Deutsche Knowledge Services Pte. LTD vs. Commissioner of Internal Revenue [Consol with 8736, 8754 & 8767]

DECISION

CASTANEDA, JR., J.:

THE CASE

Before this Court are four ( 4) consolidated Petitions for Review filed by petitioner Deutsche Knowledge Services Pte. Ltd., praying for the refund or issuance of tax credit certificate (TCC) in the aggregate amount of P147,159,034.53, allegedly representing its unutilized input value-added tax (VAT) arising from purchases of goods (other than capital goods) and services, purchases of capital goods, and purchases of services rendered by non-residents, which are attributable to zero-rates sales for the four (4) quarters of calendar year (CY) 20121, broken down, as follows: ~

CTACase No.

Calendar Year 2012

8720

151 Quarter

8736 2nd Quarter 8754 3r<1 Quarter 8767 4th Quarter

Total

THE FACTS

Input VAT Claim

f>35 343 482.102 34,618,094.9!3 40 305 286.804 36,892,170.725 P147,159,034.53 Petitioner is a corporation organized and existing under the laws of Singapore, with license to transact business in the Philippines, and with office address at Net Quad Center, 31st Street corner 4th Avenue, E-Square Zone Crescent Park West, Bonifacio Global City, Taguig City.6 It is registered with the Bureau of Internal Revenue (BIR) as a VAT taxpayer, with Taxpayer Identification No. (TIN No.) 238-763-115-000, and with BIR Certificate of Registration No. OCN 9RC0000270209. 7 Petitioner is licensed and authorized by the Securities and Exchange Commission (SEC) to operate as regional operating headquarters in the Philippines which provides qualifying services of general administration and planning;

business planning and coordination;

sourcing/procurement of raw materials and components; corporate-finance advisory services; marketing control and sales promotion; training and personnel management; logistic services;

research and development services and product development; technical support and maintenance; data processing and communication and business development.8 On the other hand, respondent is the duly appointed Commissioner of Internal Revenue (CIR) who holds office at the BIR National Office Building, Agham Road, Diliman, Quezon City. 9~

Petitioner filed with the BIR its monthly and quarterly VAT Returns, through the Electronic Filing and Payment System (eFPS), on the following dates:

PERIOD COVERED

DATE FILED

January 2012

February 16 201210

February 2012

March 19, 201211

First Quarter of 2012

April 19 201212

April 2012

May 21 201213

May 2012

June 19, 201214

Second Quarter of 2012

July 20 201215 ( oriqinal) May 21, 201316 (amended)

July 2012

Auqust 20, 201217

August 2012

September 17, 20121•

Third Quarter of 2012

October 18 201219( original) October 23, 201220 (amended)

October 2012

November 15 201221

November 2012

December 11, 201222

Fourth Quarter of 2012

January 22, 201323 For the CY 2012, petitioner claims to have rendered services in the Philippines to persons engaged in businesses conducted outside the Philippines, the payments for which were made in Euro and other acceptable foreign currency and accounted for in accordance with the rules and regulations of Bangko Sentral ng Pilipinas (BSP).24 As such, it allegedly accumulated excess input tax in the total amount of P148,152,889.37. And out of this total amount, P147,159,034.53 is purportedly attributable to its zero-rated sales, which remained unutilized and/or unapplied against its output VAT liability. 25 ~

Thus, petitioner separately filed with respondent its administrative claims for refund/TCC of its unutilized input VAT attributable to its zero-rated sales for CY 2012 on the following dates:

TAXABLE

DATE

AMOUNT

QUARTER

OF ADMINISTRATIVE CLAIMED FOR

2012

CLAIM

WAS REFUND

FILED

pt Quarter

Mav 23 201326

P35,343,482.10 2nd Quarter June 26, 201327 34,618,094.91

(Amended)

3rd Quarter August 8, 201328 40,305,286.80

(Amended)

4th Quarter October 8, 201329 36.892.170.72

TOTAL

I P147,159,034.53 ' There being no action taken by respondent on petitioner's administrative claim for refund/TCC, petitioner filed a judicial appeal, via 4 separate Petitions for Review, with the Court of Tax Appeals (CTA) on October 18, 201330, docketed as CTA Case No. 8720; on November 19, 20133\ docketed as CTA Case No. 8736; on January 6, 201432, docketed as CTA Case No. 8754; and on February 19, 201433, docketed as CTA Case No. 8767.

Respondent filed his Answer in CTA Case No. 8720 on December 23, 201334, in CTA Case No. 8736 on February 3, 201435, in CTA Case No. 8754 on February 20, 201436, and in CTA Case No. 8767 on March 6, 201437, and raised the following special and affirmative defenses, to wit:

For CTA Case No. 8720 jk-

"4.

She

reiterates and re-pleads the preceding paragraphs of this Answer as part of her Special and Affirmative Defenses.

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 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 Section 113 and 114 of the Tax Code, as amended;

c. Proof of compliance with the prescribed checklist of requirements to be submitted involving claims for VAT refund pursuant to Revenue Memorandum Order No. S3-98, otherwise there would be no sufficient compliance with the filing of an administrative claim for refund which is a condition sine qua non prior to the filing of a judicial claim in accordance with Section 112 of the Tax Code, as amended This 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 the 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 petitioner's petition for review; d

That

the input taxes of Php35,343,482.10 allegedly paid by petitioner on its domestic purchases of goods and services, purchases of capital goods, and purchases of services rendered by non-residents for the pt quarter of 2012 were attributable to its zero-rated sales and such have 9--- not been applied against any output tax and were not carried over to 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} were filed within the periods provided in Sections 112 (A) and (D) 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 pursuant to Section 4.104-5 (a) and (b) of Revenue Regulations No. 7-95 (Re: Substantiation of Claims for Input Tax Credits);

g. The requirements as enumerated under Section 4.104-5 of Revenue Regulations No. 7-95. (Re: Substantiation of Claims for Input Tax Credits).

6. Petitioner must prove that the aggregate amount of P35,343,482.10 allegedly representing excess and unutilized input VAT for the 1st quarter of taxable year 2012 is properly documented.

7. As petitioner states in its petition before this Honorable Court, the subject of its claim for refund are allegedly excess and unutilized input VAT paid on its domestic purchases of goods and services_ purchases of capital goods and purchases of services rendered by non- residents attributable to zero-rated sales covering the 1st quarter of taxable year 2012.

8. The instant petition involving petitioner's claim for refund in the amount of Thirty Five Million Three hundred

Forty Three Thousand Four Hundred Eighty Two and

10/100 Pesos (P35,343,482.10) allegedly paid and incurred for the 1st quarter of taxable year 2012 is not warranted for lack of jurisdiction as petitioner failed to exhaust all 'It-- administrative remedies before elevating this case to the Honorable Court.

9. Unmistakably, Section 1 (j) of Rule 16 of the 1999 Rules of Civil Procedure provides that:

'MOTION TO DISMISS'

Section 1. Grounds. - Within the time for but before filing the answer to the complaint or pleading asserting a claim, a motion to dismiss may be made on any of the following grounds:

XXX

(j) That a condition precedent for filing the claim has not been complied with. '

10. Corollary thereto, Section 112 (D) [now Section 112 (c) of the Tax Code of 1997] provides as follows, to wit:

'SEC. 112.

Refunds or Tax Credits of Input

Tax.-

X

X

X

(0)

Period Within Which Refund or Tax

Credit of Input Taxes Shall be Made. - In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsections (A) and (B) hereof. In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one hundred twenty day-period, appeal the decision or the Pz..

unacted claim with the Court of Tax Appeals. (Emphasis supplied) Pursuant to the aforequoted provision of law, the Commissioner of Internal Revenue [CIR', for brevif:)l) has 120 days from the submission of the complete supporting documents to decide the claim for refund. It logically follows that a taxpayer must first submit the complete supporting documents before the 120-day period should commence. The CIR cannot decide the claim for refund without the complete supporting documents.

11. The implementing rule for these complete documents required by law is RMO No. 53-98. Annex B-1 of said RMO lists all the required documents as follows:

VALUE-ADDED TAX

{For audit involving Claim for Refund I TCC) A.} Requirements from Taxpayer

L

Requirements mention in Annex 8

IL

Additional General Requirements

1) 3 copies of 'Application for VAT Credit I Refund' 2) Summary List of Local Purchases specifying the following:

XXX

3) Photocopies of VAT purchase invoices for purchase of goods and official receipts for purchase of services. (The invoices/official receipts must be arranged according to the summary list) 4) Summary of importations made during the period with the following details:

XXX

XXX

XXX

5) Photocopies of invoices, import entry documents, official receipts or confirmation receipts evidencing i<- payment of VAT. (Segregate documents paid by cash from those paid by tax debit memo) 6) VAT Returns filed for the quarter showing that the amount applied for refund/TCC has been reflected as a deduction from the total available input tax, as well as VAT Return for the succeeding quarter 7) Certification of taxpayer showing the amount of Zero- rated Sales_ Taxable Sales and Exempt Sales 8) A statement showing the amount and description of the sale of goods and services, name of persons or entities (except in case of exports) to whom the goods or services were sold and date of the transaction, where the applicant's zero-rated transactions are regulated by certain government agency.

9) Articles of Incorporation -

for first time filers

10) Sales Contract/Agreement

11}801 Certificate of Registration

12)8IR Certificate of Registration

13)Certification from 801, DOF, 80C, EPZA, etc., that subject taxpayer has not filed similar claim for refund covering the same period.

14)Sworn statement that ending inventory as of the close of the period covered by the Claim has been used directly or indirectly in the products subsequently exported as supported by export documents, if the applicant is 100% exporter.

15) Documents of liquidation evidencing the actual utilization of the raw materials in the manufacture of goods at least 70% of which has been actually exported, if the applicant is an indirect exporter. 16} Copy of the ITR and Certified Financial Statements, if applicable. ~

Page!Oof88 17) Beginning and ending inventory of raw materials, work-in-process, finished goods, supplies and materials.

Additional Specific Requirements

1) For Zero-Rated Sales of Services (contractors, mining, etc.)

a.

Authenticated copyjies of the contractjs showing the person/s for whom the services were rendered, amount of consideration, description of the services and documents evidencing actual payments b.

Photocopies of official receipts and billings together with a summary of the date of billing, name of principal- official receipt number, date of receipt, amount in foreign currency and the corresponding value thereof, date of remittance, name of bank, bank credit memo number and amount remitted in pesos. c.

Bank credit memoranda and certificate from the BSP with information similar to 1-c (export sales) As stated above, the first documentary requirement is that provided in Annex B of the same RMO. Annex B provides for more requirements as follows:

VALUE-ADDED TAX

A) Requirements from Taxpayers 1) Proof of claimed tax credits 2) Proof of Tax Compliance Certificates applied 3) Xerox copy of used Tax Credit Certificate (TCC) with annotation of issued TDM at the back, if applicable 4) Proof of payment of deficiency tax, if any a) current year/period b) previous year/period fJZ-'

5) Certification of the appropriate government agency as to taxpayer's entitlement to tax incentives, if applicable 6) Xerox copies of the Official Receipts evidencing VAT payment on imported purchases, if applicable 7) Proof of exemption under special law, if applicable 8) Certification of the appropriate regulatory agency as to the exempt or zero-rated sales of the taxpayer under its regulatory supervision, if applicable 9) Certificate of Registration issued by the appropriate regulatory agency, together with the conditions attached to such registration, if applicable 1 0)

Proof of 'Approval for Effective Zero-Rating of

Sales; if applicable 11) Sample invoicejs for 'Export/Exempt Sales; if applicable 12) Proof that the acceptable foreign currency exchange proceeds on export sales/foreign currency denominated sales had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (SSP}, if applicable.

Indubitably, the law 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. Far from complying with the checklist of requirements, evidence on record shows that petitioner merely submitted eleven (11) classes of documents in its administrative claim for refund for the quarter. This fact is clearly stated in petitioner's alleged claim for refund dated May 21, 2013.~

For the 1st quarter of 2012, these documents are enumerated therein as follows:

1. Three (3) copies of the Application for VAT Credit/Refund;

2. SEC Certificate of Registration;

3. BIR Certificate of Registration;

4. Monthly VAT Declaration for January 2012 with attached summary list of purchases;

5. Monthly VAT Declaration for February 2012 with attached summary list of purchases;

6. Quarterly VAT Return for the first quarter of 2012 with attached summary list of sales and purchases;

7. Schedule of purchases with photocopies of the invoices and official receipts;

8. Certification showing of zero-rated sales and taxable sales;

9. Certification of Inward Remittances;

10. Intergroup Service Agreements;

11. Schedule of Taxable and Zero-rated Sales with photocopies of Vat official receipts;

12. A careful examination of the BIR records shows that petitioner failed to prove that it has submitted complete documents to substantiate its administrative claim for refund and to reckon the commencement of the 120-day period for the CIR. This is a requirement established by law and jurisprudence. Ergo, respondent humbly submits that failure on the part of petitioner to submit the required complete supporting documents would render the instant petition with this Honorable Court to have been prematurely filed.~

13. This is not a claim for refund of erroneously or illegally collected taxes where petitioner may choose the evidence it wishes to submit to prove its case. This is merely a claim for excess input taxes where the prescribed documentation is needed by the BIR.

14. Petitioner's alleged claim for refund is subject to administrative routinary investigation/examination by the Bureau of Internal Revenue. A claim for refund is not ipso facto granted because respondent CIR still has to investigate and ascertain the validity of the claim.

15. Respondent respectfully avers that before judicial inquiry into the issue of whether taxpayers, in general, are entitled to a refund/tax credit under substantive law may be considered, they have an initial burden to discharge. They must prove that they complied with all the administrative requirements continuing up to judicial review. In other words, before the trial de novo proceeds and disposes of the issue of refund entitlement under substantive law, it must first be proved that there was procedural compliance in pursuing the administrative claim leading to the appellate proceedings. As stated by the Honorable Supreme Court: 'Petitioner's contention that non-compliance with Revenue Regulations 3-88 could not have adversely affected its case in the CTA indicates a failure on its part to appreciate the nature of the proceedings in that court. First, a judicial claim for refund or tax credit in the CTA is bv no means an original action but rather an appeal by way of Petition for review of a Previous, unsuccessful administrative claim. Therefore, as in every appeal or petition for review, a petitioner has to convince the aPPellate court that the quasi-judicial agency a quo did not have any reason to deny its claims. In this case, it was necessary for petitioner to show the CTA not only that it was entitled under substantive law to the grant of its claims but also that it satisfied all the documentary and evidentiary requirements for an administrative claim for refund or jz-.

CIA Case Nos. 8720, 8736, 8754 and 8767 tax credit. Second, cases filed in the CTA are litigated de novo. Thus, a respondent should prove eve!JI minute aspect of its case by presenting, formally offering and submitting its evidence to the CTA. Since it is crucial for a petitioner in a judicial claim for refund or tax credit to show that its administrative claim should have been granted in the first place, part of the evidence to be submitted

to the CTA

must necessarilv include whatever is required for the successful prosecution of an administrative claim. (Emphasis and underscoring supplied)

16. The doctrine of exhaustion of administrative remedies ensures an orderly procedure which favors a preliminary sifting process, particularly with respect to matters peculiarly within the competence of the administrative agency. After this sifting process comes the availability of judicial review of administrative decisions. Judicial review of administrative decisions entails the Court to examine the method in which the decision was arrived at, and finding no error, lets the administrative decision stand. This is precisely because, as previously stated, these are matters peculiarly within the competence of the administrative agency.

17. Well-settled is the rule that exhaustion of available administrative remedies is a condition sine qua non before taking a judicial action. The Honorable Supreme Court, in long line of cases, has consistently held that if a remedy within the administrative machinery can still be resorted to by giving the administrative officer every opportunity to decide on a matter that comes within his jurisdiction, then such remedy must be exhausted first before the court's power of judicial review can be sought.

18. Moreso, the Honorable Supreme Court had the occasion to rule that where a remedy is available within the administrative machinery, this should be resorted to before resort can be made to courts, not only to give the administrative agency the opportunity to decide the matter by itself correctly, but also to prevent unnecessary and premature resort to courts. Thus, the party with an administrative remedy must not merely initiate the )e- prescribed administrative procedure to obtain relief but also pursue it to its appropriate conclusion before seeking judicial intervention in order to give the administrative agency an opportunity to decide the matter itself correctly and prevent unnecessary and premature resort to the court.

19. The doctrine of exhaustion of administrative remedies has practical and legal reasons. Resort to administrative remedies entails lesser expenses and provides for speedier disposition of controversies. Thus, for reasons of comity and convenience, courts will shy away from a dispute until the system of administrative redress has been completed and complied with so as to give the administrative agency every opportunity to correct its error and to dispose of the case. The underlying principle of the rule rests on the presumption that the administrative agency, if afforded a complete chance to pass upon the matter, will decide the same correctly.

20. Respondent respectfully submits that the 120-day period provided for by law within which the CIR has to act on petitioner's claim for refund has not yet commenced considering petitioner's failure to comply with the duly mandated legal requirements in such claims for refund/tax credit (i.e. submission of complete supporting documents). While it is true that petitioner filed an administrative claim for refund, the same is considered merely pro forma as it failed to submit documentary evidence to provide its entitlement thereto. Petitioner here failed to substantiate its administrative claim for refund.

21. Had petitioner submitted all relevant documents to substantiate its claim for refund or tax credit, respondent would have the opportunity to determine the veracity of its claim and might refund or issue a tax credit certificate for the claimed amount. Such failure of petitioner to submit relevant documents deprived respondent of the opportunity and time to study petitioner's claim for refund and to fully exercise its function. It must be remembered that in the case of Jariol vs. Commission on Elections, the Supreme Court reasoned that a party must not merely initiate the prescribed administrative procedure to obtain relief, the party concerned must pursue this relief until the appropriate conclusion takes place before seeking judicial ~ intervention in order to give the administrative an opportunity to decide the matter by itself correctly and prevent unnecessary and premature resort to the court.

22. In the alternative, assuming that compliance with RMO 53-98 is not mandatory and further assuming that the taxpayer is free to choose what evidence it needs to submit to buttress it administrative claim for refund, the present action should still be denied.

23. The taxpayer only submitted eleven (11) documents in its administrative claim for refund and considering that there was lack of evidence, the claim was denied by inaction.

24. The denial by inaction is supported by patent lack of evidence, thus the said decision suffers no infirmity. If the decision of court of origin or quasi-judicial body suffers no infirmity, the said decision should be affirmed by the appellate court on judicial review.

25. It is a well settled rule in tax laws, that the taxpayer who feels aggrieved by the actions taken by tax authorities may not seek redress in the courts of justice without first exhausting available administrative remedies, except for certain well-recognized exceptions. It is the policy of the law and good practice to discourage court litigations and encourage resort to administrative action whenever the latter is feasible, adequate and speedy. Another thing, the respect and consideration due to each branch of the government demand that the judicial department abstain, whenever possible from interfering in the acts of the other departments except when the latter transcend their respective shares of action and suitable remedies cannot be obtained by them.

26. Equally noteworthy is the fact that the Highest Tribunal in the case of Atlas Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue, held:

'Petitioner's contention that non-compliance with Revenue Regulations 3-88 could not have adversely affected its case in the CTA indicates a failure on its part to appreciate the nature of the tr- proceeding in the court First a judicial claim for refund or tax credit in the CTA is by no means an original action but rather an appeal by way of petition for review of a previous, unsuccessful administrative claim.

Therefore, as in every appeal or petition for review, a petitioner has to convince the appellate court that quasi-judicial agency a quo did not have reason to deny its claim. In this case, it is necessary for petitioner to show the CTA not only that it was entitled under substantive law to grant of its claim but also that it satisfied all the documentary evidence and evidentiary requirements for administrative claim for refund or tax credits. x x x' Thus, as clearly stated by the above jurisprudence, the necessity for petitioner to submit all relevant documents to substantiate its administrative claim for refund is imperative. The filing of the petition for review to this Honorable Court must be due to the denial of its claim or inaction which is tantamount to a denial of the said action. Absent these circumstances, the judicial claim merely becomes an attempt by the taxpayer to circumvent the role and duties of the Commissioner in evaluating taxpayer's claim for refund.

27. Failure of petitioner to exhaust all administrative remedies is fatal to its claim considering that such non- exhaustion is not merely for purposes of formality but is jurisdictional in nature.

28.

Prescinding

from and anent the foregoing considerations, petitioner's failure to exhaust all available administrative remedies which led to the premature filing of the instant petition divest the Honorable Court jurisdiction over the instant petition.

29. Exemptions from taxation are highly disfavored in law and he who claims exemption must be able to justify his claim by the clearest grant of organic or statutory law. An exemption from the common burden cannot be permitted to exist upon vague implications. ~

30. 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. Hence, a taxpayer is charged with the heavy burden of proving that he has complied with and satisfied all the statutory and administrative requirements to be entitled to the tax refund. Failure to comply therewith warrants a dismissal of the taxpayer's claim for refund. Respondent humbly submits that petitioner failed to establish its right to refund.

31. It can never be emphasized enough that in this jurisdiction tax refunds/credits are in the nature of tax exemptions, hence, laws relating to them call for a strict application against the claimant. As held by the Honorable

Supreme Court:

'Tax refunds are in the nature of tax exemptions_ and are to be construed strictissimi juris against the entity claiming the same. Thus_ the burden of proof rests upon the taxpayer to establish by sufficient and competent evidence, its entitlement to a claim for refund.

32. Taxes collected are presumed to be in accordance with laws and regulations.

33. Claims for refund are construed strictly against the claimant for the same partake of the nature of exemption from taxation and as such, they are looked upon with disfavor. Basic is the rule that tax refunds are regarded as tax exemptions that are in derogation of the sovereign authority and are to be construed in strictissimi juris against the person or entity claiming the exemption. The law does not look with favor on tax exemptions and that he who would seek to be thus privileged must justify it by words too plain to be mistaken and too categorical to be misinterpreted.

34. Based on the foregoing, petitioner's claim for refund has no basis in fact and in law. Thus, the instant petition should be dismissed for lack of jurisdiction and/or lack of merit." '!)<-- For CTA Case No. 8736 "4. Respondent hereby reiterates and repleads the preceding paragraphs of this answer as part of her Special and Affirmative Defenses.

5. Taxes collected are presumed to be in accordance with laws and regulations.

6. Petitioner's alleged claim for refund is subject to administrative routinary investigation/examination by the Bureau of Internal Revenue. A claim for refund is not ipso facto granted because respondent CIR still has to investigate and ascertain the validity of the claim.

7. In an action for refund, the burden of proof is on the taxpayer who claims the exemption and he must justify his claim by the clearest grant under the Constitutional or statutory law and cannot be permitted by vague implications (BPI Leasing Corporation vs. Honorable Court of Appeals, G.R. No. 127624, November 18, 2003) The taxpayer is charged with the heavy burden of proving that he has complied with and satisfied all the statutory and administrative requirements to be entitled to the tax refund. (Commissioner of

Internal

Revenue

vs.

Eastern

Telecommunications Philippines, Inc. G.R. No. 163835 July 7, 2010) 8.

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 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 requirement for VAT registered persons, as well as the filing and payment of VAT in compliance with the ;1e-- provisions of Section 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 pursuant to

Revenue

Memorandum

Order

No.

53-98, otherwise there would be no sufficient compliance with the filing of an administrative claim for refund which is a condition sine qua non prior to the filing of a judicial claim in accordance with Section 112 of the Tax Code, as amended. This 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 the 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 petitioner[sic] for review;

d. That the input taxes of P34,618,094.91 allegedly paid by petitioner on its domestic purchases of goods and services, purchases of capital goods and of services rendered by non-residents for the second quarter of taxable year 2012 were attributable to its zero-rated sales and such have not been applied against any output tax and were not carried over to 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) were filed within the periods provided in Sections 112 (A) and (D) 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 ik-- it actually paid VAT in accordance with Sections llO(A) (2) and 113 of the Tax Code, as amended, and pursuant to Section 4.104-5 (a) and (b) of Revenue Regulations No. 7-95 (Re: Substantiation of Claims for Input Tax Credits);

g. The requirements as enumerated under Section 4.104-5 of Revenue Regulations No. 7-95 (Re:

Substantiation of Claims for Input Tax Credits)

9.

Petitioner

must prove that the amount of P34,618,094.91 allegedly representing unutilized input VAT for the second quarter of taxable year 2012 is properly documented.

10. 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 who claims exemption must be able to justify his claim by the clearest grant of organic or statutory law. An exemption from the common burden cannot be permitted to exist upon vague implications (Asiatic Petroleum Co. vs. Llanes, 49 Phil. 466 cited in

Collector of Internal Revenue v Manila Jockey

Club, Inc., 98 Phil. 670).

11. Claims for refund are construed strictly against the claimant for the same partake of 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). Basic is the rule that tax refunds are regarded as tax exemptions that are in derogation of the sovereign authority and are to be construed in strictissimi juris against the person or entity claiming the exemption (Philippine

Phosphate

Fertilizer

Corporation

v.

Commissioner of Internal Revenue, G.R. No. 141973, June 28, 2005). The law does not look with favor on tax exemptions and that he who would seek to be thus privileged must justify it by words too plain to be mistaken and too categorical to be,..__ misinterpreted (Sea-Land Service vs. Court of Appeals, 357 SCRA 444).

12. Following the premise above-mentioned, petitioner has the burden of proving that the right to such tax refund indubitably exists and well-founded doubt is fatal to the claim."

For CTA Case No. 8754 "4. Petitioner's alleged claim for refund is subject to administrative routinary investigation/examination by the Bureau.

5. The amount of P40,305,286.80 representing alleged unutilized input VAT arising from petitioner's domestic purchases of goods and services, purchases of capital goods and purchases of services rendered by non-residents for the 3'd quarter of taxable year 2012 allegedly attributable to zero-rated sales was not properly documented.

6. 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.

7. Petitioner must show that it has complied with the provisions of Section 112 of the NIRC of 1997 on the prescriptive period for claiming tax refund/credit.

8. Petitioner must prove that it paid the alleged VAT input taxes for the periods stated.

9. Petitioner must prove that its sale of services is subject to VAT at zero percent (0%).

10. Petitioner must prove that its alleged unutilized input VAT has not been applied against any output tax liabilities both in the current or succeeding year.

11. There is no record of petitioner ever submitting complete documents to substantiate its administrative claim for refund. Such is a requirement, otherwise, the administrative body will have sufficient reason to deny the claim. As held by the Honorable Supreme Court in the case~ of Atlas Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue, G.R. No. 145526,

16 March 2007:

'Petitioner's contention that non-compliance with Revenue Regulations 3-88 could not have adversely affected its case in the CTA indicates a failure on its part to appreciate the nature of the proceedings in that court. First, a judicial claim for refund or tax credit in the CTA is by no means an original action but rather an appeal by way of petition for review of a previous, unsuccessful administrative claim. Therefore, as in every appeal or petition for review, a petitioner has to convince the appellate court that the quasi-judicial agency a guo did not have any reason to deny its claims. In this case, it was necessary for petitioner to show the CTA not only that it was entitled under substantive law to the grant of its claims but also that it satisfied all the documentary and evidentiary requirements for an administrative claim for refund or tax credit. Second, cases filed in the CTA are litigated de novo. Thus, a petitioner should prove every minute aspect of its case by presenting, formally offering and submitting its evidence to the CTA. Since it is crucial for a petitioner in a judicial claim for refund or tax credit to show that its administrative claim should have been granted in the first place. part of the evidence to be submitted to the CTA must necessarily include whatever is required for the successful prosecution of an administrative claim.' (emphasis and underscoring supplied) 12.

The implementing rule for these complete documents required by law is RMO No. 53-98. Annex B-1 of said RMO lists all the required documents as follows:

VALUE-ADDED TAX

(For audit involving Claim for Refund I TCC) A.) Requirements from Taxpayer J-

I. Requirements mention in Annex B II. Additional General Requirements 1) 3 copies of'Application for VAT Credit/ Refund' 2) Summary List of Local Purchases specifying the following:

XXX

XXX

XXX

3) Photocopies of VAT purchase invoices for purchase of goods and official receipts for purchase of services.

(The invoices/official receipts must be arranged according to the summary list) 4) Summary of importations made during the period with the following details:

XXX

XXX

XXX

5) Photocopies

of invoices, import entry documents, official receipts or confirmation receipts evidencing payment of VAT. (Segregate documents paid by cash from those paid by tax debit memo) 6) VAT Returns filed for the quarter showing that the amount applied for refund/TCC has been reflected as a deduction from the total available input tax, as well as VAT Return for the succeeding quarter 7) Certification of taxpayer showing the amount of Zero-rated Sales, Taxable Sales and Exempt

Sales

8) A

statement showing the amount and description of the sale of goods and services, name of persons or entities (except in case of exports) to whom the goods or services were sold and date of the transaction, where the applicant's zero-rated transactions are regulated by certain government agency.

9) Articles of Incorporation -

for first time filers 3Z-

10) Sales Contract/ Agreement

11) BOI Certificate of Registration

12) BIR Certificate of Registration

13) Certification from BOI, DOF, BOC, EPZA, etc., that subject taxpayer has not filed similar claim for refund covering the same period. 14)Sworn statement that ending inventory as of the close of the period covered by the Claim has been used directly or indirectly in the products subsequently exported as supported by export documents, if the applicant is 100% exporter.

15) Documents of liquidation evidencing the actual utilization of the raw materials in the manufacture of goods at least 70% of which has been actually exported, if the applicant is an indirect exporter.

16) Copy of the ITR and Certified Financial

Statements, if applicable.

17) Beginning

and ending inventory of raw materials, work-in-process, finished goods, supplies and materials.

Additional Specific Requirements

1) For Zero-Rated Sale of Services (contractors, mining, etc.)

a. Authenticated copy/ies of the contract/s showing the person/s for whom the services were rendered, amount of consideration, description of the services and documents evidencing actual payments.

b. Photocopies of official receipts and billings together with a summary of the date of billing, name of principal, official receipt ~ number, date of receipt, amount in foreign currency and the corresponding value thereof, date of remittance, name of bank, bank credit memo number and amount remitted in pesos.

c. Bank credit memoranda and certificate from the BSP with information similar to 1-c (export sales)

13. As stated above, the first documentary requirement is that provided in Annex B of the same RMO. Annex B provides for more requirements as follows:

VALUE-ADDED TAX

A) Requirements from Taxpayers 1) Proof of claimed tax credits 2) Proof of Tax Compliance Certificates applied 3) Xerox copy of used Tax Credit Certificate {TCC) with annotation of issued TOM at the back, if applicable 4) Proof of payment of deficiency tax, if any a) current year/period b) previous year/period

5) Certification

of the appropriate government agency as to taxpayer's entitlement to tax incentives, if applicable 6) Xerox copies of the Official Receipts evidencing

VAT

payment on imported purchases, if applicable 7) Proof of exemption under special law, if applicable 8) Certification of the appropriate regulatory agency as to the exempt or zero-rated sales of the taxpayer under its regulatory supervision, if applicable

9) Certificate

of

Registration

issued by the appropriate regulatory agency, together with the conditions attached to such registration, if applicable

10) Proof of 'Approval for Effective Zero-Rating of

Sales', if applicable ll)Sample invoicejs for 'Export/Exempt Sales', if applicable rz--

12) Proof that the acceptable foreign currency exchange proceeds on export sales/foreign currency denominated sales had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP), if applicable.

14.

Far

from complying with the checklist of requirements, petitioner merely submitted eleven (11) documents in support of its administrative claim for refund. This is not a claim for erroneously or illegally collected taxes where petitioner has the discretion of choosing the evidence it deems fit to prove its case. This is a claim for excess but legally collected, unutilized input taxes. It does not have to prove its case because the law already acknowledges it is entitled to refund. Thus, it merely has to substantiate the export sales and the excess amount. Hence, petitioner's failure to comply with the duly mandated legal requirements in such claims for refund/tax credit warranted the denial by inaction of the administrative claim.

15. The power to tax is the most effective instrument to raise needed revenues to finance and support the myriad activities of the government for the delivery of basic services essential to the promotion of the general welfare and enhancement of peace, progress, and prosperity of the people (Mactan Cebu International Airport Authority vs. Marcos, 261 SCRA 667, 690). Consequently, any delay in implementing tax measures would be to the detriment of the public. It is for this reason that claims for refund are required to be done within certain time frames. In the instant petition, the failure of petitioner to comply with such periods is fatal to its cause.

16. Moreover, petitioner's failure to submit documents supporting its claim for refund makes its administrative claim for refund pro-forma. This pro-forma administrative claim should not be taken as proper compliance with the requirements of the law that an administrative claim for refund should have been filed prior to the institution of a judicial claim for refund. Thus, without a validly and duly filed administrative claim for refund, the Honorable Court is without jurisdiction to entertain the Petition for Review. Petitioner's failure to comply with a condition precedent~ prior to the institution of its petition for review makes it dismissible for absence of jurisdiction on the part of the Honorable Court.

17. The claimant has the burden of proof to establish the factual basis of his claim for tax credit or refund. After all tax refunds, like tax exemptions, are construed strictly against the taxpayer. (Citibank N.A. vs. Court of Appeals and Commissioner of Internal Revenue, 280 SCRA 459; Commissioner of Internal Revenue vs. Tokyo Shipping Co., Ltd., 244 SCRA 332, both cited in Benguet Corporation vs. Commissioner of Internal Revenue, CTA Case No. 5392 promulgated October 30, 1998).

18. Partaking of the nature of exemptions, claims for refund are strictly construed against the claimant and cannot be allowed unless granted in the most explicit and categorical language. (Sps. Aguilar vs. Commissioner of Internal Revenue, et al., CA G.R.SP No. 16432, March 30, 1999). Being in the nature of tax exemptions, these claims are regarded as in derogation of sovereign authority and to be construed strictissimi juris against the claimant and liberally in favor of the taxing authority (Commissioner of Internal Revenue vs. Procter and Gamble Philippines Manufacturing Corporation, 204 SCRA 377).

19. 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 such, they are looked upon with disfavor (Western Minolco Corp. vs. Commissioner of Internal Revenue/ 124 SCRA 1211)." For CTA Case No. 8767 "4. Petitioner's alleged claim for refund is subject to administrative routinary investigation/examination by the Bureau.

5. The amount of P36,892,170.72 representing alleged unutilized input VAT arising from petitioner's alleged domestic purchases of goods and services, purchases of capital goods and purchases of services rendered by non- jiL residents for the 4th quarter of taxable year 2012 allegedly attributable to zero-rated sales was not properly documented.

6. 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.

7. Petitioner must show that it has complied with the provisions of Section 112 of the NIRC of 1997 on the prescriptive period for claiming tax refund/credit.

8. Petitioner must prove that it paid the alleged VAT input taxes for the periods stated.

9. Petitioner must prove that its sales of services is subject to VAT at zero percent (0%).

10. Petitioner must prove that its alleged unutilized input VAT has been applied against any output tax liabilities both in the current or succeeding year.

11. There is no record of petitioner ever submitting complete documents to substantiate its administrative claim for refund. Such is a requirement, otherwise, the administrative body will have sufficient reason to deny the claim. As held by the Honorable Supreme Court in the case of Atlas Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue, G.R. No. 145526,

16 March 2007:

'Petitioner's contention that non-compliance with Revenue Regulations 3-88 could not have adversely affected its case in the CTA indicates a failure on its part to appreciate the nature of the proceedings in that court. First, a judicial claim for refund or tax credit in the CTA is by no means an original action but rather an appeal by way of petition for review of a previous, unsuccessful administrative claim. Therefore, as in every appeal or petition for review, a petitioner has to convince the appellate court that the quasi-judicial agency a guo did not have any reason to deny its claims. In this case, it was necessary for petitioner to show the ~ CTA not only that it was entitled under substantive law to the grant of its claims but also that it satisfied all the documentarv and evidentiarv requirements for an administrative claim for refund or tax credit. Second, cases filed in the CTA are litigated de novo. Thus, a petitioner should prove every minute aspect of its case by presenting, formally offering and submitting its evidence to the CTA. Since it is crucial for a petitioner in a judicial claim for refund or tax credit to show that its administrative claim should have been granted in the first place. part of the evidence to be submitted to the CTA must necessarily include whatever is required for the successful prosecution of an administrative claim.' (emphasis and underscoring supplied)

11. The implementing rule for these complete documents required by law is RMO No. 53-98. Annex B-1 of said RMO lists all the required documents as follows:

VALUE-ADDED TAX

(For audit involving Claim for Refund/ TCC) A.) Requirements from Taxpayer I. Requirements mention in Annex B II. Additional General Requirements 1) 3 copies of 'Application for VAT Credit I

Refund'

2) Summary List of Local Purchases specifying the following:

XXX

XXX

XXX

3) Photocopies of VAT purchase invoices for purchase of goods and official receipts for purchase of services. (The invoices/official receipts must be arranged according to the summary list) 4) Summary of importations made during the period with the following details: Jc.-

XXX

XXX

XXX

5)

Photocopies

of invoices, import entry documents, official receipts or confirmation receipts evidencing payment of VAT. (Segregate documents paid by cash from those paid by tax debit memo) 6) VAT Returns filed for the quarter showing that the amount applied for refund/TCC has been reflected as a deduction from the total available input tax, as well as VAT Return for the succeeding quarter 7) Certification of taxpayer showing the amount of Zero-rated Sales, Taxable Sales and Exempt

Sales

8) A statement showing the amount and description of the sale of goods and services, name of persons or entities (except in case of exports) to whom the goods or services were sold and date of the transaction, where the applicant 's zero-rated transactions are regulated by certain government agency.

9)

Articles of Incorporation -

for first time filers

10) Sales Contract/Agreement

11) BOI Certificate of Registration

12) BIR Certificate of Registration

13) Certification from BOI, DOF, BOC, EPZA, etc., that subject taxpayer has not filed similar claim for refund covering the same period. 14) Sworn statement that ending inventory as of the close of the period covered by the Claim has been used directly or indirectly in the products subsequently exported as supported by export documents, if the applicant is 100% exporter. fo-

15) Documents of liquidation evidencing the actual utilization of the raw materials in the manufacture of goods at least 70% of which has been actually exported, if the applicant is an indirect exporter.

16) Copy of the ITR and Certified Financial

Statements, if applicable.

17) Beginning and ending materials, work-in-process, supplies and materials.

Additional Specific Requirement

inventory of raw finished goods, 1) For Zero-Rated Sale of Services (contractors, mining, etc.)

a.Authenticated copy/ies of the contract/s showing the person/s for whom the services were rendered, amount of consideration, description of the services and documents evidencing actual payments.

b. Photocopies of official receipts and billings together with a summary of the date of billing, name of principal, official receipt number, date of receipt, amount in foreign currency and the corresponding value thereof, date of remittance, name of bank, bank credit memo number and amount remitted in pesos

c. Bank credit memoranda and certificate from the BSP with information similar to 1-c (export sales)

12. As stated above, the first documentary requirement is that provided in Annex B of the same RMO. Annex B provides for more requirements as follows:

VALUE-ADDED TAX

A) Requirements from Taxpayers 1) Proof of claimed tax credits 2) Proof of Tax Compliance Certificates applied 3) Xerox copy of used Tax Credit Certificate (TCC) with annotation of issued TDM at the back, if applicable 4) Proof of payment of deficiency tax, if any a) current year/period ~ b) previous year/period 5) Certification of the appropriate government agency as to taxpayer's entitlement to tax incentives, if applicable 6) Xerox copies of the Official Receipts evidencing

VAT

payment on imported purchases, if applicable 7) Proof of exemption under special law, if applicable 8) Certification of the appropriate regulatory agency as to the exempt or zero-rated sales of the taxpayer under its regulatory supervision, if applicable

9) Certificate

of

Registration

issued by the appropriate regulatory agency, together with the conditions attached to such registration, if applicable

10) Proof of 'Approval for Effective Zero-Rating of

Sales', if applicable 11) Sample invoice/s for 'Export/Exempt Sales', if applicable 12) Proof that the acceptable foreign currency exchange proceeds on export sales/foreign currency denominated sales had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP), if applicable.

13.

Far

from complying with the checklist of requirements, petitioner merely submitted eleven (11) documents in support of its administrative claim for refund. This is not a claim for erroneously or illegally collected taxes where petitioner has the discretion of choosing the evidence it deems fit to prove its case. This is a claim for excess but legally collected, unutilized input taxes. It does not have to prove its case because the law already acknowledges it is entitled to refund. Thus, it merely has to substantiate the export sales and the excess amount. Hence, petitioner's failure to comply with the duly mandated legal requirements in such claims for refund/tax credit warranted the denial by inaction of the administrative claim.

14. The power to tax is the most effective instrument to raise needed revenues to finance and support the myriad ~ activities of the government for the delivery of basic services essential to the promotion of the general welfare and enhancement of peace, progress, and prosperity of the people

(Mactan Cebu

International Airport

Authority

vs.

Marcos, 261

SCRA

667, 690).

Consequently, any delay in implementing tax measures would be to the detriment of the public. It is for this reason that claims for refund are required to be done within certain time frames. In the instant petition, the failure of petitioner to comply with such periods is fatal to its cause.

15. Moreover, petitioner's failure to submit documents supporting its claim for refund makes its administrative claim for refund pro-forma. This pro-forma administrative claim should not be taken as proper compliance with the requirements of the law that an administrative claim for refund should have been filed prior to the institution of a judicial claim for refund. Thus, without a validly and duly filed administrative claim for refund, the Honorable Court is without jurisdiction to entertain the Petition for Review. Petitioner's failure to comply with a condition precedent prior to the institution of its petition for review makes it dismissible for absence of jurisdiction on the part of the Honorable Court.

16. The claimant has the burden of proof to establish the factual basis of his claim for tax credit or refund. After all tax refunds, like tax exemptions, are construed strictly against the taxpayer. (Citibank N.A. vs. Court of Appeals and Commissioner of Internal Revenue, 280 SCRA 459; Commissioner of Internal Revenue vs. Tokyo Shipping Co., Ltd., 244 SCRA 332, both cited in Benguet Corporation vs. Commissioner of Internal Revenue, CTA Case No. 5392 promulgated October 30, 1998).

17. Partaking of the nature of exemptions, claims for refund are strictly construed against the claimant and cannot be allowed unless granted in the most explicit and categorical language.

(Sps.

Aguilar

vs.

Commissioner of Internal Revenue, et al., CA G.R.SP No. 16432, March 30, 1999). Being in the nature of tax exemptions, these claims are regarded as in derogation of sovereign authority and to be construed strictissimi juris against the claimant and liberally in favor of the taxing lt-- authority (Commissioner of Internal Revenue vs.

Procter and Gamble Philippines Manufacturing

Corporation, 204 SCRA 377).

18. Claims for refund are construed strictly against the claimant for the same partake of the nature of exemption from taxation (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA 95) and such, they are looked upon with disfavor (Western Minolco Corp. vs. Commissioner of Internal Revenue, 124 SCRA 1211). On April 29, 2014, the CTA First Division issued a Resolution38 consolidating CTA Case No. 8754 with CTA Case Nos. 8720, 8736 and 8767. The Pre-Trial Conference was set on June 13, 2014. Thereafter, Respondent's Pre-Trial BrieP9 and Pre-trial Brief for Petitioner"0 were filed on June 4, 2014 and June 6, 2014, respectively.

On July 3, 2014, the parties filed their Joint Stipulation of Facts and Issues41, which was approved in the Resolution42 promulgated on August 18, 2014.

During trial, petitioner presented the following witnesses: Ms. Rachel M. Concepcion43, petitioner's Finance Controller; Ms. Katherine

0. Constantino44, Court-commissioned Independent Certified Public Accountant (ICPA);

and Marice! Tio-Balagtas45, then part of petitioner's Finance Legal Entity Control Team. On April 6, 2015, petitioner filed its Formal Offer of Evidence (With Urgent Motion to Set Commissioner's Hearing for Marking of Exhibits)46 offering Exhibits "P-1" to "P-4332", inclusive of sub- ~

markings, with respondents' Motion to Admit Attached Comment-47 and Comment (Re: Petitioner's Formal Offer of Evidence)48, filed on April 23, 2015, and respondent's Comment (Re: Urgent Motion to set Commissioner's Hearing)49, filed on April 23, 2015. On June 11, 2015, petitioner filed its Comment/Opposition (Re: Respondent's Motion to Admit dated April 23, 2015). 50 The Court granted petitioner's Urgent

Motion to Set

Commissioner's Hearing for Marking of Exhibits in the Resolution51 promulgated on June 15, 2015.

In the Resolution52 dated July 24, 2015, the Court granted respondents' Motion to Admit Attached Comment and admitted Comment (Re: Petitioner's Formal Offer of Evidence). Except for Exhibits "P-3-a", "P-13.27", "P-13.32", "P-13.33", "P- 13.34", "P-13.35", "P-13.36", "P-13.37", "P-13.38", "P-13.39", "P- 13.40", "P-13.41", "P-13.42", "P-13.43", "P-13.44", "P-13.45, "P- 13.46", "P-13.47", "P-13.48", "P-13.49", "P-13.50", "P-13.51", "P- 13.52", "P-13.53", "P-13.54", "P-27-a", "P-21" and "P-34", the Court admitted Exhibits "P-1" "P-2" "P-3" "P-3-b" "P-4" "P-4-a" "P-4-b"

I

I

I

I

I

I

I

"P-4-c" "P-4-d" "P-4-e" "P-4-f" "P-4-g" "P-5" "P-5-a" "P-5-b" "P- '

I

I

I

I

I

I

I

5-c" "P-6" "P-6-a" "P-6-b" "P-6-c" "P-6-d" "P-7" "P-7-a" "P-7-b"

I

I

f

I

I

I

I

I

I

"P-7-c" "P-7-d" "P-8" "P-8-a" "P-8-b" "P-8-c" "P-9" "P-9-a" "P-9- ,

I

I

I

I

I

I

I

b", "P-9-c", "P-10", "P-10-a", "P-10-b", "P-10-c", "P-11", "P-12", "P- 13", "P-13.¹", "P-13.²", "P-13.³", "P-13.⁴", "P-13.⁵", "P-13.⁶", "P-

13. 7", "P-13.8", "P-13.9", "P-13.10", "P-13.11", "P-13.12", "P-13.13", "P-13.14", "P-13.15", "P-13.16", "P-13.17", "P-13.18", "P-13.19", "P- 13.20", "P-13.21", "P-13.22", "P-13.23", "P-13.24", "P-13.25", "P- 13.26", "P-13.28", "P-13.29", "P-13.30", "P-13.31", "P-14", "P-14.1", "P-14.2", "P-14.3", "P-14.4", "P-14.5", "P-14.6", "P-14. 7", "P-14.8", "P-14.9", "P-14.10", "P-14.11", "P-14.12", "P-14.13", "P-14.14", "P- 14.15", "P-14.16", "P-14.17", "P-14.18", "P-14.19", "P-14.20", "P- 14.21", "P-14.22", "P-14.23", "P-14.24", "P-14.25", "P-14.26", "P- 14.27", "P-14.28", "P-14.29", "P-14.30", "P-14.31", "P-14.32", "P- 14.33", "P-14.34", "P-14.35", "P-14.36", "P-14.37", "P-14.38", "P- 14.39", "P-14.40", "P-14.41", "P-14.42", "P-14.43", "P-14.44", "P-~

14.45”, “P-14.46”, “P-14.47”", “P-14.48”, “P-14.49”, “P-14.50”, “P- 14.51”, “P-14.52”, “P-14.53”, “P-14.54”, “P-14.55”, “P-14.56”, “P- 14.57”, “P-14.58”, “P-14.59”, “P-14.60”, “P-14.61”, “P-14.62”, “P- 14.63”, “P-14.64”, “P-14.65”, “P-14.66”, “P-14.67”, “P-14.68”, “P- 14.69”, “P-14.70”, “P-14.71”, “P-14.72”, “P-14.73”, “P-14.74”, “P- 14.75”, “P-15”, “P-15.1”, “P-15.2”, “P-15.3”, “P-15.4”, “P-15.5”, “P- 15.6”, “P-15.⁷”, “P-15.⁸”, “P-15.⁹”, “P-15.¹⁰”, “P-15.¹¹”, “P-15.¹²”, “P-15.¹³”, “P-15.¹⁴”, “P-15.¹⁵”, “P-15.¹⁶”, “P-15.¹⁷”, “P-15.¹⁸”, “P- 15.¹⁹”, “P-15.²⁰”, “P-15.²¹”, “P-15.²²”, “P-15.²³”, “P-15.²⁴”, “P- 15.²⁵”, “P-15.²⁶", “P-15.²⁷”, “P-15.²⁸”, “P-15.²⁹”, “P-15.³⁰”, “P- 15.³¹”, “P-15.³²”, “P-15.³³”, “P-15.³⁴”, “P-15.³⁵”, “P-15.³⁶”, “P- 15.³⁷”, “P-15.³⁸”, “P-15.³⁹”, “P-15.⁴⁰”, “P-15.⁴¹”, “P-15.⁴²”, “P-16”, “P-17", “P-17-a”, “P-17-b”, “P-17-c”, “P-18”, “P-19”, “P-19-a”, “P-19- b”, “P-19-c”, “P-20”, “P-22”, “P-23”, “P-23-a”, “P-23-b”, “P-23-c”, “P- 24”, “P-24-a”, “P-25”, “P-25-a”, “P-26”, “P-26-a", “P-27”, “P-28”", “P- 29”, “P-29-1”, “P-31", “P-31-1”, “P-32”, “P-33”, “P-35", “P-36”, “P- 37”, “P-38", “P-39”, “P-40”, “P-41”, “P-42”, “P-43”, “P-44”, “P-45”, “P- 46”, “P-47”, “P-48”, “P-49”, “P-50”, “P-51”, “P-52”, “P-53”, “P-54”, “P- 55”, “P-56”, “P-57”, “P-58”, “P-59”, “P-60”, “P-61”, “P-62”, “P-63”, “P- 64”, “P-65”, “P-66”, “P-67”, “P-68”, “P-69”, “P-70”, “P-71”, “P-72”, “P- 73”, “P-74", “P-75”, “P-76”, “P-77”, “P-78”, “P-79”, “P-80”, “P-81”, “P- 82”, “P-83”, “P-84”, “P-85”, “P-86”, “P-87”, “P-88”, “P-89”, “P-90”, “P- 91”, “P-92”, “P-93”, “P-94”, “P-95”, “P-96”, “P-97”, “P-98”, “P-99”, “P- 100”, “P-101 to P-978”, “P-979 to P-1004”, “P-1005 to P-4315”, “P- 4316”, “P-4317”, “P-4319”, “P-4320”, “P-4321”, “P-4322”, “P-4323”", “P-4324", “P-4325”, “P-4326", “P-4327”, “P-4328”, “P-4329", “P- 4330”, “P-4331”", “P-4332” and “P-4332-1” in the Resolution? promulgated on September 28, 2015.

On October 16, 2015, petitioner filed a Motion for Reconsideration (Re: Resolution dated September 28, 2015) (With Motion to Set Commissioner's Hearing),** with respondent’s Comment (Re: Motion for Reconsideration with Dated 16 October 2015)°°, filed on November 5, 2015. Petitioner's Motion to Set Commissioner's Hearing was granted by the Court in its Resolution®® dated January 22, 2016. The resolution of petitioner’s Motion for Reconsideration (Re: Resolution dated September 28, 2015) was held in abeyance.

Thereafter, petitioner re-submits its Formal Offer of Evidence?” on May 30, 2016, and offered Exhibits “P-21”, “P-27-a”, “P-13.27”, De.

53 CTA Case No. 8720, Docket (Vol. IV), pp. 3264-3266. * CTA Case No. 8720, Docket (Vol. IV), pp. 3267-3280

"P-13.32" to "P-13.38", "P-13.40", "P-13.42", "P-13.44" to "P-13.45", "P-13.52" and "P-13.54" as part of its documentary evidence. On May 31, 2016, respondent filed his Comment (Re: Petitioner's Formal Offer of Evidence).58 The Court, however, only admitted Exhibit "P- 21" in its Resolution59 promulgated on July 26, 2016. The Court partially granted petitioner's Motion for Reconsideration

(Re:

Resolution dated September 28, 2015). In the hearing held on August 30, 2016, respondent's sole witness, Revenue Officer Elizabeth U. Cadiz,60 was presented on the witness stand. Thereafter, respondent filed a Formal Offer of Evidence61 on September 1, 2016, offering Exhibits "R-1", "R-2" and "R-2-1", which were all admitted in the Resolution62 promulgated on November 4, 2016.

Subsequently, the Memorandum (For Respondent)63 and petitioner's Memorandum (With Motion to Re-open Trial)64 were filed on December 5, 2016 and January 9, 2017, respectively. Respondent, on the other hand, filed his Comment/Opposition Re: Petitioner's Memorandum (with Motion to Reopen Trial)65 on February 27, 2017. In the Resolution66 dated September 13, 2017, the Court granted petitioner's Motion to Reopen Trial. On February 15, 2018, petitioner filed its Supplemental Formal Offer of Evidence (With Motion to Set Commissioner's Hearing),67 offering Exhibits "P-4332" to "P-4351", and "P-4353 to "P-4394-1." Respondent's filed his Comment Re: Petitioner's Supplemental Formal Offer of Evidence68 on February 26, 2018. In the Resolution69 dated April 18, 2018, the Court granted petitioner's Motion to Set Commissioner's Hearing; held in abeyance petitioner's Supplemental Formal Offer of Evidence; and noted )c.-

respondent’s manifestation in his Comment Re: Petitioner's Supplemental Formal Offer of Evidence that he has no more witness to present.

On July 19, 2018, petitioner filed a Submission and Manifestation (Re: Supplemental Formal Offer of Evidence)’°.

In the Resolution’! dated August 20, 2018, the Court resolved petitioner’s Supplemental Formal Offer of Evidence. The Court admitted Exhibits "P-4332", "P-4333", "P-4334", "P-4335", "P-4336", "P-4337", "P-4338", "P-4339", "P-4340", "P-4341", "P-4342", "P- 4343", "P-4344", "P-4345", "P-4346", "P-4347", "P-4348", "P-4349", "P-4350", "P-4351", "P-4353", "P-4354", "P-4355", "P-4356", "P- 4357", "P-4358", "P-4359", "P-4360", "P-4361", "P-4362", "P-4363", "P-4364", "P-4365", "P-4366", "P-4367", "P-4368", "P-4369", "P- 4370", "P-4371", "P-4372", "P-4373", "P-4374", "P-4375", "P-4376", "P-4377", "P-4378", "P-4380", "P-4382", "P-4383", "P-4384", "P- 4385", "P-4386", "P-4388", "P-4390", "P-4392", "P-4393", "P-4394", and "P-4394-1". The Court denied the admission of Exhibits “P-4379”, “P-4381”, “P-4387”, “P-4389” and “P-4391”.

In an Order”? dated September 26, 2018, the above-captioned cases were transferred to the Second Division, pursuant to CTA Administrative Circular No. 02-2018, “Reorganizing the Three (3) Divisions of the Court”, dated September 18, 2018.

On October 18, 2018, the instant cases were submitted’? for decision, taking into consideration petitioner’s Memorandum”, filed on October, 12, 2018, and the Memorandum (for Respondent) filed on December 5, 2016.

ISSUE

The parties submitted this sole issue”? for the consideration of

the Court: 9

"Whether or not petitioner is entitled to a refund or issuance of tax credit certificate for its alleged unutilized input VAT arising from purchases of goods (other than capital goods) and services, purchases of capital goods, and purchases of services rendered by non-residents attributable to zero-rated sales for the Pt, 2nd, 3'd and 4th Quarters of 2012 in the amounts of P35,343,482.10, P34,618,094.91, P40,305,286.80 and P36,892,170.72, respectively, or in the aggregate amount of P147,159,034.53."

COURT'S RULING

Petitioner's claims for refund or tax credit find legal basis on Section 112 (A) and (C) of the National Internal Revenue Code of 1997, as amended, which provides: "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(8){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 of 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 )c.

sales: Provided, finally, That for a person making sales that are zero-rated under Section 108(8)(6), the input taxes shall be allocated ratably between his zero-rated and non-zero-rated sales.

XXX XXX XXX

(C) Period within which Refund or Tax Credit of Input Taxes shall be Made. - In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsection (A) hereof.

In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one- hundred-twenty-day period, appeal the decision or the unacted claim with the Court of Tax Appeals." Pursuant to the above-quoted provision, a taxpayer engaged in zero-rated or effectively zero-rated sales is entitled to a claim for refund or tax credit of excess input taxes attributable to such sales upon compliance with the following requisites:

1. that the taxpayer is VAT-registered;

2. that the claim for refund was filed within the prescriptive periods;

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

4. that input taxes were incurred or paid;

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

6. that the input taxes were not applied against any output VAT liability.

Petitioner is a VAT- registered entity ~

It is undisputed that petitioner is registered with the BIR as a VAT taxpayer, with TIN No. 238-763-115-000 and BIR Certificate of Registration No. OCN 9RC0000270209. 76 Petitioner Timely Filed its

Administrative and Judicial

claims Applying the afore-quoted provision of Section 112 (A) of the NIRC of 1997, as amended, the two (2)-year prescriptive period in filing administrative claim is reckoned from the close of the taxable quarter when the zero-rated or effectively zero-rated sales were made or until March 31, 2014 for the first quarter, June 30, 2014 for the 2nd quarter, September 30, 2014 for the 3rd quarter and December 31, 2014 for the 4th quarter, as shown below:

Case

Taxable

End of Quarter

End of 2 years

Date of Filing of

No.

Quarter

Administrative

Claim

8720 1st Quarter March 31, 2012 March 31, 2014 May 23, 2013 2012 8736 2nd Quarter June 30, 2012 June 30, 2014 June 26, 2013 2012 8754 3rd Quarter

September

30,

September

30, August 8, 2013 2012 2012 2014 8767 4th Quarter

December

31,

December

31, October 8, 2013 2012 2012 2014

Based

therefrom, there is no doubt that petitioner seasonably filed its administrative claims for refund/tax credit with the BIR.

As to the timeliness of petitioner's judicial claim, the afore- quoted provision of Section 112 (C) of the NIRC of 1997, as amended, provides that the Commissioner of Internal Revenue (CIR) has 120 days from the date of submission of the complete documents in support of the application for refund or tax credit certificate within which to grant or deny the claim. In case of full or partial denial by the CIR, the taxpayer's recourse is to file an appeal before the Court of Tax Appeals within thirty (30) days from receipt of the decision of the CIR. However, if, after the 120- day period, the CIR fails to act on the application for tax tc-

refund/credit, the remedy of the taxpayer is to appeal the inaction of the CIR to the Court of Tax Appeals within thirty (30) days. However, respondent insists that petitioner's judicial claim for refund was prematurely filed for its failure to exhaust administrative remedies when it failed to submit complete documents for its administrative claim for refund pursuant to Revenue Memorandum Order No. 53-98.77 The Court does not agree.

In Pilipinas Total Gas, Inc. vs. Commissioner of Internal Revenue"8 (Pilipinas Total Gas, Inc. Case), the Supreme Court emphasized the right of the Commissioner of Internal Revenue (CIR) to demand the submission of additional supporting documents from the taxpayer for the proper determination of the latter's entitlement to its claim for refund; the need for the CIR to send a written notice informing the taxpayer that the documents submitted before the Bureau of Internal Revenue were incomplete; and the adverse consequence of failing to give such written notification to the taxpayer, in this wise:

"To summarize, for the just disposition of the subject controversy, the rule is that from the date an administrative claim for excess unutilized VAT is filed, a taxpayer has thirty (30) days within which to submit the documentary requirements sufficient to support his claim, unless given further extension by the CIR. Then, upon filing by the taxpayer of his complete documents to support his application, or expiration of the period given, the CIR has 120 days within which to decide the claim for tax credit or refund. Should the taxpayer, on the date of his filing, manifest that he no longer wishes to submit any other addition documents to complete his administrative claim, the 120-day period allowed to the CIR begins to run from the date of filing.

In all cases, whatever documents a taxpayer intends to file to support his claim must be completed within the two-year period under Section 112 (A) of the NIRC. The 30-day period from denial of the claim or from the 1-e--

expiration of the 120-day period within which to appeal the denial or inaction of the CIR to the CTA must also be respected.

It bears mentioning at this point that the foregoing summation of the rules should only be made applicable to those claims for tax credit or refund filed prior to June 11, 2014, such as the claim at bench.

XXX

XXX

XXX

The alleged failure of Total Gas to submit the complete documents at the administrative level did not render its petition for review with the CTA dismissible for lack of jurisdiction. First, the 120-day period had commenced to run and the 120+30 day period was, in fact, complied with. As already discussed, it is the taxpayer who determines when complete documents have been submitted for the purpose of the running of the 120- day period. It must again be pointed out that this in no way precludes the

CIR

from requiring additional documents necessary to decide the claim, or even denying the claim if the taxpayer fails to submit the additional documents requested.

Second, the CIR sent no written notice informing Total Gas that the documents were incomplete or required it to submit additional documents. As stated above, such notice by way of a written request is required by the CIR to be sent to Total Gas. Neither was there any decision made denying the administrative claim of Total Gas on the ground that it had failed to submit all the required documents. It was precisely the inaction of the BIR which prompted Total Gas to file the judicial claim. Thus, by failing to inform Total Gas of the need to submit any additional document, the BIR cannot now argue that the judicial claim should be dismissed because it failed to submit complete documents."

The above pronouncement was reiterated by the Supreme Court in the more recent cases of Commissioner of Internal Revenue vs.;.:..

Semirara Mining Corp/9 and Commissioner of Internal Revenue vs. Team Energy Corp. 80 Records show that upon submission81 of various documents in support of its claim for refund, petitioner did not receive any written notice from respondent requiring it to submit additional document or informing it that the documents submitted were inadequate or incomplete. Thus, following the doctrine in Pilipinas Total Gas, Inc. Case, respondent cannot now argue that petitioner failed to submit complete documents. Consequently, the counting of the 120-day period should be reckoned from the filing of petitioner's administrative claims for refund. Applying, therefore, Section 112(C) of the NIRC of 1997, as amended, petitioner's judicial claims for the four quarters of CY 2012 were likewise timely filed within the "120-30" day period, as shown below:

Date of Filing of

End of 120

Administrative

days for the

Date of

Claim I

BIR

End of 30 days

Filing of

CTA

Submission of

Commissioner

from the

Petition

Case

Complete

to decide on expiration of for No.

CY 2012

Documents

the claim the 120 days

Review

8720 1st Quarter

23-May-13

20-Sep-13

21-0ct-1382 18-0ct-13 8736 2nd Quarter

26-Jun-13

24-0ct-13

25-Nov-1383

19-Nov-13

8754 3rd Quarter

08-Aug-13

06-Dec-13

06-Jan-1484

06-Jan-14

8767 4th Quarter 08-0ct-13

05-Feb-14

07-Mar-14

19-Feb-14

Thus, petitioner's judicial claims for refund were satisfactorily proven to be filed on time.

Petitioner had zero-rated sales Je.- 79 G.R. No. 202922, June 19, 2017. 80 G.R. No. 230412, March 27, 2019. 81 Three (3) copies of the Application for VAT Credit/Refund (BIR Form No. 1914); SEC Certificate of Registration; BIR Certificate of Registration; Monthly VAT Declaration with attached summary list of purchases; Quarterly VAT Return with attached summary list of sales and purchases; Schedule/Details of Purchases with photocopies of VAT invoices and official receipts; Certification of Zero-rated Sales and Taxable Sales; Certification of Inward Remittances; Schedule/Details of Taxable and Zero-rated Sales with photocopies of VAT official receipts; and Intergroup Service Agreements. 82 October 20, 2013 fell on a Sunday. 83 November 23 and 24, 2013 fell on a Saturday and Sunday, respectively. 84 January 5, 2014 fell on a Sunday.

With regard to the third requisite, i.e., the existence of zero- rated sales, petitioner claims that it rendered services to non-resident entities not engaged in trade or business in the Philippines, the payments for which were made in Euro and other acceptable foreign currency and accounted for in accordance with the rules and regulations of the 8SP. As such, these sales are subject to zero percent (0%) VAT, pursuant to Section 108(8) (2) of the NIRC of 1997, as amended, which states: "SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties. -

X X X

X X X

X X X

"(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:

X X X

X X X

X X X

"(2) Services other than those mentioned in the preceding paragraph rendered to a person engaged in business conducted outside the Philippines or to a nonresident person not engaged in business who is outside the Philippines when the services are performed, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP);" In the case of Commissioner of Internal Revenue vs.

Burmeister and Wain Scandinavian Contractor Mindanao, Inc., 85 the Supreme Court held that in order for the supply of services to be VAT zero-rated under Section 108(8)(2) of the NIRC of 1997, as amended, the following requisites must be met:

1. the services must be other than processing, manufacturing or repacking of goods;

2. payment for such services must be in acceptable foreign currency accounted for in accordance with the 8SP rules and regulations; and

3. the recipient of such services is doing business outside the Philippines.

Petitioner complied with the first requisite. Records show that petitioner is duly licensed

by the Securities and

Exchange

Commission (SEC) to do business in the Philippines as a regional~

operating headquarters (ROHQ) under

SEC

Registration

No.

FS200506950 dated April 25, 2005, pursuant to the Omnibus Investment Code of 1987, as amended by Republic Act (RA) No. 8756, and its implementing rules and regulations, particularly, to engage in general administration and planning_- business planning and coordination_- sourcing/procurement of raw materials and components_- corporate finance advisory services_- marketing control and sales promotion_- training and personnel management_- logistic services_- research and development services and product development_- technical support and maintenance_- data processing and communication and business development 86 Such services are not in the same category as "processing, manufacturing or repacking of goods".

Petitioner, likewise, complied with the third requisite. Petitioner presented the following documents to prove that its clients/affiliates are non-resident foreign corporations doing business outside the

Philippines:

1. SEC Certifications of Non-Registration of Company87;

2. IntraGroup Service Agreements88;

3. Company

Registration

Documents

(Certificate

of Registration/ Certificate of Incorporation/ Association)89; and

4. AMinet Company Profile Fact Sheets.90 However, each of the aforesaid documents is insufficient to prove that petitioner's client is a non-resident foreign corporation doing business outside the Philippines. The Company Registration Documents (i.e., Certificates of Registration/ Foreign Incorporation/ Association) only prove that the named entities therein were incorporated/organized/domiciled abroad. However, they do not establish that such entities are not doing business in the Philippines. 9-t--

Also, the SEC Certificates of Non-Registration only show that the named entities therein are not registered corporations/partnerships in the Philippines. However, it does not necessarily follow that when an entity is not registered here, it is also a non-resident foreign corporations doing business outside the Philippines.

Likewise, the Service Agreements only show the names and addresses of petitioner's clients to whom it renders services but the same do not establish that such clients are non-resident foreign corporations doing business outside the Philippines. Similarly, the Service Agreements only show the names and addresses of petitioner's clients to whom it renders services, but the same do not establish that such clients are non-resident foreign corporations doing business outside the Philippines. In the case of Site! Philippines Corporation (formerly Clientlogic Phils., Inc.) vs. Commissioner of Internal Revenue91,

the Supreme

Court already held that while Sitel's documentary evidence, which included Certifications issued by the Securities and Exchange Commission and Agreements between Sitel and its foreign clients, may have established that Sitel rendered services to foreign corporations and received payment therefore through inward remittances, said documents failed to specifically prove that such foreign clients were doing business outside the Philippines or have a continuity of commercial dealings outside the Philippines. Thus, to be considered as non-resident foreign corporations doing business outside the Philippines, each entity must be supported, at the very least, by both SEC certificate of non- registration of corporation/partnership and certificate/articles of foreign incorporation/association/registration, as held in the more recent case of Deutsche Knowledge Services, Pte Ltd.

v.

Commissioner of Internal Revenue92:

Upon close scrutiny of the records, the Court cannot give credence to the purported foreign business registration print-outs retrieved from the AMinet database which is a web-based database set up by Deutsche Bank Global, petitioner's head office located in ;.- 91 G.R. No. 201326, February 8, 2017. 92 CfA EB Nos. 1244 and 1345, March 30, 2017.

Germany.93 Said documents are not sufficient to establish the fact that the service recipients are non-resident foreign corporations doing business outside the Philippines, as they may be considered self-serving and can be easily manipulated to favor petitioner in view of its affinity with the entity that maintains or keeps the said database.

Moreover, the following table shows whether petitioner complied with the third requisite as it presented the admitted SEC

Certificate

of

Non-Registration

and

Certificates

of

Registration/Foreign

Incorporation/ Association for each of the recipients of the services rendered by petitioner:

SEC

Certificate of

Certificatio

Registration

n of Non-

1 Articles of

Registratio

Incorporatio

n of n/

Company

Association

Customer's Name

(Exhibit)

(Exhibit)

I. Entities supported by BOTH SEC Certificate of non-registration AND Certificate of Reqistration I Articles of Incorporation I Association: DB Hedgeworks, LLC P-15.27 P-13.31

DB International (Asia) Limited

P-15.38

P-4385

DB Services Tennessee Inc.

P-4334

P-98

DB Trust Company National Association

P-4350

P-13.25

DB UK Bank Limited

P-4348

P-13.14

Deutsche Asia Pacific Holdings Pte Ltd

P-15.30 P-13.6

Deutsche Bank (Malaysia) Berhad

P-15.41,

P-4382

P-4336

Deutsche Bank (Suisse) SA

P-15.20

P-4386

Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi-Minh P-15.11 P-13.18

City

Deutsche Bank Aktiengesellschaft, Filiale Hong Kong

P-92

P-13.2 Deutsche Bank Aktiengesellschaft, Filiale Jakarta

P-93

P-13.3 Deutsche Bank Aktiengesellschaft, Filiale Labuan

P-4338

P-13.20 Deutsche Bank Aktiengesellschaft, Filiale London P-15.14 P-13.4 Deutsche Bank Aktiengesellschaft, Filiale Mumbai

P-94

P-13.17 Deutsche Bank Aktiengesellschaft, Filiale New York P-15, P-97;

P-15.13

P-4384

Deutsche Bank Aktiengesellschaft, Filiale Singapore P-15.10 P-13.15 Deutsche Bank Aktiengesellschaft, Filiale Taipei

P-95

P-4393

Deutsche Bank Americas Holding Corp

P-4322

P-13.22 Deutsche Securities Inc.

P-15.19, P-13.5

P-96

93 Answer to Q-59 of Judicial Affidavit of Ms. Rachel M. Concepcion, Exhibit "P-29", Docket (Vol. !), pp. 137-138.

-~

CIA Case Nos. 8720, 8736, 8754 and 8767

IL Exceptions:

I

I

a. Not supported by BOTH SEC Certificate of non-registration AND Certificate of

Registration I

Articles of Incorporation I Association

AO DB Securities (Kazakhstan)

P-4325

None

Bankers International Corporation

P-4328,

None

P-4345

Bankers Trust (Delaware)

None

P-4390

DB AG Vienna Branch

P-4349

None

DB Alternative Trading Inc.

P-4346

None

DB Consortium S. Cons. A.R.L. in Liquidazione P-15.42

None

DB Consorzio S. Cons. A.R.L.

P-4332

None

DB Energy Trading LLC

P-4329

None

DB Finance Inc.

P-4333

None

DB Investment Partners Inc.

P-4327

None

DB Mortgage Services LLC

P-4356

None

DB Securities Services NJ Inc.

P-4330

None

DB Services New Jersey, Inc.

P-15.36

None

DB Trust Company Limited Japan

P-90

None

DB Trust Company New Jersey Ltd

P-4354

None

DBOI Global Services Private Limited

P-15.39

None

Deutsche Asset Management Asia Limited

P-4335

None

Deutsche Asset Management Korea Company Limited

P-4326

None

Deutsche Bank Europe GMBH Filiale Belgien

P-4357

None

Deutsche Bank (China) Co. Ltd., Beijing Branch P-15.22

None

Deutsche Bank (China) Co. Ltd., Guangzhou Branch P-15.23

None

Deutsche Bank (China) Co. Ltd., Shanghai Branch P-15.24

None

Deutsche Bank AG

None

P-13.8 Deutsche Bank Aktiengesellschaft, Asia Pacific Head P-15.9

None

Office

Deutsche Bank Aktiengesellschaft, Filiale Abu Dhabi

P-4337

None

Deutsche Bank Aktiengesellschaft, Filiale Dubai (DIFC) P-15.4

None

Deutsche Bank Aktiengesellschaft, Filiale Prag P-15.17

None

Deutsche Bank Aktiengesellschaft, Filiale Riad P-15.3

None

Deutsche Bank Aktiengesellschaft, Filiale Tokyo P-15.15

None

Deutsche Bank Aktiengesellschaft, Filiale Vienna P-15.8

None

Deutsche Bank Aktiengesellschaft, Frankfurt (Main)

None

P-13.1 Deutsche Bank Aktiengesellschaft, Inlandsbank P-15.1

None

Deutsche Bank Aktiengesellschaft, Inlandsbank Filiale

P-4319

None

Johannesburg South Africa

Deutsche Bank Anonim Sirketi

None

P-99

Deutsche Bank Berkshire Mortgage Inc.

P-4355

None

Deutsche Bank International Limited

P-4339

None

Deutsche Bank National Trust Company

P-15.37,

None

P-4340

Deutsche Bank Netherlands N.V.

P-4331

None

Deutsche Bank PBC Spolka Akcyjna

P-15.33

None

Deutsche Bank PGK AG

P-4341

None

Deutsche Bank Polska Spolka Alcyjna

P-4343

None

.

.

Deutsche Bank Real Estate (Japan) Y.K. Deutsche Bank Securities Inc.

Deutsche Bank Trust Company Americas

Deutsche Bank Trust Company Delaware

Deutsche Group Services pty Limited Deutsche Investment Management Americas Inc. Deutsche Securities Korea Co.

DKS TOV FAS Asset Management Americas

Gemini Technology Services, Inc.

Global Markets Centre Private Limited

Licorne Gestion

Mortgageit Inc.

PT Deutsche Securities Indonesia

RREEF Management L.L.C.

Rued Blass and CIE AG

P-15.28

None

P-15.29

None

P-15.35

None

P-4344

None

P-15.32

None

P-4323

None

P-15.34

None

P-4347

None

P-4351

None

P-15.40

None

P-15.5

None

P-4353

None

P-15.31

None

P-4324

None

P-4342

None

b. Company Registration documents (Certificate of Registration 1 Articles of Incorporation I Association) are written in Foreign language and unaccompanied by English translation.

Banco Comercial Transatlantico

P-4358

P-100

Deutsche Bank Aktiengesellschaft, Filiale Amsterdam P-15.2

P-4392

Deutsche Bank Aktiengesellschaft, Filiale Bangkok

P-91

P-13.16 Deutsche Bank Aktiengesellschaft, Filiale Frankfurt A.M. P-15.7 P-13.13

Zurich Branch

Deutsche Bank Aktiengesellschaft, Filiale Paris P-15.16 P-13.24 Deutsche Bank Aktiengesellschaft, Filiale Seoul P-15.12 P-13.19 Deutsche Bank Luxembourg S.A.

P-15.18 P-13.26

Deutsche Bank Sociedad Anonima Espanola

P-15.6 P-13.12

Deutsche Bank Societa Per Azioni

P-15.21 P-13.28

DWS Holding and Service GMBH

P-15.25 P-13.29

DWS Investment SA

P-4321

P-13.21

000 Deutsche Bank

P-4320

P-13.11

RREEFF Management GM~ _

_ __ P-15.26 L_ P-13.30 __ - -- - - - Consequently, only the entities under Item I of the preceding table that shall be considered as non-resident foreign corporations doing business outside the Philippines as they were able to submit the above-stated documentary requirements. Corollary to the second requisite, Sections 113(A) (2), (B) (1),

(2) (c) and (3) of the NIRC of 1997, as amended, as implemented by Sections 4.113-1(A)(2), 6(1) and (2)(c) of Revenue Regulations (RR) No. 16-05 provide that a VAT taxpayer, like herein petitioner, shall for every lease of goods or properties, and for every sale, barter or exchange of services, issue a VAT official receipt which must contain the following information: p

"SEC. 113. Invoicing and Accounting Requirements !'or VAT-registered Persons.- "(A) Invoicing Requirements. - A VAT-registered person shall issue:

XXX

XXX

XXX

"(2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services "(B)

Information Contained in the VAT Invoice or VAT

Official Receipt -

The following information shall be indicated in the VAT invoice or VAT official receipt: "(1) A statement that the seller is a VAT-registered person, followed by his Taxpayer's Identification Number (TIN); "(2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax: Provided, That:

XXX

XXX

XXX

"(c) If the sale is subject to zero percent (0%) value- added tax, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt;

XXX

XXX

XXX

"(3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; and xxx" (underlining supplied) SEC. 4.113-1.

Invoicing Requirements. - (A) A VAT-registered person shall issue:-

XXX

XXX

XXX

(2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. Only VAT-registered persons are required to print their TIN followed by the word "VAT" in their invoice or official receipts. Said documents shall be considered as a "VAT Invoice" or VAT official receipt. All purchases covered by invoices/receipts other than VAT Invoice/VAT Official Receipt shall not give rise to any input tax. Jz-

VAT invoice/official receipt shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of his accounting records. (B) Information contained in VAT invoice or VAT official receipt. - The following information shall be indicated in VAT invoice or VAT official receipt:

(1) A statement that the seller is a VAT-registered person, followed by his TIN;

(2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the VAT; Provided, That:

XXX

XXX

XXX

(c) If the sale is subject to zero percent (0%) VAT, the term "zero-rated sale" shall be written or printed prominently on the invoice or receipt; (underlining supplied) Pursuant to the foregoing provisions, the foreign currency remittances referred to under Section 108(8) (2) of the NIRC of 1997, as amended, must likewise be supported by VAT zero-rated official receipts.

To prove that petitioner rendered services to its non-resident foreign clients/affiliates and was paid in Euro duly accounted for in accordance with the rules and regulations of the BSP for the four quarters of CY 2012, petitioner presented its Extracted Schedule of Zero-Rated Sales94, Summary List of Sales for the four quarters of CY 201295, and the related official receipts with attached sales invoices96 and bank inward remittances.97 Upon scrutiny of the documents submitted, together with the report98 of the Court-commissioned Independent Certified Public

Accountant

(ICPA),99 the

Court

finds that, out of the P7,088,991,662.84100 zero-rated sales declared per Quarterly VAT 94 Annexes 1, 1-a, 1-b, 1-c and 1-d of Exhibit "P-31" (!CPA Report). 95 Exhibits "P-10", "P-10-a", "P-10-b", and "P-10-c", Docket (Vol. III), pp. 1870-1873. %Exhibits "P-101" to "P-978".

97 Exhibits "P-17" to "P-17-c", Docket (Vol. IV), pp. 3038-3068. 98 Exhibit "P-31".

99 Constantino Guadalquiver & Co., through its Partner, Ms. Katherine 0. Constantino. 100 Sum of Petitioner's Zero-rated Sales declared per Quarterly VAT Returns for the Four Quarters

of CY 2012·

--- Docket, Vol. Ill, lstOuarter 2nd Quarter 3rd Ouarter 4th Ouarter

Total

_j)p. 1830-1861

(Exhibit "P-5}

(Exhibit "P-6-a'?

(Exhibit "P-7-a"J

(Exhibit "P-8")

Vatable Sales

p 11,375,149.50 p 10,894,416.33 p 12,360,688.08 p 11,043,740.17 p __ 45,673,994.08 J<_..

Returns for the four quarters of CY 2012, only the amount of P4,825,937,556.72 (equivalent to €88,848,985.45), as detailed below, qualifies for VAT zero-rating under Section 108(8)(2) of the NIRC of 1997, as amended:

Amount

Collected in

Euro as

Exhibit

Bank

reflected in

Reference

Customer's Name

related

Peso

O.R.

No.

of

Invoices

Equivalent

No.

of

Inward

attached O.R.

Remittance to the Official

Receipts (O.R.)

FIRST QUARTER OF CY 2012

Deutsche Bank Aktiengesellschaft, Filiale New York € 14,479.12 p 5,069,273.24 1984

P-101

02RS01030098

Deutsche Bank Aktiengese/lschaft, Filiale New York 74,156.64 Deutsche Bank Aktiengese/lschaft, Filiale London 15,062.45 902,960.09 1985

P-102

02RS01030094

Deutsche Bank Aktiengesellschaft, Filiale London 817.51 Deutsche Bank Aktiengese/lschaft, Filiale Singapur 381,764.80 21,715,266.67 1986

P-103

02RS01050058

Deutsche Bank Aktiengesellschaft, Filiale Singapur 13,629.34 775,254.17 1987

P-104

02R501060061

Deutsche Bank Aktiengesellschaft, Filiale Hongkong 1,824.14 103,759.40 1988

P-105

02RS01060060

Deutsche Securities Inc.

11,816.11 Deutsche Securities Inc.

11,539.13 4,864,476.02 1991

P-108

02RS01100075

Deutsche Securities Inc.

(9,916.72) Deutsche Securities Inc.

73,252.58 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 200,435.11 11,228,833.86 1999

P-115

02RS01120074

Deutsche Bank Aktiengese/lschaft, Filiale Hongkong 108,578.71 6,082,827.98 2000

P-116

02RS01120073

Deutsche Bank Aktiengese/lschaft, Filiale London 1,727,976.22 97,212,710.82 2001

P-117

02RS01120217

DB International (Asia) Limited

24,100.81

DB International (Asia) Limited

24,100.78 6,158,031.78 2002

P-118

02R501130053

DB International (Asia) Limited

24,100.78

DB International (Asia) Limited

37,157.93 Deutsche Bank Aktiengese/lschaft, Filiale Singapur 532,697.64 29,968,573.08 2003

P-119

02RS01130071

Deutsche Asia Pacific Holdings pte Ltd 10,238.12 Deutsche Asia Pacific Holdings pte Ltd 10,238.10 1,707,929.04 2020

P-136

02RS01160079

Deutsche Asia Pacific Holdings pte Ltd 10,238.10 Deutsche Securities Inc.

137,416.19 Deutsche Securities Inc.

112,004.27 Deutsche Securities Inc.

21,361.58 Deutsche Securities Inc.

132,918.50 Deutsche Securities Inc.

12,479.94 46,362,000.41 2021

P-137

02RS01160083

Deutsche Securities Inc.

137,072.13 Deutsche Securities Inc.

137,935.53 Deutsche Securities Inc.

4,621.34 Deutsche Securities Inc.

137,935.53 Deutsche Bank Aktiengese/lschaft, Filiale New York 600,618.04 34,714,467.68 2023

P-139

02RS01180122

Zero-Rated Sales

1 357 072 819.34 2 216 508 365.74 1 562 760 446.83 1 952 650 030.93 7 088 991 662.84

Total Sales

P1 368 44 7 968.84 P2 227 402 782.07 P1 575 121134.91 P1 963 693 771.10 p 7 134 665 656.92 _,

Deutsche Bank Aktiengesellschaft, Filiale New York 20,444.00 Deutsche Securities Inc 668,088.40 37,343,021.59 2023 Deutsche Securities Inc 220.26 12,311.51 2028

P-143 | 02RS01180122

P-144 | 02RS01200053

P-152 | 02RS01240021

P-156 | 02RS01240276

2043 P-157 | 02RS01250130

Deutsche Bank Aktiengesellschaft, Filiate London 2,112,076.33 Deutsche Bank Aktiengeselischaft, Filiale London 62,075.95 133,761,202.86 2036

Fil

Deutsche Bank Aktiengesellschaft, Filiale London 217,674.72 DB HedgeWorks, LLC 169.70 9,543.45 Deutsche Bank Aktiengesellschaft, Filiale New York 15,684.83 ~ 2,407,991.85 2042 #

Fil

Deutsche Bank Aktiengesellschaft, Filiale New York 27,133.65 Deutsche Bank Americas Holding Corp 36.96 2,078.53 ?

é Deutsche Bank Aktiengesellschaft, Filiale London 17,714.60 Deutsche Bank Aktiengesellschaft, Filiale London 48,043.40 10,355,652.60 f Deutsche Bank Aktiengeselischaft, Filiale London 753.39 Deutsche Bank Aktiengesellschaft, Filiale London 17,423.71

P-174 02RS02070041

Deutsche Bank Aktiengesellschaft, Filiale London 12,850.40 .

« ‘a / Deutsche Bank Aktiengesellschaft, Filiate Singapur 3,497.00 194,753.42 2060 t Deutsche Bank Aktiengesellschaft, Filiale Singapur 192,236.68 10,705,962.53 2067 P-178 | 02RS02070045 Deutsche Bank Aktiengesellschaft, Filiale Singapur 3,497.00 195,009.30 2068 P-180 | 02RS02070044 Deutsche Bank Aktiengesellschaft, Filiale Singapur 131.76 7,337.92 2069 P-181 | 02RS02070043 Deutsche Bank Aktiengesellschaft, Filiale Singapur 1,136.33 63,284.00 P-182 | 02RS02070042 Deutsche Bank (Malaysia) Berhad 23,562.61 - 2,724,576.10 P-185 | 02RS02100101 Deutsche Bank (Malaysia) Berhad 24,856.05 Deutsche Bank (Malaysia) Berhad 24,856.01 - 2,797,355.02 2075 P-186 | 02RS02100102 Deutsche Bank (Malaysia) Berhad 24,856.01 Deutsche Bank (Malaysia) Berhad 35,672.90 2,012,421.30 2076 P-187 ; 02RS02100103 Deutsche Bank Aktiengesellschaft, Filiale London 8,973.19 504,932.17 2078 P-188 | 02RS02100190 Deutsche Bank Aktiengesellschaft, Filiale London 43.49 2,446.24 2081 P-192 | 02RS02130222 ,607,309. P-198 | 02RS02140168 . P-203 | 02RS02150217 2070 2074 Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi- 2093

P-207 | 02RS02150243

P-209 | 02RS02170089

P-210 | 02RS02170088

P-211 | 02RS02170087

Meters Bank Aktiengesellschaft, Filiale Ho-Chi- 4,591.33 258,390.90 2094 Deutsche Bank Aktiengesellschaft, Filiale London 3,715.71 208,567.63 2096 Deutsche Bank Aktiengesellschaft, Filiale New York 4,347.07 370,646.76 Deutsche Bank Aktiengesellschaft, Filiale New York 2,256.14 ‘ 2097 Deutsche Bank Aktiengeselischaft, Filiale Singapur 332,122.23 18,594,723.24 2100 Deutsche Bank Aktiengesellschaft, Filiale Singapur 3,497.00 195,788.60 2101 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 144,852.60 8,109,947.98 2102 Deutsche Bank Aktiengesellschaft, Filiale New York 8,477.94 ; : 476,191.36 2103 P-212 | 02RS02170128 Deutsche Bank Aktiengesellschaft, Filiale New York 10.18 Deutsche Bank (Suisse) SA 8,127.40 456,492.25 2110 02RS02200236

Deutsche Bank (Malaysia) Berhad

| 27,806.56 | 806.56 ; : 3,140,911.68 2118 P-227 {| 02RS02220099 Deutsche Bank (Malaysia) Berhad 27,806.56 /

Deutsche Bank Aktiengesellschaft, Filiale Singapur 303,537.28 Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi- 5,322.54

Minh-City

Deutsche Bank Aktiengesellschaft, Filiale London 882.35 Deutsche Bank Aktiengesellschaft, Filiale London 6,069.95 Deutsche Bank Aktiengesellschaft, Filiale London 2,171.99

Deutsche Bank (Malaysia) Berhad

7,027.56

Deutsche Bank (Malaysia) Berhad

7,027.56

Deutsche Bank (Malaysia) Berhad

7,602.57

Deutsche Bank (Malaysia) Berhad

2,964.38

Deutsche Bank (Malaysia) Berhad

11,244.41

Deutsche Bank (Malaysia) Berhad

10,505.45

Deutsche Bank (Malaysia) Berhad

5,817.39 Deutsche Bank Aktiengesellschaft, Filiale New York 648,299.74 Deutsche Bank Aktiengesellschaft, Filiale New York 648,299.74 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 144,852.60 Deutsche Bank Aktiengesellschaft, Filiale Singapur 162,929.91

Deutsche Bank (Suisse) SA

8,862.46 Deutsche Bank Aktiengesellschaft, Filiale Singapur 539.39 Deutsche Bank Aktiengesellschaft, Filiale Singapur 3,497.00 Deutsche Bank Aktiengesellschaft, Filiale Singapur 251,704.31 Deutsche Bank Aktiengesellschaft, Filiale London 1,730,847.14 Deutsche Bank Aktiengesellschaft, Filiale London (35.58) Deutsche Bank Aktiengesellschaft, Filiale London 97,332.80 Deutsche Bank Aktiengesellschaft, Filiale New York 905.06 Deutsche Bank Aktiengesellschaft, Filiale London 653.77 Deutsche Bank Aktiengesellschaft, Filiale Singapur 162,929.91 Deutsche Bank Aktiengesellschaft, Filiale New York 8,441.98

Deutsche Bank (Malaysia) Berhad

27,806.56 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 34,030.09 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 403,667.12 Deutsche Bank Aktiengesellschaft, Filiale Hong kong (7,390.10) Deutsche Bank Aktiengesellschaft, Filiale Hong kong 407,369.10 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 15,670.40 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 429,085.06 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 7,862.42 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 29,484.11 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 282,852.65 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 18,205.48 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 17,371.97 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 425,588.21 Deutsche Bank Aktiengesellschaft, Filiale Hongkong (6,705.05)

Deutsche Bank Aktienqesellschaft Filiale Honqkonq

(2 864.04) Total for the 1st Quarter of CY 2012 €17,110,502.91

SECOND QUARTER OF CY 2012

Deutsche Bank Aktiengesellschaft, Filiale London € 956,899.92 Deutsche Bank Aktiengesellschaft, Filiale London 2,152,088.66 Deutsche Bank Aktiengesellschaft, Filiale London 1,550,608.15 Deutsche Bank Aktiengesellschaft, Filiale London 6,941.77 17,031,734.79 2172

P-268

02RS03150068

303,407.35 2120

P-229

02RS02220151

515,320.65 2121

P-230

02RS0222014 7

405,913.77 2124

P-233

02RS02240091

2,608,555.45 2125

P-234

02R502240143

72,970,583.08 2152

P-253

02RS03080114

8,127,802.51 2173

P-269

02RS03160066

9,172,419.53 2175

P-271

02RS03190008

496,995.24 2162

P-263

02RS03130108

30,248.29 2168

P-267

02RS03130064

196,219.64 2171

P-252

02RS03150067

14,170,127.06 2174

P-270

02RS03190018

103,092,296.27 2178

P-274

02RS03160115

51,489.91 2180

P-276

02RS03200011

37,178.67 2192

P-287

02RS03230163

9,122,053.00 2099

P-208

02RS02170090

483,599.58 2196

P-291

02RS03260189

1,592,901.30 2198

P-293

02RS03270127

24,697,696.04 2199

P-294

02RS03280121

51,051,646.84 2200

P-295

02RS03280123

42,318,470.58 2201

P-296

02RS02170126

,. 963,228,031.37 !' 269,108,300.20 2213

P-307

02RS04020192

A

Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale New York Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale Singapur Deutsche Bank Aktiengesellschaft, Filiale Singapur Deutsche Bank Aktiengesellschaft, Filiale Singapur Deutsche Bank Aktiengesellschaft, Filiale Singapur Deutsche Bank Aktiengesellschaft, Filiale New York Deutsche Bank Aktiengesellschaft, Filiale Singapur Deutsche Bank Aktiengesellschaft, Filiale Singapur Deutsche Bank Aktiengesellschaft, Filiale Hongkong Deutsche Bank Aktiengesellschaft, Filiale London

DB International (Asia) Limited

DB International (Asia) Limited

DB International (Asia) Limited

Deutsche Bank Aktiengesellschaft, Filiale Hongkong Deutsche Bank Aktiengesellschaft, Filiale New York Deutsche Bank Aktiengesellschaft, Filiale New York Deutsche Bank Aktiengesellschaft, Filiale New York Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale London

Deutsche Bank (Suisse) SA

Deutsche Bank Aktiengesellschaft, Filiale New York Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale New York

Deutsche Bank (Malaysia) Berhad

Deutsche Bank Aktiengesellschaft, Filiale New York Deutsche Bank Aktiengeselischaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale Singapur Deutsche Bank Aktiengesellschaft, Filiale Singapur

Deutsche Bank (Malaysia) Berhad

Deutsche Bank Aktiengesellschaft, Fitiale Singapur Deutsche Bank Aktiengesellschaft, Filiale Singapur Deutsche Bank Aktiengesellschaft, Filiale Singapur Deutsche Bank Aktiengesellschaft, Filiale Singapur Deutsche Bank Aktiengesellschaft, Filiale Hongkong Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale Jakarta Deutsche Bank Aktiengesellschaft, Filiale Jakarta Deutsche Bank Aktiengesellschaft, Filiale Jakarta Deutsche Bank Aktiengesellschaft, Filiale Jakarta Deutsche Bank Aktiengesellschaft, Filiale Jakarta 58,047.36 790.71 61,388.64 1,588.42 2,813.96 631.77 162,929.91 (10,266.26) 44,617.97 1,022.02 653.77 428.71 111,971.25 144,852.60 711,521.01 23,208.28 23,208.28 23,208.28 45.44 648,299.74 134,365.50 32.71 1,531,114.07 1,104,257.95 28.55 2,972.95 8,862.46 925.34 1,571,362.53 3.95 19,358.73 27,714.24 83,506.86 917,036.41 2,106.96 3,128.48 27,714.24 40,309.65 172,497.74 317,615.30 115,316.64 149,993.37 101,170.19 3,558.82 7,923.27 7,923.28 9,033.02 7,923.27 9,033.02 44,636.42 3,749,636.90 9,122,602.08 1,923,385.22 37,919,516.10 3,873,301.56 2,527.87 43,839,264.39 147,776,488.13 496,390.37 52,040.95 88,373,352.28 434,423.15 434,423.70 195,971.48 2341 i 495,269.38 495,269.38 2215 2216 2250 2251 2253 2254 2259 2260 2264 2447 2267 2268 2273 2276 2277 2285 2288 2293 2301 2302 2306 2307 2450 2316 2317 2318 2322 2326 2339 2342 2343 2344 2345 2346

P-310

PMs |

P.

P.

Ea

P-364

~

P-

P.

P-376

P-429

02RS04030277

02RS04030274

02RS04100035

02RS04100037

02RS04100021

02RS04040129

02RS04120083

02RS04120084

02RS04130090

02RS06250244

02RS04130098

02RS04130094

02RS04170186

02RS04170159

02RS04180058

02RS04230217

02RS04230175

02RS04250001

02RS04240136

02RS05020208

02RS05020211

02RS04180093

02RS04180094

02RS06260109

02RS05040092

02RS05040093

02RS05040094

02RS05040099

02RS05070198

02RS05090122

02RS05110231

02RS05150120

02RS05150121

02RS05150122

02RS05150123

P-432 } 02RS05150124

Deutsche Bank Aktiengesellschaft, Filiale Jakarta 8,962.36 Deutsche Bank Aktiengesellschaft, Filiale Jakarta 9,033.02 Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi- 4,586.97

Minh-qty

Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi- 4,885.86

Minh-City

Deutsche Asia Pacific Holdings pte Ltd 11,438.74 Deutsche Asia Pacific Holdings pte Ltd 11,438.74 Deutsche Asia Pacific Holdings pte Ltd 11,438.74 Deutsche Asia Pacific Holdings pte Ltd 11,862.94 Deutsche Bank Aktiengesellschaft, Filiale London 1,091,865.98 Deutsche Securities Inc.

714,708.58 Deutsche Securities Inc.

4,246.94 Deutsche Securities Inc.

411,570.27 Deutsche Securities Inc.

7,133.95 Deutsche Securities Inc.

415,742.13 Deutsche Securities Inc.

9,042.98 Deutsche Securities Inc.

465,717.65 Deutsche Securities Inc.

8,619.81

Deutsche Bank (Suisse) SA

8,763.95

Deutsche Bank (Suisse) SA

8,763.95

Deutsche Bank (Malaysia) Berhad

27,714.24 Deutsche Bank Aktiengesellschaft, Filiale London 113,146.06 Deutsche Bank Aktiengesellschaft, Filiale London 3,376.92 Deutsche Bank Aktiengesellschaft, Filiale London 14,188.35 Deutsche Bank Aktiengesellschaft, Filiale London 3,873.89 Deutsche Bank Aktiengesellschaft, Filiale London 5,707.94 Deutsche Bank Aktiengesellschaft, Filiale New York 44,727.69

Deutsche Bank Americas Holding Corp

109.50 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 430,831.08 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 7,862.42 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 364,243.28 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 7,952.09 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 4,223.75 Deutsche Bank Aktiengesellschaft, Filiale London 297,061.60 Deutsche Bank Aktiengesellschaft, Filiale London 1,911,125.34

Deutsche Bank (Malaysia) Berhad

2,577.75 Deutsche Bank Aktiengesellschaft, Filiale London 1,786,467.48 Deutsche Bank Aktiengesellschaft, Filiale London 947.69 Deutsche Bank Aktiengesellschaft, Filiale London 293,700.85 Deutsche Bank Aktiengesellschaft, Filiale London 613,602.46 Deutsche Bank Aktiengesellschaft, Filiale London 1,092,109.62 Deutsche Bank Aktiengesellschaft, Filiale London 39,812.00

Deutsche Bank (Malaysia) Berhad

7,133.⁴³

Deutsche Bank (Malaysia) Berhad

7,111.76

Deutsche Bank (Malaysia) Berhad

7,192.46

Deutsche Bank (Malaysia) Berhad

7,111.76 Deutsche Bank Aktiengesellschaft, Filiale New York 17,071.06 Deutsche Bank Aktiengesellschaft, Filiale New York 2,474.12 Deutsche Bank Aktiengesellschaft, Filiale New York 652,330.61 491,395.18 2347

P-433

02RS05150125

495,269.38 2348

P-434

02RS05150126

250,520.21 2354

P-438

02RS05170003

266,844.28 2356

P-440

02RS05160179

2,529,452.41 2357

P-441

02RS05160103

59,632,937.47 2361

P-444

02RS05170211

111,774,050.78 2365

P-448

02RS05100079

480,945.94 2366

P-449

02RS05180110

480,945.94 2367

P-450

02RS05180111

1,521,557.23 2378

P-461

02RS05230123

7,702,324.56 2382

P-462

02RS05230170

2,455,623.54 2383

P-466

02RS05230176

6,011.73 44,751,019.64 2384

P-467

02RS05240045

02RS05240184

121,682,251.74 2389

P-472

02RS05240184

142,047.04 2391

P-474

02RS05250111

210,867,194.05 382,143.48 2398

P-481

02RS05310101

380,982.60 2399

P-182

02RS05310102

385,305.76 2400

P-484

02RS05310103

380,982.60 2401

P-483

02RS05310104

38,392,272.19 2404

P-487

02RS06010170

~

Deutsche Bank Aktiengesellschaft, Filiale New York 44,788.50 Deutsche Bank Aktiengesellschaft, Filiale Singapur 2,427.47 Deutsche Bank Aktiengesellschaft, Filiale Singapur 3,583.41 Deutsche Bank Aktiengesellschaft, Filiale Singapur 35,830.80 Deutsche Bank Aktiengesellschaft, Filiale Singapur 3,504.66 Deutsche Bank Aktiengesellschaft, Filiale Singapur 961.46 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 149,993.37 Deutsche Bank Aktiengesellschaft, Filiale Singapur 172,497.74 Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi- 4,760.98

Minh-City

Deutsche Securities Inc.

31,785.35 Deutsche Securities Inc.

10,941.40 Deutsche Bank Aktiengesellschaft, Filiale London 1,763,885.83 Deutsche Bank Aktiengesellschaft, Filiale London 3.95 Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi- 4,760.98

Minh-City

Deutsche Bank (Malaysia) Berhad

3,870.91

Deutsche Bank (Malaysia) Berhad

6,847.30

Deutsche Bank (Malaysia) Berhad

7,302.85

Deutsche Bank (Malaysia) Berhad

4,381.37

Deutsche Bank (Malaysia) Berhad

4,349.70

Deutsche Bank (Malaysia) Berhad

4,349.70

Deutsche Bank (Malaysia) Berhad

4,436.11

Deutsche Bank (Malaysia) Berhad

4,451.31 Deutsche Bank Aktiengesellschaft, Filiale London 139,730.36 Deutsche Bank Aktiengesellschaft, Filiale London 8,957.70 Total for the 2nd Quarter of CY 2012 €26,458,303.83

THIRD QUARTER OF CY 2012

Deutsche Bank Aktiengesellschaft, Filiale London € 109,303.66 Deutsche Bank Aktiengesellschaft, Filiale London 605,630.11 Deutsche Bank Aktiengesellschaft, Filiale London 33,176.66 Deutsche Bank Aktiengesellschaft, Filiale New York 652,330.61 Deutsche Bank Aktiengesellschaft, Filiale New York 44,788.50 Deutsche Bank Aktiengesellschaft, Filiale New York 44,788.50 Deutsche Bank Aktiengesellschaft, Filiale New York (652,330.61) Deutsche Bank Aktiengesellschaft, Filiale New York (⁴⁴,788.50) Deutsche Bank Aktiengesellschaft, Filiale New York 17,973.54 Deutsche Bank Aktiengesellschaft, Filiale New York 1,039.35 Deutsche Bank Aktiengesellschaft, Filiale New York 43,198.80

Deutsche Bank Americas Holding Corp

66.80

Deutsche Bank Americas Holding Corp

62.06 Deutsche Bank Aktiengesellschaft, Filiale London 39,812.00 Deutsche Bank Aktiengesellschaft, Filiale London 1,091,680.73 Deutsche Bank Aktiengesellschaft, Filiale New York 652,330.61 Deutsche Bank Aktiengesellschaft, Filiale Singapur 111,934.90 Deutsche Bank Aktiengesellschaft, Filiale Singapur 3,317.67 Deutsche Bank Aktiengesellschaft, Filiale Singapur 44,887.65 Deutsche Bank Aktiengesellschaft, Filiale Singapur 30,449.86 Deutsche Bank Aktiengesellschaft, Filiale Singapur 412,477.34 130,041.49 2405

P-488

02RS06040159

193,699.94 2407

P-490

02RS06050096

1,936,820.99 2408

P-491

02RS06040164

189,443.13 2409

P-492

02RS06040165

51,971.37 2410

P-493

02RS06040166

8,107,837.62 2411

P-494

02RS06040300

9,324,303.24 2412

P-495

02RS06050135

257,766.27 2414

P-496

56RH06110046

2,313,287.34 2415

P-497

02RS06110072

94,091,983.92 2416

P-498

02RS06130024

254,174.73 2422

P-504

56RH06150036

1,198,177.39 2425

P-507

02RS06150134

2426

P-508

02RS06150133

940,618.05 7,498,997.26 2438

P-520

02RS06200156

477,388.08 2444

P-525

02RS06250005

P1,465,271,326.41 p 39,271,451.05 2460

P-563

02RS07020288

5,616,927.04 2461

P-564

02RS07020292

6,764.⁴⁵ 59,543,933.67 2463

P-534

02RS07030128

34,328,396.06 2464

P-535

02RS07030123

5,890,487.92 2468

P-539

02RS07040073

174,589.83 2469

P-540

02RS07040074

2,362,178.02 2470

P-541

02RS07040075

1,602,400.44 2472

P-543

02RS07040072

21,706,302.41 2474

P-545

02RS07040078 .

Deutsche Bank Aktiengesellschaft, Filiale Singapur 390,676.77 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 347,057.90 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 7,861.06 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 141,194.30

DB International (Asia) Limited

23,810.37

DB International (Asia) Limited

23,810.37

DB International (Asia) Limited

23,810.37 Deutsche Bank Aktiengesellschaft, Filiale London 604,644.76

Deutsche Bank (Suisse) SA

8,763.95 Deutsche Securities Inc.

4,675.39 Deutsche Securities Inc.

3,571.09 Deutsche Securities Inc.

120,883.84 Deutsche Securities Inc.

120,852.58 Deutsche Securities Inc.

3,170.03 Deutsche Securities Inc.

120,852.58 Deutsche Securities Inc.

210,462.93 Deutsche Securities Inc.

148,351.67 Deutsche Securities Inc.

148,351.67 Deutsche Securities Inc.

148,351.67 Deutsche Securities Inc.

846.⁴⁶ Deutsche Bank Aktiengesellschaft, Filiale Singapur 172,497.74 Deutsche Bank Aktiengesellschaft, Filiale Singapur 35,830.80 Deutsche Bank Aktiengesellschaft, Filiale Singapur 328,842.63 Deutsche Bank Aktiengesellschaft, Filiale Singapur ( 41,735. 79) Deutsche Bank Aktiengesellschaft, Filiale Singapur 3,649.43 Deutsche Bank Aktiengesellschaft, Filiale London 124,278.00 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 149,993.38 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 4,664.11 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 7,801.02 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 5,918.01 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 5,918.01 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 5,918.02 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 5,918.01 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 5,219.18 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 5,670.23 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 5,670.23 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 10,374.61 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 10,374.58 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 10,374.58 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 10,389.15 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 10,389.15 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 10,389.15 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 10,332.14 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 10,332.14 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 10,320.91 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 6,581.35 Deutsche Bank Aktiengesellschaft, Filiale Mumbai (3,106.39) Deutsche Bank Aktiengesellschaft, Filiale Mumbai 3,317.67 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 73.73 20,559,064.20 2475

P-546

02RS07040076

26,107,578.30 2476

P-547

02RS07040165

3,728,855.38 2477

P-548

02R507040228

31,294,550.⁴⁷ 2486

P-557

02RS07060223

451,344.04 2491

P-588

02RS07090202

53,064,122.49 2493

P-590

02RS07100091

8,872,678.28 2501

P-570

02RS07120037

1,843,010.59 2502

P-571

02RS07120038

14,703,746.15 2508

P-577

02RS07120131

186,900.08 2509

P-578

02R507120126

6,364,711.35 2514

P-583

02RS07130254

7,681,685.97 2516

P-584

02RS07160109

6,940,972.23 2518

P-586

02RS07170001

2,313,838.20 2519

P-591

02RS07170008

Deutsche Bank Aktiengesellschaft, Filiate Mumbai 6,561.61 Deutsche Bank Aktiengesellschaft, Filiate Mumbai 4,565.95 Deutsche Bank Aktiengesellschaft, Filiate Mumbai 3,317.67 Deutsche Bank Aktiengesellschaft, Filiate Mumbai 3,317.67 Deutsche Bank Aktiengesellschaft, Filiate Mumbai 3,317.67 Deutsche Bank Aktiengesellschaft, Filiate Mumbai 3,317.67 Deutsche Bank Aktiengesellschaft, Filiate Mumbai 3,564.25 Deutsche Bank Aktiengesellschaft, Filiate London 1,543,649.61 Deutsche Bank Aktiengesellschaft, Filiate London 3.95 Deutsche Bank Aktiengesellschaft, Filiate London 117,437.73 Deutsche Bank Aktiengesellschaft, Filiate London 1,076,716.22 Deutsche Bank Aktiengesellschaft, Filiate New York (162,736.21) Deutsche Bank Aktiengesellschaft, Filiate New York 8,957.70 Deutsche Bank Aktiengesellschaft, Filiate New York 17,915.40 Deutsche Bank Aktiengesellschaft, Filiate New York (13,514.89) Deutsche Bank Aktiengesellschaft, Filiate New York 966.23 Deutsche Bank Aktiengesellschaft, Filiate New York 37,569.34 Deutsche Bank Aktiengesellschaft, Filiate New York 10,495.87 Deutsche Bank Aktiengesellschaft, Filiate New York 17,915.40 Deutsche Bank Aktiengesellschaft, Filiate New York 17,915.40 Deutsche Bank Aktiengesellschaft, Filiate New York 23,086.75

Deutsche Bank Americas Holding Corp

76.45 Deutsche Bank Aktiengesellschaft, Filiate Hong kong 191,083.70 Deutsche Bank Aktiengesellschaft, Filiate Hong kong 7,930.20 Deutsche Bank Aktiengesellschaft, Filiate Hongkong (59,761.23) Deutsche Bank Aktiengesellschaft, Filiate He-Chi- 4,760.98

Minh-City

Deutsche Bank (Malaysia) Berhad

27,377.22 Deutsche Bank Aktiengesellschaft, Filiate New York 473,431.07 Deutsche Bank Aktiengesellschaft, Filiate 5ingapur 788.08 Deutsche Bank Aktiengesellschaft, Filiate Singapur 157,949.74 Deutsche Bank Aktiengesellschaft, Filiate 5ingapur 1,994.51 Deutsche Bank Aktiengesellschaft, Filiate 5ingapur 7,488.12 Deutsche Bank Aktiengesellschaft, Filiate 5ingapur 33,591.38 Deutsche Bank Aktiengesellschaft, Filiate 5ingapur 1,108.37

Deutsche Bank (Suisse) SA

8,564.80 Deutsche Bank Aktiengesellschaft, Filiate London 649.28 Deutsche Bank Aktiengesellschaft, Filiate London 1,908.49 Deutsche Bank Aktiengesellschaft, Filiate Hongkong 127,327.37 Deutsche Bank Aktiengesellschaft, Filiate London 33,176.66 Deutsche Bank Aktiengesellschaft, Filiate London 573,203.25 Deutsche Bank Aktiengesellschaft, Filiate London 8,957.70 Deutsche Bank Aktiengesellschaft, Filiate London 1,696,155.47

DB UK Bank Limited

12,036.00 Deutsche Bank Aktiengesellschaft, Filiate New York (6,605.25) Deutsche Bank Aktiengesellschaft, Filiate New York 37,577.80

Deutsche Bank Americas Holding Corp

76.56 Deutsche Bank Aktiengesellschaft, Filiate London 1,038,229.27 Deutsche Bank Aktiengesellschaft, Filiate London 571,053.38 Deutsche Bank Aktiengesellschaft, Filiate London 8,957.70 64,810,099.87 2524

P-596

02R507200184

54,967,127.50 2532

P-603

02R507250166

(2,114,923.71) 2533

P-604

02R507250085

3,902.72 7,171,001.45 2540

P-611

02R507270109

245,173.00 2541

P-612

56RS07300031

1,409,826.36 2545

P-616

02RS07300141

24,293,821.83 2547

P-617

02RS07010200

41,689.80 2553

P-622

02RS08060017

8,355,615.⁴⁸ 2554

P-623

02RS08060018

105,510.52 2555

P-624

02RS08060019

396,125.07 2556

P-625

02R508060011

1,776,999.79 2557

P-626

02R508060015

58,633.29 2558

P-627

02R508060014

453,081.95 2559

P-628

02R508060188

135,307.24 2560

P-629

02RS08060198

6,735,677.72 2562

P-631

02RS08070077

32,551,648.78 2565

P-634

02R508160261

91,375,355.33 2569

P-635

02RS09170170

636,710.06 2573

P-639

02RS08140213

1,641,391.64 2590

P-656

02RS08230191

85,605,675.09 2592

P-658

02RS08230174

)c._.

Deutsche Bank Aktiengesellschaft:, Filiale London 1,484,038.89 Deutsche Bank Aktiengesellschaft:, Filiale London 68,030.10 Deutsche Bank Aktiengesellschaft:, Filiale New York 3,702.59 Deutsche Bank Aktiengesellschaft:, Filiale New York 17,915.40 Deutsche Bank Aktiengesellschaft:, Filiale New York 17,915.40 Deutsche Bank Aktiengesellschaft:, Filiale New York 503,080.02

DB UK Bank Limited

12,062.30 Deutsche Bank Aktiengesellschaft:, Filiale London 39,812.00 Deutsche Bank Aktiengesellschaft:, Filiale Jakarta 8,962.36 Deutsche Bank Aktiengesellschaft:, Filiale Jakarta 8,962.36 Deutsche Bank Aktiengesellschaft:, Filiale Jakarta 14,724.34

Deutsche Bank (Malaysia) Berhad

(2,652.12)

Deutsche Bank (Malaysia) Berhad

4,277.10

Deutsche Bank (Malaysia) Berhad

27,435.07

Deutsche Bank (Malaysia) Berhad

10,394.01

Deutsche Bank (Malaysia) Berhad

9,842.51 Deutsche Bank Aktiengesellschaft:, Filiale London 100,236.03 Deutsche Sank Aktiengesellschaft:, Filiale Hong kong 127,556.94 Deutsche Bank Aktiengesellschaft:, Filiale Singapur 3,649.43 Deutsche Bank Aktiengesellschaft:, Filiale Singapur 82,194.70 Deutsche Bank Aktiengesellschaft:, Filiale Singapur 390,867.09 Deutsche Bank Aktiengesellschaft:, Filiale Singapur 158,182.60 Deutsche Bank Aktiengesellschaft:, Filiale Singapur 17,915.40 Deutsche Bank Aktiengesellschaft:, Filiale Singapur 80,156.62 Deutsche Bank Aktiengesellschaft:, Filiale Singapur 404,667.77 Deutsche Bank Aktiengesellschaft:, Filiale Singapur 3,649.43

Deutsche Bank (Malaysia) Berhad

(1,069.28)

Deutsche Bank (Malaysia) Berhad

4,277.10

Deutsche Bank (Malaysia) Berhad

7,172.76

Deutsche Bank Americas Holding Corp

68.16

Deutsche Bank (Malaysia) Berhad

27,406.15 Deutsche Bank Aktiengesellschaft:, Filiale London 1,072,599.17 Deutsche Bank Aktiengesellschaft:, Filiale London 43,129.66 Deutsche Bank Aktiengesellschaft:, Filiale London 587,177.24 Deutsche Bank Aktiengesellschaft:, Filiale New York 40,118.57 Deutsche Asia Pacific Holdings pte Ltd 11,862.94 Deutsche Asia Pacific Holdings pte Ltd 11,862.94 Deutsche Asia Pacific Holdings pte Ltd 11,334.66 Deutsche Asia Pacific Holdings pte Ltd 11,360.95 Total for the 3rd Quarter of CY 2012 €19,878,833.20

FOURTH QUARTER OF CY 2012

Deutsche Bank Aktiengesellschaft:, Filiale London € 320,883.81 Deutsche Bank Aktiengesellschaft:, Filiale London 29,410.66 Deutsche Bank Aktiengesellschaft:, Filiale London 3,326.64 Deutsche Bank Aktiengesellschaft:, Filiale London 8,957.70

Deutsche Bank Trust Company National Association

44.45 Deutsche Bank Aktiengesellschaft:, Filiale New York 34,209.77 Deutsche Bank Aktiengesellschaft:, Filiale New York 29.63 82,105,179.04 2598

P-661

02RS08280001

28,704,504.41 2599

P-662

02RS08240106

02RS08240096

2,744,174.85 2600

P-663

02RS08240096

1,727,150.63 2601

P-664

02RS08280225

86,318.43 2605

P-668

02RS08280314

1,457,342.41 2606

P-669

02RS08280316

552,126.59 2607

P-670

02RS08280313

522,831.08 2608

P-671

02RS08280311

5,292,497.47 2616

P-677

02RS09030271

6,882,431.65 2621

P-680

02RS09050136

192,950.25 2622

P-681

02RS09060097

4,345,743.93 2623

P-682

02RS09060102

20,646,014.01 2624

P-683

02RS09070042

8,534,862.40 2625

P-684

02RS09070043

966,639.02 2626

P-685

02RS09070044

4,318,200.64 2642

P-698

02RS09180048

21,800,278.29 2643

P-699

02RS09180047

196,602.24 2644

P-700

02RS09180049

172,811.81 2647

P-703

02RS09190075

386,411.21 2648

P-704

02RS09190076

3,671.92 2649

P-705

02RS09190198

1,476,425.21 2659

P-715

02RS09250167

91,810,358.66 2666

P-573

02RS09240222

2,161,269.21 2703

P-690

02RS09170201

2,504,706.77 2711

P-711

02RS09070158

P1,044,863,441.53 p 19,456,675.09 2672

P-863

02RS10010216

28,820,953.81 2673

P-864

02RS10010260

~

Deutsche Bank Aktiengeselischaft, Filiale New York 502,800.06 DB UK Bank Limited 12,049.16 647,856.58 P-867 | 02RS10020244 Deutsche Bank Aktiengeselischaft, Filiale Hongkong 668,961.37 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 7,930.20 Deutsche Bank Aktiengesellschaft, Filiale Hongkong (1,281.72) Deutsche Bank Aktiengesellschaft, Filialke Hongkong 388,273.78 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 7,930.20 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 47,062.52 Deutsche Bank Aktiengesellschaf, Filiale Singapur 8,490,369.42 P-871 | 02RS10040043 Deutsche Bank Aktiengeselischaft, Filiale Singapur 02RS10040045 Deutsche Bank Aktiengeseilschaft, Filiale Hongkong 02RS10040274 Deutsche Securities Inc. 445,452.55 Deutsche Securities Inc. 8,587.75 — 48,840,802.41 2705 P-890 { 02RS10100132 Deutsche Securities Inc. 450,660.31 Deutsche Securities Inc. 8,640.94 Deutsche Securities Inc. 140,000.53 Deutsche Securities Inc. 140,000.53 22,459,522.03 2706 P-891 j 02RS10100134 Deutsche Securities Inc. 140,000.53 ? I .

Deutsche Bank Aktiengeselischaft, Filiale London 3,468.58 - — 849,455.57 2710 P-893 | 02RS$10100301 Deutsche Bank Aktiengeseilschaft, Filiale London 12,395.30 ; .

697.

60,099,346.64 2679 P-870 | 02RS10030194 Deutsche Bank Aktiengesellschaft, Filiale New York p-905 | 02RS10110206 4,151,321.18 02RS10120209 Deutsche Bank Aktiengesellschaft, Filiale New York 41,093.24 02RS10160232 Deutsche Bank Aktiengesellschaft, Fillale London 2,376.16 02RS10160231 Deutsche Bank Aktiengeselischaft, Filiale New York 02RS10220255 Deutsche Bank Aktiengesellschaf, Filiale London Bu] aaesess) 8 | e725 | | — 2,802,858.35 | 2749 | P-725 | 02RS10220244 Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengeselischaft, Filiale Jakarta 56RH10230084 Deutsche Bank Aktiengesellschaft, Filiale Jakarta 56RH10230083 Deutsche Bank Aktiengesellschaft, Filiale Jakarta 56RH10230082 Deutsche Bank Aktiengesellschaft, Filiale Jakarta 56RH10230075 Deutsche Bank Aktiengesellschaft, Filiale New York Deutsche Bank Aktiengesellschaft, Filiale New York ’ 2760 | P-935 | 02RS10250011

Deutsche Bank Americas Holding Corp

Deutsche Bank Aktiengeselischaft, Filiale London 02RS10240173 Deutsche Bank Aktiengesellschaft, Filiale London Deutsche Bank Aktiengesellschaft, Filiale London 77,349.41 1,901,545.14 Deutsche Asia Pacific Holdings Pte Ltd 11,347.80 - - - 1,215,188.68 2766 P-732 | 02RS10250137 Deutsche Asia Pacific Holdings Pte Ltd 11,315.88 DB UK Bank Limited 596,683.28 Deutsche Bank Aktiengeselischaft, Filiale London 2773 | P-737 | 02RS10250180 Deutsche Bank Aktiengesellschaft, Filiale London , Deutsche Bank (Malaysia) Berhad 4,277.10 02RS10290297 ' ; .

Deutsche Bank (Malaysia) Berhad 376,532.96 | 2779 02RS10290296 Deutsche Bank (Malaysia) Berhad 26,585.24 1,417,936.00 | 2780 02RS10290295 Deutsche Bank Aktiengesellschaft, Filiale New York 480,010.39 25,326,529.00 | 2789 | P-748 | 02RS11050024 (871.

(801.

Deutsche Bank Aktiengesellschaft, Filiale New York 02RS11050390 Deutsche Bank Aktiengeselischaft, Filiale Singapur 02RS11070051 Deutsche Bank Aktiengesellschaft, Filiale Singapur 17,915.40 02RS11070049 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 2794 02RS11070050

Deutsche Bank Aktiengesellschaft, Filiale Singapur 4,051.46 Deutsche Bank Aktiengesellschaft, Filiale Singapur 931,822.37 Deutsche Bank Aktiengesellschaft, Filiale Singapur 6,101.79 Deutsche Securities Inc.

37,843.42 Deutsche Securities Inc.

472,270.39 Deutsche Securities Inc.

29,423.81 Deutsche Securities Inc.

433,384.58 Deutsche Securities Inc.

8,486.68 Deutsche Securities Inc.

145,582.12 Deutsche Securities Inc.

375,058.08 Deutsche Securities Inc.

8,567.35 Deutsche Securities Inc.

(56,541.80) Deutsche Securities Inc.

374,959.56 Deutsche Securities Inc.

8,723.83 Deutsche Securities Inc.

(685.83) Deutsche Securities Inc.

427,122.58 Deutsche Securities Inc.

8,558.83 Deutsche Securities Inc.

41,921.78 Deutsche Bank Aktiengesellschaft, Filiale London 1,056,092.31 Deutsche Bank Aktiengesellschaft, Filiale New York 17,915.40 Deutsche Bank Aktiengesellschaft, Filiale New York 17,915.40 Deutsche Bank Aktiengesellschaft, Filiale New York 480,010.39

DB UK Bank Limited

11,210.54 Deutsche Bank Aktiengesellschaft, Filiale London 43,129.66 Deutsche Bank Aktiengesellschaft, Filiale London 580,638.13 Deutsche Bank Aktiengesellschaft, Filiale London 8,957.70 Deutsche Bank Aktiengesellschaft, Filiale Singapur 17,915.40 Deutsche Bank Aktiengesellschaft, Filiale Singapur 164,071.53 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 130,127.57 Deutsche Bank Aktiengesellschaft, Filiale London 195,165.76 Deutsche Bank Aktiengesellschaft, Filiale New York 34,006.25

Deutsche Bank (Malaysia) Berhad

26,585.24

Deutsche Bank (Malaysia) Berhad

4,277.10

Deutsche Bank (Malaysia) Berhad

7,172.76 Deutsche Bank Aktiengesellschaft, Filiale Jakarta 14,867.95 Deutsche Bank Aktiengesellschaft, Filiale Jakarta 8,378.30 Deutsche Bank Aktiengesellschaft, Filiale Jakarta 14,796.15 Deutsche Bank Aktiengesellschaft, Filiale Taipei 4,660.72 Deutsche Bank Aktiengesellschaft, Filiale Taipei 4,660.67 Deutsche Bank Aktiengesellschaft, Filiale Taipei 4,660.67 Deutsche Bank Aktiengesellschaft, Filiale Taipei 4,603.76 Deutsche Bank Aktiengesellschaft, Filiale Taipei 4,603.76 Deutsche Bank Aktiengesellschaft, Filiale Taipei 4,603.76 Deutsche Bank Aktiengesellschaft, Filiale Taipei 4,368.93 Deutsche Bank Aktiengesellschaft, Filiale Taipei 4,368.93 Deutsche Bank Aktiengesellschaft, Filiale Taipei 4,368.93 Deutsche Bank Aktiengesellschaft, Filiale Taipei 4,193.70 Deutsche Bank Aktiengesellschaft, Filiale Taipei 4,193.70 Deutsche Bank Aktiengesellschaft, Filiale London 2,686,149.52 213,863.37 2796

P-944

02RS11070117

49,187,865.19 2797

P-945

02RS11070116

319,660.64 2798

P-946

02RS11080057

120,840,706.73 2799

P-947

02RS11120138

55,653,762.46 2806

P-759

02RS11150158

27,101,083.89 2812

P-765

02RS111602741

589,136.09 2814

P-766

02RS11160262

33,250,978.42 945,695.56 2820

P-771

02RS11200127

8,637,394.75 2821

P-772

02RS11200128

6,850,446.21 2823

P-774

02RS11200130

10,245,197.30 2826

P-777

02RS11200272

1,785,152.99 2827

P-778

02RS11200271

1,395,588.19 2833

P-783

02RS11200146

228,121.10 2834

P-784

02RS11200141

382,562.45 2835

P-785

02RS11200140

784,384.43 2845

P-952

02RS11210103

442,011.71 2846

P-794

02RS11210102

780,596.50 2847

P-953

02RS11210101

2,610,704.76 2850

P-797

02RS11220228

142,282,304.73 2851

P-954

02RS11220217

;!.

Deutsche Bank Aktiengesellschaft, Filiale New York 17,915.40 Deutsche Bank Aktiengesellschaft, Filiale New York 46,247.80

Deutsche Asia Pacific Holdings Pte Ltd

11,315.88 Deutsche Bank Aktiengesellschaft, Filiale London 908,945.00 Deutsche Bank Aktiengesellschaft, Filiale New York 27.30 Deutsche Bank Aktiengesellschaft, Filiale London 12,080.40 Deutsche Bank Aktiengesellschaft, Filiale London 26,182.66 Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi- 5,769.73

Minh-City

Deutsche Bank Aktiengesellschaft, Filiale London 29,410.66 Deutsche Bank Aktiengesellschaft, Filiale London 2,376.16

Deutsche Bank (Suisse) SA

8,564.80

Deutsche Bank (Suisse) SA

8,413.91

Deutsche Bank (Suisse) SA

8,413.91

Deutsche Bank (Suisse) SA

8,564.80 Deutsche Bank Aktiengesellschaft, Filiale Singapur 4,088.80 Deutsche Bank Aktiengesellschaft, Filiale Singapur 428,355.94 Deutsche Bank Aktiengesellschaft, Filiale Singapur 29,705.45 Deutsche Bank Aktiengesellschaft, Filiale New York 24.27

Deutsche Bank (Malaysia) Berhad

7,101.60

Deutsche Bank (Malaysia) Berhad

4,277.10 Deutsche Securities Inc.

130,818.29 Deutsche Securities Inc.

132,901.95 Deutsche Securities Inc.

132,777.15 Deutsche Securities Inc.

129,935.89 Deutsche Securities Inc.

129,935.89 Deutsche Bank Aktiengesellschaft, Filiale New York 480,010.39 Deutsche Bank Aktiengesellschaft, Filiale New York (60,774.51) Deutsche Bank Aktiengesellschaft, Filiale New York (367,392.61)

DB UK Bank Limited

11,210.54 Deutsche Bank Aktiengesellschaft, Filiale London 8,957.70 Deutsche Bank Aktiengesellschaft, Filiale London (13,674.26) Deutsche Bank Aktiengesellschaft, Filiale New York 17,915.40

Deutsche Bank (Suisse) SA

8,413.91 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 130,127.57 Deutsche Bank Aktiengesellschaft, Filiale Hong kong (120,981.⁴⁹) Deutsche Bank Aktiengesellschaft, Filiale Singapur 525,842.70 Deutsche Bank Aktiengesellschaft, Filiale Singapur 28,489.23 Deutsche Bank Aktiengesellschaft, Filiale Singapur 164,071.53 Deutsche Bank Aktiengesellschaft, Filiale Singapur 17,915.40 Deutsche Bank Aktiengesellschaft, Filiale Singapur (143,018.03) Deutsche Bank Aktiengesellschaft, Filiale Singapur (49,759.13)

DB UK Bank Limited

(5,471.37) Deutsche Bank Aktiengesellschaft, Filiale London 1,523,477.43 Deutsche Bank Aktiengesellschaft, Filiale London 569,709.73 Deutsche Bank Aktiengesellschaft, Filiale London 1,051,157.86 Deutsche Bank Aktiengesellschaft, Filiale New York 38,514.71 Deutsche Bank Aktiengesellschaft, Filiale Singapur 4,088.80

Deutsche Bank Americas Holding Corp

72.81 Deutsche Securities Inc.

410,798.37 3,412,927.23 2855

P-801

02RS11230269

601,906.93 2858

P-803

02RS11230091

48,256,008.21 2861

P-805

02RS11270002

1,449.36 2862

P-806

02RS11260213

2,031,390.83 2863

P-807

02RS11260201

306,315.72 2865

P-809

56RH11270010

1,703,880.67 2878

P-821

02RS12040389

459,102.14 2879

P-958

02RS12040345

451,013.93 2880

P-822

02RS12040344

451,013.93 2881

P-823

02RS12040342

459,102.14 2882

P-959

02RS12040341

218,525.88 2883

P-824

02RS12050129

22,893,478.93 2864

P-825

02RS12060054

1,587,607.48 2885

P-826

02RS12060056

1,285.99 2886

P-827

02RS12060224

375,213.89 2889

P-830

02RS12070098

225,981.09 2890

P-831

02RS12070097

20,948,987.19 2892

P-960

02RS12100079

13,730,356.68 2893

P-833

02RS12100077

2,747,792.33 2895

P-835

02RS12100123

345,083.86 2898

P-838

02RS12110094

955,981.33 2899

P-839

02RS12110089

448,973.56 2900

P-840

02RS12110088

488,042.79 2903

P-842

02RS12120049

29,003,857.99 2904

P-B43

02RS12120050

(294,002.37) 2913

P-851

02RS12120086

168,960,404.90 2,069,576.01 2914

P-852

02RS12120085

219,710.40 2915

P-853

02RS12130058

3,920.71 2921

P-859

02RS12130111

44,029,462.46 2924

P-963

02RS12140032 ,._

Deutsche Securities Inc.

8,964.14 Deutsche Securities Inc.

224.39 Deutsche Securities Inc.

368,029.27 Deutsche Securities Inc.

9,044.39 Deutsche Securities Inc.

20,S94.59 Deutsche Bank Aktiengesellschaft, Filiale London 43,129.66 Deutsche Bank Aktiengesellschaft, Filiale New York 31,525.68

Deutsche Bank Americas Holding Corp

60.76

Deutsche Bank (Malaysia) Berhad

26,585.24

Deutsche Bank (Malaysia) Berhad

(25,121.89) Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi- 5,769.73

Minh-City

Deutsche Bank Aktiengesellschaft, Filiale Hongkong 408,448.47 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 7,930.20 Deutsche Bank Aktiengesellschaft, Filiale Hong kong (1,691.82) Deutsche Bank Aktiengesellschaft, Filiale Hong kong 374,171.68 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 8,009.27 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 18,845.66 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 403,167.84 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 7,890.67 Deutsche Bank Aktiengesellschaft, Filiale Hong kong 23,864.19 Total for the 4th Quarter of CY 2012 €25,401,345.51

GRAND TOTAL

€88,848,985.45 2,330,524.98 2929

P-968

02RS12140106

1,707,S90.11 2937

P-976

02RS12180013

79,109.96 2938

P-977

02RS12170083

311,916.03 2940

P-717

56RH12180017

67,914,708.62 2942

P-719

02RS12190087

P1,352,574,757.41 P4,825,937,556.72 On the other hand, petitioner's declared sales in the amount of P462,519.66 (equivalent to €8,710.40), shall be denied VAT zero- rating due to the following reasons:

Amount

Collected in Euro as

reflected

Amount

Amount

Amount

in related

Peso

O.R.

per

of Sales of Sales

CUSTOMER'S NAME

Invoices

attached

Equivalent

No.

Inward

Disallowed

Disallowed

to the

Remittance in Euro

in Phil. Peso

Official

Receipts

(O.R.)

a. Over-claimed Zero-rated Sales (Amount per Inward Remittance is lower than the claimed Zero-rated Sales)

Second QuatterofCY 2012

Deutsche Bank_(_Malaysi<l}_ Berhad € 4,349.70

Deutsche Bank (Malavsia \ Berhad

4,349.70 Deutsche Bank_(_Malaysi<l)_ Berhad 4,436.11

Deutsche Bank (Malavsia\ Berhad

4,451.31

Deutsche Bank (Malavsia\ Berhad

4,815.61 € 22,402.43 1'1198 177.39101 2426102

b. SuPPOrted bv Zero-rated VAT Official Receipt but no date was indicated

Third Ouarfer of CY 2012

101 p. 10 of Annex 1-b, Exhibit "P-31". 102 Exhibit "P-508".

103 p. 7 of Annex 5-b, Exhibit "P-31". 104 1'1,198,177.39 X €4,815.61/€22,402.43. €17 586.82103 € 4 815.61 1'257 559.34104 ~

Deutsche Bank Aktiengesellschatt, Filiale Sin a ur € 3 694.79 204 960.32105 3 894.791" 3 894.79 204 960.32

Total

--- €8,710.40 P462,519.66 Moreover, a comparison of the amounts of zero-rated sales as declared in petitioner's Quarterly VAT Returns108 against the VAT zero-rated official receipts (ORs) per petitioner's Extracted Schedule

of Zero-rated

Sales109

shows the following discrepancy of P2,877,833 .33:

Zero-Rated Sales per:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Total

Quarterly VAT Returns

p 1,357,072,819.34 p 2,216,508,365.74 p 1,562,760,446.83 p 1,952,650,030.93 p 7,088,991,662.84

Official Receipts

1,357,247,291.96 2,216,933,947.01 1,559,282,560.15 1,952,650,030.39 7,086,113,829.51

Difference

p (174,472.62) p ( 425,581.27) p 3,477,886.68 p 0.54 p 2,877,833.33 Therefore, the amount of P2,877,833.33 which is not covered by VAT zero-rated official receipts shall also be denied VAT zero- rating.

The rest of petitioner's declared zero-rated sales in the amount of P2,259,713,753.13, as computed below, shall likewise be denied VAT zero-rating for petitioner's failure to prove that the entities to whom it rendered services are non-resident foreign corporations doing business outside the Philippines. 1st Quarter 2nd Quarter

Zero-Rated Sales per Returns

Pl 357 072 819.34 P2 216 508 365.74

Less: Valid Zero-

Rated Sales

963 228 031.37 1 465 271 326.41

Less: Exceptions per

Court

- 257 559.34

Disallowed Zero-

Rated Sales

p 393 844,787.97 p 750 979 479.99

Less: Sales Not

covered bv OR (174 472.62) (425 581.2"7}

Remaining

Disallowed Zero-

Rated Sales

P394,019,260.59 P751,405,061.26 105 p. 2 of Annex 1-c, Exhibit "P-31". 106 Exhibit "P-544".

107 p. 1 of Annex 5-c, Exhibit "P-31". 3rd Quarter 4th Quarter Pl 562 760 446.83 Pl 952 650 030.93 1 044 863 441.53 1,352 574 757.41 204 960.32 - p 517 692 044.98 p 600 075 273.52 3 477,886.68 0.54 P514,214,158.30 P600,075,272.98 108 Exhibits "P-5", "P-6-a", "P-7-a", and "P-8", Docket (Vol. III), pp. 1830-1861. 109 Annexes 1 to 1-d, Exhibit "P-31".

Total

P7 088 991 662.84 4 825 937 556.72 462 519.66 P2 262 591,586.46 2 877 833.33 P2,259,713,753.13

Petitioner had input

VAT

attributable to its zero-rated sales After having resolved that petitioner had valid VAT zero-rated sales for the four quarters of or 2012 in the amount of P4,825,937,556.72, The Court shall now proceed to determine whether petitioner incurred input taxes in connection therewith. In its Quarterly VAT Returns110 for the four quarters of or 2012, petitioner declared a total amount of P148,152,889.37 input VAT arising from its purchases of capital goods not exceeding P1Million, current purchases of capital goods exceeding P1Million, domestic purchases of goods other than capital goods, domestic purchases of services, and services rendered by non-residents, of which the claimed amount of P147,159,034.53111 was derived at as follows:

Current Purchases:

1" Quarter

2"" Quarter

3"' Quarter

4"' Quarter

Total

Purchases of capital goods not exceeding

P1Million

p 166 601.26 p 70 175.48 p 0.00 p 31 701.58 p 268 478.32 Purchases of capital goods exceeding

P1Million

144,774.43 519 095.86 814,897.⁵⁰ 4,783 826.41 6 262 594.20 Domestic purchases of goods other than caoital ooods 847 798.62 488 704.70 379 846.14 321161.46 2 037 510.92 Domestic purchases of services 33 883 221.61 32 207 086.21 37 326 391.45 31 091 956.87 134 508 656.14 Services rendered by non-resident 597 339.55 1 503 184.93 2 102 947.26 872 178.05 5 075 649.79 Total input VAT on current purchases

Cal

p 35 639 735.47 p 34 788 247.18 " 40,624 082.35 " 37 100 824.37 p 148 152 889.37

Ratio of Zero-rated

sales:

Zero-rated Sales (b) !'1 357 072 819.34 !'2 216 508 365.74 P1 562 760 446.83 !'1 952 650 030.93 p 7 088 991 662.84 Total Sales (c) 1 368 447 968.84 2 227 402 782.07 1 575 121134.91 1 963 693 771.10 7 134 665 656.92 Percentage of zero- rated sales against total sales (d=b/c) 99.17% 99.⁵¹% 99.22% 99.44% Claim amount apportioned to zero-rated sales (ax dJ p 35 343 482.10 p 34 618,094.91 p 40,305 268.80 p 36 892 170.72 P147 159 034.53112 In support of its input VAT on purchases of capital goods not exceeding P1Million, domestic purchases of goods other than capital goods, domestic purchases of services, and services rendered by j<... 11o Exhibits "P-5", "P-6-a", "P-7-a", and "P-8", Docket (Voi.III), pp. 1830-1861. 111 No. 7, p. 6, Exhibit "P-31". 112 Sum should be 1'147,159,016.16. Difference of P18.00.

I

I

non-residents amounting to P141,890,295.17,113 petitioner presented its Schedule of Purchases for the four quarters of CY 2012,114 and the related supporting invoices, official receipts, BIR Forms No. 1600 and other documents,115 which were all examined by the ICPA. In her Report, the ICPA noted the following exceptions: 116

Reference

1st 2nd 3rd 4th

FINDINGS

Exhibit P-

Quarter

Quarter

Quarter

Quarter

31

PURCHASE OF GOODS

1. Purchase of goods supported by VAT REG. TIN Invoices Annex93Q-f ,.

p p 4,950.00 p ,.

with incorrect - - -

Petitioner's TIN

NUMBER

2. Purchase of goods supported by VAT REG. TIN Invoices

Annex 91Q-g

8,839.90 - - - but unclear

Petitioner's TIN

3. Purchase of goods supported by VAT

Annex 93Q-h

REG. TIN Invoices

Annex94Q-h

- - 9,634.61 657.16 without VAT breakdown

4. Purchase of goods supported by TIN NO.

VAT I VAT REG. TIN

Annex 91Q-i

98,254.97 - - - Invoices not dated within the year of claim S. Purchase of goods supported by TIN NO.

Annex 91Q-j

VAT I VAT REG. TIN I REG. VAT TIN

Annex92Q1

457,805.71 91,486.06 75,872.17 - Invoices without the

Annex93Q1

Petitioner's TIN

6. Purchase of goods

Annex91Q-k

supported by

Annex92Q-k

160,173.38 172,232.40 106,342.11 185,048.40 documents other than

Annex93Q-k

VAT Invoices

Annex94Q-k

7. Purchase of goods supported by

Annex 92Q-I

- 43,321.37 - - photocopied Invoices

8. Purchase of goods without supporting - 14,077.87 - - documents

Total

4,950.00 8,839.90 10,291.77 98,254.97 ' 625,163.94 ' 623,796.29 43,321.37 14,077.87

Subtotal

p 725,073.96 .. 321,117.70 p 196,798.89 .. 185,705.56 .. 1,428,696.11

PURCHASE OF SERVICES

113 Total input VAT on current purchases P148 152 889.37 Less: Purchases of capital goods exceeding P1 million 6,262,594.20 Current purchases excluding p_lJrchase of capital good~ exceeding 1'1 million P141 890,295.17

1. Purchase of services supported by

Annex92Q·

6.730.22 VAT REG. TIN ORs p - p without Petitioner's m name indicated

2. Purchase of

Annex 91Q-n

services supported by

Annex92Q-n

20,095.78 8.780.39 undated VAT REG.

Annex94Q-n

TINORs

3. Purchase of services supported by VAT REG. TIN ORs

Annex93Q-o

- - with incorrect Petitioner's name

4. Purchase of services supported by TIN NO. VAT ORs

Annex 93Q-p

- 12,321.43 with VAT amount written on computer generated OR

5. Purchase of services supported by VAT REG. TIN ORs

Annex93Q-q

- 1,516,929.00

with Petitioner's TIN

written on computer generated ORs

6. Purchase of services supported by

Annex 91Q-r

VAT REG. TIN ORs 6,575.41 - with unreadable

Annex94Q-r

Petitioner's TIN

7. Purchase of services supported by TIN NO. VAT I VAT

Annex 91Q-s

74,326.05 - REG. TIN ORs not

Annex94Q-s

within the year of claim

8. Purchase of services supported by

Annex 91Q-t

TIN NO. VAT I VAT

Annex92Q-t

3,032,568.25 2,313,001.47 REG. TIN I VAT REG.

Annex93Q-t

ORs without

Annex 9 4Q-t

Petitioner's TIN

9. Purchase of services supported by

Annex91Q-u

TIN NO. VAT I VAT

Annex92Q-u

32,403.24 79,037.94 REG. TIN I VAT REG.

Annex93Q-u

ORs with incorrect

Annex94Q-u

Petitioner's TIN

10. Purchase of services supported by

Annex 91Q-v

TIN NO. VAT I VAT

Annex92Q-v

1,526,921.22 2,384,956.29 REG. TIN I VAT REG.

Annex93Q-v

ORs without VAT

Annex 94Q-v

breakdown

11. Purchase of services supported by

Annex 91Q-

TIN NO. VAT I VAT w Annex9 290.85 58.78 REG. TIN I VAT REG.

2Q-w Annex

ORs with unreadable

93Q-w

date

12. Purchase of services supported by TIN NO. VAT I VAT - - REG. TIN I VAT REG.

ORs with overstated VAT amount claimed p - p - " 6,730.22 - 2,348,617.50 2,377,493.67 30,444.33 - 30,444.33 - - 12,321.43 - - 1,516,929.00 - 12,095.64 18,671.05 - 1,342,773.19 1,417,099.24 1,896,420.59 493,120.15 7,735,110.46 26,064.56 269,264.03 406,769.77 1,056,255.67 1,727,721.82 6,695,855.00 912.94 - 1,262.57 - - - ~ 13. Purchase of

Annex91Q-x

services supported by

Annex92Q-x

3,232,767.63 502,241.76 documents other than

Annex93Q-x

VATORs

Annex94Q-x

14. Purchase of

Annex 91Q-y

services supported by

Annex92Q-y

Certified True Copy

Annex93Q-y

14,325.61 1,092.00 documents other than

VATORs

Annex94Q-y

15. Purchase of services supported by

Annex92Q-z

- 20,000.15

Photocopied VAT ORs

16. Purchase of services without 905,554.46 supporting (33,992.60) documents 239,822.50 1,922,541.49 5,897,373.38 80,718.66 22,088.49 118,224.76 - - 20,000.15 2,243,165.71 1,134,182.50 4,248,910.07

Subtotal

P7,906,281.44 P7,750,703.89 PS,S73,804.96 P9,272,404.81 P30,503,195.10 PURCHASE OF CAPITAL GOODS NOT EXCEEDING ONE (1) MILLION

1. Purchase of capital goocs not exceeding

Annex92Q-

one million supported

with Invoices but

aa Annex9 p - p 36,710.33 p - p 25,605.15 p 62,315.48 without Supplier's

4Q-aa

TIN number

2. Purchase of capital goods not exceeding one million supported

Annex 9IQ-

with VAT REG. TIN ab 126,801.54 - - - 126,801.54 NO. Invoices not dated within the year of claim

Subtotal

.. 126,801.54 ..

36,710.33 p - p 25,605.15 p 189,117.02

TOTAL

P8,758,1S6.94 P8,108,531.92 PS,770,603.8S P9,483,71S.⁵² P32,121,008.23 The above exceptions found by the ICPA in the amount of P32,121,008.23 should be disallowed for not being properly substantiated by VAT invoices or official receipts as prescribed under Sections 110(A) and 113(A) and (B), 237 and 238 of the NIRC of 1997, as amended, in relation to Sections 4.110-2, 4.110-8 and 4.113-1 of Revenue Regulations (RR) No. 16-05, as amended. Further verification of the ICPA report, together with the supporting documents, reveals that the additional input VAT of P3,328,743.73, should likewise be disallowed for the reasons stated below:

Exhibit I

Registered Name I O.R. l O.R.

Input Vat

Input VAT

Disallowed Input

ofS~ier

Number

Date

_per Claim per Official Receipt

VAT

A. Input VAT on domestic purchases of services supported by Official Receipts but the amount of Input VAT claim is not separately indicated - P64,894.62

SECOND QUARTER OF CY 2012

P-2699 I

MGE UPS Systems Phils., I 10506 I

9-May-12

p 59,865.18 - p 59,865.18 Inc.

Subtotal- 2nd Quarter of CY 2012 , 59,865.18 - ,.

59,865.18 ·-- -- #"<-.

THIRD QUARTER OF CY 2012

FTL Hotels, Inc. 17-Oct-12 Subtotal - 3rd Quarter of CY 2012 P 2,514.72 B. Input VAT on purchases of services supported by Official Receipts wherein the amount of claim is more than the amount reflected in the Official Receipts — ?3,114,639.59

FIRST QUARTER OF CY 2012

P-1099 | Asia Select, Inc 7066 | 18-Jan-12 P 168.59 P 165.57 P 3.02 P-1100 | Asia Select, Inc 18-Jan-12 1,435.22 1,409.59 25.63 P-1101 | Asia Select, Inc 7080 | 25-Jan-12 2,423.52 2,380.24 43.28

P-1102

¥ 7 Asia Select, Inc 7091 2,547.48 2,501.98 45.50 P-1103 | Asia Select, Inc 7092 | 1-Feb-12 2,402.62 2,359.71 12 1 1 f 12 .

P-1108 | Asia Select, Inc 7194 2,187.72 2,148.65 P-1109 | Asia Select, Inc 7257 4-Apr-12 1,823.16 1,790.60 32.56 P-1110 | Asia Select, Inc 7252 4-Apr-12 1,097.01 1,077.42 19.59 P-1111 | Asia Select, Inc 7253 4-Apr-12 2,421.72 2,378.47 43.25 12 P-1115 | BAYANTEL sesses | 79 Feb 182.04 178.79 p-1116 | BAYANTEL 847221 | 18-Jan-12 182.04 178.79 P-1117 | BAYANTEL 847219 | 18-Jan-12 178.79 P-1119 | BAYANTEL 866871 oreo 182.04 178,79 P-1120 | BAYANTEL 872920 ae 182.04 178,79 P-1121 | BAYANTEL 847218 | 18-Jan-12 19,200.00 18,857.14 342,86 P-1124 | BAYANTEL 873000 2eer 19,200.00 3,142.86 16,057.14 -1126 | BAYANTEL 866874 oo Feo 170.29 167.25 F304 | P-1127 | BAYANTEL 866873 20 Feb 182.04 178.79 p28) ;

1 t 04 25 25 .25 .25 :

3 3 3 2 . 3 P-1133 | BAYANTEL 872918 ae 182.04 178.79 P-1134 | BAYANTEL 847220 | 18-Jan-12 2,309.19 2,267.95 41.24 P-1137 | BAYANTEL 866872 nore 182.04 178.79 P-1138 | BAYANTEL 872997 2B er 182.04 29.80 152.24 P-1161 Sarid Ankerational 13720 | 4-Apr-12 179,565.58 29,927.60 149,637.98

Fe

P-1162

P-1190

P-1192

P-1197

P-1203

P-1218

P-1219

P-1220

P-1237

P-1238

P-1239

P-1240

P-1273

P-1274

P-1284

P-1287

P-1303

P-1304

P-1306

P-1311

P-1321

P-1390

P-1391

P-1401

P-1413

P-1414

P-1415

P-1416

P-1417

Colliers International

13712

28-Mar-

Philippines

12 Facilities Managers, Inc.

51889

21-Mar-

12 Facilities Managers, Inc.

51935

28-Mar-

12

Global City Car Lease &

7196

25-Jan-12

Transpo_rt Corp.

Global City Car Lease &

7679

14-Mar-

Transoort Coro.

12

Leaves & Branches

3966

18-Jan-12

Enterprises

Leaves & Branches

3992

8-Feb-12

Enterprises

Leaves & Branches

14-Mar-

Enterprises

5217 12 No Ka Oi (Phils) Int'l, Inc.

23074

8-Feb-12

No Ka Oi (Phils) Int'l, Inc.

23381

29-Feb-

12 No Ka Oi (Phils) Int'l, Inc.

23507

21-Mar-

12

Papertone Corporation

614

15-Feb-

12

Reuters Limited

35972

18-Jan-12

Reuters Limitec

35945

29-Feb-

12 Salt & Light Ventures, Inc.

11106

22-Feb-

12

Schneider Electric

1891

1-Feb-12

Philippines

Taurus Electrical Services

15

1-Feb-12

Taurus Electrical Services

14

1-Feb-12

Taurus Electrical Services

25

21-Mar-

12 Tempo Services, Inc.

56329

25-Apr-12

Wide Wide World Express

907171

18-Jan-12

Corp.

BAYANTEL

872919

21-Mar-

12

BAYANTEL

847222

18-Jan-12

6-24 Property Holdings, 2506

7-Feb-12

Inc.

Asia Select, Inc.

7182

7-Mar-12

Asia Select, Inc.

7079

25-Jan-12

Asia Select, Inc.

7065

18-Jan-12

Asia Select, Inc.

7051

11-Jan-12

Asia Select, Inc.

7052

11-Jan-12

-- - - - - -- 6,058.79 1,009.80 5,048.99 I 21.09 14.07 7.02J 26.36 4.39 21.97 I 2,083.71 2,046.50 37.21 192.43 188.99 3.44 I 14,191.07 5,912.95 8,278.12 I 14,191.07 5,912.95 8,278.12

I

14,191.07 5,912.95 8,278.12 4,239.65 4,163.94 75.71 4,239.65 4,163.94 75.71 4,239.65 4,163.94 75.71 446.79 4.91 441.88 1,300.05 216.68 1,083.37 43,942.94 7,323.82 36,619.12 15,240.00 1,676.40 13,563.60 17,678.57 17,362.88 315.69 68,638.39 67,412.71 1,225.68 2,587.50 2,541.30 46.20 3,000.00 2,946.43 53.57 1,292.26 215.38 1,076.88 1,112.25 1,098.85 13.40 182.04 178.79 3.25 182.04 178.79 3.25 2,264,525.85 (62,918.04) 220,786.96 1,980,820.85 807.31 1,559.64 4,806.59 87.40 2,527.04 8,915.43 2,455.92 11,168.29 203.06 2,728.32 1,823.16 5,312.80 96.60 857.92 596.75 1,034.91 1,464.66 3,914.81 71.19 889.68 3,682.56 12,020.50 218.57 2,639.32

---L_ __

- - - ~

5,917.19 , 15-Feb- 2,467.90 P-1418 | Asia Select, Inc. 7133 D 5,246.59 95.40 2,874.09 1,285.71 1,178.57 “1420 | Siiminun Supple sanz {4,086.43 | P-1420 | aluminum Supplies 2276 | 18-Jan-12 4,086.43 9,953.94 49,769.62 48,857.14 4,315.71 (275.

f 31.63 sta: 14-Mar- P-1430 | Facilities Managers, Inc. 51699 12 591.35 1,932.23 966.32 2,275.57 1 1,995.30 sags 14-Mar- 31.63 P-1431 | Facilities Managers, Inc. 51700 7 51.09 1,491.78 746.05 189.81 226.71 “tips 28-Mar- P-1444 | Facilities Managers, Inc. 51937 D 432.31 216.19 379.61 P-1445 | Facilities Managers, Inc. } 51936 | 7°)er 2,421.62 1,211.07 523.87 P-1446 | Facilities Managers, Inc. 51697 Me Ner- 241.27 3,014.77 1,507.71 3,757.34 14-Mar- 2,958.83 P-1475 | Maxicare Healthcare Corp. | 132494 2,759.94 91.75 12 (107.14) 55.71 7 Premium Security & _ 72.55 P1478 | esti gation Agency, Inc. 64327 } 18-Jan-12 6,609.35 120.16 26.38 6,574.87 618.68 _ Premium Security & 7 659.36 P-1479 Investigation Agency, Inc. 64326 | 18-Jan-12 1,361.76 24.76 52.77 55.71 P-1501 | Federal Phoenix Assurance | 563065 oreo” 241,027.72 4,017.13 237,010.59 P-1505 | Taurus Electrical Services | 18 | 22Feb 33,013.80 32,424.27 589.53 18 om

P-1543

P-1552

P-1560

P-1561

P-1563

P-1572

P-1595

P-1596

P-1624

P-1592

P-1593

P-1460

P-1451

P-1452

ePLDT, Inc.

11069 Fuji Xerox Philippines, Inc. | 152617 Headstrong Philippines, Inc.

Headstrong Phitippines, Inc.

Headstrong Philippines, Inc.

Premium Security &

Investigation Agency, Inc.

Premium Security &

Investigation Agency, Inc.

Sofitel Philippine Plaza

Premium Security &

Investigation Agency, Inc.

Premium Security &

Investigation Agency, Inc.

Fuji Xerox Philippines, Inc.

Fuji Xerox Philippines, Inc.

Fuji Xerox Philippines, Inc.

1851 1858 1887 866314 64497 n nN wo toe] 78266 64328 154407 152606 150344

18-Jan-12

8-Feb-12

28-Mar-

12

22-Feb-

12

15-Feb-

12

15-Feb-

12

8-Feb-12

18-Jan-12

64325 | 18-Jan-12

29-Feb-

12

25-Jan-12

11-Jan-12

160.18 138.75 138.75 31,035.11 31,035.11 31,035.11 138.75 138.75 235.71 12,095.64 11,520.00 15,264.00 31,920.00 16,254.00 58,800.00 13,680.00 14,400.00 146.80 2,473.61 683.77 625.92 6,743.41 127.19 84,56 44,863.43 26.38 420.00 230.85 618.68 41.79 13.19 3,963.44 11,979.50 34,226.51 3,846.19 15,171.43 9,007.77 10,416.01 23,259.22 3,846.19 9,007.77 15,171.43 13,502.64 32,050.93 3,846.19 11,879.65 73,619.00 71,186.00 14,143.00 4,768.06 72,161.20 4.20 215.99 1,339.00 1,294.00 257.00 46.80 23.40 122.70 794.62 420.46 99.89 2,070.20 59,852.98 1,847.64 71,523.97 2,054.99

P-1529

DHL Express (Philippines)

1975649

21-Mar-

Corp.

12

DHL Express (Philippines)

P-1516

1972195

7-Mar-12

Corp.

DHL Express (Philippines)

22-Feb-

P-1353

1966096 Corp.

12

DHL Express (Philippines)

28-Feb-

P-1350

1950011 Corp.

12 Subtotal- 1st Quarter of CY 2012

SECOND QUARTER OF CY 2012

P-2116

Global City Car Lease &

7955

18-Apr-12

Transport Corp.

P-2174

No Ka Oi (Phils) Int'l, Inc.

23667

25-Apr-12

P-2185

Passion Cooks, Inc.

152

30-May-

12

P-2198

Power Partners & General

544

9-May-12

P-2199

Power Partners & General

545

30-May-

12

P-2200

Power Partners & General

547

13-Jun-12

P-2208

Premium Security &

65851

6-Jun-12

Investigation Agencv. Inc.

P-2221

PSEI Firesafety System

1311

27-Jun-12

P-2241

Recreational Management

20503

6-Jun-12

Advanced Cleaning &

P-2330

Restoration Technologies

2418

13-Jun-12

Inc.

P-2336

Asia Select, Inc.

7254

4-Apr-12

P-2337

Asia Select, Inc.

7319

9-May-12

P-2338

Asia Select, Inc.

7267

18-Apr-12

P-2339

Asia Select, Inc.

7296

2-May-12

P-2340

Asia Select, Inc.

7344

16-May-

12

P-2341

Asia Select, Inc.

7414

20-Jun-12

P-2342

Asia Select, Inc.

7417

20-Jun-12

P-2349

BAYANTEL

877838

25-Apr-12

P-2350

BAYANTEL

879152

13-Jun-12

P-2351

BAYANTEL

879182

27-Jun-12

P-2352

BAYANTEL

873384

9-May-12

P-2353

BAYANTEL

878698

23-May-

12

P-2354

BAYANTEL

879184

27-Jun-12

P-2355

BAYANTEL

878692

23-May-

12

P-2356

BAYANTEL

879185

27-Jun-12

P-2357

BAYANTEL

873385

9-May-12

P-2358

BAYANTEL

879151

13-Jun-12

15,171.43 9,007.77 676.00 81.66 140.64 675.80 58.78 33.60 873.00 760.26 824.94 33.60 645.00 33.60 33.60 684.00 684.00 81.66 81.66 651.00 651.00 P3,617,037.65 P1,061,246.08 P2,555,791.57 p 909.00

I'

892.77 p 16.23 4,239.65 4,163.94 75.71 9,750.00 1,625.00 8,125.00 125,400.00 123,160.70 2,239.30 28,080.00 27,578.57 501.43 23,880.00 23,453.57 426.43 1,806.00 1,773.75 32.25 7,302.96 1,217.16 6,085.80 21,570.43 14,191.07 7,379.36 32,170.59 5,361.77 26,808.82 3,098.42 3,043.09 55.33 2,242.97 2,202.92 40.05 2,314.08 2,272.75 41.33 2,813.03 2,762.79 50.24 2,610.18 2,563.56 46.62 5,647.89 5,547.03 100.86 1,678.06 1,648.10 29.96 182.04 178.79 3.25 182.04 178.79 3.25 182.04 178.79 3.25 182.04 178.79 3.25 182.04 178.79 3.25 182.04 178.79 3.25 19,200.00 18,857.14 342.86 19,200.00 18,857.14 342.86 182.D4 178.79 3.25 182.04 178.79 3.25 .).__

P-2359

P-2360

P-2361

P-2362

P-2363

P-2364

P-2365

P-2366

P-2391

P-2434

P-2439

P-2440

P-2463

P-2474

P-2483

P-2520

P-2520

P-2521

P-2522

P-2539

P-2626

P-2627

P-2628

P-2629

P-2630

P-2631

P-2632

BAYANTEL

879183

27-Jun-12

BAYANTEL

877836

25-Apr-12

BAYANTEL

878697

23-May-

12

BAYANTEL

879181

27-Jun-12

BAYANTEL

877837

25-Apr-12

BAYANTEL

878696

23-May-

12

BAYANTEL

879180

27-Jun-12

BAYANTEL

873383

9-May-12

Colliers International

13958

23-May-

PhiliQQines

12

Exclusive Cars

6974

23-May-

International

12 Facilities Managers, Inc.

52123

11-Apr-12

Facilities Managers, Inc.

52121

11-Apr-12

Hewlett-Packard

121198

18-Apr-12

Philippines

Maxicare Healthcare Corp.

143969

18-Jul-12

Team Prima Badminton

11-Jul-12

Center, Inc.

1259 Headstrong Philippines, 1936

27-Jun-12

Inc.

Headstrong Philippines, Inc.

1936

27-Jun-12

IBM Philippines, Inc.

19056

25-Apr-12

Hewlett-Packard

122142

30-May-

Philippines

12

BAYANTEL

877835

25-Apr-12

Asia Select, Inc.

7415

20-Jun-12

Asia Select, Inc.

7416

20-Jun-12

Asia Select, Inc.

7346

16-May-

12 Asia Select, Inc.

16-May-

7345 12 Asia Select, Inc.

7299

2-May-12

Asia Select, Inc.

7297

2-May-12

Asia Select, Inc.

7295

2-May-12

182.04 178.79 3.25 182.04 178.79 3.25 182.04 178.71 3.33 182.04 178.79 3.25 182.04 178.79 3.25 182.04 178.71 3.33 182.04 178.79 3.25 182.04 178.79 3.25 179,565.58 29,927.60 149,637.98 5,229.64 4,192.00 1,037.64 2,625.66 1,750.31 875.35 1,344.89 896.53 448.36 26,064.56 47,780.75 4,348.37 26,064.56 221.30 216.98 4.32 1,460.36 1,269.64 455.00 2,275.00 16,740.00 22,805.00 415.00 6,480.00 26,460.00 72,437.14 642.86 46,620.00 26,064.56 1,915.31 9,531.91 1,147.53 39,237.22 957.66 1,915.31 19,200.00 18,857.14 342.86 1,889.76 748.32 1,025.28 5,207.87 94.69 1,639.20 2,552.96 2,747.53 5,205.84 94.65 1,051.64 2,811.81 5,608.05 101.96 1,846.56 2,435.59 3,980.81 72.38 1,617.60 724.94 2,601.93 3,267.45 59.42 6,371.01 5,425.70 11,586.06 210.65 1,088.04 2,899.87 52.73

A

1,864.56 799.59 P-2633 | Asia Select, Inc 7255 4-Apr-12 3,632.36 7,477.52

_ Career Management “Whe

P-2672 4-Jul-12 18,401.20 2,208.80 P-2724 9-May-12 10,560.00 1,760.00 8,800.00 P-2728 5282 | 3-Oct-12 4,714.29 281.50 4,432.79 12 30.

ta 11,696.80 212.67

P-2634

. Inc.

Asia Select, Inc.

1,650.00 20,610.00

P-2581

31,716.06 -May- 12,279.48 Fuji Xerox Philippines, Inc. | 160185 30-May : 69,988.18 2,036.84 15,171.43 3,846.19 9,007.77 Subtotal - 2nd Quarter of CY 2012 P 878,822.65

THIRD QUARTER OF CY 2012

p-3041 | BAYANTEL 903365 2 P 182.04 p-3042 | BAYANTEL 896167 29-Ag 182.04 P 608,316.00 P 270,506.65 P 178.79 P 3.25 178.79 3.25 18,857.15 342.85 18,857.15 342.85 2 2 P-3043 902638 19,200.00 12 1 P-3045 | BAYANTEL 96647 | 26-Jul-12 182.04 p-3046 | BAYANTEL 896644 | 26-Jul-12 182.04 p-3047 | BAYANTEL 904340 | 12-SeP- 182.04 p-3048 | BAYANTEL 915366 | 2° a 182.04 2 p-3049 | BAYANTEL 896643 | 26-Jul-12 182.04 p-3050 | BAYANTEL 903366 arhed 182.04 P-3051 | BAYANTEL 915364 a 182.04 P-3052 | BAYANTEL 896646 | 26-Jul-12 182.04 p-3053 | BAYANTEL 903368 | 227AUg- 182.04 2 p-3054 | BAYANTEL 915365 eer 182.04 P-3055 | BAYANTEL 895872 | 4-Jul-12 182.04 2 2 1 1 P-3056 | BAYANTEL 996645 | 26-Jul-12 182.04 178.79 P-3057 | BAYANTEL 903367 | 72 Aus 182.04 178.79 1 p-3059 | G9 Media Im 02344 | 25-Jul-12 209.04 34.84 174.20 p-3064 3497 2ener- 12,672.00 2,112.00 10,560.00 ? 7 2 P-3084 | Design Muscle, Inc. 3-Oct-12 7,200.00 7,071.43 128.57 Global City Car Lease & Ana.

p-3140 8508 | 1-Aug-12 1,376.89 1,360.02 16.87

_ Global City Car Lease & 15-Aug-

sce Eden ae 8524 7,588.39 7,535.18

Pe

Global City Car Lease &

Transport Corp.

_ Global City Car Lease &

P-3143 Transport Corp. 8523

15-Aug-

12 12 277.07 7,267.61 272.12 95 ; 62 21

7 Global City Car Lease & 19-Sep-

_ Global City Car Lease & 19-Sep-

_ Global City Car Lease & 26-Sep-

1 1 P-3207 | No Ka Oi (Phils) Int'L, Inc. | 24377 | 23-Jul-12 4,239.65 4,163.94 75.71 p-3209 | Papertone Corporation 1017 | 1 oP 2,571.43 1,428.57 1,142.86 P-3210 | Passion Cooks, Inc. os 1,607.14 267.86 1,339.28 2 4.

3.

13.99 6.

3.

p-3409 | tleadstrong Philippines, 1983. | 7°S8P" 232,688.30 4,230.70 a 1,623.60 1,886.16 P-3426 | Asia Select, Inc. 7704 | 3-Oct-12 7,044.72 128.09 930.66 2,732.39 719.03 P-3427 | Asia Select, Inc. 7705 | 3-Oct-12 472.57 3,706.30 67.40 2,582.10 P-3428 | Asia Select, Inc.

1,504.80 1,339.68 7703 3-Oct-12 5,922.16 107.68 724.94 2,460.42 1,483.20 P-3429 | Asia Select, Inc. 7602 5-Sep-12 1,649.57 3,869.72 70.36 807.31 1,695.00 P-3430 | Asia Select, Inc. 7517 25-Jul-12 2,722.32 49.50 1,076.82 15-Aug- 2,377.37 P-3431 | Asia Select, Inc. 7556 3,693.80 67.17 12 1,383.60 1,693.20 P-3432 | Asia Select, Inc. 7453 4-Jul-12 807 31 4,963.46 90.25

GU

2,553.20 Cen. 182.04 p-3480 | BAYANTEL 915363 | 26-Sep 357.57 12 182.04 182.04 182.04 P-3481 | BAYANTEL 895873 4-Jul-12 667.46 12.15 182.04 12-Sep- 182.04 P-3482 | BAYANTEL 904339 1 357.57 6.51 2 182.04

Schneider Etectric

P-3542 Philiopines 2657 11-Jul-12 5,357.14 5,261.48 95.66

P-3255

P-3225 | Salt & Light Ventures, Inc. | 11659 | 19-20?" 17,400.00 17,100.00 300.00 15,660.00 P-3256 Investigation Aden 66989 6,703.84 440.61 6,263.23 igati Inc.

_ Premium Security & aa. 3,776.98 P-3262 Investigation Agency, Inc. 66580 25-Jul-09 618.68 3,521.88 873.78

Premium Security & “Wie

Investigation Agency, Inc. 66195 18-Jul-12 6,663.16 113.95 6,549.21 p-3117 | Excelsior Tours and 12-Sep- 7,200.00 7,058.57

Transport 12

a Can. 33.60 P-3466 DHL Express (Philippines) 2115959 16-Sep 33.60 794.00 Corp 12 794.00 2,521.00 ont Express (Philippines) | 99389 | 12-Sep- 58.78 2,616.98 1,198.00 orp 12 | 33.60 | p-3541 | Schneider Electric 2656 | 14-Jul-12 8,400.00 8,250.00 150.00

Philippines

7 Schneider Electric 12-Sep-

P-3701 2952 7,800.00 7,660.71 139.29 P-3702 | Taurus Electrical Services | 50 | aN 94,340.18 92,655.53 1,684.65 15,660.00 Professional Skills 26-Sep- | 11,460.00 | Enrichment 67524 12 11,460.00 3,475.11 39,304.89 . é vu

WwW

WwW

BS

P-3468

1,198.00 ‘lio “Aua- 33.60 p-3479 | OHL Express (Philippines) | sygagog | 15-Aug 33.60 700.00 Corp 12 700.00 DHL Express (Philippines) 33.60 P-3472 2075927 | 25-Jul-12 33.60 1,958.00 Corp 1,958.00 33,60 com (Philippines) | 2975996 | 25-Jul-12 633.00 1,273.60 633.00 1,240.00 — 33.60 p-3473 | OHL Express (Philippines) | 5974533 | 18-Ju-12 33.60 810.00 Corp 810.00 Subtotal - 3rd Quarter of CY 2012 P 578,963.48 P 493,357.78 P 85,605.70

P-3471

FOURTH QUARTER OF CY 2012

P-3756 | Asia Select, Inc. 7780 7-Nov-12 P p-3757 | Asia Select, Inc. 7860 7B ew 1,398.83 1,869.92 P 1,836.53 P 33.39 25.00 oe, 1,373.83

P-3758 | Asia Select, Inc. 7364 | 28-Nov- 12 33 P-3793 | Design Muscle, Inc. | 334 | tec 1,200.00 P-3821 | Fuji Xerox Philippines, Inc. 154689 }{ 17-Oct-12 15,171.43 P-3823 } Fuji Xerox Philippines, Inc. | 169967 3,846.19 P-3825 | Fuji Xerox Philippines, Inc. | 169977 tere 12,095.64

Global City Car Lease & 28-Nov-

P-3830 Transport Corp. 8976 91.93 P-3834 readstrong Philippines 2037 Oe 5,712.00 P-3837 | IBM Philippines, Inc. 21720 | 31-Oct-12 81,734.40 5 4 p-3918 | Taurus Electrical Services | 58 — | 10-Oct-12 196,403.31 -Nov- 10,043.48 p-39g2 | Seven Seven Global 1536 21-Nov ' Services, Inc. 12 33,000.00 - -Dec- 83,728.64 P-4021 hewlett Packard 126684 19-Dec ilippines 26,064.56 “Dec: 12,095.64 P-4036 | Fuji Xerox Philippines, Inc. | 169995 toes 3,501.52 -Nov- 6.31 p-4037 | Fuji Xerox Philippines, Inc. | 169964 | 2° 1 4,785.59 35,114.26 P-4042 | Fuji Xerox Philippines, Inc. | 167613 | 10-Oct-12 6,279.18 17,820.00 3525 ara 8,100.00 12,960.00 182.04

P-4063 | BAYANTEL 917495 | 31-Oct-12

546.11 182.04

-4064 | BAYANTEL 917497 | 31-Oct-12

546.11 182.04

P-4065 | BAYANTEL 917496 | 31-Oct-12

546.11 933.19 P-4068 | Asia Select, Inc. 7781 7-Nov-12 499.76 2,737.84 P-4069 | Asia Select, Inc. 7744 | 17-Oct-12 936.00 P-4133 916481 | 3-Oct-12 182.04 P-4144 19-Dec- 18,000.00 1,086.54 1,067.13 19.41 342.85 2,214.00 11,070.00 19,200.00 18,857.15 14,494.13 677.30 11,879.65 215.99 5,610.00 102.00 81,705.47 28.93 642.86 3,214.28 192,896.11 3,507.20 28,883.48 14,160.00 11,429.05 98,364.15 15,318.64 278.52 4,706.33 85.57 6,480.00 32,400.00 71,754.75 56,571.43

Fe

P-4062 | Businessworks, Inc.

Inc.

18,000.00 12,000.00 Crown Worldwide Movers, | 5.654 19-Dec 6,000.00 5,893.00 107.00 P-4168 | Fuji Xerox Philippines, Inc. | 169994 oper 23,752.64 23,328.49 138.75 1,800.72 -Dec- 31,035.11 P-4285 | Innove A/C 361167 19-Dec ; 32,836.65 597.04 12 138.75 160.18 160.18 138.75 138.75

28-Nov-

P-4286 | Innove A/C 359669 12 138.75 61,370.63 1,115.84 31,035.11 31,035.11 2,998.99 P-3977 | SGV & Co. 101196 | 2-Jan-12 24,155.40 30,686.47 2,425.71 5,957.79 2038. | 28 543,870.38 24,463.78 Headstrong Philippines, Inc.

14,400.00

2,880.00 19,200.00 26,400.00 32,760.00 16,320.00 13,200.00 15,120.00 20,160.00 7,785.00 9,007.77 3,846.19 169966 | 28-Nov 9,007.77 45,330.44 1,525.30 3,846.19 21,147.82 12 . ees 28-Nov- p-3824 | Fuji Xerox Philippines, Inc. | 169965 » 9,007.77 8,605.64 402.13 p-3819 | FTLHotels, Inc. 45721 ze Now 11,088.24 10,712.88 375.36 “ppl 33.60 P-4147 Care Express (Philippines) | 5418102 | 3-Oct-12 33.60 2,059.00 orp. 2,059.00 P-4038 | Fuji Xerox Philippines, Inc.

DHL Express (Philippines)

P-4157 Corp.

2,324.00 2153538 | 5-Dec-12 33.60 2,357.60 710.00 710.00 P1,598,335.09 P1,395,599.42 P 202,735.67 P6,673,158.87 P3,558,519.28 P3,114,639.59 Subtotal - 4th Quarter of CY 2012

TOTAL

C. Input VAT on purchase of services wherein the supporting official receipt pertains to a different transaction — P149,209.52

SECOND QUARTER OF CY 2012

P-2475 | Maxicare Healthcare Corp. | 0131314 Pp 14920952] - | P 149,209.52 Subtotal - 2nd Quarter of CY 2012 pi4920952| - | Pp 149,209.52 GRAND TOTAL P6,887,263.01 | P3,558,519.28 | P3,328,743.73 With regard to the input taxes on current purchases of capital goods exceeding P1Million with an aggregate amount of P6,262,594.20, the ICPA noted that these were included in petitioner’s input VAT claim in full amount.??”

Pursuant to Section 110(A)(2) of the NIRC of 1997, as amended, as implemented by Section 4.110-3 of RR No. 16-05, input VAT On capital goods purchases attributable to zero-rated sales may be claimed either in full during the month of acquisition, or spread over a period of time, depending on the aggregate acquisition cost of the capital goods in the calendar month. If the aggregate acquisition g.

17 No. 7, p. 6, Exhibit “P-31”.

Findings

Purchase of capital goods exceeding one (1) million with properly supported invoices other Findings on purchase of capital goods exceeding one (1) million

Purchase of

services supported by documents other than VAT invoices

Purchase of

capital goods exceeding one million supported by photocopied

Invoices

TOTAL

--· cost exceeds P1Million, the claim for input tax should be spread over 60 months or the estimated useful life of the capital goods, whichever is shorter. On the other hand, if aggregate acquisition cost does not exceed P1Million, the total input taxes shall be allowed as credit/refund in the month of acquisition. As correctly found by the ICPA, out of the P6,262,594.20 input VAT incurred by petitioner on current purchases of capital goods exceeding P1Million for CY 2012, only the input VAT amortization of P159,292.83 related to the P1,337,412.43 input VAT properly supported by VAT invoices shall be creditable for the four quarters of CY 2012, as follows: 118

Reference to

1st 2nd 3rd 4th

Allowable

ICPA Report

Quarter

Quarter

Quarter

Quarter

Total

Input Tax119

Annex 10 1 Q-a, Annex 10 2Q-a, Annex 10 3Q-a,

Annex 10 40-a

p 144 774.43 p 234 597.19 p 702 496.41 p 255 544.40 p 1 337 412.43 P159 292.83 Annex 10 1 Q-b, Annex 10 2Q-b, Annex 10 3Q-b,

Annex 10 4Q-b

- 247 351.95 112 401.09 4,528,282.01 4 888,035.05 -

Annex 10 2Q-c

- 37 146.72 - - 37,146.72 - --· -- 1'144,774.43 1'519,095.86 1'814,897.50 P4,783 826.41 P6 262 594.20 1'159 292.83 In sum, out of the declared total amount of P148,152,889.37 input VAT on current purchases for the four quarters of CY 2012, only the amount of P106,599,836.04 is validly supported by documents, computed as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Total

Input VAT on current purchases p 35 639 735.47

Less: Disallowances

Per !CPA Findings p 8 758 156.94 Per this Court's further verification 118 Annex 10, Exhibit "P-31".

119 Annex 12, Exhibit "P-31".

p 34 788 247.18 p 8 108,531.92 p 40 624 082.35 p 37 100 824.37 p 148 152 889.37 p 5,770 603.85 p 9J483 715.52 p 32 121 008.23 ..

-- ~

A. Input VAT on domestic purchases of services supported by

Official Receipts but

the amount of Input VAT claim is not separately indicated - 59 865.18 B. Input VAT on purchases of services supported by Official Receipts wherein the amount of claim is more than the amount reflected in the Official

Receipts

2 555 791.57 270 506.65 C. Input VAT on purchase of services wherein the supporting official receipt pertains to a different transaction - 149 209.52 Input VAT on current purchases of Capital Goods exceeding

P1Million

144 774.43 519 095.86

Less: Allowable Input

Tax Credit for the

period of claim 120 _(_3,016.13) (18 823.28)

Total Disallowances

p 11 455 706.81 p 9 088 385.85

Substantiated Input VAT

P24 184 028.66 P25 699,861.33 5 029.44 - 64 894.62 85 605.70 202 735.67 3 114 639.59 - - 149 209.52 814 897.50 4 783 826.41 6,262 594.20 (53 865.14) (83 588.28) (159,292.83) p 6 622 271.35 p 14 386 689.32 p 41,553 053.33 P34,001 811.00 P22,714,135.05 P106 599 836.04 However, records do not show that petitioner submitted its VAT invoices/official receipts proving the existence of its reported input VAT carry-over from previous quarter in the total amount of P260,050,405.20121 .

Thus, only the total valid input VAT of P106,599,836.04 should be applied against the reported output VAT liability for Cf 2012 of P5,480,879.29122. Consequently, only the remaining input VAT of P101,118,956.75 can be attributed to the entire zero-rated salesuk- 120 Annex 12, Exhibit "P-31".

121 Line 20F. Exhibit "P-5", Docket. Vol. III. o. 1830 - .

-

CY 2012

1st Quarter Deferred on Capital Goods from Previous Quarter

Line 20B

p 5 499,135.34

Others

Line 20E

254 551,269.86

Total

Line 20F

1"260,050,405.20 122

CY 2012

Output VAT

Exhibit

1st Quarter p 1 365 017.94

"P-5"

2nd Quarter 1,307,329.96

"P-6-a"

3rd Quarter 1 483 282.57

"P-7-a"

4th Quarter 1 325 248.82

"P-8"

Total

P5,480,879.29 amounting to P7,088,991,662.84 and only the input VAT of P68,879,499.15 is attributable to the valid zero-rated sales of P4,825,937,556.72, computed as follows: 1st Quarter 2nd Quarter

Valid Input VAT

p 24 184 028.66 p 25 699 861.33 Less: Output tax due 1 365 017.94 1 307 329.96

Excess Input VAT

P22 819 010.72 P24 392 531.37

Divide by Total Declared

Zero·Rated Sales

1,3S7 072 819.34 2 216 508 365.74

Multiply by Valid Zero-

Rated Sales

963 228 031.37 1 465 271 326.41

Excess Input VAT

attributable to Valid

Zero-Rated Sales

P16 196,559.58 P16,125 216.28 Petitioner's input VAT was not applied against any output VAT liability.

3rd Quarter 4th Quarter

Total

p 34 001 811.00 p 22 714 135.05 " 106 599 836.04 1 483 282.57 1 325 248.82 5 480 879.29 P32 518 528.43 P21 388 886.23 P101118 956.75 1 562,760 446.83 1 952 650 030.93 7 088 991 662.84 1 044 863 441.53 1 352 574 757.41 4 825 937 556.72 P21,741 925.70 P14,815 797.58 .. 68 879,499.15 Petitioner's input VAT claim of P147,159,034.53 was carried- over by petitioner in its succeeding Quarterly VAT Returns for the first123 and second124 quarters of CY 2013 as part of the allowable input taxes "Others". Nevertheless, the said amount remained unutilized until the same was deducted as "VAT Refund/TCC Claimed" in its Quarterly VAT Returns for the second, third and fourth quarters of CY 2013, as shown below:

Period when the CTACase No. Input VAT Claim claim was deducted

Exhibit125

8720 p 35,343,482.10 2nd Quarter of Cf 8736 34,618,094.91 2013

P-37

8754 40,305,286.80 3rd Quarter of CY 2013

P-38

8767 36,892,170.72 4th Quarter of Cf 2013

P-39

Total

P147,159,034.53 Therefore, the subject claims no longer formed part of the excess input VAT of P85,136,686.89126 as of the end of the fourth quarter of CY 2013 that was carried over to the succeeding taxable quarters of CY 2014127. As such, it eliminates the possibility that the present claims would be applied to future output VAT liability. ,1c- 123 Line 20E, Exhibit "P-36", Folder 5, Box 1. 124 Line 20E, Exhibit "P-37", Folder 5, Box 1. 125 Folder 5, Box 1.

WHEREFORE, premises considered, the instant Petitions for Review are PARTIALLY GRANTED. Accordingly, respondent is ORDERED TO REFUND or ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner in the amount of P68,879,499.15, representing the latter's unutilized excess input VAT attributable to its zero-rated sales for the four quarters of CY 2012.

WE CONCUR:

~ ..... ,t;:c. .~~ 9..

:fUANITO C. CASTANE6~,-JR.

Associate Justice

~

11 IV1~·~- G' ~

CIELITO ·~: MINDARO-GRULLA

Associate Justice

-- 1n.~VILLENA

ATTESTATION

I attest that the conclusions in the above Decision were reached in consultation before the cases were assigned to the writer of the opinion of the Court's Division. ~,., ,'frC.~04,. Q JUANITO c. CASTANEdA,' JR.

Associate Justice

Chairperson

CERTIFICATION

Pursuant to Article VIII, Section 13 of the Constitution, and the Division Chairperson's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the cases were assigned to the writer of the opinion of the Court.

Presiding Justice