Team Energy Corporation vs. Commissioner of Internal Revenue

DECISION

CASANOVA, J. :

The instant Petition for Review is a claim for refund or issuance of tax credit certificate of alleged unutilized input va lue-added tax (VAT) on domestic purchases and importation of goods and services attributable to zero-rated sales in the total amount of P83,465,353.50 for all quarters of calendar year 2003. Petitioner is a domestic corporation organized and existing under and by virtue of Philippine laws, with principal office at Pagbilao Grande Island, Pagbilao, Quezon 1. It is engaged in the business of power generation and the subsequent sale to the Nationa l Power Corporation (NPC) under a Build, Operate, Transfer ( BOT)~ 1 Joint Stipulation of Facts and Issues (JSFl). Par. 1 of Admitted Facts. Rollo. p. 125. 1J.07 ,. ..

I

agreement2. Petitioner is registered with the Bureau of Internal Revenue (BIR) as a VAT taxpayer in accordance with Section 236 of the National Internal Revenue Code (1997 NIRC) as evidenced by BIR Certificate of Registration bearing RDO Control No. 96-600-002498 with Taxpayer Identification No. 001-726-8703. Respondent, on the other hand, is the Commissioner of Internal Revenue who is duly appointed and empowered to perform the duties of his office, including, among others, the duty to act and approve claim for refund or issuance of tax credit certificate of overpaid internal revenue taxes as provided by law, with office address at the BIR National Office Building, Agham Road, Diliman, Quezon City, where he may be served with summons and other court processes4 . Petitioner was originally registered with the Securities and

Exchange

Commission (SEC) under the name " Hopewell Power (Philippines) Corporation" which was subsequently changed to "Southern Energy Quezon, Inc. " On September 22, 1999. On June 28, 2001, petitioner's name was again changed to " Mirant Pagbilao Corporation" 5.

On November 13, 2002, petitioner filed with the BIR Audit Information, Tax Exemption and Incentives Division, an Application for Effective Zero-Rate of its supply of electricity to the NPC, which was subsequently approved6. For the calendar year 2003, petitioner filed its original and amended VAT returns on the following dates7:

QUARTER

ORIGINAL

RETURN

1ST

April 25 2003

" Ibid .. paragraph I of .J oi ntl y Stipul ated Facts. Rollo. p. 126. 3 I bid .. paragraph 2.

4 Supra. note 1. paragraph 2. 5 JSFJ. paragraph 3 of Jointly Stipulated Facts. Rollo. p. 126. 6 Ibid .. paragraph 4.

7 Ibid .. paragraphs 4-8.

AMENDED

RETURN

July 25 2003

l i.G3

·------·-~ -~~-- ---·--- --- -----~·-

2ND

July 25, 2003

October 27 2003

3RD

October 27 2003

-

4TH

January 24 2004

July 26 2004

On December 17, 2004, petitioner filed an administrative claim for refund of unutilized input VAT with the Revenue District Office No. 60 at Lucena City on December 17, 2004 in the total amount of P83,465,353.508. On April 22, 2005, receiving no favorable response from respondent, petitioner filed a Petition for Review before this Court, docketed as CTA Case No. 7229, claiming for the refund of the amount of P15,085,320.31 corresponding to the 15t quarter VAT claim for the calendar year 2003 9. On July 22, 2005 petitioner filed CTA Case No. 7298 for its corresponding judicial VAT refund claims for the 2nd to 4th quarters of 2003 summing up to P63,380,033.19 10 .

In CTA Case No. 7229, respondent alleged the following Special and

Affirmative Defenses11 :

"4.

Petitioner's alleged claim for refund is subject to administrative routinary investigation/examination by the Bureau of Internal Revenue;

5.

The amount of P15,085,320.31 being claimed by petitioner as alleged unutilized input VAT on domestic purchases of goods and services and importation of goods for the first quarter of 2003 is not properly documented;

6.

The decision of the Supreme Court in the case of Maceda vs. Macaraig 223 SCRA 217 (1993) which states that the NPC is exempt from all taxes, duties, fees, imposts, charges and restrictions of the Republic of the Philippines and its provinces, cities and municipalities, is not applicable to the instant petition. What is being exempted in said decision is NPC per se and such -a- 8 Ibid. paragraph 9.

9 Petition for Review. CTA Case No. 7229 Rollo (Ro ll o). pp. 1-6. 10 Petition for Rev iew. CTA Case No. 7298. pp. 1-7. 11 Answer. Rollo. pp. 93-95. l iG J

'Page 4 of 19 exemption does not extend to the supplier such as the petitioner in the instant case;

7.

In an action for refund/credit, the burden of proof is on the taxpayer to establish its right to refund, and failure to sustain the burden is fatal to the claim for refund/ credit; 8.

Petitioner must show that it has complied with the provisions of Sections 204 (C) and 229 of the 1997 Tax Code on the prescriptive period for claiming tax refund/credit; 9.

Claims for refund are construed strictly against the claimant for the same partake the nature of exemption from taxation (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA 95) and as such, they are looked upon with disfavor (Western Minolco Corp. vs. Commissioner of Internal Revenue, 124 SCRA 1211)." In CTA Case No. 7298, respondent alleged the following Special and

Affirmative Defenses 12 :

"3. He reiterates and repleads the preceding paragraphs of the Answer as part of his Special and Affirmative Defenses;

4. Petitioner's claim for refund is subject to administrative investigation/examination by the respondent;

5. To support its claim, it is imperative for petitioner to prove the following, viz.

a. The registration requirements of a value-added taxpayer in compliance with Section 6(a) and (b) of the Revenue Regulations No. 6-97 in relation to Section 4.107-1(a) of revenue Regulations No. 7-95, and Section 236 of the Tax Code, as amended;

b. The invoicing and accounting requirements for VAT- registered persons, as well as the filing and payment of VAT in compliance with the provisions of Sections 113 and 114 of the Tax Code as amended;

c. Proof of compliance with the prescribed checklist of requirements to be submitted involving claim for VAT refund in pursuance to Revenue Memorandum Order No. 53-98, otherwise there would be no sufficient~ 12 Answer, CTA Case No. 7298 Rollo. pp. 234-238. 1 .i .i0 compliance with the filing of administrative claim for refund which is a condition sine qua non prior to the filing of judicial claim in accordance with the provision of Section 229 of the Tax Code, as amended. It is worthy of emphasis that Section 112 (D) of the Tax Code, as amended, requires the submission of complete documents in support of the application filed with the Bureau of Internal Revenue before the 120-day audit period shall apply, and before the taxpayer could avail of judicial remedies as provided for in the law. Hence, petitioner's failure to submit proof of compliance with the above-stated requirements warrants immediate dismissal of the petition for review.

d. That the input taxes of P68,380,033.19 allegedly paid by the petitioner on its purchases of goods and services for the second, third and fourth quarters of the year 2003 were attributable to its zero-rated sales and such have not been applied against any output tax and were not carried over in the succeeding taxable quarter or quarters;

e. That petitioner's administrative and judicial claims for tax credit or refund of the unutilized input tax (VAT) was filed within two (2) years after the close of the taxable quarter when the sales were made in accordance with Sections 112 (A) and (D) and 229 of the Tax Code , as amended;

f.

That petitioner's domestic purchases of goods and services were made in the course of its trade or business, properly supported by VAT invoices and/or official receipts and other documents, such as subsidiary purchase Journal, showing that it actually paid VAT in accordance with Sections 110 (A) (2) and 113 of the Tax Code as amended, and in pursuance to Section 4.104-5

(a) & (b) of Revenue Regulations No. 7-95 (Re: Substantiation of Claims for Input Tax Credit);

g. The requirements as enumerated under Section 4.104-2 of the Revenue Regulations 7-95. (Re: Persons who can avail of the Input Tax Credits);

6. Furthermore, in an action for refund, the burden of proof is on the taxpayer to establish its right to refund and failure to sustain the burden is fatal to the claim for refund/ credit. This is so because exemptions from taxation are highly disfavored in law and he wh~ claims exemption must be able to justify his claim by the clearest grant of organic or statutory law. An exemption from common burden cannot be permitted to exist upon vague implications (Asiatic Petroleum Co. {P.I} v. Llanes, 49 Phil. 466 cited in Collector of Internal revenue v. Manila Jockey Club, Inc., 98 Phil 670);

7. Claims for refund are construed strictly against the claimant for the same partake the nature of exemption from taxation (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA and 95) and as such, they are looked upon with disfavor (Western Mino/co Corp. vs. Commissioner of Internal Revenue, 124 SCRA 1211)." On August 24, 2005, petitioner filed a Motion for Consolidation 13 seeking to merge CTA Case Nos. 7229 and 7298. This Court granted said motion on October 12, 2005 14 .

The parties submitted their Joint Stipulation of Facts and Issues15 on December 22, 2005 which this Court approved on January 3, 2006 16. After trial, petitioner submitted its Formal Offer of Evidence17 on November 23, 2007. This Court admitted all of petitioner's exhibits on January 10, 200818. Respondent, for his part, failed to present any evidence so that on June 17, 2008 he was declared by the Court to have waived his right to present evidence19. After considering the respective memorandum of the parties, filed on July 16, 2008 by the petitioner and on September 4, 2008 by the respondent, the case was submitted for decision on October 9, 2008 20.-@\ 13 Rollo. pp. 98-1 00.

14 Rollo. pp. I 02-1 03.

15 Rollo. pp. 125-1 28.

16 Rollo, p. 129.

17 Rollo, pp. 596-64 7.

18 Rollo. pp. 704-707.

19 Rollo, p. 7 18.

20 Rollo. pp. 720-745 and pp. 756-770. respectively. .. . . ') l.J..1t..

On February 24, 2009, petitioner filed a Motion to Change Caption 21 praying that the caption of the instant case be changed to "TeaM Energy Corporation (formerly Mirant Pagbilao Corporation and Southern Energy Quezon. Inc.l Petitione0 vs. Commissioner of Internal revenue 2009. On March 24, 2009, this Court granted said prayer via a Resolution. The parties jointly stipulated22 on the following issues for resolution by this Court, to wit:

"1. Whether or not the power generation services rendered by [p]etitioner to NPC are subject to zero percent (0%) VAT pursuant to Section 108(6)(3) of the Tax Code; 2.

Whether or not [p]etitioner has unutilized creditable input VAT for the four quarters of CY 2003 arising from its domestic purchases of goods and services and importation of goods amounting to Php83,465,353.50 that can be a proper object of a claim for refund pursuant to Section 108(6)(3) and Section 112(A) of the Tax Code;

3.

Whether or not the unutilized creditable input taxes for the four quarters of CY 2003 are substantiated by proper invoices and official receipts;

4.

Whether or not the unutilized creditable input VAT payments for the four quarters of CY 2003 were carried over to and unutilized in the succeeding taxable quarter(s) or applied against any of the output VAT liability of the [p]etitioner; and 5.

Whether or not [p]etitioner is entitled to a refund and/or issuance of a tax credit certificate for its unutilized input VAT payments in the amount of Php83,465,353.50." Petitioner argues that under Republic Act (RA) No. 6395 the NPC is exempt from the payment of all forms of taxes. Petitioner added that the Supreme Court ruling in Ernesto M. Maceda vs. Hon. Catalina Macarairl Jr. 23 has confirmed this. 24 ~ " 1 Rollo. pp. 776-777.

"~ .J SF I ,pp. 127-1 28.

n G.R. No. 8829 L May 31. 199 1. l i. l J

Respondent, however, countered that the ruling in the Macaraig Case is not applicable to petitioner; that the one being exempted in said decision is NPC per se and such exemption does not extend to suppliers such as petitioner in the instant case25.

We find respondent's contention without merit. The first issue is legal in nature but is not one of novel character. The issue of whether or not the power generation services rendered by petitioner to NPC are subject to zero percent (0%) VAT pursuant to Section 108 (B) of the 1997 National Internal Revenue Code (1997 NIRC) has already been resolved by this Court in the affirmative in a number of similar cases26. Being principally engaged in the business of power generation, petitioner's subsequent sale thereof to the NPC under a Build, Operate, Transfer ("BOT") scheme makes the power generation services it rendered subject to zero percent (0%) VAT pursuant to Section 108 (B) (3) of the 1997 NIRC, as amended, which provides:

"SEC. 108. Value-Added Tax on Sale of Services and Use or Lease of Properties. -

XXX

XXX

XXX

(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; ~ 24 Memorandum for the Petitioner. Rollo. pp. 732-733. 25 Answer. paragraph 6. Rollo. p. 94. 26 Miranr (?hils.) Mobile Corp. (formerly Sou/hem Energy Mobile. Inc.) FS. Commissioner o(lnternal Re,·enue, CTA Case Nos. 5939 & 5969. January 15. 2002 : Mirnnr :Va1"0tas Corp. (/ormerh · Southem Energy Nm ·otas. Inc.) 1·s. Commissioner of 111/emal Re1·emte. CT/\ Case Nos. 5936 & 5968. h1nuar) 16. 2002: .\/irnnt (t\"m·otas !!) Corp. (formerly Southem Energy .Vm·otas /1 Pm rer. Inc.) 1·s. Commissioner o{ lmemal Re,·enue. CTA Case Nos. 5944 & 5963. Janu ary 2 1. 2002: Miram Pagbilao C01p. (formerly Southern Energy Que::on. Inc.) \'S. Commissioner of !ntemal Re1·enue. CT A Case No. 604 1. March 5. 2002: t\!imnt Nm·otas Corporation (formerly Sou/hem Energy Narotas Corporation. Inc.) \'S. Commissioner of !ntemal Re1·enue. CTA Case No. 6459. April 2 1. 2005: Mirant (Narotas I I) Corporation (form e r~y Southern Energy Naroras I I Power. Inc.) rs. Commissioner of Internal Revenue. CTA Case No. 64 18. April 11. 2006. i .

~ '

XXX

XXX

XXX

(3) Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate;

XXX

XXX

xxx" In the case of Maceda vs. Macarai!/1/ the total exemption of National Power Corporation (NPC) from all kinds of taxes, whether direct or indirect, was already settled by the Supreme Court. The NPC's exemption from all kinds of taxes was further explicated by the High Court in its Resolution dated June 8, 1993 resolving the same issue in a motion for reconsideration in the following manner: "A chronological review of the NPC laws will show that it has been the lawmaker's intention that the NPC was to be completely tax- exempt from all forms of taxes- direct or indirect. One common theme in all these laws is that the NPC must be enable to pay its indebtedness which, as P.D. No. 938 was P12 Billion in total domestic indebtedness, at any one time, and US$4 billion in total foreign loans at any one time. The NPC must be and has to be exempt from all forms of taxes if this goal is to be achieved." From this ruling, the Secretary of the Department of Finance's Memorandum dated January 28, 1998, addressed to the Commissioner of Internal Revenue, with respect to the total exemption of NPC from all kinds of taxes and further ruled that purchases by NPC of electricity from independent power producers are subject to VAT at 0%. Pertinent portions of said memorandum read as follows: "As explained by the Supreme Court, the rationale for the NPC's tax exemption is to ensure cheaper power. If the SIR's recent view is to be implemented, the VAT, being an indirect tax, may be passed on by the seller of electricity to NPC. Effectively, this means that electricity will be sold at a higher rate to the consumers. Estimates show that a 10% VAT on electricity which is purchased by NPC from its independent power producers will increase power cos~ 27 Supra. note 22.

11.1 5 by about P109.4 million a month or about Pl.30 billion a year. The effect on the consumer is an additional charge of P0.059 per kilowatt-hour. The recognition of NPC's broad privilege will inure to the ultimate benefit of the Filipino consumer. In view of the foregoing and using the power of review granted to the Secretary of Finance under Section 4 of Republic Act No. 8424, the DOF upholds the ruling of the Supreme Court that the NPC is exempt under its charter and subsequent laws from all direct and indirect taxes on its purchases of petroleum products and electricity.

Thus, the purchases by

NPC

of electricity from independent power producers are subject to VAT at zero-rate." The second, third and fourth issues can actually be summarized by the fifth issue: whether or not petitioner is entitled to a refund and/or issuance of tax credit certificate for its unutilized VAT payments in the amount of P83,465,353.40. Petitioner bases its claim on Section 112(A) of the NIRC of 1997, as amended, which allows the refund/tax credit of unutilized input VAT attributable to zero-rated or effectively zero-rated sales, to wit: "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: Provide~ howeve0 That in the case of zero-rated sales under Section 106(A)(2)(a)(1), (2) and (B) and Section 108 (B)(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): Provide~ 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 sa l es.~ lil u

Based from the above, the following requisites must be complied with in order that petitioner will be entitled to a refund: 1.

there must be zero-rated or effectively zero-rated sales; 2.

that input taxes were incurred or paid; 3.

that such input taxes are attributable to zero-rated or effectively zero-rated sales;

4.

that the input taxes were not applied against any output VAT liability; and 5.

that the claim for refund was filed within the two-year prescriptive period As resolved in the first issue, petitioner is principally engaged in the business of power generation and its sa le of its services to NPC is effectively subject to zero percent (0%) VAT.

Going now to the second requirement, petitioner reflected the following zero- rated sales/receipts in the amount of P12,208,805,373.67 in its original and amended Quarterly VAT Returns for the four quarters of 2003 28 :

CTA

Exhibit

Year

Zero-Rated

Case No.

No.

2003 Sa lesiRecei pts 7229

C I X- 1

1st Quarter p 3,170,914,604.24 7298

D I X-2

2nd Quarter 3,034,739,252.93 7298

E I X-4

3rd Quarter 2,983,478,607 .66 7298

F /X-9

4th Quarter 3,019,672,908.84

Total

p 12,208,805,373.67 Verification showed that the afore-stated zero-rated sa les/receipts were actually derived from petitioner's sale of electricity to NPC as evidenced by the invoices and official receipts29 issued by petitioner to NPC for the four quarters of 2003 which were summarized in the Schedule of Gross Receipts and Summary of

Zero-Rated Sales

3~ 28 Exhi bits "C''. ''D". "E". " F" & "X-1 to X- 16". 29 Included in Exhibits ·'Z- 1 to Z-1 57" . .1o Exhibits "Y- 1 to Y-4". lil 7 However, out of the reported P12,208,805,373.67 zero-rated sales/receipts, the amount of P20,986,302.67 shall be denied VAT zero-rating for petitioner's failure to submit the corresponding official receipts. The computation is as follows:

Per Exhibit W-1

Quarter

OR No.

Date

Gross Receipts

3'd 1016

16-Jul-03

p 1,866, 123.04 3'd 1016

16-Jul-03

3,908,503.70 3'd 1017

16-Jul-03

1,859 ,027.46 3'd 1017

16-Jul-03

3,652,973.76 3'd 1025

5-Aug-03

1,878 ,190.72 3'd 1025

5-Aug-03

3,337,529.38 3'd 1026

5-Aug-03

1 ,905 ,149.39 3'd 1026

5-Aug-03

2,578 ,805.22

Total

p 20,986,302.67 Thus, petitioner's total substantiated zero-rated sales amounts to only P12,187,819,071.00, computed as follows: Declared zero-rated sales Less: Unsubstantiated zero-rated sales Substantiated zero-rated sales p 12,208,805,373.67 (20,986,302.67) p 12,187,819,071 .00 Consequently, only the portion of the input VAT claim attributable to the substantiated zero-rated sales of P12,187,819,071.00 will be considered for refund. The rate to be applied is based on the total amount of reported zero-rated sales/receipts and is computed as follows: Substantiated zero-rated sales Divided by total declared zero-rated sales Rate of substantiated zero-rated sales p 12,187,8 19,071 .00 p 12,208 ,805,373.67 99.83% Having resolved that petitioner's sales of electricity to NPC for the four quarters of 2003 in the amount of P12,187,819,071.00 qualifies for VAT zero-rating under Section 108(8)(3) of the NIRC of 1997, as amended, we now determine the amount of input VAT attributable thereto in relation to the third requirement~ 11.18

As can be seen in its Quarterly VAT Returns31 for the four quarters of 2003, petitioner reported the following input taxes in the total amount of P83,465,353.50, broken down as follows:

CTA

Exhibit

Year 2003

Amount of Input

Case No.

No.

Quarter

VAT per Return

7229

C I X-1

1st p 15,085,320.31 7298

D I X-2

2nd 15,898,643.56 7298

E I X-5

3rd 21 '1 51 ,308.57 7298

F I X-9

4th 31,330,081 .06

Total

p 83,465,353.50 In support of the input taxes, petitioner presented a summary list of purchases (both on importations and domestic purchases) and the related Bureau of Customs (BOC) Import Entries and Internal Revenue Declarations (IEIRDs), BOC or bank official receipts, bank statements, suppliers' invoices and/or official receipts and other pertinent documents which were verified by the Court-commissioned independent CPA (ICPA).

Upon this Court's review of the reports submitted by the ICPA as well as petitioner's supporting documents, the following input taxes in the total amount of P12,642,304.32 should be disallowed from petitioner's claim for failure to meet the substantiation requirements under Sections llO(A) and 113(A) of the NIRC of 1997, as implemented by Sections 4.104-1, 4.104-5 and 4.108-1 of the Revenue Regulations No.7-95. The breakdown is shown below:

Findings

Ex h.

Amount of Input Tax

f-------- -- ----- ---- --- ..

- - ---- - ·-- - - --- ------------.- 1 Input taxes claimed on importation of goods supported by

W-10

p 2,312,602.00 photocopied lEOs certified by ·the BOC -------- ---- --------------- 2 Input taxes claimed on importation of goods supported by

W-11

1,437,035.00 photocopied lEOs certified by the BOC and photocopied

BOC /Bank Ors

31 Exhibits " C". " D". "E". "F" & ''X-1 to X-16". li.1 9 3 Input taxes claimed on local purchases of goods supported by documents other than VAT invoices (e.g. ORs, statements of accounts, delivery receipts, etc.) 4 Input taxes claimed on local purchases of goods supported by invoices without BIR Permit 5 Input taxes claimed on local purchases of goods supported by NON VAT invoices 6 Input taxes claimed on local purchases of goods supported by a single invoice erroneously presented twice in the summary lists 7 Input taxes claimed on local purchases of goods supported by invoices with pre-printed "TIN" only 8 Erroneously computed input taxes claimed on local purchases of goods 9 Input taxes claimed on local purchases of goods supported by invoices without pre-printed "TI N-VAT" 10 Input taxes claimed on local purchases of goods supported by VAT invoices issued not in the name of the Company 11 Input taxes claimed on local purchases of goods supported by invoices with pre-printed "TAN-VAT" 12 Input taxes claimed on local purchases of services supported by documents other than VAT ORs (e.g. invoices) 13 Erroneously computed input taxes claimed on local purchases of services 14 Input taxes claimed on local purchases of services supported by ORs without BIR Permit 15 Input taxes claimed on local purchases of services supported by ORs with pre-printed "TIN" only 16 Input taxes claimed on local purchases of services supported by ORs stamped "TIN VAT" 17 Input taxes claimed on local purchases of services supported by an OR without pre-printed "TIN VAT" 18 Input taxes claimed on purchases of services supported by single OR erroneously presented twice in the summary lists 19 Input taxes claimed on local purchases of services supported by VAT ORs issued not in the name of the

Company

20 Input taxes claimed on local purchases of services

W-17

239,967.05

W-18

87,159.78

W-19

48,630.09

W-20

30,986.01

W-21

14,200.00

W-22

1 '187.70

W-23

12,852.19

W-24

12,173.18

W-25

12,713.64

W-26

418,568.72

W-27

14,308.13

W-28

90,269.31

W-29

33,511.05

W-30

18,086.58

W-31

18,000.00

W-32

17,747.32

W-33

7,104.07

W-34

3,871 .61 l 1.~0 supported by a VAT OR with pre-printed "Zero-Rated" 21 Input taxes claimed on importation of goods supported by original lEOs and BOC/Bank ORs wherein the amounts are not tallied 22 Input taxes claimed on importation of goods supported by single BOC OR erroneously presented twice in the summary lists 23 Input taxes claimed on importation of goods supported by an undated BOC OR issued to "Mirant" only 24 Input taxes claimed on importation of goods supported by photocopied BOC OR only 25 Input taxes claimed on importation of goods supported by photocopied lED only 26 Input taxes claimed on importation of goods not issued in the name of the Company 27 Input taxes claimed on importation of goods without supporting documents 28 Input taxes claimed on local purchases of goods which are supported by invoices dated outside the period of claim (i.e. dated within the fourth quarter of 2002 and first guarter of 2004). ______ ·-- --- --- -- --~----- ~-- - -- 29 Input taxes claimed on local purchases of goods which are supported by invoices with pre-printed TIN-V instead of TIN-VAT 30 Input taxes claimed on local purchases of goods supported by a VAT invoices merely stamped as "certified true copy". 31 Input taxes claimed on local purchases of goods supported by undated invoices. 32 Input taxes claimed on local purchases of services which are supported by ORs with pre-printed TIN-V instead of TIN-VAT 33 Input taxes claimed on local purchases of services which are supported by ORs dated outside the period of claim (i.e. within the fourth quarter of 2002 and first quarter of 2004) 34 Input taxes claimed on local purchases of services which are supported by ORs with different OR number as reported in the summary lists. 35 Input taxes claimed on local purchases of services supported by undated ORs.

W-36

W-37

W-38

W-39

W-40

W-41

W-42

W-43

------- ----- -

W-44

NN-511, NN-512

W-46

W-47

W-48

W-49

W-50

-------- -- ----~- ~- --- --- ·-- - --- ~ --- ----- - 188,155.29 21,294.00 1,713.00 741.00 261.00 57,000.00 599,792. 10 2,118,275.23 - ------------ 219,560.28 2,549.00 673.20 1,008,148.96 376,870.73 356,924.55 37,646.78 ------- ---·-- ------- -. ~ i r , 1 ,'

----------- - ----- 36 Input taxes claimed on local purchases of services supported by a VAT OR stamped as "certified true copy" 37 Input taxes claimed on importation of goods supported by photocopied lEOs certified by the BOC and original BOC/Bank ORs dated outside period of claim 38 Input taxes claimed on importation of goods supported by photocopied informal lEOs and original BOC/ Bank ORs dated outside period of claim 39 Input taxes claimed on importation of goods supported by photocopied lEOs certified by the BOC and photocopied BOC/Bank ORs dated outside period of claim 40 Input taxes claimed on importation of goods supported by original Bank OR dated outside period of claim 41 Input taxes claimed on importation of goods supported by photocopied lEOs and original BOC/Bank ORs dated outside period of claim 42 Input taxes claimed on importation of goods supported by photocopied informal lEOs and undated BOC/Bank Ors 43 Input taxes claimed on local purchases of goods/ services supported by VAT invoices/official receipts which are dated outside period of claim 44 Input VAT claimed on importation of goods does not tally with the input VAT per BOC official receipt 45 Without supporting documents - - ---

W-51

19.37

W-52

203,403.00

W-53

47,311 .00

W-54

11 ,301 .00

W-55

3,297.00

W-56

10,142.00

W-57

7,398.00 Annex A , 279,599.92 item no.1 Annex A, 9,587.00 item no. 2 Annex A, 2,249,667.48 item no. 3

Total

p 12,642,304.32 From the foregoing disallowances, petitioner's valid input VAT for the four quarters of 2003 amounts to only P70,823,049.18, computed as follows:

Total

Input VAT Claim

p 83,465,353.50

Less Disallowances

(12,642,304.32)

Substantiated Input VAT

p 70,823,049.18 Since petitioner reported an output VAT liability in its Quarterly VAT Return for the third quarter of 2003 in the amount of P776.36, the same shall be offset against the substantiated input VAT of P70,823,049.18. Hence, only the remaining.a.__ 1.i.22 input VAT of P70,822,272.82 can be attributed to the entire zero-rated sales declared by petitioner in the amount of P12,208,805,373.67 and only the input VAT of P70,700,533.01 is attributable to the substantiated zero-rated sales of P12,187,819,071.00, as computed below:

Substantiated Input VAT

p 70,823,049.1 8

Less: Output VAT

776.36

Excess Input VAT

70,822,272. 82 Multiply by rate of substantiated zero-rated sales 99 .83% Excess Input VAT attributable to substantiated zero-rated sales p 70,700,533.01 With respect to the fourth requisite, We find petitioner to have sufficiently complied with the same. Although petitioner carried over the claimed unutilized input VAT for the taxable year 2003 to the succeeding taxable quarters until the third quarter of the year 200532, the same was deducted as "Any VAT Refund/TCC" claimed from the total available input tax of P269,486,336.5533 as of the third quarter of 2005. In other words, the subject claim no longer formed part of the excess input VAT of P185,975,741.8934 as of the third quarter of 2005 which was to be carried over/ applied to the succeeding fourth quarter of 200535 . Finally, regarding the issue of whether or not the claim for refund/tax credit certificate was filed within the two-year prescriptive period, the answer is in the affirmative. The reckoning of the two-year prescriptive period for the filing of a claim for input VAT refund starts from the date of filing of the corresponding quarterly VAT return.

The present claim pertains to input VAT incurred for the first to fourth quarters of 2003. Reckoned from April 25, 2003, July 25, 2003, October 27, 200~ 32 Exhibit ''Q" or "UU- I to UU-2" . .1.1 Exhibit ''Q". Line 24 or ''UU- l ··. Line 24. 34 Exhibit "Q". Line 3 1 or "UU-2". Li ne 3 1. 35 Exhi bit ''R". Line 23C. 1.1. 23 and January 26, 2004, petitioner had until April 25, 2005, July 25, 2005, October 27, 2005 and January 26, 2006 within which to file its claim both in the administrative and judicial levels. Hence, the administrative claim filed on December 17, 200436 and the Petitions for Review filed with this Court on April 22, 2005 and July 22, 2005 for the first and second to fourth quarters, respectively, are well within the two-year prescriptive period.

Although there is a recent case entitled Commissioner of Internal Revenue vs. Mirant Pagbi/ao Corporation (Formerly SOUTHERN ENERGY QUEZO~ INC/ 7/ wherein the Supreme Court held that the reckoning of the two-year prescriptive period for the filing of a claim for input VAT refund starts from the close of the taxable quarter when the relevant sales were made, this Court finds it proper to apply said ruling to cases filed after the promulgation date of the Mirant Case. To apply said ruling in the present case will in effect be giving the new doctrine retroactive application thereby impairing vested rights.

WHEREFORE, in view of the foregoing, the instant Petition for Review is hereby PARTIAllY GRANTED. Respondent is hereby ORDERED to REFUND or ISSUE a tax credit certificate to the petitioner in the amount of P70,700,533.01.

Associate Justice

WE CONCUR:

~~ . ~

(With Concurring & Dissenting Opinion)

ERNESTO D. ACOSTA

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's Division. L-~. Q~ ERNESTO D. ACOSTA

Presiding Justice

Chairperson, First Division

ANNEX A

TEAM ENERGY CORPORATION

(formerly Mirant Pagbilao Corporation and -- Southern Energy Quezon, Inc.)

-vs- COMMISSIONER OF INTERNAL REVENUE

OTHER INPUT VAT DISALLOWANCES

FOR THE FIRST Tb FOURTH QUARTERS OF 2003

Exhibit

Vendor

Ref No.

Date

Amount

1. Input taxes claimed on local purchases of goods/services supported by VAT invoiceslofflcial receipts dated outside period of claim

a. Per Listing under Exhibit W-3 JJ-586,587 ALSTOM PHILIPPINES , INC. 5174 11/18/02 9,480.00

JJ-591

ANGEL ARTS CO. INC.

0350 12/20/02 600.00 JJ-621 ,622

BGM GARDEN AND LANDSCAPING

0951 12/20/02 581.82 JJ-646,647 CATHAY INDUSTRIAL & MILL SUPPLY, INC. 55274 10/03/02 (874.00) JJ-646,647 CATHAY INDUSTRIAL & MILL SUPPLY, INC. 55274 10/03/02 2,254.00 - JJ-715,716

D' SEALING ENTERPRISES

0756 12/10/02 12,500.00 JJ-175, 176 FH COMMERCIAL, INC.

16120 12/26/02 1,500.00 JJ-192,193

ILAYA SUPERSTORE

2744 10/09/02 447.27 JJ-215,216 JM BRENTON INDUSTRIES CORP. 1692 12/04/02 10,500.00 KK-217,218 JUNEAU INDUSTRIAL CORP.

60483 12/03/02 939.50 JJ-229,230

JUNNA INDUSTRIAL CORPORATION

53534 12/11/02 304.00 JJ-1980,1981 KARNANI, INC.

10555 07/30/02 1,590.91 JJ-1080,1081

LE DREAV MANUFATURING & TRADING

0232 12/05/02 340.91 JJ-1 080,1082

LE DREAV MANUFATURING & TRADING

0236 12/05/02 1,050.00 JJ-1084,1085

LE DREAV MANUFATURING & TRADING

0238 12/09/02 12,272.73 JJ-246,247 LEELENG COMMERCIAL, INC .. 011849 10/08/02 590.91 JJ-2155,2156 MACHINE-AID TECH. PHILIPPINES, INC.

7106A

12/27/02 14,565.46 JJ-1118,1119 MEGA TECH RESOURCES CORP. 4105 09/03/02 1,818.19 JJ-284,285

METROWIDE COMMODITIES CORPORATION

0424 12/27/02 39,716.37 JJ-1172,1173

MICHELENE'S MART

054 11/08/02 672.73 JJ-1232,1232

MONARK EQUIPMENT CORPORATION

W0000017820

12/26/02 67,622.28 JJ-324,325

PHILCOPY CORPORATION

196216 12/12/02 5,610.00 JJ-342,343 PINNACLE PARTS CO.

9203 12/13/02 4,080.00 JJ-1357, 1358 RS COMPONENTS LIMITED (PHILS.)

P24165

12/10/02 3,126.41 JJ-444,445

THE TRADERS HOTEL MANILA

114722 12/09/02 263.64 KK-476,477 THRIVE ZEAL INDUSTRIES, INC. 7376 11/15/02 5,454.55 JJ-456,457 TRACKSTAR ENTERPRISES CORP. 11979 11/28/02 5,836.37

JJ-1466-1 '1466-2

UNIDYNAMICS PHILIPPINES CORPORATION

001345A

~ 12/15/02 50,309.10 JJ-1566, 1567 WEBFORGE PHILIPPINES, INC.

PH4932

11/28/02 700.00 NN-630, 631

GHD MANAGEMENT ENGINEERING ENVIRONMENT

81 02/26/02 17,042.46 NN-1485, 1486

RACE ENTERPRISES

1754 12/04/02 509.09 NN-1632, 1633

UNIDYNAMICS PHILIPPINES CORPORATION

1423 01/04/02 782.60 PP-2514, 2515

SHOP RITE CENTER GENERAL MERCHANDISE

20908 01/08/04 1,031 .25

Subtotal

273,21 8.55

I

b. Per Listing under Exhibit W-4 LL-105, 106 AQUA TREATMENT TECHNOLOGY, INC. 787 11127/02 684.09 LL-918,919 MCCOY INTERNATIONAL, INC. 260 10/22/02 5,127.28 LL-1613, 1614

UNITED POWER COMMERCIAL CORPORATION

42969 12/07/02 570.00

Subtotal

6,381 .37

Total

279,599.92

2. Input VAT claimed on importation of goods does not tally with the input VA T per BOG official receipt

EE-55 to 57

BUREAU OF CUSTOMS

105401965 08/25/03 166.00

DD-530 TO 533

BUREAU OF CUSTOMS

104376273 07/04/03 - Per schedule 36,729.00

Less:

Per BOC

(27,308.00)

Page 1 of 5

4 • r , ,....

l. ..i. ::_ IJ

ANNEXA

TEAM ENERGY CORPORATION

(formerly Mirant Pagbilao Corporation and Southern Energy Quezon, Inc.)

-vs- COMMISSIONER OF INTE~NAL REVENUE

OTHER INPUT VAT DISALLOWANCES

FOR THE FIRST TO FOURTH QUARTERS OF 2003

Total

9,587.00

3. Without supporting documents

a. Per Listing under Exhibit W-3 ACCENT MICRO TECHNOLOGIES INC.

00034864A

12/30/03 10,608.68

ACHIEVERS SALES CORPORATION

161428 07/01/03 758.18 CAL TEX (PHILIPPINES) INC. 9051072521 09/19/03 10,232.22

CCMS FOOD PRODUCTS

BVA-0556

1,054.55

CHOWKING FOOD CORPORATION

1510 501.58

CHOWKING FOOD CORPORATION

LN-20129

2,507.90

CHOWKING FOOD CORPORATION

LN-20131

2,507.90

CHRIS JANN MARKETING INC

18305 1,151 .65

CHRIS JANN MARKETING INC

71416 1,178.69

CHRIS JANN MARKETING INC

3192 10/02/03 1,929.66 CHRIS JANN MARKETING, INC. 80466 05/15/03 848.61 DATA COMPUTER FORMS, INC. 039030 1,297.64 DATA COMPUTER FORMS, INC. 039031 1,297.64

DEALO KOFFEE KLATCH

29823 06/18/03 267.27

DEALO KOFFEE KLATCH

29929 09/04/03 54.55 DOMINGO'S GEN. MERCHANDISE 71437 06104103 2,113.64 DOMINGO'S GEN. MERCHANDISE 71439 07/01/03 1,409.09 EAGLE STAR INDUSTRIAL SALES CORP. 26575 04/10/03 700.00

EER AUTO SUPPLY

37755 460.91 E-PLUS STATIONERY, INC.

209691 07/02/03 571.12

FAMOUS ELECTRICAL AND CONSTRUCTION SUPPLY

112.50

FLYER MARKETING CORPORATION

30204 06/14/03 1,345.46

GBIC ENTERPRISES INC

46140 11/22/03 895.64

GBIC ENTERPRISES INC

46330 12/22/03 32.00 INFINITY INDUSTRIAL SALES CORP. 70844 09/03/03 2,400.00 INFINITY INDUSTRIAL SALES CORP. 70996 09/08/03 4,037.40 JJED PHILS. INC.

12181 06/19/03 685.45

JUNNA INDUSTRIAL CORPORATION

55607 10/30/03 366.00

KPI ELEVATORS INC

5750 12/02/03 23,634.91

LENNART PAOLO ENTERPRISES

217 06117103 1,177.91

LENNART PAOLO ENTERPRISES

207 05/05/03 2,015.43

LUCENA MARKTOWN CONSTRUCTION SUPPLY

153051 08/15/03 291 .24

MICHELENES MART

368 09/15/03 672.73

MICHELENES MART

374 09/22/03 672.73

MICHELENE'S MART

219 05/14/03 480.00

MONTE VISTA HOTSPRINGS & CONFERENCE RESORT

LN-17453

05/16/03 3,792.73

MONTE VISTA HOTSPRINGS & CONFERENCE RESORT

MN-17451

05/15/03 3,792.73

PATTERN INDUSTRIES

P0-21007

03/03/03 25,022.95

PHILCOPY CORPORATION

207212 07/30/03 1,118.50 POLARIS INDUSTRIAL TRADING CORP. 2710 05/13/03 76.36

SHOPRITE CTR & GEN MDSE

13884 86.18

SHOPRITE CTR & GEN MDSE

14974 173.09

SHOPRITE CTR & GEN MDSE

13878 177.00

SHOPRITE CTR & GEN MDSE

14435 211.36

SHOPRITE CTR & GEN MDSE

14434 254.55

SHOPRITE CTR & GEN MDSE

13871 286.55

SHOP RITE CTR & GEN MDSE

14972 336.36

SHOPRITE CTR & GEN MDSE

14961 400.73

SHOP RITE CTR & GEN MDSE

13880 408.27

SHOP RITE CTR & GEN MDSE

13881 418.18

SHOPRITE CTR & GEN MDSE

13877 528.14

SHOP RITE CTR & GEN MDSE

13870 594.18

SHOPRITE CTR & GEN MDSE

14968 597.36

SHOPRITE CTR & GEN MDSE

14853 932.73

Page 2 of 5

l l.C.7

ANNEXA

TEAM ENERGY CORPORATION

(formerl ~ Mirant Pagbilao Corporation and Southern Energy Quezon, Inc.)

-vs- COMMISSIONER OF INTERNAL REVENUE

OTHER INPUT VAT DISALLOWANCES

FOR THE FIRST TO FOURTH QUARTERS OF 2003

SHOPRITE CTR & GEN MDSE . 14438 941.42

SHOPRITE CTR & GEN MDSE

13889 1,012.36

SHOPRITE CTR & GEN MDSE

14960 1,110.18

SHOPRITE CTR & GEN MDSE

14856 1,204.14

SHOPRITE CTR & GEN MDSE

14959 1,246.09

SHOPRITE CTR & GEN MDSE

14973 1,377.27

SHOPRITE CTR & GEN MDSE

13879 1,456.82

SHOPRITE CTR & GEN MDSE

13882 1,629.55

SHOP RITE CTR & GEN MDSE

13883 1,709.55

SHOP RITE CTR & GEN MDSE

14971 2,004.68

SHOPRITE CTR & GEN MDSE

14437 2,035.27

SHOP RITE CTR & GEN MDSE

13876 2,667.60

SHOPRITE CTR & GEN MDSE

14857 2,718.82 ST. PANCRACIUS CONCRETE PRODS. & CONST. 1327 05/26/03 732.00 ST. PANCRACIUS CONCRETE PRODS. & CONST. 1293 05/26/03 1,047.50 ST. PANCRATIUS CONCRETE PRODUCTS 1048 539.55 ST. PANCRATIUS CONCRETE PRODUCTS

PAG-0368

4,332.50

SUNLIFE BOOKSTORE

19666 159.09

THE TURF COMPANY INC

15355 3,182.00 UP-TOWN INDUSTRIAL SALES, INC. 144067 06/27/03 973.16 UP-TOWN INDUSTRIAL SALES, INC. 143728 06/23/03 3,380.10 UP-TOWN INDUSTRIAL SALES, INC. 142789 06/07/03 1,124.50 UP-TOWN INDUSTRIAL SALES, INC. 142581 06/06/03 409.69 UP-TOWN INDUSTRIAL SALES, INC. 142075 05/28/03 280.96 UP-TOWN INDUSTRIAL SALES, INC. 137487 03/14/03 38.00 VALLEY TECHNOLOGIES, INC. 998 06/16/03 2,394.00 WILDCAT MACHINERY, INCORPORATED 414 06/05/03 548.18

ZAB ENTERPRISES

14259 11/10/03 1,980.92

Subtotal

161 ,714.73

b. Per Listing under Exhibit W-4

JB MUSIC AND SPORTS

49272 06/04/03 12,017.09

VETTE INDUSTRIAL SALES COMPANY

16322A

19,022.73

Subtotal

31 ,039.82

c. Per Listing under Exhibit W-5

ALAVA BUSINESS CONSULTANCY

254 06/25/03 8,000.00

ALAVA BUSINESS CONSULTANCY

254 06/25/03 8,000.00 ASIA CORROSION SERVICES, INC. 1583 20,596.91 ASIA OVERSEAS TRANSPORT CO., INC. 55879 90.91 ASIA OVERSEAS TRANSPORT CO., INC. 55879 1,31 1.61 ASIA OVERSEAS TRANSPORT CO., INC. 57551 08/29/03 638.35 BERMONT EXPRESS INTERNATIONAL INC. 6159 19.31 BERMONT EXPRESS INTERNATIONAL INC. 6159 75.00 BEST HOTEL MANAGEMENT, INC. 51696645 47,190.00

BETHRO TRADING

1985 134.55 B.P. MATA & CO., INC.

3126 07/26/03 3,261 .80 CARGOHAUS, INC.

836340 20.66 CARGOHAUS, INC.

854476 82.91

DELSAN OFFICE SYSTEMS CORPORATION

32629 695.46

DUSIT HOTEL NIKKO

257313 849.77

FOLLOSCO MORALLOS & HERCE

1034 08/29/03 8,043.75 FUJI XEROX PHILIPPINES, INC. 5628 511 .64 FUJI XEROX PHILIPPINES, INC. 10035 912.27 FUJI XEROX PHILIPPINES, INC. 11428 1,038.91

HORSEPOWER BUILDER & INDUSTRIAL SUPPLY

619/0002 4,545.46

HORSEPOWER BUILDER & INDUSTRIAL SUPPLY

0630 22,727.28 KPI ELEVATORS, INC.

4531 11,596.82 KPI ELEVATORS. INC.

4353 11,596.82

Page 3 of 5

• .

r , 3

l. . I' .1.-

ANNEXA

TEAM ENERGY CORPORATION

(formerly Mirant Pagbilao Corpora!ion and Southern Energy Quezon, Inc.)

-vs- COMMISSIONER OF INTERNAL REVENUE

OTHER INPUTVAT DISALLOWANCES

FOR THE FIRST TO FOURTH QUARTERS OF 2003

KPI ELEVATORS. INC.

4355 11,596.82 NEW WORLD INTERNATIONAL DEVELOPMENT PHILS. INC 56153 339.94 NEW WORLD INTERNATIONAL DEVELOPMENT PHILS. INC 55603 339.94 NEW WORLD INTERNATIONAL DEVELOPMENT PHILS. INC 55647 439.95 PAC-ATLANTIC LINES (PHILS), INC. 0109046 418.19

PENN REFRIGERATION & AIRCONDITION

2533 3,407.09 PCIC CONTAINER FREIGHT STATION, INC. 3177 06/20/03 464.13 PEOPLE'S AIR CARGO & WAREHOUSING CO., INC 266030 08/05/03 19.27 PEOPLE'S AIR CARGO & WAREHOUSING CO , INC 153113/1466 854.94 PEOPLE'S AIR CARGO & WAREHOUSING CO., INC 1230 19.34 PEOPLE'S AIRPORT SERVICES CORP. 236889 06/18/03 28.08

PHILIPPINE LONG DISTANCE TELEPHONE CO

0044 12/17/02 4,418. 76

PHILIPPINE LONG DISTANCE TELEPHONE CO

889223 05/23/03 11,910.00

PHILIPPINE LONG DISTANCE TELEPHONE CO

179544 06/16/03 175.67

PHILIPPINE LONG DISTANCE TELEPHONE CO

179544 06/16/03 1,234. 15

PHILIPPINE LONG DISTANCE TELEPHONE CO

179544 06/16/03 1,634.64

PHILIPPINE LONG DISTANCE TELEPHONE CO

179544 06/16/03 2,872.30

PHILIPPINE LONG DISTANCE TELEPHONE CO

179544 06/16/03 7,174.12

PHILIPPINE LONG DISTANCE TELEPHONE CO

179544 06/16/03 11,446.97

PHILIPPINE LONG DISTANCE TELEPHONE CO

179544 06/16/03 11,705.15 PHIL-NIPPON CARGO EXPRESS CORP. 1244 03/12/03 531 .90 PHIL-NIPPON ~ARGO EXPRESS CORP. 1244 03/12/03 542.86 SAGAWA EXPRESS PHILIPPINES, INC. 1883 04/11/03 2,227.49 SAGAWA EXPRESS PHILIPPINES, INC. 12194 06/27/03 521.20 SAGAWA EXPRESS PHILIPPINES, INC. 12559 06/30/03 398.82

Subtotal

226,861.91

d. Per Listing under Exhibit W-9

BUREAU OF CUSTOMS

P0-19136/18728BOC

23,026.00

BUREAU OF CUSTOMS

P0-20064 BOC

32,363.00

BUREAU OF CUSTOMS

SN#46332133

46,075.00

BUREAU OF CUSTOMS

111 ,007.00

BUREAU OF CUSTOMS

104376081 06/12/03 172,193.00

BUREAU OF CUSTOMS

103919487 08/01/03 152.00

BUREAU OF CUSTOMS

2228728 07/09/03 1,768.00

BUREAU OF CUSTOMS

103945405 10/14/03 117.00

BUREAU OF CUSTOMS

108596363 11/11/03 2,014.00

BUREAU OF CUSTOMS

0009687 10/20/03 6,595.00

BUREAU OF CUSTOMS

2192758 01/21/03 7,003.00

BUREAU OF CUSTOMS

0011735 11/05/03 8,063.00

BUREAU OF CUSTOMS

17002 12/19/03 31,011 .00

Subtotal

441,367.00

e. Per Listing under Exhibit W-12

BUREAU OF CUSTOMS

97954543 167.00

BUREAU OF CUSTOMS

LBP 12004257

32,448.00

BUREAU OF CUSTOMS

102713082 6,466.00

BUREAU OF CUSTOMS

97996893 06/19/03 24.00

BUREAU OF CUSTOMS

2192758 07/26/03 449.41

BUREAU OF CUSTOMS

1052111 36 06/29/03 . 1,850.00

BUREAU OF CUSTOMS

12022949 06/18/03 7,167.00 PHIL-NIPPON CARGO EXPRESS CORP. 1306 07/09/03 17,126.00 SAGAWA EXPRESS PHILIPPINES, INC. 43.00

BUREAU OF CUSTOMS

104377551 10/17/03 23,759.00

BUREAU OF CUSTOMS

0011196 11/04/03 35,488.00

BUREAU OF CUSTOMS

288,194.00

Subtotal

413,201 .41

f. Per Listing under Exhibit W-13 €a..

Page 4 of 5

li29

ANNEXA

TEAM ENERGY CORPORATION

(formerly Mirant Pagbilao Corporation and Southern Energy Quezon, Inc.)

-vs- COMMISSIONER OF INTERNAL REVENUE

OTHER INPUT VAT DISALLOWANCES

FOR THE FIRST TO FOURTH QUARTERS OF 2003

BUREAU OF CUSTOMS

1230 997.00

BUREAU OF CUSTOMS

74283167 07/23/03 1,053.00

BUREAU OF CUSTOMS

77515103 07/24/03 3,298.00

BUREAU OF CUSTOMS

103353844 10/31/03 2,827.00

BUREAU OF CUSTOMS

108306301 10/28/03 4,183.00

BUREAU OF CUSTOMS

107310865 10/01/03 3,002.00

BUREAU OF CUSTOMS

107731626 11/17/03 2,681 .00

Subtotal

18,041.00

g. Per Listing under Exhibit W-15

BUREAU OF CUSTOMS

103951136 11/05/03 178.00

BUREAU OF CUSTOMS

0012753 12/8/03 7,468.00

Subtotal

7,646.00

h. Per Listing under Exhibit W-45

FAMOUS ELECTRICAL AND CONST SUPP

82373 7/14/03 18,093.50

Subtotal

18,093.50

i. Per Listing under Exhibit W-35 1,599,435.62

Less: Input VAT per Additional Documents Submitted

first set of documents (363,254.83) Dated outside period of claim

BBB

CAL TEX (PHILIPPINES), INC. 9050859896 12/26/02 7,132.80 second set of documents (318,747.85) Purchase of goods supported by sales invoice wherein amounts does not tally

LLL-5

ACHIEVERS SALES CORPORATION

Per schedule 12,281 .17 Per sales invoice (5, 184.80)

Subtotal

931,662.11

Total

2,249,667.48

Page 5 of 5

1. r . Q l.J