Chevron Holdings Inc., et al. vs. Commissioner of Internal Revenue

DECISION

BAUTISTA, J:

The Case Before the Court En Bane for review are the denied consolidated petitions, docketed as CTA Case Nos. 7776 and 7813, of Chevron Holdings, Inc. involving claims for tax refund or issuance of tax credit certificate in the amount of Five Million Three Hundred Ninety One Thousand Two Hundred Fifty Two Pesos and Four Centavos (Php5,391,252.04) for the first quarter of taxable year 2006, and Thirty One Million Four Hundred Eleven Thousand Seven Hundred Four Pesos and Sixty-Eight Centavos (Php31,411, 704.68) for the second to fourth quarters of the same taxable year 2006, allegedly representing unutilized input value-added tax ("VAT"); the total amount ~

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) unutilized input VAT for the period covering January 1, 2006 to December 31, 2006 is thus Thirty Six Million Eight Hundred Two Thousand Nine Hundred Fifty Six Pesos and Seventy-Two Centavos (Php36,802,956.72).1 The Parties2 Petitioner Chevron Holdings, Inc. is a corporation organized and existing under the laws of the State of Delaware, United States of America, and has an office address at 33/F Yuchengco Tower I, RCBC Plaza, 6819 Ayala Avenue, Makati City. It is registered with the Bureau of Internal Revenue ("BIR") as a VAT taxpayer under OCN 9RC0000136077.3 Respondent Commissioner is the duly appointed Commissioner of Internal Revenue, with authority, among others, to decide, approve, and grant tax credits and/ or refunds of overpaid or erroneously paid internal revenue taxes, with office address at the 5th Floor, BIR National Office Building, Agham Road, Diliman, Quezon City.

The Facts As stated in the Decision dated June 6, 2012,4 the factual antecedents of this case are as follows: "Petitioner posits that for taxable year 2006, it rendered services to its affiliates, subsidiaries or branches both in the Philippines and abroad. It claimed that for services rendered to its foreign affiliates, the transactions are subject to zero percent VAT pursuant to Section 108 (B)(2) of the 1997 Tax Code while, on the other hand, services rendered to its Philippine affiliates are subject to 12% VAT.

Petitioner alleged that in the same taxable year 2006, it incurred and paid input taxes on its purchases of ( 1 Rollo, CT A EB Case No. 940, p. 76. 2 lrl., p. 77.

'Records, CTA Case Nos. 7776 & 7813, joint Stipulation of Facts and Issues, p. 233.

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) goods and services subject to VAT, summarized as follows:

Quarter Zero-Rated Sales Subject Output Tax Purchases Input Tax Sales to 12'1,, VAT l SI 308,477,292.31 4,687,290.75 469,047.07 138,964,203.52 5,473,352.33 2nd 237,013,773.09 35,386,665.52 3,852,895.48 71,796,630.97 6,843,948.53 3rct 271,095,515.06 28,405,325.59 3,408,639.07 102,044,300.16 7,144,030.57 4th 459,971,366.03 41,180,817.13 4,941,698.06 247,874,770.08 20,690,791.66 Petitioner further alleged that it paid the above input taxes in the course of its trade and business, as supported by invoices and official receipts. The purchases of petitioner's capital goods were treated in its Audited Financial Statements and General Ledger as depreciable assets.

Petitioner claims that input taxes generated on purchases for the four quarters of taxable year 2006 were not utilized against output taxes in the same quarters and in the subsequent quarters because it had substantial amounts of input taxes carried forward from the previous quarters.

Petitioner likewise avers that the proceeds of the services rendered by Chevron Holdings, Inc. to its foreign affiliates were inwardly remitted in US dollars and were duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas. Believing that it is entitled to claim for tax refund or issuance of tax credit on the unutilized input VAT for taxable year 2006, petitioner filed its administrative claim for refund on March 28,2008. Following the inaction of the respondent on its administrative claim, petitioner filed on April 24, 2008, a Petition for Review docketed as CTA Case No. 7776 (and raffled to the Court of Tax Appeals Second Division) for refund or issuance of tax credit certificate covering unutilized input taxes for the first quarter of taxable year 2006. Subsequently, on July 23, 2008, petitioner again filed a Petition for Review docketed as CTA Case No. 7813 ( DECISION CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) Page 4 o£40 (raffled to the Court of Tax Appeals First Division) for refund or issuance of tax credit certificate covering unutilized input taxes for the second to fourth quarters of taxable year 2006."5 In the said Decision, the Court in Division held that: "WHEREFORE, the instant Petition for Review docketed as CTA Case No. 7776 and Petition for Review docketed as CTA Case No. 7813 are hereby DENIED for having been prematurely filed and are DISMISSED for lack of cause of action. The other issues raised become moot and academic.

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

"WHEREFORE, premises considered, petitioner respectfully prays that this Honorable Court that:

1. Reverses and sets aside the Resolution dated September 11, 2012;

2. Reverses and sets aside the Decision dated June 13, 2011;

3. Gives due course to the Petitions for review; and

4. Grants petitioner's claim for refund and/ or the issuance of tax credit certificates for the amount of Php36,802,956.72 representing its unutilized and/ or unapplied input VAT for the period covering January 1, 2006 to December 31, 2006."13 On November 19, 2012, respondent filed her "Comment (Re: Petition for Review dated September 27, 2012),14 while petitioner filed a "Reply (to Respondent's Comment dated November 15, 2012)" on December 12, 2012.15 On February 19, 2013, the Court issued a Resolution giving due course to the "Petition for Review," ordering the parties to file their respective Memoranda within thirty (30) days.16 On March 27, 2013, respondent filed her "Memorandum (for Respondent),"17 while petitioner filed its "Memorandum" on April 5, 2013.18 On May 8, 2013, the Court promulgated a Resolution/;} submitting the case for decision.19 (!/ Hence, this Decision. " /d., pp. 66-67.

,. /d., pp. 117-135.

15 lrl., pp. 137-168. 1" lrl., pp. 179-180.

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

The Issues Based on the "Memorandum"2o filed by petitioner, the issues of the case are as follows: "I.

WHETHER PETITIONER'S JUDICIAL CLAIM FOR

REFUND WAS PREMATURELY FILED; and II.

WHETHER PETITIONER IS ENTITLED TO A REFUND

OF ITS UNUTILIZED EXCESS INPUT VAT FOR

TAXABLE YEAR 2006"

As for the "Memorandum (for Respondent)," 21 filed by respondent, the sole issue raised was: "STATEMENT OF THE ISSUE

THE ISSUE TO BE RESOLVED IS WHETHER

PETITIONER IS ENTITLED TO THE REFUND OR

ISSUANCE OF TAX CREDIT ALLEGEDLY

REPRESENTING UNUTILIZED VALUE-ADDED TAX

(VAT) IN THE AMOUNT OF FIVE MILLION THREE

HUNDRED NINETY-ONE THOUSAND TWO HUNDRED FIFTY-TWO PESOS AND 4/100 (PHP5,391,252.04) FOR THE FIRST QUARTER OF

TAXABLE YEAR 2006 AND THIRTY ONE MILLION

FOUR HUNDRED ELEVEN THOUSAND SEVEN HUNDRED FOUR PESOS AND 68/100 (PHP 31,411,704.68) FOR THE SECOND TO FOURTH QUARTERS OF THE SAME TAXABLE YEAR 2006. THE

TOTAL AMOUNT OF THE ALLEGED UNUTILIZED

INPUT VAT FOR THE PERIOD 1 JANUARY 2006 TO 31 DECEMBER 2006 IS THIRTY-SIX MILLION EIGHT f 2" lrl., p. 21 7.

CT A EB CASE NO. 940 (CT A Case Nos. 7776 an d 7813)

HUNDRED

TWO THOUSAND

NINE HUNDRED FIFTY-SIX PESOS AND 72/100 (PHP 36,802,956,72)." Simply put, the issue in this case is whether or not the judicial claim filed by petitioner was within the prescribed period, and if it is within the period, whether petitioner is entitled to a refund or issuance of a tax credit certificate, in the amount of Thirty-Six Million Eight Hundred Two Thousand Nine Hundred Fifty-Six Pesos and 72/100 (Php 36,802,956,72) for taxable year 2006. The Ruling of the Court En Bane Section 112(A) of the 1997 NIRC, as amended, states that: "Section 112. Refunds or Tax Credits of Input Tax. - (A) Zero-rated or Effectively Zero-rated Sales. - Any VAT-registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax: Provided, however, That in the case of zero-rated sales under Section 106(A)(2)(a)(1), (2) and (B) and Section 108(B)(1) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP): Provided, further, That where the taxpayer is engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt sale of goods or properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, its shall be allocated proportionately on the basis of the volume of sales." (Emphasis ours) The said provision allows the refund or issuance of a tax credit certificate for the input VAT attributable to zero-rated or effectively zero-rated sales subject to the taxpayer's compliance with the ff following requisites: f CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) 1. there must be zero-rated or effectively zero-rated sales;

2. that input taxes were incurred or paid;

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

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

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

A claim for tax refund or credit, like a claim for tax exemption, is construed strictly against the taxpayer.22 Thus, before a claim is allowed, the taxpayer has the burden to prove strict compliance with the conditions for the grant of the tax refund or credit.23 The first issue to be resolved is whether or not the judicial claim was timely filed.

It is clear from the records of the case that the administrative claim was filed on March 28, 2008, and on April 24, 2008, a judicial claim was filed by petitioner covering the first quarter of taxable year 2006; while on July 23, 2008, petitioner filed a separate judicial claim for the second to fourth quarters. In the recent case of Commissioner of Internal Revenue v. San Roque Power Corporation, et. al. ("San Roque case"), 24 the Supreme Court held that:

"BIR

Ruling

No.

DA-489-03 is a general interpretative rule because it was a response to a query made, not by a particular taxpayer, but by a government agency tasked with processing tax refunds and credits, that is, the One Stop Shop Inter-Agency Tax Credit and Drawback Center of the Department of Finance. This government agency is also the addressee, or the entity responded to, in BIR Ruling No. DA-489-03. Thus, while this government agency mentions in its query to the Commissioner the administrative claim of Lazi Bay Resources Development, Inc., the agency was in fact 22 Co111111issio11er of illtem nl Reve1111e v. Bn11k of tl1e Pl1ilippi11e Jsla11ds, G.R. No. 178490, July 7, 2009, 592 SCRA 219. f 23 Applied Food lllgredie11ts Co111pa11y, l11c. v. Counuissio11er of i11temal Reve11ue, G.R. No. 184266, November 11, 2013. 2< G.R. Nos. 187485,196113, and 197156, February 12, 2013, 690 SCRA 336.

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) asking the Commissioner what to do in cases like the tax claim of Lazi Bay Resources Development, Inc., where the taxpayer did not wait for the lapse of the 120-day period. Clearly, BIR Ruling No. DA-489-03 is a general interpretative rule. Thus, all taxpayers can rely on BIR Ruling No. DA-489-03 from the time of its issuance on 10 December 2003 up to its reversal by this Court in Aichi on 6 October 2010, where this Court held that the 120+30 day periods are mandatory and jurisdictional."25 Applying the San Roque case, since the administrative and judicial claims were all filed during the period of validity of BIR Ruling No. DA-489-03, petitioner benefits from the shield against the vice of prematurity for its judicial claim.26 Accordingly, petitioner's judicial claim for the four quarters of 2008 shall be considered as timely filed, as it complied with the two (2)-year prescriptive period. Respondent brings up in her Memorandum27 her contention that petitioner failed to comply with the provisions of Sections 112(A) and (C) of the 1997 NIRC, as amended, on the prescriptive period for claims for VAT refund/ tax credit and the submission of the complete documentary requirements enumerated in Revenue Memorandum Order (RMO) No. 53-98.28 Thus, respondent posits that this Court 25 G.R. Nos. 187485, 196113, and 197156, February 12, 2013, 690 SCRA 336. 26 G.R. No. 202071, February 19, 2014. 27 Rollo, CT A EB Case No. 940, pp. 204-205. 2N ANNEX B-1- VALUE-ADDED TAX (For audit involving Claim for Refund / TCC) A.) Requirements from Taxpayer I. Requirements mentioned in Annex B II. Additional General Requirements 1) 3 copies of "Application for VAT Credit / Refund" 2) Sununary List of Local Purchases specifying the following: Registered VAT Invoice Date of OR Name of Number Number Invoice No.

Supplier of Supplier Date of OR Amount Input of Purchase Tax Total Invoice Amount 3) Photocopies of VAT purchase invoices for purchase of goods and official receipts for purchase of services. (The invoices/ official receipts must be arranged according to the summary list) 4) Summary of importations made during the period with the following details: Date of Supplier Item

AWB/ BL

No.

Date of Total Arrival Value Date of O.R. No.

VAT Invoice Payment 5) Photocopies of invoices, import enh·y documents, official receipts or confirmation receipts evidencing payment of VAT. (Segregate documents paid by cash from those paid by tax debit memo) 6) VAT Returns filed for the quarter showing that the amow1t applied for refw1d/TCC has been reflected as a deduction fi·om the total available input tax, as well as VAT Return for the succeeding quarter r- 7) Certification of taxpayer showing the amow1t of Zero-rated Sales, Taxable Sales and Exempt Sales ./ '

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) cannot exercise its appellate power to review and therefore has no jurisdiction to entertain the instant consolidated cases. The Court disagrees with the respondent. 8) A statement showing the amotmt and description of the sale of goods and services, name of persons or entities (except in case of exports) to whom the goods or services were sold and date of the h·ansaction, where the applicant 's zero-rated transactions are regulated by certain government agency 9) Articles of Incorporation - for first time filers 10) Sales Contract/ Agreement 11) BOI Certificate of Regish·ation 12) BlR Certificate of Regish·ation 13) Certification from BOI, DOF, BOC, EPZA, etc., that subject taxpayer has not filed sinlilar claim for refund covering the same period 14) Sworn statement that ending inventory as of the close of the-period covered by the Claim has been used directly or indirectly in the products subsequently exported as supported by export documents, if the applicant is 100% exporter 15) Documents of liquidation evidencing the actual utilization of the raw materials in the manufacture of goods at least 70% of which has been actually exported, if the applicant is an indirect exporter 16) Copy of t11e lTR and Certified Financial Statements, if applicable 17) Beginning and ending inventory of raw materials, work-in-process, finished goods, supplies and materials Ill.

Additional Specific Requirements 1) For Export Sales (Semi-conductor comprulies, garments, food etc.)

a. sales invoice number, name of buyer, airway bill / bill of lading number, lading date, amotmt of sales in foreign currency, peso value of sales, conversion rate, date of renlittru1ce, bank credit memo number and amounted renlitted in pesos

b. Photocopies of export documents: 1) Invoices/ receipts evidencing sale of goods, as well as tl1e name of the person to whom the goods were delivered with respect to foreign currency denonlinated sales 2) export declaration/ permit c.

accredited agent bank showing tl1at tl1e proceeds of tl1e sale in acceptable foreign currency had been inwardly remitted ru1d accounted for in accordance witl1 BSP rules and regulations. The statement should also show the amount in foreign currency of the export proceeds or consideration, date of export, date of inward renlittance, conversion rate into Philippine currency and the total peso value tl1ereof.

2) For Zero-Rated Sale of Services (contractors, nli1ling, etc.) a.

Authenticated copy/ies of the contract/s showing tl1e person/s for whom the services were rendered, amount of consideration, description of tl1e services and documents evidencing actual payments

b. Photocopies of official receipts and billings together with a summary of tl1e date of billing, name of principal, official receipt number, date of receipt, amount in foreign currency and tl1e corresponding value thereof, date of renlittru1Ce, name of bank, bank credit memo number and amount remitted in pesos c.

Bank credit memoranda and certificate from the BSP witl1 information sinlilar to 1-c (export sales) Additional Requirements for Manning Services: a.

Montl1ly BSP report on income of agency received b.

Breakdown of gross foreign receipts specifying the nature of foreign currency received (e.g. Conm1ission, allotment mamling fee, agency fee, advances, etc.) showing the total foreign currency value with its peso equivalent, bank credit memo number, name of bru1k and date of remittance pred 3) Effectively zero-rated sale of goods (mining, etc.)/ services (contractors, etc.)

a. Sunm1ary of Sales invoices/ receipts showing the name of the person entity to whom the sale of goods or services were delivered, order of delivery, amount of consideration and description of goods or services delivered (RR 6-89 and RMC 2-90) b.

Reconciliation of billings against payment c.

Evidence of actual receipt of goods and services Additional Requirements for Mining Compru1ies: a.

Reconciliation of billings against actual collection b.

Operating agreement with own er of mining claims, if applicable 4) Purchase of Capital Goods a.

Original copies of invoices/receipts showing the date of purchase, purchase price, amount of value- added tax paid and description of the capital equipment locally purchased b.

On imported capital goods 1) Photocopy of import entry docw11ents ru1d official receipts/ confirmation receipts of payment issued by the Bureau of Customs for value-added tax paid B.)

Reporting Requirements to be prepared and/ or submitted by tl1e Revenue Officers 1.

Requirements mentioned in Annex B 2.

Additional Requirements (All tl1e requirements mentioned above) Note:

In case of non-availability of documents fi·om ROO / taxpayer ROC mentioned in 8.2 - 8.6, '"l"~ t ptintocnpie> thC'oof fmm (

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

Records show that petitioner, upon the filing of its administrative claim on March 28, 2008,29 simultaneously submitted the documents in support thereof. In petitioner's letter claim, 3D the following documents were attached: 1.

Application for Tax Credit Refund (BIR Form 1914); 2.

BIR Certificate of Registration (BIR Form 2303); 3.

Annual Income Tax Return (BIR Form 1702); 4.

Quarterly VAT Returns (BIR Form 2550Q); 5.

Monthly VAT Returns (BIR Form 2550M); 6.

Letter from CHI-MSSC authorizing undersigned counsel; 7.

Service agreements with CHI-MSSC affiliates; and 8.

Audited financial statements. Since the records do not show that a written notice was sent by the BIR informing petitioner that the aforesaid documents were incomplete nor requiring petitioner to submit additional documents, the prescriptive period started and continued to run from March 28, 2008, the date when petitioner filed its administrative claim together with the supporting documents. This is in accordance with Revenue Memorandum Circular No. 029-09 which states that: "III. Period within ·which Refund of Tax Credit of Input Taxes shall be Made.

29 Exhibit "P."

Section 112(C) of the Tax Code of 1997, as amended by Republic Act No. 9337, provides among others, that in proper cases, the Commissioner shall grant a refund or issue the tax credit certificate (TCC) for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents. For the purpose of defining 'proper cases' in the said provision, the taxpayer/ claimant must have complied with the following conditions/ requirements upon audit/ verification of his/ its claim:

necessary to determine andfor ascertain the

a. Submission of complete documents I

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) correctness of the return and the amount to be refunded;

b. That all books of accounts and accounting records pertaining to the claim are immediately available to the concerned Revenue Office (RO) for audit/ verification;

c. Any discrepancies/ findings upon audit/ verification shall be reconciled/ explained in writing by the taxpayer/ claimant within five

(5) days from receipt of the notification from the RO; and

d. The taxpayer/ claimant has signified his concurrence to the outcome of the audit/ verification, which shall be evidenced by an Agreement Form." (Emphasis ours) Thus, the Court shall now discuss the remaining issues involved in the claim for refund or issuance of tax credit certificate. Anent the first requisite, it is undisputed that petitioner is duly registered with the BIR as a VAT taxpayer31 under OCN 9RC000017025932 and the services it performs in the Philippines, through its Regional Operating Headquarters (ROHQ), is limited to general administration and planning; business planning and coordination; sourcing and procurement of raw materials and components; corporate finance advisory services; marketing control and sales promotion; training and personnel management; logistics services;

research and development services and product development; technical support and maintenance; data processing and communications; and business development;33 are not the same category as "processing, manufacturing or repacking of goods." Petitioner alleges that the services it renders to its affiliates, subsidiaries or branches abroad are subject to zero percent (0%) VAT, pursuant to Section 108(B)(2) of the 1997 NIRC, as amended, which states that:

"Section 108. Value-added Tax on Sale of Services and Use or Lease of Properties.- 11 Records, CT A Case No. 7776 and 7813, )SF!, Admissions, Par. 4, p. 233. >2 See Note 3.

"Exhibit "N," petitioner's Notes to Financial Statements As of & For The Years Ended December 31,2006 & 2005, Note 1, General Information.

(

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

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:

(1) Processing, manufacturing or repacking goods for other persons doing business outside the Philippines which goods are subsequently exported, where the services are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP);

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

In the case of Commissioner of Internal Revenue v. Burmeister and Wain Scandinavian Contractor Mindanao, Inc., 34 the Supreme Court held that in order for the supply of services to be VAT zero-rated under Section 108(B)(2) of the 1997 NIRC, as amended, the following requisites must be met: "1.

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

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

3. the recipient of such services is doing business ( outside the Philippines." 3< G.R. No. 153205, January 22, 2007, 512 SCRA 124.

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

Corollary to the second requisite, Sections 113(A)(2), (B)(1), (2)(c) and (3) of the 1997 NIRC, as amended, as implemented by Sections 4.113-l(A)(2), B(1) and (2)(c) of Revenue Regulations ("RR") No. 16-05 provide that a VAT taxpayer, like herein petitioner, shall for every lease of goods or properties and for every sale, barter or exchange of services, issue a VAT official receipt which must contain the following information: 11Section 113. Invoicing and Accounting Requirements for VAT-registered Persons. - (A) Invoicing Requirements. - A VAT-registered person shall issue:

XXX XXX XXX

(2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services (B) Information Contained in the VAT Invoice or VAT Official Receipt. - The following irtformation 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 1s Identification Number (TIN);

(2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax: Provided, That: XXX XXX XXX

(c) If the sale is subject to zero percent (0%) value- added tax, the term 1zero-rated sale 1 shall be written or printed prominently on the invoice or receipt; XXX XXX XXX

(3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the ( service; and xxx" (underlining supplied) CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) "Section 4.113-1. Invoicing Requirements. - (A) A VAT-registered person shall issue: - XXX XXX XXX

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

Only VAT-registered persons are required to print their TIN followed by the word 'VAT' in their invoice or official receipts. Said documents shall be considered as a 'VAT Invoice' or VAT official receipt. All purchases covered by invoices/receipts other than VAT Invoice/VAT Official Receipt shall not give rise to any input tax.

VAT invoice/ official receipt shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of his accounting records.

(B) Information contained in VAT invoice or VAT official receipt. - The following information shall be indicated in VAT invoice or VAT official receipt:

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

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

(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; xxx" (underlining supplied) Pursuant to the foregoing provisions, the foreign currency remittances referred to under Section 108(B)(2)35 of the 1997 NIRC, as >5 Section 108. Value-added Tax ou Sale of Services and Use or Lease of Properties. - XXX XXX XXX I (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.

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) amended, must likewise be supported by VAT zero-rated official receipts.

Petitioner complied with all the requisites for the VAT zero- rating of its sales of services for the year 2006 but only to the extent of Php155,654,748.22 out of the total reported zero-rated sales of Phpl,276,557,946.49.

With regard to the third requisite that its affiliate-clients are non-resident foreign corporations doing business outside the Philippines, petitioner presented Certifications of Non-Registration of Corporation/Partnership36 issued by the Securities and Exchange Commission (SEC), Service Agreements,37 Memorandum and/ or Articles of Association, Articles/Certificate of Incorporation, Certificate of Change of Name, Company Profile, Certificate Confirming Incorporation38 and printed screenshots39 of the United States SEC website for company filings of Chevron Corporation. Each of the aforesaid documents, standing alone, is inadequate to prove that petitioner's clients are non-resident foreign corporation doing business outside the Philippines. While the SEC Certificates of Non-Registration show that the named entities therein are not registered corporations/partnerships in the Philippines, the same does not prove that such entities are non-resident foreign corporations doing business outside the Philippines.40 Likewise, the service agreements only show the names and addresses of petitioner's clients to whom it renders services but the same do not establish that such customers are non-resident foreign corporations doing business outside the Philippines. In addition, the Memorandum and/ or Articles of Association, Articles/Certificate of Incorporation and printed screenshots of the United States SEC website for company filings of Chevron Corporation only prove that the named entities therein were XXX XXX XXX

(2) Services other than those mentioned in the preceding paragraph, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP). "'Exhibits "0" to "0-90." 17 Exl1ibits " R" to " R-17." 1s Exhibits "00," "00-1," to "00-25." w Exhibits "PP," "PP-1," to "PP-8." ~u Site/ Philippi11es Corporntio11 (Fon11erly Clie11tlogic Philippi11es, l11c.) v. Co111111issioner of lntem nl Revenue, CIA Case No. 7623, ( March 3, 2010.

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) incorporated/ organized abroad, but do not establish that such entities are not doing business in the Philippines. To be considered as non-resident foreign corporation doing business outside the Philippines, each entity must be supported by both SEC certificate of Non-Registration and Certificate/ Articles of foreign incorporation/ association or printed screenshots of US SEC website showing the state/ province/ country where the entity was organized. That being said, only the following clients of petitioner can be considered as non-resident foreign corporations doing business outside the Philippines: Certificate I Included in list Name of Mfiliate SEC Articles of of Subsidiaries Certificate Association I of Chevron Incorporation Corporationn Caltex Oil Mauritius, Ltd. "0-14" "00-10" Caltex Oil Products Company "0-9" "00-4" Caltex Trading Pte, Ltd. "0-17" "00-7'' Chevron Asia Pacific Pte, Ltd. "0-71" "00-25" Chevron Australia Pty., Ltd. "0-32" - ~ Chevron Canada, Ltd.

"0-55" - ~ Chevron Global Technology Services "0-67" - ~ Chevron International Exploration Production "0-69" - ~ Chevron Nigeria Limited "0-59" - ~ Chevron Oronite Co.

"0-54" - ~ Chevron Products Company "0-29" "00-19" Chevron South Africa Pty., Ltd. "0-28" "00-9" Chevron Tankers, Ltd. "0-26" "00-2" Chevron USA, Inc.

"0-2" - ~ Project Resources Company "0-43" "00-20" Texaco Netherland BV "0-82" - ~ - - ---- - - --- -- For services rendered for the four quarters of 2006, petitioner received US dollar (USD) payments with the peso equivalent amounting to Php1,276,454,088.11,42 which were accounted for in accordance with the BSP rules and regulations as evidenced by the Certificate of Inward Remittance43 issued by JP Morgan Chase Bank N.A and duly supported by VAT zero-rated official receipts (0Rs)44 issued by petitioner to its affiliate-clients. However, a comparison of the amounts of zero-rated sales as reflected in the VAT zero-rated ORs and as declared in petitioner's 41 Exhibits " PP," " PP-1," to "PP-8." n Exhibit " Z," Annex 7 of Exhibit "S." "Exhibit "QQ."

" Exltibits " EE-1" to "EE-308." r DECISION CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 78B) Page 18 of -!0 Quarterly VAT returns shows the following discrepancy of Php103,858.38:

Zero-rated Sales per ORs Php 1,276,454,088.11 Zero-rated Sales per Quarterly VAT Returns45 1,276,557,946.49 Difference (Php 103,858.38) ' -- Since the amount of Php103,858.38 is not covered by VAT zero- rated ORs, the same shall be denied VAT zero-rating. Moreover, the Court notes that petitioner's declared zero-rated sales in the amount of Phpl0,025,869.35 (USD$202,609.23) although supported by VAT zero-rated ORs, do not have the corresponding foreign currency inward remittances, to wit: OR Payment Sales Sales Exhibit Name of Affiliate No.

Date (in USD) (in Php) "EE-15" Chev ron Tankers Ltd. 206 25-Jan-06 USD$ 2,195.94 Php 115,135.25 "EE-223" Chevron Products Company 443 25-0ct-06 33,405.94 1,670,697.96 "EE-245" Chevron Products Company 466 24-Nov-06 84,875.65 4,198,161.55 "EE-295" Chevron Products Company 516 27-Dec-06 82,131.70 4,041,874.59 Total USD$ 202,609.23 Php10,025,869.35 - -- ------------- --- Thus, petitioner's claimed zero-rated sales in the amount of Phpl0,025,869.35 shall also be denied VAT zero-rating. Hence, out of the Phpl,276,557,946.49 sales reported by petitioner to have been generated from services rendered to its non- resident foreign affiliate-clients for the four quarters of 2006, only the amount of Php155,654,748.22, detailed below, qualifies for VAT zero- rating under Section 108(B)(2) of the 1997 NIRC, as amended: OR Payment Sales (in No.

Date Name of Affiliate USD) Sales (in Ph_p) Exhibit First Quarter of 2006 JANUARY 196 25-Jan-06 Caltex Oil Products Company 12,200.75 Php 641,223.40 EE-5 204 26-Jan-06 Chevron Australia Pty., Ltd. 4,800.47 251,693.26 EE-13 201 26-Jan-06 Chevron USA, Inc.

12,628.29 662,113.39 EE-10 FEBRUARY 224 23-Feb-06 Caltex Trading Pte, Ltd. 11,826.93 612,280.37 EE-29 225 23-Feb-06 Caltex Oil Products Company 7,914.11 409,713.61 EE-30 226 23-Feb-06 Chevron Asia Pacific Pte, Ltd. 3,581.09 185,393.09 EE-31 Exl1ibits " I," "J, J CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) 230 27-Feb-06 Chevron USA, Inc.

MARCH 242 23-Mar-06 Caltex Trading Pte, Ltd. 243 23-Mar-06 Caltex Oil Products Company 244 23-Mar-06 Chevron Asia Pacific Pte, Ltd. 249 27-Mar-06 Chevron USA, Inc.

248 27-Mar-06 Chevron USA, Inc.

Second Quarter of 2006 APRIL 256 21-Apr-06 Chevron Asia Pacific Pte., Ltd 261 25-Apr-06 Chevron USA, Inc.

264 27-Apr-06 Chevron USA, Inc.

MAY 269 17-May-06 Caltex Oil Products Company 271 18-May-06 Chevron Asia Pacific Pte., Ltd. 272 23-May-06 Chevron Australia Pty., Ltd. Chevron Int'l Exploration 283 25-May-06 Production 293 26-May-06 Chevron USA, Inc.

294 25-May-06 Chevron Tankers, Ltd. 295 26-May-06 Chevron USA, Inc.

JUNE 302 22-Jun-06 Chevron Asia Pacific Pte., Ltd. 303 22-Jun-06 Chevron Australia Pty., Ltd. 313 26-Jun-06 Chevron Canada, Ltd.

314 27-Jun-06 Chevron Oronite Co.

Third Quarter of 2006 JULY 324 21-Jul-06 Chevron Australia Pty., Ltd. 326 21-Jul-06 Chevron Global Technology Services 341 25-Jul-06 Chevron Oronite Co.

348 26-Jul-06 Chevron USA, Inc.

351 26-Jul-06 Texaco Netherland BV 352 25-Jul-06 Chevron Canada, Ltd.

Chevron Int'l Exploration 353 26-Jul-06 Production 356 26-Jul-06 Chevron Tankers, Ltd. 359 27-Jul-06 Chevron Tankers, Ltd. AUGUST 367 22-Aug-06 Chevron Nigeria, Limited 372 24-Aug-06 Chevron Asia Pacific Pte., Ltd. 373 24-Aug-06 Caltex Oil Mauritius, Ltd. 375 25-Aug-06 Caltex Oil Products Company 384 28-Aug-06 Chevron Canada, Ltd.

385 28-Aug-06 Texaco Netherland BV SEPTEMBER 398 21-Sep-06 Chevron Asia Pacific Pte., Ltd. 405 25-Sep-06 Caltex Oil Products Company 413 25-Sep-06 Chevron Canada, Ltd.

414 25-Sep-06 Texaco Netherland BV Fourth Quarta of 2006 OCTOBER 436 I 18-0ct-06 I Chevron Products Company 17,710.46 922,501.47 EE-34 8,638.06 441,871.62 EE-43 7,914.11 404,838.66 EE-44 3,581.09 183,187.20 EE-45 2,754.57 140,951.35 EE-51 17,710.46 906,244.28 EE-49 Subtotal Php 5,762,011.70 441.29 Php 22,796.14 EE-57 488.72 25,319.13 EE-62 60,337.83 3,127,916.91 EE-65 7,883.82 410,904.54 EE-69 3,581.09 188,265.38 EE-72 1,437.41 75,783.19 EE-73 4,308.94 228,029.68 EE-82 952.25 50,299.76 EE-92 305.67 16,146.11 EE-93 238.06 12,574.81 EE-94 3,581.09 190,628.51 EE-100 238.06 12,672.41 EE-101 5,038.09 269,145.50 EE-111 734.91 39,261.16 EE-112 Subtotal Php 4,669,743.23 2,399.47 Php 125,254.87 EE-121 524.57 27,383.11 EE-123 859.52 44,670.11 EE-138 1,191,338.96 61,813,882.63 EE-145 12,178.50 631,894.36 EE-148 9,390.03 487,211.64 EE-149 6,658.14 345,464.64 EE-150 573.01 29,779.90 EE-153 94.78 4,890.28 EE-156 4,812.55 246,542.04 EE-164 3,793.65 195,630.65 EE-169 445.81 22,989.50 EE-170 16,297.25 840,415.33 EE-172 3,726.17 191,729.66 EE-181 3,128.17 160,506.22 EE-182 3,581.09 179,434.00 EE-195 7,914.11 398,436.78 EE-202 3,726.17 187,594.46 EE-210 3,128.22 157,621.53 EE-211 Subtotal Php 66,091,331.71 I 548,023.94 I Php 27,365,621.69 I EE-216 v

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

438 19-0ct-06 Chevron Asia Pacific Pte., Ltd. 441 23-0ct-06 Chevron Australia Pty., Ltd. Chevron Int 1l Exploration 445 25-0 ct-06 Production 453 26-0ct-06 Chevron Canada, Ltd.

454 26-0ct-06 Texaco Netherland BV NOVEMBER 461 06-Nov-06 Chevron South Africa Pty., Ltd. 462 16-Nov-06 Chevron Products Company 464 20-Nov-06 Chevron Australia Pty., Ltd. 473 24-Nov-06 Chevron Asia Pacific Pte., Ltd. 483 24-Nov-06 Project Resources Company 484 27-Nov-06 Chevron South Africa Pty., Ltd. 486 27-Nov-06 Caltex Oil Products Company 488 27-Nov-06 Chevron Canada, Ltd.

490 27-Nov-06 Chevron Oronite Co.

496 27-Nov-06 Texaco Netherland BV DECEMBER 501 18-Dec-06 Chevron Prod ucts Company 507 21-Dec-06 Chevron Canada, Ltd.

508 21-Dec-06 Chevron Asia Pacific Pte., Ltd. 510 21-Dec-06 Texaco Netherland BV 515 27-Dec-06 Chevron USA, Inc.

522 27-Dec-06 Chevron Oronite Co.

528 27-Dec-06 Chevron Tankers, Ltd. Total Valid Zero-Rated Sales for the four quarters of 2006 1,212.64 60,647.77 EE-218 286.51 14,364.50 EE-221 488.72 24,441.87 EE-225 3,776.22 188,388.07 EE-233 3,180.95 158,691.24 EE-234 132,253.41 6,586,358.00 EE-241 336,483.71 16,864,238.07 EE-242 2,338.59 116,599.52 EE-243 3,581.09 178,176.98 EE-252 93.94 4,673.98 EE-262 48,461.76 2,406,662.53 EE-263 10,589.83 525,902.22 EE-265 5,155.95 256,049.96 EE-267 1,768.19 87,810.20 EE-269 3,137.89 155,830.95 EE-275 339,402.54 16,745,816.78 EE-280 3,726.17 184,042.93 EE-286 3,581.09 176,877.14 EE-287 3,137.73 154,988.59 EE-289 135,688.63 6,677,524.34 EE-294 3,523.57 173,402.33 EE-301 498.90 24,551.92 EE-307 Subtotal Php 79,131,661.58 Php155,654,748.22 Having resolved that petitioner had VAT zero-rated sales for the four quarters of 2006 in the amount of Php155,654,748.22, we now determine the amount of input VAT attributable thereto. In support of the Php40,152,123.09 input VAT reflected in its 2006 Quarterly VAT Returns, petitioner presented various invoices, official receipts and other documents which were all examined by the Court-commissioned Independent Certified Public Accountant (!CPA), Manabat Delgado Amper & Co., through its Partner, Atty. Fredieric B. Landicho. In his Report dated May 20, 2010,46 Atty. Landicho accounted for a total amount of Php39,420,619.02 input VAT, broken down as follows: Particulars 1" Quarter 2nd Quarter 3n1 Quarter 4lh Quarter Total

VALID INPUT VAT

On Domestic Purchase of Services and Goods other than Capital Goods~ 7 Purchase of Services 2,756,437.08 4,621,714.74 3,470,255.56 13,782,525.08 24,630,932.46 Purchases of Goods other than Capital Goods 1,003,839.18 1,072,420.25 901,461.93 1,805,418.19 4,783,139.55 Additional Domestic Purchases of Services and Goods other than Capital Good s~" ~"Exh ib it "S."

~ 7 Exhibits" AA-1" to" AA-2599" as summarized in Exhibit "U." I I I r

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

Purchase of Services - Purchases of Goods other than Capital Goods 10,549.30 Subtotal 3,770,825.56 On Purchase of Capital Goods~ 9 247,144.81 Additional Purchases of Capital Goods 51' - Subtotal 247,144.81 Total Valid Input VAT 4,017,970.37

INPUT VAT WITH CERTAIN EXCEPTIONS

On Domestic Purchase of Services and Goods other than Capital Goods Supported with Non-VAT Invoices and 0Rs51 516,499.32 Supported with VAT Invoices & ORs dated outside the period of claim52 399,636.46 Supported with VAT Invoices and ORs that are w1dated 5~ 28,223.57 Supported with Tape Receipts and Parking Stubs~ 10,018.97 Supported with VAT Invoices and ORs without authority to print55 3,823.18 Supported with VAT Invoices and ORs that have no word "V AT"Sii - Supported with VAT Invoices & ORs that have no address of the vendor57 14.89 Supported with VAT Invoices & ORs that are not in the name of the company5x 1,701.20 Without Supporting Documents59 267,340.93 Subtotal 1,227,258.52 On Purchase of Capital Goods Supported with VAT Invoices dated outside the period of claimoo 138,217.17 Supported with Non-VAT Jnvoice61 - Without Supporting Documentsn2 133,417.58 Subtotal 271,634.75 Total Input VAT with certain exceptions 1,498,893.27 - - 2,769,162.89 2,769,162.89 16,616.78 32,994.65 19,786.07 79,946.80 5,710,751.77 4,404,712.14 18,376,892.23 32,263,181.70 525,010.39 772,998.95 1,194,953.73 2,740,107.87 164.63 1,412.63 3,744.01 5,321.27 525,175.02 774,411.58 1,198,697. 74 2,745,429.15 6,235,926.79 5,179,123.72 19,575,589.97 35,008,610.85 39,495.09 1,268,390.78 - 1,824,385.19 3,745.19 90,556.81 142,396.68 636,335.14 3,274.53 292.50 - 31,790.60 12,438.82 6,542.58 358.40 29,358.77 10,735.72 600.00 171.43 15,330.33 - - 373.33 373.33 - - - 14.89 7,426.90 5,576.18 11,362.39 26,066.67 249,650.48 288,331.04 584,522.92 1,389,845.37 326,766.73 1,660,289.89 739,185.15 3,953,500.29 - - - 138,217.17 514.29 - - 514.29 3,706.55 133,533.47 49,718.82 320,376.42 4,220.84 133,533.47 49,718.82 459,107.88 330,987.57 1,793,823.36 788,903.97 4,412,608.17

TOTAL INPUT VAT VERIFIED BY

I 5,516,863.641 6,566,914.361 6,972,947.08 1 20,364,493.941 39,421,219.02 THEICPA A comparison of the above input taxes verified by the ICPA with the input taxes reflected in petitioner's Quarterly VAT Returns shows the following discrepancies: 1•1 Quarter z nd Quarter 3rd Quarter 41h Quarter Total Excess Input VAT per 5,473,352.33 6,843,948.53 7,144,030.57 20,690,791.66 40,152,123.09 return Input VAT verified by 5,516,863.64 6,566,914.36 ----- 4" Exl1ibits "AA-2600" to" AA-2630" as sunm1arized in Exhibit "U." ;9 E.rl1ibits "BB-1" to "BB-164" as sununarized in Exhibit "V." 511 E.rl1ibits "BB-165" to "BB-168" as sunu11arized in Exhibit "V." 51 Exl1ibits "CC-1" to "CC-55" as swnmarized in Exhibit "W.". 52 Exhibits "CC-56" to "CC-146" as sununarized in Exhibit "W-2." 5~ Exhibits "CC-147" to "CC-159" as sununarized in Exhibit "W-3." ~ Exl1ibits "CC-160" to "CC-599" as summarized in Exhibit "W-4." 55 Exhibits "CC-600" to "CC-626" as sununarized in Exhibit "W-5." sn Exhibits "CC-627" to "CC-628" as sununarized in Exhibit "W-6." 57 Exllibit "CC-629"; Exhibit "W-7." ;x Exl1ibits "CC-630" to "CC-679" as summarized in Exhibit "W-8." 59 Exhibit "W-1."

6,972,947.08 "'"Exhibits "DD-1" to "DD-13," "DD-15" to " DD-20" as summarized in Exhibit "X-1." "' Exhibit "DD-14;" Exhibit "X-2." n2 Exhibit "X."

20,364,493.94 39,421,219.02 I

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) the ICPA Difference (43,511.31) 277,034.17 171,083.49 326,297.72 730,904.07 Considering that the discrepancies for the second, third and fourth quarters in the respective amounts of Php277,034.17, Php 171,083.49 and Php 326,297.72, or in the sum of Php 774,415.38 pertain to the reported input VAT for which no supporting VAT invoices or official receipts were submitted by petitioner, the same shall be disallowed from petitioner's claim. In addition, petitioner's input VAT claim in the amount of Php 25,883,884.54 should likewise be disallowed for the following reasons:

1" z nd 3"' 4th Particulars Quarter Quarter Quarter Quarter Total On Domestic Purchases of Services Input VAT supported with VAT ORs but tile VAT was 1/0t separately indicated Ill violation of Section 173(8)(2)(a) of tile NIRC of1997, as a1ueuded 1" Quarter;

2,695,990.65 2,695,990.65 2nd Quarter" 4,567,985.32 4,567,985.32 3•d Quarter•;;

3,316,765.10 3,316,765.10 4'" Quarter•v 14,011,874.71 14,011,874.71 Input VAT supported o1tly by billing state111euts iu violation of Section 113(A)(2) of tile N I R C of 199 7, as nlllelllfed•• - - - 1,268,377.92 1,268,377.92 Input VAT supported wit/1 VAT OR but Input VAT is lower tflau t/1e nii/Ollllt per clnilll"; - 11,088.00 - - 11,088.00 On Domestic Purchases of Goods other than Capital Goods luput VAT supported wit/1 VAT Invoices but tl1e VAT was not separately indicated in violation of Section 113(8)(2)(a) of tile NIRC of1997, as mne11ded 1 ~L Quartervu 1,812.27 1,812.27 2nd Qua rterv111 326.78 326.78 3•d Quarter" 2,573.09 2,573.09 41h Quarter' 1,067.66 1,067.66 I11p11t VAT supported with VAT f11Voices but uo muou11ts of purchase a11d VAT were i11dicnted•;

- 6,023.04 - - 6,023.04 Total 2,697,802. 92 4,585,423.14 3,319,338.19 15,281,320.29 25,883,884.54 Thus, of the total reported input VAT of Php 40,152,123.09, only the amount of Php 9,081,815.00 represents petitioner's valid input VAT, computed as follows: 1" Quarter 2"d Quarter 3m Quarter 4'h Quarter Total Input Tax Per Returns 5,473,352.33 6,843,948.53 7,144,030.57 20,690,791.66 40,152,123.09 Less:

Disallowances Per !CPA's findings 1,498,893.27 330,987.57 1,793,223.36 788,903.97 4,412,008.17 Per this Court's further verification 2,697,802.92 -!,585,423.14 3,319,338.19 15,281,320.29 25,883,884.54 Discrepancy between the input VAT per petitioner's 277,034.17 171,083.49 326,297.72 774,415}_§ ( DECISION CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) Page 23 o£40 Quarterly VAT Returns and input VAT verified by the ICPA Total Disallowances 4,196,696.19 Valid Input VAT 1,276,656.14 5,193,444.88 5,283,645.04 16,396,521.98 31,070,308.09 1,650,503.65 1,860,385.53 4,294,269.68 9,081,815.00 At this point We take into consideration the output taxes reported by petitioner in its Quarterly VAT Returns for the year 2006 and compare the same with the foregoing substantiated input taxes, to wit:

151 Quarter 2nd Quarter 3rct Quarter 41h Quarter Total Output Tax 469,047.07 3,852,895.48 3,408,639.07 4,941,698.06 12,672,279.68 ValidlnputTax 1,276,656.14 1,650,503.65 1,860,385.53 4,294,269.68 9,081,815.00 Output Tax Still Due (807,609.07) 2,202,391.83 1,548,253.54 647,428.38 3,590,464.68 As shown above, petitioner's properly substantiated input taxes for the second, third and fourth quarters of 2006 are not enough to cover its output taxes for the same quarters. While petitioner reflected in its Quarterly VAT Return63 for the first quarter of 2006, the amounts of Php3,645,615.7564 as "Input Tax Carried Over from Previous Quarter," Php52,138,741.9665 as "Transitional Input Tax" and Php779,739.0666 as "Others," however, petitioner failed to present VAT invoices or receipts to prove the existence of such amounts. Hence, the input tax carry-over of Php56,564,096.7767 cannot be validly applied against petitioner's output tax for the year 2006 pursuant to Section 110(A) in relation to Section 110(B) of the 1997 NIRC, as amended, which states: "Section. 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: n3 Exhibit "!."

"' Exhibit "I," Line 20A. "' Exhibit "]," Line 20C. "" Exhibit "I," Line 20E. XXX XXX n7 The sum of Php3,645,615.75, Php52,138,741.96 and Php779,739.06. XXX !

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

(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.'' Considering that for the second, third and fourth quarters of 2006, there is no excess input VAT which may be the subject of a claim for refund/ tax credit certificate under Section 112(A)68 of the 1997 NIRC, as amended, petitioner's claim for the said quarters shall be denied.

However, for the first quarter of 2006, petitioner had excess input taxes of Php807,609.07 but only the amount of Php15,085.24 allocable to its valid zero-rated sales of Php5,762,011.70 is refundable, as computed below:

Valid Zero-Rated Sales Php 5,762,011.70 Declared Zero-Rated Sales + Php 308,477,292.31 Multiplied by Excess Input VAT X Php 807,609.07 Refundable Excess Input VAT attributable to Valid Zero-Rated Sales Php 15,085.24 It was established that petitioner deducted the input VAT of Php36,802,956.72, subject of the instant Petition for Review, as "VAT Refund/TCC Claimed" in its Quarterly VAT Return for the second quarter of 200869, thus, preventing the carry-over of the refundable excess input VAT of Php15,085.24 to the quarters subsequent to the second quarter of 2008.

WHEREFORE, in view of the foregoing, the instant Petition for Review is hereby PARTIALLY GRANTED. The Decision dated June N< Section 112. Rcf1111ds or Tax Credits of l11p11t Tax. - (A) Zero- /~atcd 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 ath·ibutable to such sales, except h·ansitional input tax, to the extent that such input tax has not been applied against output tax: Provided, lwwever, That in the case of zero-rated sales w1der Section 106(A)(2)(a)(l), (2) and (B) and Section 108 (B)(l) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and regulations of the Bangko Senh·al ng Pilipinas (BSP): Provided, jllrliler, 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 cam1ot be directly and entirely ath·ibuted to any one of tl1e transactions, it shall be allocated proportionately on tl1e basis of tl1e volume of sales.

69 Exhibit "HH."

f

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

6, 2012 and Resolution dated Septe1nber 7, 2012 are hereby REVERSED and SET ASIDE. Accordingly, respondent Commissioner of Internal Revenue is hereby ORDERED TO REFUND OR ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner Chevron Holdings, Inc. in the amount of Fifteen Thousand Eighty Five Pesos and Twenty Four Centavos (Php15,085.24) representing unutilized excess input VAT for the first quarter of 2006 which is attributable to its zero-rated sales for the same period.

WE CONCUR:

Presiding Justice a~~ a a:t-~ ~ .

JUANITO c. CAST ANEDK," JR. Associate Justice ~ CAESAR A. CASANOVA Associate Justice Cu:lJo N. M~~. 6~ CIELITO N. MINDARO-GRULLA Associate Justice ..

ER~ P. UY As~~~ustice ~/-~-~--//~ AMELIA R. COTANGCO-MANALASTAS Associate Justice ~ - ~ ..t1 ~.--· MA. BELEN M. RINGPIS-LIBAN Associate Justice

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

CERTIFICATION Pursuant to Section 13, Article VIII of the Constitution, it IS hereby certified that the above Decision has been reached in consultation with the members of the Court En Bane before the case was assigned to the writer of the opinion of this CoJ.Y't. Presiding Justice 'A itllex"A."

INPUT VAT ON DOMESTIC PURCHASE OF SERVICES SUPPORTED BY VAT OFFICIAL RECE IPTS BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE NIRC OF 1997, AS AMENDED

FOR THE FIRST QUARTER OF CY 2006

Official Supplier Input Tax Exhibit Receipt No.

23172 1 lnnove Communications 16.9 19.42 "AA-1" 189794 IBM Philippines, Inc. 3,240.69 "AA-2" 613 lnifinite Power Systems, Inc. 8,7 17.73 "AA-3" 297886 Golden Plate Restaurant Corporation 181.82 "AA-4" 199069 1 Globe Telecom I ,006.35 "AA-7" to "AA-8" 1992275 Globe Telecom 323.75 "AA-9" 199069 1 Globe Telecom 2,486.22 "AA-1 0" to "AA-29" 384713 PLDT 12,83 1.74 "AA-30" 4087 Mercer Human Resources 25,000.00 "AA-31" 379738 Philamcare Health Systems, Inc. 39,954.04 "AA-32" 9240 Metasystems Development, Inc. 954.55 "AA-33" 13300 1 Makati Shangri-La Manila 28637 "AA-34" to "AA-35"

3884 176

PLDT 836.82 "AA-36" to "AA-4 1" 14 14477 Mandarin Oriental Manila 2,181.82 "AA-42" 3762 Ponce Enrile Reyes and Manalastas I ,980.00 "AA-43" 11 04 Lantino Security and Watchman Agency 43,700.00 "AA-44" to "AA-45" 2056 Microdata Systems and Management 11 3.64 "AA-46" 7560 Lane Archive Technologies 73638 "AA-47" 350534 Integrated Computer Systems, Inc. 19,141.8 1 "AA-48" 51959 Intercontinental Manila 6,2473 1 "AA-50" to "AA-51" 5462 K&A Insurance Broker 9,897.00 "AA-52" 12191 Kayalayaan Engineering Company, Inc. 7,522. 73 "AA-53" to "AA-54" 12192 Kayalayaan Engineering Company, Inc. 4,454.55 "AA-55" 7327 Lane Archive Technologies 8,836.07 "AA-56" to "AA-59" 512 Ksearch Asia Consulting, Inc.

6. 165.00 "AA-60" 51 1 Ksearch Asia Consultino, Inc. 7.500.00

"AA-6 1"

344882 DHL Worldwide Express 3,684.65 "AA-62" 25325 Oakwood Premier 26,505.52 "AA-63" to "AA-65" 25304 Oakwood Premier 34,4453 I "AA-66" to "AA-69" 25349 Oakwood Premier 12,421.75 "AA-70" 902 Newport Learn ina Center, Inc. 1,818. 18 "AA-71" 72830 New World Renaissance Hotel 337.68 "AA-72" to "AA-73" 72688 New World Renaissance Hotel 2,473.9 1 "AA-74" 161890 Rajah Travel Corporation 830.56 "AA-75" to "AA-82" 161769 Rajah Travel Corporation 559.76 "AA-83" to "AA-87" 14636 Searchers and Staffers Corp. 5,502.43 "AA-88" to "AA-93" 9157 SGV Development Dimensions 7 ,972. 73 "AA-94" 11 733 Supply Oilfield Services, Inc. 2,500.00 "AA-95" 16196 Watson Wyatt Philippines. Inc. 5,000.00 "AA-96" 15794 Guard All Electronic Security Systems, Inc. 190.9 1 "AA-98" 161985 Rajah Travel Corporation I ,862.52 "AA-99" to "AA-1 07" f

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

147 Fiat Training and Consultancy 30175 Fuji Xerox Philippines. Inc. 30 176 Fuji Xerox Philippines. Inc. 2359 Global Business Support Services, Inc. 2429 Global Business Support Services, Inc. 39370 Fujitsu Philippines, Inc 929 3D Networks 895 Advance Cleanino and Restoration Tech 11880 Business Staffino and Management, Inc. 11871 Business Staffino and Management, Inc. 5403 Colliers International 171 DMJ Multi Print and Services 168 DMJ Multi Print and Services 4391 Executive International Movers 24453 Facilities Managers, Inc. 24556 Facilities Managers, Inc. 24467 Facilities Managers, Inc. 24556 Facilities Managers, Inc. 6332 Alfaro's Service Center 344628 DHL Worldwide Express 507 Ksearch Asia Consultino, Inc. 26655 Oakwood Premier 391655 PLOT 308 1 Rustan Coffee Corp 5030 Red Ribbon Bakeshop, Inc. 3578 Baker Fresh Foods Philippines 3588 Baker Fresh Foods Philippines 424 HungryTummy, Inc.

511 AI faros Service Center 344628 DHL Worldwide Express 63 JS Hechanova Trading Corp. 391655 PLOT 161676 Rajah Travel Corporation 10775 RCBC Realty Corp 4559 Sun fresh Laundry and Dry Cleaning Service 77023 Lane Moving and Storage 344628 DHL Worldwide Express 5462 K&A Insurance Broker 161676 Rajah Travel Corporation Total for the month of January 2006 3570 Baker Fresh Foods Philippines 3616 Baker Fresh Foods Philippines 37 14 Baker Fresh Foods Philippines 37 19 Baker Fresh Foods Philippines 378 1 Baker Fresh Foods Philippines 9408 Pizza Hut 2421 Wendy's Phillipines 24298 Broburg, Inc.

127 Chowking Food Corporation 8546 Eduardo's Auto Electical Shop 319 Eduardo's Auto Electical Shop 711 3 Eduardo's Auto Electical Shop 46 1 1-iunq,ryTummy, Inc.

7727 Kitaro Sushi 135 Mary Grace Foods, Inc. 139 Mary Grace Foods, Inc. 2114 Alfaro's Service Center 3428 Alfaro's Service Center 3501 Alfaro's Service Center 85 13 Alfaro's Service Center 35 11 Starbucks Coffee 3454 Starbucks Coffee 3348 Green Tomato, Inc.

11 92 Macshop Distribution Co .. Inc. 14690 Searchers and Staffers Corp. 21369 Searchers and Staffers Corp. 500 Executive Training Institute of the Philippines 10575 Accuprint Incorporated 156645 Makati Sports Club, Inc. 11896 Business Staffing and Management, Inc. 15940 Guard All Electronic Security Systems, Inc. 232256 lnnove Communications 25343 Oakwood Premier 16225 1 Rajah Travel Corporation 16240 1 Rajah Travel Corporation 162508 Rajah Travel Corporation 26295 Volvo Vikings Car, Inc. II ,250.00

"AA- 108"

4.630.10 "AA-1 09" to "AA-126"

30. 134.48 "AA-127" to "AA-1 32" 11 ,750. 16 "AA- 133" to "AA- 143" II , 192.66 "AA- 144" to "AA-154" 1.495.00

"AA- 155"

1.877.88

"AA- 156"

25,077.65 "AA-157" 2,546. 14

"AA- 158"

5,879.13 "AA-159" to "AA-160" 4,93636 "AA-161" 3,272.73

"AA-1 62"

63.64

"AA-1 63"

7,788.00 "AA-1 64" to "AA-1 66" 19.186 03 "AA- 167" to "AA-1 68" 16,837.91 "AA-1 69" to "AA- 170" 68,778.65 "AA-1 71" to "AA-178" 660.00 "AA-179" to "AA-1 80" 309.09

"AA-181 "

10,512.00 "AA-182" to "AA- 183" 60,000.00 "AA-184" to "AA-191" 143,944. 11 "AA- 192" to "AA-204" 136.9 1 "AA-205" 50.00 "AA-206" 89.00 "AA-207" 168.73 "AA-208" 45.45 "AA-209" 83.36

"AA-2 10"

163.64

"AA-2 11 "

4,138.60 "AA-212" 45,432.50 "AA-213" 684.55 "AA-214" to "AA-218" 432.95 "AA-219" to "AA-223" 61 ,673.46 "AA-224" 59.00 "AA-225" 1,070.21 "AA-226" 4.274.10 "AA-227" 1.083.00 "AA-228" 447.60 "AA-229" to "AA-230" 899,476.50 175.00 "AA-252" 143.64 "AA-253" 93.55 "AA-254" 44.57 "AA-255" 109.7 1 "AA-256" 86.12 "AA-257" 30.61 "AA-258" 60.00 "AA-259" 9600 "AA-260" 152.27

"AA-26 1"

181.82 "AA-262" 150.00 "AA-263" 26 136 "AA-264" 16.45 "AA-265" 68.55 "AA-266" 52.50 "AA-267" 163.64 "AA-268" 192.86 "AA-269" 192.86 "AA-270" 203.57

"AA-27 1"

87.27 "AA-272" 54.55 "AA-273" 394.82 "AA-274" 192.86 "AA-275" 7.502.6 1 "AA-276" to "AA-281 " 4, 707 85 "AA-282" to "AA-284" 5,357. 14 "AA-286" 18,062.68 "AA-287" 6,540.00 "AA-288" 2,497.89 "AA-289" 204.55 "AA-290" 20,815.06

"AA-29 1"

45,554.04 "AA-292" to "AA-294" 109.56 "AA-295" 50.00 "AA-296" 336.00 "AA-297" to "AA-299" 7.066.70 - .

...

"AA-300" (

CT A EB CASE NO. 9-!0 (CT A Case Nos. 7776 and 7813)

4487 Executive International Movers 1775 Network Solutions and Interfaces Corp. 24777 Facilities Managers, Inc. 86573 Facilities Managers, Inc. 514 Ksearch Asia Consultino. Inc. 1681 Institutional Synergy. Inc. 1828 Training Institute for Managerial Excellence. Inc. 1829 Training Institute for Managerial Excellence, Inc.

3177 1

Fuji Xerox Philippines, Inc. 26824 Microdata Systems and Management 6365 Jollibee Foods Corp 9609 Golden Arches Development Corp. 298978 Golden Plate Restaurant Corporation 6391 Jollibee Foods Corp 5308 Golden Arches Development Corp. 11 026 RCBC Realty Corp 11 027 RCBC Realty Corp 11 895 Business Staffin g and Manaoement, Inc. 16085 North Park Nood le House 5358 Colliers International 234 17 Good Deal Food Corporation

II 14

Lanting Security and Watchman Agency 2707 Global Business Support Services, Inc. 1993502 Globe Telecom 1414478 Mandarin Oriental Manila 20186 Kent International Trading Co., Inc. 1632 EDS Electronic Data Systems (Phils), Inc. 11 734 Supply Oilfield Services, Inc. 4548/4547 Sun fresh Laundry and Dry Cleanino Service 3129/8545 Eduardo's Auto Electical Shop 5108 Flowertowne. Inc.

3845/3867 Olympus Foods, Inc.

4582/4593 Sun fresh Laundry and Dry Cleaning Service 7257 Philippine Pizza Corp. 3460/3467 Rustan Coffee Corp 298362 Golden Plate Restaurant Corporation 7282 Clexpert Philippines, Inc. 881 /882/885 Mexicali Food Corp.

325/326 Pancake House, Inc.

3452 Rustan Coffee Corp 4904/4925 Sun fresh Laundry and Dry Cleaning Service 298978 Golden Plate Restaurant Corporation 4643/4602 Sun fresh Laundry and Dry Cleaning Service 2114/85 13 Alfaro's Service Center 22 The Coffee Bean and Tea Leaf Phi is .. Inc. 76 Gary Fabricante 4685 CP Treasure of the Orient, Inc. 297874 Golden Plate Restaurant Corporation 54822 Business One owned and operated by Business One, Inc. Total for the month of February 2006 3644 Philamcare Health Systems, Inc. 3643 Philamcare Health Systems, Inc. 391654 PLOT 11 20 Lanting Security and Watchman Agency 54474 Intercontinental Manila 152 Fiat Training and Consultancy 253352 Oakwood Premier 25379 Oakwood Premier 1637 EDS Electronic Data Systems (Phils), Inc. 9006 Eduardo's Auto Electical Shop 16161 Guard All Electronic Security Systems, Inc. 16162 Guard All Electronic Security Systems, Inc. 2 Eduardo J. Soriano 78 Gary Fabricante ISIS 7th Note 5048 Alfaro's Service Center 5570 AI faro's Service Center 33024 Bacchus Catering Corp. 3844 Baker Fresh Foods Philippines 120 10 Business Staffing and Management, Inc.

1849 1

Cornersteel Systems Corp. 3606 Chris Limchoc Construction 626582 DI-lL Worldwide Express 627006 DI-lL Worldwide Express 161 3 Divino Amor Realty, Inc. 185 DMJ Multi Print and Services 400.00 "AA-301" 2,385.66 "AA-302" 50,744. 15 "AA-303" to "AA-305" I ,800.00 "AA-306" 63.000 00 "AA-307" to "AA-3 13" 2.10000 "AA-314" 12,000 00 "AA-315" 12,000.00

"AA-3 16"

17,172. 11 "AA-317" to "AA-328" 133.93 "AA-330" 127.29

"AA-33 1"

77.79 "AA-332" 150.00 "AA-333" 233.36 "AA-334" 86.63 "AA-335" 42,107.3 1 "AA-336" to "AA-337" 210,406.80 "AA-338" 3,347.97 "AA-339" 4 1.82 "AA-340" 37.50

"AA-34 1"

156.96 "AA-342" 26,956.36 "AA-343" 8,237.88 "AA-344" to "AA-353" 166.60 "AA-354" 4,437.24 "AA-355" 694.18 "AA-356" 224,033.92 "AA-357" to "AA-358" 3,000.00 "AA-359" 59 09 "AA-360" 361 .36

"AA-36 1"

113.64 "AA-362" 194.00 "AA-363" 52.95 "AA-364" 305.80 "AA-365" 135.54 "AA-367" 195.45 "AA-368"

68. 18 "AA-369" 11 0.74 "AA-370" 198.45 "AA-371" 60.0 1 "AA-372" 48.10 "AA-373"

I SO 00

"AA-374" 84.40 "AA-375" 396.43 "AA-377" 155.27 "AA-378" 882.00 "AA-379" I ,980.00 "AA-380" 19.00

"AA-38 1"

168. 18 "AA-382" 813,782.71 285.65 "AA-418" 2,171.52

"AA-4 19"

12,32 1.06 "AA-420" to "AA-426" 29,924.99 "AA-427" to "AA-429" 248.76 "AA-430" 3,594.64 "AA-431" 42,873.44 "AA-432" to "AA-435" 14,226.39 "AA-436" to "AA-439" 41 , I 00.00 "AA-440" 182. 14

"AA-44 1"

13.64 "AA-442" 343.63 "AA-443" 153,263.16 "AA-444" 3,000.00 "AA-445" 208.93 "AA-446" 214.29 "AA-447" 192.86 "AA-448" 151.80 "AA-449" 150.86 "AA-450" 3,375.72

"AA-45 1"

3,327.98 "AA-452" 3,32 1.43 "AA-453" 2,5 18.74 "AA-454" 65.40 "AA-455" 4,07 1.43 "AA-456" 4,229.4 7 "AA-457" to "AA-458" ~

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

2484 1

Facilities Manaoers, Inc. 26438 Fu ji Xerox Philippines, Inc. 10015 Golden Arches Development Corp.

I 0062/ I 0063

Golden Arches Development Corp.

II 0064

602 HungryTummy, Inc.

190674 IBM Philippines, Inc. 2743 Global Business Support Services, Inc. 352842 Integrated Computer Systems, Inc. 12564 Kayalayaan Enoineering Company, Inc. 12475 Kayalayaan Enoineering Company, Inc. 7036 Kitaro Foods Corporation 7102 Kitaro Foods Corporation 517 Ksearch Asia Consulting, Inc. 525 Ksearch Asia Consulting, Inc. 83 17 Lane Archive Technologies 1809 Master Automated Systems, Inc. 1795 Master Automated Systems, Inc. 91 1/913 Mexicali Food Corp.

899 Mexical i Food Corp.

313 Modern Primitive Business 4 769/4770/ Sun fresh Laundry and Dry Cleaning Service 4789 4746 Sun fresh Laundry and Dry Cleaning Service 4825/4827/ Sun fresh Laundry and Dry Cleaning Service 4826 470 1 Sun fresh Laundry and Dry Cleaning Service 1617 Yellow Cab Food Corporation 600 X Options, Inc.

I 13-0096926

Wholesome Food. Inc. - KFC People Support 1835 Time, Inc.

2431 Servcom, Inc.

19398 Searchers and Staffers Corp. 19397 Searchers and Staffers Corp. 207 ROT .IR Associates, Inc. 162760 Rajah Travel Corporation 162602 Rajah Travel Corporation 86575 Punongbayan and Araulo 86574 Punongbayan and Araulo 3990 Ponce Emile Reyes and Manalastas 3989 Ponce Emile Reyes and Manalastas 804 17 Quick Food Incorporated 31393 Personal and Computer Specialists, Inc. 36301 Next Mobile, Inc.

1017 Newport Learnino Center, Inc. 1009 Newport Learnino Center, Inc. 54475 Intercontinental Manila 11 25 Lantino Security and Watchman Agency 164 Mary Grace Foods, Inc. 198 Mary Grace Foods, Inc. 469 Toyota Makati, Inc.

11044 Roasters Phils., Inc. 1900/1855 Rustan Coffee Corp 8004 Alfaro's Service Center 3887 Baker Fresh Foods Philippines 180 Headstrono Philippines. Inc. Total for the month of March 2006 Total for the First Quarter of CY 2006 "A1111ex"B."

36,371.73 "AA-459" to "AA-462" 17,757.82 "AA-463" to "AA-465" 53.04 "AA-466" 202.71 "AA-467" I 11.43 "AA-468" 3,888.83 "AA-469" I 0, 73106 "AA-470" to "AA-479" 794.64 "AA-480" to "AA-482" 5,345.67 "AA-483" 5,250.00 "AA-484" 11.79 "AA-485" 98.57 "AA-486" 36,000.00 "AA-487" to "AA-490" 45,000.00 "AA-49 1" to "AA-495" 1,706.79 "AA-496" 825.00 "AA-497" 700.00 "AA-498" 127.26 "AA-499" 44.06 "AA-500" 5,30141 "AA-50 I" to "AA-502" 98.30 "AA-503" 29.46 "AA-504" 91.39 "AA-505" 87.05 "AA-506" 137.14 "AA-507" I ,07 1.43 "AA-508" 155.04 "AA-509" 12.000.00

"AA-5 10"

I ,053.48

"AA-511 "

2,759.68 "AA-512" to "AA-5 13" 2.31530 "AA-514" to "AA-5 15" 8,373.95 "AA-516" to "AA-5 18" 62838 "AA-519" to "AA-523" 3,443.42 "AA-524" to "AA-548" I ,536.00 "AA-549" 1,819.00 "AA-550" 3,000.00 "AA-551" 2,500.00 "AA-552" 40.71 "AA-553" 150.00 "AA-554" I ,247.71 "AA-555" to "AA-568" 750.00 "AA-569" 6,321.43 "AA-570" 248.76 "AA-571" 23,643.22 "AA-572" to "AA-573" 107.04 "AA-574" 48.43 "AA-575" 214.29 "AA-576" 155.57 "AA-577" 173.57 "AA-580" 192.86 "AA-581" 68.57 "AA-582" 4 12,570.52 "AA-583" to "AA-584" 982,731.44 I 2,695,990.65 I INPUT VAT ON DOMESTIC PURCHASE OF SERVICES SUPPORTED BY VAT OFFICIAL RECEIPTS BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE NIRC OF 1997, AS

AMENDED FOR THE SECOND QUARTER OF CY 2006

Official Receipt No.

Supplier Input Tax Exhibit 989 30 Networks -4,506.92 "AA-604" to "AA-605" 7851 Alfaro's Service Center 171.43 "AA-606" 8861 Alfaro's Service Center 192.86 "AA-607" 3998 Baker Fresh Foods Philippines 175.71 "AA-608" 7004/ 6867 Bo11Zer Foods Corporation 253.39 "AA-609" 758/ 759 Buds and Lilies Flower Kingdom 360.00 "AA-610" 12021 Business Staffing and Management, Inc. 2,735.02 "AA-614" 11915 Business Staffing and Management, Inc. 3,395.55 "AA-615" 12033 Business Staffing and Management, Inc. 4,891.44 "AA-616" to "AA-617" 5493 Colliers International 49.07 "AA-618" 5623 Colliers International 75.00 "AA-619" --- ;

i .

' I I ' (

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

5949 Colliers International 626884A DHL Worldwide Express MKT644634 DHL Worldwide Express 1947/1948 Eagle Point 1636 EDS Elecb·otuc Data Systems (Phils), Inc. 1644 EDS Electrmuc Data Systems (Phils), Inc. 1645 EDS Elecb·o11.ic Data Systems (Phils), Inc. 1105 Eduardo's Auto Electical Shop 993 Eduardo's Auto Electical Shop 4567 Executive International Movers 1060 FoodFirst Food Services, Inc. 25143 Facilities Managers, Inc. 25463 Facilities Managers, Inc. 154 Fiat Trai11.ing and Consultancy 155 Fiat Trai11.ing and Consultancy 34323 Fuji Xerox Philippines, Inc. 79 Cary Fabricante 80 CaryFabricante 2870 Global Business Support Services, Inc. 2880 Global Business Support Services, Inc. 2895 Global Business Support Services, Inc. 2894 Global Business Support Services, Inc. 11018 Colden Arches Development Corp. 11015 Colden Arches Development Corp. 4359 Infinite Power Systems, Inc. 354450 Integrated Computer Systems, Inc. 457 jet Circuit Auto Center 529 Ksearch Asia Consulting, Inc. 8316 Lane Archive Technologies 1134 Lanting Security and Watchman Agency 1144 Lanting Security and Watchman Agency 1148 Lanting Security and Watchman Agency 1353 M & H Food Corp.

227 Mary Crace Foods, Inc. 1420759 Mandarin Oriental Ma11.ila 1420758 Mandarin Oriental Manila 6583 MCE UPS Systems Philippines, Inc. 68627 NS Ocana, Inc.

16968 Olivers Super Sandwiches Phils, Inc. 31501 Personal and Computer Specialists, Inc. 6356 Red Ribbon Bakeshop, Inc. 1779 Network Solutions and Interfaces Corp. 73683 New World Renaissance Hotel 73794 New World Renaissance Hotel 36302 Next Mobile, Inc.

36303 Next Mobile, Inc.

532 Ksearch Asia Consulting, Inc. 8160 YFS Foods Service, Inc. 25388 Oakwood Pren1.ier 25394 Oakwood Prenuer 448736 PLOT 87301 Punongbayan and ArauJo 163051 Rajah Travel Corporation 163178 Rajah Travel Corporation 163303 Rajah Travel Corporation 163410 Rajah Travel Corporation 163805 Rajah Travel Corporation 11552 RCBC Realty Corp 11607 RCBC Realty Corp 6360 Seven Sierra Food Corporation 19396 Searchers and Staffers Corp. 9319 SGV Development Dimensions 4882/ 4883 Sunfresh Laundry and Dry Cleaning Service 4893/4894/ -t895 Sunfresh Laundry and Dry Cleaning Service 4897/ 4898 Sunfresh Law1dry and Dry Cleaning Service 4851/4852 Sunfresh Laundry and Dry Cleaning Service 4853/4863/ 4881 Sunfresh Laundry and Dry Clea11.ing Service 4886/4887/ 4889 Sunfresh Laundry and Dry Cleaning Service 27343 Viking Cars, Inc.

- 21.43 "AA-620" 487.06 "AA-621" to "AA-622" 22,931.98 "AA-623" to "AA-637" 535.71 "AA-638" 204,847.45 "AA-639" 247,352.44 "AA-640" to "AA-641" 7,698.44 "AA-642" 214.29 "AA-643" 203.57 "AA-644" 931.20 "AA-645" 171.43 "AA-646" 19,969.14 "AA-647" to "AA-649" 44,782.20 "AA-650" to "AA-652" 3,594.64 "AA-653" 13,258.93 "AA-654" 44,126.43 "AA-655" to "AA-663" 3,592.64 "AA-664" 3,623.53 "AA-665" 1,907.85 "AA-666" to "AA-674" 23,137.21 "AA-675" to "AA-683" 12,620.14 "AA-684" to "AA-689" 2,203.03 "AA-690" to "AA-693" 53.04 "AA-694" 82.50 "AA-695" 8,717.73 "AA-696" 1,200.00 "AA-697" 30.00 "AA-699" 27,000.00 "AA-700" to "AA-702" 660.29 "AA-703" 27,267.32 "AA-703" to "AA-705" 29,485.72 "AA-706" to "AA-707" 25,707.86 "AA-708" 82.50 "AA-710" 113.14 "AA-711" 784.23 "AA-712" 4,732.91 "AA-713" 2,455.74 "AA-714" to "AA-715" 100.61 "AA-716" 112.50 "AA-717" 1,767.86 "AA-718" 70.71 "AA-719" 506.81 "AA-720" to "AA-721" 5,861.78 "AA-722" to "AA-723" 496.53 "AA-724" 687.26 "AA-726" to "AA-732" 687.26 "AA-733" to "AA-739" 9,000.00 "AA-740" 196.56 "AA-741" 3,307.52 "AA-742" 4,972.91 "AA-743" to "AA-744" 952.32 "AA-745" to "AA-750" 1,907.70 "AA-753" 1,323.09 "AA-754" to "AA-765" 1,407.78 "AA-766" to "AA-775" 129.98 "AA-776" 2,131.68 "AA-777" to "AA-789" 1,194.54 "AA-790" to "AA-798" 649,982.56 "AA-799" to "AA-800" 4,597.27 "AA-801" 115.71 "AA-802" 5,238.23 "AA-803" to "AA-805" 1,917.86 "AA-806" 96.67 "AA-807" 115.77 "AA-808" 87.86 "AA-809" 85.49 "AA-810" 110.70 "AA-811" 103.92 "AA-812" 330.48 "AA-813" v

CIA EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

4743 White Beach Nipa H ut Bar an d Rest 602 X Options, Inc.

8316 Lane Archive Technologies 201 Headsh·ong Philippines, Inc. 204 Headsh·ong Philippines, Inc. 214 Headstrong Philippines, Inc. 1843 Time, Inc.

532 Ksearch Asia Consulting, Inc. Total for the month of April 2006 11670 RCBC Realty Corp 12049 Business Staffing and Management, Inc. 25740 Facilities Managers, Inc. 3025 Global Business Support Services, Inc. 3104 Global Business Support Services, Inc. 2000231 Globe Telecom 19994 I nsti tu tiona! Synergy, Inc. 12642 Kalayaan Engineering Company, Inc. 535 Ksearch Asia Consulting, Inc. 544 Ksearch Asia Consulting, Inc. 546 Ksearch Asia Consulting, Inc. 25409 Oakwood Premier 1552 Lanting Security and Watchman Agency 1568 Lanting Security and Watchman Agency 134743 Maka ti Shan gri-La Manila 1081 Newport Learning Center, Inc. 448735 PLOT 448734 PLOT 164083 Rajah Travel Corporation 14791 Searchers and Staffers Corp. 19617 Searchers and Staffers Corp. 19616 Searchers and Staffers Corp. 2553 Servcom, Inc.

3086 Speech power 493 Red Ribbon Bakeshop, Inc. 173769 North Park Noodle House 6810 Bonzer Foods Corporation 348 Wh olesome Food, Inc. 18049 Business Staffing and Management, Inc. 11911 Brooklyn Pizza Company, Inc. 11391 Dome Cafe Franchise Corpora tiion 7140 Bonzer Foods Corpora tion 1813 Amber's Restaurant and lhaw-lhaw, Inc. 5857 Kitaro Foods Corporation 7327 Lorped Service Center 763 Eduardo's Auto Electical Shop 287447 Dusit Hotel Nikko 10393 RCBC Realty Corp 689709 joan Agbayani - Petty Cash 6895 Joan Agbayani - Petty Cash 248 joan Agbayani - Petty Cash 4270 Baker Fresh Foods Philippines 11973 Golden Arches Development Corp. 6904 Bonzer Foods Corporation 4453/4454 Sunfresh Laundry and Dry Cleaning Service 163804 Rajal1 Travel Corporation 74160 New World International 645264 DHL Worldwide Express 12227 Golden Arches Development Corp. 10867 Roxas Food Ventures, Inc. 645264 DHL Worldw ide Express 236640 Globe Telecom 7622 Philipp ine Pizza Corp. 15182 jobstreet.com Phi lippines, Inc. 356284 Integrated Computer Systems, Inc. 1002 3D Networks 721 South East Asia Speakers 198 DMJ Multi Print and Services 50652 New Ajar Commercial 645329 DHL Worldwide Express 55733 Intercontinental Manila 645329 DHL Worldwide Express 2000137 Globe Telecom 146.25 "AA-814" 3,750.00 "AA-815" 362.65 "AA-816" 350,741 .73 "AA-819" to "AA-820" 36,599.25 "AA-821" to "AA-822" 208,043.14 "AA-823" to "AA-824" 18,000.00 "AA-825" to "AA-826" 36,000.00 "AA-827" to "AA-830" 2,156,631.05 808,534.32 "AA-875" to "AA-876" 5,757.10 "AA-877" to "AA-878" 22,309.41 "AA-879" to "AA-880" 19,157.11 "AA-882" to "AA-888" 1,356.20 "AA-889" to "AA-891" 1,353.51 "AA-892" to "AA-899" 2,520.00 "AA-894" 5,345.67 "AA-895" 90,000.00 "AA-896" to "AA-905" 63,000.00 "AA-906" to "AA-912" 171,000.00 "AA-913" to "AA-931" 17,702.43 "AA-932" to "AA-933" 2,635.71 "AA-934" 31,418.57 "AA-935" to "AA-936" 107.14 "AA-937" 8,185.71 "AA-938" 11,052.00 "AA-939" 11,061.60 "AA-940" 1,164.16 "AA-941" to "AA-950" 3,426.22 "AA-951" to "AA-952" 1,617.88 "AA-953" 2,832.76 "AA-954" to "AA-955" 1,910.62 "AA-956" to "AA-957" 12,600.00 "AA-958" 41.79 "AA-959" 144.84 "AA-960" 181.07 "AA-962" 63.64 "AA-963" 381.82 "AA-964" 55.71 "AA-965" 176.88 "AA-966" 114.91 "AA-967" 103.93 "AA-968" 69.00 "AA-969" 64.29 "AA-970" 192.86 "AA-971" 353.57 "AA-972" 1,320.00 "AA-973" 30.00 "AA-974" 77.14 "AA-975" 77.14 "AA-978" 44.57 "AA-979" 67.50 "AA-980" 74.07 "AA-982" 114.02 "AA-983" 849.36 "AA-984" to "AA-988" 1,170.39 "AA-989" 5,054.28 "AA-990" 94.05 "AA-991" 199.50 "AA-992" 3,684.03 "AA-993" 30,309.77 "AA-994" 92.65 "AA-995" 720.00 "AA-996" 6,723."17 "AA-997" 2,253.45 "AA-998" 7,140.00 "AA-999" 1,261.61 "AA-1000" 310.71 "AA-1001" 4,947.71 "AA-1002" to "AA-1006" 6,427.05 "AA-1007" 63.93 "AA-1008" 1,136.61 "AA-1009" to "AA-1011" r CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) 163931 Rajah Travel Corporation 18283 Philamcare Health Systems, Inc. 645329 DHL Worldwide Express 5948 Colliers International 9365 SGV Development Dimensions 1555 Lanting Security and Watchman Agency 645329 DHL Worldwide Express 9365 SGV Development Dimensions 645329 DHL Worldwide Express 1727 Rajah Travel Corporation 25418 Ascott Makati 1727 Rajah Travel Corporation 645329 DHL Worldwide Express 1646 EDS Electronic Data Systems (Phils), Inc. 96435 Caravan Travel and Tours 53722 Next Door, Inc.

4220 Isla Lipana and Co.

Total for the month of May 2006 31148 Viking Cars, Inc.

134714 Makati Shangri-La Manila 12663 Kalayaan Engineering Company, Inc. 1187 RCBC Realty Corp 164535 Rajah Travel Corporation 448733 PLOT 357609 Integrated Computer Systems, Inc. 3143 Global Business Support Services, Inc. 786 Infinite Power Systems, Inc. 3217 Global Business Support Services, Inc. 1573 Lanting Security and Watchman Agency 7380 Kitaro Foods Corporation 135034 Makati Shangri-La Manila 3173 MMLDC Foundatiion, Inc. 88019 Punongbayan and Araulo 88223 Punongbayan and ArauJo 164379 Rajah Travel Corporation 2299 Restaurant and lhaw-Ihaw, Inc. 19757 Searchers and Staffers Corp. 19758 Searchers and Staffers Corp. 3087 Speech power 4476/4477 Sunfresh Laundry and Dry Cleaning Service 4474/4473 Su.nfresh Laundry and Dry Cleaning Service 1605 Alfaro's Service Center 1019 30 Networks 2530 Asia Select Incorporated 837615 Bayan Telecommunications, Inc. 6172 Colliers International 9092 Lane Archive Technologies 8908 Lane Archive Technologies 291416 Dusit Hotel Nikko 1655 EDS Electronic Data Systems (Phils), Inc. 5569 Eduardo's Auto Electical Shop 4693 Executive International Movers 33 E.Z. Active Lifestyle Corp. 25806 Facilities Managers, Inc. 6405 Filtek Safety Corporation 37901 Fuji Xerox Philippines, Inc. 663547 DHL Worldwide Express 662254 DHL Worldwide Express 662505 DHL Worldwide Express 39016 Fuji Xerox Philippines, Inc. 356 Wholesome Foods, Inc. 18754 Brooklyn Pizza Company, Inc. 9092 Lane Archive Technologies 25806 Facilities M<magers, Inc. 31826 Personal and Computer Specialists, Inc. 237763 Innove Communications 1231 Hizons Restaurant and Catering Services, Inc. 57 Buan and Temprosa Law Offices 31148 Viking Cars, Inc.

Total for the month of June 2006 315.80 "AA-1012" to "AA-1014" 399.65 "AA-1015" 257.60 "AA-1016" to "AA-1019" 5,930.36 "AA-1020" 14,717.14 "AA-1021" 28,431.42 "AA-1022" to "AA-1023" 65.40 "AA-1024" 1,917.86 "AA-1025" 2,052.79 "AA-1026" to "AA-1027" 126.06 "AA-1029" 13,525.95 "AA-1030" to "AA-1031" 129.35 "AA-1032" 65.40 "AA-1033" 219,720.26 "AA-1034" to "AA-1035" 932.17 "AA-1036" 127.50 "AA-1037" 62,258.36 "AA-1038" 1,723,208.21 7,163.82 "AA-1064" 107.14 "AA-1065" 5,345.67 "AA-1066" 6,000.00 "AA-1067" 127.28 "AA-1068" 156.49 "AA-1069" 600.00 "AA-1070" to "AA-1071" 7,836.57 "AA-1072" to "AA-1075" 11,339.20 "AA-1076" 11,416.57 "AA-1077" to "AA-1082" 31,857.86 "AA-1083" to "AA-1084" 179.40 "AA-1085" 107.14 "AA-1086" 7,735.50 "AA-1087" 1,800.00 "AA-1090" 20,380.32 "AA-1091" 514.05 "AA-1092" to "AA-1094" 176.79 "AA-1095" 1,990.83 "AA-1096" to "AA-1097" 3,573.76 "AA-1098" to "AA-1099" 12,600.00 "AA-1100" 88.79 "AA-1101" 80.63 "AA-1102" 192.86 "AA-1103" 2,253.45 "AA-1104" 6,177.60 "AA-1105" 4,200.00 "AA-1106" 80.00 "AA-1107" 1,435.93 "AA-1108" 6,123.64 "AA-1109" 1,414.29 "AA-1110" 245,766.21 "AA-1111" to "AA-1112" 208.93 "AA-1113" 216.00 "AA-1114" 76.93

"AA-1 115"

132,953.24 "AA-1116" to "AA-1123" 6,696.43 "AA-1114" to "AA-1125" 28,436.43 "AA-1126" to "AA-1139" 1,913.64 "AA-1141" to "AA-1142" 9,767.65 "AA-1143" to "AA-1145" 13,817.05 "AA-1146" to "AA-1149" 4,987.02 "AA-1150" 62.36 "AA-1151" 75.86 "AA-1152" 8,581.00 "AA-1153" 15,183.57 "AA-1154" 8,305.71 "AA-1155" 47,132.29 "AA-1157" to "AA-1158" 7,500.00 "AA-1159" 432.00 "AA-1160" 2,978.16 "AA-1161" to "AA-1163" 688,146.06 r

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

Total for the Second Quarter of CY 2006 "' A1111e.r "C."

4,567,985.32 INPUT VAT ON DOMESTIC PURCHASE OF SERVICES SUPPORTED BY VAT OFFICIAL RECEIPTS BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE NIRC OF 1997, AS

AMENDED FOR THE THIRD QUARTER OF CY 2006

Official Receipt No.

Supplier Input Tax Exhibit 25964 Facilities Managers, Inc. 45,634.83 "AA-1203" to "AA-1204" 7261 Bonzer Foods Corporation 74.13 "AA-1205" 4481/4483 Sunfresh Laundry and Dry Cleaning Service 92.20 "AA-1206" 4485/ 4486/ -+488/ 4489 Sunfresh Laundry and Dry Cleaning Service 187.69 "AA-1207" 5428/5429 Sun fresh Laundry and Dry Cleaning Service 77.76 "AA-1208" 20039 Eduardo's Auto Electical Shop 21-+.29 "AA-1209" 13384 Golden Arches Development Corp. 85.21 "AA-1210" 15566/15978/ 15979 Golden Arches Development Corp. 271.08 "AA-1211" 111 Kabuki Place Restaurant 67.20 "AA-1212" 4511 Baker Fresh Foods Philippines 165.54 "AA-1213" 2346 Hungry Hippo Foods Corp. 204.60 "AA-1215" 6584 MGE UPS Systems Philippines, Inc. 3,383.60 "AA-1216" 97059 Caravan Travel and Tours 1,371.88 "AA-1217" 448732 PLDT 10,926.48 "AA-1218" 451881 PLOT 940.14 "AA-1218" to "AA-1224" 38856 Next Door, Inc.

687.26 "AA-1225" to "AA-12.'\1" 164766 Rajah Travel Corporation 1,437.04 "AA-1232" to "AA-1241" 164866 Rajah Travel Corporation 191.21 "AA-1242" to "AA-1243" 165007 Rajah Travel Corporation 784.55 "AA-1245" to "AA-1249" 165113 Rajah Travel Corporation 129.12 "AA-1250" 165384 Rajah Travel Corporation 646.35 "AA-1251" to "AA-1254" 9217 Lane Archive Teclm ologies 2,371.38 "AA-1255" 12951 Kalayaan Engineering Company, Inc. 5,345.67 "AA-1256" 1824 Network Solutions and Interfaces Corp. 12,833.60 "AA-1257" 135561 Makati Shangri-La Manila 321.42 "AA-1258" to "AA-1260" 135572 Makah Shangri-La Manila -+,177.21 "AA-1261" to "AA-1263" 135551 Makati Shangri-La Manila 1,348.93 "AA-1264" to "AA-1266" 394 Renaissance Makati City Hotel 1,618.32 "AA-1267" 1207 New Horizons Learning Center 1,435.71 "AA-1268" to "AA-1269" 1168 New Horizons Learning Center 803.57 "AA-1270" 1176 New Horizons Leaming Center 900.00 "AA-1271" 4825 Ponce Enrile Reyes and Manalastas 3,000.00 "AA-1273" 9429 SGV Development Dimensions 45,971.78 "AA-1274" to "AA-1278" 9364 SGV Development Dimensions 10,314.11 "AA-1279" 3415 Global Business Support Services, Inc. 6,173.96 "AA-1280" to "AA-1281" 3604 Global Business Support Services, Inc. 3,685.57 "AA-1282" to "AA-1283" 1997471 Globe Telecom 909.96 "AA-1284" to "AA-1288" 2014781 Globe Telecom 385.72 "AA-1289" to "AA-1290" 2015051 Globe Telecom 1,509.68 "AA-1291" to "AA-1294" 2014970 Globe Telecom 375.02 "AA-1295" 240416 hu1ove Communications 21,961.32 "AA-1296" 22405 Searchers and Staffers Corp. 7,402.49 "AA-1297" to "AA-1303" 3031 Martinez Flores San Pedro & Leano Law Offices 12,045.00 "AA-1304" to "AA-1306" 1584 Lanting Security and Watchman Agency 66,605.82 "AA-1307" to "AA-1310" 1590 Lanting Security and Watchman Agency 31,155.00 "AA-1311" 557 Ksearch Asia Consulting, Inc. 81,000.00 "AA-1312" to "AA-1320" 82 Buan and Temprosa Law Offices 864.00 "AA-1321" to "AA-1322" 80 Buan and Temprosa Law Offices 432.00 "AA-1323" 1038 3D Networks 2,253.45 "AA-1324" 1044 3D Networks 2,253.45 "AA-1325" 1826 Master Automated Systems, Inc. 825.00 "AA-1326" 43778 Emerson Network Power 7,732.32 "AA-1327" 12033 RCBC Realty Corp 3,475.71 "AA-1328" 17231 Toyota Makah, Inc.

939.39 "AA-1329" to "AA-1330" 18995 Toyota Maka ti, Inc.

4,682.67 "AA-1331" 1658 EDS Electronic Data Systems (Phils), Inc. 231,645.30 "AA-1333" to "AA-1334" 88756 Pu.nongbayan and Araulo 1,928.57 "AA-1335" 88640 Pu.nongbayan and ArauJo 642.86 "AA-1336" 88893 Punongbayan and ArauJo 1,800.00 "AA-1337" 697078 DHL Worldwide Express 5,470.65 "AA-1338" 697297 DHL Worldwide Express 4,384.06 "AA-1339" to "AA-1347" 697525 DHL Worldwide Express 65.40 "AA-1348" I rv

CTA EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

Total for the Second Quarter of CY 2006 '"Annex "C."

4,567,985.32 INPUT VAT ON DOMESTIC PURCHASE OF SERVICES SUPPORTED BY VAT OFFICIAL RECEIPTS BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLt~'fiON OF SECTION 113(B)(2)(a) OF THE NIRC OF 1997, AS

AMENDED FOR THE THIRD QUARTER OF CY 2006

- Official Receipt No.

Supplier Input Tax Exhibit 25964 Facilities Managers, Inc. 45,634.83 "AA-1203" to "AA-1204" 7261 Bonzer Foods Corporation 74.13 "AA-1205" 4481/4483 Sw1fresh Laundry and Dry Cleaning Service 92.20 "AA-1206" 4485/4486/ 4488/4489 Sunfresh Laundry and Dry Cleaning Service 187.69 "AA-1207" 5428/5429 Sunfresh Laundry and Dry Cleaning Service 77.76 "AA-1208" 20039 Eduardo's Auto Electical Shop 214.29 "AA-1209" 13384 Golden Arches Development Corp. 85.21 "AA-1210" 15566/15978/ 15979 Golden Arches Development Corp. 271.08 "AA-1211" 111 Kabuki Place Restaurant 67.20 "AA-1212" 4511 Baker Fresh Foods Philippines 165.54 "AA-1213" 2346 Hw1gry Hippo Foods Corp. 204.60 "AA-1215" 6584 MGE UPS Systems Philippines, Inc. 3,383.60 "AA-1216" 97059 Caravan Travel and Tours 1,371.88 "AA-1217" 448732 PLOT 10,926.48 "AA-1218" 451881 PLOT 940.14 "AA-1218" to "AA-1224" 38856 Next Door, Inc.

687.26 "AA-1225" to "AA-1231" 164766 Rajah Travel Corporation 1,437.04 "AA-1232" to "AA-1241" 164866 Rajah Travel Corporation 191.21 "AA-1242" to "AA-1243" 165007 Rajah Travel Corporation 784.55 "AA-1245" to "AA-1249" 165113 Rajah Travel Corporation 129.12 "AA-1250" 165384 Rajah Travel Corporation 646.35 "AA-1251" to "AA-1254" 9217 Lane Archive Technologies 2,371.38 "AA-1255" 12951 Kalayaan Engineering Company, Inc. 5,345.67 "AA-1256" 1824 Network Solutions and Interfaces Corp. 12,833.60 "AA-1257" 135561 Makati Shangri-La Manila 321.42 "AA-1258" to "AA-1260" 135572 Makati Shangri-La Manila 4,177.21 "AA-1261" to "AA-1263" 135551 Makati Shangri-La Manila 1,348.93 "AA-1264" to "AA-1266" 394 Renaissance Makati City Hotel 1,618.32 "AA-1267" 1207 New Horizons Learning Center 1,435.71 "AA-1268" to "AA-1269" 1168 New Horizons Learning Center 803.57 "AA-1270" 1176 New Horizons Learning Center 900.00 "AA-1271" 4825 Ponce Emile Reyes and Manalastas 3,000.00 "AA-1273" 9429 SGV Development Dimensions 45,971.78 "AA-1274" to "AA-1278" 9364 SGV Development Dimensions 10,314.11 "AA-1279" 3415 Global Business Support Services, Inc. 6,173.96 "AA-1280" to "AA-1281" 3604 Global Business Support Services, Inc. 3,685.57 "AA-1282" to "AA-1283" 1997471 Globe Telecom 909.96 "AA-1284" to "AA-1288" 2014781 Globe Telecom 385.72 "AA-1289" to "AA-1290" 2015051 Globe Telecom 1,509.68 "AA-1291" to "AA-1294" 2014970 Globe Telecom 375.02 "AA-1295" 240416 lnnove Communications 21,961.32 "AA-1296" 22405 Searchers and Staffers Corp. 7,402.49 "AA-1297" to "AA-1303" 3031 Martinez Flores San Pedro & Leana Law Offices 12,045.00 "AA-1304" to "AA-1306" 1584 Lanting Security and Watchman Agency 66,605.82 "AA-1307" to "AA-1310" 1590 Lanting Security and Watchman Agency 31,155.00 "AA-1311" 557 Ksearch Asia Consulting, Inc. 81,000.00 "AA-1312" to "AA-1320" 82 Buan and Temprosa Law Offices 864.00 "AA-1321" to "AA-1322" 80 Buan and Temprosa Law Offices 432.00 "AA-1323" 1038 30 Networks 2,253.45 "AA-1324" 1044 3D Networks 2,253.45 "AA-1325" 1826 Master Automated Systems, Inc. 825.00 "AA-1326" 43778 Emerson Network Power 7,732.32 "AA-1327" 12033 RCBC Realty Corp 3,475.71 "AA-1328" 17231 Toyota Makati, Inc.

939.39 "AA-1329" to "AA-1330" 18995 Toyota Makati, Inc.

4,682.67 "AA-1331" 1658 EDS Electronic Data Systems (Phils), Inc. 231,645.30 "AA-1333" to "AA-1334" 88756 Pw1ongbayan and ArauJo 1,928.57 "AA-1335" 88640 Punongbayan and ArauJo 642.86 "AA-1336" 88893 Punongbayan and ArauJo 1,800.00 "AA-1337" 697078 DHL Worldwide Express 5,470.65 "AA-1338" 697297 DHL Worldwide Express 4,384.06 "AA-1339" to "AA-1347" 697525 DHL Worldwide Express 65.40 "AA-1348"

CTA EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

26353 Facilities Managers, Inc. 26393 Facilities Managers, Inc. 26078 Facilities Managers, Inc. 18813 Cornersteel Systems Corp. 14 Charle Associates 4838 Executive International Movers A-291415 Dusit Hotel Nikko 1871 Training Institute for Managerial Excellence, Inc. 5309 Flowertowne, Inc.

8657/8658/ 8682 Neo Source Marketing 12068 RCBC Realty Corp 1997471 Globe Telecom 56401 Hotel Inter-Continental Manila 3415 Global Business Support Services, Inc. 234 Headstrong Philippines, Inc. 237 Headsh·ong Philippines, Inc. 242 Headstrong Philippines, Inc. 237 Headstrong Philippines, Inc. 27773 Broburg 250/252 EMB Medical Supply and Equipment 5108 Max's Ermita, Inc.

3246 Global Business Support Services, Inc. 681847 DHL Worldwide Express 81 Gary Fabricante 38744 Fuji Xerox Philippines, Inc. 82 Gary Fabricante 4606 Marido, Inc.

52266 Max's Makati, Inc.

313277 Wide Wide World Express Corporation 9742 Cyo Jyu, Inc.

16600 North Park Noodle House 17964 Olivers Super Sandwiches Phils, Inc. 7379 Philamcare Health Systems, Inc. 3230 Global Business Support Services, Inc. Total for the month of July 2006 6758 Filtek Safety Corporation 9457 Yellow Cab Food Corporation 1432629 Manila Mandarin Hotel, Inc. 1432628 Manila Mandarin Hotel, Inc. 4234 Mercer Human Resources Consulting, Inc. 136216 Makati Shangri-La Manila 165989 Rajah Travel Corporation 11407 Philamcare Health Systems, Inc. 1664 EDS Elech-ortic Data Systems (Phils), Inc. 1669 EDS Electronic Data Systems (Phils), Inc. 6516 Colliers International 3655 Cris Limchoc Construction 698204 DHL Worldwide Express 729 DMJ Multi Print and Services 738 DMj Multi Print and Services 739 DMJ Multi Print and Services 30038/33071 Alfaro's Service Center 4901 Executive International Movers 26918 Facilities Managers, Inc. 41057 Fuji Xerox Philippines, Inc. 42551 Fuji Xerox Philippines, Inc. 3634 Global Business Support Services, Inc. 3618 Global Business Support Services, Inc. 3756 Global Business Support Services, Inc. 3774 Global Business Support Services, Inc. 2015387 Globe Telecom 2015594 Globe Telecom 2013315 Globe Telecom 2016571 Globe Telecom 7566/15794 Golden Arches Development Corp. 391563 Destiny Cablem, Inc.

240888 !Jmove Conu11U1l.ications 1313 Hizons Restaurant and Catering Services, Inc. 192714 IBM Philippines, Inc. 360660 Integrated Computer Systems, Inc. 44,055.49 "AA-1349" to "AA-1350" 19,729.66 "AA-1351" 26,086.52 "AA-1352" 3,922.26 "AA-1353" 6,000.00 "AA-1354" 216.00 "AA-1355" 1,707.59 "AA-1356" to "AA-1357" 14,400.00 "AA-1358" to "AA-1359" 160.71 "AA-1360" 127.95 "AA-1361" 649,982.56 "AA-1362" to "AA-1363" 221.71 "AA-1364" 11,504.15 "AA-1365" 507.15 "AA-1366" to "AA-1367" 162,818.25 "AA-1368" to "AA-1369" 170,754.65 "AA-1370" 17,621.78 "AA-1371" 17,252.09 "AA-1372" 116.42 "AA-1373" 78.00 "AA-1374" 138.24 "AA-1375" 239.68 "AA-1376" 4,259.32 "AA-1377" 4,282.35 "AA-1378" 3,272.73 "AA-1379" 2,964.71 "AA-1380" 101.96 "AA-1381" 175.41 "AA-1382" 15.18 "AA-1383" 36.11 "AA-1384" 84.38 "AA-1385" 69.77 "AA-1386" 3,922.44 "AA-1387" 4,401.30 "AA-1389" 1,831,844.75 1,674.11 "AA-1445" 125.89 "AA-1446" 3,943.68 "AA-1447" 381.22 "AA-1448" 6,000.00 "AA-1449" 3,308.51 "AA-1350" to "AA-1352" 1,140.03 "AA-1353" to "AA-1361" 5,718.92 "AA-1462" 202,896.57 "AA-1463" 9,000.00 "AA-1464" 214.29 "AA-1465" !

3,377.44 "AA-1366" to "AA-1367" 13,774.89 "AA-1368" to "AA-1375" 7,565.36 "AA-1376" to "AA-1377" 642.86 "AA-1478" 154.29 "AA-1479" 364.29 "AA-1480" 2,793.60 "AA-1384" to "AA-1385" 74,417.05 "AA-1386" to "AA-1388" 93,212.50 "AA-1489" to "AA-1530" 14,264.98 "AA-1431" to "AA-1545" 3,436.70 "AA-1446" to "AA-1547" 6,336.32 "AA-1448" to "AA-1551" 25,033.97 "AA-1452" to "AA-1564" 10,096.89 "AA-1465" to "AA-1570" 1,553.57 "AA-1471" to "AA-1586" 600.76 "AA-1487" to "AA-1588" 1,084.09 "AA-1489" to "AA-1592" 160.71 "AA-1493" to "AA-1595" 419.41 "AA-1596" 1,979.04 "AA-1597" to "AA-1599" 21,375.20 "AA-1600" 160.71 "AA-1602" 3,888.83 "AA-1603" 5,926.34

"AA-1604" I

CTA EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

360477 Integrated Computer Systems, Inc. 18067 Jobstreet.com Philippines, Inc. 12844 Kayalayaan Engineering Company, Inc. 568 Ksearch Asia Consulting, Inc. 569 Ksearch Asia Consulting, Inc. 1598 Lanting Security and Watchman Agency 2406 Lanting Security and Watchman Agency 6779 MGE UPS Systems Philippines, Inc. 1473 New World lntemational Development Phils., Inc. 22933 North Park Noodle House 25767 Makati Property Ventures, Inc. 25768 Makati Property Ventures, Inc. 463937 PLOT 463938 PLOT 4946 Ponce Emile Reyes and Manalastas 89635 Punongbayan and ArauJo 165848 Rajah Travel Corporation 165721 Rajah Travel Corporation 12312 RCBC Realty Corp 12224 RCBC Realty Corp 19970 Searchers and Staffers Corp. 1870 Training Institute for Managerial Excellence, Inc. 1874 Training Institute for Managerial Excellence, Inc. 33550 Viking Cars, Inc.

355 Wholesome Foods, Inc. 8795 Yellow Cab Food Corporation 715377 DHL Worldwide Express 3833 Alecto General Technology Corp. 712777 DHL Worldwide Express 261 Headsh·ong Philippines, Inc. 252 Headsh·ong Philippines, Inc. 389 Mary Grace Foods, Inc. 596 Max's Kitchen, Inc.

1130 Mexicali Food Corp.

395 Mary Grace Foods, Inc. Total for the month of August 2006 5288 Max's Ermita, Inc.

6628 Colliers International 713287 DHL Worldwide Express 713665 DHL Worldwide Express 1668 EDS Elech·mlic Data Systems(Phils), Inc. 4520 Emerson Network Power 43154 Fuji Xerox Philippines, Inc. 2016344 Globe Telecom 242398 hmove Communications 909 lPSllnfiJlite Power Systems, Inc. 193165 IBM Philippines, Inc. 56695 Intercontinental Manila 9548 Lane Archive Technologies 9608 Lane Archive Technologies 2413 Lanting Security and Watchman Agency 137081 Makati Shangri-La Manila 136768 Makati Shangri-La Manila 1837 Master Automated Systems, Inc. 474 Modern Prinlitive Business Concepts 12540 Philamcare Health Systems, Inc. 12669 Philamcare Health Systems, Inc. 166258 Rajah Travel Corporation 166028 Rajah Travel Corporation 9568 SGV Development Dimensions 23620 Toyota Makati, Inc.

1877 Trairling Institute for Managerial Excellence, Inc. 1881 Trairling Institute for Managerial Excellence, Inc. 38 WIL TIF Marketing 605 X Options, Inc.

26999 Facilities Managers, Inc. 713665 DHL Worldwide Express 265 Headstrong Philippines, Inc. Total for the month of September 2006 Total for the Third Quarter of CY 2006 2,991.20 "AA-1605" 720.00 "AA-1606" 5,345.67 "AA-1607" 63,000.00 "AA-1608" to "AA-1614" 135,000.00 "AA-1615" to "AA-1629" 32,297.14 "AA-1630" 31,506.43 "AA-1631" 1,127.87 "AA-1633" 32.14 "AA-1635" 165.60 "AA-1636" to "AA-1639" 7,204.63 "AA-1640" to "AA-1646" 9,899.71 "AA-1647" 10,971.36 "AA-1648" to "AA-1653" 974.70 "AA-1654" 3,000.00 "AA-1655" 3,728.57 "AA-1656" 1,775.06 "AA-1657" to "AA-1670" 1,337.42 "AA-1671" to "AA-1680" 330.00 "AA-1681" 2,640.00 "AA-1682" 5,832.49 "AA-1685" to "AA-1688" 12,000.00 "AA-1689" to "AA-1690" 14,400.00 "AA-1691" to "AA-1692" 5,357.95 "AA-1693" 114.11 "AA-1694" 19.82 "AA-1695" 262.80 "AA-1696" to "AA-1699" 6,528.21 "AA-1700" to "AA-1701" ' 6,464.07 "AA-1702" to "AA-1705" 1 112,612.54 "AA-1706" 17,210.48 "AA-1707" 27.11 "AA-1708" 48.21 "AA-1709" 106.71 "AA-1710" 176.79 "AA-1711" 1,022,231.81 136.32 "AA-1756" 1,355.80 "AA-1761" to "AA-1763" 2,611.28 "AA-1764" to "AA-1777" 8,687.95 "AA-1778" to "AA-1780" 36,600.00 "AA-1781" 7,732.32 "AA-1782" 37,054.28 "AA-1783" to "AA-1802" 2,190.25 "AA-1803" to "AA-1813" 24,001.12 "AA-1814" 10,274.46 "AA-1815" 3,888.83 "AA-1816" 428.57 "AA-1818" 15,286.67 "AA-1819" to "AA-1820" 1,345.22 "AA-1821" 34,757.14 "AA-1822" 156.43 "AA-1823" 117.86 "AA-1824" 825.00 "AA-1825" 6,431.40 "AA-1826" to "AA-1827" 8,536.55 "AA-1828" 8,825.78 "AA-1829" 876.40 "AA-1831" to "AA-1837" 430.40 "AA-1838" to "AA-1840" 1,917.86 "AA-1841" 798.21 "AA-1843" to "AA-1844" 23,400.00 "AA-1845" to "AA-1846" 18,000.00 "AA-1847" 4,052.68 "AA-1848" 8,678.57 "AA-1849" 32,094.50 "AA-1850" 2,877.38 "AA-1851" 158,319.31 "AA-1852" to "AA-1853" 462,688.54 3,316,765.10 I

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

"A1111ex"D."

INPUT VAT ON DOMESTIC PURCHASE OF SERVICES SUPPORTED BY VAT OFFICIAL RECEIPTS BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE NIRC OF 1997, AS

AMENDED FOR THE FOURTH QUARTER OF CY 2006

Official Receipt No.

Supplier Input Tax Exhibit 3715 Rajah Travel Corporation 123.12 "AA-1886" 910 Asian Relocation Management, Inc. 4,320.00 "AA-1888" 16866 Business Process Outsourcing International, Inc. 2,832.00 "AA-1892" 434 Calvelo Engineered Systems 1,071.43 "AA-1893" 3666 Cris Limd1oc Consh·uction 417.86 "AA-1894" 9567 SGV Development Dimensions 16,868.57 "AA-1895" to "AA-1896" 9578 SGV Development Dimensions 22,340.36 "AA-1897" to "AA-1900" 746511 DHL Worldwide Express 6,451.30 "AA-1901" to "AA-1908" 747169 DHL Worldwide Express 641.79 "AA-1909" to "AA-1920" 714126 DHL Worldwide Express 3,927.86 "AA-1921" 292696 Dusit Hotel Nikko 45,826.45 "AA-1922" to "AA-1923" 4943 Executive International Movers 1,458.88 "AA-1924" 27111 Facilities Managers, Inc. 21,280.81 "AA-1925" 26435 Facilities Managers, Inc. 67,715.80 "AA-1926" to "AA-1927" 27273 Facilities Managers, Inc. 52,323.02 "AA-1928" to "AA-1929" 3922 Global Business Support Services, Inc. 14,589.26 "AA-1949" to "AA-1958" 243548 Globe Telecom 23,672.81 "AA-1959" 2019190 Globe Telecom 3,675.41 "AA-1960" to "AA-1973" 2017942 Globe Telecom 2,566.38 "AA-1974" to "AA-1979" 4038 Global Business Support Services, Inc. 27,533.14 "AA-1980" to "AA-1987" 2019370 Globe Telecom 199.29 "AA-1988" 2017976 Globe Telecom 197.81 "AA-1989" 2017375 Globe Telecom 192.86 "AA-1990" 28215 Guthrie-jensen Consultants, Inc. 3,600.00 "AA-1991" to "AA-1992" 2018245 Globe Telecom 24,353.47 "AA-1993" 18088 jobstreet.com Philippines, Inc. 720.00 "AA-1994" 18087 Jobstreet.com Philippines, fnc. 720.00 "AA-1996" 1871 Network Solutions and Interfaces Corp. 4,182.01 "AA-1997" to "AA-1998" 578 Ksearch Asia Consulting, Inc. 162,000.00 "AA-2000" to "AA-2017" 580 Ksearch Asia Consulting, Inc. 6,000.00 "AA-2018" 590 Ksearch Asia Consulting, Inc. 215,013.60 "AA-2019" to "AA-2042" 9868 Lane Archive Technologies 378.00 "AA-2043" 2425 Lanting Security and Watchman Agency 32,560.71 "AA-2044" 2422 Lanting Security and Watchman Agency 32,648.57 "AA-2045" 3358 Lanting Security and Watchman Agency 32,385.00 "AA-2046" 137626 Makati Shangri-La Marilla 1,445.57 "AA-2047" 136759 Makati Shangri-La Manila 312.86 "AA-2048" to "AA-2049" 137523 Makati Shangri-La Marilla 2,166.49 "AA-2050" to "AA-2052" 6923 MGE UPS Systems Philippines, Inc. 1,127.87 "AA-2053" 3808 MMLDC Foundatiion, Inc. 5,004.91 "AA-2054" 1879 Network Solutions and Interfaces Corp. 17,977.84 "AA-2055" to "AA-2059" 1346 New Horizons Learning Center 4,360.71 "AA-2060" 27533 Oakwood Premier 30,396.60 "AA-2061" 27530 Oakwood Prem.ier 100.00 "AA-2062" 27528 Oakwood Premier 136.36 "AA-2063" 27529 Oakwood Prem.ier 2,709.80 "AA-2064" 27532 Oakwood Prem.ier 10,322.89 "AA-2065" 27531 Oakwood Premier 2,945.42 "AA-2066" 27527 Oakwood Prem.ier 36.36 "AA-2067" 406313 PLOT 22,484.16 "AA-2068" to "AA-2069" 5160 Ponce Enrile Reyes and Manalastas 3,518.40 "AA-2071" to "AA-2072" V0117 Rajah Travel Corporation 751.44 "AA-2073" to "AA-2078" V0538 Rajah Travel Corporation 432.17 "AA-2079" to "AA-2082" V0821 Rajah Travel Corporation 244.58 "AA-2083" to "AA-2084" 3110 Rajah Travel Corporation 5,574.60 "AA-2085" to "AA-2129" 12495 RCBC Realty Corp 2,640.00 "AA-2131" 2183 Renaissance Makati City Hotel 4,803.73 "AA-2132" 2194 Renaissance Makati City Hotel 36,819.69 "AA-2133" 2704 Renaissance Makati City Hotel 7,832.17 "AA-2134" 14416 Searchers and Staffers Corp. 7,533.60 "AA-2135" to "AA-2138" 21200 Searchers and Staffers Corp. 2,764.38 "AA-2139" to "AA-2140" 3100 Speech power 14,280.00 "AA-2141" 1887 Train.ing Institute for Managerial Excellence, Inc. 9,000.00 "AA-2142" 1886 Train.ing Institu te for Managerial Excellence, Inc. 18,000.00 "AA-2143" 516 Torr Equipment, Inc.

6,227.76 "AA-2144" 24799 Toyota Makati, Inc.

938.98 "AA-2145" I \.

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

24798 Toyota Makati, Inc.

174 Training and Consultancy Corp. 219514 Werdenbcrg International Corporation 1081 3D Networks 16978 Business Process Outsourcing International, Inc. 5250 Baker Fresh Foods Philippines 599 Red Ribbon Bakeshop, Inc. 792 Wholesome Foods, Inc. 2276 A veneto Pizzeria Ristorante, Inc. 5265 Baker Fresh Foods Philippines 2822 Yellow Cab Food Corporation 1069 Max's Kitchen, Inc.

166367 Rajah Travel Corporation 29381 Craving5 Bake Shop and Restaurant 4954 Hungry Tummy, Inc.

16407 Golden Arches Development Corp. 2196 Greenwich Pizza Corp. 7854 Golden Ard1es Development Corp. 875472 Baya.n Telecommwucations, Inc. 274 Headsh·ong Philippines, Inc. 3726 Rajah Travel Corporation Total for the month of October 2006 539 Torr Equipment, Inc.

10968 Jet Circuit Auto Center 1099 3D Networks 363484 Integrated Computer Systems, Inc. 4682 Emerson Network Power 4730 Emerson Network Power 382 JLGT Marketing 951 Rajah Travel Corporation 1042 Rajah Travel Corporation 1580 Rajah Travel Corporation 1700 Rajah Travel Corporation 3030 Josiah 's Ca tering Incorporated 3065 josiah's Catering Incorporated 138206 Makati Shangri-La Manila 138796 Makati Shangri-La Manila 747607 DHL Worldwide Express 747719 DHL Worldwide Express 2020077 Globe Telecom 2020078 Globe Telecom 244689 Innove Commw1ications 1392 New Horizons Leanung Center 7001 Colliers International 7056 Colliers International 212 Persona ID Ca rd Enterprises 46023 Fuji Xerox Philippines, Inc. 44223 Fuji Xerox Philippines, Inc. 886513 Bayan Telecommw1ications, Inc. 17532 Business Process Outsourcing International, Inc. 6960 MGE UPS Systems Philippines, Inc. 6961 MGE UPS Systems Philippines, Inc. 1882 Network Solutions and Interfaces Corp. 1888 Trai11ing Institute for Managerial Excellence, Inc. 1889 Trai11ing Institute for Managerial Excellence, Inc. 21484 Searchers and Staffers Corp. 21486 Searchers and Staffers Corp. 10871 Lane Archive Technologies 11019 Lane Archive Teclmologies 435 Calvelo Engineered Systems 947 Infi.tute Power Systems, Inc. 513 Visions and Breakthroughs International, Inc. 2442 Lanti.t1g Security and Watchman Agency 4143 Global Business Support Services, Inc. 4127 Global Busi.t1ess Support Services, Inc. 597 Ksearch Asia Consulting, Inc. 452 J.S. Hechanova Trad ing 1117 3D Networks 3021 Yellow Cab Food Corporation 1392 Justine A. Flower Shop 4956 Hungry Tummy, Inc.

1,584.41 "AA-2146" 3,600.00 "AA-2147" 409.50 "AA-2148" 4,506.90 "AA-2149" to "AA-2150" 5,940.00 "AA-2151" 58.39 "AA-2152" 41.80 "AA-2153" 94.07 "AA-2154" 234.11 "AA-2155" 246.75 "AA-2156" 137.14 "AA-2157" 273.21 "AA-2158" 500.80 "AA-2159" to "AA-2162" 8,269.59 "AA-2163" 150.00 "AA-2164" 119.74 "AA-2165" 314.57 "AA-2166" 25.93 "AA-2167" 822.00 "AA-2168" 129,500.95 "AA-2169" 60.00 "AA-2170" 1,214,566.77 6,227.76 "AA-2231" 53.57 "AA-2232" 2,253.45 "AA-2237" 1,800.00 "AA-2238" to "AA-2239" 7,732.32 "AA-2240" 7,732.32 "AA-2241" 964.29 "AA-2242" 860.93 "AA-2243" to "AA-2249" 1,306.12 "AA-2250" to "AA-2262" 1,651.57 "AA-2263" to "AA-2276" 1,228.70 "AA-2277" to "AA-2286" 11,306.40 "AA-2287" 11,306.40 "AA-2288" 337.50 "AA-2289" to "AA-2290" 1,445.57 "AA-2291" 1,239.78 "AA-2290" to "AA-2299" 3,128.19 "AA-2300" to "AA-2306" 784.77 "AA-2307" to "AA-2309" 3,636.90 "AA-2310" to "AA-2319" 23,425.82 "AA-2320" 12,214.29 "AA-2321" to "AA-2322" 5,814.00 "AA-2."123" 8,276.79 "AA-2324" 7,060.18 "AA-2325" to "AA-2326" 10,061.86 "AA-2327" to "AA-2338" 26,045.70 "AA-2339" to "AA-2346" 822.00 "AA-2349" 5,952.00 "AA-2350" 1,127.87 "AA-2351" 3,383.60 "AA-2352" 4,246.05 "AA-2353" 61,200.00 "AA-2354" to "AA-2356" 10,967.40 "AA-2357" to "AA-2358" 2,207.69 "AA-2359" 2,917.27 "AA-2360" to "AA-2361" 2,106.35 "AA-2362" 13,027.20 "AA-2363" 2,738.65 "AA-2364" 18,088.40 "AA-2367" to "AA-2368" 4,800.00 "AA-2369" 68,284.29 "AA-2370" to "AA-2371" 3,102.94 "AA-2372" 9,898.77 "AA-2373" to "AA-2374" 99,000.00 "AA-2375" to "AA-2385" 54,519.00 "AA-2386" 2,253.46 "AA-2387" 248.04 "AA-2388" 80.36 "AA-2389" 25.39 "AA-2390" ( DECISION CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) Page 38 o£40 6110/6111/ 6035/6032 Sunfresh Laundry and Dry Cleaning Service 6026/5961 Sunfresh Laundry and Dry Cleaning Service 6028/6029 Sunfresh Laundry and Dry Cleaning Service 17034117006 Golden Arches Development Corp. 19975 Golden Arches Development Corp. 1851 Master Automated Systems, Inc. 27660 Facilities Managers, Inc. 8840 Kitaro Foods Corporation 8530 Bonzer Foods Corporation 345 Mary Grace Foods, Inc. 1726 Wholesome Foods, Inc. 9788 Philippine Pizza Corp. 11778 Accenture, Inc.

11776 Accenture, Inc.

290 Headstrong Philippines, Inc. 292 Headstrong Philippines, Inc. 11777 Accenture, Inc.

1677 EDS Electronic Data Systems (Phils), Inc. Total for the month of November 2006 262 Mary joanne L. Enverga 1692 EDS Electronic Data Systems (Phils), Inc. 1141 3D Networks 26219 Brooklyn Pizza Company, Inc. 17884 Business Process Outsourcing International, Inc. 5967 Baker Fresh Foods Philippines 19617 Corporate International Travel & Tours, Inc. 1595A Chow king Food Corporation 748322 DHL Worldwide Express 748708 DHL Worldwide Express 227 EZ Active Lifestyle Corp. 27469 Facilities Managers, Inc. 245299 Innove Communications 245472 lnnove Communications 2022151 Globe Telecom 448 Imperial Consulting, Inc. 11125 Lane Archive Technologies 2754 Lanting Security and Watchman Agency 1433697 Mandarin Oriental Manila 8029 Golden Arches Development Corp. 1486 Max's Kitchen, Inc.

1457 Max's Restaurant, Inc. 9011/9010 Neo Source Marketing Services, Inc. 27782 Oakwood Premier 2750 Pancake House, Inc.

2116 Rajah Travel Corporation 6253/6252 Sunh'esh Laundry and Dry Cleaning Service 6251/6254 Sunfresh Law1dry and Dry Cleaning Service 6260/6262 Sw1fresh Laundry and Dry Cleaning Service 21555 Searchers and Staffers Corp. 2313 Tropical Hut Food Market, Inc. 3897 The Peninsula Manila 45 WIL TIF Marketing 608 X Options, Inc.

3619 Yellow Cab Food Corporation 1683 EDS Electronic Data Systems (Phils), Inc. 1687 EDS Elech·onic Data Systems (Phils), Inc. 11777 Accenture, Inc.

Total for the month of December 2006 Total for the Fourth Quarter of CY 2006 'A1111e.r "E."

160.50 "AA-2391" 91.52 "AA-2392" 101.41 "AA-2393" 439.49 "AA-2394" 79.20 "AA-2395" 825.00 "AA-2397" 51,760.30 "AA-2398" to "AA-2400" 289.80 "AA-2401" 189.28 "AA-2402" 36.00 "AA-2403" 96.21 "AA-2404" 48.21 "AA-2405" 2,997,197.59 "AA-2407" 3,961,421.61 "AA-2408" 114,598.94 "AA-2409" to "AA-2410" 108,270.84 "AA-2411" to "AA-2412" 1, 985,809.44 "AA-2413" 510,024.72 "AA-2600" to "AA-2603" 10,260,331.97 685.22 "AA-2473" 4,052.46 "AA-2474" 2,253.46 "AA-2475" 102.86 "AA-2479" 5,700.00 "AA-2480" 209.14 "AA-2481" 99,355.18 "AA-2486" to "AA-2504" 175,07 "AA-2505" 4,954.56 "AA-2506" to "AA-2507" 24,867.16 "AA-2508" to "AA-2517" 36.21 "AA-2518" 37,605.32 "AA-2519" 23,704.06 "AA-2520" 392.39 "AA-2521" 7,086.09 "AA-2522" to "AA-2538" 1,176.00 "AA-2539" 1,985.57 "AA-2541" 35,635.71 "AA-2542" 381.22 "AA-2543" 353.57 "AA-2544" 80.35 "AA-2545" 81.65 "AA-2546" 459.67 "AA-2547" 1,294.74 "AA-2548" 204.30 "AA-2549" 1,224.67 "AA-2550" to "AA-2560" 70.98 "AA-2561" 85.07 "AA-2562" 101.79 "AA-2563" 3,130.25 "AA-2564" to "AA-2565" 55.39 "AA-2566" 7,522.33 "AA-2567" 4,052.68 "AA-2568" 8,678.57 "AA-2569" 84.11 "AA-2570" 223,951.76 "AA-2604" 44,400.00 "AA-2605" 1,990,786.41 "AA-2606" 2,536,975.97 14,011,874.71 INPUT VAT ON DOMESTIC PURCHASE OF SERVICES SUPPORTED BY BILLING STATEMENTS ONLY IN VIOLATION OF SECTION 113(A)(2) OF THE NIRC OF 1997. AS AMENDED FOR THE CALENDAR YEAR 2006 Official 1 I l Receipts No.

Supplier Input Tax Exhibit NOVEMBER - I RCBC Realty Corp.

I 1,268,377.92 I "AA-2234" to "AA-2236" TOTAL I 1,268,377.92 1 \ l AII IICX 11 F."

If

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

INPUT VAT ON DOMESTIC PURCHASE OF SERVICES SUPPORTED BY VAT OFFICIAL RECEIPTS BUT INPUT VAT IS LOWER THAN THE AMOUNT PER CLAIM FOR THE CALENDAR YEAR 2006 Official Receipts No. Supplier Input Tax Exhibit Input VAT per claim 14,088.00 Input VAT per Official Receipt 4518 Ponce Emile Reyes and Manalastas Law Offices 3,000.00 "AA-1088" Difference 11,088.00 vu Annex "G."

INPUT VAT ON DOMESTIC PURCHASE OF GOODS OTHER THAN CAPITAL GOODS SUPPORTED BY VAT INVOICES BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE NIRC OF 1997, AS AMENDED FOR THE FIRST QUARTER OF CY 2006 Invoice No.

Supplier Input Tax Exhibit JANUARY 15438 Neo Source Marketing 184.55 "AA-232" FEBRUARY 4665 Ace Hardware Philippines, Inc. 261.73 "AA-383" 4866 Ace Hardware Philippines, Inc. 173.34 "AA-384" 58873 Skylight Auto Supply 131.82 "AA-385" 319 Th01·tex Trading 163.64 "AA-386" 373 Thortex Trading 156.43 "AA-387"

2811 9

Herminio Auto Supply, Inc. 156.82 "AA-388" 233973 Domstadt Auto Supply and Gen Mdse. 200.89 "AA-389" 8226 Good Moral Mechandising 159.09 "AA-417" MARCH 5522/5523 Ace Hardware Philippines, Inc. 223.96 "AA-587" TOTAL 1,812.27 VII i A IIIICX "H."

INPUT VAT ON DOMESTIC PURCHASE OF GOODS OTHER THAN CAPITAL GOODS SUPPORTED BY VAT INVOICES BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE THE NIRC OF 1997. AS AMENDED FOR THE SECOND QUARTER OF CY 2006 Invoice No.

I Supplier 1 Input Tax I Exhibit APRIL 17327 I Manang Lumjng's (Burlington) I 38.57 I "AA-870" 17256 I Manang Lunling's (Burlington) I 204.64 1 "AA-871" MAY 3488 I Thortex Trading I 83.57 I "AA-1057" TOTAL l 326.78 J "A nnex" J."

INPUT VAT ON DOMESTIC PURCHASE OF GOODS OTHER THAN CAPITAL GOODS SUPPORTED BY VAT INVOICES BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE THE NIRC OF 1997. AS AMENDED FOR THE THIRD QUARTER OF CY 2006 Invoice No.

I Supplier I Input Tax I Exhibit JULY 44 I Tyco Information Solutions Corp. T 2,487.86 1 "AA-1394" AUGUST 103833 I Shopwise I 39.43 I "AA-1712" SEPTEMBER 291255 I National Bookstore, Inc. T 45.8o 1 "AA-1881" TOTAL l 2,573.09 I ' An 11ex "J."

INPUT VAT ON DOMESTIC PURCHASE OF GOODS OTHER THAN CAPITAL GOODS SUPPORTED BY VAT INVOICES BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE THE NIRC OF 1997. AS AMENDED FOR THE FOURTH QUARTER OF CY 2006 Invoice No.

Supplier Input Tax Exhibit OCTOBER 8336 Ace Hardware Philippines, Inc. 53.54 "AA-2171" NOVEMBER 1097 CJB Marketinv 203.57 "AA-2415" 10823 Jet Circuit Auto Center 182.14 "AA-2468" 10967 Jet Circuit Auto Center 112.50 "AA-2469" 886 Century Hard ware 201.43 "AA-2470" DECEMBER 11262 Jet Circuit Auto Center 92.14 "AA-2593" 6469087 The Landmark 222.34 "AA-2597" TOTAL 1,067.66 " Annex "K."

I I I

CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813)

INPUT VAT ON DOMESTIC PURCHASE OF GOODS SUPPORTED BY VAT INVOICE BUT THERE WAS NO AMOUNT INDICATED IN VIOLATION OF SECTION 113(B)(2) OF THE NIRC OF1997, AS AMENDED FOR THE

CALENDAR YEAR 2006

Invoice No.

I Supplier I Input Tax I Exhibit JUNE 27383 [ JJED Philippines, Inc. I 6,023.04 I "AA-1201" to "AA-1202" TOTAL I 6,o23.o4 L