GST Philippines, Inc. vs. Commissioner of Internal Revenue

AMENDED DECISION

ACOSTA, P.J.:

For resolution are respondent's Motion for Partial Reconsideration filed on August 28, 2007 and petitioner's Motion for Partial Reconsideration (Re: Decision dated 7 August 2007) filed on September 3, 2007, both seeking the reconsideration of this Court's Decision promulgated on August 7, 2007. The dispositive portion of the assailed Decision: "WHEREFORE, the instant Petition for Review is hereby PARTIALLY GRANTED. Accordingly, respondent is hereby ORDERED to REFUND or ISSUE A TAX CREDIT CERTIFICATE to petitioner in the reduced amount of NINE MILLION TWO HUNDRED THIRTY NINE THOUSAND ONE HUNDRED FORTY SIX PESOS and 82/100 (P9,239,146.82), representing unutilized input VAT paid on domestic purchases and importation of goods attributable to zero-rated sales for the period of April 1, 2000 to March 31, 2002.

1. it has complied with the registration requirements of a value-added taxpayer;

2. its purchases of goods and services were made in the course of its trade and business;

3. the said purchases were properly supported by value-added tax (VAT) invoices and/or official receipts and other documents;

4. the claimed input VAT payments are directly attributable to its zero- rated sales; and

5. the proceeds of the export sales were inwardly remitted and were duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP). However, the foregoing arguments have already been considered, weighed and resolved in the Court's Decision. Thus, the Court finds no genuine necessity to dwell on them in this Amended Decision. On the other hand, petitioner seeks to partially reconsider the same Decision, praying for the Court to consider the following disallowed items: 1.

Petitioner's sales to Philippine Associated Smelting and Refining Corporation (PASAR) amounting to P1,868,308.00 for failure to substantiate the same; 2.

Petitioner's sales to Philex Mining Corporation, Philex Gold Philippines, Inc., and Lepanto Consolidated Mining Company amounting to P86,006,387.36 for presenting only provisional Certifications from the Board of Investments (BOI); 3.

Input VAT in the aggregate amount of P1,671,902.49, detailed below: 1

(a) Input VAT on purchase of service supported only by account summary, statement of account, provisional receipt, invoice or monthly billing.

(d) Input VAT paid on purchase of goods and services without supporting documents.

(g) Input VAT representing technical fees paid to GSI Technologies, USA. 1 Decision, page 14.

P559 ,358. 95 P802,048.38 P310,495.16

To prove its sales to PASAR, petitioner presented a Schedule of Zero-rated Sales and the sales invoices and official receipts issued to PASAR attached as annexes to its Motion for Partial Reconsideration. On December 12, 2007, the Court required petitioner to present the original of the said documents for examination.2 In a Manifestation and Motion to Set Commissioner's Hearing filed on December 18, 2007, petitioner declared that it is unable to turn over the possession of the original copies to the Court but requested that it be allowed to present the originals during a Commissioner's hearing.3 On January 25, 2008, the Court denied petitioner's motion in open court followed by a confirming Resolution dated February 4, 2008, ordering petitioner to present the said documents to Mr. Roque S. Fado, the Court- commissioned Independent CPA, for examination and submission of a Supplemental Report.4 Thereafter, on February 26, 2008, the Independent CPA submitted his Supplemental Report. Petitioner subsequently filed a Supplemental Formal Offer of Evidence on March 31, 2008. It was admitted in a Resolution dated April 25, 2008 without any objection from respondent.

Petitioner's Motion for Partial Reconsideration was submitted for resolution on June 3, 2008. The supplemental evidence presented by petitioner aims to prove that its sales to PASAR are duly substantiated by sales invoices and official receipts. The results of the Independent CPA's verification of the supporting documents for

petitioner's sales to PASAR in the amount of P1,868,308.50 for the period April 1, 2000 to March 31, 2002 is shown below:s Exhibit AAAA ecce EEEE GGGG III!

KKKK MMMM 0000 QQQQ ssss uuuu wwww Invoice Date 5/ 15/2000 5/ 15/2000 6/8/2000 7/ 19/2000 7/ 19/2000 7/ 19/2000 1/23/2001 1/23/2001 4/4/2001 4/4/ 2001 9/ 13/2001 1/24/2002 TOTAL Amount p 273,580.00 115,450.00 45,001.00 44,950.00 115,450.00 250,690.00 230,650.00 90,155.00 144,757.50 241,612.50 242,662.50 73 350.00 p 1,868,308.50 Anent petitioner's sales to Philex Mining Corporation, Philex Gold Philippines, Inc., and Lepanto Consolidated Mining Company in the total amount of P86,006,387.36, petitioner avers that respondent's failure to controvert or rebut the evidence previously presented have established a preponderance of evidence in its favor.

Yet petitioner subsequently submitted a final Certification for Lepanto Consolidated Mining Companl and Philex Mining Corporation and Philex Gold Philippines, Inc. 7 However, the foregoing final Certifications cannot be considered by the Court for the reason that they were not formally offered as evidence. It has been held that a formal offer of evidence is necessary because judges are mandated to rest their findings of facts and their judgment only and strictly upon the evidence offered by the parties at the trial. Strict adherence to the said rule is not a trivial matter. However, such rule may be relaxed and evidence not formally offered to be admitted and considered by the trial court may be allowed, provided

the following requirements are present: (1) the same must have been duly identified by testimony duly recorded, and (2) the same must have been incorporated in the records of the case. 8 Accordingly, the newly issued Certifications issued by the BOI in favor of Lepanto, Philex Gold and Philex Mining, stating respectively, (1) the reason for the issuance of a "provisional" Certification, and that (2) such "provisional" Certification has become final, cannot be considered by this Court. This must be so because · such Certifications is neither offered in evidence, nor the circumstances of this case warrant the application of the exception on the above-stated rule. Thus, out of Petitioner's declared zero-rated sales of P280,156,225.96, only the amount of P196,018,147.10 are duly substantiated, the details of which follows: Period Sales to BOI Total Qualified CQv~r~d EXRO!l Si!l~~ Sal~s to PASAR Entities Zero-rat~d Sale~ 2nd Qtr-2000 p 955,301.69 p 434,031.00 p 1,389,332.69 3rd Qtr-2000 167,559.96 411,090.00 578,649.96 4th Qtr-2000 127,601.76 127,601.76 1st Qtr-2001 1,642,975.98 320,805.00 p 22,415,808.53 24,379,589.51 2nd Qtr-2001 3,070,247.25 386,370.00 27,148,307.36 30,604,924.61 3rd Qtr-2001 39,858,403.42 242,662.50 36,486,884.07 76,587,949.99 4th Qtr-2001 1,246,087.98 39,323,020.51 40,569,108.49 1st Qtr-2002 111471473.99 731350.00 2015601166.10 2117801990.09 TOTAL P48,215,652.03 p 1,868,308.50 P145,934,186.57 p 196,018,147.10 Inasmuch as only a portion of Petitioner's declared zero-rated sales is duly substantiated, only the portion of the input VAT claimed attributable to the substantiated zero-rated sales will be considered for refund. The rate to be applied is based on the volume of sales and is computed as follows:

Zero-rated sales Total Qualified % of Qualified Exhibit Pgriod Covgrgd jler rgturn~ ZerQ-rated Salgs Zero-ratgd Sales c 2nd Qtr-2000 p 25,014,154.82 p 1,389,332.69 5.5541860% D 3rd Qtr-2000 28,719,597.23 578,649.96 2.0148262% E 4th Qtr-2000 32,499,911.22 127,601.76 0.3926219% F 1st Qtr-2001 24,379,589.51 24,379,589.51 100.0000000% G 2nd Qtr-2001 30,604,924.61 30,604,924.61 100.0000000% H 3rd Qtr-2001 76,587,949.99 76,587,949.99 100.0000000% I 4th Qtr-2001 40,569,108.49 40,569,108.49 100.0000000% J 1st Qtr-2002 21,780,990.09 21,780,990.09 100.0000000% TOTAL p 280,156,225.96 p 196,018,147.10 69.967443% As regards the disallowed input VAT on petitioner's domestic purchases of services and goods in the amount of P559,358.95 and P802,048.38 under items (a) and (d), respectively, the Court stands firm on its position to disallow the said input VAT as the Court had painstakingly considered the documents presented and the arguments put forth by petitioner and respondent. Attached herewith is Annex "A" where the details of the questioned disallowed input VAT are shown. Upon taking a second look at the supporting documents of petitioner's taxable sales, the Independent CPA noted the following: 9 "Instead of using SIR Form 160010, the Company included in its VAT returns the withholding VAT remitted in behalf of GS Technologies, USA representing technical fees of 1% payable to GS Technologies. The corresponding withholding VAT remitted was claimed as part of the Company's input tax credits in the following month. Payments made by the Company to GS Technologies, USA totaled Php3,514,001.41 covering the period from April 1, 2000 to March 31, 2002. These payments are not covered by Sales Invoices or Official receipts but supported by Bank remittances."

In Commissioner of Internal Revenue vs. Manila Mining Corporation11, the Supreme Court declared in no unclear terms the following statements: 'For a judicial claim for refund to prosper, however, respondent must not only prove that it is a VAT registered entity and that it filed its claims within the prescriptive period. It must 9 Exhibit "LL", page 2. 10 Monthly Remittance Return of Value-added Tax and Other Percentage Taxes Withheld.

substantiate the input VAT paid by purchase invoices or official receipts."

Moreover, Section 4.105-5(e) of Revenue Regulations No. 7-95 provides an additional document to substantiate the payment of input VAT from payments made to non-residents, to wit: "SECTION 4.104-5. Substantiation of claims for input tax credit.- XXX XXX XXX

(e) Input tax from payments made to non-residents shall be supported by a copy of the VAT declaration/return filed by the resident licensee/lessee in behalf of the nonresident licensor/lessor evidencing remittance of the VAT due." The appropriate document for the aforementioned requirement is BIR Form No. 1600 Monthly Remittance Return of value-added tax and other percentage taxes withheld. Petitioner failed to submit the said document; ergo, it is likewise proper to disallow the input VAT on petitioner's payments to GSI Technologies for failure to substantiate the same. Further, bank remittances do not show the amount of value- added tax paid therein, and the Court could not verify the inclusion of the withholding VAT remitted in behalf of GSI Technologies, USA in its VAT Returns. In view of the foregoing, petitioner's valid creditable input tax is P12,314,223.50, computed as follows: Period Covered 2nd Qtr-2000 3rd Qtr-2000 4th Qtr-2000 1st Qtr-2001 2nd Qtr-2001 3rd Qtr-2001 4th Qtr-2001 1st Qtr-2002 TOTAL Valid In~ut VAT p 4,055,363.89 275,036.98 3,393,939.91 7,365,346.43 2,500,812.98 1,454,647.66 1,496,759.86 3,517,249.05 p 24,059,156.76 Out~utVAT p 2,781,894.70 2,255,198.77 2,083,367.36 1,781,226.36 1,560,125.98 364,829.62 90,087.94 260,302.20 p 11,177,032.93 Input VAT attributable to declared zero- rated sales p 1,273,469.19 (1,980,161.79) 1,310,572.55 5,584,120.07 940,687.00 1,089,818.04 1,406,671.92 3,256,946.85 p 12,882,123.83 % of Qualified Zero-rated Sales 5.5541860% 2.0148262% 0.3926219% 100.0000000% 100.0000000% 100.0000000% 100.0000000% 100.0000000% 69.967443% Input VAT attributable to qualified zero- rated sales p 70,730.85 (39,896.82) 5,145.59 5,584,120.07 940,687.00 1,089,818.04 1,406,671.92 3,256,946.85 p 12,314,223.50 Taking into account the foregoing changes, petitioner is correspondingly entitled to a refund or issuance of a tax credit certificate in the adjusted amount of P9,332,676.29 for the period April 1, 2000 to March 31, 2002, computed as follows: Refundable input VAT Less: Tax Credit Certificate issued by Respondent Input VAT still refundable p 12,314,223.50 2,981,547.21 p 9,332,676.29

WHEREFORE, premises considered, respondent's Motion for Partial Reconsideration is hereby DENIED;

while petitioner's Motion for Partial Reconsideration is hereby PARTIALLY GRANTED. Accordingly, the Court's Decision promulgated on August 7, 2007 is hereby MODIFIED as follows: "WHEREFORE, the instant Petition for Review is hereby PARTIALLY GRANTED. Accordingly, respondent is hereby ORDERED to REFUND or ISSUE A TAX CREDIT CERTIFICATE to petitioner in the reduced amount of NINE MILLION THREE HUNDRED THIRTY TWO THOUSAND SIX HUNDRED SEVENTY SIX PESOS and 29/100 (P9,332,676.29), representing unutilized input VAT paid on domestic purchases and importation of goods attributable to zero-rated sales for the period of April 1, 2000 to March 31, 2002.

CAESAR ~NOVA

Associate Justice

CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, it is hereby certified that the conclusions in the above Amended Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. L-~-~ ERNESTO D. ACOSTA Presiding Justice Chairman, First Division ANNEXA

DETAILS OF QUESTIONED DISALLOWED INPUT VAT

PER COURT'S VERIFICATION

(a) Input VAT on purchase services supported only by account summary, statement of account, provisional receipt, invoice and monthly billing

2ND QUARTER 2000

Supplier Exhibit Reference Total Amount Input VAT PILl PI NO TELEPHONE CORP 00-286 p 1,930.50 p 175.50 PILl PI NO TELEPHONE CORP 00-287 2,493.65 183.73 PLOT 00-60 44000068726 2,870.64 204.29 PLOT 00-61 4400004991 7 1,406.63 127.88 PLOT 0 0-62 44000049765 1,363.79 123.98 PLOT 00-117 25002212562 3,313.59 165.78 PLOT 0 0-1 18 25002211640 1,624.41 147.67 PLOT 0 0-119 25002211638 1,414.31 128.57 PLOT 00-120 25002211639 1,414.27 128.57 PLOT 00-121 25002213468 1,160.50 105.50 PLOT 00-122 25002211641 1,160.50 105.50 PLOT 0 0-123 25002212561 1,915.51 143.26 PLOT 0 0-124 25002212560 1,526.03 138.73 PLOT 00-142 25002213103 8,762.39 165.52 PLOT 00-164 30002054892 705.89 52.77 PLOT 00-231 44000092871 1,420.24 129.11 PLOT 00-232 44000092717 1,165.33 105.94 PLOT 00-233 44000111787 2,133.71 187.71 PLOT 00-319/320 various 3,618.26 328.93 PLOT 0 0 -321 19002973914 3,440.97 312.81 PLOT 00-322/323 various 4,531 .36 38202 PLOT 00-324 44000155074 1,992.35 181 .12 PLOT 00-325 44000136174 1,220.86 110.99 PLOT 00-326 44000136325 1,424.95 129.54 PLOT 00-375 25002359675 3,902.81 177.91 PLOT 00-376 25002360208 4,632.30 149.28 PLOT 00-377 25002358766 1,173.12 106.65 PLOT 00-378 25002358765 1,457.31 132.48 PLOT 00-379 25002358763 1,462.81 132.98 PLOT 00-380 25002358764 1,429.81 129.98 PLOT 00-381 25002360567 1,195.54 108.69 PLOT 00-382 25002359673 1,544.37 140.40 PLOT 00-383 25002359674 1,731.42 155.30 PLOT 0 0-435 19003082082 1,758.83 159.89 PLOT 00-436 19002069906 1,780.39 161 .85 PLOT 0 0-452 19003114003 4,753.80 193.10 BLANVIL 00-29 37244 900.00 79.55 CITIMOTORS 0 0-315 318594 4,891.30 444.66 CITIMOTORS DD-475 321345 3,393.33 308.48 CITIMOTORS, INC DD-56 316633 770.00 70.00

FELIX MARIE CORP

DD-29 1305 3,527.00 317.00 FOODLINK RESOURCES & MGT, IN DD-465 various 3,166.00 287.82

SANDEN AIRCON SERVICES CO

DD-261 12601 2,740.00 249.09

VETERANS SECURITY AGENCY

DD-1 43

4367 14,490.00 1,317.27

CATHAY PACIFIC STEEL CORP

00-429 0454 25,555.00 2,323.18 Subtotal p 140,265.78 p 11 ,110.98

3RD QUARTER 2000

PILIPINO TELEPHONE

EE-20 12440041689 p 4,847.49 p 265.18

CATHAY PACIFIC STEEL CORP

EE-42 0457 75,882.01 6,898.35

CATHAY PACIFIC STEEL CORP

EE-11 8

0459 315,838.45 28,712.59 INFOCOM EE-121 32689 1,056.00 96.00 ~ 1 of 10 ANNEXA

PAL PILOT'S RETIREMENT FUND

EE-15 2756 129,620.52 11 ,783.68

WISPY TRADING COMPUTER

EE-21 1686 600.00 54.55 PLOT EE-39 44000180284 1,453.95 132.18 PLOT EE-40 44000199042 1,810.47 155.82 PLOT EE-41 44000180132 1,216.95 110.63 PLOT EE-75 25002433555 2,090.12 190.01 PLOT EE-76 25002433553 1,617.12 147.01 PLOT EE-77 25002435305 1,284.55 116.78 PLOT EE-78 25002434442 2,239.05 144.28 PLOT EE-79 25002433554 1,485.12 135.01 PLOT EE-80 25002434441 1,511.52 137.41 PLOT EE-81 25002433556 1,218.13 110.74 PLOT EE-83 25002434962 5,466.22 159.32 PLOT EE-108 19003178975 2,000.28 181 .84 PLOT EE-109 19003166808 1,781 .05 161 .91 PLOT

EE-11 0

19003210837 1,990.65 180.97 PLOT EE-120 25002434443 4,641 .63 201.44

ABOY'S RESTAURANT

EE-135 78564 290.40 26.40

BATHALA MKTG

EE-37 51959 7,269.66 660.88

HALICZ ENTERPRISES

EE-138 018072 492.00 44.73

KODAK EXPRESS

EE-133 5651 91 .50 8.32

PHILEX INSURANCE

EE-160 11238 846.29 69.00

PHILEX INSURANCE

EE-161 11240 551 .93 45.00

SHARP TRAVEL CORP

EE-73 10931 4,161 .00 363.27

PILIPINO TELEPHONE

EE-248 12440041216 1,916.10 166.49

PAL PILOT'S RETIREMENT FUND

EE-174 2767 129,620.52 11 ,783.68

REPUBLIC COMMODITIES CORP

EE-246 6850 39,400.00 3,581 .82 PLOT EE-182 44000225066 1,507.48 137.04 PLOT EE-183 44000224914 1,336.56 121 .51 PLOT EE-203 44000243885 2,130.27 182.91 PLOT EE-257 25002509318 1,616.67 146.97 PLOT EE-263 25002510732 6,620.90 186.23 PLOT EE-267 25002509319 1,541 .32 140.12 PLOT EE-268 25002509320 2,037.97 185.27 PLOT EE-269 25002509321 1,235.66 112.33 PLOT EE-271 25002511077 1,478.02 112.33 PLOT EE-272 25002510209 1,924.12 154.52 PLOT EE-276 19003277047 1,767.59 160.69 PLOT EE-277 19003264914 1,844.68 167.70

BLANVIL FOODS

EE-243 40453 605.00 55.00

FBI MACHINE SHOP

EE-207 1682 8,031.00 730.08

FBI MACHINE SHOP

EE-224 1686 16,374.00 1,488.55

HONDA CARS PASIG

EE-284 34658 1,751.38 159.22

CATHAY PACIFIC STEEL CORP

EE-421 0460 315,838.45 28,712.59

PAL PILOT'S RETIREMENT FUND

EE-300 0147 129,620.52 11 ,783.68

PAL PILOT'S RETIREMENT FUND

EE-337 0155 5,336.93 485.18 PLOT EE-301 25002510211 4,325.24 173.82 PLOT EE-355 44000270665 1,356.36 123.31 PLOT EE-356 44000270817 1,560.35 141 .85 PLOT EE-357 44000289637 2,365.36 206.65 PLOT EE-399 25002588127 3,334.25 144.31 PLOT EE-400 25002586747 1,960.70 178.25 PLOT EE-401 25002586745 1,625.20 147.75 PLOT EE-402 25002587621 1,661.92 151 .08 PLOT EE-403 25002588465 1,280.68 116.43 PLOT EE-404 25002586748 1,269.47 115.41 PLOT EE-405 25002587622 1,736.87 157.90 PLOT EE-420 25002587623 4,584.78 181.08

PHILEX INSURANCE

EE-423 11295 607.98 49.57

PHILEX INSURANCE

EE-424 11326 551 .93 45.00

PHILEX INSURANCE

EE-425 11325 551 .93 45.00 2 of 10

ANNEX A

PHILEX INSURANCE

EE-426 11324 27,712.43 2,259.47 Subtotal p 1 ,303,37 4.65 p 116,284.09 4th QUARTER 2000 PLOT FF-60 19003363945 1,875.91 170.54 PLOT FF-61 19003405878 1,355.40 123.22 PLOT FF-70 44000336359 2,006.30 182.39 PLOT FF-71 44000317478 1,542.17 140.20 PLOT FF-72 44000317330 1,341 .00 121 .91 PLOT FF-73 4400315755 4,921 .65 287.53 PLOT FF-144 25002666609 2,950.44 212.03 PLOT FF-145 25002667452 1,305.91 118.72 PLOT FF-146 25002666608 1,793.17 163.02 PLOT FF-147 25002665731 1,550.53 140.96 PLOT FF-148 25002665732 1,550.53 140.96 PLOT FF-149 25002665734 1,930.00 175.46 PLOT FF-149 25002665734 1,271 .36 115.58 PLOT FF-150 25002665731 6,380.57 28605

FBI MACHINE SHOP & SERVICES

FF-26 1707 35,600.00 3,236.36

KODAK EXPRESS

FF-17 7933 47.70 4.34 MICROPHASE FF-19 7523 500.00 45.45

PILIPINO TELEPHONE CORP

FF-91 020385514 2,212.52 201 .13

VETERANS SECURITY AGENCY

FF-191 5797 16,286.40 1,480.58 PLOT FF-212 19003463220 1,926.23 175.11 PLOT FF-213 19003505124 2,220.77 192.84 PLOT FF-262 25002747099 1,825.95 124.50 PLOT FF-263 25002746263 1,708.62 155.33 PLOT FF-264 25002745389 1,629.42 148.12 PLOT FF-265 25002745390 1,629.42 148.13 PLOT FF-266 25002745391 1,629.42 148.13 PLOT FF-267 25002745392 1,335.57 121.42 PLOT FF-268 25002746264 2,562.70 168.35 PLOT FF-278 25002746766 3,675.56 163.08

HONDA CARS PASIG

FF-182 159228 729.56 66.27

HONDA CARS PASIG

FF-192 159729 729.56 66.32

KODAK EXPRESS

FF-183 8683 376.00 34.18

SYCIP SALAZAR LAW OFFICE

FF-330 43738 35,600.00 3,236.36 PLOT FF-285 25002746265 3,172.22 282.21 PLOT FF-297 44000391050 3,004.51 247.52 PLOT FF-298 44000370422 2,203.17 200.29 PLOT FF-299 44000372147 1,572.49 142.95 PLOT FF-300 44000371999 1,865.29 126.24 PLOT FF-349 44000445340 2,256.57 205.14 PLOT FF-350 19003606203 2,288.37 206.59 PLOT FF-351 44000427151 1,515.24 137.75 PLOT FF-352 19003564306 1,968.04 178.91 PILl PI NO TELEPHONE CORP FF-353 022613089 1,212.20 110.20

VETERANS SECURITY AGENCY

FF-343 SA 16,286.40 1,480.58 Subtotal p 181 ,344.84 p 15,612.95

1ST QUARTER 2001

FAIRVIEW REALTY

GG-123 069 p 7,128.00 p 648.00

FAIRVIEW REALTY

GG-143 2,772.00 252.00

PILIPINO TELEPHONE CORP

GG-72 023747026 4,699.17 208.81

PILIPINO TELEPHONE CORP

GG-73 023747024 1,643.91 70.20

PILIPINO TELEPHONE CORP

GG-74 023747025 7,279.06 341.44

PILIPINO TELEPHONE CORP

GG-94 023747023 1,847.01 167.91

PILIPINO TELEPHONE CORP

GG-95 023747022 1,930.50 175.50 PLOT GG-18 25002825306 2,380.95 216.45 PLOT GG-19 25002826122 1,476.43 134.22 PLOT GG-20 25002524491 1,719.11 156.28 @t) 3 of 10 ANNEXA PLOT GG-21 25002824493 1,408.56 128.05 PLOT GG-22 25002824492 1,719.11 156.28 PLOT GG-23 25002825305 1,745.51 158.68 PLOT GG-24 25002824490 1,763.11 160.28 PLOT GG-25 25002525793 4,176.49 175.18 PLOT GG-26 25002825307 2,919.86 230.63 PLOT GG-27 4400479941 1,835.48 166.86 PLOT GG-28 44000481611 1,682.89 152.99 PLOT GG-29 44000481469 1,321.42 120.13 PLOT GG-30 19003706257 2,097.21 190.66 PLOT GG-31 19003666102 2,070.39 188.22 PLOT GG-32 44000499667 3,433.21 189.66 PLOT GG-132 25002905112 3,633.13 20880 PLOT GG-133 25002904287 1,392.02 126.55 PLOT GG-134 25002904284 1,698.79 154.44 PLOT GG-135 25002904285 1,698.79 154.44 PLOT GG-136 25002904286 1,698.79 154.44 PLOT GG-137 25002905110 1,773.59 161 .24 PLOT GG-138 25002905599 5,653.85 182.66 PLOT GG-139 25002905929 1,400.82 127.35 PLOT GG-140 25002905111 1,831 .60 165.88 HONOACARS GG-71 167173 1,783.69 162.15

MEGAMILLE CAL TEX STATION

GG-68 06878 1,790.00 162.73

PHILEX INSURANCE

GG-148 11474 551 .93 45.00

PHILEX INSURANCE

GG-149 11472 600.99 49.00

SHARP TRAVEL SERVICES

GG-147 14682 8,722.00 766.55

CATHAY PACIFIC STEEL CORP

GG-190/191 59714/0461 315,838.45 28,712.59

CATHAY PACIFIC STEEL CORP

GG-213/214 60706/0462 315,838.45 28,712.59

FAIRVIEW REALTY

GG-193 070 3,036.00 276.00

TITONIC MANUFACTURING

GG-194 0919 32,300.00 2,936.36

PILIPINO TELEPHONE CORP

GG-297 024873193 247.95 22.54

PILIPINO TELEPHONE CORP

GG-298 024873194 2,792.59 253.78

PILIPINO TELEPHONE CORP

GG-299 024873192 721 .10 65.55

PILIPINO TELEPHONE CORP

GG-300 024873191 472.33 42.94 PLOT GG-204 19003806429 2,123.61 193.06 PLOT GG-277 25002983914 3,602.19 208.80 PLOT GG-278 25002983141 1,852.73 168.43 PLOT GG-279 25002983142 1,726.22 156.93 PLOT GG-280 25002983143 1,726.22 156.93 PLOT GG-281 25002983144 1,414.35 128.58 PLOT GG-282 25002983912 1,752.62 159.33 PLOT GG-283 25002984709 1,591 .91 128.58 PLOT GG-284 25002983913 2,787.77 182.18 PLOT GG-285 25002984386 3,936.05 182 06 PLOT GG-286 44000536223 1,735.27 157.75 PLOT GG-287 44000534552 1,917.32 174.30 PLOT GG-288 44000536079 1,446.23 131.48 PLOT GG-289 44000554272 2,301 .22 223.08 HONOACARS GG-167 163936 745.87 67.80

SILVER SPUR

GG-164 10336 8,728.00 793.45

VETERANS SECURITY AGENCY

GG-199 7008 16,467.36 1,497.03

VETERANS SECURITY AGENCY

GG-314 7143 16,286.40 1,480.58

CATHAY PACIFIC STEEL CORP

GG-4481 05051 27,420.65 2,492.79

CATHAY PACIFIC STEEL CORP

GG-449 59708 17,505.81 1,591.44

FAIRVIEW REALTY

GG-404 072 2,640.00 240.00 PLOT GG-361 19003866974 4,144.65 376.79 PLOT GG-362 19003905095 2,594.85 235.90 PLOT GG-509 25003062657 2,102.11 191 .10 PLOT GG-510 25003061881 1,676.42 152.40 PLOT GG-511 25003061882 1,637.92 148.90 PLOT GG-512 25003063128 3,562.54 185.87 4 of 10 ANNEXA PLOT GG-513 25003062655 1,717.12 156.10 PLOT GG-514 25003061884 1,342.48 122.04 PLOT GG-515 25003061883 2,110.92 191 .90 PLOT GG-516 25003063449 1,903.01 123.09 PLOT GG-517 25003032656 2,367.82 214 03

CATHAY PACIFIC STEEL CORP

GG-451 0507 31 ,174.46 2,834.04

FBI MACHINE SHOP & SERVICES

GG-495 1758 37,816.00 3,437.82

PAL PILOT'S RETIREMENT FUND

GG-360 305 122,778.12 11 ,161 .65 Subtotal p 1,101 ,162.46 p 98,078.22

2ND QUARTER 2001

PLOT HH-11 19004003280 p 2,521 .08 p 229.19 PLOT HH-12 44000591000 1,757.37 159.76 PLOT HH-13 44000591140 1,719.43 156.31 PLOT HH-14 44000589518 2,092.22 190.20 PLOT HH-15 44000608511 3,040.75 276.43 PLOT HH-21 19003965155 1,988.36 180.76 PLOT HH-103 25003141479 1,703.92 154.90 PLOT HH-104 25003142724 3,290.62 165.90 PLOT

HH-1 05

25003142260 2,265.92 168.69

MARBHEL AIRCONDITIONING

HH-57 0076 9,000.00 818.18

PHILEX INSURANCE

HH-107 11549 286,608.14 23,019.70

PHILEX INSURANCE

HH-1 08

11550 97,093.49 7,916.34

PHILEX INSURANCE

HH-109 11551 105,429.94 8,596.00

PHILEX INSURANCE

HH-106 11548 10,118.63 825.00

VALLE VERDE COUNTRY CLUB

HH-233 000033504 308.00 28.00 PLOT HH-134 44000645436 1,958.19 178.02 PLOT HH-135 44000662950 2,501 .71 226.73 PLOT HH-136 44000645576 1,691 .04 153.73 PLOT HH-137 44000643952 1,776.70 161 .52 PLOT HH-146 19004064341 1,988.36 180.76 PLOT HH-154 25003218903 2,098.81 167.16 PLOT HH-155 25003219468 1,862.26 133.83 PLOT HH-156 25003219245 3,677.32 202.58 PLOT HH-157 25003218905 1,746.57 158.78 PLOT HH-158 25003218374 1,709.51 155.41 PLOT HH-159 25003218376 1,400.74 127.34 PLOT HH-160 25003218373 1,742.51 158.41 PLOT HH-161 25003218375 2,001 .01 181 .91 PLOT HH-162 30002998079 1,291.72 117.43 PLOT HH-163 44000700657 1,664.31 151.30 PLOT HH-164 44000717981 2,170.07 197.28 PLOT HH-165 44000699043 1,932.07 175.65 PLOT HH-166 44000700517 1,561 .11 141 .92 PLOT HH-217 19004102470 2,309.44 209.95 PLOT HH-218 25003218907 2,162.38 188.36

ABOY'S RESTAURANT

HH-141 98054 538.10 32.50

HONDA CARS

HH-144 169590 6,570.00 597.27

HONDA CARS PASIG

HH-214 18128 2,123.27 193 02

HONDA CARS PASIG

HH-238 173646 1,590.24 144.57

MEGAMILLE CAL TEX STATION

HH-245 56035 1,530.00 139.09

PAL PILOT'S RETIREMENT FUND

HH-119 5041 122,778.12 11 ,161 .65

W ISPY TRADING CORP

HH-223 10775 150.00 59.09

CATHAY PACIFIC STEEL

HH-289 0515 15,929.54 1,448.14

CATHAY PACIFIC STEEL

HH-290 0514 47,909.18 4,355.38

CATHAY PACIFIC STEEL

HH-291 0513 72,296.56 6,572.41

CATHAY PACIFIC STEEL

HH-293 0516 339,526.33 30,866.03 PLOT HH-300 44000756175 1,728.06 157.10 PLOT HH-301 44000756038 1,494.38 135.85 PLOT HH-302 44000773119 2,318.60 210.78 PLOT HH-303 44000754585 1,889.76 171.80 ~ 5 of 10 ANNEXA PLOT HH-366 25003290231 1,787.71 162.52 PLOT HH-367 25003289698 1,714.32 155.85 PLOT HH-368 25003289697 1,714.32 155.85 PLOT HH-369 25003289700 1,404.65 127.70 PLOT HH-370 25003289699 2,396.32 217.85 PLOT HH-375 25003290232 2,123.02 161 .39 PLOT HH-376 25003290569 3,839.18 210.31 PLOT HH-377 25003290233 2,523.42 173.81 CITIMOTORS HH-386 346937 2,739.71 249.06

FBI MACHINE SHOP & SERVICES

HH-274 1781 35,600.00 3,236.36

FBI MACHINE SHOP & SERVICES

HH-342 1759 35,600.00 3,236.36

HONDA CARS

HH-354 179004 2,046.00 186.00

PAL PILOT'S RETIREMENT FUND

HH-259 070 122,778.12 11 ,161 .65 Subtotal p 1,402,822.61 p 121 ,932.82

3RD QUARTER 2001

GLOBE TELECOM

11-60 SA2550251 p 1,898.78 p 161 .22

PAL PILOT'S RETIREMENT FUND

11-24 3305 125,803.12 11,436.65 PLOT 11-64 19004298656 2,250.96 204.63 PLOT 11-65 19004262428 2,075.94 188.72 PLOT 11-79 25003362662 1,423.16 129.38 PLOT 11-80 25003361582 1,423.16 129.38 PLOT 11-81 25003361580 22.75 2 07 PLOT 11-82 25003361579 3,451 .39 313.76 PLOT 11-83 25003361581 2,295.87 208.72 PLOT 11-84 25003362105 1,844.41 167.67 PLOT 11-91 25003362106 1,774.67 161 .33 PLOT 11-92 25003362441 3,360.31 217.90 PLOT 11-93 44000829269 2,683.85 243.99 PLOT 11-94 44000812314 1,697.58 154.33 PLOT 11-95 44000810725 1,865.95 169.33 PLOT 11-96 44000812177 1,503.23 136.66 PLOT 11-97 3003173026 628.39 62.04 PLOT 11-145 19004361211 2,102.97 191 .18 PLOT 11-146 25003362107 2,603 01 220.71

HONDA CARS

11-78 180541 2,823.27 256.66

PRUDENTIAL GUARANTEE

11-162 11607 846.28 69.00

PRUDENTIAL GUARANTEE

11-163 11608 551 .93 45.00

VETERANS SECURITY AGENCY

11-59 8225 18,212.40 1,655.67

CATHAY PACIFIC STEEL CORP

11-274 0538 45,731.52 4,157.41

PAL PILOT'S RETIREMENT FUND

11-180 3311 125,803.12 11,436.65 PLOT 11-194 19004396966 2,343.77 213.07 PLOT 11-195 30003268140 698.25 63.48 PLOT 11-264 25003434078 1,827.10 166.10 PLOT 11-265 25003434079 1,827.10 166.10 PLOT 11-266 25003434081 1,496.44 136.04 PLOT 11-267 25003434080 1,948.10 177.10 PLOT 11-268 25003435157 1,830.58 138.13 PLOT 11-269 25003434604 3,693.25 176.74 PLOT 11-270 25003434940 4,293.71 218.75 PLOT 11-271 25003434603 1,908.48 173.50 PLOT 11-299 19004460749 2,198.35 199.85

AIRFREIGHT 2100

11-232 524345 1,775.40 161.40

VETERANS SECURITY AGENCY

11-207 9052 15,066.76 1,369.71

CATHAY PACIFIC STEEL CORP

11-408/409 59734/0568 339,526.33 30,866.03

PAL PILOT'S RETIREMENT FUND

11-367 3329 100,958.00 9,178.00 PLOT 11-372 30003366372 1,261 .70 66.85 PLOT 11-373 25003434605 2,299.43 190.53 PLOT 11-376 19004496498 2,854.26 240.30 PLOT 11-377 44000868703 1,902.79 172.98 PLOT 11-378 44000870145 1,516.43 137.86 (if) 6 of 10

ANNEX A

PLDT 11-379 44000886994 2,558.85 232.62 PLDT 11-380 44000948873 2,597.21 228.75 PLDT 11-381 44000930578 1,867.80 169.80 PLDT 11-382 44000932019 1,554.55 141 .32 PLDT 11-383 44000870282 1,776.57 161 .51 PLDT 11-384 44000932156 1,812.80 164.80 PLDT 11-437 2500035085 3,768.72 162.45 PLDT 11-444 25003509039 2,093.32 130.29 PLDT 11-445 25003507959 1,483.63 134.88 PLDT 11-446 25002508484 2,200.44 200.04 PLDT 11-447 25003507958 1,859.37 169.03 PLDT 11-448 25003507957 1,738.37 158.03 PLDT 11-449 25003507956 1,738.37 158.03 PLDT 11-450 25003508486 2,333.12 190.40 PLDT 11-471 25003508822 3,989.21 192.72

CATHAY PACIFIC STEEL CORP

11-433 0569 31 ,714.02 2,883.09

COSMOPOLITAN CLEANERS

11-362 3065 165.00 15.00

FBI MACHINE SHOP & SERVICES

11-432 1797 18,745.63 1,704.15

SEAHAWK TRANSPORT

11-369 815 26,199.81 600.00 Subtotal p 956,101 .04 p 84,129.49

4TH QUARTER 2001

PAL PILOT'S RETIREMENT FUND

JJ-15 3399 p 94,908.00 p 8,628.00 PLDT JJ-31 44001012196 2,437.24 221 .57 PLDT JJ-32 44000995629 1,711 .17 155.56 PLDT JJ-33 44000989702 3,420.16 210.92 PLDT JJ-34 44000994080 1,766.17 160.56 PLDT JJ-35 44001012141 4,069.54 369.96 PLDT JJ-36 44000995494 1,636.44 148.77 PLDT JJ-107 25003582041 3,907.16 220.45 PLDT JJ-108 25003581274 1,738.37 158.03 PLDT JJ-109 25003581273 1,738.37 158.03 PLDT

JJ-11 0

25003581275 2,029.87 184.53 PLDT JJ-111 25003581276 1,453.93 132.18 PLDT JJ-112 25003582233 1,520.35 138.21 PLDT JJ-113 25003581728 2,415.93 162.80 PLDT JJ-114 25003581729 2,674.62 213.11 PLDT JJ-115 25003581727 1,869.26 169.93 CITIMOTORS, INC JJ-125 to JJ-127 4,648.76 497.74

CATHAY PACIFIC STEEL CORP

JJ-157 62251 15,742.31 1,431 .12

CATHAY PACIFIC STEEL CORP

JJ-157 62251 18,506.02 1,682.37

CATHAY PACIFIC STEEL CORP

JJ-178/179 0579 339,526.33 30,866.03

PAL PILOT'S RETIREMENT BOARD

JJ-133 3348 97,933.00 8,903.00 PLDT JJ-137 3003566712 745.37 63.47 PLDT JJ-143 44001077037 2,672.86 207.18 PLDT JJ-144 44001060472 1,738.37 234.41 PLDT JJ-145 44001060337 1,467.20 158.03 PLDT JJ-146 44001058923 1,889.99 133.38 PLDT JJ-147 44001054545 2,107.52 171 .82 PLDT JJ-158 44001076982 2,400.08 218.19 PLDT JJ-183 25003651825 1,801 .98 163.82 PLDT JJ-184 25003651453 1,501 .76 136.52 PLDT JJ-185 25003651451 1,752.54 159.32 PLDT JJ-186 25003651450 1,752.54 132.82 PLDT JJ-187 25003651452 2,782.59 252.96 PLDT JJ-188 25003651824 1,838.41 167.13 PLDT JJ-189 25003652317 1,503.30 136.66 PLDT JJ-190 25003652130 3,356.78 193.37

FBI MACHINE SHOP & SERVICES

JJ-150 1815 24,210.78 2,200.98

HONDA CARS PASIG

JJ-167 189648 1,164.38 105.82

VETERANS SECURITY AGENCY

JJ-136 3374 19,426.56 1,766.05 ((iJ ) 7 of 10 ANNEXA

VETERANS SECURITY AGENCY

JJ-171 3425 18,212.40 1,655.67

PAL PILOT'S RETIREMENT FUND

JJ-21 0

3357 979,333.00 8,903.00

GLOBE TELECOM

JJ-289 25227825 1,791 .16 132.58 PLOT JJ-207 23003651826 2,394.97 167.27 PLOT JJ-208 30003666395 751 .77 64 01 PLOT JJ-224 44001127023 1,758.45 159.86 PLOT JJ-225 44001126890 1,492.82 135.71 PLOT JJ-226 44001121223 2,131 .33 193.76 PLOT JJ-227 4401125508 2,205.68 200.52 PLOT JJ-228 44001142879 2,341 .74 212.89 PLOT JJ-260 25003722042 1,891.70 171.97 PLOT JJ-261 25003721684 1,434.96 130.45 PLOT JJ-262 25003721683 2,487.46 226.13 PLOT JJ-263 25003721682 1,731 .36 139.23 PLOT JJ-264 25003721681 1,751.56 159.23 PLOT JJ-265 25003722043 2,990.24 201 .90 PLOT JJ-266 25003722535 1,544.96 140.45 PLOT JJ-267 25003722041 1,802.06 162.88 PLOT JJ-268 25003722349 34,846.70 177.05

BIG 5 PHOTO

JJ-251 21264 165.75 15.07

HONDA CARS

JJ-276 193403 4,289.69 389.97 Subtotal p 1,747,115.77 p 75,154.40

1ST QUARTER 2002

PAL PILOT'S RETIREMENT FUND

KK-14 3373 p 97,933.00 p 8,903.00

PAL PILOT'S RETIREMENT FUND

KK-65 3383 97,933.00 8,903.00 PLOT KK-10 44001142828 2,461 .07 223.73 PLOT KK-46 44001190921 4,143.96 176.21 PLOT KK-47 44001201226 4,569.39 202.51 PLOT KK-48 44001191752 3,013.28 138.22 PLOT KK-59 44001188312 4,258.07 193.34 PLOT KK-60 44001191859 3,513.03 159.51 PLOT KK-61 44001201186 5,031 .80 233.70 PLOT KK-68 25003793042 3,486.10 180.22 PLOT KK-69 25003792742 1,804.83 164.08 PLOT KK-70 25003792396 1,750.93 159.18 PLOT KK-71 25003792398 2,069.93 188.18 PLOT KK-72 25003792399 1,543.34 140.30 PLOT KK-73 25003792397 1,750.93 159.18 PLOT KK-74 25003793225 1,434.44 130.40 PLOT KK-75 25003792741 1,795.32 163.21

HONDA CARS PASIG

KK-19 194047 3,329.39 302.67

VETERANS SECURITY AGENCY

KK-51 3731 19,426.56 1,766.05 PLOT KK-160 25003792743 2,591 .29 200.32 PLOT KK-173 44001251022 2,417.12 219.74 PLOT KK-174 44001251060 2,386.10 216.92 PLOT KK-175 44001241862 1,882.38 171 .13 PLOT KK-176 44001242609 1,591 .19 144.65 PLOT KK-177 44001242704 1,750.93 159.18 PLOT KK-178 44001239549 2,122.41 192.95 PLOT KK-233 75000241431 785.98 63.91 PLOT KK-254 25003862878 2,171 .66 178.39 PLOT KK-255 25003862548 4,276.93 360.76 PLOT KK-256 25003862549 1,543.36 140.31 PLOT KK-257 25003862547 1,740.60 159.18 PLOT KK-258 25003862877 1,837.17 165.33 PLOT KK-259 25003863349 1,644.14 130.81 PLOT KK-260 25003863169 3,047.46 188.56 PLOT KK-269 25003862876 1,832.04 166.55

PHILEX INSURANCE

KK-277 11741 551 .93 45.00

PHILEX INSURANCE

KK-278 11726 15,220.93 1,240.98 r7:tf1) 8 of 10

ANNEX A

PHILEX INSURANCE

KK-280 11738 3,000.32 241.00

PHILEX INSURANCE

KK-279 11745 3,181.37 135.21

PAL PILOT'S RETIREMENT FUND

KK-290 3398 97,933.00 8,903.00 PLOT KK-286 75000278215 703.03 63.91 PLOT KK-316 44001290190 1,492.60 137.13 PLOT KK-317 44001298643 2,202.79 202.35 PLOT KK-318 44001298606 2,349.05 215.35 PLOT KK-319 44001287127 2,099.33 190.85 PLOT KK-320 44001290286 1,731.48 157.41 PLOT KK-321 44001289445 1,943.23 178.43 Subtotal p 427,278.19 p 37,056.00 Total p 7,119,199.56 p 559,358.95

(d) Input VAT paid on purchase of goods and services without supporting document

2ND QUARTER 2000

CATHAY PACIFIC STEEL

p 293,803.21 p 26,709.38

NEW EASTECH INTL CORP

23,667.00 2,151 .55 Subtotal p 317,470.21 p 28,860.93

4TH QUARTER 2000

KODAK EXPRESS

p 81 .00 p 7.35 PLOT 625.80 56.89

PHIL PIZZA INC

930.00 83.09

RUST AN COFFEE CORP

360.00 32.73

TAKAYAMA JAPAN ESE RESTAURANT

984.50 89.50 MERIDIAN 3,000.32 241 .00

NORTH AMERICA

12,265.00 1,000.00 PCIB 3,711 .61 315.48 Subtotal p 21 ,958.23 p 1,826.04

2ND QUARTER 2001

FBI MACHI NE SHOP & SERVICES

p 10,069.56 p 906.26

IND'L TECH DEVT INST

6,390.01 580.91

MHE DEMAG

13,452.01 1,222.91

PHILEX INSURANCE AGENCY

101 ,131 .94 9,193.81 Subtotal p 120,973.96 p 11 ,903.89

3RD QUARTER 2001

CATHAY PACIFIC STEEL CORP

p 8,033,644.44 p 723,028.00 EDISON ELECTRICAL INTEG. 1,637.00 148.82

HONDA CARS MAKATI

392,000.00 35,636.36

VALLEY SPORTS CORPORATION

1,160.00 106.37 Subtotal p 8,428,441.44 p 758,919.55

4TH QUARTER 2001

MAKATI COMMERCIAL ESTATE

p 200.00 p 18.18

UPTOWN IND'L SALES

400.00 36.36

PHI LEX INSURANCE AGENCY

749.80 68.16 Subtotal p 1,349.80 p 122.70

1ST QUARTER 2002

BAYTAN INDUSTRIES

p 4,568.00 p 415.27 Total p 8,894, 761.64 p 802,048.38

(g) Input VAT representing payments of technical fees to GSI Technologies, USA 2nd QUARTER 2000 p 505,238.41 p 50,523.84

3RD QUARTER 2000

474,456.86 47,445.69

4TH QUARTER 2000

492,670.70 49,267.10 rr:~o) 9 of 10

ANNEX A

' .

1ST QUARTER 2001

320,421.00 32,042.10 2nd QUARTER 2001 307,661 .50 30,766.15

3RD QUARTER 2001

378,941 .30 37,894.13

4TH QUARTER 2001

359,413.03 35,941 .30

1ST QUARTER 2002

266,148.52 26,614.85 Total p 3,104,951 .32 p 310,495.16 Grand Total p 19,118,912.52 p 1 ,671 ,902.49 ~I 10 of 10