Toshiba Information Equipment Inc. vs. Commissioner of Internal Revenue

DECISION

This is a petition seeking for the refund or issuance of a tax credit certificate in the amount of P l 9 , 338,422.07, representing wmtilized input taxes paid by Petitioner on its local purchases of capital goods and services for the first and second quarters of 1996. Petitioner is a domestic corporation duly organized and existing under and by vit1ue of Philippine laws, with principal office at 103 East Main Ave. Extension, SEPZ, Phase III, Laguna Technopark, Bifian, Laguna (Exh. A). It is registered with the Philippine Economic Zone Authority (PEZA) as an Ecozone Export Enterprise under Cer1ificate of Registration No. 95-99 (Exh. B) as well as with the Bureau of Intemal Revenue (BIR) as a value-added tax (VAT) taxpayer under VAT Registration No. 95-570-001544 (Exh. C). Petitioner is principally engaged in the business of manufacturing and exporting electrical and mechanical machinery, equipment, systems, accessories, paris, components, materials and goods of all kinds, including without limitation to those relating to office automation and information technology and including all types of - computer based equipment and systems, computer hardware and software of all kinds, including but not limited to HDD, CD-ROM and personal computer printed circuit board. For the period January 1, 1996 to June 30, 1996, Petitioner filed its first and second quarter VAT returns, reflecting input taxes amounting to P13,118,542.00 and P5,128,761.94, respectively, or a total ofP18,247,303.94. As Petitioner allegedly has not yet engaged in any business activity or transaction for which it may be liable for output VAT, the input taxes during the aforesaid period were not utilized as there is no output VAT against which the same may be credited. Thus, on March 27, 1998, in accordance with Section 112 (b) (formerly Sec. 106(b)] of the Tax Code, which provides: "Sec. 112 XXX

(b) Capital goods. - A VAT -registered person may apply for the issuance of a tax credit certificate or refund of input taxes paid on capital goods imported or locally purchased, to the extent that such input taxes have not been applied against output taxes. The application may be made only within two (2) years after the close of the taxable quarter when the importation or purchase was made," and pursuant to Revenue Audit Memorandum Order No. 2-93, Petitioner filed with the One-Stop-Shop Inter-Agency Tax Credit and Duty Drawback Center of the Department of Finance (CENTER-DOF) two separate applications for tax credit/refund of its unutilized VAT input payments: the first, from January l, 1996 to March 31, 1996 in the amount ofP14,176,601.28 (Exhs. L, M) and the second, from April 1, 1996 to June 30, 1996 an1ounting to P5,161,820.79 (Exhs. N, 0), or a total ofP19,338,442.07. As there was no immediate action on the part of CENTER-DOF and the two-year prescriptive period under Sec. 230 of the Tax Code was about to lapse, the instant petition for review was filed on March 31, 1998 and subsequently amended on November 24, 1998 in order to conform to the evidence presented. In his answer, Respondent raised the following Special and Affirmative Defenses: "5.

Assuming without admitting that petitioner filed a claim for refund/tax credit, the same is subject to investigation by the Bureau of Internal Revenue.

'

6. Taxes are presumed to have been collected in accordance with law. Hence, petitioner must prove that the taxes sought to be refunded were eiToneously or illegally collected.

7. Petitioner must prove the allegations supporting its entitlement to a refund.

8. Petitioner must show that it has complied with the provisions of Sections 204( c) and 229 of the 1997 Tax Code on the filing of a written claim for refund within two (2) years from the date of payment of the tax.

9. Claims for refund of taxes are construed strictly against claimants, the same being in the nature of an exemption from taxation." The sole issue We are tasked to resolve is whether or not Petitioner is entitled to the relief sought on the basis of the evidence presented. To support its claim, Petitioner offered as evidence the following exhibits: Exhibits A B c Description 13-page copy of SEC Reg. No. AS095- 006536 issued to Toshiba Information Equipment (Phils.), Inc.

including its Articles of Incorporation. PEZA Certificate of Registration No. 95-99 issued· to Toshiba Information Equipment (Phils. ), Inc.

BIR Certificate of Registration No. 95-570- 001544 dated Dec.

29, 1995 issued to Toshiba Information Equipment (Phils.), Inc.

1 ' I d0t

D,E,F,G H, I,J,K L nl N 0 p Q R s Value-Added Tax Returns for the first, second, third and fourth quarters of 1996 filed by Petitioner on April 22, 1996, July 22, 1996, October 21, 1996 and January 20, 1997, respectively Value -Added Tax Returns for the first, second, third and fourth quarters of 1997 filed by Petitioner on f..pril 14, 1997, July 21, 1997, October 20, 1997 and January 20, 1998, respectively DOF Claimant Information Sheet No. 28320 for the first quarter of 1996 Application for Tax Credit/Refund of Value­ Added Tax filed by Petitioner for the first quarter of 1996 DOF Claimant Information Sheet No. 28319 for the second quarter of 1996 Application for Tax Credit/Refund of Value­ Added Tax filed by Petitioner for the second quarter of 1996 Amended Value-Added Tax Return for the first quarter of 1998 filed by Petitioner on July 20, 1998 Amended Monthly VAT Declaration for April 1998 filed by Petitioner on July 20, 1998 Amended Monthly VAT Declaration for May 1998 filed by Petitioner on July 20, 1998 Report on the results of procedures performed by SGV & Co. on input tax claims for the first and second quarters of 1996

PAGES T -111 to T-7 4/3 U-111 to U-126 Schedule of input laxes together with the official receipts and invoices for the period January 1 to March 31, 1996 issued by Petitioner's suppliers of goods and services Schedule of input taxes together with the official receipts and invoices for the period April 1, to June 30, 1996 issued by Petitioner's suppliers of_goods and services Respondent, on his part, manifested during the hearing of May 27, 1999, that since there is no report of investigation from the One-Stop-Shop of the Department of Finance, he is submitting the case for decision without presenting any evidence (p. 124 CT A Records).

Thus, after a careful evaluation of the evidence submitted by Petitioner, We rule in its favor.

Being a 100% export seller duly registered with the Philippine Economic Zone Authority (PEZA) and with the Bureau of Internal Revenue (BIR) as a value-added taxpayer, this Comi is convinced that Petitioner is legally entitled to apply for the refund or issuance of a tax credit certificate of its unutilized VAT input payments (Exhibits B and C).

Likewise, Petitioner's claim for refund filed with the Department of Finance One- Stop-Shop Inter-Agency Tax Credit and Duty Drawback Center on March 27, 1998 as well as with this Court on March 31, 1998 are both well within the two year period from the dates of the filing of Petitioner's first and second qumterly returns which are April 22, 1996 and July 22, 1996, respectively.

Furthermore, to prove that Petitioner carried over its input taxes for the first two quarters of 1996 only until the final quarier of 1997 after which it already opted to file a claim for refund on March 27, 1998. Petitioner presented all its quarterly value-added tax returns up to the first quarter of 1998 and its monthly VAT declaration for April and May of 1998 (Exhibits D to K, P, Q and R). Finally, Petitioner submitted the invoices/official recei'pts evidencing the input tax payments made during the period covered. However, an examination of the said invoices ar1d receipts showed that not all could qualify as valid invoices and receipts for the refund of input VAT payments. Consequently, the Court was constrained to reduce the amount claimed for the reasons stated hereunder: Per Claim 1st Quarter 1996 (Exhs. L, M, & D ) p 14,176,601.28 2"d Quarter 1996 (Exhs. N, 0 & E) 5,161,820.79 p 19,338,422.07 Less: Disallowances per Court's Findings (Annex A) 1.) Purchases supported by invoices/official p p receipts without TIN-V or TIN-VAT P 2.) Purchases supported by stamped TIN-V or TIN-VAT invoices/official receipts 3.) Purchases of VAT-exempt goods/services 4.) Purchases without TIN-V or TIN-VAT invoices/official receipts but supported only by documents such as check vouchers, provisional receipts, acknowledgment receipts, deposit slips, etc. 5.) Purchases with invoices/official receipts not in the name of Toshiba Info. Equip. (Phils.) 6.) Purchases reported twice 7.) Purchases without supporting documents 8.) Purchase of motor vehicle with engine displacement of 2000 cc or more not allowable as tax credit in accordance with Section 1 04(a)(1 )(E) of the Tax Code 9.) Purchases not related to capital goods .J4u Per Return 13,118,542.00 5,128,761.94 18,247,303.94 271,779.70 25,339.85 12,962.99 267,000.52 3,112.65 43,765.46 81,272.11 56,363.64 182,128.60 Should be Subject of the Claim p 13,118,542.00 5,128,761.94 p 18,247,303.94 10.) Purchases of capital goods with incorrect computation of input tax Amount Refundable 1,115,532.93

2. )5g,258.50 p 16,188.045.44

WHEREFORE, in view of all the foregoing, the Court finds the instant petition meritorious and in accordance with law. Accordingly, RESPONDENT is hereby ORDERED to REFUND or in the alternative, ISSUE A TAX CREDIT CERTIFICATE to Petitioner in the reduced amount of Pl6,188,045.44, representing unutilized input value-added tax payments for the first and second quarters of 1996.

WE CONCUR:

i I I I

G-

ERNESTO D. ACOSTA P esiding Judge . ·, ..

. q J..

CERTIFICATION I hereby certify that the above decision was reached after due consultation with the members of the Court of Tax Appeals in accordance with Section 13 Article VIII of the Constitution.

'4 I 'l.

(...

o. ERNESTO D. ACOSTA Presiding Judge TOSHIBA INFORMATION EQUIPMENT (PHILS.), INC. - versus­

COMMISSIONER OF INTERNAL REVENUE

COURT'S DISALLOWANCES ON CLAIMED INPUT VAT

ON PURCHASES OF CAPITAL GOODS AND SERVICES

1ST & 2ND QUARTERS OF 1996

1.)

Purchases supported by invoices/official receipts without TIN-V or TIN-VAT 2.)

3.)

4.)

Ex h.

Supplier Remarks T-13/1 to T-13/3 Seawind Realty & Devt. Rental - Office space T-47/1 to T -47/3 Seawind Realty & Devt. Corp. Rental - Office space U-22/1 to U-22/2 Seawind Realty & Devt. Corp. Rental - Office space U-23/1 to U-23/2 Manila Bulletin Advertisement U-30/1 to U-30/2 Daniel Tan Condo unit rental U-47/1 Manila Bulletin Advertisement U-70 T & P Properties, Inc. Lease of Land U-83/1 to U-83/2 Seawind Realty & Devt. Corp. Rental - Office space U-126 T & P Properties, Inc. Lease of Land Purchases supported by stamped TIN-V or TIN-VAT invoices/official receipts pre-printed after July 31, 1991 T-24/1, T-25/2, T-32/2 L.D. Buenaventura Trading Letterhead/envelopes T-54/1 to T-54/3 L.D. Buenaventura Trading Letter envelopes T-68/1 to T-68/3 Corporate Resources Grp Emp'ee Handbook T-69/1 to T-69/3 L.D. Buenaventura Trading Letterhead/envelopes U-19/1 to U-19/2 Corp. Resources Grp Seminar U-36 Manila Bulletin Advertisement U-57/1 to U-57/2 L.D. Buenaventura Trading Letterhead/calling cards U-96 H. Sycip Entertainment exp.

U-107/1 to U-107/2 Corporate Resources Grp Seminar fee U-108/1 to U-108/2 Corporate Resources Grp Prof. Services U-123/1 H. Sycip Entertainment exp.

Purchases of VAT-exempt goods/services T-14/12 Motorists House, Inc. Gasoline expenses T-14/11 Motorists House, Inc. Gasoline expenses T-14/9 Motorists House, Inc. Gasoline expenses T-14/8 Motorists House, Inc. Gasoline expenses T-14/7 Motorists House, Inc. Gasoline expenses T-14/6 Motorists House, Inc. Gasoline expenses T-17/5 Motorists House, Inc. Gasoline expenses T-17/8 Motorists House, Inc. Gasoline expenses T-29/1 to T-29/4 Motorists House, Inc. Gasoline expenses T-56/1 to T-56/6 Motorists House, Inc. Gasoline expenses T-65/1 to T-65/2 Motorists House, Inc. Fuei/TBA expenses T-23/2 to T-23/5 SGV & Co.

Tax services U-38 Motorists House, Inc. Gasoline expenses U-55 Motorists House, Inc. Gasoline expenses U-76/1 to U-76/2 Motorists House, Inc. Gasoline expenses U-98 Motorists House, Inc. Gasoline expenses U-119/1 to U-119/2 Motorists House, Inc. Gasoline expenses Purchases without TIN-V or TIN-VAT invoices/official receipts but supported only by documents such as check vouchers, provisional receipts, acknow- ledgment receipts, deposit slips, etc. T-16/1 to T-16/3 T & P Properties, Inc. T-21/1 to T-21/3 Manforce, Inc.

T-32 Tricorn Systems (Phils.), Inc. T-60/1 to T-60/3 T & P Properties, Inc. U-24/1 to U-24/2 Universal Holidays, Inc. U-28/1 to U-28/2 Manforce, Inc.

U-31/1 T & P Properties, Inc. U-46/1 to U-46/2 Seawind Realty & Devt. Corp. U-61/1 to U-61/2 Manforce, Inc.

U-62 Progress Home & Off. Furn. U-69 H. Sycip Lease of Land Background Invest.

Lease of Land Airfare Background Invest.

Lease of Land Rental - Office space Background Invest.

Executive table Entertainment exp.

'4 J ,_  Date 4-Mar-96 p 21-Feb-96 2-Apr-96 12-Apr-96 20-Apr-96 7-May-9,6 28-May-96 4-Jun-96 29-Jun-96 subtotal p 29-1 Aar-96 p 23-f'eb-96 22-Jan-96 27-Jan-96 1-Apr-96 26-Apr-96 20-L1ay-96 14-Jun-96 20-Jun-96 20-Jun-96 27-Jun-96 subtotal p 7-Mar-96 p 7-Mar-96 7-Mar-96 7-IJlar-96 7-Mar-96 7-tAar-96 22-IAar-96 22-lllar-96 29-IJlar-96 26-f'eb-96 22-Jan-96 27-IJlar-96 30-Apr-96 16-l'vlay-96 31-1\lay-96 14-Jun-96 26-Jun-96 subtotal p 13-IJlar-96 P 25-Mar-96 29-Mar-96 29-f'eb-96 15-Apr-96 18-Apr-96 25-i\pr-96 7-May-96 23-May-96 23-1'-.lay-96 28-lvlay-96 Input Tax Claimed- 1996 1st Qtr.

2nd qtr.

15,174.46 p 30,348.92 15,174.46 10,017.00 60,805.90 5,008.50 60,038.00 15,174.46 60 038.00 45,523.38 p 226,256.32 236.36 p 68.18 7,500.00 236.36 1,150.00 5,008.50 577.27 235.00 1,350.00 &,818.18 160.00 8 040.90 p 17 298.95 27.27 p 31.82 27.27 40.91 36.36 30.00 27.27 27.27 133.83 100.36 1 ,090.91 9,681.82 178.00 331.55 265.10 441.34 491.91 11 255.09 p 1 707.90 60,038.00 p 2,350.00 51,045.45 60,038.00 2,524.80 4,393.30 60,038.00 15,174.46 7,141.97 845.45 690.00 ANNEXA Total Disallowances p 271,779.70 25,339.85 12,962.99 page 1 of 4 TOSHIBA INFORMATION EQUIPMENT (PHILS.), INC. -versus­

COMMISSIONER OF INTERNAL REVENUE

COURT'S DISALLOWANCES ON CLAIMED INPUT VAT

ON PURCHASES OF CAPITAL GOODS AND SERVICES

1ST & 2ND QUARTERS OF 1996

U-1 06/1 to U-1 06/2 Universal Holidays, Inc. U-114 517 Flower Co., Inc.

Airfare - employees Flower arrangement 5.)

Purchases with invoices/official receipts not in the name of Toshiba Information Equipment (Phils.), Inc. U-113 PLOT Telephone charges 6.)

Purchases reported twice U-48/1 Rest. & Banquet Operations Despedida Luncheon U-50/1 to U-50/2 TCS Manpower Services Janitorial services U-51 U-Bix Corporation Tables & chairs U-52/1 Ace Car Rentals, Inc. Car rental U-53/1 Cauder Trading Bond paper U-54/1 Tricorn Dynamics, Inc. Photocopying exp.

U-55 Motorists House, Inc. Gasoline expenses U-56/1 to U-56/2 Micro-Distributing lnt'l. Etherlink-5 units U-49 Trident Electronics Timekeeping System U-57/1 L.D. Buenaventura Trading Letterhead/calling cards U-58/1 Anzo Sales White board 7.)

Purchases without supporting documents First Lepanto Taisho Pragmatic Devt & Const Corp 8.)

Purchase of motor vehicle with engine displacement of 2000 cc or more not allowable as tax credit in accordance with Section 104(a)(1)(E) of the Tax Code (Section 4.104-1 (a)(5) of Rev. Reg. 7 -95) U-88 Mantrade Nissan Vanette, 2000 9.)

Purchases not related to capital goods T-14/1 to T-14/5, T-14 Motorists House, Inc. Car wax T-15/1 to T-15/4 TCS Manpower Services Janilorial services T-17/9 to T-17/11 Motorists House, Inc. Supplies-car maintenance T-19/1 to T-19/4 TCS Manpower Services Janitorial services T-20/1 to T-20/3 SM Appliance Center Rechargeable lanterns T-22/1 to T-22/4 Eroann Corporation Business envelopes T-27/1 to T-27/3 Technical House of Repair Repair-air conditioner T-28/1 to T-28/3 Savior Security Security services T-34/1 to T-34/2 "K" Line Air Service Phils. Inc. Airline Fees T-35/1 to T-35/3 Airfreight 21 00, Inc. Custom Duties T-37/1 to T-37/2 Brand Asia Limited Prep.- Cons!. Ceremony T-38/1 to T-38/3 TCS Manpower Services Janitorial services T-39/1 to T-39/2 Tricorn Dynamics, Inc. Main!. fee-Copier T-40/1 to T-40/5 Anson's Emporium ColorTVNHS T-42/1 to T-42/3 Elarmo Enterprises Whiteboard/corkboard T-45/1 to T-46/3 Tricorn Dynamics, Inc. Photocopying exp.

T-48/1 to T-48/3 Info. & Campaign Consult. Inc. Media/PR activities T -49/1 to T-49/2 Phil. Daily Inquirer Advertisement T-50/1 to T-50/2 Manila Bulletin Advertisement T-52/1 to T-52/3 TCS Manpower Services Janitorial services T-57/1 to T-57/3 Universal Holidays, Inc. Airfare T-58/1 to T-58/3 The Manila Southwoods Entrance fees T-59/1 to T-59/2 Savior Security Security services T-61/1 to T-61/3 Technical House of Repair Repair-air conditioner T-64/1 to T-64/3 Reliance Supp. Co., Inc. Fire extinguishers T-66/1 to T-66/3 Mr. Takeo Nagatomo Home appliances ._) 4 t Input Tax Claimed- 1996 1stQtr.

17 -Jun-96 2,539.27 ANNEXA Total Disallo wances 20-Jun-96 -=---:=:-:-::-:-:

:-::- -::---::-:-:'1::' 8-:'- 1 .'-" 8::- 2 subtotal P 173A71.45 P 93,529 .07 267,000.52 20-Jun-96 p p 3112.65 subtotal p p 3 112.65 3,112.65 8-May-96 P p 510.35 11-May-96 395.77 14-May-96 23,573.70 15-May-96 183.90 16-May-96 213.64 16-May-96 704.34 16-May-96 331.55 16-May-96 2,727.27 16-May-96 1 1,293.12 20-May-96 577.27 20-May-96 254.55 subtotal p p 41 765.46 43,765.46 15-i'eb-96 p 36,939.71 p 16-Apr-96 44 332.40 subtotal p 36,939.71 p 44,332.40 81,272.11 14-Jun-96 p 5o 363.64 subtotal p 5G1363.64 56,363.64 7-Mar-96 p 27.92 p 11-iv1ar-96 290.63 22-Mar-96 281.69 25-Mar-96 297.35 25-Mar-96 708.36 26-1v1ar-96 459.09 29-Mar-96 243.22 29-rllar-96 1,747.60 5-Feb-96 236.25 7-Feb-96 1,190.00 8-Feb-96 1,531.00 8-f'eb-96 232.86 8-Feb-96 912.70 14-Feb-96 3,999.09 16-Feb-96 763.64 22-Mar-96 381.82 21-Feb-96 2,500.00 22-Feb-96 5,832.00 22-Feb-96 5,040.00 23-Feb-96 274.94 26-Feb-96 5,654.55 26-Feb-96 10,000.00 27-Feb-96 1,763.64 29-Feb-96 136.36 16-Jan-96 772.73 22-Jan-96 498.45 page 2 of 4

ANNEX A

TOSHIBA INFORMATION EQUIPMENT (PHILS.), INC. - versus-

COMMISSIONER OF INTERNAL REVENUE

COURT'S DISALLOWANCES ON CLAIMED INPUT VAT

ON PURCHASES OF CAPITAL GOODS AND SERVICES

1ST & 2ND QUARTERS OF 1996

Input Tax Claimed - 1996 Total Exh.

Supplier Remarks Date 1st Qtr.

2nd Qtr.

Disallowances T-67/1 to T-67/2 Office Bear Corp.

Translation fee 22-Jan-96 1,700.00 T-70/1 to T-71/2 Savior Security Security services 31-Jan-96 3,527.28 U-25/1 to U-25/3 RCPI Telegram 15-Apr-96 710.74 U-26/1 to U-26/2 TCS Manpower Services Janitorial services 15-Apr-96 363.03 U-29/1 to U-29/2 Rest. & Banquet Operations Lunch-Job interview 16-Apr-96 752.40 U-32/1 to U-32/2 TCS Manpower Services Janitorial services 25-Apr-!!6 276.09 U-33/1 to U-33/2 Rest. & Banquet Operations Food-Job interview 26-Apr-96 22.00 U-34/1 to U-34/2 Eroann Corporation Office supplies 26-Apr-96 636.36 U-35/1 Speedway Electronics Office supplies 26-Apr-96 738.73 U-37/1 to U-37/2 Savior Security Security services 30-Apr-96 1,763.64 U-37/3 Pilipino Telephone Corp. Cellphone Charges 30-Apr-96 316.07 U-39/1 to U-39/2 Universal Holidays, Inc. Hotel Accomodation 30-Apr-96 13,475.00 U-40 Pragmatic Devt & Cons! Corp Rental - Office space 16-Apr-96 11,083.10 U-41/1 to U-41/2 Pragmatic Devt & Cons! Corp Rental - Office space 16-Apr-96 11,083.10 U-42/2 USA Trading Corporation Office supplies 2-May-96 200.00 U-43/1 to U-43/2 Universal Holidays, Inc. Airfare-Japan trainees 7-May-96 10,779.50 U-44/1 Microphase Laserprinter toner 7-May-96 313.64 U-48/1 to U-48/2 Rest. & Banquet Despedida Luncheon 8-May-96 510.35 U-50/1 to U-50/2 TCS Manpower Services Janitorial services 11<v1ay-96 395.77 U-52/1 to U-52/2 Ace Car Rentals, Inc. Car rental 15-May-96 183.90 U-53/1 to U-53/2 Cauder Trading Bond paper 16-May-96 213.64 U-54/1 to U-54/2 Tricorn Dynamics, Inc. Photocopying exp.

16-May-96 704.34 U-58/1 to U-58/2 Anzo Sales Whiteboard 20-May-96 254.55 U-59/1 to U-59/3 Rest. & Banquet Operations Despedida Luncheon 21-May-96 806.30 U-60 to U-60/1 TCS Manpower Services Manpower services 21-May-96 336.40

U-63/1 TO U-63/3

Globe Telecom Cellphone Charges 24-May-96 629.72 U-64/1 to U-64/2 RCPI Telegram 24-May-96 404.75 U-65/1 to U-65/2 Cauder Trading Bond paper/bookpaper 24-May-96 156.82 U-66/1 to U-66/2 Universal Holidays, Inc. Airfare 24-May-96 1,315.00 U-6 7/1 ti U-67/2 Universal Holidays, Inc. Airfare - Japan trainees 24-May-96 10 ,410.00 U-68 Ace Car Rentals, Inc. Car rental 27-May-96 183.90 U-71/1 to U-71/2 Savior Security Security services 28-May-96 1,763.64 U-72/1 to U-72/2 Tricorn Dynamics, Inc. Toner 28-May-96 595.45 U-73 Alta Printing Services Calling cards 28-May-96 224.55 U-74 Universal Holidays, Inc. Bus. Trip-Mr. Nagatomo 31-May-96 3,942.64 U-75 Pilipino Telephone Corp. Cellphone Charges 31-May-96 179.85 U-77/1 to U-77/2 RCPI Telegram 31-May-96 727.06 U-82/1 to U-82/2 Cauder Trading Office supplies 4-Jun-96 63.64 U-84/1 to U-84/2 Globe Telecom Cellphone Charges 4-Jun-96 122.33 U-85/1 to U-85/2 Takezawa Tech Transfer Consultation fee 4-Jun-96 '2,727.27 U-87 Microphase Enterprises Laserprinter toner 11-Jun-96 327.27 U-90 TCS Manpower Services Manpower services 11-Jun-96 386.72 U-91/1 to U-91/2 Tricorn Dynamics, Inc. Photocopying exp.

11-Jun-96 169.80 U-93/1 to U-93/2 Universal Holidays, Inc. Airfare-Japan trainees 11-Jun-96 5,270.18 U-94/1 to U-94/2 Cauder Trading Office supplies 14-Jun-96 149.45 U-95 Mayland Gen. Merchandise Office supplies 18-Jun-96 584.90 U-97/1 to U-97/2 Alta Printing Services Calling cards 14-Jun-96 397.27 U-100/1 to U-100/2 Cauder Trading Office supplies 14-Jun-96 500.23 U-101/1 Cauder Trading Office supplies 14-Jun-96 821.82 U-102/2 Technical House of Repair Repair-air conditioner 17-Jun-96 136.36 U-103 Tricorn Dynamics, Inc. Photocopying exp.

17-Jun-96 850.44 U-1 04/1 to U-1 04/2 Rest. & Banquet Operations Despedida party-trainees 17-Jun-96 667.80 U-105 Universal Holidays, Inc. Airfare - Japan trainees 17-Jun-96 113,784.18

U-11 0/1

USA Trading Corporation Calculators 20-Jun-96 872.73 U-112/1 to U-112/2 Cauder Trading Office supplies 20-Jun-96 701.45 U-115/1 to U-115/2 TCS Manpower Services Manpower services 24-Jun-96 307.83 U-116 Tricorn Dynamics, Inc. Toner 20-Jun-96 595.45 U-117/1 to U-117/2 Oracle Systems Phils Inc. Reference Manuals 24-Jun-96 1i),346.00 U-118/1 to U-118/2 Universal Holidays, Inc. Airfare 24-Jun-96 1,317.55 U-120 Eroann Corporation Calendars 26-Jun-96 272.73 U-121/1 to U-122/2 Flower Express Flower arrangement 27-Jun-96 227.27 U-123/2, U-124 L.D. Buenaventura Trading Window envelopes/I.D.'s 27-Jun-96 309.09 U-125/1 to U-125/2 Savior Security Security services 27-Jun-96 1 763.64 subtotal p 51 003.17 p 131 '125.43 182,128.60 . ,  r-:"

page 3 of 4  q t) TOSHIBA INFORMATION EQUIPMENT (PHILS.}, INC. -versus­

COMMISSIONER OF INTERNAL REVENUE

COURT'S DISALLOWANCES ON CLAIMED INPUT VAT

ON PURCHASES OF CAPITAL GOODS AND SERVICES

1ST & 2ND QUARTERS OF 1996

10.) Purchases of capital goods with incorrect computation of input tax Exh.

Supplier Remarks T-74/1 to T-74/3 SNK Philippines. Inc. Bldg cons!. costs Per Claim Should be Disallowance U-51 U-Bix Corp.

Various chairs/tables Per Claim Should be Disallowance ;4o

ANNEX A

Input Tax Claimed · 1996 Total Date 1st Qtr.

2nd Qtr.

Disallowances 31-Jan-96 p 2,665,125.00 1,564,207.55 p 1 100 917.45 14-May-96 p 21),573.70 11 958.17 p 14 615.53 subtotal p 1,100,917.45 p 14,615.53 1,115,532.98 Total Disallowances p 2,059,258.50 page 4 of 4