,081.22 12,753.81 17,651.26 31,833.48 93,255.79 8,366.50 5,713.70 2,295.68 6,529.95 3,826.14 85,042.34 | 60,606.06 9,998.98 37,853.29 236,914.60 1,683.50 | 11,274.36 10,203.04 44,893.38 15,712.69 6,121.83 88,383.83 | 187,480.87 69,125.60 296,450,684.88 300,870, 785.45 174,523.01 229,262.32 268,493.01 229,262.32 51,117.23 17,498.21 61,715.13 60,945.31 19,075.61 408,325.69 204,162.84

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Customer Name Exhibit No. The Manufacturers Life “P-43-Q2-0” Insurance Company Date of OR June 18, 2020 OR No.

10848 Amount in Amount in US Dollar ($ Philippine Peso (P 495.02 25,253.54 4,002.00 204,162.84 2,001.00 4,002.00 204,162.84 500.20 25,517.80 22,950.00 1,170,798.91 179,573.51 10,203.04 3,000.00 153,045.61 3,934.00 200,693.81 794.50 40,531.58 100.00 9,101.52 311.65 200.00 1,765.60 112.00 20.00 15,898.89 10,203.04 90,072.44 9,713.70 1,020.31 tt 328.00 16,732.98 80.00 4,081.22 550.00 28,058.36 287,171,896.95 5,713,117.64 291,389, 184.99 381.00 19,351.88 864.00 43,884.60 1,120.00 56,887.45 702.00 35,656.24 4,672.89 11,377.49 435.00 22,094.68 420.00 21,332.79 810.00 1,170.00 600.00 150.00 1,880.00 112.00 5,688.75 149.00 7,968.07 240.00 12,190.17 328.00 16,659.90 2,449.00 124,390.49 173,252.74 1,791.00 223.00 11,326.70 1,457.00 74,004.47 8,004.00 406,542.06 ‘ Manulife Data Services, Inc. v. Commissioner of Internal Revenue ES na EEE x Customer Name Exhibit No. Date of OR | OR No. US Dollar ($ Philippine Peso (P 4,002.00 203,271.03 4,002.00 203,271.03 1,178,020.12 3,920.00 178,789.12 612.75 31,123.02 225.00 11,428.28 1,372.50 69,712.51 3,000.00 152,377.08 3,934.00 199,817.15 794.50 40,354.53 271.40 13,785.05 1,765.60 | _ 89,678.99 2,616,163.87 132,014,142.49 2,691, 748.48 135,853,263,30 The Manufacturers Life June 26, Ls 48.00 | Insurance Compan “P-43-Q2-v” 2020 LO860 1,048.00 53,463.93 1,370.00 69,585.54 6,080.00 308,817.55 24,380.33 360.00 18,285.25 3,878.00 196,972.78 4,200.00 213,327.92 1,834.00 93,153.19 725.00 36,824.46 1,215.00 61,712.72 80.00 4,063.39 1,060.00 53,839.90 616.00 31,288.09 1,457.00 74,004.47 8,004.00 406,542.06 The Manufacturers Life “P-43-Q3-a” July 17, 10868 Ss eae nsurance Company 2020 1 1,175.47 59,704.90 4,002.00 203,271.03 4,002.00 203,271.03 1,475.59 74,948.70 924.75 46,970.24 22,950.00 1,165,684.68 6,346.00 322,328.32 3,920.00 178,789.12 50.00 2,539.62 3,000.00 152,377.08 3,934.00 199,817.15 794.50 40,354.53 230.00 11,682.24 1,765.60 89,678.99 | 2,086 ,649.33 298 362,929.53 Manulife Data Services, Inc. v. Commissioner of Internal Revenue Customer Name 10878 The Manufacturers Life July 22, Insurance Company | “P-43-Q3-g” 2020 The Manufacturers Life | , ” Aug. 24, Insurance Company P-43-Q3-k 2020 10901 | Amount in Amount in Exhibit No Date of OR | OR No. US Dollar ($ Philippine Peso (P 5,173,575.39 1,520.00 180.00 925.00 960.00 816.00 224.00 | 1,210.00 100.00 590.00 200.00 600.00 2,088.00 2,466.00 80.00 2,024.20 901.00 3,122.00 1,275.00 1,457.00 675.27 8,004.00 4,002.00 2,001.00 2,001.00 22,950.00 400.00 12,865.50 t 320.00 15,707.83 1,048.00 91,443.16 1,134.00 95,664.64 80.00 3,926.96 4,078.00 200,176.72 5,707.84 280,180.63 4,228.48 207,963.33 3,920.00 172,786.17 925,00 25,770.66 262,778,109, 36 44,697.28 47,908.90 74,612.21 8,835.65 25,770.66 47,123.50 40,054.97 10,995.48 99,395.25 4,908.70 28,961.32 9,817.40 2,945.21 3,926.96 29,452.18 127,037.11 121,048.50 3,926.96 99,361.87 44,227.37 153,249.56 62,585.90 71,519.73 17,180.45 33,146.97 392,892.20 39,899.37 25,674.45 196,446.10 98,223.05 98,223.05 42,661.49 1,126,546.24 | 19,634.79 631,528.56 Manulife Data Services, Inc. v. Commissioner of Internal Revenue Customer Name ___i| The Manufacturers Life Insurance Company The Manufacturers Life Insurance Company Exhibit No.

Date of OR | OR No.

Amount in US Dollar ($ 3,000.00 3,934.00 794.50 200.00 1,765.60 9,723,693.35 5,832,084. 71 “P-43-Q3-r”_| Sep. 9, 2020 | 10913 4,323.76 “P_43-Q3-s” Sep. 16,

5020 10916

Amount in 147,260.94 193,108.19 38,999.60 9,817.40 86,667.97 286, 164,402.90 291,485,007.57 212,240.33 1,062.00 52,130.38 559,591.60 149,224.43 52,915.76 240.00 11,780.88 850.00 41,723.93 600.00 29,452.18 164,441.39 900.00 44,178.29 120.00 5,890.44 1,375.00 67,494.60 20.00 981.74 1,200.00 58,904.38 1,810.00 88,847.43 290.00 14,235.22 184.00 9,032.01 2,320,00 113,881.80 1,200.00 58,904.38 149,008.44 77,932.94 3,310.00 162,477.91 383.25 18,812.59 273.00 13,400.75 810.00 | 2,300.00 6,944.83 39,760.46 39,760.46 28,225.02 112,900.06 | 1,457.00 71,519.73 8,004.00 962.73 4,002.00 2,801.12 2,001.00 392,892.20 27,622.71 13,754.17 196,446.10 137,498.52 98,223.05 98,223.05 31,305.72

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Customer Name Exhibit No.

The Manufacturers Life Insurance Company “P-43-Q4-a” Date of OR Oct. 21, 2020 OR No.

10942 Amount in Amount in US Dollar ($ Philippine Peso (P 800.32 39,285.30 22,950.00 1,126,546.24 675.00 33,133.72 10,875.00 533,820.93 2,288.00 112,311.01 17,364.00 852,346.36 [500.00] 24,543.49 3,000.00 147,260.94 6,590.14 323,490.09 3,934.00 193,108.19 4,423.39 217,130.87 ro8s0) 38,999.60 179.40 8,806.21 1,765.60 86,667.97 9,918,088.29 6,060,579.43 2,100.00 290,414,881.81 297,409, 341.86 101,341.57 4,692.00 226,426.02 350.00 16,890.27 612.00 29,533.83 1,800.00 86,864.20 100.00 160.00 650.00 4,825.78 7,721.26 31,367.63 1,470.00 70,939.09 296.00 14,284.34 7,510.00 | 362,416.75 40.00 32,972.00 2,416.01 1,220.00 600.00 3,344.00 360.00 360.00 490.00 1,930.32 1,591,159.14 116,591.54 58,874.62 28,954.74 161,374.39 17,372.84 17,372.84 23,646.37 1,176.00 56,751.28 200.00 9,651.58 1,410.00 650.00 315.00 1,710.00 14,570.00 68,043.63 31,367.63 15,201.24 23,646.37 82,520.99 703,117.45

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Monn nen nnn nnn enn nnn nnn nnn nn nnn nen nnn nn nn nnn nnn nn en ence nnn nnn ee eee x mn a nn | Amount in Amount in t Customer Name Exhibit No. Date of OR | OR No. US Dollar ($ Philippine Peso (P? 1,457.00 70,311.75 350.00 8,004.00 16,890.27 386,256.15 21,121.52 11,718.95 4,002.00 193,128.07 20,517.81 2,001.00 96,564.04 1,538.12 74,226.42 850.34 41,035.61 24,285.71 1,171,977.12 16,229.75 783,213.49 2,900.00 139,947.88 1,672,00 80,687.19 990.00 26,541.84 3,000.00 144,773.67 3,934.00 189,846.54 794.50 38,340.90 6,992.57 81,132.13 6,325,688.59 305,278,578. 14 6,483,961.83 312,916,510.77 The Manufacturers Life Insurance Compan “P-43-Q4-s” 10953 2,873.36 141,044.57 2,880.00 139,285.20 826.00 39,947.77 5,400.00 261,159.74 375.00 18,136.09 900.00 80.00 400.00 1,322.00 824.00 [9,672.59 | 200.00 9,672.59 4,040.00 195,386.18 8,802.05 3,967.00 191,855.69 2,079.40 100,565.85 5,049.52 244,209.51 5,207.05 251,828.12 41,108.48 120.00 150.00 7,254.44

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Amount in Amount in Customer Name Exhibit No. Date of OR | OR No. US Dollar ($ Philippine Peso (P 4,250.00 205,542.39 9,861.43 476,927.50 39,899.41 1,750.00 84,635.11 8,742.00 422,788.61 1,457.00 70,464.77 9,924.45 8,004.00 387,096.77 300.12 14,514.68 18,068.39 250,10 12,095.57 30,238.92 2,001.00 96,774.19 350,14 16,933.79 45,963.15 1,457.00 70,464.77 3,000.00 145,088.75 8,500.00 411,084.78 35,942.85 1,738,301.00 24,786.00 18,356.75 887,785.94 2,900.00 140,252.45 1,672.00 80,862.79 290,177.49 3,934.00 190,259.70 4,266.00 206,316.19 26,075.00 1,285,244.47 4,266.00 200.00 9,672.59 1,681.22 81,308.70 1,200.00 58,035.50 5,481.06 7,608.00 4,560.00 350.00 16,812.37 608.00 29,205.49 600.00 28,821.21 650.00 31,222.98 400.00 19,214.15

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Customer Name Exhibit No.

Date of OR OR No.

Amount in US Dollar ($ 1,608.00 384.00 300.00 296,00 150.00 1,797.00 3,320.00 95.00 200.00 1,292.00 2,304.00 948.00 3,299.00 3,059.00 1,154.00 162.00 130.00 400.00 225,00 Amount in 14,218.46 77,240.85 18,445.57 14,410.60 7,205.30 2,161.59 135,651.84 86,319.54 159,477.37 4,563.36 17,292.73 9,607.07 17,484.87 62,061.68 110,673.45 45,537.52 20,895.38 158,468.63 146,940.15 55,432.80 7,781.73 6,244.60 19,214.15 10,807.95 310.00 14,890.96 6,207.99 298,202.99 1,457.00 69,987.51 2,700.00 129,695.46 6,662.50 320,035.54 8,805.50 422,975.31 7,868.00 377,942.17 7,868.00 3,934.00 188,971.08 3,934.00 188,971.08 3,000.00 144,106.06 125.00 6,004.42 12,750.00 612,450.77 | 1 837,352.30 35,901.00 1,724,517.25 2,900.00 4,660.00 223,844.75 850.00 40,830.05 38,428.28 52,838.89 26,575.00 1,276,539.53 2,132.90 102,454.61

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Customer Name Exhibit No. Date of OR Manufacturers Life Insurance Compan - Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Company Manufacturers Life Insurance Company Manufacturers Life Insurance Company |. | |e Insurance Compan - Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life - 368.00 17,677.01 - 9,050.00 242,578.54 Amount in Philippine Peso (?

Amount in US Dollar ($ 4,266.00 204,918.82 794,50 38,164.09 187.45 9,004.22 1,681.22 80,757.99 6,222,178.49 300,911,737.40 6,463,343.55 312,496, 186.43 600.00 28,821.21 4,586.00 220,290.13 1,920.00 73,013.74 150.00 7,205.30 40.00 1,921.42 1,008.00 48,419.64 678,00 32,567.97 1,150.00 95,240.66 456.00 21,904.13 2,004.00 96,262.85 2,950.00 122,490.16 5,749.00 276,155.25 9,708.00 274,185.81 674.52 32,400.81 2,813.00 135,123.45 44,288.59 177,442.60 3,694.00 Insurance Company = : 2,915.00 140,023.06

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Customer Name Exhibit No. Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Company Manufacturers Life Insurance Compan - Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan - Manufacturers Life Insurance Compan - Manufacturers Life Insurance Compan - Manufacturers Life Insurance Compan - Manufacturers Life Insurance Compan - Manufacturers Life Insurance Compan - Manufacturers Life Insurance Compan ~ Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan - Manufacturers Life Insurance Compan - Manufacturers Life Insurance Company - Manufacturers Life Insurance Company - Manufacturers Life Insurance Compan - Manufacturers Life Insurance Company Manufacturers Life Insurance Company Manufacturers Life Insurance Company - Manufacturers Life Insurance Compan Manufacturers Life Insurance Compan - Manufacturers Life Insurance Compan - Manufacturers Life Insurance Company Manufacturers Life Insurance Compan - Manufacturers Life Insurance Company - Amount in US Dollar ($ 2,317.80 1,457.00 - 8,004.00 - 214.82 - 4,002.00 2,001.00 - 675,27 - 650.00 - 122.50 122.50 - 8,004.00 2,001.00 3,375.00 7,868.00 - 912.50 3,000.00 11,535.71 - 33,575.00 1,032.14 16,969,75 Amount in Phili 31,222.98 1,921.42 7,205.30 111,336.34 69,987.51 384,474.98 10,318.95 192,237.49 96,118.74 32,436.84 31,222.98 5,884.33 5,884.33 384,474.98 7,178.40 2 912.71 24,628.21 96,118.74 25,829.57 162,119.32 377,942.17 144,106.06 43,832.26 4,803.53 954,121.92 1,612,787.01 49,579.21 27,620.33 815,147.95 Wa

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Kona nn nono nn re nnn nn nnn nnn nnn nn nn nn nn ne nn ne eee nn eee nnn eee x Amount in Amount in Customer Name Exhibit No. | Date of OR | OR No. US Dollar ($) Philippine Peso (P) Manufacturers Life Insurance Company | __- | - 2,755.00 132,337.40 Manufacturers Life Insurance Compan - js - - 4,194.00 201,460.28 Manufacturers Life Insurance Company - - 600,24 28,832.74 [ Manufacturers Life | Insurance Company - - 2,700.00 129,695.46 | Manufacturers Life - - 26,575.00 1,276,539.53 Insurance Compan Manufacturers Life | Insurance Company Manufacturers Life Insurance Company Manufacturers Life Insurance Company 2,133.00 102,459.41 | 4,266.00 | 204,918.82 + 794.50 Manufacturers Life Insurance Company —|-—_——- TT.

i = T.

Manufacturers Life Insurance Company jo | 104.65 5,026.90 1,681.22 Manufacturers Life a ne Insurance Company Manufacturers Life —_—__|—_ 127.73 6,516,442.16 | Insurance Company Total

b. JOHN HANCOCK LIFE INSURANCE COMPANY (USA John Hancock Life Insurance Company John Hancock Life Insurance Company John Hancock Life 798.00 2,900.00 “Dp 4AQ_ -_ Feb. 2l, 350.00 P-43-O1-c 020 10777 ae 463.45 2,129,748.11 | 60,00 360.00 2,500.00 “P-43-Q1-1” DO. 10807 Apr. 20, Insurance Company P-43-Q2-a 2020 10817

L | “P-43-Q2-I"_ |

2,050,891.41 | 10837 2,900.00 70,690,019.83 1,707.50 2,397,125.47 2,402,811.42 2,900.00 245,00 2,240.00 2,044 ,637.86 122,502,693.16 fo Ot 38,164.09 80,757.99 | 6,135.56 313,011,411.17 3,509,913,939,78 22,654.04 40,173.18 125,855.82 17,619.81 12,333.87 23,331.15 106,983 403.51 107,225,371.38 3,067.33 18,403.97 127,805.33 17,892.75 12,524.92 87,291.04 23,692.56 122,212,015.26 127,538.01 17,855.32 12,498.73 22,117.64 24,742.37 114,274.06 104,525,299.67 104, 844,325.80 127,538.01

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Exhibit No. | Customer Name Date of OR | OR John Hancock Life Insurance Company | John Hancock Life Insurance Company “P-43-Q2-1 John Hancock Life « ” Insurance Company P-43-Q3-d John Hancock Life Insurance Company John Hancock Life Insurance Company John Hancock Life Insurance Company “P-43-Q3-0” “P.43-Q3-v” “P-48-OR-a” May 22, 2020 June 18,

2020 10851

July 17,

2020 10871

Aug. 24, 2020 10904 Sept. 16,

5020 10919

Oct. 21,

2020 10945

122.50 2,068,444,82 114,824, 755.66 875.00 44,443.31 1,050.00 2,500,00 126,980.90 350.00 17,777.32 122.50 6,222.07 122.50 6,222.07 1,450,420.69 63,656,344.30 1,453,979,14 63,837,879.35 2,500.00 126,980.90 350.00 17,777.32 122.50 6,222.07 122.50 448.50 22,780.37 2,064,901.32 | Amount in Amount in No. US Dollar ($ Philippine Peso (? 350.00 17,855.32 6,249 36 6,249.36 23,643.00 114,644,772.93 463.45 95,131,730.02 2,800.00 1,050.00 1,050.00 51,541.33 2,500.00 122.50 6,013.16 122.50 6,013.16 448.50 22,015.52 2,227,188.34 111,373,471.65 2,235,28 1.84 111,770,757.16 450.00 22,089.14 2,000.00 98,173.97 2,900.00 122,717.46 350.00 17,180.45 122.50 6,013.16 122.50 6,013.16 1,037.50 | 90,927.74 463.45 22,749.36 2,317,176.02 2,324,221.97 875.00 122.50 1,550.00 74,799.73 120,644.72 113,743,186.77 114,089,051.21 42,225.66 5,911.59 5,911.59

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

+ - Customer Name | Exhibit No. Date of OR -+— John Hancock Life a , Nov. 20, Insurance Company P-43-Q4-f 2020 —____| | John Hancock Life « » Dec. 17, Insurance Company P-43-Q4-m 2020 John Hancock USA - - John Hancock USA - - John Hancock USA - - John Hancock USA - fF oe John Hancock USA | - Total Manulife (International) Limited Manulife International) Limited Manulife International) Limited Manulife (International) Limited (Internationa!) Limited Manulife (International) Limited Manulife | (International) Limited

c. MANULIFE (INTERNATIONAL) LIMITED “P-41-Q1-b” “P-41-Q1-e” “P-41-Q1-f” “P-41-Q1-g” Manulife “P-41-Q1-h” “P-41-Q1-1” “P-41-Q2-a” Mar. 2, 2020 Mar. 23, 2020 Mar. 25, 2020 Mar, 26, 2020 Apr. 13, 2020 OR No.

10961 10984 10784 10806 10810 10811 10813 Amount in US Dollar ($ 463.45 2,397,148.81 2,402,782,26 40.00 1,130.00 2,000.00 350.00 122.50 448.50 8,918.68 2,432 ,669.74 2,446,179,42 2,900.00 350.00 122.50 122.50 2,900.00 960.90 463.45 2,087 242.36 2,593,861.71 240.00 2,900.00 7,381.55 448.50 2,997,089,91 26,548,815.55 1,050.00 27,291.30 28,341.30 5,061.63 Amount in Philippine Peso (P 22,365.11 115,844,442.43 116,116,300.83 1,934.52 54,650.09 120,907.29 16,927.02 5,924.45 21,690,77 431,333.36 116,697,640.65 120,088.38 16,812.37 5,884.33 5,884.33 26,943.03 22,261.99 124,849,876.89 125, 167,839.70 120,088.38 354,575.36 21,543.85 122,830,253.34 1,316,199,701.83 92,859.45 1,373,907.92 1,426, 767.37 2,848,703.42 50,817.27 613.47 158,579.47 450.00 23,004.96 50.00 2,017.12 159,079.47 8,053,954.55 8,935.95 429,719.59 7,050.66 32,056.99 1,350.57 6,222.83 7,080.53 361,971.78 6,104.73 312,086.81 163,338.09 8,406,246.96 176,523.35 9,080,305.55 10,610.78 541,311.10 We

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Amount in Customer Name Exhibit No.

Date of OR OR No.

US Dollar (ll 124,141.06 Manulife 155,157.10 (International) Limited "P-41-Q2-e" May 5, 2020 10831 19,247.96 450.00 298,996.12 4,002.00 4,002.00 Manulife "P-41-Q2-g" May 21, 10835 4,002.00 (International) Limited 2020 4,002.00 10,419.71 26,427.71 Manulife 130,398.32 "P-41-Q2-h" May 26, 10840 (International) Limited 2020 175,509.95 305,908.27 Manulife 7,847.52 (International) Limited "P-41-Q2-i" June 3, 2020 10845 2,499.95 10,347.47 105,013.49 Manulife "P-41-Q3-a" July 3, 2020 10865 206,753.61 (International) Limited II ,349.65 323,116.75 Manulife July 10, I ,088.65 "P-41-Q3-b" 10866 17,706.42 (International) Limited 2020 18,795.07 13,926.90 Manulife "P-41-Q3-d" July 21, 10877 135,314.10 (International) Limited 2020 208,091.63 357,332.63 15,175.26 Manulife "P-41-Q3-g" Aug. 10, 10889 225.00 (International) Limited 2020 150.00 15,550.26 I ,355.25 141,222.13 Manulife "P-41-Q3-i" Aug. 27, 10908 11,954.90 (International) Limited 2020 I ,391.00 155,923.28 177,626.29 177,649.08 Manulife "P-41-Q3-k" Sept. 8, 2020 10912 175,054.14 (International) Limited 175,689.71 327,994.09 1,034,013.31 900.36 Manulife "P-41-Q3-l" Sep. 16, 10915 4,002.00 (International) Limited 2020 1,062.93 32,956.57 Amount in Philippine Peso (!') 6,346,355.38 7,924,147.89 983,996.54 22,956.84 15,277,456.65 204,590.77 201,470.00 204,162.84 204,162.84 531,563.62 1,345,950.07 6,903,572.09 9,807,077.53 16,710,649.62 398,594.07 126,978.36 525,572.43 3,504,561.90 11,309,485.17 557,120.06 15,371,167.13 4,826.23 776,551.43 781,377.66 707,380.02 6,872,922.22 I 0,4 77,298.66 18,057,600.90 744,907.71 11,478.42 7,652.28 764,038.41 6,008.25 7,171,483.08 586,829.97 6,166.80 7,770,488.10 8,942,120.15 9,056,797.24 8,949,139.73 8,962,669.22 16,693,261.08 52,603,987.42 45,731.41 203,271.03 52,176.02 1,669,950.59

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Amount in Customer Name Exhibit No.

Date of OR OR No.

US Dollar {$) 912.87 136,506.41 176,341.14 Manu life Sep. 21, {International) Limited "P-41-Q3-m" 2020 10922 500.00 186,504.25 Manulife Sep. 29, 10,706.34 "P-41-Q3-o" 10929 (International) Limited 2020 188,723.74 4,860.03 390,794.36 864.88 12,661.98 Manulife "P-41-Q4-a" Oct. 6, 2020 10932 634.38 (International) Limited 1,421.97 50.00 15,633.21 850.00 Manulife Oct. 20, 4,943.53 (International) Limited "P-41-Q4-d" 2020 10940 11,625.03 874.31 18,292.87 148,883.23 Manulife "P-41-Q4-e" Oct. 26, 10949 185,942.96 (International) Limited 2020 16,927.71 351,753.90 4,936.61 Manulife Nov. 27, 12,483.62 (International) Limited "P-47-0R-a" 2020 10970 152,043.56 185,985.07 355,448.86 172,839.25 176,089.28 Manulife 179,114.57 (International) Limited "P-41-Q4-j" Dec. 1, 2020 10972 14,089.83 543.75 1,878.16 544,554.84 Manulife (International) Limited - - - 125,086.50 Manulife Jinternational_l Limited - - - 785.00 Manulife (International) Limited - - - 80.00 Manulife (International) Limited .

- - 280.00 Manulife (International) Limited .

- - 2,770.00 Manulife (International) Limited .

- - 147,578.51 Amount in Philippine Peso IPl 44,810.04 6,762,799.94 8, 778,739.03 24,543.49 9,238,261.74 525,541.60 9,263,879.09 238,564.37 19,266,246.80 42,454.51 611,040.44 2,786.89 6,197.76 2,412.89 664,892.49 41,019.21 238,564.37 560,999.89 42,192.06 882,775.53 7 ,275,150.01 8,979,519.66 818,673.40 17,073,343.07 238,564.37 603,277.82 7,481,570.22 8,991,302.18 17,314,714.59 8,643 ,691.36 8,643,691.36 8,643,691.36 676,809.97 2,377.75 8,148.24 26,618,410.04 6,291,675.96 39,518.73 4,089.77 14,314.20 141,608.31 7,523,757.62

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Customer Name Exhibit No.

—— Manulife | (International} Limited Amount in Amount in Date of OR | OR No. US Dollar ($) Philippine Peso (?)

Manulife | (international) Limited - 9,792.44 292,628.88 | 2,943.49 147,203.72 Manulife (International) Limited Manulife Manulife International) Limited Manulife (International) Limited | (International) Limited 225.00 Manulife (International) Limited Manulife (International) Limited | Manulife International) Limited Manulife | (International) Limited Manulife Manulife International) Limited Manulife International) Limited Manulife International) Limited Mane Limited Manulife (International) Limited Manulife (International) Limited Manulife International) Limited Manulife International) Limited Manulife [international Limited Manulife | (International) Limited Manulife International) Limited Manulife International) Limited Manulife International) Limited Manulife Manulife International) Limited Manulife International) Limited Manulife (International) Limited (International) Limited - - Manulife | (International) Limited - - 9,492.00 - 100.00 - 3,010.84 - 350.00 16,890.27 - 4,002.00 193,128.07 - 3,199.99 154,424.58 - 663.38 2,920.64 | - 150.00 14,117.56 4,002.00 - 178,863.90 898.45 2,969.39 4,932.80 142,439.61 178,725.60 170,268.60 4,002.00 13,635.38 681,905.08 - 14,132.00 693,697.23 2,377.55 10,384.97 6,847.13 331,147.91 Manulife International) Limited - 9,857.01 11,044.57 147,792.76 7,204.44 682,766.36 265,609.13 4,836.29 193,548.38 8,643,691.36 43,418.16 143,497.74 238,964.37 6,994,597.14 8,643,691.36 8,206,645.29 43,820.23 192,237.49 473,484.96

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Customer Name Exhibit No.

Date of OR Amount in US Dollar ($ Manulife | (International) Limited | | 1,781.85 Manulife | (International) Limited Manulife International) Limited - 4,966.43 Manulife | (International) Limited Manulife 139,492.15 Wee Limited Manulife (International) Limited Manulife (International) Limited Manulife Total (International) Limited - 179,944.37 ~ 176,233.82 an | —- —t

d. MANULIFE ASSET MANAGEMENT (HONGKONG) LIMITED Le. MANULIFE SINGAPORE PTE. LTD.

- 32.41 6,421,037.30 Manulte Singapore Pte “P.41-Q1-a” ro 10773 708238051 82,557.41 4,156,132.02 | —_ 120.00 6,134.65 7,668.32 Manubte Singapore Pte “P_41-Q2-b” fe OO. 10814 15,336.64 700.00 35,785.49 1,270.00 64,925.10 92,197.62 4,700,362.46 18,936.84 6,121.83 50.00 2,550.76 Manulife Singapore Pte | op 4193.6" July 28, 10883 3,843,393.69 399.00 20,355.06 67,137.18 3,505,345.01 4,688,590.14 82,399.68 4,185,274.21 | 373,607.28 20,970, 930.00 ; ; 180.00 8,835.65 er Singapore Pte “P.41-Q3-h” AB 10900 4,428,798,68 i 100.00 4,908.70 Manulife Singapore Pte Oct. 16 ___ 92,671.96 4,548,957.05 Ltd: “P-41-Q4-c” 9020 , 10939 27,265.71 95,530.69 4,610,108.97 | —|— | 188,867.05 9, 191,240.43 160.00 7,738.07 30.00 | 1,450.89 vanulte Singapore Pte “P-41-Q4-h” Now 10960 980.00 47,395.65 1,225.00 59,244.57 | - 8,918.68 431,333.36 LL | 89,581.92 4,329,093.38 15,369.23 738,266.29 - 946.69 45,474.46 Amount in Philippine Peso (P 7,730.33 238,564.37 6,778 ,416.53 8,643 691.36 8,496,559.38 1,556.59 318,814,549.36 Manu1ife Data Services, Inc. v. Commissioner of Internal Revenue Amount in Customer Name Exhibit No.

Date of OR OR No.

US Dollar($) 100,895.60 250.00 300.00 Amount in Philippine Peso (P) 4,876,255.92 12,008.83 14,410.60 Manulife Singapore Pte "P-41-Q4-o" Dec. 18, 10989 320.00 15,371.31 Ltd 2020 86,246.28 4,171,121.76 87,116.28 4,212,912.50 Manu1ife Singapore Pte Ltd - - - 240.00 11,528.48 Manulife Singapore Pte Ltd - - - 195.00 9,366.90 Manulife Singapore Pte Ltd - - - 89,783.38 4,312,739.01 Total 1,013,093.58 52,234,829.04 Grand Total $104,672,966.26 1'5,197,163,020.01 Based on the foregoing, the sales of services of petitioner to the following NRFCs are as follows: Sales in US Sales in Philippine Name of client Dollar _j_$j Peso (P)

a. The Manufacturers Life Insurance Company_ 70,690,019.83 3,509,913,939.78

b. John Hancock Life Insurance Company (USA) 26,548,815.55 1,316,199,701.83

c. Manulife (International) Limited 6,421,037.30 318,814,549.36

d. Manulife Asset Management (Hong Kong) LimitedlOO - -

e. Manulife Singapore Pte. Ltd. 1,013,093.58 52,234,829.04 Total $104,672,966.26 1'5, 197,163,020.01 A scrutiny of the submitted schedules, together with the related ORs and the remittances per Bank Statement, reveals that f>2,039,254,328.34 of the total sales off>5,197,163,020.01, cannot be accorded VAT zero-rating. The disallowed portion is detailed below, with the corresponding grounds for denial clearly stated, viz.: Client Name I Exhibit No. I Sales in US I Sales in Dollar Philippine Peso

1. Sales not covered by the supporting VAT zero-rated ORs (amount per OR is less than the amount per Schedule o_f Zero-Rated Sale o_f Services)1° 1 100 No sale to Manu life Asset Management (Hong Kong) Limited was found in the Schedules of Zero-Rated Sale of Services for the subject period. 101 The rates used in converting the Sales to Philippine peso were derived by dividing the total Amount in Philippine Peso Qy the total Amount in US Dollar per Table 1, to Wit: Amount in Amount in US Philippine Peso Dollar conversion rate Exhibit No.

_laJ lbl rc~aibl "P-41-Q 1-c'' 131.896.90 2.620.00 50.3423 "P-43-Q 1-i" 393,980,683.81 7,729.690.64 50.9698 Manulife Data Services, Inc. v. Commissioner of Internal Revenue The Manufacturer's Life Insurance Company The Manufacturer's Life Insurance Company (USD7,729,690.64 total per schedule less USD7,729,310.19 per OR) “P-43-Q 1-i” 380.45 19,391.46 The Manufacturer's Life Insurance Company (USD6,483 961.83 total per schedule less USD6,476,646.52 per OR “P-43-04-a” 7,315.31 The Manufacturer's Life Insurance Company (USD6,463,343.55 total per schedule less USD6,456,722.01 per OR - 6,621.54 John Hancock Life Insurance Company [USD2,402,811.42 total per schedule less USD2,401,098.87 per OR John Hancock Life Insurance Company [USD2,324,221.97 total per schedule “P_43-Q1-1” 1,712.55 Manulife (International) Limited [USD1,034,013.31 total per schedule less USD1,021,555.85 per OR Subtotal “P_41-Q3-k” 12,457.46 43,715.94 number (BRN) 3360260093 indicated [remittance for BRN 3360052153 John Hancock Life Insurance Company [remittance for BRN 3360084087 indicated per schedule is USD2,891,719.10} “P-43-Q1-]” 2,401,098.87 48.2601 “P-43-Q4-a™ 312,916,510.77 6.483,961.83 * 312,496.186.43 6,463,343.55 122,502,693.16 2.402,811,42 50.983 | “P-43-Q3-v" 114,089,051.21 2,324,221.97 49.0870 “P-43-Q4-f" 117.351.008,15 2.446.179.42 47.9732 “P-41-Q3-k” 52,603,987.42 1.034.013.31 50.8736 Sales in US Sales in Client Name Exhibit No. Dollar Philippine Peso (USD2,620 per schedule less USD 1,938.55 per OR} | “P-41-Q1-c” 681.45 34,305.76 less USD2,323,184.47 per OR “P-43-Q3-v” 1,037.50 50,927.76 John Hancock Life Insurance Company [USD2,446,179.42 total per schedule less USD2,432,669.74 per OR] “P-43-QO4-P 13,509.68 648,102.58 :

2. Sales supported by VAT zero-rated ORs but were not traced to remittance per bank statement (remittance amount do not match with the amount per OR The Manufacturer's Life Insurance Company [remittance for bank reference | per schedule is USD6,175,851.18] “P-43-Q3-s” 6,060,579.43 | 297,409,341.86 John Hancock Life Insurance Company indicated per schedule is USD2,474,411.60 “P-43-Q 1-c” 2,129,748.11 107 225,371.38 122,415,382.05102 353,037.59 320,144.84 87,311.11 633,755.84 2,146,976.94 '©2 Total sales per schedule (refer to Table 1) of P122,502,693.16 (equivalent to USD2.402,81 1.42) less sales not covered by OR (see item 1 of this table with the same exhibit reference) amounting to P87,311.11 (equivalent to oy

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Sales in US Sales in Client Name Exhibit No.

Dollar Philippine Peso John Hancock Life Insurance Company [remittance for ERN 3360111063 indicated per schedule is USD2 ,384, 109.621 "P-43-Q2-a" 2,050,891.41 104,844,325.80 John Hancock Life Insurance Company [remittance for ERN 3360143116 indicated per schedule is USD 1,505,342.541 "P-43-Q2-i" 1,453,979.14 63,837,879.35 John Hancock Life Insurance Company [remittance for ERN 3360170090 indicated per schedule is USD2,461,919.34] "P-43-Q2-r" 2,068,444.82 114,824,755.66 John Hancock Life Insurance Company [remittance for ERN 3360199106 indicated per schedule is USD2 ,229,388.401 "P-43-Q3-d" 1,872,953.49 95,131,730.02 John Hancock Life Insurance Company [remittance for ERN 3360237115 indicated per schedule is USD2,588,086.961 "P-43-Q3-o" 2,235,281.84 111,770,757.16 John Hancock Life Insurance Company [remittance for ERN 3360260096 indicated per schedule is 114,038,123.45 103 USD2,675,446.89] "P-43-Q3-v" 2,323,184.4 7 John Hancock Life Insurance Company [remittance for ERN 3360325173 indicated per schedule is USD2,810,066.23] "P-43-Q4-f' 2,432,669.74 116,702,905.57104 John Hancock Life Insurance Company [remittance for ERN 3360352111 indicated per schedule is USD2,804,209.881 "P-43-Q4-m" 2,593,861. 71 125,167,839.70 Manulife (International) Limited [OR amount of USD 355,438.85 less remitted amount ofUSD31,474.56 per

ERN 3360332032]

"P-47-0R-a" 323,964.29 15,781,045.68105 Subtotal 27,946,657.32 1,389,149,457.68

3. Sales supported by VAT OR but was not prominently indicated as "zero-rated sales" John Hancock Life Insurance Company "P-48-0R-a" 2,402,782.26 116,116,300.83

4. Sales supported by VAT OR but presented therein as "VAT-exempt sales" Manulife Singapore Pte Ltd "P-41-Q3-h" 88,561.58 4,428,798.68

5. Sales without supporting VAT ORs The Manufacturer's Life Insurance Company_ - 600.00 28,821.21 The Manufacturer's Life Insurance Company - 4,586.00 220,290.13 103 Total sales per schedule (refer to Table\) ofr'l\4.089.051.21 (equivalent to USD2.324.221.97) less sales not covered by OR (see item I of this table with the same exhibit reference) amounting to fl'50,927.76 (equivalent to USD 1.037.50).

104 Total sales per schedule (refer to Table I) of 1'117.351.008.15 (equivalent to USD2,446.179.42) less sales not covered by OR (see item 1 of this table with the same exhibit reference) amounting to P648,102.58 (equivalent to USD13,509.68).

105 Derived using 48.7123 conversion rate (Amount in PhP of 17.314,714.59-:- Amount in USD of 355,448.86). v

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Sales in US Client Name Exhibit No.

Dollar The Manufacturer's Life Insurance Company - 1,520.00 The Manufacturer's Life Insurance Com_IJ_any - 648.00 The Manufacturer's Life Insurance Company - 2,600.00 The Manufacturer's Life Insurance Company - 450.00 The Manufacturer's Life Insurance Company - 375.00 The Manufacturer's Life Insurance Company - 150.00 The Manufacturer's Life Insurance Company - 40.00 The Manufacturer's Life Insurance Company - 1,008.00 The Manufacturer's Life Insurance Company - 678.00 The Manufacturer's Life Insurance Company - 1,150.00 The Manufacturer's Life Insurance Company - 140.00 The Manufacturer's Life Insurance Company - 132.00 The Manufacturer's Life Insurance Company - 456.00 The Manufacturer's Life Insurance Cotl1]2_an y - 2,004.00 The Manufacturer's Life Insurance Company - 2,550.00 The Manufacturer's Life Insurance Company - 5,749.00 The Manufacturer's Life Insurance Company - 5,708.00 The Manufacturer's Life Insurance Company - 674.52 The Manufacturer's Life Insurance Company - 368.00 The Manufacturer's Life Insurance Company - 5,050.00 The Manufacturer's Life Insurance Com_IJany - 2,813.00 The Manufacturer's Life Insurance Company - 922.00 The Manufacturer's Life Insurance Company - 3,694.00 The Manufacturer's Life Insurance Company - 2,915.00 The Manufacturer's Life Insurance Company - 650.00 The Manufacturer's Life Insurance Company - 40.00 ·-- ·- The Manufacturer's Life Insurance Company - 150.00 Sales in Philippine Peso 73,013.74 31,126.91 124,891.92 21,615.91 18,013.26 7,205.30 1,921.42 48,419.64 32,567.97 55,240.66 6,724.95 6,340.66 21,904.13 96,262.85 122,490.16 276,155.25 274,185.81 32,400.81 17,677.01 242,578.54 135,123.45 44,288.59 177,442.60 140,023.06 31,222.98 1,921.42 7,205.30 v

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Sales in US Client Name Exhibit No.

Dollar The Manufacturer's Life Insurance Company - 2,317.80 The Manufacturer's Life Insurance Company - 1,457.00 The Manufacturer's Life Insurance Company - 8,004.00 The Manufacturer's Life Insurance Company - 214.82 The Manufacturer's Life Insurance Company - 4,002.00 The Manufacturer's Life Insurance Company - 2,001.00 The Manufacturer's Life Insurance Company - 675.27 The Manufacturer's Life Insurance Company - 650.00 The Manufacturer's Life Insurance Company - 122.50 The Manufacturer's Life Insurance Company - 122.50 The Manufacturer's Life Insurance Company - 8,004.00 The Manufacturer's Life Insurance Company - 149.44 The Manufacturer's Life Insurance Company - 4,252.10 The Manufacturer's Life Insurance Company - 512.71 The Manufacturer's Life Insurance Company - 2,001.00 The Manufacturer's Life Insurance Company - 537.72 The Manufacturer's Life Insurance Company - 3,375.00 The Manufacturer's Life Insurance Company - 7,868.00 The Manufacturer's Life Insurance Company - 3,934.00 The Manufacturer's Life Insurance Company - 3,000.00 The Manufacturer's Life Insurance Company - 912.50 The Manufacturer's Life Insurance Company_ - 100.00 The Manufacturer's Life Insurance Company - 11,535.71 The Manufacturer's Life Insurance Company - 33,575.00 The Manufacturer's Life Insurance Company - 1,032.14 The Manufacturer's Life Insurance Company - 575.00 The Manufacturer's Life Insurance Company - 16,969.75 Sales in Philippine Peso 111,336.34 69,987.51 384,474.98 10,318.95 192,237.49 96,118.74 32,436.84 31,222.98 5,884.33 5,884.33 384,474.98 7,178.40 204,251.13 24,628.21 96,118.74 25,829.57 162,119.32 377,942.17 188,971.08 144,106.06 43,832.26 4,803.53 554,121.92 1,612,787.01 49,579.21 27,620.33 815,147.95

Manulife Data Services, lnc. v. Commissioner of Internal Revenue

Sales in US Client Name Exhibit No.

Dollar The Manufacturer's Life Insurance Company - 2,755.00 The Manufacturer's Life Insurance Company - 4,194.00 The Manufacturer's Life Insurance Company - 600.24 The Manufacturer's Life Insurance Company - 2,700.00 The Manufacturer's Life Insurance Company - 26,575.00 The Manufacturer's Life Insurance Company - 2,133.00 The Manufacturer's Life Insurance Company - 4,266.00 The Manufacturer's Life Insurance Company - 794.50 The Manufacturer's Life Insurance Company - 104.65 The Manufacturer's Life Insurance Company - 1,681.22 The Manufacturer's Life Insurance Company - 127.73 The Manufacturer's Life Insurance Company - 6,516,442.16 John Hancock Life Insurance Company - 240.00 John Hancock Life Insurance Company - 2,500.00 John Hancock Life Insurance Company - 7,381.55 John Hancock Life Insurance Company - 448.50 John Hancock Life Insurance Company - 2,557,089.91 Manu1ife (International) Limited - 125,086.50 Manulife (International) Limited - 785.00 Manulife {International) Limited - 80.00 Manulife (International) Limited - 280.00 Manu1ife (International) Limited - 2,770.00 Manulife (International) Limited - 147,578.51 Manulife {International) Limited - 5,792.44 Manulife (International) Limited - 2,943.49 Manulife (International) Limited - 13,635.38 Manulife (International) Limited - 14,132.00 Manulife (International) Limited - 225.00 Manulife (International) Limited - 3,010.84 Manulife (International) Limited - 350.00 Manulife {International) Limited - 4,002.00 Manulife (International) Limited - 3,199.99 Manulife (International) Limited - 663.38 Manulife (International) Limited - 2,377.55 Manulife (International) Limited - 150.00 Manulife (International) Limited - 14,117.56 Manulife (International) Limited - 5,492.00 Manulife (International) Limited - 100.00 Manulife (International) Limited - 4,002.00 Sales in Philippine Peso 132,337.40 201,460.28 28,832.74 129,695.46 1,276,539.53 102,459.41 204,918.82 38,164.09 5,026.90 80,757.99 6,135.56 313,011,411.17 11,528.48 120,088.38 354,575.36 21,543.85 122,830,253.34 6,291,675.96 39,518.73 4,089.77 14,314.20 141,608.31 7,523,757.62 292,628.88 147,203.72 681,905.08 693,697.23 11,044.57 147,792.76 16,890.27 193,128.07 154,424.58 2,920.64 10,384.97 7,254.44 682,766.36 265,609.13 4,836.29 193,548.38 v

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Sales in US Sales in Client Name Exhibit No.

Dollar Philippine Peso Manulife (International) Limited - 178,863.90 8,643,691.36 Manulife (International) Limited - 898.45 43,418.16 Manulife (International) Limited - 2,969.39 143,497.74 Manulife (International) Limited - 4,932.80 238,564.37 Manulife (International) Limited - 6,847.13 331,147.91 Manulife (International) Limited - 142,439.61 6,994,597.14 Manulife (International) Limited - 178,725.60 8,643,691.36 Manulife (International) Limited - 170,268.60 8,206,645.29 Manulife (International) Limited - 906.77 43,820.23 Manulife (International) Limited - (317.58) (15,347.71) Manulife (International) Limited - 4,002.00 192,237.49 Manulife (International) Limited - 4,002.00 192,237.49 Manulife (International) Limited - 9,857.01 473,484.96 Manulife (International) Limited - 1,781.85 7,730.33 Manulife (International) Limited - 4,966.43 238,564.37 Manulife (International) Limited - 15,369.23 738,266.29 Manulife (International) Limited - 139,492.15 6,778,416.53 Manulife (International) Limited - 179,944.37 8,643,691.36 Manulife (International) Limited - 176,233.82 8,456,555.38 Manulife (International) Limited - 946.69 45,474.46 Manulife (International) Limited - 32.41 1,556.59 Manulife Singapore Pte Ltd - 240.00 11,528.48 Manulife Singapore Pte Ltd - 195.00 9,366.90 Manulife Singapore Pte Ltd - 89,783.38 4,312,739.01 Subtotal 10,959,909.59 527,412,794.21 Total 41,441,626.69 2,039,254,328.34 Thus, only the sales of services m the amount of P3,157,908,691.67, as computed below, satisfied the fourth essential element and the fifth requisite, i.e., that the sales were paid for in acceptable foreign currency and accounted for in accordance with BSP rules and regulations: Sales pertaining to considered NRFCs p 5,197,163,020.01 Less: Sales denied of VAT zero-rating (2,039 ,254,328.34:1_ Valid zero-rated sales P3,157,908,691.67 Thus, and for purposes of compliance with the fourth and fifth requisites, petitioner has established that its sales of services to NRFCs for CY 2020 in the aggregate amount of P3,157,908,691.67, qualify for VAT zero-rating under Section 1 08(8)(2) of the NIRC of 1997, as amended. (

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Sixth requisite: The input taxes being claimed do not appear to be transitional input taxes.

The input taxes claimed do not appear to be transitional, as understood under Section 111 (A) of the NIRC of 1997, as amended, to wit:

SEC. 111. Transitional/ Presumptive Input Tax Credits. - (A) Transitional Input Tax Credits. - A person who becomes liable to value-added tax or any person who elects to be a VAT- registered person shall, subject to the filing of any inventory according to the rules and regulations prescribed by the Secretary of Finance, upon recommendation of the Commissioner, be allowed input tax on his beginning inventory of goods, materials and supplies equivalent to two percent (2%) of the value of such inventory or the actual value- added tax paid on such goods, materials and supplies, whichever is higher, which shall be creditable against the output tax.

Transitional input tax credit operates to benefit newly VAT-registered persons, whether or not they previously paid taxes in the acquisitions of their beginning inventory of goods, materials and supplies. During the period of transition from non-VAT to VAT status, the transitional input tax credit serves to alleviate the impact of the VAT on the taxpayer.Io6 As there is no showing that the input taxes claimed are transitional, petitioner has complied with the sixth requisite for the grant of an input VAT refund. Seventh requisite: A portion of the input taxes being claimed was due or paid. Anent the seventh requisite, petitioner must prove that the input taxes claimed for CY 2020 are actually due or paid, in accordance with Section llO(A) of the NIRC of 1997, as amended, which provides that: 106 SEC. 110. Tax Credits.-v Fort Bomfacio Development Co1poration v. Commissioner of Internal Revenue, eta!., G.R. Nos. 158885 & 170680, April2, 2009 [Per J. Tinga, En Bane].

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

(A) Creditable input Tax. -

(1) Any input tax evidenced by a VAT invoice or official receipt issued in accordance with Section 113 hereof on the following transactions shall be creditable against output tax:

(a) Purchase or importation of goods:

(i) For sale; or (ii) For conversion into or intended to form part of a finished product for sale including packaging materials; or (iii) For use as supplies in the course of business; or (iv) For use as materials supplied in the sale of service; or

(v) For use in trade or business for which deduction for depreciation or amortization is allowed under this Code.

(b) Purchase of services on which a value-added tax has actually been paid.

(2) The input tax on domestic purchase or importation of goods or properties by a VAT-registered person shall be creditable:

(a) To the purchaser upon consummation of sale and on importation of goods or properties; and Provided, That the input tax on goods purchased or imported in a calendar month for use in trade or business for which deduction for depreciation is allowed under this Code, shall be spread evenly over the month of acquisition and the fifty-nine (59) succeeding months if the aggregate acquisition cost for such goods, excluding the VAT component thereof, exceeds One million pesos (P1,000,000): Provided, however, That if the estimated useful life of the capital good is less than five (5) years, as used for depreciation purposes, then the input VAT shall be spread over such a shorter period: Provided, further, That the amortization of the input VAT shall only be allowed until December 31, 2021 after which taxpayers with unutilized input VAT on capital goods purchased or imported shall be allowed to apply the same as scheduled until fully utilized; Provided, finally, That in the case of purchase of services, lease or use of properties, the input tax shall be creditable to the purchaser, lessee, or licensee upon payment of the compensation, rental, royalty or fee." v Manulife Data Services, Inc. v. Commissioner of Internal Revenue The above provision is implemented by Sections 4.110-1 to 4.110-3 of RR No. 16-2005, as amended by RR No. 13-2018, to wit:

SECTION. 4.110-1. Credits for Input Tax.- ... Any input tax on the following transactions evidenced by a VAT invoice or official receipt issued by a VAT-registered person in accordance with Sees. 113 and 237 of the Tax Code shall be creditable against the output tax:

(a) Purchase or importation of goods ( 1) For sale;

(2) For conversion into or intended to form part of a finished product for sale, including packaging materials; or (3) For use as supplies in the course of business; or

(4) For use as raw materials supplied in the sale of services; or

(5) For use in trade or business for which deduction or depreciation or amortization is allowed under the Tax Code,

(b) Purchase of real properties for which a VAT has actually been paid;

(c) Purchases of services in which a VAT has actually been paid;

SECTION 4.110-2. Persons Who Can Avail of the Input Tax Credit. -The input tax credit on importation of goods or local purchases of goods, properties or services by a VAT- registered person shall be creditable:

(b) To the purchaser of the domestic goods or properties upon consummation of the sale; or

(c) To the purchaser of services or the lessee or licensee upon payment of the compensation, rental, royalty or fee. SECTION 4.110-3. Claim for Input Tax on Depreciable Goods.- Where a VAT-registered person purchases or imports • _ / capital goods, which are depreciable assets for income tax 'tJ" Manulife Data Services, Inc. v. Commissioner of Internal Revenue purposes, the aggregate acquisition cost of which (exclusive of VAT) in a calendar month exceeds One Million Pesos (Pl,OOO,OOO.OO), regardless of the acquisition cost of each capital good, shall be claimed as credit against output tax in the following manner:

(a) If the estimated useful life of a capital good is five (5) years or more -The input tax shall be spread evenly over a period of sixty (60) months and the claim for input tax credit will commence in the calendar month when the capital good is acquired. The total input taxes on purchases or importations of this type of capital goods shall be divided by 60 and the quotient will be the amount to be claimed monthly.

(b) If the estimated useful life of a capital good is less than five (5) years -The input tax shall be spread evenly on a monthly basis by dividing the input tax by the actual number of months comprising the estimated useful life of the capital good. The claim for input tax credit shall commence in the calendar month that the capital goods were acquired. Where the aggregate acquisition cost (exclusive of VAT) of the existing or finished depreciable capital goods purchased or imported during any calendar month does not exceed One million pesos (Pl ,000,000.00), the total input taxes will be allowable as credit against output tax in the month of acquisition.

Capital goods or properties refers to goods or properties with estimated useful life greater than one (1) year and which are treated as depreciable assets under Sec. 34(F) of the Tax Code, used directly or indirectly in the production or sale of taxable goods or services. The aggregate acquisition cost of a depreciable asset in any calendar month refers to the total price, excluding the VAT, agreed upon for one or more assets acquired and not on the payments actually made during the calendar month. Thus, an asset acquired on installment for an acquisition cost of more than Pl,OOO,OOO.OO, excluding the VAT, will be subject to the amortization of input tax despite the fact that the monthly payments/installments may not exceed Pl ,000,000.00.

(c) The amortization of the input VAT shall only be allowed until December 31, 2021 after which taxpayers with unutilized input VAT on capital goods purchased or imported shall be allowed to apply the same as scheduled until fully utilized: xxx." y Manulife Data Services, Inc. v. Commissioner of Internal Revenue Further, Section 4.110-8 of RR No. 16-2005 provides for the substantiation requirements of input tax credits on purchases of goods, properties, and services as follows: SEC. 4.110-8. Substantiation of Input Tax Credits.-

(a) Input taxes for the importation of goods or the domestic purchase of goods, properties or services is made in the course of trade or business, whether such input taxes shall be credited against zero-rated sale, non-zero-rated sales, or subjected to the 5% Final Withholding VAT, must be substantiated and supported by the following documents, and must be reported in the information returns required to be submitted to the Bureau:

(2) For the domestic purchase of goods and properties - invoice showing the information required under Sees. 113 and 237 of the Tax Code.

(4) For the purchase of services- official receipt showing the information required under Sees. 113 and 237 of the Tax Code.

A cash register machine tape issued to a registered buyer shall constitute valid proof of substantiation of tax credit only if it shows the information required under Sees. 113 and 237 of the Tax Code. Verily, in order to be entitled to input tax credits, the input VAT must be evidenced by VAT invoices (for domestic purchases of goods) or ORs (for domestic purchases of services), issued in accordance with the invoicing requirements under Section 113(A) and (B), 237 and 238 of the NIRC of 1997, as amended, as implemented by Section 4.113-1(A) and (B) of RR No. 16- 2005.

In its Quarterly Value-Added Tax Returns for CY 2020, petitioner reported input taxes aggregating to P159,480,669.23, out of which P147,008,789.13 107 is the subject of the present claim foe cefund, as shown bdow' ~ 107 Petitioner's claim per Petition for Review is P\47,008,789.15 but the actual excess input VAT per Quarterly r'a/ue- Added Tax Returns amounts to P\47.008. 789.13.

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

1st Quarter!08 274 Ouarter!09 37¢ Quarter! 0 4th Quarter!!! Total Hapat Tax Deferred on Capital Goods Exceeding P1Million fromm Previous Quarter P34,878,848.48 | P37,107,476,30 Add: Input Tax on Current Purchase of Capital Goods exceeding P1 Million 6,684 ,012.98 18,686,316.21 17,134,055.35 14,880,649.75 57,385,034.29 Less: Input Tax on Purchase of Capital Goods exceeding P1Million deferred for the succeeding period 37,107,476.30 50,348 ,242.67 61,720,148.08 Current Input Taxes:

On Purchase of Capital Goods not exceeding P1 Million P39,131.78 P183,247.19 P313,194,.40 P311,385,36 On Domestic P50,348,242.70 | P61,720,147.86 | P184,054,715.34 69,935,363.29 P 6,665,434.32 219,111,230.34 P22,328,519.29 Purchases of Goods Other than Capital Goods 2,174,884.46 1,134,107.67 1,328,946.77 1,576,598.58 6,214,537.48 On Domestic Purchase of Services 8 445,842.52 32,978 ,272.33 23,076,158.55 65,590,380.33 130,090,653.73 Total Current Input Taxes P10,659,858.76 | P34,295,627.19 | P24,718,299.72 | P67,478,364.27 | P137,152,149.94 Total Input Taxes for the period P15,115,243.92 | P39,741,177.03 | P30,480,449.69 | P74, ee O86 92 | 798.59 | P159,480,669.23 Less: Output VAT 3,371,504.09 1,782,446.21 4,038,832.88 | _ 3,279,096.92 | 12,471,880.10 Excess Input VAT P11,743,739.83 | P26,441,616.81 | P70,86 7 | F147,008,789.13 In support of its reported input VAT, petitioner submitted the Schedule of Local Purchases with Input Tax, !'* ORs, invoices, and other related documents,!!5 which were examined by the Court-Commissioned ICPA, Mr. Garry S. Pagaspas.

Based on the findings of the ICPA, P25,078,432.62 of the claimed input VAT is disallowed for failure to meet the substantiation and invoicing requirements, viz:

ICPA Table | Ref./ ICPA ICPA Findings Exhibit No.

Input VAT on purchases of services and goods other than capital goods:

34 / “P-58”

Input VAT Sales Invoices (SI) and/or Official Receipts provided were Photocopies P 2,934,537.53 | 08 ICPA Exhibit "P-11", USB (Exhibit “P-41-b”).

109 ICPA Exhibit “P-12°, USB (Exhibit *P-41-b”).

"19 ICPA Exhibit “P-13-a", USB (Exhibit “P-41-b™).

Nl JCPA Exhibit “P-14", USB (Exhibit “P-41-b”).

2 CPA Exhibits “P-25" to “P-28", USB (Exhibit “P-41-b”).

M3 ICPA Exhibits “P-54-Q1-a” to “P-54-Q4-fo”, “P-55-Q3-a", “P-56-Q1-a" to “P-56-Q4-c", “P-57-Q2-a™ to “P-57- Q4-e". *P-58-Q]-a™ to “P-58-Q4-k", “P-59-Q1-a” to “P-59-Q2-b”, “P-60-Q1-a" to “P-60-Q4-c”, “P-61-QI-a” to “P-61-Q4-m™, *P-62-Q3-a" to “P-62-Q4-d". “P-63-Q2-a™ to *P-63-Q4-b”, “P-64-Q1-a™ to “P-64-Q4-j", “P-65-Q1- a” to “P-65-Q4-ai". “P-66-Q 1-a” to *P-66-Q1-d”, “P-69-Q1” to “P-69-Q4”", “P-70-Q2” to “P-70-Q4”, “P-71-Q3” to “P-71-Q4", “P-72-QI” to “P-72-Q4", “P-73-Q3-a” to “P-73-Q4-e”, “P-74-a" and “P-75-Q1” to “P-75-Q4” (except for “P-54-Q3-cx™ and “P-63-Q2-b”. which were denied admission: Refer to Resolution dated March 20, 2024, Docket, at p. 601.). USB (Exhibit “P-41-b”).

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Out of Period Requirements 14

SMS CEBU INC

VOYG TRANSPORT

SERVICES INC

VOYG TRANSPORT SUPERIOR MAINTENANCE SERVICES VOYG TRANSPORT

SERVICES INC

COLLABERA TECHNOLOGIES PRIVATE

SAVOY HOTEL

MACTAN INC

WELLTHY

SOLUTIONS INC

WELLTHY

SOLUTIONS INC

WELLTHY

SOLUTIONS INC

WELLTHY

SOLUTIONS INC

SANTA FE

MOVING RELOCATION SERVICES PHILS.

INC. 3516 P851,062.17 |_| VAT amount not shown separatel Not Validated Countersig Alteration without countersign 38 / “P-62” 585,168.28 No TIN Indicated 39 / “P-63” 219,974.78 Incorrect Substantiation No SI/OR Provided Multiple Violation of Invoicing Less: Adjustment! !4 “P-59”

36 _/ “P-60”

“P_6 ] ”»

42 / “P-66”

Subtotal 812,995.88 242,972.30 4,261,356.43 40 / “P-64” 697,472.24 41 / “P-65” 14,795,795.88 12,791.03 P24,563,064.35 128,795.65 Details of /nput VAT included in ICPA findings but not part of the claimed input VAT per schedule: Per Schedule of Local Purchases with Input Tax (ICPA Exhibits “P-25” to “P-28” 2972

SERVICES INC 2968

287603 16513 23394 23395 | 40/“P-64" 600.00 Per ICPA Findings ICPA Table Ref/ Inv./ ICPA OR Exhibit Input Tax {Page Supplier Name No. No. a ref,

ACCENT MICRO

TECHNOLOGIES INC 237012 | 35/“P-59" | P182.405.06 | 10 VIVENTIS

SEARCH ASIA

INC 2531 36/ “P-60" 15,754.20 | 17 37/ “P-61" 46,177.35 37/“P-61" 87,893.02 | 17 37/ “P-61" 46.483.19 | 17 37/ “P-61~* 397,808.68 37/“P-61" 4,771.57 38/ “P-62” 20,729.27 40/ “P-64" 42,269.43 40/ “P-64" 1,800.00 11 Input Tax (P76,381.27 - 1,504.10 - 648.21 + b 33,058.45) P 107,287.41 (P1,317.23 + 1,202.60) 2,519.83 (P22,072.60 + 23,787.07) 45,859.67 (P2,835.47 + 17,627.16 + 11,759.48 + (P11,759.48 + 9,797.24 + 17,627.16 + (P26.945.38 + 1,091.40 + 21,693.52 + 26.517.39 + 1,091.40 + 1,091.40 + 2,290.80 + 720.60 + 17,891.73 + 720.60 + 720.60 + 89,092.38 + 75.985.20 + 2,290.80 + 73,814.50 + 2,290.80 + 23,540.26 + 9,797.24 + 1,662.00 + 17,627.16 + 9,797.24 + 11,759.48) 82,865.23 3,671.62} 42,855.50 19,960.71) 387,749.47 Input Tax not part of the claim P_ 75,117.65 13,234.37 317.68 5,027.79 3,627.69 10,059,211 4,597.57 (P3,878.08 + 5,633.78) 9,511.86 42,066.70 (1,800.00) 40/ “P-64" 600.00 40/ “P-64" 1,800.00 1,970.40 180.00 11,217.41 3,600.00 1,200.00 3,600.00 (P376.07 + 1,383.21) 1,759.28 P 722,266.52 P128,795.65 1,200.00 211.12 Manulife Data Services, Inc. v. Commissioner of Internal Revenue Input VAT included in !CPA findings but not part of the claimed input VAT per schedule Net P24,434,268. 70 Input VAT on purchases of capital goods not exceeding P1 million:

No SI but provided with Collection Receipts

47 I "P-71"

28,604.73 Subtotal p 28,604.73 Amortized input VAT on purchases of capital goods exceeding P1 million from current purchases: SI provided was _]J_hotocopy

50 I "P-74"

43,134.30 No SI but provided with Collection Receipts

51 I "P-75"

572,424.89 Subtotal p 615,559.19 Total P25,078,432.62 In addition to the above disallowances, further verification of the ICPA schedules and the submitted documents reveals that the input VAT in the amount of'P63,602,980.12 is likewise disallowed for the reasons stated hereunder, to wit: ICPA Exhibit Invoice/ Input VAT No.

Supplier Name OR No.

Amount Input VAT on purchases of goods/services supported by VAT invoices/DRs but without the notation "THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE AUTHORITY TO PRINT (ATP)/PERMIT TO USE (PTU)" as required under RMO No. 12-2013 and RR No. 10-2015 "P-54-Q 1-e"

PHILIPPINE VENDING CORPORATION

56689 I' 10,625.51 "P-54-Q 1-f'

PHILIPPINE VENDING CORPORATION

56641 3,980.05 "P-54-Q 1-bd"

UP NORTH PROPERTY HOLDINGS INC

25732 163,296.88 "P-54-Q 1-bt"

PHILIPPINE VENDING CORPORATION

58205 691.72 "P-54-Q 1-bu"

PHILIPPINE VENDING CORPORATION

57396 8,884.90 "P-54-Ql-bv"

PHILIPPINE VENDING CORPORATION

58116 5,140.50 "P-54-Ql-bw"

PHILIPPINE VENDING CORPORATION

58115 4,150.31 "P-54-Q 1-bx"

PHILIPPINE VENDING CORPORATION

57757 3,980.05 "P-54-Q 1-by"

PHILIPPINE VENDING CORPORATION

57756 10,970.25 "P-54-Q 1-de"

UP NORTH PROPERTY HOLDINGS INC

25922 158,763.14 "P-54-Q3-dp"

PHILIPPINE VENDING CORPORATION

61774 23,562.63 "P-54-Q3-dq"

PHILIPPINE VENDING CORPORATION

62274 1,218.82 "P-54-Q4-by"

PHILIPPINE VENDING CORPORATION

63307 1,218.82 "P-69-Q4-b"

POWER MAC CENTER INC

A421626 34,692.86 "P-69-Q4-c"

POWER MAC CENTER INC

A427267 38,162.14 Input VAT on purchase of goods supported by VAT invoice but dated outside the period of claim "P-54-Q3-n"

CARE 1ST CORPORATION

55926 11,237.14 Input VAT on purchases of goods supported by VAT invoices but without indication of the BIR's ATP/PTU 1400- "P-54-Q4-i"

MAGNOLIA INC

14037202 2,826.51 1400- "P-54-Q4-i"

MAGNOLIA INC

14053777 8,832.86 "P-54-Q4-bw" NETTDRIVEN CORP.

2204 121,741.96 Input VAT on purchases of goods supported by VAT invoices but without the notation "THIS INVOICE SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE PERMIT TO USE" and the VAT amounts are unreadable "P-54-Q4-k"

PHILIPPINE VENDING CORPORATION

62640 1,218.82 "P-54-04-dn"

PHILIPPINE VENDING CORPORATION

63832 1 ,4'!8.82 v

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Amortized input VAT on current purchase of goods (classified as capital goods exceeding P 1 million) suooorted bu Non-VAT invoice "P-72-Q2-d" NETTDRIVEN CORP.

0456 694,381.59 115 Input VAT on purchases of services supported by VAT ORs but without the notation "THIS RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE PERMIT TO USE", the signature of the cashier and indication of the nature of service and/or not issued in petitioner's registered name "P-54-Q2-r"

SGV AND CO

MK00134254 43,382.39 "P-54-Q2-s"

SGV AND CO

MK00134253 3,564.00 "P-54-Q2-t"

SGV AND CO

MK00134255 2,538.68 "P-54-Q2-u"

SGV AND CO

MK00134256 2,538.68 Input VAT on purchases of services supported by VAT ORs but without the notation "THIS RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE PERMIT TO USE" and indication of the nature of service "P-54-Q l-en"

MAXICARE HEALTHCARE CORP

3000083434 64,671.39 "P-54-Q l-eo"

MAXICARE HEALTHCARE CORP

3000083438 18,904.73 "P-54-Q l-eo"

MAXICARE HEALTHCARE CORP

3000084888 436,677.45 Input VAT on purchases of services supported by VAT ORs but without the TIN or address of oetitioner andjor indication of the nature of service

FIRST COMMONWEALTH HOTEL

"P-54-Ql-u" CORPORATION 37665 19,417.92 116 "P-54-Q 1-z"

MAXICARE HEALTH CARE CORP

3000077724 299,128.87 "P-54-Q 1-aa"

MAXICARE HEALTHCARE CORP

3000077725 1,576.91

SANTA FE MOVING AND RELOCATION

"P-54-Q 1-aq" SERVICES PHILS. INC.

26921 13,071.43 "P-54-Q l-ed"

ARTEMISPLUS EXPRESS INC

132695 7,260.00 "P-54-Q 1-cl"

HBO+EMTB PHILIPPINES INC

2774 48,865.72

NISCE MAMURIC GUINTO RIVERA AND

"P-54-Q l-ea"

ALCANTARA LAW OFFICE

16803 15,600.00

NISCE MAMURIC GUINTO RIVERA AND

"P-54-Q 1-cr"

ALCANTARA LAW OFFICE

16770 15,600.00 "P-54-Q l-et"

REYES TACANDONG AND CO

39661 38,591.14 "P-54-Q l-eu"

ROXACO VANGUARD HOTEL CORP

47852 4,349.73

SANTA FE MOVING AND RELOCATION

"P-54-Q l-ev" SERVICES PHILS. INC.

26901 7,500.00 VERTIV (PHILIPPINES) INC (formerly known as EMERSON NETWORK POWER (PHILIPPINES), "P-54-Q 1-dz" INC.\ 8195 10,714.29 "P-54-Q l-ed"

ISS FACILITY SERVICES PHILS INC

141717 98,498.17 "P-54-Q 1-ef''

MAXICARE HEALTHCARE CORP

3000091851 981,118.91 "P-54-Q l-ee:"

MAXICARE HEALTHCARE CORP

3000091852 8,919.07 II ;

Computation of amortized inout VAT: Amortized input for znd quarter (allowable input per ICPA Table 48/ICPA Exh ... P-72") [total input VAT ofP3, 703,368.57-:- estimated useful life of 48 =monthly amortization ofP77, 153.51 x 3 months claimedl 1'231 ,460.53 Amortized innut for J'd and 41h auarters rmonthlv amortization ofP77.153.5\ x 6 monthsl 462.921.06 Total Amortized In out VAT for the oeriod P694,38k59 6 Total of!'672.00. !'6.384.00. !'2.016.00. 1'5.712.00, !'1.508.16 and !'3, 125.76 input VAT claimed per schedule [p.2.v !CPA Exhibits ··P-25"" to ··r-2s··. USB (Exhibit "'P-41-b'")]. II Manulife Data Services, Inc. v. Commissioner of Internal Revenue

NISCE MAMURIC GUINTO RIVERA AND

"P-54-Q l-ei"

ALCANTARA LAW OFFICE

16852 "P-54-Q 1-el"

REYES TACANDONG AND CO

42190 "P-54-Q 1-eq"

TNT EXP WORLDWIDE (PHILS) INC

1182976 "P-54-Q 1-er"

TNT EXP WORLDWIDE (PHILS)INC

1178441 "P-54-Q 1-es"

TNT EXP WORLDWIDE (PHILS) INC

1178442

COLLABERA TECHNOLOGIES PRIVATE

"P-54-Q2-g"

LIMITED INC

15542 "P-54-Q2-h"

DXC TECHNOLOGY PHILIPPINES INC

151 "P-54-Q2-k"

ISS FACILITY SERVICES PHILS INC

142527 "P-54-Q2-n"

MAXICARE HEALTH CARE CORP

3000092725 "P-54-Q2-o"

MAXICARE HEALTHCARE CORP

3000093754 "P-54-Q2-p"

MAXICARE HEALTHCARE CORP

3000093756 VERTIV (PHILIPPINES) INC (formerly known as EMERSON NETWORK POWER (PHILIPPINES), "P-54-Q2-af' INC.)

8186 "P-54-Q2-ah"

ISS FACILITY SERVICES PHILS INC

142747 3000096888/ "P-54-Q2-ai"

MAXICARE HEALTHCARE CORP

3000096889 "P-54-Q2-ai"

MAXICARE HEALTHCARE CORP

3000096764

COLLABERA TECHNOLOGIES PRIVATE

"P-54-Q2-ar"

LIMITED INC

15935 "P-54-Q2-as"

DXC TECHNOLOGY PHILIPPINES INC

152 "P-54-Q2-ay"

MAXICARE HEALTHCARE CORP

3000111186 "P-54-Q2-az"

MAXICARE HEALTH CARE CORP

3000111187

NISCE MAMURIC GUINTO RIVERA AND

"P-54-Q2-bd"

ALCANTARA LAW OFFICE

16904

SANTA FE MOVING AND RELOCATION

"P-54-Q2-be" SERVICES PHILS. INC.

27166 "P-54-Q2-bl"

MAXICARE HEALTHCARE CORP

3000108661 "P-54-Q2-bo"

VOYG TRANSPORT SERVICES INC

2885

COLLABERA TECHNOLOGIES PRIVATE

"P-54-Q3-ad"

LIMITED INC

16172

COLLABERA TECHNOLOGIES PRIVATE

"P-54-Q3-ae"

LIMITED INC

16242 "P-54-Q3-ai"

FP PHILIPPINES INC

1113

GREAT YEAR INDUSTRIES CORPORATION

"P-54-Q3-ai" MANILA 11146 "P-54-Q3-al"

JOHNCLEMENTS RECRUITMENT INC

130343 "P-54-Q3-an"

MAXICARE HEALTHCARE CORP

3000114079 "P-54-Q3-ao"

MAXICARE HEALTHCARE CORP

3000114080 "P-54-Q3-ar"

NEZDA TECHNOLOGIES INC

4330 "P-54-Q3-bk"

TOTAL VENTURES INC

6716 "P-54-Q3-bz"

CASA MEDICA INCORPORATED

793168

COLLABERA TECHNOLOGIES PRIVATE

"P-54-Q3-cb"

LIMITED INC

16453 "P-54-Q3-cf'

FUJI XEROX PHILIPPINES INC

437780 "P-54-Q3-ch"

ISS FACILITY SERVICES PHILS INC

143698 "P-54-Q3-ck"

NEZDA TECHNOLOGIES INC

4332 "P-54-Q3-cr"

PSA PHILIPPINES CONSULTANCY

517 600.00 27,728.57 779.92 685.42 8,172.37 12,781.36117 134,135.51 194,235.08 409,730.47 352,067.91 6,806.16 10,714.29 90,310.01 352,092.32 298.22 7,115.12 134,201.73 89,149.24 8,319.37 27,505.00 1,285.71 406,037.14 21,556.72118 19,084.73119 3,878.62 6,172.62 83,111.00 48,000.00 211,499.58 6,319.08 4,800.00 85,714.29 7,869.64 3,703.32 27,903.94 88,797.96 4,800.00 4,744.81 1" Total of!'!. 906.41, !'1,906.41. 1'3. 719.53 and 1'5.249.0 I input VAT claimed per schedule [p.l 0. !CPA Exhibits "P- 25" to "P-28". USIJ (Exhibit "P-41-b")]. 118 Total of1'11.759.48 and 1'9.797.24 input VAT claimed per schedule [p. 13. JCPA Exhibits "P-25'' to "P-28". USB (Exhibit "P-41-b")j.

110 Total of 1'4.526.27. 1'7,352.36 and 1'7.206.1 0 input VAT claimed per schedule [p.J5. !CPA Exhibits "P-25" to 1·J 28'', USB (Exhibit "P-41-b")]. ~~

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

"P-54-Q3-ee"

ISS FACILITY SERVICES PHILS INC

144098 "P-54-Q3-ef'

JOHNCLEMENTS RECRUITMENT INC

130456 "P-54-Q3-eg"

JOHNCLEMENTS RECRUITMENT INC

130457 "P-54-Q3-eh"

MAXICARE HEALTH CARE CORP

3000128265

NISCE MAMURIC GUINTO RIVERA AND

"P-54-Q3-em"

ALCANTARA LAW OFFICE

17157

NISCE MAMURIC GUINTO RIVERA AND

"P-54-Q3-en"

ALCANTARA LAW OFFICE

17163

NISCE MAMURIC GUINTO RIVERA AND

"P-54-Q3-eo"

ALCANTARA LAW OFFICE

17310

NISCE MAMURIC GUINTO RIVERA AND

"P-54-Q3-ep"

ALCANTARA LAW OFFICE

17182 "P-54-Q3-ff'

POWEREDGE SOLUTIONS PHILS INC

3912 "P-54-Q3-fi"

SUPERIOR MAINTENANCE SERVICES

287637 "P-54-Q4-m"

ATLANTICA FIRE SAFETY SYSTEMS INC

8714

COLLABERA TECHNOLOGIES PRIVATE

"P-54-Q4-u"

LIMITED INC

17054 "P-54-Q4-ad"

ISS FACILITY SERVICES PHILS INC

144677 "P-54-Q4-ae"

JOHNCLEMENTS RECRUITMENT INC

130458 "P-54-Q4-af'

MAGNUS EVENTUS INC

1181A "P-54-Q4-ag"

MAXICARE HEALTH CARE CORP

3000138954 "P-54-Q4-ah"

MAXICARE HEALTH CARE CORP

3000138955 "P-54-Q4-ai"

MAXICARE HEALTHCARE CORP

3000138956 "P-54-Q4-aj"

MAXICARE HEALTHCARE CORP

3000138957 "P-54-Q4-ak"

MAXICARE HEALTHCARE CORP

3000145262 "P-54-Q4-al"

NEZDA TECHNOLOGIES INC

4340 "P-54-Q4-am"

NEZDA TECHNOLOGIES INC

4342

NISCE MAMURIC GUINTO RIVERA AND

"P-54-Q4-an"

ALCANTARA LAW OFFICE

17307 "P-54-Q4-ao"

PSA PHILIPPINES CONSULTANCY

518 "P-54-Q4-av"

SUPERIOR MAINTENANCE SERVICES

289513 "P-54-Q4-ax"

TNT EXP WORLDWIDE (PHILS) INC

1187793 "P-54-Q4-ay"

TOTAL VENTURES INC

6700 "P-54-Q4-be"

VIVENTIS INTERIM INC

2518 "P-54-Q4-bf'

VIVENTIS INTERIM INC

2519 "P-54-Q4-ca"

CASA MEDICA INCORPORATED

795976 "P-54-Q4-cf'

ISS FACILITY SERVICES PHILS INC

145134 "P-54-Q4-ch"

LEARNINGLITZ INC

21588 "P-54-Q4-ci"

MAGNUS EVENTUS INC

1188A "P-54-Q4-cj"

MAXICARE HEALTHCARE CORP

3000159817 "P-54-Q4-ck"

NEZDA TECHNOLOGIES INC

4350

NISCE MAMURIC GUINTO RIVERA AND

"P-54-Q4-cl'

ALCANTARA LAW OFFICE

17336

NISCE MAMURIC GUINTO RIVERA AND

"P-54-Q4-cm"

ALCANTARA LAW OFFICE

17350 "P-54-Q4-cn"

PSA PHILIPPINES CONSULTANCY

520 86,990.31 48,000.00 46,780.39 75,210.50 1,800.00 2,495.00 600.00 4,961.78 3,969.00 119,716.01 7,767.85 10,827.74120 90,014.81 19,200.00 6,964.29 8,210,197.58 250,440.75 24,866,024.77 767,765.30 441,964.23 38,858.00 7,200.00 8,400.00 2,328.18 115,170.10121 5,094.92 1,745,749.61 2,550.38 672.29 1,044.64 84,553.24 2,400.00 6,240.00 441,964.23 2,400.00 600.00 600.00 2,311.03 120 Total of N.680.00. 1'4.059.98 and 1'2.087.76 input VAT claimed per schedule [p.23. JCPA Exhibits -P-25" to-p_ 28". USB (Exhibit "P-41-b")]. ~ 121 Total of1'720.60, 1'1.091.40. 1'21.115.1. 3, 1'70, 755.33. 1'19,196.84 and 1'2.290.80 input VAT claimed pe sc dule [p.25.1CPA Exhibits "P-25" to "P-28". USB (Exhibit "P-41-b'')].

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Kinnear nnn nnn nnn nn nn enn nnn nnn nn ene nt tn nn ncn tee nn enn x “P-54-Q4-ct” TECHCAREERS INC. 1576 54,820.80 “P-54-Q4-cx” _| VOYG TRANSPORT SERVICES INC 3029 154,424.71 “P-54-Q4-cy” | VOYG TRANSPORT SERVICES INC 3030 335,779.31

BUSINESS PROCESS OUTSOURCING

“P-54-04-eb” | INTERNATIONAL INC 116064 83,706.00 “P-54-04-ej” JOHNCLEMENTS RECRUITMENT INC 130466 94,560.00 “P-54-04-ek” MAXICARE HEALTHCARE CORP 3000154730 725,646.23 “P-54-Q4-em” _| NET PACIFIC INC 9106 67,394.27

NISCE MAMURIC GUINTO RIVERA AND

“P-54-Q4-en” _| ALCANTARA LAW OFFICE 17423 24,000.00 “P-54-Q4-e0” POWEREDGE SOLUTIONS PHILS INC 4000 3,969.00 | _“P-54-04-eq” PSA PHILIPPINES CONSULTANCY INC 540 2,320,309 “P-54-Q4-fl” VIVENTIS INTERIM INC 2534 672.73 “P-54-Q04-fm” _| VOYG TRANSPORT SERVICES INC 3080 22,982.88 “P-54-Q4-fn” |_| VOYG TRANSPORT SERVICES INC 3081 959,67 1.70122 “P-54-04-fo” VOYG TRANSPORT SERVICES INC 3237 204,313.03 “P-70-I-Q2-a”__| NEXUS TECHNOLOGIES INC 55420 98,392.86 “P-70-Q04-a” IBMS TECHNOLOGY PHILS CORP 5265 64,431.58!23 “P-70-Q4-b” IBMS TECHNOLOGY PHILS CORP 5247 30,019.76 Input VAT on purchases of services supported by VAT ORs but the dates indicated are incomplete and/or without indication of the nature of service “P-54-Q3-dr’” ACCENT MICRO TECHNOLOGIES INC 80359 42,857.14 “P-54-Q4-eh” | ISS FACILITY SERVICES PHILS INC 145424 95,992.22 “P-54-Q4-ei” ISS FACILITY SERVICES PHILS INC 145487 98,019.92 “P-54-Q4-ep” _| PSA PHILIPPINES CONSULTANCY INC 546 2,294.67 “P_54-04-et” P-54-Q1-eq P-54-Q3-ck

RENTOKIL INITIAL (PHILIPPINES) INC

Input VAT on purchase of services supported by VAT OR but the separately indicated and without indication of the nature of service “P-70-Q4-c” DIMENSION DATA PHILIPPINES INC 10664 Input VAT on purchases of services supported by VAT ORs but the VAT amounts reflected therein are less than the amounts per claim (overclaimed input VAT, REYES TACANDONG AND CO (P39,292.80 per “P-54-Q1-ct” claim less P38,591.14 per OR) TNT EXP WORLDWIDE (PHILS) INC (?779.95124 per claim less P779.92 per OR NEZDA TECHNOLOGIES INC (P4,800.10 per claim less P4,800.00 per OR

JOHNCLEMENTS RECRUITMENT INC

P62,640.00!25 per claim less P46,780.39 per OR 31,134.58 input VAT amount was not 46,000.87 333386 39661 701.66 1182976 0.03 130457 15,859.61 122 Total of P4,920.00. P3.911.61, P71,400.00, P25.92, P112,200.00, P11,654.53, P39.84, 122,400.00, P10,429.30, P2.880.00. £87.84, P20,400,00, 869.43, P3.722.25, 145.56, P40,800.00, P5,958.00, P12,006.37, P414.24, P 102,000.00, P23,114.73. P10,200,00 and #92.08 input VAT claimed per schedule [p. 33, ICPA Exhibits “P-25” to ~P-28” , USB (Exhibit *P-41-b")).

23 Total of P18.502.71, P3.083.78, P 19,466.17, P4,285.71. P3,244.36 and P15,848.85 input VAT claimed per schedule [p.34. ICPA Exhibits “P-25" to “P-28". USB (Exhibit “P-41-b”)]. 24 Total of P 179.75, P275.87 and P324.33 per schedule [p.8, EKCPA Exhibits “P-25” to “P-28". USB (Exhibit “P-41- b")) 25 Total of P5,400.00, P3,840.00, P5,400.00 and P48,000.00 input VAT claimed per schedule [p. 20. ICPA Exhibits “P25” to “P-28". USB (Exhibit “P-41-b”)}.

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

Korn enn n nn cern nn nn nnn nn nn nr nn nnn nn tn nn nnn nnn nnn nee en cn nen nen nen nnn e eee x

TWO WORLD CTR BLDG ADMIN INC

(P106,401.82!26 per claim less P17,733.64 per “P-54-03-fj” 88,668.18 |p sao4el _| NEZDA TECHNOLOGIES INC (P38,858.40!27 per P-54-04-al claim less P38,858.00 per OR 4340 0,40 «psa-o4-em’ | NET PACIFIC INC (P68,619.62128 per claim less “P-54-Q4-em” | 267,394.27 per OR 9106 1,225.35 |p saoatn _| VOYG TRANSPORT SERVICES INC (P22,982.89 P-54-04-fm per claim less P22,982.88 per OR 3080 0,01 “P-57-Q2-c’” to 1000025145 to “P-57-Q2-i” | UP NORTH PROPERTY HOLDINGS INC 1000025151 “P-57-Q2-)” and | (P4,608,468.75!29 per claim less 1000025154 to “P_57-Q2-m” _ | P4,567,583.88139 per ORs 1000025155 40,884.87 Input VAT on purchases of services supported by documents other than VAT OR ABWCHRO001 “P-56-Ql-a”__| SMART COMMUNICATIONS INC 02871 31,339.84 ABWCHROO001 “P-56-Q1-a”__ | SMART COMMUNICATIONS INC 02871 17,981.03 ABWCHRO003 “P-36-Q2-a” SMART COMMUNICATIONS INC 06890 ABWCHROOOS 223,105.62 “P.56-Q3-a” _| SMART COMMUNICATIONS INC 27623 158,544.85 ABWCHROO07 “P_56-04-a” | SMART COMMUNICATIONS INC 31854 254,540.35 ABWCHRO008 “P.56-04-b” | SMART COMMUNICATIONS INC 66503 189,847.90 pse-oae | ABWCHRO009 “P-56-04-c” | SMART COMMUNICATIONS INC 81121 181,259.72 Input VAT on purchase of services supported by document which was denied admission by the Court Plimillion)'3! supported by VAT ORs but without indication of the nature of service “P-54-Q3-cx” _| UP NORTH PROPERTY HOLDINGS INC 26383 65,404.99 Amortized input VAT on current purchases of services (classified as capital goods exceeding “P-73-Q3-a” HBO+EMTB PHILIPPINES INC 3001 12,267.36132 “P-73-Q3-c” CWC INTERNATIONAL CORPORATION 2296 33,750.00183 “P-73-04-a” IBMS TECHNOLOGY PHILS CORP 5225 9,353.85 26 Total of 105,617.26 and P784.56 input VAT claimed per schedule [p.21, ICPA Exhibits “P-25” to “P-28", USB (Exhibit “P-41-b")].

27 Total of 4,800.00, P7.927.20. £9,331.20 and P16,800.00 per schedule [p.24, ICPA Exhibits “P-25” to “P-28", USB (Exhibit “P-41-b”)].

28 Total of P16,066.17 and P52.553.45 input VAT claimed per schedule [p.31, [CPA Exhibits “P-25" to *P-28", USB (Exhibit “P-4-b")].

29 Total of P189,607.86, 551,556.31, P3.786,634.49 and P80.670.09 per schedule {p.f3. ICPA Exhibits *P-25* to “P- 28", USB (Exhibit “P-41-b”)}.

130° Total of P847.144.08, P1,006.720.17, P755,040.13, P251,680.04, P251,680.04, P503,360.09, P251,680.04, P179,148.51 and £521,130.78. 31 For details, see ICPA Table 49/ICPA Exhibit “P-73", USB (Exhibit “P-41-b”). ‘32 Computation of amortized input VAT: Amortized input for 3’ quarter (allowable input per ICPA Table 49/ICPA Exh. “P-73”) [total input VAT of P122,673.60 = estimated useful life of 66 = monthly amortization of P2.044.36 x 3 months claimed] P 6,133.68 Amortized input for 4" quarter [monthly amortization of 2,044.56 x 3 months Total amortized input VAT for the period Computation of amortized input VAT: Amortized input for 3 quarter (allowable input per [CPA Table 49/ICPA Exh, “P-73") [total input VAT of P405.000.00 = estimated useful life of 60 = monthly amortization of P6,750.00 x 2 months claimed Amortized input for 4" quarter [monthly amortization of P6,750.00 x 3 months Total amortized input VAT for the period P12,267.36 6,133.68 P13,500.00 20,250.00 PY3,750.00 WY, Manulife Data Services, Inc. v. Commissioner of Internal Revenue "P-73-Q4-d"

IBMS TECHNOLOGY PHILS CORP

5265 "P-73-Q4-e"

IBMS TECHNOLOGY PHILS CORP

5264 1,584.88 831.45 428.57 2,494.36 Input VAT on purchases supported by documents with notation "THIS DOCUMENT IS NOT VALID

FOR CLAIMING INPUT TAXES"

CREATIVE CONCEPTS MARKETING GROUP

"P-54-Q 1-bh" INC.

222 162.00

CREATIVE CONCEPTS MARKETING GROUP

"P-54-Q 1-bi" INC.

220 2,430.00

CREATIVE CONCEPTS MARKETING GROUP

"P-54-Q 1-bi" INC.

221 81.00 "P-54-Q l-ea"

ULTRA MODULAR CONCEPTS INC

1883 2,779.20 Input VAT without supporting documents -

ACCENT MICRO TECHNOLOGIES INC

240111 48,060.58

COLLABERA TECHNOLOGIES PRIVATE

-

LIMITED INC

60851; 16213 7,037.92 -

CARE 1ST CORPORATION

59250 4,906.04 Amortized input VAT on purchases of capital - goods exceeding 1' 1 million from prior period 15,518,223.92134 134 c amputation ot amortized input VAT on purchases of capital goods exceeding PI m1 lion rom prior 'I f eno d Total amortized input VAT for theperiod per Quarterly VAT Returns 1'22.328.519.29 Less: Amortized input VAT on purchases of capital goods exceeding PI million from current purchases (breakdown as shown bela\'.:) 6.810.295.37 Amortized input VAT on purchases of capital goods exceeding PI million from prior period Pl5,518,223.92 Brea kd own ofammiizcd input VAT on purchases of capital goods exceeding PI million from current pure h ases: Allowable Input Tax for Allon·able amortized input VAT for the Per Schedule of Local Purchases with Input Tax the period per ICPA (fully quarters succeeding the quarter of purchase (I CPA Exhibits "1~-25" to "P-28" accounted by ICPA) or claim Total Recogniz Current amortized ed Life Portion

I CPA

Amortized input for (in (in Table/ input VAT for current Registered months) months) 'lonthly

I CPA

the quarter of purchases Name of Input Tax Remaini Est. Life amort.

Exhibit purchase or 2"d Quarter yo~ Quarter 41h Quarter during the Supplier Ia I ng life lbl lc ~ a/bl Reference claim lc x 3 mos. I lc x 3 mos.l Jc x 3 mos.J ~riod Current purchases (or the J'f quarter

ACCENT MICRO

TECHNOLOGIES 48 INC 1'1,809,709.02 45 48 [' 37,702.27 "P-72" p 113,106.8\ 1'113,\06.81 p 1\3,106.81 p I 13,106 81 p 452,427.24

ACCENT MICRO

TECHNOLOGIES " INC 939,396_92 46 48 19.570.77 "P-72" 39,14L53 58,712.31 58,712.31 58,712.31 2\5,278.46

ACCENT MICRO

TECHNOLOGIES 48 INC I ,384,154.42 47 48 28.1!:16.55 "P-72" 28.836 55 86,509.65 86,509.65 86,509.65 288,365_50

ACCENT MICRO

TECHNOLOGIES INC 2,550,752_70 47 48 53,140.68 5\i "P75" 53,140.68 159,422.04 t59 .. n2 04 159,422.04 531,406_80 .'>uhrowl I' 23.1,225.51 f'-l/i,750.Hl p -1/7, 7J0.81 I' -1!7,750_H/ I' I, -187,-178.00 Current purchases for rite 2"'1 quarter

ACCENT MICRO

TECHNOLOGIES 50 INC 690,148.77 45 48 1--1,378.10 "P-74" p 43,134.30 p 43,134.30 p 43.134.30 P129.402.90

ACCENT MICRO

TECHNOLOGIES 48 INC 2,240,123 13 45 48 46,669.23 "P·72" 140,007 71 140,007 69 140,007.69 420,023.09

ACCENT MICRO

TECHNOLOGIES 48 n..:c 167,840_57 45 48 3,496.68 "'P-72" 10,490.02 10.490 04 10,490.04 31,470.10

ACCENT MICRO

TECHNOLOGIES 48 INC 273,386.81 45 48 5,695.56 "P-72" 17,086.67 17.086.68 17,086.68 51,260.03 DIMENSION DATA 51'

PHILIPPINES INC

801.-'88.99 57 60 13)58.15 "P-75" -'0.074.-'4 40,074.45 40,074.45 120,223.34 DIMENSION DATA 51'

PHILIPPINES INC

2,332,548_54 57 60 38,875.81 "P-75" 116,627.44 116,627.43 116,627.43 349,882.30 \sf

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

48;

77,153.51 | _"P-72" 231,460.53 | 231,460.53 231,460.53 ae 9,385.53 — 5,403.90 694,381.59 25,028.08 5,403.90 14,410.39 104,950.92 279,869.12 104,950.92 84,071.34 84,071.34 20,976.90 20,976.90 55,938.41 206,217.69 206,217.69 | $49,913.86 51,953.67 51,953.67 121,225.23 5,545.05 5,545.05 12,938.45 9,422.52 9,422.52 21,985.88 18,889.02 18,889.02 44,074.38 P 1,127,368.29 NETTDRIVEN CORP 3,703,368.57 45 48

ACCENT MICRO

TECHNOLOGIES 48/

INC 150,168 50 46 48 3,128.51 "P-72" 6,257.02

ACCENT MICRO

TECHNOLOGIES 5]

INC 108,077.87 58 60 1,801.30 “P-75" 3,602.59

ACCENT MICRO

TECHNOLOGIES 48)

INC 1,679,214,77 46 48 34,983.64 "P-72" 69,967.28

ACCENT MICRO

TECHNOLOGIES 48/

INC 1,345,141.60 46 48 28,023.78 "P-72" 56,047.57

ACCENT MICRO

TECHNOLOGIES INC 335,630.56 46 6,992.30 13,984.61

ACCENT MICRO

TECHNOLOGIES INC 3,299,483.17 46 68,739.23 137,478.48

ACCENT MICRO

TECHNOLOGIES Sli INC 831,258.80 d7 48 17,317.89 "P-75" 17,317.89

ACCENT MICRO

TECHNOLOGIES Shi INC 88,720.96 47 48 1,848.35 “P-75" 1,848.35

ACCENT MICRO

TECHNOLOGIES 48"

INC 186,730.03 47 48 3,890.21 "p72" 3,890.21

ACCENT MICRO

TECHNOLOGIES 48!

INC 150,760.24 47 48 3,140.84 "P-72" 3,140.84

ACCENT MICRO

TECHNOLOGIES 48)

INC 302,224.14 47 48 6,296.34 “P-72" 6,296.34 Subtotal P 9I8, 712.29 Current purchases for the 3" quarter

ACCENT MICRO

TECHNOLOGIES 48:

INC 129,130.85 45 48 2,690.23 "P-72" P 8,070.67

ACCENT MICRO

TECHNOLOGIES 48)

INC 97,020.32 45 48 2,021.26 “P-72" 6,063.77

ACCENT MICRO

TECHNOLOGIES 48

INC 225,115.13 45 48 4,689.90 “P-72" 14,069.70 HBO+EMTB 49;

PHILIPPINES INC 122,673.60 57 60 2,044.56 “P-73" IBMS TECHNOLOGY PHILS CORP 197,678.57 57 60 3,294.64 9,883.93 IBMS TECHNOLOGY PHILS CORP 149,661.62 57 60 2,494.36 7,483.08

ACCENT MICRO

TECHNOLOGIES INC TECHNOLOGIES INC 119,451.91 46 CWC INTERNATIONA L_ CORPORATION 405,000.00 58

ACCENT MICRO

TECHNOLOGIES INC 693,278.93 47 TECHNOLOGIES INC 157,116.80 47

ACCENT MICRO

TECHNOLOGIES INC 240,073.25

ACCENT MICRO

TECHNOLOGIES INC 147,532.20

ACCENT MICRO

TECHNOLOGIES INC 2,506 469,88

ACCENT MICRO

TECHNOLOGIES INC 424,923.81

ACCENT MICRO

TECHNOLOGIES INC 2,318,368.25

ACCENT MICRO

TECHNOLOGIES INC 8.377,702.40 423,262.65 | 46 8,817.97 2,488.58 6,750.00 14,443.31 17,635.94 P 1,427,368.29 | P3173, 448.87 P 8,070.69 [| P 16,141.36 6,063.78 12,127.55 14,069.70 28,139.40 6,133.68 6,133.68 12,267.36 9,883.92 19,767.85 4,977.16 13,500.00 | ssn | eae S| 20,250.00 33,750.00 | suas $7,773.24 7,483.08 14,966.16 26,453.91 44,089.85 7465.74 | 14,443.31 9,819.81 13,093.08 5,00) ,53 L 15,004.59 20,006.12 2,448.59 7345.77 9,794 36 $2,218.12 156,654.36 208,872.48 8,852.58 26,557.74 35,410.32 48,299.34 144,898.02 193,197.36 174,535.47 523,606.41 698,141.88

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

DIMENSION DATA

PHILIPPINES INC

DIMENSION DATA

PHILIPPINES INC

FRM AIRCONDITIONI

ACCENT MICRO

118,864.41 48 191,250.00 purchases for the 4" guarter 119,480.77 48 47 59 60 3,187.50 S1/ 2,489.18 "P-75" 2,476.34 "P-75" 2,489.18 2,476.34 3,187.50 Subtotal P 405,043.16 7,467.54 7,429.02 9,562.50 > 1,037, 55019 9,956.72 9,905.36 12,750.00 P1,462,593,35 P 5,853.52 1,629.20 8,144.70 38,049.48 167,033.21 4,436.33 66,983.45 46,560.41 23,464.72 TECHNOLOGIES cesoae INC 93,656.28 45 1,951.17

ACCENT MICRO

TECHNOLOGIES Low 48;

INC 26,067.27 45 “p-72" 1,629,20

ACCENT MICRO

TECHNOLOGIES 51!

INC 130,315.17 45 48 2,714.90 "P75" 8,144.70

ACCENT MICRO

TECHNOLOGIES 48!

INC 608,791.75 45 48 12,683.16 "p-72" 38,049.48

ACCENT MICRO

TECHNOLOGIES 48)

INC 2.672,851.38 45 48 55,684.40 "P72" 167,053.21

BARRINGTON 48:

CARPETS INC 88,726.50 57 60 1,478.78 "p.72" 4,436.33 DIMENSION DATA Si PHILIPPINES INC 1,07 1,735.23 45 48 22,327.82 "p75" 66,983.45 DIMENSION DATA PHILIPPINES INC 744,966.49 45 48 46,560.41 DIMENSION

DATA SI:

PHILIPPINES INC 375,435.51 45 48 7,821.57 "P75" 23,464.72 DIMENSION DATA 51!

PHILIPPINES INC 1,345,451.29 45 48 28,030.24 "P-75" 84,090.71 DIMENSION DATA SI!

PHILIPPINES INC 87,197.60 45 48 1,816.62 “p.75” 5,449.85 IBMS

TECHNOLOGY 49:

PHILS CORP 149,661.62 45 48 3,117.95 "p.73" 9,353.85 FURNISHING INC 150,000.00 57 60 2,500.00 "P.75" 7,500.00 TELEDATACOM | sso.os160 | 48/ PHILS INC 130,041.60 45 48 2,709.20 "P-72" 8,127.60

ACCENT MICRO

TECHNOLOGIES INC 76,523.02 46 48 1,594.23 3,188.46

ACCENT MICRO

TECHNOLOGIES 48/

INC 469,336.67 46 48 9,777.85 "P.72" 19,555.69

ACCENT MICRO

TECMNGLOGIES 48?

INC 1,870.995.92 46 48 38.979 08 P-72' 77,958.16

POWER MAC 48)

CENTER INC 270,000.00 5,625.00 "p.72! 11,250.00 POWER MAC 48? | CENTER INC 297,000.00 6,187.50 p72" 12,375.00

ACCENT MICRO

TECHNOLOGIES 48!

INC 156,050.04 47 48 3,251.04 "p-72" 3,251.04

ACCENT MICRO

TECHNOLOGIES INC 74,383.38 47 48 1,549.65 1,549.65 ACCENT MICRO TECHNOLOGIE SINC ACCENT MICRO TECHNOLOGIE SINC

DATA CENTER

DESIGN CORPORATIO N DIMENSION DATA PHILIPPINES INC 74,347.53 47 48 1,548.91 2,044,024.8 151,071.43 42,583.85 2,517.86 "p73" 1,548.91 42,583.85 2,517.86 1.008,056.2 9 21,001.17 21,001.17 | 5,449.85 84,090.71 9,353.85 7,500.00 8,127.60 3,188.46 19,555.69 77,958.16 |r asooe | 1,250.00 ee eee 3,251.04 1,549.65 1,548.91 42,383.85 2,517.86

Manulife Data Services, Inc. v. Commissioner of Internal Revenue

I Total P63,602,980.12 I Thus, out of the declared input VAT of P159,480,669.23, only P70,799,256.49, as computed below, constituted petitioner's valid input VAT due or paid for CY 2020, in compliarrce with the seventh requisite: Declared Input VAT per Quarterly VAT Returns f' 159,480,669.23 Less: Disallowances Per !CPA findings 1"25,078,432.62 Per Court's further verification 63,602,980.12 88,681,412.74 Valid Input VAT P70, 799,256.49 FRM Eighth requisite: A portion of the input taxes being claimed is attributable to zero-rated or effectively zero- rated sales.

The eighth requisite is to the effect that the input taxes claimed are attributable to zero-rated or effectively zero-rated sales. However, where there are both zero-rated or effectively zero-rated sales arrd taxable or exempt sales, arrd the input taxes carrnot be directly arrd entirely attributable to arry of these sales, they must be allocated proportionately based on the sales volume.

As mentioned earlier, petitioner reported in its Quarterly Value-Added Tax Returns for CY 2020 total sales of P5,819,465,711.52, consisting of 12% VA Table sales amounting to P103,932,334.22 and zero-rated sales amounting to P5, 715,533,377.30.

AIRCONDITIONI 49 NG 57,857_]4 59 60 964 29 "P-73" 96--1.29 !BMS TECHNOLOGY 49!

PI-IlLS CORP 95,093.08 59 60 1,584.88 ''P-73" 1,584.88 IBMS TECHNOLOGY 49 PI-IlLS CORP 49,887.21 59 60 831 45 "P-73" 831.45 IBMS TECHNOLOGY 49 PH!LS CORP 25,71..!.29 59 60 428 57 "P-73" 428.57 IBMS TECHNOLOGY 49.

PI-IlLS CORP 149,661.63 --~9 ____ 60 2.494.36 "P-73" 2,49.U6 NETTDRIVEl" 48 CORP :ns.749.60 47 48 6,994 78 "P-72" 6,994.78 Suhtoluf /' 6156, 775.15 Total f'2,244, 756.17 f'-117,750.81 f'l,5-15, ll9.10 P2,602,669.29 v 964.29 1,584_88 831.45 428.57 2,494.36 6,994_78 p 686,775.15 P6,8 I 0,295.3 Manulife Data Services, lnc. v. Commissioner of Internal Revenue Since petitioner's declared input VAT of P159,480,669.23 cannot be directly or entirely attributed to specific sales, the same shall be allocated proportionately based on the volume of petitioner's sales, thus: Total Declared Zero-Rated Sales per VAT Returns 1"5,715,533,377.30 Divided by Total Declared Sales per VAT Returns 5,819,465,711.52 Multiplied by Total Declared Input VAT 159,480,669.23 Declared Input VAT allocated to Declared Zero-Rated Sales P156,632,435.55 Total Declared 12% VA Table Sales per VAT Returns p 103,932,334.22 Divided by Declared Total Sales per VAT Returns 5,819,465, 711.52 Multiplied by Total Declared Input VAT 159,480,669.23 Declared Input VAT allocated to Declared 12% VATable Sales p 2,848,233.68 Thus, for the eighth requisite, only the amount of P156,632,435.55 represents its declared input VAT attributable to total declared zero-rated sales for CY 2020. Ninth requisite: The subject input taxes were not applied against output taxes during the same or succeeding quarters.

Having determined that petitioner had input VAT attributable to its zero-rated sales, the next step is to determine whether the input VAT was not applied against output VAT liabilities during the same or succeeding quarters, as required under the ninth requisite for the refund of input VAT. In Chevron Holdings, Inc. (Formerly Caltex Asia Limited) v. Commissioner of Internal Revenue, 135 the Supreme Court held that input tax attributable to zero-rated sales may, at the option of the VAT -registered taxpayer, either: ( 1) be charged against output tax from regular 12% VATable sales, and any unutilized or "excess" input tax may be claimed for refund or tax credit; or

(2) be claimed for refund or tax credit in its entirety, and such option is vested with the taxpayer-claimant, to wit: Thus, the input tax attributable to zero-rated sales may, at the option of the VAT-registered taxpayer, be: (1) charged against output tax from regular 12% VAT-able ' "' :~~::,.::; ::

~~,::::::·,,::,,~~••••' Input t= =y b~

Manulife Data Services, lnc. v. Commissioner of Internal Revenue claimed for refund of the issuance of tax credit certificate; or (2) claimed for refund or tax credit in its entirety. It must be stressed that the remedies of charging the input tax against the output tax and applying for a refund or tax credit are alternative and cumulative. Furthermore, the option is vested with the taxpayer-claimant. xxx (Emphases added) Applying the foregoing, records show that petitioner availed of the first option as it chose to claim a refund of its unutilized or excess input tax of P147,008,789.13 136 after charging its output VAT liability of P12,471,880.10 against its total input VAT off>159,480,669.23. Since petitioner's declared input VAT allocated to 12% VATable sales in the amount of P2,848,233.68, as determined earlier, was not enough to fully cover the output VAT liability of P12,471,880.10, the declared input VAT attributable to declared zero-rated sales of Pl56,632,435.55 was utilized and offset against the output VAT still due of P9,623,646.42, resulting to an excess input VAT attributable to declared zero-rated sales in the amount oft>147,008,789.13, computed as follows: Output VAT liabilities l' 12,471,880.10 Less: Declared Input VAT allocated to 12% VATable Sales 2,848,233.68 Output VAT still due p 9,623,646.42 Declared Input VAT attributable to Declared Zero-Rated Sales l' 156,632,435.55 Output VAT still due 9,623,646.42 Excess Input VAT attributable to Declared Zero-Rated Sales P147,008,789.13 Nevertheless, as discussed earlier, not all of petitioner's input VAT is valid. Thus, the Court must determine whether the valid input VAT is sufficient to cover the excess input VAT attributable to declared zero-rated sales, viz: Excess Input VAT attributable to Declared Zero-Rated Sales (A) Valid Input Taxes (B) Valid Available Input VAT attributable to Declared Zero- Rated Sales (A or B, whichever is lower) 1"147,008,789.13 70,799,256.49 P70, 799,256.49 In relation to its zero-rated sales, considering that petitioner was able to properly substantiate only the amount of P3,157,908,691.67 out of its total declared zero-rated sales of P5,715,533,377.30, only the valid input VAT ofP39,117 ,536.~4 / no As noted earlier. petitioner's claim per Petition for Review is ~147,008, 789.15 but the actual excess input VAT W Quarterly Value-Added Tax Returns amounts to P\47.008,789.13.

Manulife Data Services, Inc. v. Commissioner of Internal Revenue is attributable to the said valid zero-rated sales of P3,157,908,691.67, as computed below: Valid Input VAT attributable to Declared Zero-Rated Sales p 70,799,256.49 Divided by Declared Zero-Rated Sales 5,715,533,377.30 Multiplied by Valid Zero-Rated Sales 3,157,908,691.67 Total Refundable Amount p 39,117,536.84 Although the input VAT claim of f'147,008,789.15, which includes the refundable valid input VAT ofP39, 117,536.84, was carried-over in petitioner's succeeding Quarterly Value-Added Tax Retums, 137 it remained unutilized until it was deducted as "VAT Refund/TCC claimed" 13S in the amended Quarterly Value- Added Tax Return for the 41h quarter of CY 2021. Accordingly, the subject claim no longer formed part of the excess input VAT of f'102,004,519.27 139 as of the end of the 4th quarter of CY 2021, to be carried over to the succeeding quarters. Such being the case, it eliminates the possibility that the excess valid input VAT off'39,117,536.84 will be applied to any future output tax liability. Hence, petitioner has sufficiently complied with the ninth requisite for the refund or issuance of a tax credit certificate.

In fine, petitioner has sufficiently proven its entitlement to a refund or the issuance of a tax credit certificate in the amount of P39, 117,536.84, representing its excess and unutilized input VAT attributable to properly substantiated zero-rated sales for all four quarters of CY 2020.

WHEREFORE, in light of the foregoing considerations, the present Petition for Review is PARTIALLY GRANTED. Accordingly, respondent is ORDERED TO REFUND or ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner the amount ofP39, 117,536.84, representing the latter's unutilized input VAT due or paid for the four quarters ofCY 2020.

WE CONCUR:

Presiding Justice CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, it is hereby certified that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court. Presiding Justice

REPUBLIC OF THE PHILIPPINES

COURT OF TAX APPEALS

QUEZON CITY

FIRST DIVISION

MANULIFE DATA SERVICES, CTA CASE NO. 10926 INC., Petitioner, Members:

DEL ROSARIO, P.J., Chairperson, - versus - BACORRO-VILLENA, and CUI-DAVID, JJ.

COMMISSIONER OF INTERNAL

Promulgated:

REVENUE, Respondent.

AUG 0 1 2025 : ~.'OOJI!J X- - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - -~- - - - - - - - - - - X .

DISSENTING OPINION

DEL ROSARIO, P.J.:

With utmost respect, I am constrained to withhold my assent on the ponencia.

I submit that petitioner's claim for refund or issuance of a tax credit certificate (TCC) for input value-added tax (VAT) attributable to its zero-rated sales for the four quarters of calendar year (CY) 2020 must be denied for petitioner's non-compliance with the invoicing requirements under Section 113(B)(2)(c) of the National Internal Revenue Code (NIRC) of 1997, as amended.1 1 SEC. 113. Invoicing and Accounting Requirements for VAT-Registered Persons. XXX XXX XXX (B) Information Contained in the VAT Invoice or VAT Official Receipt. - The following information shall be indicated in the VAT invoice or VAT official receipt: XXX XXX XXX

(2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax. Provided, That:

XXX XXX XXX

(c) If the sale is subject to zero percent (0%) value-added tax, the term "zero-rated sale" shall be written or printed prominently on the invoice or receipt;" (Boldfacing supplied)()~}

DISSENTING OPINION

It is a requirement that for any VAT invoice or official receipt (OR) evidencing a zero-rated transaction, the term "zero-rated sale" should be written or printed prominently thereon. Failure to comply with the invoicing requirements is sufficient ground to deny the claim for refund or tax credit.2 In the present case, an examination of petitioner's ORs for its zero-rated sales shows that all lacked the "ZERO-RATED SALES" stamp required under Secticn 113 (B)(2)(c) of the NIRC of 1997, as amended.

Thus, for failure of petitioner to comply with the invoicing requirements for all its alleged zero-rated sales, its claim for refund or issuance of a TCC for input VAT attributable to its zero-rated sales for the four quarters of CY 2020 should be denied. All told, I vote to DENY the Petition for Review for lack of merit. Presiding Justice 2 Commissioner of Internal Revenue vs. Phi/ex Mining Corporation, G.R No. 230016, November 23, 2020.