First Gen Hydro Power Corporation vs. Commissioner of Internal Revenue

DECISION

CASTANEDA, JR., J.:

THE CASE

This Petition for Review filed on July 26, 2018 prays for the refund of the amount of P15,950,720.98, allegedly representing petitioner's unutilized input value-added tax (VAT) attributable to zero-rated sales for the four ( 4) quarters of calendar year (CY) 2016.¹

THE PARTIES

Petitioner First Gen Hydro Power Corporation is a corporation duly organized and existing under the laws of the Republic of the ~

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

Philippines. 2 It is registered with the Bureau of Internal Revenue (BIR) as a large taxpayer and a VAT-taxable entity under Taxpayer's Identification Number (TIN) 244-335-986-00000, with office address at 6/F Rockwell Business Center, Tower 3, Ortigas Avenue, Brgy. Ugong, Pasig City 1604.3 Respondent is the duly appointed Commissioner of Internal Revenue vested under appropriate laws with the authority to carry out the functions, duties and responsibilities of said office including, inter alia/ the power to decide, approve and grant refunds of excess and unutilized input VAT, pursuant to the pertinent provisions of the Tax Code and other tax laws, rules and regulations. 4

THE FACTS

On March 28, 2018, petitioner filed an Application for Tax Credits/Refunds(BIR Form No. 1914),5 with the attached letter dated March 23, 2018,6 requesting for the refund of its alleged unutilized input VAT covering the period from January 1, 2016 to December 31, 2016, in the amount of P15,950,720.98. Thereafter, on June 26, 2018, petitioner received a VAT Refund/Notice from Ms. Teresita M. Dizon, the OIC-Assistant Commissioner of the Large Taxpayers Service, denying petitioner's administrative claim for refund.7 On July 26, 2018, petitioner filed the present Petition for Review.8 Respondent filed his Answer on August 20, 2018,9 interposing certain defenses, to wit: (1) since he rendered a decision, the jurisdiction of this Court shifts from a trial court to an appellate tribunal; (2) the Court should confine itself to whether the findings of respondent are consistent with law; (3) since a decision has been rendered in this case, denying petitioner's administrative claim for refund, for failure to substantiate the same, petitioner cannot submit;-- 2 Exhibits "P-1" to "P-3", Docket- Vol. I, pp. 437 to 468. 3 Exhibit "P-4", Docket- Vol. I, p. 469. • Par. 1, Stipulation of Facts, Joint Stipulation of Facts and Issues (JSFI), Docket- Vol. I, p. 260.

CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue documents it did not submit at the administrative level; (4) the Court is confined to a more limited issue of whether the denial was proper, given the evidence submitted at the administrative level; (5) since there was no input VAT to be paid by Renewable Energy (RE) Developers, it necessarily follows that petitioner is not entitled to refund or issuance of tax credit certificate from its purchases; (6) since petitioner is not liable to pay input VAT, it is not the proper party to claim for any input VAT refund on the subject purchases; (7) taxes paid and collected by the BIR are presumed to have been made in accordance with law, rules and regulations and the burden to prove otherwise is upon petitioner; and (8) claims for refund are construed strictly against the claimant for the same partake the nature of exemption from taxation and as such, they are looked upon with disfavor.

On August 30, 2018, respondent submitted the BIR Records for the present case.10 The pre-trial conference was initially set on September 27, 2018. 11 However, in view of the reorganization of the three (3) Divisions of the Court, the pre-trial conference was reset to, and was held on, October 11, 2018.12 Prior thereto, Respondent's Pre-Trial Brief was filed on September 7, 2018; 13 while the Petitioner's Pre- Trial Briefwas submitted on September 21, 2018. 14 On October 26, 2018, the parties submitted their Joint Stipulations of Facts and Issues (JSFI).15 Thereafter, the Pre-Trial Order dated November 6, 2018 was issued,16 approving and adopting the said JSFI, and thereby deeming termination of the pre-trial. The trial of this case then proceeded. During the trial, petitioner presented its documentary and testimonial evidence. Petitioner proffered the testimonies of the following individuals, namely: (1) Ms. Maria Carmina z. Ubafia,17 ;;e.- 10 Compliance, Docket- Vol. I, pp. 120 to 123. 11 Notice of Pre-Trial Conferenre dated August 23, 2018, Docket- Vol. I, pp. 118 to 119. 12 Notire of Resetting dated September 20, 2018, Docket - Vol. I, p. 132; Minutes of the hearing held on, and Order dated October 11, 2018, Docket- Vol. I, pp. 258 to 259. " Docket- Vol. I, pp. 127 to 130. 14 Docket- Vol. I, pp. 245 to 256. " Docket- Vol. I, pp. 260 to 268.

First Gen Hydropower Corporation v. Commissioner of Internal Revenue petitioner's Vice President and Comptroller; and (2) Mr. Enrico E. Baluyot,18 the Court-commissioned Independent Certified Public Accountant (ICPA).19 The Report of the ICPA was submitted on January 16, 2019.20 Thereafter, on March 4, 2019, petitioner filed its Formal Offer of Evidence. 21 Respondent filed his Comment (Re: Petitioner's Formal Offer of Evidence) on March 6, 2019.22 In the Resolution dated April 8, 2019,23 the Court admitted petitioner's Exhibits, except for the following:

1.

Exhibit "P-27", for failure to present original for comparison;

2 Exhibits "P-27-a" "P-27-b" "P-27-c" and "P-27-d" for • I I I I failure to identify; and

3. Exhibits "P-38-IC" to "P-38-JL", "P-41-AL", "P-44-A", "P- 45-A" to "P-45-C" "P-48-AO" to "P-48-AS" "P-49-AH" to I I "P-49-AK", "P-52-A", "P-66-A" to "P-66-R", "P-67-A" to "P-67-I" "P-68-A" to "P-68-EA" "P-78-B" "P-80-AN" and f I I I "P-81-AQ", for not being found in the records of the case. Thus, petitioner filed a Motion for Partial Reconsideration with Submission (Re: Resolution dated April 8, 2019) on April 29, 2019,24 praying for the admission of the following Exhibits: "P-27-a" to "P-27- d", "P-38-IC" to "P-38-JL", "P-41-AL", "P-44-A", "P-45-A" to "P-45-C", "P-48-AO" to "P-48-AS", "P-49-AH" to "P-49-AK", "P-52-A", "P-66-A" to "P-66-R" "P-67-A" to "P-67-I" "P-68-A" to "P-68-EA" "P-78-B" I I I I "P-80-AN", and "P-81-AQ", as part of petitioner's evidence. Petitioner also filed a Manifestation with Submission (Re: Motion for Reconsideration Dated April 29, 2019) on May 3, 2019,25 stating that it already submitted a new universal serial bus (USB) containing the scanned copies of the documentary exhibits relevant;.... 18 Exhibit "P-88", Docket - Vol. I, pp. 380 to 392; Minutes of the hearing held on, and Order dated, February 6, 2019, Docket- Vol. I, pp. 398 and 400, respectively. 19 Minutes of the hearing held on, and Order dated, December 5, 2018, Docket- Vol. I, pp. 299 to 301. 20 Exhibit "P-87", Docket- Vol. I, pp. 303 to 337. 21 Docket- Vol. I, pp. 405 to 436. 22 Docket - Vol. I, pp. 534 to 536. 23 Docket - Vol. II, pp. 539 to 541. 24 Docket- Vol. II, pp. 543 to 550. 2' Docket- Vol. II, pp. 560 to 564.

First Gen Hydropower Corporation v. Commissioner of Internal Revenue to its Motion for Partial Reconsideration, without any password- protected security features; and that petitioner attached to the subject Manifestation the copy of the transcript of stenographic notes dated December 5, 2018 that could prove that Exhibits "P-27-a", "P- 27-b", "P-27-c", and "P-27-d" pertain to Tax Debit Memos that were duly marked and identified by petitioner's witness. In the Resolution dated June 28, 2019,26 the Court, inter alia:

(1) partially granted petitioner's Motion for Partial Reconsideration with Submission (Re: Resolution dated April 8, 2019); (2) noted petitioner's Manifestation with Submission (Re:

Motion for Reconsideration dated April 29, 2019); (3) admitted petitioner's Exhibits "P-27-a" "P-27-b" "P-27-c" "P-27-d" "P-44-A" "P-45-A to I I I I I P-45-C" "P-48-AO to P-48-AS" "P-49-AH to P-49-AK" "P-52-A" "P- ' I I I 78-B", "P-80-AN", and "P-81-AQ"; and (4) still denied the admission of Exhibits "P-38-IC" to "P-38-JL" "P-41-AL" "P-66-A to P-66-R" "P- ' I I 67-A" to "P-67-I" and "P-68-A" to "P-68-EA". Respondent likewise presented his documentary and testimonial evidence. His lone witness is Ms. Ana Veronica A. Asis,27 Revenue Officer II of the Regular Large Taxpayers Audit Division III of the BIR.

On July 18, 2019, respondent filed his Formal Offer of Evidence. 28 Petitioner filed its Comment (Re: Respondent's Formal Offer of Evidence dated July 18, 2019) on July 24, 2019.29 Thus, in the Resolution dated August 7, 2019,30 the Court admitted respondent's Exhibits.

Thereafter, respondent's Memorandum was filed on September 17, 2019}1 while petitioner's Memorandum was submitted on November 14, 2019.32 On November 18, 2019, the Court considered the present case submitted for decision.33 ~

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

THE ISSUES

The parties submitted the following issues34 for the Court's resolution, to wit:

"A.

WHETHER OR NOT PETITIONER IS ENTITLED TO

THE REFUND OF EXCESS AND UNUTILIZED INPUT

VAT ALLEGEDLY ATIRIBUTABLE TO ITS ZERO-

RATED SALES OF POWER GENERATED THROUGH

RENEWABLE ENERGY SOURCES FOR THE FOUR (4)

QUARTERS OF CY 2016 IN THE AMOUNT OF

PHP15,950,720.98; AND B.

WHETHER OR NOT THE ADMINISTRATIVE

DECISION SERVED TO PETITIONER DENYING THE

CLAIM FOR REFUND BASED ON EVIDENCE PRESENTED WAS CORRECT." Petitioner's arguments: Petitioner argues that its sale of power that is generated through its hydropower plants is subject to zero-percent (0%) VAT; that during the pt to 4th quarters of CY 2016, petitioner paid input VAT arising from its domestic sale of goods and services, importations of non-capital goods, and services rendered by non- residents; that petitioner's excess input taxes for the said quarters are attributable to its zero-rated sales of power; that the said excess input VAT are duly supported by VAT invoices and/or official receipts issued by VAT-registered suppliers, Import Entry and Internal Revenue Declarations (IEIRDs), and BIR Form No.

1600 in accordance with Sections 110, 113, 237, Tax Code, and Section 4.100-8, Revenue Regulations (RR) No. 16-2005, as amended; that the same excess input VAT have not been utilized or applied against its output VAT liability for the same period or in succeeding taxable periods; and that petitioner filed its administrative and judicial claim for refund of excess and unutilized input VAT within the periods provided by the Tax Code, as amended. ?'--

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

Respondent's counter-arguments: Respondent counter-argues that the present Petition should be dismissed for failure of petitioner to substantiate its administrative claim for refund; and that petitioner is not entitled to refund in the amount of P15,950,720.98.

THE COURT'S RULING

The present Petition for Review is not meritorious. Petitioner failed to show that respondent should not have denied its administrative claim in the first place. Respondent posits that since he rendered a decision, the jurisdiction of this Court shifts from a trial court to an appellate tribunal; and that the Court should confine itself to whether the findings of respondent are consistent with law. We agree with respondent. In the Pilipinas Total Gas, Inc. vs. Commissioner of Internal Revenue C'Pilipinas Total Gascase''),35 the Supreme Court said: "At this stage, a review of the nature of a judicial claim before the CTA is in order. In Atlas Consolidated Mining and Development Corporation v. CIR,36 it was ruled- x x x 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 quo did not have any reason to deny its claim. In this case, it was necessary for petitioner to show the CTA not only that it was entitled under substantive law to the jle--

CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue 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. A distinction must, thus, be made between administrative cases appealed due to inaction and those dismissed at the administrative level due to the failure of the taxpayer to submit supporting documents. If an administrative claim was dismissed by the CIR due to the taxpayer's failure to submit complete documents despite notice/request, then the judicial claim before the CTA would be dismissible, not for lack of jurisdiction, but of the taxpayer's failure to substantiate the claim at the administrative level. When a judicial claim for refund or tax credit in the CTA is an appeal of an unsuccessful administrative claim, the taxpayer has to convince the CTA that the CIR had no reason to deny its claim. It, thus, becomes imperative for the taxpayer to show the CTA that not only is he entitled under substantive law to his claim for refund or tax credit, but also that he satisfied all the documentary and evidentiary requirement for an administrative claim. It is, thus, crucial for a taxpayer in a judicial claim for refund or tax credit to show that its administrative claim should have been granted in the first place. Consequently, a taxpayer cannot cure its failure to submit a document requested by the BIR at the administrative level by filing the said document before the CTA." (Emphases and underscoring ours) Based on the foregoing jurisprudential pronouncements of the High Court, it is now settled that 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 claim; and it is necessary for a petitioner to show this Court not only that it was entitled under substantive law to the grant of its claims fz- DEOSION First Gen Hydropower Corporation v. Commissioner of Internal Revenue but also that it satisfied all the documentary and evidentiary requirements for an administrative claim for refund or tax credit. It is crucial for a taxpayer in a judicial claim for refund or tax credit to show that its administrative claim should have been granted in the first place, and should not have been denied. A careful observation of what transpired in the proceedings before this Court would reveal that petitioner presented its case as if its administrative claim was never acted upon or that there was no decision for this Court to review on appeal per se. In other words, petitioner presented its case before this Court as if it was an original action, despite that respondent had explicitly denied its administrative claim. Petitioner did not specifically assail the reasons or bases why its administrative claim was denied in the first place by respondent. It did not unambiguously argue or prove that the said reasons or bases of respondent were never justified in law. In the VAT Refund/Notice dated June 26, 2018 of OIC-Assistant Commissioner Teresita M. Dizon,37 the latter stated that ''no refundable amount has been recommended" and showed how she arrived at the said conclusion, based on the following computations: A.

Local Purchases VAT Refund Claimed Less:

CY Output Tax Per VAT Returns filed - UNAPPLIED TO CURRENT

INPUT TAX

Output Tax Per Audit (TPI/Aiteid data vs. VATR/SLS) Amount P15,917 ,690.98 36,523,207.61 4.095.58 36,527,303.19 ADD: Disallowances, NET OF RATABLE ALLOCATION OF INPUT TAX 7,353,407.34 TOTAL DEDUCTIONS/DISALLOWANCES To VAT Refund Claim P (43,880,710.53) Net Allowable VAT Refund/Credit I (Excess of Output Tax Deduction & Input Tax Disallowances over VAT Refund P (27,963,019.55)

ALLOWABLE INPUT TAX FOR REFUND

PO.OO B. Importations VAT Refund Claimed Less:

CY Output Tax Per VAT Returns filed - UNAPPLIED TO CURRENT

INPUT TAX

Output Tax Per Audit (TPI/Aiteid data vs. VATR/SLS) Amount p 33,030.00 77,128.52 14.24 77,142.76 ADD: Disallowances, NET OF RATABLE ALLOCATION OF INPUT TAX 3 244.00 TOTAL DEDUCTIONS/DISALLOWANCES To VAT Refund Claim P (80,386.76) Net Allowable VAT Refund/Credit I (Excess of Output Tax Deduction & Input Tax Disallowances over VAT Refund P (47,356.76)

ALLOWABLE INPUT TAX FOR REFUND

PO.OO Total Excess of Output Tax Deduction & Input Tax Disallowances over r- '' Par. 2, Stipulation of Facts, JSFI, Docket- Vol. I, p. 260; Exhibit "P-26", Docket- Vol. I, pp. 512.

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

VAT Refund Claim (sum of A & B) Total Amount Allowable for VAT Refund/Credit (sum of A & B) p (28,010,376.31) PO.OO With the foregoing determination, petitioner should have argued and proved before this Court that the same does not stand, pursuant to the submitted documents by it at the administrative level in relation to the pertinent provisions of law and jurisprudence. In other words, petitioner failed to show before this Court that respondent should not have denied its administrative claim in the first place, since the BIR's findings may be refuted with the documents it submitted vis-a-vis the pertinent legal provisions. Having failed to show that respondent should not have denied its administrative claim in the first place, the present Petition for Review must already be denied. Nevertheless, even when We are to ignore the ruling in the Pilipinas Total Gas case, the present judicial claim is still not meritorious. In order that petitioner may validly claim for refund of its supposed unutilized input VAT for the subject periods, it is imperative that it must likewise prove compliance with certain legal requisites. As will be shown herein, petitioner failed to show full compliance with the same.

Requisites for the grant of a refund or issuance of a tax credit certificate under the law.

Section 112 of the National Internal Revenue Code (NIRC) of 1997, as amended by RA No. 10963 [otherwise known as the Tax Reform for Acceleration and Inclusion Act (''TRAIN law'')], 38 provides as follows:

"SEC. 112. Refunds or Tax Credits of Input Tax. - J-t-- 38 AN ACT AMENDING SECTIONS 5, 6, 24, 25, 27, 31, 32, 33, 34, 51, 52, 56, 57, 58, 74, 79, 84, 86, 90, 91, 97, 99, 100, 101, 106, 107, 108, 109, 110, 112, 114, 116, 127, 128, 129, 145, 148, 149, 151, 155, 171, 174, 175, 177, 178, 179, 180, 181, 182, 183, 186, 188, 189, 190, 191, 192, 193, 194, 195, 196, 197, 232, 236, 237, 249, 254, 264, 269, AND 288; CREATING NEW SECTIONS 51-A, 148-A, 150-A, 150-B, 237-A, 264-A, 264-B, AND 265-A; AND REPEALING SECTIONS 35, 62, AND 89; ALL UNDER REPUBLIC ACT 8424, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES, December 19, 2017.

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

(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(6)(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 sales: Provided_ finally, That for a person making sales that are zero-rated under Section 108(6)(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 of Input Taxes shall be Made. - In proper cases, the Commissioner shall grant a refund for creditable input taxes within ninety

(90) days from the date of submission of the official receipts or invoices and other documents in support of the application filed in accordance with Subsections (A) and (B) hereof: Provided_ That should the Commissioner find that the grant of refund is not proper, the Commissioner must state in writing the legal and factual basis for the denial.

In case of full or partial denial of the claim for tax refund, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim, appeal the decision with the Court of Tax Appeals: Provided_ however, That failure on the part of any official, agent, or employee of the BIR to act on the application within the 1'--

First Gen Hydropower Corporation v. Commissioner of Internal Revenue ninety (90)-day period shall be punishable under Section 269 of this Code."

Pursuant to the above provision, certain requisites must be complied with by the taxpayer-applicant to successfully obtain a credit/refund of input VAT. Said requisites are classified into certain categories, to wit:

As to the timeliness of the filing of the administrative and judicial claims:

1. the claim is filed with the BIR within two (2) years after the close of the taxable quarter when the sales were made; 39

2. that in case of full or partial denial of the refund claim rendered within a period of ninety (90) days from the date of submission of the official receipts or invoices and other documents in support of the application, the judicial claim shall be filed with this Court within thirty

(30) days from receipt of the decision. With reference to the taxpaver's registration with the BIR:

3. the taxpayer is a VAT-registered person;40 In relation to the taxpaver's output VAT:

4. the taxpayer is engaged in zero-rated or effectively zero-rated sales;41

5. for zero-rated sales under Section 106(A)(2)(a)(l), (2) and (b), and Section 108(B)(l) and (2), the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with BSP rules and regulations; 42 'lt-- 39 Intel Technology Philippines, Inc. vs. Commissioner of Intemal Revenue, G.R. No. 166732, April 27, 2007; San Roque Power Corporation vs. Commissioner of Internal Revenue, G.R. No. 180345, November 25, 2009; and AT&T Communications Services Philippines, Inc. vs. Commissioner of Intemal Revenue, G.R. No. 182364, August 3, 2010. "" Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue, supra; San Roque Power Corporation vs. Commissioner of Internal Revenue, supra; and AT&T Communications Services Philippines, Inc. vs. Commissioner of Internal Revenue, supra. 41 Id 42 Id

CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue

As regards the taxpaver's input VAT being refunded:

6. the input taxes are not transitional input taxes;43

7. the input taxes are due or paid;44

8. the input taxes claimed are attributable to zero-rated or effectively zero-rated sales. However, where there are both zero-rated or effectively zero-rated sales and taxable or exempt sales, and the input taxes cannot be directly and entirely attributable to any of these sales, the input taxes shall be proportionately allocated on the basis of sales volume;45 and

9. the input taxes have not been applied against output taxes during and in the succeeding quarters.46 It must be emphasized that in cases filed before this Court, which are litigated de novo, party-litigants must prove every minute aspect of their caseY Thus, it behooves petitioner to show compliance with each of the foregoing requisites. Petitioner's and judicial timely filed.

administrative claims were The first requisite pertains to the filing of the refund of input taxes before the BIR, within two (2) years from the close of the taxable quarter when the supposed zero-rated or effectively zero- rated sales were made.

The present claim covers the four (4) quarters of taxable year 2016, which closed on March 31, 2016, June 30, 2016, September 30, 2016, and December 31, 2016, respectively. Counting two (2) years from the said dates, petitioner had until March 31, 2018, June 30, 2018, September 30, 2018, and December 31, 2018, respectively, ft.- 43 /d.

44 !d.

45 Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue, supra; and San Roque Power Corporation vs. Commissioner of Internal Revenue, supra. 46 Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue, supra; San Roque Power Corporation vs. Commissioner of Internal Revenue, supra; and AT&T Communications Services Philippines, Inc. vs. Commissioner of Internal Revenue, supra. 47 Edison (Bataan) Cogeneration Corporation vs. Commissioner of Internal Revenue, etseq., G.R. Nos. 201665 and 201668, August 30, 2017; Commissioner of Internal Revenue vs. Philippine National Bank, G.R. No. 180290, September 29, 2014; Commissioner of Internal Revenue vs. United Salvage and Towage (Phils.), Inc., G.R. No. 197515, July 2, 2014; Dizon vs. Court of Tax Appeals, eta/., G.R. No. 140944, April 30, 2008; Atlas Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue, G.R. No. 145526, March 16, 2007; and Commissioner of Internal Revenue vs. Manila Mining Corporation, G.R. No. 153204, August 31, 2005.

CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue within which to file its administrative claim for refund. petitioner's administrative claim was timely filed with the March 28, 2018,48 as shown below: Thus, BIRon Last Day to File Date of Filing of Close of the Administrative Administrative

CY 2016

Taxable Quarter Claim Claim 151 Quarter March 31 2016 March 31, 2018 2nd Quarter June 30 2016 June 30 2018 March 28, 2018 3'd Quarter September 30, 2016 September 30, 2018 4'h Quarter December 31. 2016 December 31, 2018 The second requisite is to the effect that the judicial claim must have been filed within thirty (30) days from the receipt of respondent's decision rendered within ninety (90) days from the date of submission of the official receipts or invoices and other documents in support of the application for refund under Section 112(C) of the NIRC of 1997, as amended by the TRAIN law. As previously stated, petitioner's administrative claim, together with its letter and supporting documents, was filed on March 28, 2018.

Thus, respondent had ninety (90) days therefrom, or until June 26, 2018, to decide on the petitioner's claim for refund. Since the VAT Refund/Credit Notice denying petitioner's claims was issued by the OIC-Assistant Commissioner of the Large Taxpayers Service, Ms. Teresita M. Dizon, on June 26, 2018 (the last day of the said 90- day period), petitioner had 30 days from that date, or until July 26, 2018, to file an appeal before this Court. Consequently, the filing of the present Petition on Review on July 26, 201849 was likewise timely made.

Such being the case, petitioner fulfilled both the above-stated first and second requisites. Petitioner is a VAT-registered taxpayer.

As for the third requisite, it is undisputed that petitioner is registered with the BIR, as VAT-registered taxpayer under TIN 244- 335-986-00000.50 Thus, petitioner's compliance with the said requisite is undoubtedly fulfilled. 9z-- 48 Exhibit "P-24", Docket- Vol. I, p. 511; Exhibit "P-23", Docket- Vol. I, pp. 509 to 510. 49 Docket- Vol. I, pp. 10 to 22. 50 Exhibit "P-4", Docket- Vol. I, p. 469. I DE OS! ON

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

However, not all of petitioner's reported zero- rated sales or effectively zero- rated sales during the four ( 4) quarters of TY 2016 qualify as such.

Section 108(8)(7) of the NIRC of 1997, as amended, provides that the sale of power generated through renewable sources of energy is one the transactions subject to zero percent (0%) VAT, to wit:

"SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties. - XXX XXX XXX (B) Transactions Subject to Zero Percent (0%) Rate. - The following services performed in the Philippines by VAT-registered persons shall be subject to zero percent (0%) rate: XXX XXX XXX

(7) Sale of power or fuel generated through renewable sources of energy such as, but not limited to, biomass, solar, wind, hydropower, geothermal, ocean energy, and other emerging energy sources using technologies such as fuel cells and hydrogen fuels." (Emphases added) Furthermore, Section 4.108-5(b)(7) of RR No. 16-2005,51 as amended by RR No. 13-2018,52 states that the sale power or fuel generated through renewable sources like hydropower qualifies for zero-rate VAT, viz.

"SEC. 4.108-5.

Zero-Rated Sale of Services. - XXX XXX XXX jz-- 51 Consolidated Value-Added Tax Regulations of 2005, September 1, 2005. 52 Regulations Implementing the Value-Added Tax Provisions under the Republic Act (RA) No. 10963, or the "Tax Reform for Acceleration and Inclusion (TRAIN)," Further Amending Revenue Regulations (RR) No. 16-2005 (Consolidated Value-Added Tax Regulations of 2005), as Amended, March 15, 2018.

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

(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%) VAT rate: XXX XXX XXX

(7) Sale of power or fuel generated through renewable sources of energy such as, but not limited to, biomass, solar, wind, hydropower, geothermal and steam, ocean energy, and other emerging sources using technologies such as fuel cells and hydrogen fuels: Provided, however, that zero-rating shall apply strictly to the sale of power or fuel generated through renewable sources of energy, and shall not extend to the sale of services related to the maintenance or operation of plants generating said power." (Emphases ours) Records show that petitioner's primary purpose, as stated in its Certificate of Registration with the SEC, is to carry on the general business of generating, transmitting, and/or distributing energy derived from hydropower for lighting and power purposes and whole- selling the electric power to power corporations, public electric utilities, electric cooperatives, and retail electricity suppliers; to enter into contracts either alone or jointly with other companies or persons for the purpose of carrying out all businesses under which the corporation is organized; to acquire, build, construct, own, maintain, and operate all necessary and convenient buildings, structures, dows, machinery, sub-stations, transmission lines, poles, wires, and other things and devices, and to acquire and hold water and flowage rights and to acquire, lease, hold, occupy, or use land rights-of-way and easement therein.'153 Similarly, its Certificate of Registration with the BIR shows that that its line of business is electric power generation, transmission and distribution. 54 However, before a new generation company may commence its commercial operation, it must first secure a Certificate of Compliance (COC) from the Energy Regulatory Commission (ERC) as required ~~

First Gen Hydropower Corporation v. Commissioner of Internal Revenue under Section 6 of RA No. 9136, otherwise known as the "Electric Power Industry Reform Act of 2001" (EPIRA), 55 which states: "SEC. 6. Generation Sector. - Generation of electric power, a business affected with public interest shall be competitive and open.

Upon the effectivity of this Act, any new generation company shall, before it operates, secure from the Energy Regulatory Commission (ERC) a certificate of compliance pursuant to the standards set forth in this Act, as well as health, safety and environmental clearances from the appropriate government agencies under existing laws.

XXX XXX XXX Pursuant to the objective of lowering electricity rates to end-users, sales of generated power by generation companies shall be value added tax zero- rated. xxx xxx xxx."

(Emphases and underscoring added) Moreover, Section 4, Rule 5 of the Rules and Regulations to Implement RA No. 9136 likewise provides: "Section 4. Obligations of a Generation Company. (a) A COC shall be secured from the ERC before commercial operation of a new Generation Facility. The COC shall stipulate all obligations of a Generation Company consistent with this Section and such other operating guidelines as ERC may establish. The ERC shall establish and publish the standards and requirements for issuance of a COC. A COC shall be issued upon compliance with such standards and requirements. (i) A Person owning an existing Generation Facility or a Generation Facility under construction, shall submit within ninety (90) ~ 55 AN ACT ORDAINING REFORMS IN THE ELECTRIC POWER INDUSTRY, AMENDING FOR THE PURPOSE CERTAIN LAWS AND FOR OTHER PURPOSES, June 26, 2001.

CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue days from effectivity of these Rules to ERC, when applicable, a certificate of DOE/NPC accreditation, a three (3)-year operational history, a general company profile and other information that ERC may require. Upon making a complete submission to the ERC, such person shall be issued a COC by the ERC to operate such existing Generation Facility." In this case, petitioner shall be considered as a generation company i.e., an entity authorized by the ERC to operate facilities used in the generation of electricity, only on March 1, 2016, the date its COC No. 16-03-M-00286pL56 and COC No. 16-03-M-00286ql57 were respectively issued by the ERC for its Pantabangan and Masiway Hydroelectric Power Plants. Thus, the Court will only consider petitioner's zero-rated sales for the period covering March 1, 2016 to December 31, 2016 in resolving the present case. In its Quarterly VAT Returns for the CY 2016, petitioner's total sales in the amount of P2,612,409,482.37, include zero-rated sales in the amount of P2,307,406,681.28, as shown below: Period Sales/Receipts Covered

(TY 2016)

Exhibit VA Table Zero Rated Sales Total 151 Quarter "P-11" P1,634,200.58 P891,944 915.00 P893 579,115.58 2nd Quarter "P-13" 102,598,811.92 604 607 925.76 707 206,737.68 3'd Quarter "P-15" 88,427,930.67 592 617 042.17 681 044 972.84 4th Quarter "P-16" 112,341,857.92 218,236,798.35 330 578 656.27 Total P305,002,801.09 P2,307,406,681.28 P2,612,409,482.37 In support of its zero-rated sales, petitioner submitted in evidence its Schedule of Zero-Rated Sales58 for the subject period of claim, as well as the corresponding official receipts (ORs) therefor. 59 Upon verification, the Court finds that sales amounting to P528,385,486.88, as detailed below, should be disallowed on the ground that the same pertain to petitioner's sales for the period covering January 1, 2016 to February 29, 2016. Thus, said sales cannot qualify for VAT zero-rating, as shown in the table below:)<..- so Exhibit "P-6", Docket- Vol. I, p. 479.

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

OR60 ExhibitNo.

Customer Name NO.

OR DATE

"P-30-A" Philippine Electric Market Corporation 0405 4-Jan-2016 "P-30-B" Nueva Ecija II Electric Cooperative - Area 2 0406 8-Jan-2016 "P-30-C" Nueva Ecija II Electric Cooperative - Area 1 0407 8-Jan-2016 "P-30-D" Philippine Electric Market Corporation 0408 8-Jan-2016 ''P-30-E" Philippine Electric Market Corporation 0409 18-Jan-2016 "P-30-F" National Grid Corporation of the Philippines 0410 21-Jan-2016 "P-30-G" Edonq Cold Storaqe and Ice Plant 0411 22-Jan-2016 "P-30-H" Philippine Electric Market Corporation 0412 26-Jan-2016 "P-30-I" Philippine Electric Market Corporation 0413 27-Jan-2016 "P-30-J" Philippine Electric Market Corporation 0414 29-Jan-2016 "P-30-K" National Grid Corporation of the Philippines 0415 29-Jan-2016 "P-30-L" National Irriqation Administration-UPRIIS 0416 29-Jan-2016 ''P-30-MI/ Philippine Electric Market Corporation 0417 3-Feb-2016 ''P-30-N" Nueva Ecija II Electric Cooperative - Area 2 0418 4-Feb-2016 "P-30-0" Philippine Electric Market Corporation 0419 4-Feb-2016 "P-30-P" Nueva Ecija II Electric Cooperative - Area 1 0420 5-Feb-2016 ''P-30-0" National Grid Corporation of the Philippines 0421 29-Feb-2016 "P-30-R" Edonq Cold Storaqe and Ice Plant 0422 23-Feb-2016 "P-30-S" National Irrigation Administration-UPRIIS 0423 23-Feb-2026 "P-30-T" National Grid Corporation of the Philippines 0424 29-Feb-2016 "P-30-U" Philippine Electric Market Corporation 0425 29-Feb-2016 TOTAL Amount p (96,651.00) 60 854 114.92 61144 637.35 567 039.12 1 003.09 7 744.66 1,367 393.45 41,214 442.39 2 725 415.76 3 450.02 37 190 132.91 78 779.S5 567 037.20 57,077 163.09 3 953.92 56 713 654.02 8 714.55 1,576,764.48 88 127.42 140 951 846.80 66 340 723.18 p 528,385,486.88 Consequently, out of the reported zero-rated sales of P2,307,406,681.28 for the four (4) quarters of CY 2016, only the amount of amount of P1,779,021,194.40 (P2,307,406,681.28 less P528,385,486.88) qualifies for VAT zero-rating for purposes of petitioner's compliance with the fourth requisite. As for the fifth requisite, it is not applicable since petitioner did not render zero-rated sales under Sections 106(A)(2)(a)(1),(2) and (b), and 108(8)(1) and (2) of the NIRC of 1997, as amended. Having found that petitioner had VAT zero-rated sales only in the total amount of P1,779,021,194.40, the Court deems it necessary to proceed and determine petitioner's compliance with the remaining requisites.~ 60 That is, "Official Receipt".

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

The input VAT being claimed does not appear to be uansftionalinputtaxe~ In its Quarterly VAT Returns for the four (4) quarters of CY 2016, petitioner's total input VAT arising from its purchase of capital goods, domestic purchases and importation of goods other than capital goods, and domestic purchase of services amounted to P33,861,189.33, broken down as follows: 1" Quarter 2"• Quarter 3"' Quarter 4th Quarter

CY 2016

(Exhibit "P-11") (Exhibit "P-13") (Exhibit "P-15") (Exhibit "P-16") Input Tax Due on Capital Goods exceedinq PlM Deferred from previous quarter p 2 523 730.57 p 2 208 867.59 p 2 096 533.41 p 1 812 223.89 p Purchase of Capital Goods Exceedinq PlM - 192 100.85 - 228 169.51 Total 2 523 730.57 2 400 968.44 2 096 533.41 2 040 393.40 Less: Deferred for the succeedinq period 2 208 867.59 2 096 533.41 1 812 223.89 1 774 236.17 Amortized input tax on capital goods exceeding PlM 314 862.98 304,435.03 284,309.52 266,157.23 Input Tax Due on Current Purchases of Goods other than Capital Goods Input tax on purchase of capital goods not exceeding PlM 19 959.01 69,975.36 32,948.79 38 389.18 Input tax on domestic purchases of goods other than capital goods 671 147.83 215 423.17 359 519.56 321 018.60 Sub-total 691106.84 285.398.53 392468.35 3S9407.78 Input Tax Paid on:

Importation of goods other than capital goods 9 386.00 - 23,644.00 - Input tax on domestic Total 2 523 730.57 420 270.36 2 944 000.93 1774236.17 1,169 764.76 161,272.34 1 567 109.16 1 728 381.50 33,030.00 purchases of services 3 905,464.18 8,808 967.14 9,505 934.41 8 504,492.35 30 724,858.08 Services Rendered by Non-residents 7 144.50 - 198 010.49 - 205,154.99 Sub-total 3921994.68 8808967.14 9727.588.90 8504492.35 30963043.07 Total input tax during the period P4,927 964.50 P9,398,800.70 P10,404,366. 77 P9,130,057.36 P33,861,189.33 1" Quarter 2"• Quarter 3"' Quarter 4"' Quarter

CY 2016

(Exhibit "P-11") (Exhibit "P-13") (Exhibit "P-15") (Exhibit "P-16") Total Input Tax Due on Capital Goods exceeding PlM Deferred from previous quarter p 2 523 730.57 p 2 208 867.59 p 2 096 533.41 p 1,812 223.89 p 8 641,355.46 Purchase of Capital Goods Exceeding PlM - 192 100.85 - 228 169.51 420,270.36 Total 2 523 730.57 2 400 968.44 2,096 533.41 2,040 393.40 9,061 625.82 'pG

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

Less: Deferred for the succeeding period 2,208 867.59 2 096,533.41 1 812,223.89 Amortized input tax on capital goods exceeding PlM 314 862.98 304 435.03 284 309.52 Input Tax Due on Current Purchases of Goods other than Capital Goods Input tax on purchase of capital goods not exceeding PlM 19 959.01 69 975.36 32 948.79 Input tax on domestic purchases of goods other than capital qoods 671147.83 215,423.17 359,519.56 Sub-total 691106.84 285.398.S3 392,468.3S Input Tax Paid on:

Importation of goods other than capital goods 9 386.00 - 23 644.00 Input tax on domestic purchases of services 3 905 464.18 8 808 967.14 9 505 934.41 Services Rendered by Non-residents 7 144.50 - 198 010.49 Sub-total 3921994.68 8808967.14 9 727.588.90 Total input tax during the period P4 927 964.50 P9 398 800.70 L_l"l.OA-0_~~6.7_!_ 1 774 236.17 7 891 861.06 266 157.23

1169 764.76

38 389.18 161 272.34 321 018.60 1,567 109.16 3S9,407.78 1,728 381.50 - 33 030.00 8 504 492.35 30 724 858.08 - 205 154.99 8S04492.3S 30,963043.07 f"9A30,0S7.36 P33,861,189.33 The above input VAT do not appear to be transitional input taxes, as understood under Section lll(A) of the NIRC of 1997, as amended, to wit:

"SEC. 111.

Transitional/Presumptive Input Tax Credits.- (A) Transitional Input Tax Credits. -A person who becomes liable to value-added tax or any person who elects to be a VAT-registered person shall, subject to the filing of an inventory according to the rules and regulations prescribed by the Secretary of Finance, upon recommendation of the Commissioner, be allowed input tax on his beginning inventory of goods, materials and supplies equivalent to two percent (2%) of the value of such inventory or the actual value-added tax paid on such goods, materials and supplies, whichever is higher, which shall be creditable against the output tax." Transitional input tax credit operates to benefit newly VAT- registered persons, whether or not they previously paid taxes in the acquisitions of their beginning inventory of goods, materials and ?z-- CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue supplies. During the period of transition from non-VAT to VAT status, the transitional input tax credit serves to alleviate the impact of the VAT on the taxpayer.61 Since there is no showing that the above-stated input VAT is transitional input VAT, petitioner has complied with the sixth requisite for the grant of an input VAT refund. The input taxes were due and paid.

Out of the reported total input VAT of P33,861,189.33, the subject of the present claim for refund only amounts to P15,950,720.98, as shown below: Attributable to Attributable to Particulars VA Table Sales Zero-Rated Sales Total Input Tax Due on Current Purchases of Goods other than Capital Goods Input tax on purchase of capital goods not exceeding PlM p - p 161 272.34 p 161 272.34 Input tax on domestic purchases of goods other than capital goods 435 482.14

1131 627.02

1 567 109.16 Input Tax Paid on:

- Input tax on domestic purchases of services 17 474,986.21 13,249 871.87 30 724,858.08 Importation of goods other than capital goods 33 030.00 33 030.00 Services Rendered by Non-residents 205 154.99 205 154.99 Sub-total p 17 910 468.35 p 14 780 956.22 p 32 691,424.57 Amortization of input tax of capital goods exceeding PlM

1169 764.76

1 169,764.76 Total P17,910,468.35 p 15,950,720.98 p 33,861,189.33 To substantiate the foregoing, petitioner submitted various official invoices, ORs, import documents and BIR Forms No. 1600.62 However, to validly claim for refund, petitioner must show compliance with the substantiation and invoicing requirements ,1e-

First Gen Hydropower Corporation v. Commissioner of Internal Revenue provided by Sections 110 and 113 of the NIRC of 1997, as amended, to wit:

"SEC. 110. Tax Credits. - (A) Creditable Input Tax. -

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

(a) Purchase or importation of goods: XXX XXX XXX

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

(2) The input tax on domestic purchase or importation of goods or properties by a VAT-registered person shall be creditable:

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

(b) To the importer upon payment of the value- added tax prior to the release of the goods from the custody of the Bureau of Customs. Providect That the input tax on goods purchased or imported in a calendar month for use in trade or business for which deduction for depreciation is allowed under this Code shall be spread evenly over the month of acquisition and the fifty-nine (59) succeeding months if the aggregate acquisition cost for such goods, excluding the VAT component thereof, exceeds One million pesos (P1,000,000): Providec£ however, That if the estimated useful life of the capital good is less than five (5) years, as used for depreciation purposes, then the input VAT shall be spread over such a shorter period: Providec£ further, That the amortization of the input VAT shall only be allowed until December 31, 2021 after which taxpayers with unutilized input VAT on capital goods purchased or imported shall be allowed to apply the same ?r-

First Gen Hydropower Corporation v. Commissioner of Internal Revenue as scheduled until fully utilized: Provided, finally, That in the case of purchase of services, lease or use of properties, the input tax shall be creditable to the purchaser, lessee or licensee upon payment of the compensation, rental, royalty or fee." "SEC. 113. Invoicing and Accounting Requirements for VAT-registered Persons. - (A) Invoicing Requirements. - A VAT-registered person shall issue:

(1) A VAT invoice for every sale, barter or exchange of goods or properties; and

(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

(a) The amount of the tax shall be shown as a separate item in the invoice or receipt;

(b) If the sale is exempt from value-added tax, the term 'VAT-exempt sale' shall be written or printed prominently on the invoice or receipt;

(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;

(d) If the sale involves goods, properties or services some of which are subject to and some of which J-z-

First Gen Hydropower Corporation v. Commissioner of Internal Revenue are VAT zero-rated or VAT-exempt, the invoice or receipt shall clearly indicate the break-down of the sale price between its taxable, exempt and zero-rated components, and the calculation of the value-added tax on each portion of the sale shall be shown on the invoice or receipt:

Provide~ That the seller may issue separate invoices or receipts for the taxable, exempt, and zero- rated components of the sale.

(3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; and

(4) In the case of sales in the amount of One thousand pesos (Pl,OOO) or more where the sale or transfer is made to a VAT-registered person, the name, business style, if any, address and Taxpayer Identification Number (TIN) of the purchaser, customer or client." The foregoing provisions are further implemented by Sections 4.110-2, 4.110-8 and 4.113-l(A) and (B) of RR No. 16-05, as amended, to wit:

"SEC. 4.110-2.

Persons Who Can Avail of the Input Tax Credit. - The input tax credit on importation of goods or local purchases of goods, properties or services by a VAT-registered person shall be creditable:

(a) To the importer upon payment of VAT prior to the release of goods from customs custody;

(b) To the purchaser of the domestic goods or properties upon consummation of the sale; or

(c) To the purchaser of services or the lessee or licensee upon payment of the compensation, rental, royalty or fee." "SEC. 4.110-8.

Substantiation of Input Tax Credits.-

(a) Input taxes for the importation of goods or the domestic purchase of goods, properties or services is made in the course of trade or business, whether such ?--

First Gen Hydropower Corporation v. Commissioner of Internal Revenue input taxes shall be credited against zero-rated sale, nonzero-rated sales, or subjected to the 5% Final Withholding VAT, must be substantiated and supported by the following documents, and must be reported in the information returns required to be submitted to the Bureau:

(1) For the importation of goods import entry or other equivalent document showing actual payment of VAT on the imported goods.

(2) For the domestic purchase of goods and properties-invoice showing the information required under Sees. 113 and 237 of the Tax Code.

(3) For the purchase of real property-public instrument i.e., deed of absolute sale, deed of conditional sale, contract/agreement to sell, etc. together with VAT invoice issued by the seller.

( 4) For the purchase of services-official receipt showing the information required under Sees. 113 and 237 of the Tax Code. A cash register machine tape issued to a registered buyer shall constitute valid proof of substantiation of tax credit only if it shows the information required under Sees. 113 and 237 of the Tax Code.

(b) Transitional input tax shall be supported by an inventory of goods as shown in a detailed list to be submitted to the BIR.

(c) Input tax on 'deemed sale' transactions shall be substantiated with the invoice required under Sec. 4.113- 2 of these Regulations.

(d) Input tax from payments made to nonresidents (such as for services, rentals and royalties) shall be supported by a copy of the Monthly Remittance Return of Value Added Tax Withheld (BIR Form 1600) filed by the resident payor in behalf of the nonresident evidencing remittance of VAT due which was withheld by the payor.)'t.

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

(e) Advance VAT on sugar shall be supported by the Payment Order showing payment of the advance VAT." "SEC. 4.113-1.

Invoicing Requirements. - (A) A VAT-registered person shall issue: - (1) A VAT invoice for every sale, barter or exchange of goods or properties; and (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:

(a) The amount of tax shall be shown as a separate item in the invoice or receipt;

(b) If the sale is exempt from VAT, the term 'VAT-exempt sale' shall be written or printed prominently on the invoice or receipt; Jw-

CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue

(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;

(d) If the sale involves goods, properties or services some of which are subject to and some of which are VAT zero-rated or VAT- exempt, the invoice or receipt shall clearly indicate the break-down of the sale price between its taxable, exempt and zero-rated components, and the calculation of the VAT on each portion of the sale shall be shown on the invoice or receipt. The seller has the option to issue separate invoices or receipts for the taxable, exempt, and zero-rated components of the sale.

(3) In the case of sales in the amount of one thousand peso (P1,000.00) or more where the sale or transfer is made to a VAT-registered person, the name, business style, if any, address and TIN of the purchaser, customer or client, shall be indicated in addition to the information required in (1) and (2) of this Section."

In addition to the above-enumerated requirements, the sales invoices (Sis) and ORs must be duly registered with the BIR as prescribed under Section 237 in relation to Section 238, both of the NIRC of 1997, as amended, to wit: "SEC. 237. Issuance of Receipts or Sales or Commercial Invoices. - (A) Issuance. - All persons subject to an internal revenue tax shall, at the point of each sale and transfer of merchandise or for services rendered valued at One hundred pesos (P100) or more, issue duly registered receipts or sale or commercial invoices, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: Providec!_ however, That where the receipt is issued to cover payment made jc- DEQSION First Gen Hydropower Corporation v. Commissioner of Internal Revenue as rentals, commissions, compensation or fees, receipts or invoices shall be issued which shall show the name, business style, if any, and address of the purchaser, customer or client: Provided, further, That where the purchaser is a VAT-registered person, in addition to the information herein required, the invoice or receipt shall further show the Taxpayer Identification Number (TIN) of the purchaser.

XXX XXX XXX."

"SEC. 238.

Printing of Receipts or Sales or Commercial Invoices. - All persons who are engaged in business shall secure from the Bureau of Internal Revenue an authority to print receipts or sales or commercial invoices before a printer can print the same No authority to print receipts or sales or commercial invoices shall be granted unless the receipts or invoices to be printed are serially numbered and shall show, among other things, the name, business style, Taxpayer Identification Number (TIN) and business address of the person or entity to use the same, and such other information that may be required by rules and regulations to be promulgated by the Secretary of Finance, upon recommendation of the Commissioner." Based on the verification made by the ICPA, Mr. Enrico E. Baluyut of R.G. Manabat & Co., the input VAT amounting to P1,376,781.48 shall be disallowed for not being properly substantiated by the above-stated requirements. Thus, the ICPA's findings thereon are summarized as follows: Particulars Exhibit Input VAT Purchases of Services and of Goods other than Capital Goods Domestic purchase of goods other than capital goods and domestic "P-41" p 63 498.40 "P-48" 216,236.93 a.

purchase of service supported with invoices/ORs containing incorrect "P-55" 186,629.50 address of the Company "P-60" 178,193.57 Domestic purchase of goods other than capital goods and domestic "P-42" 31 520.52 b.

purchase of service supported with Statement of Account/Billing "P-49" 12,744.31 Statement/Cash Receipt/ Acknowledgement Receipt/Non-VAT "P-56" 15,605.50 Acknowledgement Receipt/Service Invoice only/Collection Receipt only "P-61" 19 198.47 Domestic purchase of goods other than capital goods and domestic "P-44" 22.67 c.

purchase of service supported with invoices/ORs containing an "P-50" 1,394.46 incorrect name of the Company "P-58" 1,896.64 '-J.-.- d.

e.

f.

g.

h.

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

Domestic purchase of goods other than capital goods and domestic purchase of service supported with out-of-period invoices/ORs Importation of goods other than capital goods supported with out-of- period import entry documents Domestic purchase of goods other than capital goods and domestic purchase of service supported with invoices/ORs that the input VAT is not separately indicated Domestic purchase of goods other than capital goods and domestic purchase of service supported with tape receipt Domestic purchase of goods other than capital goods and domestic purchase of service supported with invoices/ORs containing an incomplete name of the Company sub-total "P-63" 1,861.11 "P-43" 2,958.53 "P-57" 10 522.89 "P-62" 59,367.84 "P-45" 3 244.00 "P-51" 252.00 "P-64" 3 190.32 "P-52" 1 308.00 "P-65" 7,032.00 p 816,677.66 Purchases of Capital Goods not exceeding PlMillion Purchase of capital goods not exceeding P1Million supported with "P-70" p 5 582.14 a.

"P-72" 26 314.65 invoices/ORs containing an incorrect address of the Company "P-75" 19 355.25 sub-total p 51,252.04 Purchases of Capital Goods exceeding PlMillion Purchase of capital goods exceeding P1Million supported with a.

invoices/ORs containing an incorrect address of the Company - amortization for the current year purchases "P-78" 732.59 b.

Purchase of capital goods exceeding P1Million supported with out-of- period invoices/ORs - amortization for the current year purchases "P-79" 4,625.00 Purchase of capital goods exceeding P1Million from previous years c.

supported with invoices/ORs containing an incorrect address of the Company "P-81" 366,545.81 d.

Purchase of capital goods exceeding P1Million from previous years supported with Statement of Accounts Only "P-82" 30 390.00 e.

Purchase of capital goods exceeding P1Million from previous years supported with undated invoice "P-83" 264.66 f.

Purchase of capital goods exceeding P1Million from previous years not substantiated "P-84" 106,293.72 sub-total p 508,851.78 TOTAL P1,376,781.48 Exhibit "P-38-IF" "P-38-IG" "P-38-IH" "P-38-Il" -- Upon further verification, the Court finds that the input VAT amounting to P9,001,583.31, as presented below, must also be disallowed for the reasons herein stated: Claimed Input

VENDOR NAME

VAT Remarks Supported by Exhibit which was Globe Telecom Inc.

p 380.60 denied admission by the Court. Supported by Exhibit which was Hospitality International Inc. 2 860.64 denied admission by the Court. Supported by Exhibit which was RS Components Corporation 1 284.55 denied admission by the Court. Supported by Exhibit which was Monark Equipment Corporation 1,882.92 denied admission by the Court. I "P-38-IJ" "P-38-IK" "P-38-IL" "P-38-IM" "P-38-IN" "P-38-IO" "P-38-IP" "P-38-10" "P-38-IR" "P-38-IS" "P-38-IT" "P-38-IU" "P-38-IV" "P-38-IW" "P-38-IX" "P-38-IY" ''P-38-IZ" "P-38-JA" "P-38-JB" "P-38-JC" "P-38-JD" "P-38-JE" "P-38-JF" "P-38-JG" "P-38-JH" "P-38-JI" "P-38-JJ" "P-38-JK" "P-38-JL" "P-38-8" "P-38-G" First Gen Hydropower Corporation v. Commissioner of Internal Revenue Suy Sing Commercial Corporation 4 157.82 Portalloy Industrial Supply Corp. 348.00 Up-Town Industrial Sales, Inc. 1 008.83 Toyota Cabanatuan City, Inc. 235.20 Eden Construction 7 477.61 Southbend Security & Investiqative Services, Inc. 955.80 South bend Security & Investiqative Services Inc. 7 105.63 RS Components Corporation 1 307.31 Fire Solutions, Inc.

82 793.87 Pixa Corporation 2 950.00 Hi-Safety Industrial Supplies Inc. 562.50 Hospitality International Inc. 635.70 Globe Telecom, Inc.

116.02 Cuervo Appraisers Inc.

9,128.57 S.S.R. Construction 30 661.74 Pantabangan Petron Bulilit Station 24 321.43 TGServices Inc.

3 255.10 TGServices Inc.

29 954.21 Citiband Corporation 1101.21 Nationware Marketing Services Inc. 590.94 RS Components Corporation 804.84 Deluxe Industrial Supplies Corporation 2,834.16 Eagle Star Industrial Sales Corporation 482.14 Up-Town Industrial Sales Incorporated 1,454.45 MOF Company (Subic), Inc. 41 785.71 Northgate Technologies Inc. 203.57 Top-rigid Industrial Safety Supply, Inc. 235.80 Top-rigid Industrial Safety Supply, Inc. 123.30 Basic Occupational Safety Supplies Phils. Inc. 160.72 Hospitality International Inc. 1 408.31 Hotel Enterprises of the PhiliPPines Inc. 2 588.94 Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Supported by Exhibit which was denied admission by the Court. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. ~ "P-38-1" "P-38-J" "P-38-L" "P-38-M" "P-38-N" "P-38-0" "P-38-P" "P-38-Q" ''P-38-U" "P-38-V" "P-38-W" "P-38-X" "P-38-Z" "P-38-AA" "P-38-AD" "P-38-AF" "P-38-AG" "P-38-AH" "P-38-AI" ''P-38-AJ" "P-38-AK" "P-38-AL" "P-38-AM" "P-38-AN" "P-38-AR" "P-38-AS" "P-38-AT" "P-38-AU" "P-38-AX" "P-38-BB" "P-38-BD" "P-38-BH"

CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue

U-Bix Corporation 1144.48 Royal Cargo Inc.

1 800.00 Hospitality International Inc. 322.74 TGServices, Inc.

229,859.03 TGServices, Inc.

14 001.39 TGServices, Inc.

3 741.85 TGServices, Inc.

5 746.80 TGServices, Inc.

39 755.06 Southbend Security & Investigative Services Inc. 936.51 Southbend Security & Investigative Services Inc. 7 545.52 TGServices, Inc.

788.35 Diagnostics & Maintenance Technique, Inc. 25 141.29 Quantuvis Resources Corporation 2 163.46 Easytrip Services Corporation 84.00 Donpin Corporation 502 559.37 Suy Sinq Commercial Corporation 857.31 American Technoloqies Inc. 10 107.14 Microbase Incorporated 2 400.47 Indra Philippines Inc. (For. Soluziona Phils Inc.) 16 824.61 Globe Telecom Inc.

5 642.40 Microbase Incorporated 2 187.86 Sayan Telecommunications Inc. 4 032.00 Sayan Telecommunications Inc. 3 000.00 American Technoloqies Inc. 10 107.14 Southbend Security & Investiqative Services Inc. 7 511.54 Southbend Security & Investiqative Services Inc. 995.52 Trends and Technoloqies Inc. 5 400.00 Trends and Technoloqies Inc. 75 469.68 Center for Reliability Excellence Laboratories Corporation 3 984.00 Continental Rental & Tours Inc. 957.60 Easytrip Services Corporation 84.00 Microbase Incorporated 2.276.79 Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Supported by unreadable document. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Input VAT Amount not separately indicated.

Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not ~ "P-38-SI" "P-38-SJ" "P-38-SK" "P-38-SL" "P-38-SM" "P-38-SN" "P-38-SO" "P-38-BP" "P-38-SQ" "P-38-SR" "P-38-ST" "P-38-SU" "P-38-SV" "P-38-SW" "P-38-BZ" "P-38-CA" "P-38-CS" "P-38-CC" "P-38-CD" "P-38-CE" "P-38-CG" "P-38-CH" "P-38-CM" "P-38-CN" "P-38-CO" "P-38-CP" "P-38-CO" "P-38-CW" "P-38-DH" "P-38-DP" "P-38-DQ"

CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue

Richmonde Hotel Ortigas 821.52 Rockwell Hotels and Leisure Management Corp. 762.53 Easytrip Services Corporation 84.00 Manila North Tollwavs Corp. 1 702.71 IC 888 Transits Inc.

10 971.75 TGServices Inc.

5 185.22 TGServices Inc.

3 639.66 TGServices Inc.

12 460.97 TGServices Inc.

5 768.76 TGServices Inc.

39 645.52 Hydrautechnik Inc.

4 200.00 Shellsoft Technoloqy Corporation 39 466.57 Globe Telecom Inc.

5 689.94 Pulp Global Direct Philippines Inc. 16.05 Manila Execon Group, Inc. 54 056.40 Southbend Security & Investiqative Services Inc. 7 282.90 South bend Security & Investiqative Services Inc. 973.20 Southbend Security & Investiqative Services Inc. 944.95 South bend Security & I nvestiqative Services Inc. 7 680.31 U-Six Corporation 2 827.62 Fire Solutions Inc.

320 244.57 I3 Technoloqies Corporation 22 363.72 TGServices Inc.

6 556.51 TGServices Inc.

10 665.49 TGServices Inc.

4 225.89 TGServices Inc.

4 088.56 TGServices Inc.

38 652.03 U-Six Corporation 4,662.73 Center for Leadership and Change Inc. 4,320.00 Sayan Telecommunications Inc. 3,000.00 Sayan Telecommunications Inc. 4 032.00 indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/~ecified in the OR. Nature of the service not indicated/~cified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not ;..- "P-38-DR" "P-38-DS" "P-38-DT" "P-38-EC' "P-38-ED" "P-38-EE" "P-38-EF" "P-38-EI" "P-38-EJ" "P-38-EK" "P-38-EL" "P-38-EM" "P-38-EN" "P-38-EO" "P-38-EP" "P-38-ER" "P-38-ES" "P-38-ET" "P-38-EV" "P-38-FA" "P-38-FB" "P-38-FC" "P-38-FD" "P-38-FG" "P-38-FI" "P-38-FJ" "P-38-FK" "P-38-FL" "P-38-FM" "P-38-FN" "P-38-FO" CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue American Technologies Inc. 10 107.14 Trends and Technologies Inc. 25 156.56 TGServices Inc.

30 000.00 Southbend Security & Investigative Services Inc. Southbend Security & Investigative Services Inc. Southbend Security & Investigative Services Inc. Southbend Security & Investigative Services Inc. 7 273.49 TGServices Inc.

4 068.00 Center for Reliability Excellence Laboratories Corporation 5 478.00 Manila North Tollways Corp. 974.77 Easytrip Services Corporation 84.00 TGServices Inc.

5 812.64 TGServices Inc.

788.35 TGServices Inc.

3 841.35 TGServices Inc.

4 068.00 TGServices Inc.

11 564.05 TGServices Inc.

5 465.77 TGServices Inc.

34 270.36 Jardine Schindler Elevator Corporation 25 260.00 Hospitality International Inc. 1 907.09 SAP Philippines Inc.

37 707.12 SAP Philippines, Inc.

21 722.58 B. M. Dominqo Motor Sales Inc. 593.36 SGV &Co.

6 585.00 TGServices, Inc.

5,284.17 TGServices, Inc.

3,618.82 TGServices, Inc.

9,971.56 TGServices, Inc.

6 000.00 TGServices Inc.

5 113.31 TGServices Inc.

32 477.01 Hospitality International Inc. 317.85 indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Incorrect TIN of petitioner. Nature of the service not indicated/specified in the OR. Incorrect TIN of petitioner. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/soecified in the OR. Nature of the service not indicated/soecified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. " ''P-38-FX" "P-38-FY" "P-38-GH" "P-38-GI" "P-38-GJ" "P-38-GK" "P-38-GN" "P-38-GO" "P-38-GP" "P-38-GQ" "P-38-GS" "P-38-GU" "P-39-A" to "P-39-C" "P-40-A" to "P-40-B" "P-46-A" "P-46-B" "P-46-C" "P-46-D" "P-46-E" "P-46-F" "P-46-G" "P-46-H" "P-46-1" "P-46-J" "P-46-K" "P-46-5" "P-46-V" "P-46-AF" "P-46-AG" "P-46-AH" "P-46-AM"

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

Southbend Security & Investigative Services Inc. 1 033.42 South bend Security & Investiqative Services Inc. 7 758.83 Indra Philippines Inc.

35 392.20 Indra Philippines Inc.

33 933.60 American Technologies Inc. 10 107.14 Indra Philippines Inc.

27 334.80 Indra Philippines Inc.

25 236.00 Rockwell Hotels And Leisure Management Corp. 1 789.00 Bayan Telecommunications, Inc. 3 000.00 Bayan Telecommunications, Inc. 4 032.00 Microbase, Incorporated 2 517.86 Globe Telecom, Inc.

5,259.83 Forrestry Suppliers Inc. 6,142.00 ABS Quality Evaluations Inc. 7,144.50 Business Process Outsourcing International 14 400.00 Southbound Security & Investigating Services, Inc.

893.70 Southbound Security & Investigating Services, Inc.

6,702.19 Prudential Guarantee and Assurance, Inc. 2,430.00 Manila North Tollways Corp. 1,279.20 IC 888 Transits Inc.

3,052.28 American Technologies, Inc. 22,767.86 American Technologies, Inc. 22,767.86 American Technologies Inc. 12 738.67 American Technologies Inc. 12 738.67 Microbase Incorporated 2 357.14 GG & G Distributors Inc. 1 919.45 Hospitality International Inc. 635.70 American Technologies Inc. 10 107.14 South bend Security & Investiqative Services Inc. 968.83 Southbend Security & Investiqative Services Inc. 7 258.98 Indra Philippines Inc.

25 457.40 Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Without proof that VAT was actually paid.

Without proof that VAT was actually paid.

Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Issued not in the name of petitioner.

Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. ~ "P-46-AQ" "P-46-AU" "P-46-AX" "P-46-AZ" "P-46-BA" "P-46-BD" "P-46-BG 11 "P-46-BH" "P-46-BM" "P-46-BN" "P-46-BP" "P-46-BR" "P-46-BS" "P-46-BT" "P-46-BU" "P-46-BV" "P-46-BW" "P-46-BX" "P-46-BY" "P-46-BZ" "P-46-CA" "P-46-CD" "P-46-CE" "P-46-CF" "P-46-CG" "P-46-CH" "P-46-CI" "P-46-CM" "P-46-CN" "P-46-CO" "P-46-CP" DEGSION First Gen Hydropower Corporation v. Commissioner of Internal Revenue TGServices Inc.

4,491.33 Lancaster Hotels Land And Properties Inc. 1182.17 The Mercantile Insurance Co., Inc. 484.49 South bend Security & Investiqative Services Inc. 1107.74 Southbend Security & Investiqative Services Inc. 8 015.31 Center For Reliability Excellence Laboratories Corporation 5 478.00 Tantoco Villanueva De Guzman And Llamas Law Offices 360.00 TGServices Inc.

9 226.45 Microbase Incorporated 2 579.31 Solutions Experts And Enablers Inc. 110.56 Globe Telecom Inc.

137.98 HospitalitY International Inc. 322.74 TGServices Inc.

5 663.84 TGServices Inc.

4 068.00 TGServices Inc.

788.35 Lane Movinq And Storage, Inc. 14 897.79 TGServices Inc.

3 008.56 TGServices Inc.

5 172.78 TGServices Inc.

4 999.64 TGServices, Inc.

5 406.11 TGServices, Inc.

9 204.85 Manila North Tollways Corp 2 023.82 Continental Rental & Tours Inc. 2 577.60 U-Bix Corporation 2 141.44 IC 888 Transits, Inc.

1 518.21 IC 888 Transits, Inc.

2 027.36 TGServices, Inc.

4,519.33 Southbend Security & Investigative Services Inc. 979.00 Southbend Security & Investigative Services Inc. 7 260.07 Stern Real Estate And Dev'T Corporation (Hotel Rembrandt) 337.92 Center For Leadership And Change Inc. 2 736.00 Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. "' "P-46-CQ" "P-46-CV" "P-46-CW" "P-46-CX" "P-46-CY/1 "P-46-CZ" "P-46-DB" "P-46-DC" "P-46-DD" "P-46-DE" "P-46-DF" "P-46-DG" "P-46-DH" "P-46-DI" "P-46-DQ" "P-46-EA" "P-46-EF" "P-46-EJn "P-46-EU" "P-46-EV" "P-46-EW" "P-46-EX" "P-46-EY" "P-46-EZ" "P-46-FA" "P-46-FB" "P-46-FR" "P-46-FW" "P-46-FY" "P-46-FZ" "P-46-GA" CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue Tantoco Villanueva De Guzman And Llamas Law Offices 756.00 TGServices Inc.

5 284.17 TGServices Inc.

6 000.00 TGServices Inc.

4 068.00 TGServices Inc.

6 625.64 Mckenzie Industrial Paintinq Services 23 166.96 TGServices Inc.

9 174.06 TGServices Inc.

3 712.85 TGServices Inc.

5 597.78 TGServices Inc.

34 794.49 TGServices Inc.

4 191.49 TGServices Inc.

11 432.25 TGServices Inc.

5 763.49 Pixa Corporation 5 900.00 American Technoloqies Inc. 10 107.14 Business Process Outsourcinq International Inc. 2 520.00 U-Bix Corporation 1 891.20 TGServices Inc.

37 758.38 TGServices Inc.

29 562.59 TGServices Inc.

788.35 Trends & Technologies Inc. 15,955.91 Southbend Security & Investiqative Services Inc. 962.35 South bend Security & Investigative Services Inc. 7,280.00 Atlas Copco (Philippines), Inc. 7,733.76 U-Bix Corporation 1,632.82 U-Bix Corporation 698.97 TGServices, Inc.

5 128.53 TGServices, Inc.

5 690.69 TGServices Inc.

6 310.86 TGServices, Inc.

35 596.15 TGServices Inc.

3 806.32 Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Incorrect TIN of petitioner. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. "" "P-46-GB" "P-46-GE" "P-46-GF" "P-46-GHn "P-46-GI" "P-46-GJ" "P-46-GK" "P-46-GM" "P-46-GN" "P-46-GO" "P-46-GP" "P-46-GT" "P-46-GU" "P-46-GX" "P-46-HC" "P-46-HD" 11P-46-HE" "P-46-HG" "P-46-HH" "P-46-HJ" "P-46-HR" "P-46-HS" 11P-46-HT" "P-46-HV" "P-46-18 11 "P-46-IC" "P-46-ID" "P-46-10" "P-46-IR" "P-46-IT" "P-46-IU"

CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue

TGServices Inc.

7 714.60 TGServices Inc.

6 000.00 SGV &Co.

6 592.32 TGServices Inc.

5 284.17 TGServices Inc.

3 704.81 TGServices Inc.

4 068.00 TGServices Inc.

788.35 Southbend Securitv & Investiaative Services Inc. 989.65 TGServices Inc.

15 810.72 TGServices Inc.

5 152.11 Microbase Incoroorated 2 115.43 Manila North Tollwavs Corp 1 891.58 TGServices Inc.

30 648.43 Southbend Securitv & Investiaative Services, Inc. 7 567.62 Hosoitalitv International Inc. 317.85 Business Process Outsourcina International Inc. 2 520.00 Center For Leadershio And Chanae Inc. 44 793.00 Powerlink Securitv And Investiqative Services Inc. 1 613.65 Business Process Outsourcinq International, Inc. 2 520.00 Sim Computer Sales, Inc. 12 385.72 Easv Trio Services Corporation 84.00 Manila North Tollwavs Corp. 2 356.71 IC 888 Transits, Inc.

888.96 MHE-Demaa (P) Inc 90 182.08 American Technoloqies Inc. 10 107.14 American Technoloaies Inc. 35,506.53 The Law Firm of Quiason Makalintal Barot Torres Ibarra & Sison 55.70 South bend Securitv & Investiaative Services, Inc. 182.12 South bend Securitv & Investiaative Services Inc. 1171.96 Microbase Incoroorated 2 196.43 Center for Reliability Excellence Laboratories Corooration 5 478.00 Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/soecified in the OR. Nature of the service not indicated/soecified in the OR. Nature of the service not indicated/soecified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/soecified in the OR. Nature of the service not indicated/soecified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Incomplete/Incorrect name of petitioner.

Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Incorrect TIN of petitioner. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/soecified in the OR. Nature of the service not indicated/soecified in the OR. Nature of the service not indicated/soecified in the OR. I" "P-46-IX" "P-53-B" "P-53-C" "P-53-D" "P-53-I" "P-53-J" 11P-53-K" 11P-53-0" "P-53-R" "P-53-U" "P-53-Y" "P-53-Z" "P-53-AE" "P-53-AF" "P-53-AG" "P-53-AL" "P-53-AM" "P-53-AO" "P-53-AP" "P-53-AS" 11P-53-AV" "P-53-AX" "P-53-AY" "P-53-AZ" "P-53-BA 11 "P-53-BB" "P-53-BL" "P-53-BU" "P-53-BV" "P-53-BW" "P-53-BX" "P-53-BY" First Gen Hydropower Corporation v. Commissioner of Internal Revenue Switch Industrial Sales Corporation 4 639.29 Globe Telecom, Inc.

214.80 Powerlink Security & Investigate Services Inc. 527.37 U-BIX Corporation 2 288.97 American Technologies, Inc. 10,107.14 Solutions Experts and Enablers Inc. 10 992.74 Solutions Experts and Enablers Inc. 107.36 ISUZU - B.M. Domingo Motor Sales Inc. 174.85 Step Asia Inc.

2 037 259.10 Southbend Security & Investigative Services Inc. 1 019.74 People's International Enterprises Company 19 285.71 Continental Rental & Tours Inc. 972.00 TGServices, Inc.

6 000.00 Southbend Security & Investigative Services Inc. 1 055.69 Southbend Security & Investigative Services Inc. 7 891.17 WifiCity, Inc.

232.48 WifiCity, Inc.

754.58 IC 888 Transits Inc.

1 478.89 Southbend Security & Investigative Services Inc. 993.60 New Capitol Tire Trading Corp. 1 050.00 Fire Solutions Inc.

146 600.34 Forqems Plus Technoloqies Corporation 1 339.26 TGServices Inc.

6 000.00 TGServices Inc.

788.35 TGServices Inc.

4 068.00 Business Process Outsourcinq International 2 520.00 Fii-Chin Engineerinq 43 928.57 TGServices Inc.

5 518.43 Easy Trip Services Corporation 84.00 Manila North Tollways Corp. 2 103.54 Powerlink Security & Investigate Services Inc. 2 954.22 TGServices Inc.

Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Not dated.

Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not - "P-53-BZ" "P-53-CA 11 "P-53-CD" "P-53-CE" "P-53-CF" "P-53-CG" "P-53-CH" "P-53-CI" "P-53-0 11 "P-53-CK" "P-53-CL" "P-53-CM" "P-53-CN" "P-53-CO" "P-53-CP" "P-53-CQ" "P-53-CR" "P-53-CS" "P-53-CT" "P-53-CU" "P-53-CV" "P-53-DC" "P-53-DF" "P-53-DG" "P-53-DK" "P-53-DM" "P-53-DO" "P-53-DP" "P-53-DW" "P-53-DX" "P-53-EA"

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

4,068.00 TGServices, Inc.

788.35 Solarnrg Philippines Inc. 14 400.00 Accent Micro Technologies, Inc. 396.43 TGServices Inc.

4 527.48 TGServices, Inc.

6 022.88 TGServices Inc.

3 601.69 TGServices, Inc.

4 857.22 TGServices, Inc.

3 066.27 TGServices, Inc.

3,729.27 TGServices Inc.

2 969.67 TGServices Inc.

6 348.07 TGServices Inc.

2 650.11 TGServices Inc.

6 000.00 TGServices Inc.

2 129.12 TGServices Inc.

28 923.90 TGServices Inc.

24 985.55 TGServices Inc.

1,013.86 TGServices Inc.

689.66 TGServices Inc.

1 600.65 TGServices Inc.

36 942.66 TGServices Inc.

34 513.39 Center For Leadership And Chanqe Inc. 13 680.00 Indra Philippines Inc. (For: Soluziona Phils. Inc.) 23 388.30 SGV &Co.

27 984.00 Globe Telecom Inc.

5 431.54 American Technoloqies Inc. 10 107.14 Wificitv, Inc.

232.48 Southbend Securitv & Investiqative Services Inc. 7 513.69 Microbase, Incorporated 2 116.07 TGServices, Inc.

37 500.39 Trends & Technoloqies, Inc. 56,142.12 indicated/sp~ified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/S!JE'!Cified in the OR. Incorrect TIN of petitioner. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/s~cified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. ~ "P-53-EB" "P-53-EC" 11P-53-ED" "P-53-EJ" "P-53-EK" "P-53-EO" "P-53-EP" "P-53-EO" "P-53-ER" "P-53-ES" "P-53-ET" "P-53-EU" "P-53-EW" "P-53-FI" "P-53-FJ" "P-53-FK" "P-53-FL" "P-53-FN" "P-53-FO" "P-53-FP" "P-53-FQ" "P-53-FR" "P-53-FS" "P-53-FT" "P-53-FU" "P-53-FV" "P-53-FW" "P-53-FZ" "P-53-GB" "P-53-GC" "P-53-GD" First Gen Hydropower Corporation v. Commissioner of Internal Revenue Fire Solutions, Inc.

84,638.90 U-Bix Corporation 1 010.58 Miescor Builders Inc.

113 035.71 TGServices Inc.

3 104.77 U-Bix Corporation 1 596.65 Southbend Securitv & Investiqative Services Inc. 7 549.45 Southbend Securitv & Investiqative Services Inc. 1 024.13 Southbend Securitv & Investiqative Services Inc. 7 938.64 TGServices Inc.

859.17 TGServices Inc.

2 142.53 Southbend Securitv & Investiqative Services Inc. 1 070.93 Business Process Outsourcinq International Inc. 2 520.00 Hospitality International Inc. 317.85 Microbase Incorporated 2 196.43 IC 888 Transits, Inc.

2 657.57 Solutions Experts And Enablers Inc. 136.70 Solutions Experts And Enablers Inc. 292.07 Infopro Business Solutions Inc. 30,168.00 TGServices, Inc.

2 848.23 TGServices, Inc.

781.68 TGServices, Inc.

2 989.72 U-Bix Corporation 905.64 Southbend Security & Investigative Services, Inc. 8 320.38 TGServices, Inc.

7,189.11 TGServices Inc.

3,495.29 TGServices Inc.

2,189.13 TGServices Inc.

2,758.60 Infopro Business Solutions Inc. 15,084.00 Indra Philippines Inc. (For: Soluziona Phils. Inc.) 23 177.70 Powerlink Securitv And Investiqative Services Inc. 2 053.45 American Technoloqies Inc. 10 107.14 Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. ~ "P-53-GE" "P-53-GF" "P-53-GG" "P-53-GI" "P-53-GN" .. P-53-GO" "P-53-GP" "P-53-GQ" "P-53-GW" "P-53-HA" "P-53-HB" "P-53-HC" "P-53-HD" "P-53-HI" "P-53-HY" "P-54-B" "P-54-D/F" "P-54-D/F" "P-59-A" "P-59-B" "P-59-C" "P-59-D" "P-59-1" \\P-59-J" "P-59-K" "P-59-L" "P-59-M" "P-59-N" "P-59-0" "P-59-P" "P-59-R"

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

Globe Telecom Inc.

3 000.00 Globe Telecom, Inc.

4 032.00 Quiason Makalintal Barot Torres Ibarra & Sison Law Firm 11.70 Eduardo L. Enrile Jr. (Eden Construction) 11 621.27 Globe Telecom Inc.

15 000.00 5outhbend Security & Investigative Services Inc . 1 003.97 Southbend Security & Investigative Services Inc. 7 534.71 Fire Solutions, Inc.

18 987.39 Cejogua Sports Corporation 11 785.68 Globe Telecom, Inc.

5 464.82 Powerlink Security And Investigative Services Inc. 518.85 Globe Telecom Inc.

205.27 Premiere Travel And Tours Inc. 1 740.33 TGServices Inc.

5 906.88 Atlas Copco (Philippines), Inc. 9 175.92 ABS Quality Evaluations Inc. 33 004.25 National Fire Protection Association 25 189.87 Hydroewlectric Corporation 139 816.37 Manila North Tollways Corp 2 924.04 Easvtrip Services Corporation 84.00 Globe Telecom Inc 5 578.41 Trends & Technoloqies Inc 17 292.97 Microbase Incorporated 2 116.07 Shellsoft technoloqv corporation 5 804.21 Shellsoft technoloqv corporation 2 321.88 Indra Philippines Inc.

20 007.00 IC888 Transits Inc.

1 890.86 Continental Rental and Tours Inc. 588.00 American Technologies Inc. 10 107.14 Trends & Technologies Inc. 62 277.87 TGServices Inc.

788.35 Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Without proof that VAT was actually paid.

Without proof that VAT was actually paid.

Without proof that VAT was actually paid.

Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/s!)ecified in the OR. Nature of the service not indicated/specified in the OR. ..

"P-59-5" "P-59-T" "P-59-U/f ''P-59-V" "P-59-W" "P-59-Y" "P-59-Z" "P-59-H" "P-59-AA" "P-59-AB" "P-59-AC" "P-59-AD" "P-59-AE" "P-59-AF" "P-59-AG" "P-59-AJ" ''P-59-AK" ''P-59-AL" "P-59-AM" "P-59-AN" "P-59-AO" "P-59-AT" "P-59-AV" "P-59-AW" "P-59-AX" "P-59-AY" "P-59-AZ" "P-59-BD" "P-59-BE" "P-59-BF" "P-59-BG"

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

TGServices Inc.

4 068.00 TGServices Inc.

6 000.00 TGServices Inc.

1 647.72 TGServices Inc.

4,033.06 TGServices Inc.

1,770.43 TGServices Inc.

2,930.61 TGServices Inc.

1,622.89 RockweiiLandCorporation 2,304.00 TGServices Inc.

3 495.29 TGServices Inc.

3 408.25 TGServices Inc.

6 638.47 TGServices Inc.

1476.57 TGServices Inc.

2 972.49 TGServices Inc.

2 883.54 TGServices Inc.

2 919.02 TGServices Inc.

3 495.29 TGServices Inc.

4 068.00 TGServices Inc.

788.35 TGServices Inc.

7 546.84 Southbend Security & Investiqative Services Inc. 1 098.71 Eden Construction 29 053.18 Baquio Country Club Corporation 1 088.07 TGServices Inc.

33 020.36 TGServices Inc.

33 155.85 Southbend Security & Investiqative Services Inc. 8 008.79 Manila North Tollwavs Corp 2 142.64 EasytriQ_ Services Corporation 84.00 Southbend Securi!Y & Investigative Services, Inc. 1 019.74 Lancaster Hotels Land & Properties Inc. 733.20 Center for Reliability Excellence Laboratories Corporation 5,478.00 Rockwell Hotels and Leisure Management Corp. 855.01 Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Input VAT amount not indicated in the OR.

Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. ~ "P-59-BH" "P-59-BJ" "P-59-BK" "P-59-BL" "P-59-BM" "P-59-BO" "P-59-BU" "P-59-BV" "P-59-BW" "P-59-BZ" "P-59-CA" "P-59-CB" "P-59-CC" "P-59-CD" "P-59-CE" "P-59-CF" "P-59-CG" "P-59-CH" "P-59-Cl" "P-59-0" "P-59-CK" "P-59-CL" "P-59-CM" "P-59-CN" "P-59-CP" "P-59-CQ" "P-59-DF" "P-59-DG" "P-59-DH" "P-59-DI" "P-59-DJ"

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

Hospitality International Inc 317.85 TGServices Inc.

7 116.51 TGServices Inc.

1 403.18 Business Process Outsourcing International Inc. 2 520.00 Hospitality International Inc. 635.70 MHE-Demaq(P),Inc.

90 182.08 Trends & Technoloqies Inc. 126.32 Trends & Technologies Inc. 252.64 Skycable Corporation 3 503.37 Southbend Security & Investigative Services Inc. 7,636.72 Shellsoft Technology Corporation 39 882.00 TGServices Inc.

2 733.56 TGServices Inc.

3 083.63 TGServices Inc.

33 713.21 Globe Telecom Inc.

5 279.97 Globe Telecom Inc.

136.41 Globe Telecom Inc.

3 000.00 Globe Telecom Inc.

4 032.00 TGServices Inc.

8 159.39 TGServices Inc.

36 602.19 Southbend Security & Investiqative Services Inc. 1 001.38 Southbend Security & Investiqative Services Inc. 7 450.21 Rockwell Hotels and Leisure Manaqement Corp. 196.50 Kontraktwerke Inc.

9 786.24 U-Bix Corporation 1 515.83 Fire Solutions, Inc.

7 125.00 TGServicesJ. Inc.

2 903.09 TGServices, Inc.

6 000.00 TGServices Inc.

2 777.60 Manila Execon Group, Inc. 3,750.00 Cuervo Appraisers Inc.

6 085.71 Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/sPecified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. ~ "P-59-DK" "P-59-DL" "P-59-DM" "P-59-DN" "P-59-DO" "P-59-DP" "P-59-DU" "P-59-DY" "P-59-DZ" "P-59-EP" ''P-59-ET" "P-59-EV" "P-59-EW" "P-59-EX" "P-59-EY" "P-59-EZ" "P-59-FB" "P-59-FC" "P-59-FG" "P-59-FT" "P-59-FU" "P-59-FV" "P-59-FW" "P-59-FX" "P-59-FY" "P-59-FZ" "P-59-GA" "P-59-GB" "P-59-GC" "P-59-GD" "P-59-GE" First Gen Hydropower Corporation v. Commissioner of Internal Revenue TGServices Inc.

7 641.47 TGServices Inc.

1 550.88 Southbend Security & Investigative Services Inc. 998.78 TGServices Inc.

7 166.04 South bend Security & Investigative Services Inc. 7 390.66 TGServices Inc.

32 017.16 GG & G Distributors Inc. 1 918.99 Business Process Outsourcing International Inc. 2 520.00 Business Process Outsourcing International Inc. 1 260.00 GlobeTelecom Inc.

5 108.71 Hospitality International Inc. 1 589.24 American Technologies Inc. 10 107.14 Microbase Incorporated 2 357.14 SkyCable Corporation 321.41 Manila North Tollways Corp 2 363.25 Easvtrip Services Corporation 84.00 SGV &Co.

19 800.00 Inspire Leadership Consultancv Inc. 10 800.00 Infopro Business Solutions Inc. 15 084.00 Royal Cargo, Inc.

1 095.54 Southbend Security & Investigative Services Inc. 1 083.57 Southbend Security & Investigative Services Inc. 8 007.57 TGServices, Inc.

3 151.77 TGServices Inc.

4 308.67 TGServices Inc.

1476.72 Roya !Cargo Inc.

1,800.00 TGServices Inc.

6,611.31 TGServices Inc.

602.90 TGServices Inc.

252.15 TGServices Inc.

32 710.83 Fire Solutions, Inc.

75,864.67 Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not ' indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. ~ "P-59-GY" "P-59-HA" "P-59-HB" "P-59-HC" "P-59-HD" "P-59-HF" "P-59-HG" "P-73-Au "P-73-D" "P-74-A" "P-76-C" "P-80-L" "P-80-0" "P-80-AD" "P-80-AI" "P-80-AO" "P-80-AQ" "P-80-AT" "P-80-AU" "P-80-BA" "P-80-BE" "P-80-BF" "P-80-BG" "P-80-BH" "P-80-BI" "P-80-BP" "P-80-BR" "P-80-BV" CfA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue Donpin Corporation 1 221,616.53 The Mercantile Insurance Co. Inc. 180.57 Continental Rental & Tours Inc. 1,891.20 TGServices, Inc.

12 261.67 Infopro Business Solutions Inc. 49,050.00 SGV &Co.

13 200.00 Infopro Business Solutions Inc. 15 084.00 Trends & Technologies Inc. 3 548.79 Alstom Philippines Inc. 5 357.14 Shellsoft technology corporation 1 633.93 First Gen Energy Solutions Inc. 31 510.48 Asia Envirocon Inc.

4 426.98 Anaki Systems Sales 8 571.42 Klassik Motor Cars International Tradinq Corp. 15 000.00 Evolander Motor Corporation 15 000.00 247 Super Siqns 7 315.72 Trends & Technologies Inc. 15 235.02 American Technologies Inc. 5 507.16 American Technologies Inc. 49 564.27 Solutions Experts and Enablers Inc. 7,629.72 Solutions Experts and Enablers Inc. 1 500.64 Solutions Experts and Enablers Inc. 750.30 Solutions Experts and Enablers Inc. 3,001.26 Solutions Experts and Enablers, Inc. 1,500.64 Solutions Experts and Enablers Inc. 750.30 Trends & Technologies Inc. 11 714.28 SAP Philippines Inc.

32,913.00 PHP Philippines Hydro Project, Inc. 19 248.36 TOTAL Nature of the service not indicated/specified in the OR. I Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not ' indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Supported by unreadable document. Nature of the service not indicated/specified in the OR. Purchase of services supported by document other than VAT OR. Supported by unreadable document. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Purchase of services supported by document other than VAT OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicate(j[specified in the OR. Nature of the service not indicated/specified in the OR. Nature of the service not indicated/specified in the OR. Incorrect TIN of petitioner. P9,00_!,583.3]._ ~- ~-- - - - Based on the foregoing, petitioner's input VAT directly attributable to its zero-rated sales which are duly substantiated by proper documents amounted only to P5,572,356.19, as computed below: tz.-- erA CASE NO. 9889 First Gen Hydropower Corporation v. Commissioner of Internal Revenue

Input VAT claimed for Refund Less: Disallowances Per !CPA Report p 1 376 781.48 Per this Court's further verification ~001,583.31 Substantiated Input VAT attributable to p 15,950 720.98 10 378 364.79 zero-rated sales p 5,572,356.19 It must be noted that, as represented by the petitioner's management, the allocation of input tax from its purchases is not applicable since the input tax from purchases directly attributable to zero-rated sales as well as to vatable sales can be clearly identified. Hence, it has no input tax from purchases that cannot be directly and entirely attributable to either its zero-rated sales or sales subject to 12% VAT.63 Thus, for purposes of, and with regard to petitioner's compliance with, the eighth requisite, only the amount of P5,572,356.19, represents valid input VAT attributable to zero-rated or effectively zero-rated sales. Petitioner has no excess input VAT available for refund Having determined that petitioner had valid input VAT which are attributable to its zero-rated sales, this Court shall now determine whether petitioner has excess input VAT attributable to zero-rated sales which was not applied against its output VAT liability. A perusal of petitioner's Quarterly VAT returns for the four (4) quarters of CY 2016 shows that petitioner had total output VAT liability of P36,600,336.13, to wit: Exhibit

CY 2016

Output VAT "P-11" 151 Quarter p 196,104.07 "P-13" 2nd Quarter 12,311,857.43 "P-15" 3'd Quarter 10 611,351.68 "P-16" 4'h Quarter 131481,022.95 TOTAL P36,600,336.13 -- Since, petitioner was not able to present evidence to support its alleged input VAT directly attributable to its VATable sales in the~ ., Exhibit "P-87", Docket- Vol. I, pp. 314 and 350.

First Gen Hydropower Corporation v. Commissioner of Internal Revenue amount of P17,910,468.35, as well as the input tax carried over from previous period as of the beginning of CY 2016 in the amount of P89,456,685.37,64 the same cannot be validly applied against petitioner's output VAT, pursuant to Section 110(A) in relation to Section 110(6) of the NIRC of 1997, as amended, which respectively states: "SEC. 110. Tax Credits.- (A) Creditable Input Tax.-

(1) Any input tax evidenced by a VAT invoice or official receipt issued in accordance with Section 113 hereof on the following transactions shall be creditable against the output tax: XXX XXX XXX (B) Excess Output or Input Tax. -If at the end of any taxable quarter the output tax exceeds the input tax, the excess shall be paid by the VAT-registered person. If the input tax exceeds the output tax, the excess shall be carried over to the succeeding quarter or quarters: xxx."65 (Emphasis added) As such, petitioner's substantiated input VAT attributable to zero-rated sales in the amount of P5,572,356.19 shall be applied against its output VAT liability amounting to P36,600,336.13. Consequently, petitioner still has net output VAT still due of P31,027,979.94, computed as follows: Output VAT p 36,600,336.13 Less: Substantiated input VAT attributable to zero-rated sales 5,572,356.19 Net output VAT still due p 31,027,979.94 It is worthy to stress that in claiming excess or unutilized input VAT from zero-rated transactions, it is the excess input tax over the output tax which should be refunded to the taxpayer or credited against other internal revenue taxes. Hence, it is important for the taxpayer to prove that it has enough prior year's excess input tax credits to cover its output tax liability for the current taxable year. ;._ 64 Exhibit "P-11", Line 20A. 65 As amended by RA 9361 (AN ACT AMENDING SECTION 110(B) OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES) DEOSION First Gen Hydropower Corporation v. Commissioner of Internal Revenue To reiterate, in cases filed before this Court, which are litigated de novo, party-litigants must prove everv minute aspect of their case.66 Consequently, there being no excess input VAT which may be the subject of a claim for refund or tax credit certificate, the present claim must be denied.

It is the taxpayer-claimant that has the burden of proof to establish the factual basis of his or her claim for tax credit or refund.67 Tax refunds are in the nature of tax exemptions. As such, they are regarded as in derogation of sovereign authority and to be construed strictissimi juris against the person or entity claiming the refund.68 Thus, an applicant for a claim for tax refund or tax credit must not only prove entitlement to the claim but also compliance with all the documentary and evidentiary requirements.69 Strict adherence to the conditions prescribed by law is required of the taxpayer. 70 In sum, in this case, there is no showing: (1) that the administrative claim of petitioner should not have been denied by respondent; and (2) that petitioner fully complied with the requisites to successfully obtain a credit/refund of input VAT. Simply put, petitioner failed to sufficiently prove its entitlement to a refund of its input VAT for the four (4) quarters of CY 2016. Such being the case, the present claim for refund must perforce be denied.

WHEREFORE, the present Petition for Review is DENIED for lack of merit.

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

!CONCUR:

'- JEAN I"'I'K.rn a~G:-c.~~ ~ 'lUANITO C. CASTANED~, JR. Associate Justice 'RA"CCRRO-VILLENA 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-..ot.. . Q_ JUANITO C. CASTANEi:s'R,jR. Associate Justice Chairperson

First Gen Hydropower Corporation v. Commissioner of Internal Revenue

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