Read-Rite Philippines, Inc. v. Commissioner of Internal Revenue

[C.T.A. CASE NO. 5659. September 29, 2000.] READ-RITE PHILIPPINES, INC. (Formerly SUNWARD TECHNOLOGIES PHILS., INC. , petitioner , vs . COMMISSIONER OF INTERNAL REVENUE , respondent . D E C I S I O N This Petition for Review is seeking for the refund or issuance of a tax credit certificate in the amount of P17,977,046.52 1 , representing unutilized input value-added tax (VAT, for brevity) attributable to zero-rated sales of manufacturing services for the period January 1, 1996 to December 31, 1996, pursuant to the provisions of Section 106(a) of the 1996 Tax Code, as amended. ECcaDT The facts of the case can be briefly stated as follows: Petitioner is a domestic corporation duly organized and existing under the laws of the Philippines with principal office at KM 19, West Service Road, South Superhighway, Paraaque, Metro Manila. It is engaged in the business of manufacturing magnetic recording heads, tape heads and other electronic products. It is an ecozone export enterprise registered with the Philippine Export Processing Zone Authority (PEZA) pursuant to the provisions of Republic Act 7916 with Amendment Certificate of Registration No. 94-60, dated March 5, 1997 (Exhs. D, D-1 and D-2). It is likewise registered with the Bureau of Internal Revenue as a VAT entity with Certificate of Registration RDO Control No. 97-560-000158, dated February 26, 1997 (Exh. C). Its former name is Sunward Technologies (Phils.), Inc. (Exhs. A and A-1). For the period January 1, 1996 to December 31, 1996, Petitioner religiously filed its Monthly VAT Declarations and Quarterly Value-Added Tax Returns (Exhs. G to R, inclusive of submarkings) 2 . As of December 31, 1996, the accumulated input taxes of Petitioner per its amended fourth quarter VAT return amounted to P24,658,873.14. Out of the aforesaid amount, Petitioner alleged that the sum of P22,380,640.70 pertains to payments of input VAT directly attributable to its zero-rated sales of services. Consequently, for the period January 1, 1996 to December 31; 1996, Petitioner claimed that it has a total zero-rated sales of services in the amount of P1,172,230,966.06 arising from a Manufacturing Services Agreement entered into Between Petitioner and Read-Rite International, a Cayman Islands corporation with principal offices located at P.O. Box 309, Grand Cayman, Cayman Islands, British West Indies (Exhs. PP to PP-6). The aforementioned sales were paid for in US dollars inwardly remitted to the Philippines in accordance with the rules and regulations of Bangko Sentral ng Pilipinas. On December 29, 1997, believing that it is entitled to the refund of input taxes attributable to its zero-rated sales of services, Petitioner filed with the Revenue District No. 52, Bureau of Internal Revenue, an Application for Tax Credit/Refund of Value-Added Tax Paid together with a letter forwarding various documents in support of its claim for refund in accordance with Section 106(a) [now 112(a)] of the Tax Code, as amended (Exhs. E, E-1, F. and F-1). On July 10, 1998, after waiting for more than sixty (60) days for the Respondent to act on the aforesaid application 3 , Petitioner was constrained to file the instant Petition for Review in order to toll the running of the two-year prescriptive period under the law. In his Answer, Respondent raised the following Special and Affirmative defenses: 6. Petitioner's claim for refund is still undergoing administrative routinary investigation/examination by respondent's Bureau; 7. Petitioner miserably failed to demonstrate that the tax subject of the case at bar was erroneously or illegally collected; 8. Taxes paid and collected are presumed to have been made in accordance with law and regulations, hence, not refundable; 9. In an action for tax refund/credit, the burden of proof is on the taxpayer to establish its right to refund and failure to adduce sufficient proof is fatal to the action for tax refund/credit; 10. It is incumbent upon the petitioner to show that it has complied with the provisions of Section 204 in relation to Section 229 of the Tax Code, as amended; 11. Claims for refund are construed strictly against claimant for the same partakes the nature of exemption from taxation ( Commissioner of Internal Revenue vs. Ledesma , G . R . No . L-13509, January 30, 1970, 31 SCRA 95 ) and such, they are looked upon with disfavor ( Western Minolco Corp. vs. Commissioner of Internal Revenue , 124 SCRA 121); 12. Moreover, the claim for refund for taxes paid prior to July 10, 1996 are already barred by prescription pursuant to Section 230 of the Tax Code (now Section 220, Tax Reform Act of 1997) . . . To support its claim for refund, Petitioner presented the following documentary exhibits: 1. SEC Certificate of Filing of Amended Articles of Incorporation dated January 2, 1997 (Exhs. A and A-1); 2. Application for Cancellation of Registration and BIR Certificate of Registration (Exhs. B. and C); 3. PEZA Amendment Certificate of Registration (Exhs. D, D-1, and D-2); 4. A letter and Application for Tax Credits/Refunds of VAT Paid (Exhs. D and E); 5. The original and amended monthly VAT declarations and quarterly VAT returns for the period January 1, 1996 to December 31, 1997 (Exhs. G to LL, inclusive of submarkings); 6. Certificates of inward remittances (Exhs. MM and NN); 7. Certification from Department of Finance that no similar application for tax credit and duty drawback was filed covering the period January 1, 1996 to December 31, 1996 (Exh. OO); 8. Manufacturing Services Agreement between Petitioner and Read-Rite International (Exhs. PP to PP-6); 9. Petitioner's summary and schedule of export sales and input VAT paid for the calendar year 1996 (Exhs. SS, UU, GGG, and HHH); 10. Schedules of exceptions of input taxes for the year 1996 (Exhs. YY, ZZ, CCC, DDD, III, JJJ, KKK, MMM, NNN, and NNN-1); 11. Various photocopies of suppliers' sales invoices and official receipts supporting Petitioner's claimed input taxes and Petitioner's zero-rated sales invoices for the year 1996 (Exhs. EEE to EEE-7000 and OOO to OOO-38); 12. Photocopies of FEBTC and UCPB passbooks reflecting inward remittances for the account of Petitioner (Exhs. PPP to ZZZ); STIEHc 13. Certification issued by Punongbayan and Araullo regarding the claimed input taxes of Petitioner (Exhs. FFF to FFF-3); and 14. Petitioner's former VAT Registration Certificate (Exh. AAAA) This case was submitted for decision on July 20, 2000 sans the evidence of the Respondent. The issues to be resolved in the instant case are as follows: 1. Whether or not Petitioner was able to comply with the provisions of Section 204 in relation to Sections 229 and 230 of the Tax Code, as amended, in filing the present appeal with this Court; and 2. Whether or not Petitioner is entitled to a refund/credit in the amount of P17,977,046.52 allegedly representing input VAT on purchases of taxable goods and services pursuant to Section 106(a) of the Tax Code, as amended. Anent the first issue, the counting of the two-year prescriptive period in claiming for the refund/credit of input taxes is reckoned from the date of filing of the quarterly VAT return ( Nichimen Corporation Philippine Branch vs. Commissioner of Internal Revenue, CTA Case No. 5384, August 18, 1998 ; and Hopewell Power (Philippines) Corp. vs. Commissioner of Internal Revenue, CTA Case No. 5389, January 4, 1999 ). In a Resolution entitled Atlas Consolidated Mining and Development Corporation vs . Commissioner of Internal Revenue, CTA Case No . 5296 , dated July 20, 1998 , this Court ruled on the foregoing issue in this manner: (T)he two-year period should be counted from the date of filing of the corresponding VAT quarterly return which is within twenty (20) days after the close of each taxable quarter. This will harmonize Section 106 with Section 230 of the Tax Code which was interpreted by the Supreme Court in the cases of Commissioner of Internal Revenue vs . TMX Sales Inc . and the Court of Appeals, G . R . No . 83736, dated January 15, 1992 ; and ACCRA Investments Corporation vs . Commissioner of Internal Revenue, 204 SCRA 957 , that the two (2) year period should be counted from the filing of the final income tax return, because it is only during that date that the exact tax liability or refundability of tax can be determined. In the same manner, it is only after the filing of the quarterly VAT return that we can determine the VAT liability or refundability of VAT. It should be noted that the basic requirement is that VAT refunds can only be granted to the extent that the input taxes have not been applied against output tax. All these things can only be determined if a return is filed. It is logical therefore, to conclude that the two-year period should not immediately be counted from the close of the quarter but from the date of filing of the VAT return. Based on the aforequoted rule, the herein Petitioner is barred from claiming the refund/credit of input taxes attributable to its zero-rated sales of services for the first quarter of 1996 considering that the 1996 first quarterly VAT return was filed on April 25, 1996 while the Petition for Review was filed only on July 10, 1998 . In sum, the following input taxes in the amount of P5,471,317.22 can no longer be the subject of a claim for refund due to prescription: Amount Indicated In The Month Exh. Schedule of Input VAT Paid January 1996 AA-1 P1,584,666.78 February 1996 BB 1,968,062.10 March 1996 CC 1,918,588.34 Total P5,471,317.22 =========== The remaining three calendar quarters of the claim, are well within the two-year prescriptive period, hence the claim for refund corresponding to said period may be decided on the merits. We now proceed to the second issue at bar. Section 106(a) of the Tax Code provides: SEC. 106. Refunds or tax credits of creditable input tax . (a) 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 100(a)2(A)(i), (ii) and (b) Section 102(b)(1) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the regulations of the Bangko Sentral ng Pilipinas (BSP): Provided, further , That where the taxpayer is engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt sale of goods or properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales. DCcIaE Based on the above proviso, Petitioner should prove that (1) it is a VAT registered person; (2) its sales are zero-rated; (3) the administrative claim for refund is seasonably filed; (4) the input taxes claimed were attributable to zero-rated sales and were not applied against the output tax liability; and (5) foreign currency exchange proceeds had been duly accounted for in accordance with the regulations of Bangko Sentral ng Pilipinas. A circumspect study of the records of the case together with the pleadings and evidence at hand, reveals that Petitioner satisfactorily complied with the above requisites. It was established that Petitioner is a VAT registered person as evidenced by the Certificate of Registration RDO Control No. 97-560-0000158 issued by RDO No. 56 of the Bureau of Internal Revenue (Exh. C). Petitioner's sales of services derived from Management Services Agreement with Read-Rite International were subject to VAT at zero percent pursuant to Section 102(b)(1) of the Tax Code, as amended (Exhs. PP to PP-6, and OOO to OOO-38). It is also clear that the administrative claim for refund which was filed on December 29, 1997, was seasonably filed within two years from the close of each VAT taxable quarter of the year 1996 (Exhs. E and F). The input taxes claimed were attributable to such sales of manufacturing services and were not applied against any output tax liability. Furthermore, the input taxes for the year 1996 were no longer carried over to the year 1997 as evidenced by the 1997 amended first quarterly VAT return of Petitioner (Exh. W). Lastly, Petitioner was able to prove that foreign currency exchange proceeds in the respective amounts of US$24,943,114.00 and US$14,164,929.87, representing export inward remittances were credited to Petitioner's foreign currency savings accounts as certified by Far East Bank and Trust Company and United Coconut Planters Bank (see TSN, February 8, 1999, pp. 57 to 60; Exhs. NN, MM, FFF, and PPP to ZZZ). What is now left for the Petitioner to prove is the substantiation of input taxes claimed for VAT refund/credit pulses. Due to the voluminous nature of the evidence to be presented, Petitioner availed of the services of an independent Certified Public Accountant pursuant to CTA Circular No. 1-95, as amended in the person of Ms. Dalisay B. Duque, Audit Partner of Punongbayan and Araullo, who was commissioned to examine and verify various receipts and invoices and other long accounts supporting Petitioner's claimed input taxes (TSN, September 29, 1998, pp. 2 to 5). A report by said independent auditor, dated August 9, 1999, was presented describing among others, the audit procedures performed with the conclusion that out of the total input taxes of P24,719,292.43 as shown in the Schedule of Purchases and Input VAT Paid (Exhs. HHH), only the sum of P17,977,046.52 was properly supported by valid suppliers' invoices and/or official receipts (FFF and FFF-3). A further verification of the report of the independent CPA together with the evidence presented by Petitioner resulted to additional disallowances in the total amount, of P4,090,970.01, which were not considered in the report, broken down as follows: 4 REMARKS AMOUNT 1. Invoices and/or official receipts with dates prior to April 1996 considered prescribed but still included in April schedule of input taxes P227,693.97 2. Invoices and/or official receipts with typewritten TIN "V"/"VAT" 9,756.36 3. Invoices and/or official receipts without printers' BIR permit 15,293.63 4. Invoices and/or official receipts without TIN "V"/"VAT" 53,720.58 5. Non-VAT invoices and/or official receipts 154,360.26 6. Without invoices and/or official receipts 2,995,941.55 7. Without invoices and/or official receipts and supported by invalid documents such as provisional receipts, statement of accounts, check vouchers, request for payment 634,203.65 TOTAL P4,090,970.00 =========== Respondent, in his Memorandum, argues that under Section 24 of RA 7916, otherwise known as "The Special Economic Zone Act", Petitioner being an ecozone export enterprise and registered with the PEZA is exempt from the value-added tax. Section 24 of RA 7916 is hereinbelow quoted, thus: SEC. 24. Exemption from Taxes Under the National Internal Revenue Code . Any provision of existing laws, rules and regulations to the contrary notwithstanding, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE. In lieu of paying taxes, five percent (5%) of the gross income earned by all businesses and enterprises within the ECOZONE shall be remitted to the national government . . ." Respondent contends that since Petitioner is exempt from VAT, it is therefore engaged in non-VAT taxable business, hence, its sales cannot be considered zero-rated for VAT purposes. Furthermore, Respondent avers that under Section 106 of the Tax Code, only VAT registered persons are entitled to the refund of creditable input VAT. DHSCTI We agree with the Respondent that if an entity is registered with PEZA as an ecozone enterprise and is remitting 5% of its gross income to the national government, it is exempt from the payment of VAT. However, no evidence was introduced by the Respondent to prove that Petitioner is remitting 5% final tax to the government. What is evident from the records is that Petitioner is a VAT registered entity liable to pay the value-added tax as shown by the registration certificate issued by Respondent's respective Revenue District Officers, Mr. Domingo M. Morales, RDO No. 34, Paraaque; and Ms. Rosemarie Ramos-Ragasa, RDO No. 56, Calamba, Laguna (Exhs. AAA and C). This Court would like to stress that under Section 23 of Republic Act No. 7916, two different fiscal incentives are granted to an ecozone enterprise, to wit: SEC. 23. Fiscal Incentives . Business establishments operating within the ECOZONE shall be entitled to the fiscal incentives as provided for under the Presidential Decree No. 66, the law creating the Export Processing Zone Authority, or those provided for under Book VI of Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987. Based on the aforequoted Section 23 of RA 7916, a PEZA registered enterprise has the option to choose between two sets of fiscal incentives. One is that which is provided for under Presidential Decree No. 66, as amended, and Section 24 of RA 7916 which includes the 5% preferential tax on gross income earned which is in lieu of national and local taxes; and second, as those provided for under Book VI of Executive Order No. 226, including but not limited to an income tax holiday (ITH) of 4 to 6 years depending on whether or not an entity is registered as a pioneer or non-pioneer enterprise. If an ecozone enterprise chooses the 5% preferential tax, it is exempt from payment of all national and local taxes. However, if an ecozone enterprise chooses the income tax holiday, it is only exempt from payment of the income tax but still subject to other national internal revenue taxes including the value-added tax. The difference between these 2 sets of fiscal incentives were explained by the Bureau of Internal Revenue in VAT Ruling Nos. 037-98; 043-98; 027-99; and 063-99. The records of the case leads Us to conclude that Petitioner availed of the fiscal incentives under Executive Order No. 226 in view of the fact that Respondent's respective Revenue District Officers had issued VAT Registration Certificates to Petitioner thereby making Petitioner liable to pay value-added tax. In the absence of convincing proof from the Respondent that Petitioner is exempt from the payment of VAT because it was paying the 5% preferential tax, We are inclined to grant Petitioner's prayer for tax credit/refund of input taxes claimed but in a reduced amount of P9,755,460.53, computed as follows: Total amount per Schedule of Purchases and Input VAT Paid (Exh. HHH) P24,719,292.43 Less: Disallowances 1. Prescribed input taxes P5,471,317.22 2. Exceptions noted by independent CPA 5,401,544.68 5 3. Court's exceptions 4,090,970.00 14,963,831.90 Total Input VAT supported and verified P9,755,460.53 =========== WHEREFORE, in view of the foregoing, the Petition for Review is hereby partially GRANTED. Respondent is ORDERED to REFUND OR ISSUE A TAX CREDIT CERTIFICATE in the amount of P9,755,460.53 in favor of Petitioner. SO ORDERED. (SGD.) ERNESTO D. ACOSTA Presiding Judge WE CONCUR: (SGD.) RAMON O. DE VEYRA Associate Judge (SGD.) AMANCIO Q. SAGA Associate Judge ANNEX A Schedule of Disallowances 1) Invoices and/or Official Receipts with dates prior to April 1996 (Prescribed) which are included in April schedule. Input Tax Supplier 1996 Exh. Amount Claimed ATLANTIC MERCANTILE Mar-96 EEE-2016 P918.01 P83.46 ATLANTIC MERCANTILE Mar-96 EEE-2017 8,970.01 815.46 AVEC PHARMACEUTICAL PHILS., INC. Mar-96 EEE-2018 24,300.00 2,209.09 COMMUNITY COMMERCIAL Mar-96 EEE-2408 20,519.50 1,865.41 COMMUNITY COMMERCIAL Mar-96 EEE-2407 19,728.30 1,793.48 DSL TRADING Mar-96 EEE-2076 10,940.00 994.55 DUMBO MARKETING Mar-96 EEE-2113 12,300.00 1,118.18 DUMBO MARKETING Mar-96 EEE-2118 8,366.11 760.56 DUMBO MARKETING Mar-96 EEE-2115 2,830.00 257.27 DUMBO MARKETING Mar-96 EEE-2114 25,200.00 2,290.91 DUMBO MARKETING Mar-96 EEE-2116 10,980.00 998.18 DUMBO MARKETING Mar-96 EEE-2113 1,905.00 173.18 DUMBO MARKETING Mar-96 EEE-2123 3,390.00, 308.18 DUMBO MARKETING Mar-96 EEE-2125 1,820.01 165.46 DUMBO MARKETING Mar-96 EEE-2129 30,800.00 2,800.00 DUMBO MARKETING Mar-96 EEE-2127 491.00 44.64 DUMBO MARKETING Mar-96 EEE-2145 230.00 20.91 DUMBO MARKETING Mar-96 EEE-2128 14,400.00 1,309.09 DUMBO MARKETING Mar-96 EEE-2126 75,600.00 6,872.73 DUMBO MARKETING Mar-96 EEE-2124 400.00 36.36 DUMBO MARKETING Mar-96 EEE-2122 5,164.01 469.46 DUMBO MARKETING Mar-96 EEE-2121 4,150.00 377.27 DUMBO MARKETING Mar-96 EEE-2132 1,950.00 177.27 DUMBO MARKETING Mar-96 EEE-2119 1,500.00 136.36 DUMBO MARKETING Feb-96 EEE-2130 3,950.00 359.09 DUMBO MARKETING Mar-96 EEE-2146 7,350.00 668.18 DUMBO MARKETING Mar-96 EEE-2144 885.01 80.46 DUMBO MARKETING Mar-96 EEE-2120 4,350.01 395.46 DUMBO MARKETING Dec-95 EEE-2136 10,390.00 944.55 DUMBO MARKETING Dec-95 EEE-2135 20,597.01 1,872.46 DUMBO MARKETING Feb-96 EEE-2138 1,782.99 162.09 DUMBO MARKETING Feb-96 EEE-2133 35,200.00 3,200.00 DUMBO MARKETING Dec-95 EEE-2137 6,600.00 600.00 DUMBO MARKETING Dec-95 EEE-2134 27,370.99 2,488.27 DUMBO MARKETING Mar-96 EEE-2139 49,980.00 4,543.64 ECOLAB PHILIPPINES, INC. Mar-96 EEE-2412 103,960.00 9,450.91 FAR EAST MILLS SUPPLY CORP. Mar-96 EEE-2414 31,722.00 2,883.82 FAR EAST MILLS SUPPLY CORP. Feb-96 EEE-2415 13,770.90 1,251.90 GENMM COMPUTER SOLUTION, INC. Mar 96 EEE-2193 134,000.00 12,181.82 H.J. FRANKLIN, INC. Mar-96 EEE-2194 2,002,00 182.00 H.J. FRANKLIN, INC. Jan-96 EEE-2524 662.00 60.18 JENCOR MACHINE FABRIK CORP. Mar-96 EEE-2200 3,500.00 318.18 JENCOR MACHINE FABRIK CORP. Mar-96 EEE-2201 2,790.00 253.64 JPS ADVANCED SEMICONDUCTOR TECH. Mar-96 EEE-2207 45,630.00 4,148.18 JANEAU INDUSTRIAL CORP. Mar-96 EEE-2211 2,850.00 259.09 LABWARE RESOURCES Mar-96 EEE-2222 5,600.00 509.09 MAJORIE MARKETING Mar-96 EEE-2253 353.00 32.09 MAJORIE MARKETING Mar-96 EEE-2254 21,120.00 1,920.00 MAJORIE MARKETING Mar-96 EEE-2252 2,172.01 197.46 MALABANAN EBOY EXCAVATOR Mar-96 EEE-2263 13,800.05 1,254.55 MALABANAN EBOY EXCAVATOR Mar-96 EEE-2262 16,300.00 1,481.82 MENCOR CONSTRUCTION Nov-95 EEE-2271 7,268.78 660.80 MICRO SEARCH RESOURCE CORP. Mar-96 EEE-2275 110,042.06 10,003.82 MILLERS HARDWARE 8 INDUSTRIAL Mar-96 EEE-2420 2,137.91 194.36 MILLERS HARDWARE & INDUSTRIAL Mar-96 EEE-2426 14,992.20 1,362.93 MILLERS HARDWARE & INDUSTRIAL Mar-96 EEE-2284 550.00 50.00 NAV TRADING CORPORATION Mar-96 EEE-2305 14,630.00 1,330.00 NAV TRADING CORPORATION Mar-96 EEE-2306 3,300.00 300.00 NEW TROYD ENTERPRISE Mar-96 EEE-2313 11,040.00 1,003.64 PHILCOPY CORPORATION Mar-96 EEE-2333 133,348.77 12,122.62 PHILCOPY CORPORATION Mar-96 EEE-2334 77,750.00 7,068.18 QUICK PACK PHILIPPINES, INC. Mar-96 EEE-2438 5,700.00 518.18 QUICK PACK PHILIPPINES, INC. Mar-96 EEE-2437 57,000.00 5,181.82 QUICK PACK PHILIPPINES, INC. Mar-96 EEE-2353 22,800.00 2,072.73 QUICK PACK PHILIPPINES, INC. Mar-96 EEE-2354 260,000.00 23,636.36 RADIONET, INC. Dec-95 EEE-2356 1,237.50 112.50 RENTOKIL Jan-96 EEE-2443 9,900.00 900.00 RUDOLF LIETZ, INC. Mar-96 EEE-2367 2,957.35 268.85 RUDOLF LIETZ, INC. Mar-96 EEE-2368 2,957.35 268.85 R.R.G.K. MARKETING Mar-96 EEE-2369 8,800.00 800.00 R.V. STEEL MANUFACTURER Mar-96 EEE-2370 11,565.00 1,051.36 SEITOSHO SYSTEMS, INCORPORATION Mar-96 EEE-2375 395,000.00 35,909.09 SQUARE DEAL ELECTRICAL EQUIPMENT Mar-96 EEE-2380 2,498.00 227.09 SYSTEMNOMICS PHILS., INC. Mar-96 EEE-2450 7,500.00 681.82 SYSTEMS INDUSTRIAL BUILDERS & DEV. Feb-96 EEE-2382 126,626.50 11,511.50 SYSTEMS INDUSTRIAL BUILDERS & DEV. Mar-96 EEE-2381 105,000.01 9,545.46 THE CULINARY EXCHANGE, INC. Jan-96 EEE-2383 2,113.00 192.09 THE CULINARY EXCHANGE, INC. Jan-96 EEE-2385 1,743.85 158.53 TRANS DIESEL POWER CORP. Feb-96 EEE-2386 250,635.00 22,785.00 Sub-Total P2,504,633.20 P227,785.97 ============ ========== 2) Invoices &/or official receipts with typewritten TIN "\/'/"VAT" Input Tax Supplier 1996 Exh. Amount Claimed MC ANDILLES DRUG Dec-96 EEE-6761 P107,320.00 P9,756.38 3) Invoices &/or official receipts without printer's BIR permit Input Tax Supplier 1996 Exh. Amount Claimed SUPPORT GROUP, INC. Jul-96 EEE-4759 P4,900.01 445.46 SUPPORT GROUP, INC. Jul-96 EEE-4760 7,350.00 668.18 SUPPORT GROUP, INC. Aug-96 EEE-5169 4,900.00 446.46 F.S COOL AIRE MARKETING, INC. Sep-96 EEE-5422 6,000.00 545.46 F.S. COOLAIRE MARKETING, INC. Sep-96 EEE-5423 9,500.00 863.64 F.S. COOL AIRE MARKETING, INC. Sep-86 EEE-5424 46,330.00 4,211.82 SUPPORT GROUP, INC. Sep-96 EEE-5507/08 5,250.00 477.27 SUPPORT GROUP, INC. Sep-96 EEE-5509 5,250.00 477.27 SUPPORT GROUP, INC. Sep-96 EEE-5510 17,500.00 1,590.91 SUPPORT GROUP, INC. Sep-96 EEE-5511 17,500.00 1,590.91 SUPPORT GROUP, INC. Nov-96 EEE-6173 8,750.00 795.45 SUPPORT GROUP, INC. Nov-96 EEE-6174 35,000.00 3,181.82 Sub-Total P168,230.01 P15,293.63 ============ ========== 4) Invoices &/or official receipts without TIN "V"/"VAT" Input Tax Supplier 1996 Exh. Amount Claimed UPS (JED) PHILIPPINES, INC. Jul-96 EEE-4690 5,502.11 500.19 UHEMA PHILS., INC. Jul-96 EEE-4761 2,700.01 245.46 MANUFACTURERS MARKET INTEREST Aug-96 EEE-5136 6,184.20 562.20 UHEMA PHILS., INC. Aug-96 EEE-5161 12,265.00 1,115.00 TECHNICOM ELECTRONICS TRADING Sep-96 EEE-5512 400,400.00 36,400.00 RAPID RADIO COMMUNICATION Oct-96 EEE-6009 16,000.00 1,454.55 C. E. CONTRANS Dec-96 EEE-6652 122,300.00 11,118.18 PULSE SYSTEM ENTERPRISES Dec-96 EEE-6806 25,575.00 2,325.00 Sub-Total P590,926.32 P53,720.58 ============ ========== 5) Non-vat invoices &/or official receipts Input Tax Supplier 1996 Exh. Amount Claimed R.R.G.K. MARKETING Apr-96 EEE-2444 P7,200.05 P654.55 LIBERTY BROADCASTING NETWORK, INC. Jul-96 EEE-4662 16,500.00 1,500.00 BONJAN PRESS PHILIPPINES Jul-96 EEE-4833 6,489.00 589.91 BONJAN PRESS PHILIPPINES Jul-96 EEE-4834 4,248.00 386.18 BONJAN PRESS PHILIPPINES Jul-96 EEE-4835 8,241.75 749.25 PORTRAITS & MOTIONS Jul-96 EEE-4979 1,800.00 163.64 MICRO SEARCH RESOURCES CORP. Aug-96 EEE-5010 137,638.90 12,512.63 MICRO SEARCH RESOURCES CORP. Aug-96 EEE-5011 118,957.80 10,814,35 MICRO SEARCH RESOURCES CORP. Aug-96 EEE-5012 190,782.63 17,343.00 D. R. ZARAGOSA MACHINE SHOP Aug-96 EEE-5036 9,750.00 886.36 BONJAN PRESS PHILIPPINES Aug-96 EEE-5117 3,608.00 328.00 LIBERTY BROADCASTING NETWORK, INC. Aug-96 EEE-5186 16,500.00 1,500.00 MANUFACTURERS MARKET INTEREST Sep-96 EEE-5465 1,573.00 143.00 MANUFACTURERS MARKET INTEREST Sep-96 EEE-5466 6,184.20 562.20 EASTERN TELECOMS Oct-96 EEE-5707 458,937.60 41,721.60 EASTERN TELECOMS Oct-96 EEE-5708 709,561.63 64,505.60 Sub-Total P1,697,972.56 P154,360.26 ============ =========== 6) Without invoices &/or official receipts Input Tax Supplier 1996 Exh. Amount Claimed ATLANTIC MERCANTILE Apr-96 2,955.00 268.64 A.R. LAPWOODS MULTI-RESOURCES, INC. Apr-96 38,208.01 3,473.46 A.R. LAPWOODS MULTI-RESOURCES, INC. Apr-96 46,614.00 4,237.64 CONSTELLATION AUTO REPAIR SHOP Apr-96 36,465.00 3,315.00 COURIERS WORLDWIDE EXPRESS Apr-96 33,210.58 3,019.14 D.R. ZARAGOSA MARKETING Apr-96 5,000.00 454.56 D.R. ZARAGOSA MARKETING Apr-96 3,750.00 340.91 D.R. ZARAGOSA MARKETING Apr-96 12,500.00 1,136.36 MICRO SEARCH RESOURCE Apr-96 90,209.86 8,200.90 MICRO SEARCH RESOURCE Apr-96 87,476.22 7,952.38 MICRO WATER SUPPLY Apr-96 68,076.00 6,188.73 MICRO WATER SUPPLY Apr-96 68,695.99 8,245.09 MILLION SUCCESS BUSINESS PRODUCTS Apr-96 10,550.00 959.09 PERF REALTY CORPORATION Apr-96 215,251.98 19,568.36 PHILAM LIFE INSURANCE COMPANY Apr-96 1,195,347.23 108,667.93 PHILAM LIFE INSURANCE COMPANY Apr-96 4,559,872.46 414,533.86 PHILAM LIFE INSURANCE COMPANY Apr-96 1,195,347.25 108,667.93 RTR SPRAY NOZZLE TECHNOLOGY Apr-96 7,700.00 700.00 T.R. DE JESUS CONSTRUCTION Apr-96 45,450.15 4,131.83 ATLANTIC MERCANTILE May-96 150.00 13.64 ATLANTIC MERCANTILE May-96 895.00 81.36 CARMELRAY DEVELOPMENT May-96 146,975.56 28,870.20 CARMELRAY DEVELOPMENT May-96 146,975.56 28,870.20 CJL CREATION May-96 4,500.00 409.09 CJL CREATION May-96 7,000.00 636.36 COURIERS WORLDWIDE EXPRESS May-96 28,376.43 2,579.68 ERA TRADING May-96 25,000.00 2,272.73 EASTERN TELECOMMUNICATION May-96 561,775.50 51,070.50 ESCOTECH MICRO PHILIPPINES May-96 32,200.00 2,927.27 GOLDTOWN IMPORT PHILS. May-96 8,112.00 737.45 GOLDTOWN IMPORT PHILS. May-96 32,868.00 2,988.00 INTEGRATED HYDRO-PNEUMA May-96 1,584.00 144.00 JAM SHUTTLE SERVICE, INC. May-96 752,372.50 68,397.50 JAM SHUTTLE SERVICE, INC. May-96 1,027,537.50 93,412.50 LEE DESIGNS INDUSTRIES May-96 47,800.00 1,015.64 LEP INTERNATIONAL PHILS. INC. May-96 58,351.85 409.78 MICRO SEARCH RESOURCE May-96 73,705.98 6,700.54 MICRO SEARCH RESOURCE May-96 108,004.25 9,818.57 MICRO SEARCH RESOURCE May-96 83,748.54 7,613.50 MICRO WATER SUPPLY May-96 73,408.00 6,673.45 SPATIAL DESIGN CONCEPTS, INC. May-96 513,000.00 46,636.36 ALEJA INDUSTRIES, INC. Jun-96 35,550.00 3,231.82 ATLANTIC MERCANTILE Jun-96 14,874.75 1,352.25 ATLANTIC MERCANTILE Jun-96 2,532.00 230.18 GEOSPHERE TECHNOLOGIES, INC. Jun-96 13,500.00 1,227.27 GLOBE TELECOM GMCR, INC. Jun-96 1,760.00 160.00 LABWARE RESOURCES Jun-96 39,200.00 3,563.64 LABWARE RESOURCES Jun-96 6,500.00 590.91 LABWARE RESOURCES Jun-96 1,600.01 145.46 LEP INTERNATIONAL PHILS. INC. Jun-96 57,845.27 5,258.66 MANUFACTURERS MARKET Jun-96 6,470.13 588.19 MICRO WATER SUPPLY Jun-96 111,972.00 10,179.27 MICRO WATER SUPPLY Jun-96 106,144.01 9,649.46 SC JOHNSON Jun-96 15,963.20 1,451.20 SINOFIL PHILIPPINES Jun-96 15,000.00 1,363.64 3J METAL INDUSTRIES Jul-96 6,872.72 3,463.36 ABENSON, INC. Jul-96 990.00 90.00 ABENSON, INC. Jul-96 9,170.00 833.84 EDISY TRADING Jul-96 5,517.00 501.55 PILTEL Aug-96 13,813.37 682.55 PILTEL Aug-96 2,703.62 130.67 PILTEL Aug-96 15,011.05 491.77 PILTEL Aug-96 25,338.04 121.75 PILTEL Aug-96 11,701.15 1,196.20 PILTEL Aug-96 7,890.75 717.00 PILTEL Aug-96 5,974.65 543.15 A.M. ENGINEERING Aug-96 1,950.00 177.27 EASY CALL COMM. PHILS., INC. Aug-96 324.50 29.50 EASY CALL COMM. PHILS., INC. Aug-96 324.50 29.50 EXTELCOM DIGITAL Aug-96 6,900.42 627.31 EXTELCOM DIGITAL Aug-96 5,926.45 538.77 PHILAM LIFE INSURANCE COMPANY Aug-96 1,210,894.10 110,063.10 EASY CALL Sep-96 5,692.50 517.50 SANDECO RENT-A-CAR Sep-96 13,200.00 1,200.00 SHANGRILA HOTEL Sep-96 46,763.39 4,251.22 3J METAL INDUSTRIES Oct-96 70,000.00 6,363.64 ATLANTIC MERCANTILE Oct-96 1,681.00 152.82 ATLANTIC MERCANTILE Oct-96 125.00 11.36 AVL DESIGN PRINTS Oct-96 490.00 44.55 DATA SPHERE PHILS., INC. Oct-96 553,800.00 50,345.45 DATA SPHERE PHILS., INC. Oct-96 36,031.60 3,275.60 DIENAMIKTOOL Oct-96 7,200.00 654.55 DUMBO MARKETING Oct-96 107,095.00 9,735.91 EDVICSON TRADING & GEN. MDSE Oct-96 19,745.00 1,795.00 ENVRIO CHEM MARKETING Oct-96 32,580.00 2,961.82 ESCOTECH MICRO PHILS. Oct-96 4,250.00 386.36 FINANCIAL BUILDING CORP. Oct-96 7,656,000.00 696,000.00 FINANCIAL BUILDING CORP. Oct-96 7,656,000.00 696,000.00 GO TONG ELECTRICAL SUPPLY Oct-96 204,997.38 18,636.13 GOLDTOWN IMPORT PHILS. Oct-96 9,300.00 845.45 MICRO WATER SUPPLY Oct-96 19,840.00 1,803.64 MICRO WATER SUPPLY Oct-96 39,804.00 3,618.55 MICRO WATER SUPPLY Oct-96 47,864.00 4,351.27 MICRO WATER SUPPLY Oct-96 49,724.00 4,520.36 MICRO WATER SUPPLY Oct-96 45,532.00 3,866.55 MICRO WATER SUPPLY Oct-96 42,160.00 3,832.73 MICRO WATER SUPPLY Oct-96 46,004.00 4,182.18 MILLION SUCCESS BUSINESS Oct-96 5,400.00 490.91 MILLION SUCCESS BUSINESS Oct-96 8,500.00 772.73 THE CULINARY EXCHANGE INC. Oct-96 4,284.00 389.45 THE CULINARY EXCHANGE INC. Oct-96 2,142.00 194.73 THE PHILAMLIFE INSURANCE CO. Oct-96 1,210,694.10 110,063.10 TONE GUIDE PRESS, INC. Oct-96 21,498.75 1,954.43 TR DE JESUS CONSTRUCTION Oct-96 21,700.00 1,972.73 VIRA TRADING Oct-96 6,500.00 590.91 ANN'S PRINT CORP. Nov-96 2,905.12 264.10 CONSTELLATION AUTO REPAIR Nov-96 18,867.00 142.00 CONSTELLATION AUTO REPAIR Nov-96 16,637.50 228.00 ELECTROBYTE Nov-96 143,600.00 13,054.55 ERA TRADING Nov-96 3,500.00 318.18 GLOBE TELECOM Nov-96 8,769.31 797.20 GLOBE TELECOM Nov-96 4,572.10 415.65 GLOBE TELECOM Nov-96 6,965.72 633.26 GLOBE TELECOM Nov-96 5,029.17 457.20 INPAC PACKAGING CORP. Nov-96 192,058.63 17,459.88 LEP INT'L PHILS. INC. Nov-96 25,053.98 1,974.20 LIBERTY BROADCASTING NETWORK INC. Nov-96 16,500.00 1,500.00 OKASAKI INDUSTRIAL CORP. Nov-96 11,832.48 1,075.68 PERF REALTY CORP. Nov-96 218,538.47 19,867.13 PILTEL Nov-96 10,945.91 995.08 PLDT Nov-96 86,326.81 7,847.89 TECHNICOM ELECTRONICS Nov-96 283,300.00 25,754.55 ATLANTIC MERCANTILE Dec-96 8,850.00 804.55 LEOPARD INTEGRATED SERVICES Dec-96 428,385.87 38,944.17 OLIVE MAINTENANCE Dec-96 34,529.80 3,139.07 PILTEL Dec-96 10,400.95 945.54 Sub-Total P32,751,200.51 P2,995,941.55 ============= =========== 7) Without Invoices &/or official receipts and supported by invalid documents such as provisional receipts, statement of accounts, check vouchers, request for payment, etc. Input Tax Supplier 1996 Exh. Amount Claimed EASTERN TELECOMMS Jul-96 EEE-4600 P1,190,910.63 P11,785.50 MICRO WATER SUPPLY Jul-96 EEE-4622 92,876.00 8,443.27 PHILAM LIFE INSURANCE COMPANY Jul-96 EEE-4679/80 4,174,200.69 379,472.79 COURIERS WORLDWIDE EXPRESS SERV. Aug-96 EEE-4991 16,079.42 1,461.77 PHILAM LIFE INSURANCE CO. Aug-96 EEE-5019/20 1,210,694.10 110,063.10 UPS (JED) PHILIPPINES, INC. Aug-96 EEE-5023 1,742.00 158.36 LIBERTY BROADCASTING NETWORK, INC. Sep-96 EEE-5223 16,500.00 1,500.00 MALAYAN INSURANCE CO., INC. Sep-96 EEE-5562 39,655.65 3,605.00 PHILAM LIFE INSURANCE CO. Sep-96 EEE-5575/76 1,210,694.10 110,063.10 RADIONET INC. Oct-96 EEE-5727 46,405.34 4,218.67 OLIVE MAINTENANCE Dec-96 EEE-6876 30,140.13 2,740.01 OLIVE MAINTENANCE Dec-96 EEE-6877 7,612.91 692.08 Sub-Total P8,037,510.97 P634,203.65 ============ TOTAL P4,090,970.01 ============ Footnotes 1. Originally in the amount of P22,380,640.70 as prayed for in the Petition for Review. 2. An amended Monthly VAT Declarations and quarterly Value-Added Tax (VAT) Returns were simultaneously filed with the Bureau of Internal Revenue (Exhs. AA to LL, inclusive of submarkings). 3. The period within which refund of input taxes may be made by the Commissioner pursuant to Section 106(e) of the Tax Code. 4. See Annex A for the detailed computation. 5. Net of excepted input taxes for the period January 1, 1996 to March 31, 1996 which already formed part of the prescribed input taxes.