Court of Tax Appeals · Second Division

CBK Power Company Limited vs. Commissioner of Internal Revenue

CTA Case No. 7460 July 16, 2009 UY

REPUBLIC OF THE PHILIPPINES

Court of Tax Appeals

QUEZON CITY

SECOND DIVISION

CBK POWER COMPANY

LIMITED,

Petitioner,

~ versus -

COMMISSIONER OF INTERNAL

C.T.A. CASE NO. 7460

Members:

CASTANEDA, JR., Chairperson

UY, and

PALANCA-ENRIQUEZ, JJ.

Promulgated:

REVENUE,

3:50 p.m.

a ~ es

DECISION

UY, J.:

Before the Court is a Petition for Review filed by CBK Power Company Limited, praying for the issuance of tax credit certificate in the amount of P 78,195,633.13, allegedly representing unutilized input taxes for the period covering January 1, 2004 to December 31, 2004, pursuant to Sections 112(A) and 112(B) of the National Internal Revenue Code (NIRC) of 1997.

THE FACTS

Petitioner, CBK Power Company Limited, is a partnership duly organized and existing under and by virtue of the laws of the Philippines, with principal office at the 995

NPC Compound Kalayaan, Laguna.’ On the other hand, respondent is the duly appointed Commissioner of Internal Revenue vested with authority to act as such, including the power to decide, approve, and grant refunds or tax credit of erroneously or illegally collected internal revenue taxes as provided by law. He holds office at the Bureau of Internal Revenue (BIR), National Office Building, Diliman, Quezon City.”

Petitioner is a special purpose entity, the sole purpose of which is to engage in all aspects of (a) the design, financing, construction, testing, commissioning, operation, maintenance, management and ownership of Kalayaan Il pumped-storage hydroelectric power plant, the new Caliraya Spillway, and other assets located in the Province of Laguna; and (b) the rehabilitation, upgrade, expansion, testing, commissioning, operation, maintenance and management of the Caliraya, Botocan and Kalayaan | hydroelectric power plants and their related facilities located in the Province of Laguna. It is registered as a valued-added tax (VAT) entity, with Tax Identification Number (TIN) 205-760-474-000, in accordance with the NIRC, as amended. It was issued a BIR Certificate of Registration OCN 1RC0000050243* dated April 10, 2000 and BIR Certificate of Registration OCN 1RC0000195405 on May 11, 2005.° On December 29, 2003, petitioner filed an Application for VAT zero-rate with BIR in accordance with Section 108(B)(3) of the NIRC of 1997. The said Application was duly approved by the BIR, pursuant to VAT Review Committee Ruling No. 018- ' Par, 1, Facts Admitted, Joint Stipulation of Facts and Issues (JSFI), Docket, p. 327.

? Par. 2, Facts Admitted, JSFI, Docket, pp. 327-328.

3 Annex “B”, Petition for Review, Docket, p. 19; Par. 5, Facts Admitted, JSFI, Docket, pp. 328-329. ‘ Annex “C”, Petition for Review, Docket, p. 28.

> Par, 3, Facts Admitted, JSFI, Docket, p. 328.

G96

03, as indicated in the lower portion thereof which in part reads: “Valid only for sale of electricity from January 1, 2004 to December 31, 2004, unless sooner revoked.”© On the following dates, petitioner filed its Original and Amended Quarterly

VAT Returns:’

Taxable Date of Filing

Year 2004

Quarter Original Quarterly Amended Quarterly |

VAT Return VAT Return

| __ 1st + April 23, 2004 March 23,2005 | 2nd July 1, 2004 iL June 29, 2005 3rd f October 22,2004 | June 29, 2005 [ 4th January 25, 2005 | June 29, 2005 Thereafter on June 30, 2005, petitioner, through its tax counsel, filed with the BIR Revenue District Office (RDO) No. 55 of Laguna, an administrative claim for the issuance of tax credit certificate in the amount of P 78,195,633.13, for its unutilized input taxes on the purchase of capital goods for calendar year 2004 in the amount of P 51,920,893.34, pursuant to then Sections 112(A) and 112(B) of the NIRC of 1997°, and its unutilized input taxes on the local purchase of goods and services, other than capital goods, for calendar year 2004 in the amount of P 26,274,739.79, attributable to its zero-rated sales, pursuant to Section 112(A) of the same Code.® Due to respondent's failure to act on petitioner's request for issuance of tax credit certificate and in order to preserve its right to claim refund by judicial action, petitioner filed the instant Petition for Review on April 20, 2006.

® Pars. 10 and 11, Facts Admitted, JSFI, Docket, pp. 330-331. Exhibit “I”.

” Par. 6, Facts Admitted, JSFI, Docket, p. 329.

® Republic Act No. 9337, which took effect on July 1, 2005, amended Section 112 of the NIRC of 1997, by adding a certain clause to its paragraph (A), and by deleting the provisions of its paragraph (B) referring to “Capital Goods”.

° Par. 9, Facts Admitted, JSFI, Docket, p. 330. Annex “S”, Petition for Review, Docket, pp. 241-249. Exhibit “A”,

Respondent filed his “Answer” on June 16, 2006, interposing the following

Special and Affirmative Defenses:

“4. Petitioner’s alleged claim for refund is subject to administrative routinary investigation/examination by respondent’s Bureau;

5. The amount of P78,195,633.13 being claimed by petitioner as alleged unutilized input taxes for the period January 1, 2004 to December 31, 2004 was not properly documented;

6. 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;

7. Petitioner must show that it has complied with the provisions of Sections 112 and 229 of the National Internal Revenue Code of 1997 on the prescriptive period for claiming tax refund/credit;

8. 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).”"° During trial, petitioner presented testimonial and voluminous documentary evidence primarily aimed at proving its supposed entitlement to the issuance of a tax credit certificate in the amount of P 78,195,633.13, representing input taxes for the period covering January 1, 2004 to December 31, 2004.

When it was respondent's turn to present evidence on June 2, 2008, his counsel failed to appear and upon motion of petitioner's counsel, the former was deemed to have waived the right to present evidence for respondent, and the Court directed both parties’ counsel to submit their respective Memorandum."’ After the © Docket, p. 264.

'! Minutes of Hearing held on June 2, 2008 stating that petitioner is given 30 days from said date to file memorandum while respondent’s counsel is given 20 days from notice to do so and upon expiry of the period for the filing thereof, this case shall be deemed submitted for decision, Docket, p. 749. nih 993 submission of petitioner's Memorandum” within the given period, this case was submitted for decision on July 18, 2008."°.

However, upon motion of respondent 14 and in the interest of justice, his belatedly filed Memorandum” was admitted by the Court in the Resolution dated on August 8, 2008.’°

THE ISSUES

The parties have jointly stipulated the following issues‘ for this Court's resolution:

“4.

Whether or not Petitioner is entitled to a tax credit certificate in the amount of P51,920,893.34 representing unutilized input taxes paid on its purchases of capital goods for the period January 1, 2004 to December 31, 2004:

Whether or not the unutilized input taxes amounting to P51,920,893.34 paid by Petitioner for the period January 1, 2004 to December 31, 2004 were related to payments to its contractors for the construction of the hydroelectric power plants in Laguna, as well as all related expenditures in pursuance of the rehabilitation, construction and operation of the power plant complex;

Whether or not Petitioner has duly substantiated its claim for the issuance of a tax credit certificate for unutilized input taxes amounting to P51,920,893.34 paid on its purchases of capital goods for the period January 1, 2004 to December 31, 2004;

Whether or not the input taxes amounting to P51,920,893.34 paid by Petitioner on its purchases of capital goods for the period January 1, 2004 to December 31, 2004 have not been carried over to the succeeding quarters and have not been utilized against any output tax;

Whether or not Petitioner is entitled to a tax credit certificate in the amount of P26,274,739.79 representing unutilized input taxes paid or incurred on local purchase of goods and services, other than capital goods, attributable to Petitioner's zero-rated sales to "2 Petitioner’s Memorandum filed on July 2, 2008, Docket, pp. 750-819.

'? Resolution dated July 18, 2008, Docket., p. 821.

'* Motion to Admit Memorandum, Docket, pp. 828-830.

'S Respondent’s Memorandum filed on August 8, 2008, Docket, pp. 831-848. 6 Docket. p. 850.

'7 Issues to be Tried or Resolved, JSFI, Docket, pp. 331-334.

209

10.

11.

the National Power Corporation (NPC) for the period January 1, 2004 to December 31, 2004.

Whether or not Petitioner's sale of services to the National Power Corporation (NPC) for the period January 1, 2004 to December 31, 2004 qualify as zero rated sales;

Whether or not unutilized input taxes amounting to P26,274,739.79 representing unutilized input taxes paid or incurred on local purchase of goods and services, other than capital goods, for the period January 1, 2004 to December 31, 2004 were attributable to Petitioners zero rated sales for the same period;

Whether or not Petitioner has duly substantiated its claim for the issuance of a tax credit certificate for its unutilized input taxes amounting to P26,274,739.79 representing unutilized input taxes paid or incurred on local purchase of goods and services, other than capital goods, attributable to its zero-rated sales for the period January 1, 2004 to December 31, 2004;

Whether or not the unutilized input taxes amounting to P26,274,739.79 representing unutilized input taxes paid or incurred on local purchase of goods and services, other than capital goods, for the period January 1, 2004 to December 31, 2004 have not been carried over to the succeeding quarters and have not been utilized against any output tax;

If any portion of Petitioners unutilized input taxes paid on its purchase of capital goods amounting to P51,920,893.34 for the period January 1, 2004 to December 31, 2004, is disallowed for not falling under the category of ‘capital goods’ under then Section 112(B) of the Tax Code, whether or not Petitioner is entitled to claim the same as a tax credit under then Section 112(A) of the Tax Code, as unutilized/excess input taxes paid or incurred on its local purchases of goods and services for the period January 1, 2004 to December 31, 2004 attributable to its zero-rated sales for the same period;

Whether or not Petitioner had timely and duly filed its administrative claims for the refund or issuance of tax credit certificates amounting to P51,920,893.34 representing unutilized input taxes paid on its purchases of capital goods for the period January 1, 2004 to December 31, 2004; and for P26,274,739.79 representing unutilized input taxes paid or incurred on local purchase of goods and services, other than capital goods, attributable to Petitioner's zero-rated sales to the National Power 31, 2004, respectively; and, Corporation (NPC) for the period January 1, 2004 to a

1 Fi

12. Whether or not Petitioner is entitled to a tax credit certificate in the total amount of Seventy-Eight Million One Hundred Ninety-Five

Thousand Six Hundred Thirty-Three Pesos and 13/100

(P78,195,633.13) representing its unutilized input taxes for the period January 1, 2004 to December 31, 2004.”

Being interrelated, We simplify the foregoing issues into a general all- encompassing issue, as follows:

“Whether or not petitioner is entitled to issuance of tax credit certificate in the total amount of Seventy Eight Million One Hundred Ninety Five Thousand Six Hundred Thirty Three Pesos and Thirteen Centavos (P 78,195,633.13), representing alleged unutilized input taxes for the period covering January 1, 2004 to December 31, 2004, pursuant to Section 112 (A) and (B), and Section 229 of the NIRC of 1997.”

Petitioner’s arguments Petitioner asserts that it had sufficiently proven that it has complied with all the basic requirements in order to be entitled to the issuance of a tax credit certificate. It points out that it is a VAT-registered person; that the input taxes being claimed were paid; that said input taxes have not been applied against its output tax liability; and that its administrative and judicial claims for refund or the issuance of a tax credit certificate were seasonably filed.

Respondent's counter-arqument Respondent contends that petitioner has not sufficiently proven its claim as the amount of P 78,195,633.15 representing unutilized VAT input taxes for the period January 1, 2004 to December 31, 2004 was not properly documented in accordance with the requirements set forth under Section 112 (C) of the Tax Code of 1997.

Thus, the instant petition should allegedly be dismissed for lack of merit. an <a) oD bow

THIS COURT’S RULING

Petitioner anchors its claim on Sections 110(A) and (B), and 112(A) and (B) of the NIRC of 1997, which are quoted hereunder for ready reference: “SEC. 110. Tax Credits. - (A) Creditable Input Tax. -

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

(a) Purchase or importation of goods:

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

(v) For use in trade or business for which deduction for depreciation or amortization is allowed under this Code, except automobiles, aircraft and yachts.

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

(2) The input tax on domestic purchase of goods or properties shall be creditable:

(a) To the purchaser upon consummation of sale and on importation of goods or properties; and

(b) To the importer upon payment of the value-added tax prior to the release of the goods from the custody of the Bureau of Customs.

However, in the case of purchase of services, lease or use of properties, the input tax shall be creditable to the purchaser, lessee or licensee upon payment of the compensation, rental, royalty or fee.

(3) A VAT-registered person who is also engaged in transactions not subject to the value-added tax shall be allowed tax credit as follows:

(a) Total input tax which can be directly attributed to transactions subject to value-added tax; and

(b) A ratable portion of any input tax which cannot be directly attributed to either activity. a 962

The term “input tax” means the value-added tax due from or paid by a VAT-registered person in the course of his trade or business on importation of goods or local purchase of goods or services, including lease or use of property, from a VAT-registered person. It shall also include the transitional input tax determined in accordance with Section 111 of this Code.

The term “output tax" means the value-added tax due on the sale or lease of taxable goods or properties or services by any person registered or required to register under Section 236 of this Code.

(B) Excess Output or Input Tax. - If at the end of any taxable quarter the output tax exceeds the input tax, the excess shall be paid by the VAT-registered person. If the input tax exceeds the output tax, the excess shall be carried over to the succeeding quarter or quarters. Any input tax attributable to the purchase of capital goods or to zero- rated sales by a VAT-registered person may at his option be refunded or credited against other internal revenue taxes, subject to the provisions of Section 112.”

“SEC. 112. Refunds or Tax Credits of Input Tax. - (A) Zero-rated or Effectively Zero-rated Sales. - Any VAT- registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax: Provided, however, That in the case of zero-rated sales under Section 106(A)(2)(a)(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): Provided, further, That where the taxpayer is engaged in zero-rated or effectively zero- rated sale and also in taxable or exempt sale of goods or properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales.

(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. ” MA 963

The aforequoted provisions mention two (2) instances when the refund/tax credit of excess input VAT within two (2) years after the close of the taxable quarter may be allowed: (A) when the excess input VAT is attributable to zero-rated or effectively zero-rated sales;"® or (B) when the excess input VAT is attributable to capital goods, imported or locally purchased by a VAT-registered person. '° Records show that petitioners Amended Quarterly VAT Returns for the four quarters of calendar year 2004 reflect the following details:

Input Tax on

Other Goods

Input Tax on

Date Filed Zero-Rated Sales Capital Goods and Services Total Input Tax 3/23/2005 FP 1,589,203,468.07 | FP 25,288,903.22 | FP 10,254,146.56 | P 35,543,049.78 6/29/2005 1,585, 170,102.07 12,936, 890.84 3,464,870.57 16,401,761.41 3rd 6/29/2005 1,597 ,052,738.88 7,671, 732.65 8,055,716.95 15, 727,449.60 4th 6/29/2005 1,600,605,038.92 6,105, 854.91 4,526,170.73 10,632,025.64

Taxable

Exhibit | Quarter

DD

FF

R 6,372,031,347.94 @ 52,003,381.62 | FP 26,300,904.81 | BR 78,304,286.43 Out of the reported input VAT of PF 78,304,286.43, only the amount of P 78,195,633.13, representing input tax on capital goods purchased in the amount of FP 51,920,893.34 and input tax on local purchases of goods and services other than capital goods in the amount of P 26,274,739.79, can be the subject of the present claim, computed as follows:?°

Total

P 35,543,049.78 16,317,801.51 1st FP 25,288,903.22 P 10,254,146.56 2nd 12,854 402.56 3,463,398.95 Quarter-2004 cE Capital Goods __| Other Goods/Services 3rd 7,671,732.65 8,052,618.89 15,724 ,351.54 4th 6,105,854.91 4,504,575.39 10,610,430.30 FP 8,195,633.13 Total P 51,920,893.34 PF 26,274,739.79 Before We look into the merits of petitioner's claimed input VAT in the total amount of Seventy Eight Million One Hundred Ninety Five Thousand Six Hundred Thirty Three Pesos and Thirteen Centavos (P 78,195,633.13), a prior determination '8 Section 112 (A), NIRC of 1997. '? Section 112 (B), NIRC of 1997. 2° Refer to Annex “A” of Exhibit “HHHHH”.

of the timeliness of the filing of the instant claim is appropriate considering that claims filed beyond the reglementary period will not prosper.

In the case of Commissioner of Internal Revenue vs. Mirant Pagbilao Corporation (Formerly Southern Energy Quezon, Inc.),”' the Supreme Court held that the period within which to file the claim for refund or tax credits of unutilized input VAT attributable to zero-rated or effectively zero-rated sales is provided under Section 112(A) of the NIRC of 1997. The pertinent portion of the High Court’s Decision reads:

“The claim for refund or tax credit for the creditable input VAT payment made by MPC embodied in OR No. 0189 was filed beyond the period provided by law for such claim. Sec. 112 (A) of the NIRC pertinently reads:

(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: x x x (Emphasis ours.)

The above proviso clearly provides in no uncertain terms that_unutilized input VAT payments not otherwise used for any internal revenue tax due the taxpayer must be claimed within two years reckoned from the close of the taxable quarter when the relevant sales were made pertaining to the input VAT regardless of whether said tax was paid or not. As the CA aptly puts it, albeit it erroneously applied the aforequoted Sec. 112 (A), ‘[P]rescriptive period commences from the close of the taxable quarter when the sales were made and not from the time the input VAT was paid nor from the time the official receipt was issued.’ Thus, when a zero-rated VAT taxpayer pays its input VAT a year after the pertinent transaction, said taxpayer only has a year to file a claim for refund or tax credit of the unutilized creditable input VAT. The reckoning frame would always be the end of the quarter when the pertinent sales or transaction was made, regardless when the input VAT was paid. xxx” (Emphases and underscoring supplied) *! GR. No. 172129, September 12, 2008.

Based on the aforequoted jurisprudence, the reckoning of the prescriptive period shall commence from the close of the taxable quarter when the relevant sales were made pertaining to the input VAT regardless of whether said tax was paid or not. The present claim involves petitioner's input VAT incurred for the four (4) quarters of 2004. Counting from the close of each of the said taxable quarters, petitioner had until the following dates within which to file its claim, both in the administrative and judicial levels:

—_

Date of Filin ‘|

Taxable Close of End of eames T succnr | Quarter Taxable Two(2) Administrative | Judicial Amount of (Year 2004) Quarter year period Claim Claim Ciaim 1st 3/31/2004 3/31/2006 6/30/2005 4/20/2006 P 35,543,049.78 | 2nd 6/30/2004 4 beens ao 6/30/2005 seer P 16,317,801.51 3rd 9/30/2004 9/30/2006 6/30/2005 ‘| 4/20/2006 PB 15,724,351.54 4th 12/31/2004 | 12/31/06 6/30/2005 [4/20/2006 FP 10,610,430.30 As shown in the foregoing table, petitioner's administrative and judicial claims for refund of input VAT for the second, third, and fourth quarters of 2004 fall within the two-year prescriptive period except that of the first quarter of 2004 which closed on March 31, 2004. Although petitioner's administrative claim for the first quarter of 2004 was filed seasonably on June 30, 2005, its judicial claim thereon (which is included in the instant Petition for Review) was filed out of time, or only on April 20, 2006, or beyond the two-year prescriptive period, the last day of which was on March 31, 2006. Consequently, petitioner's claim for refund of the input taxes for the first quarter of 2004 in the amount of P 35,543,049.78, representing the sum of the input VAT claim on capital goods purchases amounting to P 25,288,903.22 and of the input VAT claim on other goods and services amounting to P 10,254, 146.56 shail be disallowed in this petition.

966

Accordingly, We shall evaluate petitioner's refund claim of excess input VAT only those pertaining to the second, third, and fourth quarters of 2004 in the total amount of P 42,652,583.35,”* consisting of the following: input VAT claim on capital goods amounting to P 26,631,990.12:7° and input VAT claim on other goods and services amounting to P 16,020,593.23.74 Petitioner avers however that in the event that a portion of its tax credit claim for unutilized input taxes on the purchase of capital goods is disallowed for not falling under the category of “capital goods” under Section 112(B) of the NIRC of 1997, itis nevertheless still entitled to claim the same as a tax credit/refund under Section 112(A) of the NIRC of 1997 because said unutilized input taxes are also attributable to its effectively zero-rated sales to the National Power Corporation (NPC) for calendar year 2004.7° Taking the foregoing into consideration, We shall first discuss petitioner’s claimed input taxes on domestic purchases of capital goods in the reduced amount of P 26,631,990.12 as allowed under Section 112(B) of the NIRC of 1997, upon compliance with the following requisites:

1. that claimant is a VAT-registered person;

2. that input taxes were paid on capital goods imported or locally purchased;

3. that such input taxes were not applied against its output VAT liability; and

4. that the claim for refund was filed within the two-year prescriptive period.

22 B78 .195,633.13 less B 35,543,049.78. 3 B 51,920,893.34 less B 25,288,903.22. 24 B 26,274,739.79 less B 10,254,146.56.

25 Dar. 32, Memorandum for the Petitioner, Docket, p. 771. i

It is undisputed that petitioner is a VAT-registered entity.”° To determine compliance with the second requirement, We look into the meaning of “capital goods” as defined in Section 4.106-1 of Revenue Regulations (R.R.) No. 7-95°’, implementing Section 112(B) of the NIRC of 1997, to wit: “SECTION 4.106-1. Refunds or tax credits of input tax. -

XXX XXX XXX

(b) Capital Goods —

XXX XXX XXX

‘Capital goods or properties’ refer to goods or properties with estimated useful life greater than one year and which are treated as depreciable assets under Section 29(f)*", used directly or indirectly in the production or sale of taxable goods or services.” Clearly, in order that the items purchased can be classified as capital goods or properties, petitioner must show compliance with the following:

1. that the goods or properties must have estimated useful life of more than one year;

2. they are treated as depreciable assets under Section 29(f)**: and

3. they are used directly or indirectly in the production or sale of taxable goods or services.

Petitioner alleges that its input VAT on capital goods represents payments to its contractors and/or suppliers of goods and services, such as IMPSA Construction Corporation, among others, for the construction of the hydroelectric power plants in Laguna, as well as for the rehabilitation, construction, and start-up of the power plant complex; and these payments purportedly qualify as capital goods. To support its

27 SUBJECT:Consolidated Value-Added Tax Regulations

6 Dar, 3, Facts Admitted, JSFI, Docket, p. 328; Annex “C”, Petition for Review, Docket, p. 28. 28 Now, Section 34(F), NIRC of 1997. ny 968 claim, petitioner submitted various VAT invoices/official receipts *°, including its Summary of VAT for the months of January to December 2004°’, and the Report*® of Mr. Richard Lapres of Manabat Delgado Amper & Co., the Court-commissioned Independent Certified Public Accountant (CPA).

Moreover, petitioner's Accounting Manager, Joey Polintan, testified by way of Affidavit,*° that petitioners payments to and/or billings by its contractors and/or suppliers of capital goods are reflected under “Property, Plant and Equipment” in the Statement of Assets, Liabilities, and Partners’ Capital as of December 31, 2004 and 2003 of the Audited Financial Statements for the period ending December 31, 2004; that the said payments to and/or progress billings by its contractors and/or suppliers of capital goods were initially recorded under the asset account “Construction Work in Progress”; that once a particular power plant is completed, the accumulated costs in the “Construction Work in Progress” accounts are then transferred to the corresponding “Property, Plant and Equipment” accounts. Therefore, according to him, a depreciation expense is recognized upon completion of each unit by recording depreciation expense and the corresponding accumulated depreciation in its General Ledgers.

A perusal of the above-mentioned documents however fails to convince the Court that such payments were reported in petitioner’s financial statements for the years 2003 and 2004**. In addition, petitioner neglected to provide a detailed *° Exhibits “BBBB-1” to “BBBB- 1335”, “BBBB-1A” to “BBBB-1335A”, “CCCC-1” to “CCCC-510”, “CCCC- 1A” to “CCCC-510A”, “DDDD-1” to “DDDD-74”, "DDDD-1A” to “DDDD-74A”, “EEEE-1” to “EEEE-162”, “EEEE-11A” to “EEEE-162A”, “FFFF-1” to “FFFF-58”, “FFFF-2A to “FFFF-57A”, “GGGG-1” to “GGGG-7”, “GGGG-1A” to “GGGG-7A”, “HHHH-1” to “HHHH-61”, “HHHH-1A” to “HHHH-61A”, “IIII-1” to “IIII-11”, “TII-1A” to “IINI-7A”, “JSJJ-1” to “JJJJ-46”, and “JJJJ-1A” to “JJJI-44A”. .

31 Annex “A”, Exhibit “HHHHH”.

3? Exhibit “HHHHH”.

* Exhibit “YYY”, at pp. 13-14. Docket, pp. 424-425.

4 Exhibit “II.

schedule of each of its accounts under “Property, Plant and Equipment’, to enable the Court to ascertain and reconcile the corresponding payments to, and/or billings by its contractors and/or suppliers of capital goods. And as previously discussed, the input VAT arising from the purchase of capital goods pertaining to the first quarter in the amount of P 25,288,903.22 shall be disallowed due to prescription.

Furthermore, in his Report®® dated September 24, 2007,

the Court-

commissioned Independent CPA presented the following findings as regards petitioner's purchases of capital goods:

Annex G

{CPA Report Input VAT

Missing Official Receipts (Exhibits GGGG-1 and GGGG-1A

2 | Supported by out of period official receipts. (Exhibits GGGG-2 to GGGG-7, and GGGG-2A to GGGG-7A) P 1,177,856.52 861,903.37 Discrepancies due to rounding off differences in foreign currency rate used by Company against per examination. (Exhibits JJJJ- 1 to JJJJ-44, JJJJ-46 and JJJJ-1A to JJJJJ-44A

Annex J

165,445.57 FP 2,205,205.46 We break down the above amount of P 2,205,205.46 on a per quarter basis, as follows:*° a ee

Exhibit

Official Receipts

Supported by out of period official receipts. Discrepancies due to rounding off differences in foreign currency rate used by Company against per examination. | Annex J

Annex G

1st Qtr FP 306,259.49 oF 3rd Qtr 4th Qtr P 871,597.03 P14, 177,856.52 P 43,723.75" RB 43,723.75 12,706.96 P 318,966.45 P 512.14 B 512.14 861,903.37 108,502.72 P 1,842,003.12 861,903.37 165,445.57 P 2,205,205.46 Thus, the remaining input VAT claim on capital goods substantiated by VAT official receipts/sales invoices, considering the above findings of the Independent CPA, specifically, that which refers to the above-stated discrepancies due to > Exhibit “HHHHH”, pp. 10-11.

36 Annexes “G” and “J”, Exhibit “HHHHH”. >7 Refer to Annex “1” of this Decision.

qt oJ

Oo

rounding off in the amount of P 43,723.75, and those that are already barred by prescription, is computed as follows:

Input VAT claim on capital goods P 51,920,893.34

Less: Disallowances

-Input VAT (for the 1* Qtr.-2004) barred due to prescription P 25,288 ,903.22 -Per ICPA's Findings pertaining to 2", 3°, and 4" gtrs. (P2,205,205.46 less P43,723.75) 2,161 ,481.71 27 450,384.93 Remaining Input VAT claim on capital goods BP 24,470,508.41 Notably, petitioner substantiated with VAT official receipts/sales invoices its remaining claimed input VAT on capital goods of F 24,470,508.41, but it failed to prove that the related purchases formed part of the account under “Property, Plant and Equipment” as reflected in its audited financial statements for calendar year 2004.

Nevertheless however, as correctly pointed out by petitioner, it may still claim the substantiated input taxes on purchases of capital goods under Section 112(A) of the NIRC of 1997, because the said input taxes are also attributable to petitioner's zero-rated sales for calendar year 2004. Relative thereto, it is vital to petitioner ‘s claim to prove compliance with the requisites mentioned in Section 112(A) of the NIRC of 1997, to wit:

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 directly attributable to zero-rated sales or effectively zero-rated sales;

4. that the input taxes were not applied against any output VAT liability during and in the succeeding quarters; and

5. that the claim for refund was filed within the two-year prescriptive period.

As regards the first requisite, there is no argument that the sale of electricity by a VAT-registered taxpayer, like herein petitioner, to the NPC is effectively subject ny 971 to zero percent (0%) VAT, pursuant to Section 108(B)(3) of the NIRC of 1997. This issue had been settled in the landmark case of Maceda vs. Macaraig*’, where the Supreme Court held that:

“The NPC is a non-profit public corporation created for the general good and welfare, wholly owned by the government of the Republic of the Philippines. From the very beginning of its corporate existence, the NPC enjoyed preferential tax treatment, to enable the Corporation to pay the indebtedness and obligation and in furtherance and effective implementation of the policy enunciated in Section one of ‘Republic Act No. 6395’ which provides:

XXX XXX XXX

x x x. Presidential Decree No. 938 amended the tax exemption by simplifying the same law in general terms. It succinctly exempts NPC from ‘all forms of taxes, duties, fees, imposts, as well as costs and service fees including filing fees, appeal bonds, supersedeas bonds, in any court or administrative proceedings’.

The use of the phrase ‘all forms’ of taxes demonstrate the intention of the law to give NPC all the tax exemptions it has been enjoying before. The rationale for this exemption is that being non-profit the NPC ‘shall devote ail its returns from its capital investment as well as excess revenues of its operation, for expansion. xxx’

XXX XXX XXX

It is evident from the provisions of P.D. No. 938 that its purpose is to maintain the tax exemption of NPC from ail forms of taxes including indirect taxes as provided for under R.A. No. 6895 and P.D. No. 380 if it is to attain its goals.” Moreover, in the same case, NPC’s tax exemption was affirmed and further explained as follows:

“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 and indirect.

XXX XXX XXX

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 38 G.R. No. 88291, May 31, 1991. ‘A

Sve

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”*’.

In keeping with the foregoing jurisprudence, the Court has consistently ruled that the NPC is an entity with a special charter, which categorically makes it exempt from payment of all taxes, whether direct or indirect, including VAT. Hence, services rendered by a VAT-registered entity, like herein petitioner, to NPC are effectively subject to zero percent (0%) VAT. Moreover, the BIR itself approved petitioner's Application for VAT Zero-rating dated December 29, 2003 which is “(v)alid only for sale of electricity from January 1, 2004 to December 31, 2004, unless sooner revoked.”* It was also established that petitioner entered into a Second Accession Undertaking with the NPC and its affiliates, Industrias Metalurgicas Pescarmona S.S. (IMPSA) and CBK Power Corporation (CBK Power) on September 20, 2000, wherein petitioner became a party to a Build-Rehabilitate-Operate-and-Transfer (BROT) Agreement dated November 6, 1998 to rehabilitate, construct, operate, and maintain the Caliraya, Botocan, and Kalayaan hydroelectric power plants.*' Under the BROT Agreement, petitioner shall generate and supply electricity to NPC and shall receive fees in consideration thereof.*” In its Amended VAT Returns for the second, third, and fourth quarters of calendar year 2004, petitioner's reported effectively zero-rated sales/receipts amounted to FP 4,782,827,879.87.*° However, out of the reported effectively zero- ° Resolution dated June 8, 1993, G.R. No. 88291 (223 SCRA 217). Exhibit “I.

“| Exhibit “D”.

” Exhibit “C-6”

“ Exhibits “BB-2”, “DD-4”, and “FF-4”, 973 rated sales/receipts of PF 4,782,827,879.87, only the amount of P 4,539,223,259.114 is duly covered by official receipts. Therefore, only a portion of the input VAT claim attributable to the substantiated zero-rated receipts will be considered for refund.

The rate to be applied is computed as follows:

Supported zero-rated receipts P 4,539,223,259.11 Divided by total declared zero-rated receipts + P4,782,827 879.87 Rate of supported zero-rated receipts 94.906682262% To prove compliance with the second requisite, petitioner submitted invoices and official receipts to support its purchase of goods other than capital goods and services for calendar year 2004, which has corresponding input VAT in the aggregate amount of P 26,274,739.79. As earlier mentioned, the input VAT arising from the purchase of goods other than capital goods and services pertaining to the first quarter in the amount of P10,254,146.56 shall be disallowed due to prescription.

Upon verification of the submitted documents, the Independent CPA had come up with the following findings, to wit:

Exhibit

FINDINGS “HHHHH” Total

A. INPUT VAT ON PURCHASES OF SERVICES 1 Missing Official Receipts Annex E P 714,611.90 2 Original ORs not available, supported only by photocopies of the original ORs. Annex E 6,849.59 Without ORs, supported by machine 3 validated invoices. Invoices do not have BIR authority to print. Annex E 58,972.21 Without ORs, supported only by bank 4 deposit or bank transaction record. Bank deposit slips and bank transaction records do not comply with invoicing requirements. Annex E 2,054.05 5 | Supported by ORs which do not bear BIR authority to print. Annex E 2,545.46 6 — Supported by out of period Ors. Annex E 15,881.35 7 Supported by non-VAT ORs. Annex E 5,066,752.54 8 Supported by provisional receipts. Annex E 152,758.41 g Supported by ORs not in the name of the Company. Annex E 798.41 “ See Annex “4” of this Decision.

10 11 12 Supported by OR where the Php amounts are exactly the same as the invoice amount in USD - Exclusive of input VAT per audit based on Php amount. Annex H Discrepancies due to difference in foreign currency rate used by Company against per examination. Annex H Supported by official receipts wit VAT amount incorrectly computed. Annex H 794,883.30 12,166.69 42,955.69 B. INPUT VAT ON PURCHASES OF GOODS OTHER THAN CAPITAL GOODS F 6,871,229.60 1 Missing Sales Invoices. Annex F P 143,971.32 2 Supported by Sales Invoices which do not bear BIR authority to print. Annex F 8,648.21 3 Supported by statement of accounts or other documents which do not comply with invoicing requirements. Annex F 104,994.69 Unsubstantiated VAT on importation of 4 goods (No import declarations or import entry documents evidencing payment of VAT). Annex F 327,297.00 5 Supported by out of period sales invoices. Annex F 69,661.54 6 Supported by sales invoices not in the name of the Company. Annex F 259.09 7 Original sales invoice not available, supported only by photocopies of the original sales invoice. Annex F 11,492.44 8 Discrepancies due to rounding off differences in foreign currency rate used by Company against per examination. Annex | 29.81 9 Supported by sales invoices with VAT amount incorrectly computed. Annex /| 818.20 667,172.30 TOTAL BP 7,538,401.90 Out of the above amount of P /7,538,401.90, the input VAT of P 6,026,719.82*°, as shown below, pertains to the first quarter of 2004: FINDINGS Exhibit 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total A. EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

Missing Official Receipts Annex E F 381,795.19 P 4,070.15 | # 139,532.79 | @ 189,213.77 PF 714,611.90 Original ORs not available, supported Annex E 6,376.86 - =f 472.73 6,849.59 only by photocopies of the original ORs.

* Refer to Annexes “2” and “3” of this Decision.

379

PURCHASES OF GOODS OTHER THAN

Without ORs, supported by machine validated invoices. Invoices do not have BIR authority to pri 15,172.98 Without ORs, supported only by bank deposit or bank transaction record. Bank deposit slips and bank transaction records do not comply with invoicing requirements.

Supported by ORs which do not bear BIR authority to print. Annex E

Annex E

9,301.64 58,972.21

Annex E

Supported by ORs not in the name of the Company. Annex E Supported by ORs where the Php amounts are exactly the same as the invoice amount in USD - Exclusive of input VAT per audit based on Php amount. Annex H Discrepancies due to difference in foreign currency rate used by Company against per examination. Annex H 12 | Supported by official receipts wit VAT amount incorrectly computed. Annex H 18,830.65 3,282.86 P 375,348.92 19,024.01 P §,965,642.47 B. EXCEPTIONS OF INPUT VAT ON

CAPITAL GOODS

Supported by statement of accounts or other documents which do not comply with invoicing requirements.

Unsubstantiated VAT on importation of goods (No import declarations or import entry documents evidencing payment of ‘ Annex F - :

Supported by out of period sales invoices. Annex F 45,685.17 22,330.91 Supported by sales invoices not in the name of the Company.

Original sales invoice not available, supported only by photocopies of the original sales invoice.

Discrepancies due to rounding off differences in foreign currency rate used per examination.

Missing Sales Invoices. Pe -980.25| 1,757.46 Supported by Sales Invoices which do epee not bear BIR authority to print. Annex F 37,039.21 136.55 Ww 2,054.05 109.70 794,883.30 1,177.34 12,166.69 5,548.10 35,496.28 104,994.69 327,297.00 327,297.00 1,645.46 | 69,661.54 11,492.44 11,492.44 0.56 Supported by sales invoices with VAT amount incorrectly computed.

PF 38,684.92 RB 218,209.05 ® 6,026,719.82 2,545.46 LS skekeh!

15,659.85 15,881.35 6,790.48 5,066,752.54 123,734.64 152,758.41 798.41 1,818.17 42,955.69 FP 179,524.13 | B 350,714.08 P 6,871,229.60 P 141,233.61 P 143,971.32 8,648.21 8,648.21 818.20 PB 75,700.38 976 ® 524,986.30 P 667,172.30 P 7,538,401.90

Thus, deducting the said amount of P 6,026,719.89 from the amount of FP 7,538,401.90, the resulting difference in the amount of P 1,511,682.08 would pertain to the second, third, and fourth quarters of 2004; hence, the remaining input VAT claim on goods other than capital goods amounts to FP 14,508,911.15, computed as follows:

Input VAT claim on goods other than capital goods and services P 26,274,739.79

Less: Disallowances

Input VAT barred due to prescription P 10,254,146.56 Per ICPA's Findings pertaining to 2nd, 3rd and 4th quarters 1,511,682.08 11,765 ,828.64 Remaining Input VAT claim on goods other than capital goods and services P 14,508,911.15 To recapitulate, out of the claimed input VAT of P 78,195,633.13 for the four quarters of calendar year 2004, only the input VAT in the total amount of P 38,979,419.56 which are attributable to its effectively zero-rated sales can be a proper Subject of a claim for refund or tax credit, determined as follows:

Substantiated Input VAT claim on capital goods P 24,470,508.41 Substantiated Input VAT claim on other goods and services 14,508,911.15 Total Substantiated Input VAT P 38,979,419.56 As regards the requirement that no input were applied against any output VAT liability during and in the succeeding quarter, considering that all of petitioner's sales were effectively zero-rated,“® there is no output VAT to speak of. In other words, the input taxes were not applied against any output VAT liability, and the said unutilized input VAT was not carried over to the succeeding taxable quarters, as evidenced by its VAT Returns for the four quarters of calendar year 2005.*” Lastly, anent the timeliness of the administrative and judicial claim, as discussed earlier, petitioner's administrative and judicial claims for refund pertaining i 46 Exhibits “7 “BB”, “DD”, and “PR? *’ Exhibits “HH”, “JJ”, “LL”, and “NN”, 977 to its local purchases of goods and services attributable to its effectively zero rated sales for the second, third and fourth quarter of 2004 were filed within the two-year prescriptive period. However, as regards its claim pertaining to the first quarter of 2004, although its administrative claim thereon was filed within the two-year period, its judicial claim which is included in the instant petition for review, was filed out of time, and will therefore be denied.

In sum, petitioner has sufficiently proven its entitlement to the issuance of tax credit certificate, representing unutilized excess input VAT on local purchases of goods and services attributable to effectively zero-rated sales for calendar year 2004, but only in the reduced amount of P 36,994,073.87, computed as follows:

Substantiated Input VAT P 38,979,419.56 Rate of supported zero-rated sales x _ 94.906682262% Valid Input VAT attributable to effectively zero-rated sales P__36,994,073,87

WHEREFORE, all the foregoing considered, the instant Petition for Review is hereby PARTIALLY GRANTED. Accordingly, respondent is hereby ORDERED TO ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner in the reduced amount of THIRTY SIX MILLION NINE HUNDRED NINETY FOUR THOUSAND SEVENTY THREE PESOS AND 87/100 (¥ 36,994,073.87), representing unutilized input VAT for calendar year 2004.

SO ORDERED.

* ess P)UY Asso ustice 978

WE CONCUR:

JGANITO C. CASTANEDA, JR. OLGA PALANCA-ENRIQ

Associate Justice Associate Justice

CERTIFICATION

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

Rear te OAT came, Qy UANITO C. CASTANEDA, JR.

Acting Presiding Justice

Chairperson, 2" Division 973

CBK POWER COMPANY LIMITED

INPUT VAT ON PURCHASES OF CAPITAL

GOODS

FOR THE YEAR 2004

Exhibit Jan Feb Mar Ist

1 ‘Missing Official Receipts ; Annex G [IMPSA Construction Corp. : - IMPSA Construction Corp. | Trevi Foundations Phils. a

Twin V Tech Systems & Services _

{Supported by out of period official receipts. | (Annex G

|Building Construction Maintenance _

Building Construction Maintenance

People's Asia Pacific Construction Corp. Sta. Clara International Corp. ___, Twin V Tech Systems and Services

| _|Twin V Tech Systems and Services

| 3/Discrepancies due to rounding off differences : jin foreign currency rate used by Company against per examination. ‘Annex J ; 43,7 IMPSA Construction Corp. 43,723.75

|__|People's Asia Pacific Construction

'People's Asia Pacific Construction _ |IMPSA Construction Corp. | Whessoe Phils. Construction i___|Whessoe Phils. Construction

| BCMS International Specialty

Supreme Strategic Construction System

Sta. Clara International Corp.

|__| Arnel Mojica Const.

Supreme Strategic Construction System

__|Supreme Strategic Construction System

Z _|People's Asia Pacific Construction

| People's Asia Pacific Construction

___|Sta. Clara International Corp.

| Whessoe Phils. Construction Whessoe Phils. Construction Whessoe Phils. Construction

Supreme Strategic Construction System |

Supreme Strategic Construction System _

|Sta. Clara International Corp. iL | | ‘Sta. Clara International Corp.

N

pape ape epee i + 1 it i {

Qtr Apr May Jun

2nd Qtr

Annex 1

Page 1 of 4

Fate)

se) Jul Aug Sep 3rd Qtr - 306,259.49] :

306,259.49 a 23.75 12,706.96 512.14 225.09 | - 879.06 | 1,439.49 | ;

4,907.88 | ; : | 1,506.97 ;

: 487.05 | ;

ai 24.24 ; _ ; 3,237.18 | | 122.56) _ ; 77.09 _ | 21.96 ; | - 2.90 _| 0.52 :

268.25 - 14.47 | . 3.41 0.98

3K POWER COMPANY LIMITED

PUT VAT ON PURCHASES OF CAPITAL

DODS

OR THE YEAR 2004

Exhibit Jan _Feb Mar ist Building Const. Maint. Services - ; __|Supreme Strategic Construction System - a_i -_ Supreme Strategic Construction System fo oo —

Supreme Strategic Construction System _ a T

|Sta. Clara International Corp.

Sta. Clara International Corp.

Trevi Foundations Phils., Inc. _ Trevi Foundations Phils., Inc.

Sta. Clara International Corp.

People's Asia Pacific Construction

renee Const. Maint. Services

People's Asia Pacific Construction

People's Asia Pacific Construction _

{People's Asia Pacific Construction

Supreme Strategic Construction System _

| Supreme Strategic Construction System

Supreme Strategic Construction System

Trevi Foundations Phils., Inc.

| Whessoe Phils. Construction Whessoe Phils. Construction Whessoe Phils. Construction —t 43,723.75 - 43,725

Annex 7

Page 2 of 4

75 8,958.49 306,770.78 3,237.18 318,966.45 221.61 290.53 - 51214 385

CBK POWER COMPANY LIMITED

INPUT VAT ON PURCHASES OF CAPITAL

GOODS

FOR THE YEAR 2004

Oct

Nov

Missing Official Receipts

IMPSA Construction Corp.

682,177.45 Trevi Foundations Phils.

34,834.41

Twin V Tech Systems & Services

154,585.17

Nw

Supported by out of period official receipts.

Building Construction Maintenance

59,434.06 |

Building Construction Maintenance

383,955.14 People's Asia Pacific Construction Corp.

6,336.45 | Sta. Clara International Corp.

327,403.06

Twin V Tech Systems and Services

67,598.40

Twin V Tech Systems and Services

17,176.26 | Discrepancies due to rounding off differences in foreign currency rate used by Company against per examination.

IMPSA Construction Corp.

People's Asia Pacific Construction

IMPSA Construction Corp.

Whessoe Phils. Construction Whessoe Phils. Construction

BCMS International Specialty

Supreme Strategic Construction System

Sta. Clara International Corp.

Arnel Mojica Const.

Supreme Strategic Construction System

__|People's Asia Pacific Construction

People's Asia Pacific Construction

Sta. Clara International Corp.

Whessoe Phils. Construction _|Whessoe Phils. Construction Whessoe Phils. Construction

Supreme Strategic Construction System

8.64

Supreme Strategic Construction System _

32.20 /Sta. Clara International Corp.

31.62 | + i Sta. Clara International Corp.

22.52 | 4th Qtr

Total

1,177,856.52 | 871,597.03 ~ 4 ~ ~ i 861,903.37, 861,903.37 | 108,502.72) 165,445.57 | | :

4 Annex 1 oa.

Page 3 of 4 ©

sp)

CBK POWER COMPANY LIMITED

INPUT VAT ON PURCHASES OF CAPITAL

GOODS

FOR THE YEAR 2004

Oct Nov Dec

Building Const. Maint. Services | 150.94 / | __|Supreme Strategic Construction System 14.47 | _ Supreme Strategic Construction System ; 24.40 Supreme Strategic Construction System ; 65.31, ; Sta. Clara International Corp. __ 81.45 Sta. Clara International Corp. ; 1,247.87 - Trevi Foundations Phils., Inc. 139.75 Trevi Foundations Phils., Inc. ; 148.50 Sta. Clara International Corp. _ ; 329.52 |Sta. Clara International Corp. ; 418.76 Building Const. Maint. Services ; 598.42 People's Asia Pacific Construction ; 6.50 People's Asia Pacific Construction ; 23.49 People's Asia Pacific Construction 91,681.54 | __|People's Asia Pacific Construction ; 12,095.62 Supreme Strategic Construction System 110.55 Supreme Strategic Construction System ; ; 28.80 Supreme Strategic Construction System 384.32 ___|Trevi Foundations Phils., Inc. ; 191.64 Whessoe Phils. Construction 166.25 Whessoe Phils. Construction 89.55 Whessoe Phils. Construction 410.09 245.92 719,481.89 = 1,122,275.31 4th Qtr

Total

1,842,003. 12 2,205,205.46 id

Annex 1

Page 4 of 4

983

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Exhibit

Ist Qtr

Apr May

Jun

2nd Qtr

Annex 2

Page 1 of 18

584 —

Missing Official Receipts

381,795.19 4,070.15 Asian Insights Inc.

Digital Telecom

|Digital Telecom

Digital Telecom

Fersal Olace

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Exhibit

Jan

Feb

PLDT

|Asian Insights Inc.

Marsh Philippines, Inc.

PLDT

Digital Telecom

_ {Digital Telecom

Digital Telecom

Government Performance

Counterflow Movers

PLDT

Asian Insights Inc.

The Hongkong & Shan ghai Bank

Mondial Tours & Travel

Multi-Lift Sales Corp.

Mondial Tours & Travel

Royal Cargo Combined

Tax Studies & Research Center

City Service Corp.

EM Cruz Construction

La Corona de Pagsanjan

City Service Corp.

Explorer Freight Corp.

ied Original ORs not available, supported only by photocopies of the original ORs.

Annex E

Clean City Inc.

3,188.43 Clean City Inc.

3,188.43 3 pL

F & R Trading & Construction

Without OR, supported by machine validated invoices. Invoices do not have BIR authority to print.

Annex E

PLDT

139.61

PLDT

139.61|

Mar

Ist Qtr Apr May Jun

Annex 2

Page 2 of 18

¥) *, al

J

2nd Qtr 6,376.86 17,685.91 16,811.68

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Exhibit

Jan

Feb

PLDT

PLDT _

PLDT

IPLDT

Globe Telecom

Annex 2

Page 3 of 18

tS rave)

D

_ Mar 1st Qtr Apr May Jun 2nd Qtr 77\ 77 _ 77 48 _ - 81 _ | 2,813.00 - —_ 140.61 | | 189.30 aa 140.61 140.61 7 2,190.06). ;

2,813.00 230.66 141.48 ” - 141.48 _ 141.48 | 2,112.60 177.26 140.86 ;

140.86 / 140.86 / 2,099.97 | 2,813.00 ; ; 2,813.00 ; 7 2,289.44 ; 138.69 | 199.66 138.69 138.69

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Exhibit

Jan Feb

PLDT

Globe Telecom

_|Globe Telecom

PLDT

Globe Telecom

|Globe Telecom

PLDT

[PLDT

PLDT

Mar

1st Qtr

Annex 2

Page 4 of 18

98?

Apr May Jun 2nd Qtr

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Exhibit

Jan

Feb

Globe Telecom

PLDT

Globe Telecom

Without OR, supported only by bank deposit or bank transaction record. Bank deposit slips and bank transaction records do not comply with invoicing requirements.

Annex E

Supported by out of period OR.

Annex E

Airfreight 2100, Inc.

Annex 2

Page 5 of 18

co ie ©) oP) Mar Ist Qtr Apr May Jun 2nd Qtr — — | - - 4 1,917.50 : - . - _ 221.50 55.49 41.60 69.12 |

CB

K POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Exhibit

Jan

Feb

Airfreight 2100, Inc.

Copy Quest Corp.

Dassad Warehousing

Webpower Internet

SFM Sales Corp.

Heart & Hastings Phils., Inc.

High Grip Auto Center

Jefcor Laboratories Inc.

Punongbayan & Araullo

SFM Sales Corp.

Twin V Tech Systems & Serv.

USA & Co.

Welltech Service Corp.

Supported by non-VAT ORs.

Annex E

Jardine Lloyd Thompson

272,763

Jardine Lloyd Thompson

4,363,250

Jardine Lloyd Thompson

415,279 |Sycip, Salazar & Gatm 425 Sycip, Salazar & Gatm 113 Sycip, Salazar & Gatm 34

Jardine Lloyd Thompson

Nu Print Phils.

Sycip, Salazar & Gatm Sycip, Salazar & Gatm

Glezel Catering Services

Philam Care Health Systems

Supported by provisional receipts.

Annex E

Annex 2

Page 6 of 18

ap) fo) rae) _ Mar Ist Qtr Apr May Jun 2nd Qtr 55.29 5,059,404.65 _ 557.41 30 ll 61 _ 18 25 52 a 49.00 445.46 | 7,044.22 7 557.41 : | 29,023.77

OM

CBK POWER COMPANY LIMITED

EXCEPTIONS OF [INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Feb

Exhibit Jan

Jardine Lloyd Thompson

9|Supported by OR not in the name of the Company. Annex E PLDT 112.27

PLDT 107

PLDT

10|/Supported by OR where the Php amounts are exactly the same as the invoice amount in USD ; Exclusive of input VAT per audit based on Php amount.

Annex H

Business Profiles Inc.

70,396.90 Business Profiles Inc.

87,220.99 Business Profiles Inc.

87,601 Business Profiles Inc.

___70,706 Business Profiles Inc.

Business Profiles Inc.

_ {Business Profiles Inc.

Business Profiles Inc.

Discrepancies due to difference in foreign currency rate used by Company against per examination.

Annex H

Asian Insights Inc.

"54.09

EME Philippines

1,543.75

Kalayaan Power

950.21 Sycip, Salazar & Gatm 219.38 Sycip, Salazar & Gatm 1.87 Sycip, Salazar & Gatm 4.06 Sycip, Salazar & Gatm 0.20

Kalayaan Power

Business Profiles Inc.

Annex 2

Page 7 of 18

_ Mar Ist Qtr Apr May Jun 2nd Qtr _ 300.00 — 98.00 | _ 28,625.77 688.71 - 468.72 .

476,169.44 318,713.86 Al ; _ _ 30 : 7 88,370.74 7 7 71,873.10 ee :

72,000.50 - _ 88,527.38 ; | | 70,950.10 _ 87,235.88 2,773.56 : 2,667.69 2,667.69

Co

cy ‘ve

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Exhibit

Jan Feb

Business Profiles Inc.

Kalayaan Power

TUV Product Service

TUV Product Service.

Business Profiles Inc.

[Business Profiles Inc.

Kalayaan Power

Business Profiles Inc.

Kalayaan Power

EME Philippines

Business Profiles Inc.

12 Supported by official receipts wit VAT amount incorrectly computed.

_ Mar Ist Qtr Apr May Jun 2nd Qtr 18,830.65 ; 3,282.86 or _.

91 _ 1,090.91 7 1,090.91 8.99 _ 1,090.91 TH 1.14 / 1,090.91 |

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Exhibit

Jan

Feb

Smart Moves Consulting

Explorer Freight Corp.

JNJKons Enterprise

Smart Moves Consulting

Totals

180,630.14 §,253,891.

Annex 2

Page 9 of 18

Sp)

[op] __ Mar 1st Qtr Apr May Jun 2nd Qtr 93 531,120.40 5,965,642.47 170,611.01 197,149.92 7,587.99 375,348.92

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Jul Aug Sep

1| Missing Official Receipts

Asian Insights Inc.

Globe Telecom

Angelis Mgmt & Prof. Srves.

Angelis Mgmt & Prof. Srvcs.

Globe Telecom

Angelis Mgmt & Prof. Srvcs.

Solutions Cons. Group Sycip, Salazar & Gatm Sycip, Salazar & Gatm Contro! Risk

Globe Telecom

Jardine Lloyd Thompson

Media General

Sycip, Salazar & Gatm.

[Mondial Tours & Travel

PLDT

TUV Product Service Asia

|Sycip, Salazar & Gatm

Jardine Lloyd Thompson

Hearty & Hastings

PLDT

Jardine Lloyd Thompson

PLDT

Elite Machines

81.82

Metrobank Visa

363.64)

Digital Telecom

57.84]

Digital Telecom

152.49

Digital Telecom

190.00

_|Fersal Olace

437.73

Annex 2

Page 10 of 18

Total

139,532.79 189,213.77 714,611.90 cod tp) we)

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Annex 2

Page 11 of 18

Total

PLDT

120.80 Asian Insights Inc.

| 110,800.66

The Hongkong & Shanghai Bank

127.96

Mondial Tours & Travel

2,097.55 Multi-Lift Sales Corp.

363.64

Mondial Tours & Travel

69,196.55

Royal Cargo Combined

120.00

Tax Studies & Research Center

362.73 City Service Corp.

733.50

EM Cruz Construction

1,527.27

La Corona de Pagsanjan

396.69 City Service Corp.

501.86 Explorer Freight Corp.

90.00 id Original ORs not available, supported only by photocopies of the original ORs.

472.73 6,849.59 Clean City Inc.

Clean City Inc.

F & R Trading & Construction

472.73 we Without OR, supported by machine validated invoices. Invoices do not have BIR authority to print.

15,172.98 9,301.64 58,972.21

[PLDT

PLDT

~—

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Jul Aug Sep

PLDT

|PLDT

PLDT

“1PLDT

PLDT

‘PLDT

PLDT

Globe Telecom

166.17

Globe Telecom

3.05

_ {Globe Telecom

214.39

Annex 2

Page 12 of 18 a See SSS Total

999

Annex 2

Page 13 of 18

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

996 Jul Aug Sep 3rd Qtr Oct Nov Dec 4th Qtr Total PLDT | 140.20 PLDT 140.20 PLDT 193.89 | |PLDT . 140.20 PLDT 2,813.00 PLDT a 3,101.71 Globe Telecom ; - 45.46 Globe Telecom ; 109.09 Globe Telecom 109.30 Globe Telecom 126.05].

{Globe Telecom . ; 72.60 Globe Telecom ; ; ' 109.09 Globe Telecom ; 238.13 PLDT 2,813.00 PLDT ; 2,870.96 |PLDT 140.17 PLDT 140.17 PLDT j 140.17 PLDT 174.29 ;

Globe Telecom ; ; 161.19 Globe Telecom 72.60 Globe Telecom 166.03 Globe Telecom __ 136.68 Globe Telecom ; 45.46 Globe Telecom 72.60 Globe Telecom 111.82 Globe Telecom 181.68 Globe Telecom 223.63 Globe Telecom 72.60 Globe Telecom 177.19 Globe Telecom 134.22 Globe Telecom 45.45 PLDT ; 140.17 PLDT 219.79 | [PLDT 140.17 . ; | PLDT 140.17 PLDT 3,203.75 - +

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Jul

Aug Sep

Globe Telecom

{Globe Telecom _

_|PLDT

PLDT

Globe Telecom

- Without OR, supported only by bank deposit or bank transaction record. Bank deposit slips and bank transaction records do not comply with invoicing requirements.

Globe Telecom

Skycable

136.55 an Supported by OR which do not bear BIR {authority to print.

Government Performance

Supported by out of period OR.

aia) Airfreight 2100, Inc.

Airfreight 2100, Inc.

Annex 2

Page 14 of 18

997 72.60 2,794.66 140.17 140.17 140.17 | ‘187.94 188.49 209.18 72.60 247.76 136.55 2,054.05 2,545.46 2,545.46 2,545.46 15,659.85 15,881.35 a

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Jul

Aug Sep

Airfreight 2100, Inc.

Copy Quest Corp.

Dassad Warehousing

Webpower Internet

Webpower Internet _

SFM Sales Corp.

Heart & Hastings Phils., Inc.

High Grip Auto Center

Jefcor Laboratories Inc.

Punongbayan & Araullo _

Punongbayan & Araullo

SFM Sales Corp.

SEM Sales Corp.

Twin V Tech Systems & Serv.

USA & Co.

Welltech Service Corp.

7|Supported by non-VAT ORs.

Jardine Lloyd Thompson

Sycip, Salazar & Gatm Sycip, Salazar & Gatm Sycip, Salazar & Gatm

Jardine Lloyd Thompson _

Nu Print Phils.

Sycip, Salazar & Gatm Sycip, Salazar & Gatm

Glezel Catering Services

Philam Care Health Systems

g|Supported by provisional receipts.

Annex 2

Page 15 of 18

2,700.00 45.46 90.91 964.47 | 357.90 __ 260.00 40.00 | 454.55 454.55 7.27 22.73 45.46 5.00 723.21 | 1,000.00 510.09 | 56.36 185.46 4,590.91 2,000.00 | 400.00 745.46 | 6,790.48 5,066,752.54 5,886.36 904.12 123,734.64 152,758.41

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Jul

Aug Sep

Jardine Lloyd Thompson

Supported by OR not in the name of the Company.

PLDT

109.70 10 Supported by OR where the Php amounts are exactly the same as the invoice amount in USD Exclusive of input VAT per audit based on Php amount.

Business Profiles Inc.

il Discrepancies due to difference in foreign currency rate used by Company against per examination.

Asian Insights Inc.

EME Philippines

Kalayaan Power

Sycip, Salazar & Gatm Sycip, Salazar & Gatm Sycip, Salazar & Gatm Sycip, Salazar & Gatm

Kalayaan Power

Business Profiles Inc.

341.90 Business Profiles Inc.

420.38

Annex 2

Page 16 of 18

_ __3rd Qtr Oct Nov Dec 4th Qtr Total 123,734.64 109.70 _ - 798.41 7 -_ —_ - 794,883.30 5,548.10 - 1,177.34 12,166.69 993

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Jul

Aug Sep

Business Profiles Inc.

44.71

Kalayaan Power

2,318.26

TUV Product Service

15.44

TUV Product Service

27.02

TUV Product Service

27.02 Business Profiles Inc.

441.15 Business Profiles Inc.

358.80 Business Profiles Inc.

23.46

Kalayaan Power

1,390.84 {Business Profiles Inc.

62.

Business Profiles Inc.

76.

| {Business Profiles Inc. _ Business Profiles Inc.

Kalayaan Power

EME Philippines

Business Profiles Inc.

— Business Profiles Inc.

12 Supported by official receipts wit VAT amount incorrectly computed.

Smart Moves Consulting

Globe Telecom

'|Globe Telecom

Globe Telecom _

Globe Telecom

Punongbayan & Araullo

Certeza Surveying & Aerophoto

Smart Moves Consulting

Globe Telecom

Smart Moves Consulting

City Service Corp.

|Smart Moves Consulting

Smart Moves Consulting

1,090.91

Jersse Equipt & Supplies Sales

53.14

Smart Moves Consulting

1,090.91

|Solutions Consulting

39.25

Page 17 of 18

___3rd Qtr Oct Nov Dec 4th Qtr Total 10 72\, 101.40 124.67 - a 67.76 / 712.50 :

94.31 76.70 19,024.01 1,818.17 42,955.69

CBK POWER COMPANY LIMITED

EXCEPTIONS OF INPUT VAT ON

PURCHASES OF SERVICES

FOR THE YEAR 2004

Jul Aug Sep

Smart Moves Consulting ; : 1,090. Explorer Freight Corp. 14,825. JNJKons Enterprise - 833.

Smart Moves Consulting

Totals a : 11,943.30 11,383.49 156,197.3

Annex 2

Page 18 of 18

os oe _ __ 3rd Qtr Oct Nov Dec 4th Qtr Total » 91 - = g1 ;

08 ; 454.54 - ; 454,54 [ 909.09 ee en DO a SO SS 4 179,524.13 12,335.98 312,491.88 25,886.22 350,714.08 6,871,229.60 n\

CBK POWER COMPANY LIMITED

INPUT VAT ON PURCHASES OF GOODS

OTHER THAN CAPITAL GOODS

FOR THE YEAR 2004

Exhibit

Jan

Feb

bows, Missing Sales Invoices.

Annex F |

Office Basics Corp.

66.81

Glucs Business Enterprises

327.27 Office Basics Corp.

520.30 Office Basics Corp.

65.87

Roadstar Enterprises

NCH Philippines

IMPSA Construction Corp.

_IMPSA Construction Corp.

Office Basics Corp.

Mindtech Equipment

|Office Basics Corp.

Office Basics Corp.

nr Supported by Sales Invoices which do not bear BIR authority to print.

Annex F

Pilipinas Shell Petroleum

Access Frontier Tech

Go

Supported by statement of accounts or other documents which do not comply with invoicing requirements.

Annex F

|R.O. Shell Gasoline Station 3,463.99 /R.O. Shell Gasoline Station 3,814.45 R.O. Shell Gasoline Station 4,69 SFM Sales Corp.

SFM Sales Corp.

2,01 R.O. Shell Gasoline Station SFM Sales Corp.

SFM Sales Corp.

R.O. Shell Gasoline Station R.O. Shell Gasoline Station SFM Sales Corp.

iSFM Sales Corp.

Our Lady of Guadalupe Shell

,R.O. Shell Gasoline Station

NI

aes)

Annex 3 :2

Page 1o0f6 “7 ir sist Qtr Apr May Jun 2nd Qir Jul Aug ; 980.25 _ 1,757.46 | ~ a -| 1,145.46 ;

612.00 { i 14,123.84 18,335.36 0.90) 8.64 . ; ;

5.86 ;

7,007.80 139.55 590.91 - | ; 5,286.88 :

; ; 4,627.40 | a 298.18 ( ii | 384.64 | _ ; Ce 4,490.09 i |__ 5,228.60 |

CBK POWER COMPANY LIMITED

INPUT VAT ON PURCHASES OF GOODS

OTHER THAN CAPITAL GOODS

FOR THE YEAR 2004

Exhibit

Jan

Feb

M:

_|SFM Sales Corp.

I

SFM Sales Corp.

Our Lady of Guadalupe Shell

R.O. Shell Gasoline Station SFM Sales Corp.

Ascend Industrial Supplies Inc.

i 6,060.00 |Gaisca Industrial Corp.

i 13,623.64 J unna Industrial Corp.

6,055.55

Le

i ‘Office Basics Corp.

5,091.71)

G3

Annex3 .

Page 2 of 6

rr Ist Qtr Apr May Jun 2nd Qtr Jul Aug _ | | —_ 171.82 ai | 727.82 116.82 7 3,834.55 ; | 4,872.41 | 462.27 7 114.09 i I ] ! . | —_ 4 | ee

I

l i | .

i | - - : - 7 | i | 45,685.17 | [ “| 22,330.91 ; ~ ~ 1 7 : -—-- —4 4 | |

CBK POWER COMPANY LIMITED

INPUT VAT ON PURCHASES OF GOODS

OTHER THAN CAPITAL GOODS

FOR THE YEAR 2004

Exhibit

Jan

Annex F

VMA Home Appliances Co.

259.09 ~l Original sales invoice not available, supported only by photocopies of the original] sales invoice.

Annex F

Twin V Tech Systems

Discrepancies due to rounding off differences in foreign currency rate used by Company against per examination.

Annex I

Integrated Computer System

29.00 Siemens Inc.

Anaki Systems Sales

Recar Industrial Sales

Anaki Systems Sales

Recar Industrial Sales

wo Supported by sales invoices with VAT amount incorrectly computed.

Annex I

Multiple J Enterprises

Totals

38,205.15 16,026.80 6,845 “4 “> Annex 3 ..>

Page 3 of 6 “4

ir Ist Qtr Apr May Jun 2nd Qtr Jul Aug : 22,330.91 . | . ; _ 1,645.46 259.09 _ 29.00 J - 0.19 40 61,077.35 8,904.81 22,921.82 10,597.10 42,423.73 10,735.34 10,928.78

CBK POWER COMPANY LIMITED

INPUT VAT ON PURCHASES OF GOODS

OTHER THAN CAPITAL GOODS

FOR THE YEAR 2004

Missing Sales Invoices.

aed, Sep 3rd Qtr Oct L Office Basics Corp.

Glucs Business Enterprises

Office Basics Corp.

Roadstar Enterprises

_{NCH Philippines

IMPSA Construction Corp.

Office Basics Corp.

Mindtech Equipment.

Office Basics Corp.

nN BIR authority to print.

Supported by Sales Invoices which do not bear

| _|Pilipinas Shell Petroleum

7,136.38

Access Frontier Tech

3 Supported by statement of accounts or other requirements.

documents which do not comply with invoicing 37,039.21 R.O. Shell Gasoline Station R.O. Shell Gasoline Station R.O. Shell Gasoline Station SFM Sales Corp.

|SEM Sales Corp.

R.O. Shell Gasoline Station SFM Sales Corp.

SFM Sales Corp.

R.O. Shell Gasoline Station R.O. Shell Gasoline Station SFM Sales Corp.

SFM Sales Corp.

|Our Lady of Guadalupe Shell

R.O. Shell Gasoline Station

Nov

4th Qtr

Total

141,233.61 143,971.32 | 128,004.55 | 7,680.27 962.80 163.31 462.37 2,376.55 | 958.08 163.31 | 462.37 8,648.21 8,648.21 1,511.83, 35,496.28 104,994.69

Annex 3

Page 4 of 6

Ivo

CBK POWER COMPANY LIMITED

INPUT VAT ON PURCHASES OF GOODS

OTHER THAN CAPITAL GOODS

— _ | 2,335.49 4,927.58 580.46 1,225.82 | _ 4,611.72 130.46 211.36 ;

1,523.06 6,129.81

I

| _ 327,297.00! 327,297.00 | 92,447.00 66,946.00 | a -| 69,661.54 _ _ | _ |

CBK POWER COMPANY LIMITED

INPUT VAT ON PURCHASES OF GOODS

OTHER THAN CAPITAL GOODS

FOR THE YEAR 2004

|High Grip Auto Center

‘High Grip Auto Center

High Grip Auto Center

; [High Grip Auto Center

High Grip Auto Center

Icon Ind. Control Systems Gaisca Industrial Corp.

Fast Track Sales

a Supported by sales invoices not in the name of the Company.

VMA Home Appliances Co.

Original sales invoice not available, supported only by photocopies of the original sales invoice.

Twin V Tech Systems

Discrepancies due to rounding off differences in foreign currency rate used by Company against per examination.

oO 0.25

Integrated Computer System

Siemens Inc.

Anaki Systems Sales

0.06,

Recar Industrial Sales

Anaki Systems Sales

Recar Industrial Sales

Supported by sales invoices with VAT amount incorrectly computed.

\=]

|Multiple J Enterprises

- Totals

17,020.80 38,684.92 188,861.01

Nov

Dec

4th Qtr Total _ - 259.09 11,492.44 11,492.44 - 11,492.44 _ 0.56 29.81 0.25 0.20 818.20 818.20 | 818.20 101,802.36 234,322.93 524,986.30 667,172.30

Annex 3

1UG?

Annex 4

CBK POWER COMPANY LIMITED

SCHEDULE OF EFFECTIVELY ZERO-RATED SALES

FOR THE 2nd, 3rd and 4th QUARTER OF YEAR 2004 OR Date OR No. Exhibit No. Amount 04/26/04 193 SSSS-75 111,872,376.00 | 04/26/04 194 SSSS-77 111,872,376.00 04/26/04 195 SSSS-79 116,067,590.10 04/26/04 196 SSSS-81 7,524,749.10 i 04/26/04 197 | ___SSSS-83 7,524,749.10 04/26/04 198 SSSS-85/410 5,881,956.53 04/26/04 199 SSSS-86 5,847,995.27 | 04/26/04 200 SSSS-88 104,547.40 04/27/04 185 SSSS-59 9,619.53 04/27/04 186 SSSS-61 692,360.75 04/27/04 187 SSSS-63 538,080.72 04/27/04 188 SSSS-65 692,360.75 04/27/04 189 SSSS-67 541,205.53 |__ 04/27/04 190 SSSS-69 10,293,505.01 ; 04/27/04 19] SSSS-71 10,679,511.45 04/27/04 192 SSSS-73 10,293,505.01 05/27/04 203 i SSSS-90 702,522.87 | 05/27/04 204 SSSS-92 10,448,587.79 05/27/04 205 SSSS-94 10,444,587.79 05/27/04 206 SSSS-96 10,836,259.84 05/27/04 207 SSSS-98 _ 702,522.87 | _ 05/27/04 _ 208 SSSS-100 $49,149.07 05/27/04 209 SSSS-102 545,978.39 | 05/27/04 © 210 SSSS-104 9,760.72 _06/03/04 211 SSSS-106 111,274,128.00 06/03/04 212 SSSS-108 111,274,128.00 06/03/04 213 SSSS-110 115,446,907.80 | 06/03/04 214 SSSS-112 7,484 ,509.80 06/03/04 215 SSSS-114 7,484,509.80 06/03/04 216 SSSS-116 5,850,502.22 06/03/04 217 _ SSSS-118 5,816,722.57 06/03/04 218 SSSS-120 103,988.32 06/25/04 __ 229 | SSSS-139 | 111,832,492.80 06/25/04 | 230 SSSS-141 111,832,492.80 06/25/04 231 SSSS-143 116,026,211.28 06/25/04 232 SSSS-145 7,522,066.48 06/25/04 233 SSSS-147 | 7,522,066.48 06/25/04 234 SSSS-149 6,656,696.00 06/25/04 235 SSSS-151 6,656,696.00 | __ 06/25/04 236 | Ss SSSS-153 99,530.78 | 06/25/04 | 237 SSSS-412 _ 3,165,285.87 06/28/04 219 __SSSS-122 10,783,558.17 L 06/28/04 220 __SSSS-124 - 10,393,791.01 06/28/04 | 22.1 SSSS-126 10,393,791.01 | 06/28/04 222 SSSS-128 293,483.51 06/28/04 223 SSSS-129 699,106.18 06/28/04 224 SSSS-131 618,678.04 _ 06/28/04 225 SSSS-133 699,106.18 06/28/04 226 SSSS-135 618,678.04 06/28/04 227 SSSS-137 9,250.47 06/28/04 228 SSSS-411 359,224.85 |

10G8

Annex 4

Page 2 of 4

CBK POWER COMPANY LIMITED

SCHEDULE OF EFFECTIVELY ZERO-RATED SALES

FOR THE 2nd, 3rd and 4th QUARTER OF YEAR 2004 OR Date OR No. Exhibit No. Amount 07/29/04 246 SSSS-413 17,042.40 08/02/04 238 SSSS-155 | 671,412.69 08/02/04 239 SSSS-157 671,412.69 | 08/02/04 240 SSSS-159 594,170.52 08/02/04 241 SSSS-161 8,884.04 08/02/04 242 SSSS-163 | 594,170.52 08/02/04 243 | __SSSS-165 10,356,392.22 08/02/04 244 SSSS-167 9,982,064.79 08/02/04 245 SSSS-169 9,982,064.79 08/10/04 1267 SSSS-200 111,333,952.80 | __08/10/04 1268 | _ SSSS-202 111,333,952.80 08/10/04 1269 |___ SSSS-204 115,508,976.03 | __08/10/04 1270 SSSS-206 7,488,533.73 08/10/04 1271 SSSS-208 7,488,533.73 08/10/04 1272 SSSS-210 6,627,021.00 08/10/04 1273 SSSS-212 6,627,02 1.00 08/10/04 1274 | __ SSSS-214 530,161.68 08/27/04 1251 SSSS-414 327,081.70 08/27/04 1252 SSSS-171 | 9,449,092.86 08/27/04 1253 SSSS-173 | 9,803,433.84 08/27/04 1254 SSSS-175 | 9,803,433.84 08/27/04 1255 SSSS-177 9,449,092.86 08/27/04 1256 SSSS-179 635,563.98 08/27/04 1257 SSSS-181 635,563.98 08/27/04 | 1258 SSSS-183 403,476.89 08/27/04 _ 1259 SSSS-185 6,049.93 | 08/27/04 1260 SSSS-187 396,693.17 08/30/04 1275 SSSS-216 7,552,916.6 1 08/30/04 _ 1276 SSSS-218 7,552,916.61 08/30/04 1277 SSSS-220 | 6,683,997.00 | 08/30/04 1278 SSSS-222 | 6,683,997.00 08/30/04 1279 SSSS-224 534,719.76 08/30/04 1280 SSSS-226 112,291,149.60 __ 08/31/04 1281 SSSS-228 112,191,441.60 08/31/04 1282 SSSS-230 | 116,398,620.66 08/31/04 1283 SSSS-232 116,398,620.66 09/02/04 1261 SSSS-189 10,783,558.17 09/02/04 | 1262 SSSS-191 10,356,392.22 09/02/04 1263 SSSS-193 10,836,259.84 09/02/04 1264 | _SSSS-195 10,673,511.45 09/02/04 1265 SSSS-197 1,052,082.28 09/02/04 1266 SSSS-199 10,589,009.17 09/16/04 1284 SSSS-234/419 116,336,552.43 09/16/04 1285 ——|__—SSSS-236 116 ,336,552.43 09/16/04 1286 SSSS-238 116,336,552.43 09/16/04 1287 «| ~——«SSSS-240 116,336,552.43 |___09/20/04 1288 ___SSSS-242 ____:116,564,135.94 | 09/20/04 1289) SSSS-244 116,564,135.94 | 09/27/04 1290 SSSS-246 | 562,855.95 09/27/04 1291 SSSS-248 636,027.22 09/27/04 1292 SSSS-250 _ 636,027.22 | 1009

CBK POWER COMPANY LIMITED

SCHEDULE OF EFFECTIVELY ZERO-RATED SALES

FOR THE 2nd, 3rd and 4th QUARTER OF YEAR 2004 OR Date OR No. Exhibit No. Amount 09/27/04 1293 SSSS-252 9,592.94 09/27/04 1294 SSSS-254 562,855.95 09/27/04 1295 SSSS-256 9,810,579.19 09/27/04 1296 SSSS-258 9,455,979.95 09/27/04 1297 SSSS-260 9,455,979.95 09/27/04 1298 SSSS-262 9,810,579.19 | 10/08/04 1305 SSSS-264 112,650,098.40 | 10/08/04 1306 SSSS-265 112,650,098.40 10/08/04 1307 SSSS-267 116,874,477.09 10/08/04 1308 SSSS-269 116,874,477 .09 10/08/04 1309 SSSS-271 7,577,060.19 10/08/04 1310 SSSS-273 7,577,060.19 10/08/04 1311 SSSS-275 6,705,363.00 10/08/04 1312 SSSS-277 6,705,363.00 10/08/04 1313 SSSS-279 536,429.04 [ 10/29/04 1314 SSSS-281 643,447.74 10/29/04 1315 SSSS-283 8,514.01 10/29/04 1316 SSSS-285 569,422.78 10/29/04 1317 SSSS-287 569,422.78 10/29/04 1318 SSSS-289 643,447.74 10/29/04 1319 SSSS-291 9,566,302.69 10/29/04 1320 SSSS-293 9,566,302.69 10/29/04 1321 SSSS-295 9,925,039.04 10/29/04 1322 SSSS-297 9,925,039.40 11/02/04 1327 SSSS-299 112,331,032.80 11/02/04 1328 SSSS-301 112,331,032.80 11/02/04 1329 SSSS-303 116,543,446.53 11/02/04 1330 SSSS-305 116,543,446.53 11/02/04 1331 SSSS-307 7,555,599 ,23 11/02/04 1332 SSSS-309 21,028,315.71 11/05/04 1323 SSSS-415 68,304.50 11/05/04 1324 SSSS-416 6,967.49 11/12/04 _ 1325 SSSS-417 14,589.31 | | 11/25/04 | 1326 _ SSSS-418 | 11,000.00 | 11/26/04 1333 SSSS-314 8,520.70 11/26/04 1334 SSSS-3 16 643,953.32 11/26/04 1335 SSSS-318 569,870.19 11/26/04 1336 SSSS-320 569,870.19 | 11/26/04 1337 SSSS-322 643,953.32 11/26/04 1338 SSSS-324 9,932,837.42 11/26/04 1339 SSSS-326 9,932,837.42 | 11/26/04 1340 SSSS-328 9,573,819.20 11/26/04 1341 SSSS-330 9,573,819.20 | 11/30/04 | 1342 | SSSS-332 _ _7,538,162.20 - 11/30/04 1343 SSSS-334 7,538, 162.20 11/30/04 1344 SSSS-336 6,670,940.00 | 11/30/04 1345 SSSS-338 6,670,940.00 | 11/30/04 1346 SSSS-340 99,743.76 | 12/01/04 1347 | SSSS-342 112,131,616.80 12/01/04 1348 SSSS-344 112,131,616.80 12/01/04 1349 SSSS-346 116,336,552.43

Annex 4

Page 3 of 4

CBK POWER COMPANY LIMITED

SCHEDULE OF EFFECTIVELY ZERO-RATED SALES

FOR THE 2nd, 3rd and 4th QUARTER OF YEAR 2004 OR Date OR No. Exhibit No. Amount 12/01/04 1350 SSSS-348 116,336,552.43 | 12/28/04 1351 SSSS-350/455 8,511.84 12/28/04 1352 SSSS-352/454 $69,277.77 12/28/04 1353 | SSSS-354/453 569,277.77 | 12/28/04 1354 | SSSS-356/452 643,283.88 12/28/04 1355 SSS8-358/451 643,283.88 12/28/04 1356 SSSS-360/448 | 9,563,866.46 12/28/04 1357 SSSS-362/449 9,922,511.46 12/28/04 1358 SSSS-364/450 | 9,922,511.46 12/28/04 1359 SSSS-366/447 9,563 ,866.46 12/29/04 1360 SSSS-368 7,559,623.16 12/29/04 1361 SSSS-370 7,559,623.16 12/29/04 1362 SSSS-372 6,689,932.00 12/29/04 1363 SSSS-374 6,689,932.00 12/29/04 1364 SSSS-376 100,027.73 Total 4,539,223,259.11

Annex 4

Page 4 of 4

iol