Oncho Philippines Incorporated vs. Commissioner of Internal Revenue

DECISION

- CASTANEDA, JR., J.:

THE CASE

In this Petition for Review filed

by Oncho

Philippines

Incorporated on August 25, 2016, petitioner prays for the refund of the amount of P7,486,676.34, allegedly representing its unutilized input value-added tax (VAT) on local purchases of goods other than capital goods, local purchases of services, and payment for services rendered by non-residents, attributable to its zero-rated sales for the period covering January 1, 2014 to December 31, 2014. 1

THE FACTS

Petitioner Oncho Philippines Incorporated is a corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with principal office address at 4 th Floor G.A. Yupangco Building, 339 Gil Puyat Ave. corner N. Garcia St., 1t-

Makati City. 2 It is a VAT-registered entity with Taxpayer Identification No. 003-982-227-000, as evidenced by its Bureau of

Internal

Revenue

(BIR)

Certificate

of

Registration

No.

OCN9RC0000371397 dated July 22, 2013.3 On the other hand, respondent is the duly appointed Commissioner of the Bureau of Internal Revenue who has the power to decide disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties imposed in relation thereto or other matters arising under the National Internal Revenue Code (NIRC) or other laws or portions thereof administered by the BIR. He holds office at the BIR National Office Building, Agham Road, Diliman, Quezon City.

In its Amended Articles of Incorporation4, petitioner's primary purposes are as follows:

"To the extent permitted by law, to carry on and conduct general as well as specialty (including but not limited to air-condition, fire-protection, and plumbing systems) construction business except locally funded government projects, including the provision of structural mechanical, electrical and other construction, erection, installation, repair, and related services or otherwise engage in any related work or residential, industrial, and commercial buildings; to manufacture or otherwise acquire and furnish such buildings with tools and equipment connected therewith or required therefore; to manufacture, produce, adapt and prepare and deal in or with any materials, articles or things incidental to or required for or useful in connection with any of such activity; and generally to carry on any other business which can be advantageously pursued in conjunction with or incidental to any of the above purposes." For calendar year (CY) 2014, petitioner filed with the BIR its Monthly VAT Declarations, as follows: 5 ~

MONTHLY VAT

DECLARATION

(2014)

January

February

March

April

May

June

July

August

September

October

November

December

DATE FILED

February 12, 2014 March 13, 2014 April 15, 2014 May 15, 2014 June 16, 2014 July 14, 2014 August 14, 2014 September 17, 2014 October 15, 2014

November 17L 2014

December 17, 2014 January 26, 2015 Petitioner also filed its Quarterly and Annual Income Tax Returns for CY 2014 with the BIRon the following dates: 6

QUARTERLY

VAT RETURN

{2014)

DATE FILED

First Quarter

July 18 2014 (Amended)

Second Quarter

August 29, 2014

Third Quarter

March 201 2015 (Amended)

Annual ITR

April 10, 2015 Petitioner's VAT Returns showed excess input VAT payments on its importation and domestic purchases of goods and services in the aggregate amount of P7,486,676.34. 7 Petitioner filed its administrative claim for refund, together with all the supporting documents, with the BIR Revenue District Office No. 49 on March 31, 2016.8 Subsequently, petitioner filed the instant Petition for Review9 before this Court on August 25, 2016. In the Answer10 filed on October 28, 2016, respondent alleged the following special and affirmative defenses: rtz-

"xxx

XXX

XXX

2. Taxes paid and collected are presumed to be made in accordance with the laws and regulations, hence, not refundable;

3. It is incumbent upon the Petitioner to show that it has complied with the provision of Section 204(C) in relation to Section 229 of the 1997 Tax Code, as amended;

4. Petitioner's claim for refund or issuance of tax credit certificate in the amount of Php7,486,676.34 as alleged unutilized input VAT paid on purchases of goods and services attributable to its zero-rated sales for the taxable year 2014 was not fully substantiated by proper documents, such as sales invoices, official receipts and others.

5. In an action for tax credit or refund, the burden is upon the taxpayer to prove that he is entitled thereto, and failure to discharge the said burden is fatal to the claim (Emmanuel & Zenaida Aguilar v. Commissioner, CA- GR No. Sp. 16432, March 30, 1990 cited in Aban, Law of Basic Taxation in the Philippines, 1st Edition, p. 206. );

6. Claims for refund are construed strictly against the claimant, the same partake the nature of exemption from taxation (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA 95) and as such, they are looked upon with disfavor. (Western Minolco Corp. vs. Commissioner of Internal Revenue, 124 SCRA 121)." On November 16, 2016, petitioner filed its Reply11 to respondent's Answer stating, among others, that contrary to respondent's allegations, it has clearly complied with the pertinent provisions of the Tax Code and applicable revenue regulations. h..

Petitioner filed its Pre-Trial Brief12 on January 13, 2017, while respondent filed his Pre-Trial Brief13 on January 4, 2017. The parties filed their Joint Stipulation of Facts and Issues14 on March 8, 2017. Afterwards, the Court issued a Pre-Trial Order on March 15, 201715 and terminated the pre-trial. During trial, petitioner presented Ms. Flordeliza J. Bondad and Mr. Michael L. Aguirre, the Independent Certified Public Accountant (CPA) for the case, as its witnesses. Subsequently, petitioner formally offered its documentary and testimonial evidence. On September 15, 201716 and on November 24, 2017,17 respectively, the Court issued its Resolutions admitting petitioner's evidence, except for Exhibit "P-38" for failure to submit the duly marked document.

On the other hand, respondent, through counsel, manifested that he has no witness to present. 18 After the filing of petitioner's Memorandum19 on October 18, 2017 and of respondent's Memorandum20 on December 27, 2017, this case was deemed submitted for decision on January 22, 2018.21

THE ISSUE

The parties submitted the following issue: 22 "Whether or not the Petitioner is entitled to the issuance of cash refund/tax refund in the amount of Php7,486,676.34, representing its alleged unutilized excess input VAT on its local purchases of goods and services attributable to zero-rated sales, for the period January 1, 2014 to December 31, 2014."~

THE RULING

Section 112(A) and (C) of the NIRC of 1997, as amended, 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 8angko Sentral ng Pilipinas (8SP): 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 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 1t- 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."

Thus, in order to be entitled to a refund or tax credit of unutilized input VAT attributable to zero-rated or effectively zero- rated sales, it is imperative to prove the following:

1. that the taxpayer is VAT-registered;

2. that the claim for refund was filed within the prescriptive period both in the administrative and judicial levels;

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

4. that input taxes were incurred or paid;

5. that the input taxes due or paid were attributable to zero-rated sales or effectively zero-rated sales; and

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

Petitioner complied with the first requisite as it is duly registered with the BIR as a VAT taxpayer, as evidenced by its Certificate of Registration No. OCN9RC0000371397 dated July 22, 2013 with Tax Identification No. 003-982-227-000.23 As to the timeliness of petitioner's administrative claim, which must be filed with the BIR within two (2) years after the close of the taxable quarter when the zero-rated or effectively zero-rated sales were made, the following periods are relevant: Period covered Last day of the

(CY 2014)

Two-year period January to March 2014 (l5t Quarter) March 31, 2016

June 30, 2016 Se tember 30, 2016 December 31, 2016 Clearly, petitioner's administrative claim24 was timely filed on March 31, 2016.

As to the timeliness of petitioner's judicial claim, Section 112(C) of the NIRC of 1997, as amended, provides that the BIR Commissioner has one hundred twenty (120) days from the date of submission of the complete documents in support of the application for refund or tax credit within which to grant or deny the claim. In case of full or partial denial by the BIR Commissioner, the taxpayer's recourse is to file an appeal before the Court of Tax Appeals within 30 days from receipt of the decision of the BIR Commissioner. However, if after the 120-day period, the BIR Commissioner fails to act on the application for refund/tax credit, the remedy of the taxpayer is to appeal the inaction of the BIR Commissioner to the CTA within 30 days from the expiration of the said period. Accordingly, from the filing of petitioner's administrative claim, together with the supporting documents, on March 31, 2016, respondent had one hundred twenty (120) days or until July 29, 2016 to act on the said claim. Considering that respondent did not act on petitioner's claim on or before July 29, 2016, the latter had until August 28, 2016, the last day of the 30-day period, within which to file its appeal before this Court. Evidently, petitioner's judicial claim filed on August 25, 2016 is well within the period prescribed by law. As to the third requisite, petitioner claims that it rendered services to entities which have exemption under special laws, such as Philippine Economic Zone Authority (PEZA)-registered entities, wherein such services are subject to zero-percent (0°/o) VAT pursuant to Section 108(8)(³) of the NIRC of 1997, as amended, which states: "SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties. - (A) Rate and Base of Tax. -

XXX

XXX

XXX Jc-

(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°/o) rate:

XXX

XXX

XXX

(3) Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0°/o) rate;" Section 4.108-5(b )(3) of Revenue Regulations (RR) No. 16- 2005, which implements the foregoing, provides: "SEC. 4.108-5. Zero-Rated Sale of Services. -

XXX

XXX

XXX

(b) Transactions Subject to Zero Percent (0%) VAT Rate. - The following services performed in the Philippines by a VAT-registered person shall be subject to zero percent (0°/o) VAT rate:

XXX

XXX

XXX

(3) Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0°/o) rate;" The special law specific pertinent to this case is Republic Act (RA) No. 7916, as amended, otherwise known as "The Special Economic Zone Act of 1995". The relevant portions of the said law are quoted hereunder:

"REPUBLIC ACT NO. 7916 (as amended by Republic Act No. 8748) cr--

AN ACT PROVIDING FOR THE LEGAL FRAMEWORK AND

MECHANISMS FOR THE CREATION, OPERATION, ADMINISTRATION, AND COORDINATION OF SPECIAL ECONOMIC ZONES IN THE PHILIPPINES, CREATING FOR THIS PURPOSE, THE PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA) AND FOR OTHER PURPOSES.

XXX

XXX

XXX

SECTION 8. ECOZONE to be Operated and Managed as Separate Customs Territory. - The ECOZONE shall be managed and operated by the PEZA as separate customs territory.

The PEZA is hereby vested with the authority to issue certificates of origin for products manufactured or processed in each ECOZONE in accordance with the prevailing rules of origin, and the pertinent regulations of

the Department of Trade and Industry and/or the

Department of Finance.

XXX

XXX

XXX

SECTION 24. Exemption from National and Local Taxes.- Except for real property taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE. xxx" Since the Ecozone is viewed as a foreign territory by legal fiction, sales of goods and services made by a VAT-registered person in the Philippine customs territory to an entity registered and operating within the Ecozone are considered exports to a foreign country subject to 0°/o VAT. This was elucidated by the Supreme Court in the case of Commissioner of Internal Revenue vs. Toshiba Information Equipment {Phils.}, Inc.25, to wit: "This

Court

agrees, however, that

PEZA-

registered enterprises, which would necessarily be located within ECOZONES, are VAT-exempt ?t-

entities, not because of Section 24 of Rep. Act No. 7916, as amended, which imposes the five percent (5°/o) preferential tax rate on gross income of PEZA-registered enterprises, in lieu of all taxes; but, rather, because of Section 8 of the same statute which establishes the fiction that ECOZONES are foreign territory. xxx An ECOZONE or a Special Economic Zone has been described as- [S]elected areas with highly developed or which have the potential to be developed into agro-industrial, industrial, tourist, recreational, commercial, banking, investment and financial centers whose metes and bounds are fixed or delimited by Presidential Proclamations. An ECOZONE may contain any or all of the following: industrial estates (IEs), export processing zones (EPZs), free trade zones and tourist/recreational centers.

The national territory of the Philippines outside of the proclaimed borders of the ECOZONE shall be referred to as the Customs Territory. Section 8 of Rep. Act No. 7916, as amended, mandates that the PEZA shall manage and operate the ECOZONES as a separate customs territory; thus, creating the fiction that the ECOZONE is a foreign territory. As a result, sales made by a supplier in the Customs Territory to a purchaser in the ECOZONE shall be treated as an exportation from the Customs Territory. Conversely, sales made by a supplier from the ECOZONE to a purchaser in the Customs Territory shall be considered as an importation into the Customs Territory. Given the preceding discussion, what would be the VAT implication of sales made by a supplier from the Customs Territory to an ECOZONE enterprise? lt--

The Philippine VAT system adheres to the Cross Border Doctrine, according to which, no VAT shall be imposed to form part of the cost of goods destined for consumption outside of the territorial border of the taxing authority. Hence, actual export of goods and services from the Philippines to a foreign country must be free of VAT; while, those destined for use or consumption within the Philippines shall be imposed with ten percent (10°/o) VAT26." (Emphasis supplied) Evidently, sales of services by petitioner to entities located in Ecozones are subject to zero percent (0°/o) VAT rate pursuant to Section 108(8)(3) of the NIRC of 1997, as amended, and as implemented by Section 4.108-5(b)(3) of Revenue Regulations No. 16-05.

Petitioner submitted the following

PEZA

Certificates of

Registration of its clients to prove that the said clients are duly registered with the PEZA:

PEZA Certificate

Client

No.

Exhibit Reference

BeltonTotoku Philippines, Inc. (formerly Totoku 2014-0037

Exhibit "P-7-A-ICPA"

Philippines Inc.)

Canon Business Machine (Philippines), Inc. 2014-0089 Exhibit "P-26-A"27; "P-7-B-ICPA" Epson Precision (Philippines), Inc. 2014-0665 Exhibit "P-26-8"2!!. "P-7-C-ICPA"

Gotoh Philippines Corporation

2014-0216

Exhibit "P-26-C"29 • "P-7-D-ICPA"

Hadoron Studio, Inc 2014-1204 Exhibit "P-7-E-ICPA";

MSpecialty Printing Philippines Inc. 2014-1632 Exhibit "P-26''30; "P-7-F-ICPA" OB Kogyo (Philippines), Inc. 2014-1301 Exhibit "P-26-0"31; "P-7-G.1- ICPA" TO "P-7-G.2-ICPA"

Shindengen Philippines Corporation

2014-0835 Exhibit "P-26-F"32; "P-7-H.1- ICPA" TO "P-7-H.3-ICPA" SIIX EMS Philippines, Inc.

2014-0341 Exhibit "P-26-E"33; "P-7-1.1- ICPA" TO "P-7-H.3-ICPA" Accordingly, the sales made to the above-enumerated entities during the four quarters of CY 2014 qualify for VAT zero-rating pursuant to Section 108(8)(3) of the NIRC of 1997, as amended,~

provided that the same comply with the invoicing requirements under 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), (B)(1) and (2)( c) of RR No. 16-05, which are all quoted hereunder for easy reference:

"SEC. 113. Invoicing and Accounting Requirements for 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°/o) 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" (Emphasis supplied) "SECTION 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. 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 :7"2-

CfA Case No. 9442

(c) If the sale is subject to zero percent (0°/o) VAT, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt;" (Emphasis supplied) In its Original and Amended Quarterly VAT Returns for CY 2014, petitioner declared zero-rated sales in the total amount of P104,689,860.42, broken down as follows:

Taxable Period

Exhibit

{2014)

Zero-Rated Sales

P-8

1st Quarter p 18,452,148.23

P-11

2nd Quarter 32 296,906.79

P-14

3rd Quarter 22 743 789.95

P-17

4th Quarter 31 197,015.45

TOTAL

P104,689,860.42 In support of the foregoing, petitioner presented its Schedule of Zero-rated Receipts34 together with the purported official receipts35 • Upon verification of the official receipts supporting petitioner's zero-rated sales, the Court finds the amount of P⁴,970,051.04 should be denied VAT zero-rating for the reasons stated hereunder:

Findings

Reference Exhibit

Amount

The purported supporting official receipt does not tally with the claimed amount of zero-rated sales Canon Business Machines (Philippines), Inc. Exhibit P-8.1-AS-ICPA The purported supporting official receipts are unreadable Canon Business Machines (Philippines), Inc. Exhibit P-8.1-AV-ICPA Belton Totoku Philippines Inc. Exhibit P-8.1-AU-ICPA Supported by official receipt with incomplete date OB Kogyo (Philippines) Inc. Exhibit P-8.1-AY-ICPA Overclaimed zero-rated sales Exhibit P-8.1-BB-ICPA Hadoron Studion, Inc.

Per schedule P510000.00 Per supporting OR P500,000.00 Epson Precision (Philippines), Inc. Exhibit P-8.1-BF-!CPA Per schedule P648000.00 34 Annex A.1 of Exhibit "P-47" (Independent CPA Report). 35 Exhibits "P-8.1-A-ICPA" to "P-8.2-BT-ICPA". p 1 238 899.20 603 500.00 1,580 000.00 1,200,000.00 10,000.00 12,960.00

J Per supporting OR P63~ 040.00 I The official receipt issued does not indicate that the payment pertains to zero-rated sales

Gotoh Philippines Corporation

Exhibit P-8.1-BS-ICPA 324,691.84

TOTAL

P4,970,051.04 Hence, out of the total reported zero-rated sales of P104,689,860.42, only the amount of P99,719,809.38 (P104,689,860.42 less P4,970,051.04) represents petitioner's valid zero-rated sales.

Having resolved that petitioner had valid VAT zero-rated sales of P99,719,809.38 for CY 2014, the Court will now determine the amount of input VAT attributable thereto. In its Original and Amended Quarterly VAT Returns for calendar year 2014, petitioner declared input VAT in the total amount of P12,756,884.44, broken down as follows:

Domestic Purchases

Domestic

of Goods other than

Purchases of

Exhibit

Period Covered

Capital Goods

Services

Total

P-8

1st Quarter p 1,329,020.39 p 1 479,825.22 p 2,808,845.61

P-11

2nd Quarter 2,502,244.67 2 068,155.31 4,570,399.98

P-14

3rd Quarter 972,146.14 1171,187.56 2,143,333.70

P-17

4th Quarter 1 682,993.48 1 551,311.67 3 234 305.15

Total

P6,486,404.68 P6,270,479.76 P12,756,884.44 To substantiate the foregoing, petitioner presented in evidence the official receipts and invoices issued by its suppliers. Upon examination, the Independent CPA, Mr. Michael L. Aguirre, noted the following exceptions in his Report: 36

Reference

Reference

Particulars

Input VAT

Annex

Exhibit

Lack of information/noncompliance with invoicing requirements of Official Receipt

i. Quantity and unit cost not indicated p 4,499.17 Annex C.1-ICPA

Exhibit P-10-A to

P-10-5-ICPA

ii. VAT not separately indicated 472.61 Annex C.1-ICPA

Exhibit P-10-T to

P-10-Z-ICPA

No Authority to Print

Not a valid source of input VAT Out of period documents Unreadable entries in the documents Amount per source document not tally with schedule Unsupported purchases

Total

212.19 Annex C.2-ICPA 169 102.85 Annex C.3-ICPA 105,863.36 Annex C.4-ICPA 170,626.14 Annex C.⁵-ICPA 56,738.52 Annex C.⁶-ICPA

Exhibit P-10-AA to P-10-AS-ICPA

1 795,418.90 Annex C.⁷-ICPA P2,302,933.74 The Court finds the foregoing exceptions in order. Thus, the amount of P2,302,933.74 shall be disallowed for petitioner's failure to meet the substantiation requirements under Sections 110(A), 113(A) and (B), in relation to Sections 237 and 238 of the NIRC of 1997, as amended, and as implemented by Sections 4.110-1, 4.110-2, 4.110- 8, and 4.113-1 of RR No. 16-05, as amended. Further verification of the Independent CPA Report and the supporting documents reveals that the additional input VAT of P2,491,962.22 shall likewise be disallowed for the reasons stated below:

Findings

Input vat

Reference

1. Purchases of services supported by documents other than VAT official receipts A.B. Franco Builders and Development Corp. p 8,678.57

Exhibit P-9-B-ICPA

Zygnus Sign Services

535.71

Exhibit P-9-BF-ICPA

Zygnus Sign Services

160.71

Exhibit P-9-BG-ICPA

Lon Works Enterprises

5,560.71

Exhibit P-9-CH-ICPA

A.B. Franco Builders and Development Corp. 4,821.43

Exhibit P-9-0-ICPA

Lon Works Enterprises

38,571.43

Exhibit P-9-CO-ICPA

Fuji Xerox Philippines, Inc. 203.40

Exhibit P-9-NH-ICPA

Lon Works Enterprises

32,904.87

Exhibit P-9-ADA-ICPA

Firethunder Inc.

15,331.72

Exhibit P-9-ADB-ICPA

Lon Works Enterprises

2,571.43

Exhibit P-9-ADH-ICPA

Firethunder Inc.

43,218.85

Exhibit P-9-AGE-ICPA

Lon Works Enterprises

10,703.57

Exhibit P-9-ALO-ICPA

Lon Works Enterprises

6,000.00

Exhibit P-9-ALP-ICPA

Lon Works Enterprises

3,214.29

Exhibit P-9-ALQ-ICPA

Fluid Systems & Design, Inc. 11,785.71

Exhibit P-9-ARZ-ICPA

Lon Works Enterprises

5,400.00

Exhibit P-9-ATD-ICPA

Lon Works Enterprises

14,700.00

Exhibit P-9-ATE-ICPA

Ruth land Trading & Construction 20,892.86

Exhibit P-9-AUO-ICPA

Lon Works Enterprises

5,357.14

Exhibit P-9-AZX-ICPA

Lon Works Enterprises

2,464.29

Exhibit P-9-AZY-ICPA

Firethunder Inc.

5,357.14

Exhibit P-9-BEL-ICPA

Firethunder Inc.

7,500.00

Exhibit P-9-BKF-ICPA

Niagara Industrial Equipment Corporation

4,821.43

Exhibit P-9-BLW-ICPA

GNR Industrial Services

2,785.71

Exhibit P-9-BNE-ICPA

Four Corners Construction & Development Services

65,505.21

Exhibit P-9-BRX-ICPA

Equiplinknet Trade & Services

17,785.71

Exhibit P-9-BSG-ICPA

Sub-total

I

p 336,831.891

2. Purchases of goods supported by documents other than VAT invoices

Oriental Photographix & Equipment Company

p 3.75

Exhibit P-9-EB-ICPA

Bagong Calzada Enterprises

12,375.00 Exhibit P-9-MB-ICPA

Sub-total

p 12,378.75

3. Input VAT on purchases of goods/services supported by computer-generated VAT invoices/official receipts with alterations/insertions of petitioner's TIN and/or address/VAT amount but without countersignature of the issuer Canon Marketing (Philippines), Inc. p 921.43

Exhibit P-9-N-ICPA

Canon Marketing (Philippines), Inc. 1,200.00 Exhibit P-9-0-ICPA Innove Communications, Inc. 245.89

Exhibit P-9-AH-ICPA

Innove Communications, Inc. 1,329.49 Exhibit P-9-AI-ICPA Sta. Elena Properties Inc 428.57

Exhibit P-9-AZ-ICPA

Litekon Buildtek Corporation

160.71

Exhibit P-9-CL-ICPA

Castech Ind'l Sales, Inc.

2,100.00

Exhibit P-9-DA-ICPA

Greenmetal Electric Manufacturing Corp. 40,178.57

Exhibit P-9-DH-ICPA

Canon Marketing (Philippines), Inc. 1,200.00 Exhibit P-9-DM-ICPA Innove Communications, Inc. 245.89

Exhibit P-9-FE-ICPA

A.B. Franco Builders and Development Corp. 4,435.71

Exhibit P-9-FG-ICPA

A.B. Franco Builders and Development Corp. 4,917.86

Exhibit P-9-FH-ICPA

A.B. Franco Builders and Development Corp. 1,285.71

Exhibit P-9-FI-ICPA

A.B. Franco Builders and Development Corp. 11,250.00 Exhibit P-9-FJ-ICPA A.B. Franco Builders and Development Corp. 108,000.00 Exhibit P-9-FK-ICPA A.B. Franco Builders and Development Corp. 8,871.43

Exhibit P-9-FL-ICPA

Canon Marketing (Philippines), Inc. 921.43

Exhibit P-9-GR-ICPA

Canon Marketing (Philippines), Inc. 717.86

Exhibit P-9-GS-ICPA

Castech Ind'l Sales, Inc.

2,100.00

Exhibit P-9-GV-ICPA

Innove Communications, Inc. 245.89

Exhibit P-9-IF-ICPA

Innove Communications, Inc. 1,292.82 Exhibit P-9-IG-ICPA Canon Marketing (Philippines), Inc. 910.71

Exhibit P-9-MK-ICPA

Greenmetal Electric Manufacturing Corp. 80,357.14

Exhibit P-9-NX-ICPA

McGraw Engineering

22,500.00

Exhibit P-9-PC-ICPA

Anako Philippines Corp.

13,392.86 Exhibit P-9-TA-ICPA Anako Philippines Corp.

58,928.57

Exhibit P-9-TB-ICPA

Daikin Airconditioning Philippines Inc. 582,857.14

Exhibit P-9-TO-ICPA

Litekon Buildtek Corporation

1,731.43

Exhibit P-9-WO-ICPA

Litekon Buildtek Corporation

10,388.57 Exhibit P-9-WP-ICPA

Litekon Buildtek Corporation

8,035.71

Exhibit P-9-WQ-ICPA

Meridien Business Leader, Inc 64.18

Exhibit P-9-WW-ICPA

Punongbayan & Araullo

13,200.00 Exhibit P-9-YS-ICPA Puyat Steel Corp.

3,857.14

Exhibit P-9-YT-ICPA

Weathertech Refrigeration & Aircon Co. 12,535.71

Exhibit P-9-AAQ-ICPA

RTL Industries

4,500.00

Exhibit P-9-ABC-ICPA

FPIP Utilities, Inc.

4,800.00

Exhibit P-9-ABF-ICPA

Canon Marketing (Philippines), Inc. 680.36

Exhibit P-9-ABN-ICPA

Canon Marketing (Philippines), Inc. 1,141.67 Exhibit P-9-AB0.1 toP- 9-ABO. 2-ICPA

Punongbayan & Araullo

11,880.00 Exhibit P-9-ABR-ICPA Greenmetal Electric Manufacturing Corp. 375.00

Exhibit P-9-ACB-ICPA

Sherwood Hills Golf Club, Inc. 535.71

Exhibit P-9-ACV-ICPA

Power 08 Transport Service

471.43

Exhibit P-9-ACW-ICPA

Daikin Airconditioning Philippines Inc. 96,428.57 Exhibit P-9-ADG.1 to P-

Anako Philippines Corp.

FPIP Utilities, Inc.

Canon Marketing (Philippines), Inc. Delta Star Power Mfg. Corp.

Unitec Pipe Manufacturing Corporation

Unitec Pipe Manufacturing Corporation

ACW CompuADD, Inc.

Ace Hardware Philippines Inc

Anako Philippines Corp.

Anako Philippines Corp.

Anako Philippines Corp.

Anako Philippines Corp.

Canon Marketing (Philippines), Inc. Canon Marketing (Philippines), Inc.

Electroworld Inc

Litekon Buildtek Corporation

Unitec Pipe Manufacturing Corporation

Anako Philippines Corp.

Daikin Airconditioning Philippines Inc. Greenmetal Electric Manufacturing Corp. Greenmetal Electric Manufacturing Corp.

JNJKONS ENTERPRISE

Anako Philippines Corp.

Anako Philippines Corp.

Anako Philippines Corp.

Anako Philippines Corp.

Greenmetal Electric Manufacturing Corp. Greenmetal Electric Manufacturing Corp.

Litekon Buildtek Corporation

Canon Marketing (Philippines), Inc. Daikin Airconditioning Philippines Inc.

Inbilla Trading

Canon Marketing (Philippines), Inc. Adi-Asianic Distributors, Inc Kultura Store, Inc.

FPIP Utilities, Inc.

Philippine Insulation Co., Inc Anako Philippines Corp.

Litekon Buildtek Corporation

Mantrade Development Corp.

FPIP Utilities, Inc.

Greenmetal Electric Manufacturing Corp.

Unitec Pipe Manufacturing Corporation

Daikin Airconditioning Philippines Inc. Daikin Airconditioning Philippines Inc.

MRV Refrigeration & Air Conditioning Parts &

Supplies

Litekon Buildtek Corporation

9-ADG.2-ICPA 2,357.14

Exhibit P-9-ADI-ICPA

1,232.92 Exhibit P-9-ADJ-ICPA 557.14

Exhibit P-9-AEG-ICPA

69,642.86

Exhibit P-9-AEJ-ICPA

2,357.14

Exhibit P-9-AFL-ICPA

2,089.29 Exhibit P-9-AFM.1 to P- 9-AFM.2-ICPA 1,821.43

Exhibit P-9-AFN-ICPA

9.59

Exhibit P-9-AHH-ICPA

642.86

Exhibit P-9-AII-ICPA

642.86

Exhibit P-9-AIJ-ICPA

1,767.86 Exhibit P-9-AIK-ICPA 6,964.29

Exhibit P-9-AIL-ICPA

516.43

Exhibit P-9-AIQ-ICPA

876.43

Exhibit P-9-AIR-ICPA

162.86 Exhibit P-9-AJA-ICPA 9,642.86

Exhibit P-9-ALM-ICPA

3,107.14

Exhibit P-9-AQL-ICPA

4,285.71

Exhibit P-9-ARK-ICPA

4,285.71

Exhibit P-9-ARU-ICPA

3,000.00

Exhibit P-9-ASK-ICPA

13,392.86 Exhibit P-9-ASL-ICPA 819.65

Exhibit P-9-ASQ-ICPA

10,500.00 Exhibit P-9-AVX-ICPA 1,392.86 Exhibit P-9-AVY-ICPA 321.43

Exhibit P-9-AWM-ICPA

1,285.71

Exhibit P-9-AWN-ICPA

300.00

Exhibit P-9-AWQ-ICPA

6,428.57

Exhibit P-9-AWR-ICPA

257.14

Exhibit P-9-AXJ-ICPA

557.14

Exhibit P-9-AXX-ICPA

278,571.42 Exhibit P-9-AZT.1 to P- 9-AZT.2-ICPA 855.00 Exhibit P-9-BBM-!CPA 642.86

Exhibit P-9-BDE-ICPA

74.89

Exhibit P-9-BEX-ICPA

112.42

Exhibit P-9-BFU-ICPA

1,200.00 Exhibit P-9-BIZ-ICPA 31,629.77 Exhibit P-9-BU-!CPA 3,277.50

Exhibit P-9-BMA-ICPA

5,194.29

Exhibit P-9-BPN-ICPA

875.11

Exhibit P-9-BPR-ICPA

4,200.00 Exhibit P-9-BPS-!CPA 7,767.86

Exhibit P-9-BRT-ICPA

964.29

Exhibit P-9-BVC-ICPA

4,178.57

Exhibit P-9-BVN-ICPA

4,392.86

Exhibit P-9-BVO-ICPA

11,640.54 Exhibit P-9-BVX.1 to 9- BVX.4-ICPA 22,500.00 Exhibit P-9-BXG.1 to 9- BXG.2-ICPA

Daikin Airconditioning Philippines Inc. Daikin Airconditioning Philippines Inc. Greenmetal Electric Manufacturing Corp. Weathertech Refrigeration & Aircon Co. Weathertech Refrigeration & Aircon Co. Weathertech Refrigeration & Aircon Co. Daikin Airconditioning Philippines Inc.

Sub-total

107,035.71

Exhibit P-9-BYI-ICPA

32,142.86

Exhibit P-9-BYJ-ICPA

1,339.29 Exhibit P-9-BYK-ICPA 2,785.71

Exhibit P-9-BYU-ICPA

36,717.86 Exhibit P-9-BYV.1 to 9- BYV.2-ICPA 5,357.14

Exhibit P-9-BYW-ICPA

2,464.29

Exhibit P-9-BYX-ICPA

P1,838,759.28

4. Input VAT on purchases of goodsjse/Vices supported by VAT invoices/official receipts with incorrect/without TIN of petitioner/with correction on TIN but without countersignature of the issuer ACW CompuADD, Inc.

p 1,982.14 Exhibit P-9-D-ICPA Alphabuilt Mercantile Corp. 15,410.36 Exhibit P-9-FV.2-ICPA ACW CompuADD, Inc.

750.00

Exhibit P-9-FM-ICPA

Alphabuilt Mercantile Corp. 41,250.00

Exhibit P-9-GB-ICPA

Alphabuilt Mercantile Corp. 4,071.43

Exhibit P-9-GC-ICPA

Chow Rite Foods, Inc.

37.93

Exhibit P-9-GY-ICPA

Circulated Electrical Supply

81.43

Exhibit P-9-GZ-ICPA

FJord International Corporation

31.07

Exhibit P-9-HM-ICPA

Fresh N Famous Foods Inc

50.57

Exhibit P-9-HR-ICPA

Fresh N Famous Foods Inc

48.86

Exhibit P-9-HS-ICPA

Fresh N Famous Foods Inc

50.57

Exhibit P-9-HT-ICPA

Hapee's Sizzling Foods

37.82

Exhibit P-9-IA-ICPA

Hapee's Sizzling Foods

12.86 Exhibit P-9-IB-ICPA

Oriental Photographix & Equipment Company

4.28

Exhibit P-9-JM-ICPA

Oriental Photographix & Equipment Company

2.14

Exhibit P-9-JN-ICPA

Peterson Enterprises Corp.

21.42

Exhibit P-9-JR-ICPA

Smart Communications, Inc 375.00

Exhibit P-9-KP-ICPA

Smart Communications, Inc 504.48

Exhibit P-9-KQ-ICPA

Tropical Hut Food Market, Inc 36.96

Exhibit P-9-LD-ICPA

ACW CompuADD, Inc.

535.71

Exhibit P-9-LN-ICPA

ACW CompuADD, Inc.

535.71

Exhibit P-9-LO-ICPA

Andenson Enterprises

10.71

Exhibit P-9-TC-ICPA

Charle's Cellzone

53.57

Exhibit P-9-TL-ICPA

Jollibee Foods Corporation

40.72 Exhibit P-9-vG-ICPA

Jollibee Foods Corporation

41.79 Exhibit P-9-vH-ICPA

Jollibee Foods Corporation

27.86

Exhibit P-9-VI-ICPA

Jollibee Foods Corporation

40.18 Exhibit P-9-vK-ICPA

Jollibee Foods Corporation

27.32

Exhibit P-9-VL-ICPA

Jollibee Foods Corporation

40.39

Exhibit P-9-VM-ICPA

Jollibee Foods Corporation

51.64

Exhibit P-9-VN-ICPA

Jollibee Foods Corporation

40.71

Exhibit P-9-VO-ICPA

Kimly Enterprises

24.11

Exhibit P-9-VR-ICPA

Luckwealth Trading

20.36

Exhibit P-9-WR-ICPA

Mang !nasal 48.64

Exhibit P-9-WS-ICPA

Orisun Enterprises Construction Supply/Hand and

31.61

Exhibit P-9-XU-ICPA

Power Tools

Paciano Metro Calamba Star Foods Inc

13.82 Exhibit P-9-XV-ICPA Robinsons Handyman Inc.

62.09

Exhibit P-9-YV-ICPA

Screwtech Bolts & Nuts

35.79

Exhibit P-9-YY-ICPA

XYZ Hardware and Construction Supply

75.54

Exhibit P-9-AAR-ICPA

XYZ Hardware and Construction Supply

XYZ Hardware and Construction Supply

XYZ Hardware and Construction Supply

XYZ Hardware and Construction Supply

XYZ Hardware and Construction Supply

ACW CompuADD, Inc.

ACW CompuADD, Inc.

Fresh N Famous Foods Inc

ACW CompuADD, Inc.

ACW CompuADD, Inc.

XYZ Hardware and Construction Supply

ACW CompuADD, Inc.

Azami Restaurant

ACW CompuADD, Inc.

ACW CompuADD, Inc.

Four Corners Construction & Development Services

New Alfred Merchandising Corp. New Alfred Merchandising Corp.

Newtex Commercial Center

Sheraton Plumbing & Construction Supply

Sin Jiang Trading Corporation

Charle's Cellzone

New Ez Kleen Portalet Corporation

Cerplas Enterprises

ACW Compu ADD, Incorporated

Abenson Ventures Inc

Alphabuilt Mercantile Corp. Alphabuilt Mercantile Corp. Pressure Enthalpy Management System Corp. Alphabuilt Mercantile Corp.

Sub-total

p 13.93 Exhibit P-9-AAS-ICPA 32.14 Exhibit P-9-AAT-ICPA 100.71

Exhibit P-9-AAU-ICPA

55.71

Exhibit P-9-AAV-ICPA

8.57

Exhibit P-9-ABB-ICPA

1,821.43 Exhibit P-9-AFN-ICPA 750.00 Exhibit P-9-AHL-ICPA 49.07 Exhibit P-9-AJN-ICPA 1,071.43 Exhibit P-9-AQW-ICPA 1,446.43 Exhibit P-9-AZC-ICPA 131.25 Exhibit P-9-BAS-ICPA 2,142.86 Exhibit P-9-BBI-ICPA 928.24 Exhibit P-9-BBS-ICPA 375.00 Exhibit P-9-BDL-ICPA 375.00

Exhibit P-9-BDQ-ICPA

5,142.86 Exhibit P-9-BEA-ICPA 9.64 Exhibit P-9-BGW-ICPA 62.14 Exhibit P-9-BGX-ICPA 19.29 Exhibit P-9-BHG-ICPA 32.61

Exhibit P-9-BHR-ICPA

7.28

Exhibit P-9-BHV-ICPA

52.50

Exhibit P-9-BLR-ICPA

910.71

Exhibit P-9-BL Y-ICPA

32.14 Exhibit P-9-BME-ICPA 1,607.14 Exhibit P-9-BPT-ICPA 176.36 Exhibit P-9-BQM-ICPA 3,851.78 Exhibit P-9-BTC.1 to 9- BTC.3-ICPA 24,471.43 Exhibit P-9-BXB.1 to 9- BXB.2-ICPA 26,400.00 Exhibit P-9-BXM-ICPA 2,142.86 Exhibit P-9-CAB-ICPA 140,738.10

5. Input VAT on purchases of goods/services supported by VAT invoices/official receipts issued not in the name of petitioner

Appetreats & More Convenience Store

p 14.03 Exhibit P-9-GE-ICPA

Appetreats & More Convenience Store

8.36 Exhibit P-9-GF-ICPA

Appetreats & More Convenience Store

11.79 Exhibit P-9-GG-ICPA Batangas II Electric Cooperative, Inc 90.80 Exhibit P-9-GO-ICPA Meridien Business Leader, Inc 64.26 Exhibit P-9-JA-ICPA Meridien Business Leader, Inc 64.26 Exhibit P-9-JB-ICPA Meridien Business Leader, Inc 80.33

Exhibit P-9-JC-ICPA

Meridien Business Leader, Inc 26.76 Exhibit P-9-JD-ICPA

Omegared Petroleum Service Station

53.57

Exhibit P-9-JK-ICPA

Omegared Petroleum Service Station

53.57

Exhibit P-9-JL-ICPA

Professional Parking Management Corp

4.82 Exhibit P-9-KE-ICPA

Proton Microsystems Inc

105.54 Exhibit P-9-KF-ICPA

Super Shopping Market Inc

429.46 Exhibit P-9-KY-ICPA WPCS (Phils.) Inc.

77.28 Exhibit P-9-LI-ICPA

Appetreats & More Convenience Store

17.04 Exhibit P-9-LK-ICPA

Appetreats & More Convenience Store

12.75 Exhibit P-9-LU-ICPA

Appetreats & More Convenience Store

12.75 Exhibit P-9-LV-ICPA

Citi Hardware Gensan Inc.

Citi Hardware Gensan Inc.

Ichi Mart

Ichi Mart

Ichi Mart

Manila International Airport Authority

Meridien Business Leader, Inc Office Warehouse Inc.

Omegared Petroleum Service Station

O'Well Corporation

Proton Microsystems Inc

WPCS (Phils.) Inc.

509 Motorist Srvc Cntr Inc. Abacus Book & Card Corp.

Ace Hardware Philippines Inc

Alvelson Enterprises

Appetreats & More Convenience Store

Construction Depot Corporation

Danny and Mel Gen Mdse

Ichi Mart

Manila International Airport Authority

Meralco

Park Square Car Park

Super Shopping Market Inc

Tokagawa Global Corporation (TGC-Mapma)

Tokagawa Global Corporation (TGC-Mapma)

Tokagawa Global Corporation (TGC-Mapma)

Waltermart Supermarket Inc

Africa Enterprises

Abacus Book & Card Corp.

Ichi Mart

Meralco

Mercury Drug Corp

Mercury Drug Corp

Meridien Business Leader, Inc

PLDT

WPCS (Phils.) Inc.

Philippine Postal Corporation

XYZ Hardware and Construction Supply

SM Dev't Corp

SM Dev't Corp

SM Dev't Corp

SM Dev't Corp

SM Dev't Corp

Waltermart Handyman Inc

Meralco

Titanium Star Foods Corporation

Citi Hardware Gensan Inc.

Alvelson Enterprises

CONSOLIDATED GLOBAL IMPORTS INC. CONSOLIDATED GLOBAL IMPORTS INC. 25.85

Exhibit P-9-MP-ICPA

80.97 Exhibit P-9-MQ-ICPA 4.23 Exhibit P-9-NY-ICPA 45.75

Exhibit P-9-NZ-ICPA

9.70 Exhibit P-9-0A-ICPA 4.29 Exhibit P-9-0Z-ICPA 10.71

Exhibit P-9-PD-ICPA

81.43

Exhibit P-9-PN-ICPA

85.71

Exhibit P-9-PO-ICPA

53.57

Exhibit P-9-PP-ICPA

74.46 Exhibit P-9-QO-ICPA 48.21

Exhibit P-9-RO-ICPA

32.14 Exhibit P-9-RR-ICPA 13.88 Exhibit P-9-RY-ICPA 31.58

Exhibit P-9-RZ-ICPA

17.68 Exhibit P-9-SY-ICPA 13.39 Exhibit P-9-TD-ICPA 10.71

Exhibit P-9-TN-ICPA

17.14 Exhibit P-9-TP-ICPA 14.57 Exhibit P-9-UW-ICPA 4.29 Exhibit P-9-WT-ICPA 69.73

Exhibit P-9-WV-ICPA

4.29 Exhibit P-9-XX-ICPA 45.85

Exhibit P-9-ZZ-ICPA

3.22

Exhibit P-9-AAG-ICPA

3.21

Exhibit P-9-AAH-ICPA

3.21

Exhibit P-9-AAI-ICPA

52.50

Exhibit P-9-AAP-ICPA

21.43

Exhibit P-9-AFU-ICPA

26.22 Exhibit P-9-AHF-ICPA 28.29 Exhibit P-9-AKK-ICPA 96.47 Exhibit P-9-ALX-ICPA 9.75

Exhibit P-9-ALY-ICPA

17.04 Exhibit P-9-ALZ-ICPA 53.58

Exhibit P-9-AMA-ICPA

302.27

Exhibit P-9-ANS-ICPA

66.75

Exhibit P-9-AQR-ICPA

21.43

Exhibit P-9-AXM-ICPA

50.89

Exhibit P-9-BCV-ICPA

8.57 Exhibit P-9-BKX-ICPA 4.29 Exhibit P-9-BKY-ICPA 4.29 Exhibit P-9-BKZ-ICPA 4.29 Exhibit P-9-BLA-ICPA 15.00 Exhibit P-9-BML-ICPA 11.12 Exhibit P-9-BMS-ICPA 76.04 Exhibit P-9-BNG-ICPA 64.50

Exhibit P-9-BNM-ICPA

35.44 Exhibit P-9-BNN-ICPA 18.11

Exhibit P-9-BNR-ICPA

14.14 Exhibit P-9-BNT-ICPA 5.82

Exhibit P-9-BNU-ICPA

erA Case No. 9442

DC Uson Jr Service Station

Abacus Book & Card Corp.

Citi Hardware Gensan Inc.

Citi Hardware Gensan Inc.

Citi Hardware Gensan Inc.

Meridien Business Leader Inc. (MBL)

South Luzon Tollway Corporation

Star Infrastructure Dev't Corp. Abacus Book & Card Corp.

National Book Store

WPCS (Phils.) Inc.

Sub-total

p 53.57

Exhibit P-9-BNV-ICPA

46.23

Exhibit P-9-BOM-ICPA

24.32 Exhibit P-9-BON-ICPA 7.63

Exhibit P-9-BOO-ICPA

66.94 Exhibit P-9-BOP-ICPA 0.54 Exhibit P-9-BOR-ICPA 11.35 Exhibit P-9-BOS-ICPA 2.46 Exhibit P-9-BOT-ICPA 14.28 Exhibit P-9-BOV-ICPA 32.30 Exhibit P-9-BOW-ICPA 5.87

Exhibit P-9-BPO-ICPA

3,210.86

6. Input VAT on purchases of goods/services supported by VAT invoices/official receipts but the VAT amount was not seoarately indicated therein Philippine Pizza, Inc.

p 87.64 Exhibit P-9-JV-ICPA Globe Telecom, Inc.

303.20

Exhibit P-9-NJ-ICPA

Lon Works Enterprises

44,237.98

Exhibit P-9-0V-ICPA

Lon Works Enterprises

6,300.00 Exhibit P-9-0W-ICPA

Lon Works Enterprises

11,121.43 Exhibit P-9-0X-ICPA

Lon Works Enterprises

2,314.29 Exhibit P-9-0Y-ICPA Tuafios Manpower & General Services Inc. 535.71

Exhibit P-9-ACA-ICPA

G.A. Yupangco & Co. Inc.

6,977.06 Exhibit P-9-AVB-ICPA G.A. Yupangco & Co. Inc.

7,330.30 Exhibit P-9-AVC-ICPA G.A. Yupangco & Co. Inc.

6,601.54 Exhibit P-9-AZI-ICPA

Sanden Hardware

114.64 Exhibit P-9-BQN-ICPA

Jollibee Foods Corporation

24.22 Exhibit P-9-BQW-ICPA

Lon Works Enterprises

12,107.14 Exhibit P-9-BWX.1 to 9-BWX.2-ICPA

Sub-total

p 98,055.15

7. Input VAT on purchases of goods and services supported by invalid sales invoices/official receipts (the A TP of the principal invoices/receipts were issued prior to January 18, 2013)

Kabisig Engineering

p 1,585.71

Exhibit P-9-AN-ICPA

Peter 0. Sanchez 5,213.00 Exhibit P-9-AO-ICPA Peter 0. Sanchez 1,285.71

Exhibit P-9-AP-ICPA

Peter 0. Sanchez 342.86 Exhibit P-9-AQ-ICPA

Kabisig Engineering

803.57 Exhibit P-9-BK-ICPA Peter 0. Sanchez 3,857.14 Exhibit P-9-CE-ICPA Peter 0. Sanchez/ Kabisig Engineering 535.71

Exhibit P-9-CM-ICPA

Peter 0. Sanchez 1,176.47 Exhibit P-9-EA-ICPA

Peter Sanchez

482.14 Exhibit P-9-JO-ICPA

Peter Sanchez

2,647.06 Exhibit P-9-JP-ICPA

Peter Sanchez

1,235.29 Exhibit P-9-PS-ICPA

Peter Sanchez

1,764.71

Exhibit P-9-AFQ-ICPA

Peter Sanchez

4,352.94 Exhibit P-9-ANN-ICPA

Peter Sanchez

1,294.12 Exhibit P-9-ANO-ICPA

Peter Sanchez

24,117.65

Exhibit P-9-ATK-ICPA

Peter Sanchez

1,294.12 Exhibit P-9-ATL-ICPA

Peter Sanchez

1,882.35 Exhibit P-9-ATM-ICPA

Peter Sanchez

705.88

Exhibit P-9-AYV-ICPA

Peter Sanchez

2,000.00 Exhibit P-9-BBF-ICPA

Peter Sanchez

2,705.88 Exhibit P-9-BIS-ICPA

Peter Sanchez

Peter 0. Sanchez

Sub-total

GRAND TOTAL

1,529.41

Exhibit P-9-BLN-ICPA

1,176.47 Exhibit P-9-BSR-ICPA p 61,988.19 P2,491,962.22 Thus, out of petitioner's total reported input VAT on current purchases of P12,756,884.44 for the four quarters of CY 2014, only the amount of P7,961,988.48 represents its valid input VAT, as follows:

Total Input VAT on Current Purchases per Returns

p 12,756,884.44

Less: Disallowances

Per ICPA Report

P2,302,933.74 Per Court's further verification P2,491, 962.22 4, 794,895.96

Valid Input VAT

P7,961,988.48 Consequently, a portion of petitioner's valid input VAT of P7,961,988.48 shall be applied against the output VAT liability for the four quarters of CY 2014 in the aggregate amount of P5,270,208.10. Hence, only the remaining input VAT of P2,691,780.38 can be attributed to the declared zero-rated sales of P104,689,860.42, and only the input VAT of P2,563,990.68 is attributable to the valid zero- rated sales of P99,719,809.38, computed as follows:

Valid Input VAT

p 7,961,988.48 Less: Output VAT liability 1st Quarter p 649,280.14 2nd Quarter 1 675,064.52 3rd Quarter 1,823,041.14 4th Quarter P1 122,822.30 5,270,208.10

Excess Input VAT

P2,691,780.38

Divide by Declared Zero-Rated Sales

104,689,860.42

Multiply by Valid Zero-Rated Sales

99,719,809.38 Excess Input VAT attributable to Valid Zero-Rated Sales P2,563,990.68 Further, petitioner was able to prove that the claimed input VAT of P7,486,676.34 for the four quarters of CY 2014 was not applied against any output VAT in the succeeding quarters and the same remained unutilized as the said amount was deducted as "VAT Refund/TCC claimed" in its Amended Quarterly VAT Return for the first37 quarter of CY 2016. Apparently, the subject claim no longer formed part of the excess input VAT of P18,240,651.0638 as of the 1r-

end of the first quarter of CY 2016 that was to be carried over or applied to the succeeding quarters. As such, it eliminates the possibility that the present claim would be applied to future output VAT liability.

WHEREFORE, premises considered, the instant Petition for Review is PARTIALLY GRANTED. Accordingly, respondent is

ORDERED

TO

REFUND

to petitioner the amount of P2,563,990.68, representing its excess and unutilized input VAT attributable to zero-rated sales for the four quarters of CY 2014.

I CONCUR:

~ .. , c.a.r-~~~1:· llfANITO C. CASTANEDA, JR.

Associate Justice

c~,A~ CATHERINE T. MANAHAN

Associate Justice

ATTESTATION

I attest that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. ~~~ c. a...r~~l i:.

llfANITO C. CASTANEDA, JR.

Associate Justice

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 case was assigned to the writer of the opinion of the Court.

Presiding Justice