American Express International Inc. ~ Philippine Branch vs. 0 Comm PSS Toner of Tne E Pinal

DECISION -

rursuant to Seotiton 107 of the National internal Revenue Code, as amended, petitioner registered itself as a value-added tax entity with VAT Registration No. 32A-3- OO04868 etfective Marci 1988 (Exh. A, Petitioner, p. 51, CTA records). Later, on June GU, 1994, It re-registered itself as a Val taapayer wth bax ldentibtication Nuwber vd47-O00- TO6 "tes Viev Ckxh. Rod, Petrbiuher, p. be, GIA pecords,.

For the Per pud Gatibar y tf, byed CoO Usaucinbel oi, Iya, petitioner alleges thar ic cabview pevenues the amuunt of P61,341,088.02, whtotn Wer pradad tus tis aGceGplavie Coreign currency (tnwardly tomrbicai ta the PHP ippites ta aduecorudaneces with the rules aud tegulatiots wt the bBangho oentral ng Piltpinas (rormer ly Wei tt al tah oi ities bit itjepines), ‘Petitioner turther avers lirat these peventies were sero-rated based of Geotion We ar Ce) wh ihe National ittbtelual Hevenue Code, aS udmended, AboG, Pos the Same per iud, pelitioner further aileges that tt theurroed and paid vad ttiput taxes on its domestic purchases of tarcabie Yyoods anu serviwes rn the sui of P1,98O, fue, 28 which were ali agtrectty attriputabie to {ts Zero-rated revenues.

On December Bb » bes , Beltittioner Tiled at applicabkion for the refund of vat tripeut tases with the ttureau of internat Revenue bs ihe amount of Pi, via, 102.26, representing unuttifiized inpul taxes for the year I9%4 (Chahs.

E and E~i, Petitioctter, pp ob - GY, UIA reaurds).

‘L4iu ; .' ,1··· t . DECISION - , C~l<A~'· CASE NO. 5308. - 3 - Without waltlnQ for an action from the respondent, petitioner fl led the Instant petition for review on Oeoember 27, 1995 In order to preserve Its right to judlolal ly olalm the refund of unappl led Input value-added tax. ~· The Issue presented before Us Is whether or not petitioner Is entitled to the amount of P1,960,102.28 representing VAT Input taxes paid for the period January 1, 1994 to Oeoember 31, 1994. At this junoture, It Is noteworthy to point out that parties herein are not In dispute that petitioner's sales of servloes during the year 1994 are zero-rated pursuant to Seotlon 102(a)(b) of the National Internal Revenue Code, as amended, since the oonslderatlon,reoelved by petitioner from AMEX Is paid for In aooeptable foreign ourrenoy inwardly remitted to the Phil lpplnes In aooordanoe with the rules and regulations of Bangko Sentral ng Plliplnas.

Thus, what remains for Us to determine Is the aoouraoy of the amount sought to be refunded. In support of Its olalm for refund, petitioner presented various documentary exhibits whloh consist, among others, ofa 1 • Monthly VAT declarations !

Petitioner, pp. 54- 61, CTA records); <Exhs.

c to C-7, 2.

Value-Added Tax <VAT> Returns CExhs.

0 to 0-3, Petitioner, pp. 62- 65, CTA records>; 14 ~ 1 j

3. Certification by Punongbayan§ & Araullo with respect to petitioner's Schedule of input Taxes paid and ‘Sohedule of Zero-rated Heventies for the period January 1, 1994 to December 31, jyyd (Exhs. F&F and F-i, Petittroner, pp. BZ - 643, CIA Peetords): ard 4, Photocopy of BUp Pb rer os Sales invotces and/or offlelal teceipils for the suUbjeat pertod (ixhs. ota G-770, 4 s@éparaite tolders).

On the other hand, teepondent presented in uvidence the following documents,

1. Letter of Authortty No. 86i¥0, dated bebruary 1, {996 Chxh. 1 lo tb. Hespondent, p. V4/, CfA becordsi; and we Wemorandum report of favestigation conducted by Revente Officer, Andres J, wabagat, Jr... dated January 6, 1997, recommending (he amount of £1,008 badelas as rightful refund for the pettttoner together with the attachment of Working paper for wWisaitowed tnput taxes(exhs. ¢ to 2-j, Respondent, pp. piu gy. Cid pewards).

A soruttioy ofr the evidence presented by both parties’, reveals that petittoaner Io entitied onty to the reduced amount of BFi,449, 814.05, eonputed as tottowss VAL Pipe bases For OPA scnedute Uisal lawances Ketundable Period (overed (kako. poreds (eee Amex Ay aput pakes Ob-Gi-¥4t to Ud-di-ad f gat ly PHB Uzi. du F252, 0Ub.c¥ U4-O1-94 to Ui-d0-g4 f2d,A27.04 od, 501 .au boY¥, 0/5. 04 L4.%

DECISION -

C.T.A. CASE NO. 5306.

~ § - 07-01-94 to 09-50-94 339,501.97 4,316.57 285, 184,60 10-01-04 to 12-31-84 461,621.12 A188 78.10 242,948.02 fot AL PY, 190, 176.82 Pd45,362.4/ PA AAG B14. OD This amount was atrived at atter individual examination of petitdunet S pr@v-itafecd invoices in support or tts claim for refund (hsho. i [rn inohasiwe? ea 3 weft ag the Workshegel pircpared by hi. tiabagat, the bevenue officer who examined peittlitoner .; wicadde Pol petuncd (hes. gre. tu 2n-j, inclusive}. lie cobemaie wt bisatlblowed Prapud taacs tur the calendar year ved pe fieretiy wlbbaciied aS AnnGa ORO WHEHEE ORL , bio viuw ot i iie PoreEgulitg, euspomdent is hereby GHDERET Guo Rei uh Gab faver Of pelritaones ibe sum of P1,4449 Gt4o05. Pepieseil rity VAL vithibl bLdagce paid of domestic Purchases af Qovedo add Selby tous Por bine prot bea adawuaby Ll, 1994 to Peceinther 2). itiiea.

DU URDL HED.

Agsogdate “luge

WE CONGUR:

ERAS iO UD. AGUSTA Aesiding Judge ok RAMON ©; DE ASGOUIrale Gdiuye 1415 -

DECISION -

C.1T.A. CASE NO. 5308.

GCERTIFICATLION i fereby certify that this decision was reached after due consultation with the meibers of the Court of Tax Appeals in accordance with Seotton 13, Article VIil of the Constitution.

Oo, Aan EHNESTO 0D. ACOSTA Phesiding WSrigs jiouet of fax Appeals

- 7 =~ AWERICAN EXPRESS INTERNATIONAL, INC. - PHILA PPINE BRANCH

SCHEDULE OF DISALLOWED INPUT TAXES

ANREX “A*

For the Year 1994 WANUARY 7, deyd 10 MARCH dt, Tess INyUEGE/ AMUUNE Ur INPUT SUPPLIER Baw. WO. BeN VA CLAIMED REMARKS Asta Pacific Computer feck. Center dis, 4 é P 4 075.00 Ho RIK permit te prqat Chinese felephone Uirectary oq and 1,905.64 Slalement af account Goliector af Custans PAL /as54 YP GAP on Wo document D'Hobe Security Ageney, the, dant tied ig Hul it the wane of petitioner Gi Emery Sales, lie. BI345 518. 18 Wi document URS Business Corparat ion edh | O68 tidy Charge service job order and hol ih the nawe of patitioner ARS Business Corparet ioe Peete el anh Fay - fa - URS Business Corparatios Jigual wedi a.uy - do - JRS Business Corparatian PrUbat 8-84 ius di URS Business Corperation liv dg ivy ty JAS Business Cerporacing GBs ‘aly ~ ola - JRS Business Corporation abs 5.049 dG i JAS Business Carpoiattan Gat “oy o> JHS Bustness Corporation f2yiu) dead cae - ae: | ARS Bustiess Corporation Peg Ada head idy - dae UKS Businegs Corporation fidfod apy guy ~ alu + URS Bugivegs Carparalion fever Qo iyh toy hi JHS Business corporation é2dibs 88 3. 0y ie - URS Business Curporatian Zedyia Gok ditty ~ aby JAS Bustnass Corporation 22 96UE a-bs 3.09 - aa - JHS Business Corporat ian 22 48ay ants 3.09 da - i URS Business Garparatien Pusha aad iuy ue JAS Business Corparat tan (Bila se afd any as : URS Business Corporation jad th urid BUY dy JRS Business Corporation Vedddh tir FA 4.09 - o> \ URS Bustiess Corporation (44d 5b ait dud du - | JRS Business Corporation hadhay ed? $.09 du - SRS Business Corporation efdnad Geie say ue URS Business Carparatisn redbhe GF 4 te > JAS Busitess Corporation ecg a- fs 4.08 - i JRS Business Curpoeratian fo35 al G-id yd ~ do - URS Business Corperatian ézdboi a-14 4.04 ae JHS Business Corporation “224580 6 Th ‘ay Aye JAS Gusiness Corporation wigndd ued 3.48 ane JRS Business Corparation 225589 G- it 4.09 - do URS Business Gorporatian (6ushu afi 2.44 ~ de - URS Business Corporation 180246 ete 2.09 ~ do - _ = aw 14:

=

DECISION -

G.T.A. CASE NO. 5308.

JAS Business Corporation URS Business Corporation JAS Business Corporation JAS Business Corporation JRS Business Corporation JHS Bustness Corporation JKS Business Corporation JRS Business Corporation JAS Business Corporation JHS Busifess Corporation JRS Business Corporat ton JHS Busiless corpurdtion URS Business Corporation SHS Besiness Lorporatien JHS Bustiess Corperatian JAS Business Gorperation JRS Business Corporatian URS Business Corporation JHS Business Corporation JAS Business Gorporallun URS Business Corporation URS Business Corporation URS busthess Corporation JHS Busitess Gorporatian =~ JHS business Cofpperation JHS Buaitess Corparatica URS Business Curporation dkS Eugihess Corporation JHG Business Corporation JRS Business Corporation JHS Business Corporatran Ogitvy & Mathei Oglivy & Mather Ogilvy & Mather One-on-One fie Love Garden 160 T At FEBRUARY 1, 1984 1d JUNE dd, 1494;

Collector al Customs Delta Plumbing & Gotsivustios GHL FHilippines Consliuelton Equicam Computer Services, Inc. Hanover ligrdvare dC Carpeiters ireasure House - 8 190237 180233 1aG2dz 160429 180828 Weudz t80a14 ped2z4 Wsiz24 lougeu (eu2t6 roused iBU202 faye igue6i iguéoy 1egzid lguees iaayoy tousou (Hoist pyddau WGuing fathing relitdn (suid 1edheg hudci pHdtz4 loudib RUELT £0U5 2671 DUG Os 8 Sei2u iH¥UELEY Hat, BOL doudgid CREE!

S85u arb tufadf sé 4-18 G-79 G-7¥ G-80 G-80 ticdt G-8t i-82 6-82 G85 6-83 acd G84 was 6-88 wad Gb O- Bi Gey wea G-iiy ard u-9d aedl G-$i ode Gn?

Ge toh Goby 2.08 2.73 248 2.48 aE) fete om me mM FR mt ce ~~ ~ ace ree ce fans 3,440.64 2,000.00 vb, bid.ad 1,980.14

AMAUIT GF VAPUT

[at CLAGME Fe4udie de hilad wad gu uu bil oy f2i.2t jee’ da A - fo hs Vosatie tt Ho docdweat hid duuuaett ho docametl NO GUL dwent fe docusent Uluci st th HEMARES fla dircimesit Pay VG cash flu Susepeat fie douuweni Hat sa the nave of petitioner Ko docawent ‘

DECISION ~

C.LVLA.

GASE NO. 5306.

~ 9 JAS Business Corporation 223843 JAS Bustness Corporation 223842 dRS Business Corporation 224853 JAS Business Corporation 223862 JAS Business Corporation 223679 JRS Business Corporat ios 229859 JHS Business Corporation 220092 JRS Business Corporation 224908 JRS Business Corporation ee aHhe JHS Basiiess Corporation 22499h0 JAS Basiheds Corporation 224985 URS Business Corporation 224946 JAS Busthess Corporation sidsvo JAS Business Corporation 314Gb JAS Business Corporation ildeo JHS Business Corporation avait JHS Business Corporation dadods JRS Business Corporation s14d ty WAS Business Corporation ahaday URS Business Corporation 314567 JHS Business Corporation SahGud JHS Busitess Corporation diddy JKS Businesa Carporattou aiddyi JAS Business Corporat ian 414386 JKS Business Corperatian 4iddyy JHS Business Gorporation AVdsy JHS Business Garporation car rar) JAS Business Corporatian ERE) JHS Business Corpordtian siatia dHS Business Corporation S1adds WAS Business Corporation b14200 Kimberly Clark Philippines 242 f8u Urganization Management and bey. 03 Rubicon Wraphies and Printing Services hye Sparks dys Tamaraw Hesnforced Armored Car Ger. doe, brid Tawaraw Reinforced Armored Car der. fae, Bile The Wyatt Company (fhids.d the, aiid Whalecard tuterprises idal Tod A JULY $, 1994 10 SEPTEMBER 30, 1ua4 Anchor Unbretia Industries Collector of SUPPLE Custome Havuice) 2 WO, étys Wwiidses G-246 G24 G-24¢ a 248 G-248 w-dd G-24y ue 25d

G- 254

a 254 Ge 2h4 goed

G- 624

ter fh 6-62) a-oe4 G-al4 weet G-826 urtZo Geb? f ured i028 web G67 weal G4 O- 45s . 14:5 bans 4.08 4.09 3.0y 3.49 4.09 4.09

a. 09 4.09 a9 3.09 abi 4,0 d.ug 4.09 j,Uy 4,09 3.09 3.09 1.UY do thy aed $y 3.Uy 3.49 aud 4.04 dias 4,09 Ug 3.99 d.ud yo.4y 1,050. uu ri.2] 6, /4a.a0 1,486.00 Sud, du 1, 100.00

AMUUAL UF INFUT

col GER UMEE fF

40. 0G 40,015.00 Charge service job order aad not ta the He ho do da ~ do du ~ do - du - ~ ye au ~ odie - ag - - ju - oda he ald a document Bb fGeaibkunl doch@ent ducumunt Statement of account Stdtewent of account Ho document Stalewent uf account tape of petitioner AEMARDS Ho document No document en eee

DECISION —

C.1.A. CASE NO. 5308.

-~ 10 - Equicon Computer Services, toc. 4822 16.00 Wo document Equicoa Computer Services, inc. abag 145,45 Wo docuwent Equicop Conputer Services, inc. ba92 347.74 = No docusent Equicam Computer Services, Inc. 88/2 Ze. Ho document Equicum Computer Services, Ins. Sold iu. uu Wo ducuwent Equicom Computer services, lac, Ho32 102.78 Ho document Equicam Gamputer Services, fae. Have du.uu Hu Gucumeht Equiconm Computer Services, (nc. 0098 44 1,/f3,09 No docunant kqulcon Computer Sot vives, fie. boli tests Ku dovument Equicom Computer services, tne. Gudgsy4 15.00 Ho document Fyutcow Sowputer Goivices, bus sts f2.id Hig ducueent Equicom Gawputer services, fae. VUE To 1,595.45 Ho document JHS Business Cooperation sodhs a 3.U4 Hu duciiagit hut if the nawe of petitioner JHS Husifess Corparet tun Sadehy 3.Uy fiu Gdcuwmeit JRS Business Coipordtion adolid a 445 j.iy Charge service job order URS Business Caorparet ion Saul ty a 4d 3.0% He JHS Business Corparatyon 44184 G-dau 3. 69 » ito > JHS Business Carpuration dandae goat ode da dHS Business Corpuration iiinie un adi 1.09 - du URS Husibess Cosped at tos pidaia ads hog dy dk Business Corporation aaloty a-dde 5.09 ~ ila - dHS Kusiheds Carporatcon pyiuiy ae wa jas JHS Business Corporation Jabsio ord ay aly > URS Business Corporation bog adh wi WY bs JRS Bostaess Corporation S41958 u-44b 3,09 ~ do» JAS Eustness Copporatias 4gisat yo dae Vids ds “ GAS Business Corporatiun 41930 4d 4.uy do - MRS Busthegs Corporatcan en ahi, aig gue URS Business Corporatian isi sOY nail 4.08 ~ du - VRS Busthiess Corporation sadies wy Ree au JAS Business Corporation S30 ibs urdu d.ug ~ ha Lane Moving & Storaye sad fbi.bu fu ducumein Modem Bustiess Methods, ine, daub a-obd hos.a4 The same item in Exh. 649 One-on-One Wil. BU9 yu fis Gecnbeal One-cn-Gne Olle bab, o4 No doullagat Gne-on- te Utla ba. G4 ie Gutgment Roubie Stylographic uiss 1,048.45 Ho docunent Robbie Stylagraphie eitd Vgse.is HO dosument Tawataw Heiaforced armored Car Ser, ine, o- (bi 1b16 00 Statewent of account Tamaraw Hetnforced Araored Car Ger. dae. g529 wuss Sid OU Staleeal of account Tamaraw Weinforced Armored Gar Sef, tne, baad G54 Suu. du Statement of account Jaweraw Relaroiced Arwored car Set. fhe. Soau G-bsh udu Slalewett uf aecount U-Bia Corporatian luuig6 b-bd Ostdi Debitsvredit aewo fhe Wyatt Company (Patis.a the. odds de Ho dactiment Tota . Pda 16.

1dic

OCIOBEN i, 1944 10 DECEMBER at, 1994

SUPPL ER

AD-cubes, ine, Attiawan Compahy BCU ~ Finpornl Collector of Customs COliettur uf Lustows Conputech Computer systems JHS Business Corgoratior JAS Business Corpuratian UHS Gusihess Gorpuration JAS Business Curporatron JHS Business Corporation JAS Business Corporation Mode Matria Mode Matis Ughivy « Mather Ogilvy & Mather Wne-on-Uhe Hapid Lithographias & Publisatag the. Hicwig Robbie Stylographie Hobbie olylogiaphic Hobbie Stylographic Roig Mahafaciur ing Santis Uelicatessen Sarabia upiicai Sarabla dptical Tawnataw Keriforced Armored Lai Ser, fammaraw Reinforced Armored Gar Ser. Time Giube, Jac, Time Globe, ine, U-bia Corporation Wiley Multi Sales To bt A 4 WNYOIuE/ did g10182 1385 1614392 (Oledayd 4iy aur q4usia RT ratty arg) dodo 4a0did qaggho osu s4ad 4408 wise 4gh chau 5960 wud bid Rane?

uidd tatad qiuee fhe, id ii Iie, $550 405 304 hubard ligy "ys h19

AMOUNT OF IHPUT

# 0,390.00 3,357.95 duu. ud 24, dtd. 00) fe,o2t.uu 204.05 i94.99 ddd 3.09 G- 450 jay Bade rus ard 3.09 garda sud ordi 4.09 Poss .uly 2, stloag 3, Ubi. dd Bed. 48 1,022.74 j, £20.30 ta bie. dl dy, di0. ea s,2ig.ia b,2ih.nd bug. du iZ.él urdan V,idu.vu u-b44 500. UU 4, uuu 4, ud. G0 ew oodg Ooi .ei PLib of eM NO, Ea TAL CLAIMED No Ho tt) No NY Nis we Gharge service job order iul it tie tame af petitioner tu ha Wa Ho ha fie Ne Ho Ho liu NG slalewenr oF account Statement of aocogat hu Hu document document ducument docanent duvument document bere Harta d dae:

7 da iy Pde dent duchsent duaudent document Gi ockoid doutment MG he dee docuwent Javaweni ducument documetit document JGounbe ht Jocument GE ihe dik Foc ament Ucbilfiivdtl Memo Ho document re are