Stateland, Inc. v. Commissioner of Internal Revenue

SECOND DIVISION [C.T.A. CASE NO. 8633. July 12, 2016.] STATELAND, INC. , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . DECISION COTANGCO-MANALASTAS ,J p : This is a Petition for Review filed on April 11, 2013 by Stateland, Inc. to seek the refund or the issuance of tax credit certificate (TCC) in the amount of P13,654,157.00, allegedly representing its excess creditable withholding tax (CWT) for taxable year 2010. 1 FACTS Petitioner Stateland, Inc. is a corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with principal office address at 3rd Floor, State Centre Bldg.,333 Juan Luna St.,Binondo, Manila. It is a registered taxpayer with Revenue District Office (RDO) No. 30 of Revenue Region No. 6 of the Bureau of Internal Revenue (BIR),with Taxpayer Identification Number (TIN) 000-341-850-000. 2 On the other hand, respondent is the duly appointed Commissioner of the BIR, who has the power to decide disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties imposed in relation thereto or other matters arising under the National Internal Revenue Code or other laws or portions thereof administered by the BIR. Respondent holds office at the 5th Floor, BIR National Office Building, Agham Road, Diliman, Quezon City. HTcADC Petitioner is primarily engaged in the business of developing real properties into subdivisions, and building houses on subdivision lots, or constructing residential or commercial units, townhouses and other similar units and offering these for sale. As a real estate developer, petitioner's property sales transactions are subject to the CWT ranging from 1 1/2% to 5% of gross selling price, depending on the amount per sales contract, which is classified either as cash sale, deferred payment plan or installment payment plan. 3 For taxable year ended December 31, 2010, petitioner had a total accumulated CWT amounting to P64,887,625.00 and an income tax due amounting only to P1,643,989.00. 4 On August 5, 2011, petitioner filed an administrative claim for refund through a letter dated August 4, 2011, requesting the refund of the amount of P13,654,157.00, allegedly representing the amount of CWT excessively withheld for 2010. 5 Due to respondent's inaction on petitioner's refund claim, petitioner filed the instant Petition for Review 6 before this Court on April 11, 2013. Respondent belatedly 7 filed her Answer 8 on July 15, 2013, and interposed special and affirmative defenses, alleging, among others, that petitioner committed a fatal error when it failed to submit the supporting documents necessary to substantiate its administrative claim for tax refund as prescribed under Revenue Memorandum Order No. 53-98 and Revenue Regulations No. 2-2006, that such failure rendered petitioner as to have not thoroughly applied the administrative remedy which was available to it, and that petitioner's failure to exhaust its administrative remedies renders the Court without jurisdiction over this particular claim. Thereafter, petitioner filed its Reply to Answer 9 on August 2, 2013. The case was set for Pre-Trial Conference 10 on September 12, 2013 and the parties were ordered to submit their respective Pre-Trial Briefs at least three (3) days before the date of the pre-trial. The Pre-Trial Brief (For the Petitioner) 11 was filed on September 6, 2013; while respondent's Pre-Trial Brief 12 was filed on September 9, 2013. The parties belatedly 13 filed their Joint Stipulation of Facts 14 on October 18, 2013 and was approved by the Court upon issuance of the Pre-Trial Order 15 on October 24, 2013. Petitioner presented the following witnesses: Mr. Bienvenido S. Uy 16 petitioner's Senior Vice President for External Affairs; and Atty. Rosario S. Bernaldo, 17 the Court-commissioned Independent Certified Public Accountant (CPA) for the case. Petitioner filed its Formal Offer of Evidence 18 on June 13, 2014, offering Exhibits "P-1","P-2","P-3","P-4","P-5","P-6","P-7","P-8" to "P-311","P-584" to "P-886","P-887","P-888","P-1396","P-1397","P-1398","P-1399","P-1399-A","P-1400","P-1401","P-1402","P-1403","P-1404","P-1405","P-1414","P-1414-A","P-1415","P-1415-A","P-1416","P-1417","P-1417-A","P-1506",and "P-1506-A". In the Resolution 19 dated August 1, 2014, the Court admitted petitioner's Exhibits "P-1","P-5","P-8" to "P-311","P-584" to "P-886","P-888","P-1396","P-1397","P-1398","P-1399","P-1400","P-1401","P-1402","P-1403","P-1404","P-1405","P-1414","P-1414-A","P-1415","P-1416","P-1417","P-1506",and "P-1506-A" while Exhibits "P-2","P-3","P-4","P-6","P-7","P-887","P-1399-A","P-1415-A",and "P-1417-A" were denied. Accordingly, petitioner filed a Partial Motion for Reconsideration (Of the Resolution promulgated on 1 August 2014), 20 through registered mail on August 11, 2014 and received by the Court on August 14, 2014, praying for the admission of the denied exhibits. In a Resolution 21 dated December 15, 2014, the Court admitted petitioner's Exhibits "P-1399-A","P-1415-A",and "P-1417-A",but still denied Exhibits "P-2","P-3","P-4","P-6","P-7",and "P-887". Petitioner again filed a Partial Motion for Reconsideration, 22 through registered mail on December 23, 2014 and received by the Court on January 7, 2015, praying for the admission of the denied exhibits. Finally, the Court admitted petitioner's Exhibits "P-2","P-3","P-4","P-6",and "P-887" in a Resolution 23 dated February 18, 2015, but still denied Exhibit "P-7". On the other hand, respondent manifested in open court 24 that she will not present any witness. As a result, respondent was given a period of thirty (30) days from February 18, 2015 while petitioner was given a period of twenty (20) days from notice to file their respective memoranda. Petitioner filed a Tender of Excluded Evidence 25 through registered mail on April 29, 2015 and received by the Court on May 4, 2015. The same was noted by the Court in a Resolution 26 dated July 23, 2015. The Court declared the case submitted for decision on July 29, 2015, 27 considering the filing of the Memorandum for the Petitioner 28 on May 8, 2015 and respondent's failure to file her Memorandum as per Records Verification Report 29 dated July 23, 2015. ISSUE The main issue in this case is whether petitioner is entitled to its claim for refund or issuance of a TCC of its unutilized or excess payment of CWT for the taxable year ending December 31, 2010. DISCUSSION/RULING Petitioner anchors its claim for refund on Section 76 of the National Internal Revenue Code (NIRC) of 1997, as amended, which states: "SEC. 76. Final Adjustment Return. Every corporation liable to tax under Section 27 shall file a final adjustment return covering the total taxable income for the preceding calendar or fiscal year. If the sum of the quarterly tax payments made during the said taxable year is not equal to the total tax due on the entire taxable income of that year, the corporation shall either: (A) Pay the balance of tax still due; or (B) Carry-over the excess credit; or (C) Be credited or refunded with the excess amount paid, as the case may be. In case the corporation is entitled to a tax credit or refund of the excess estimated quarterly income taxes paid, the excess amount shown on its final adjustment return may be carried over and credited against the estimated quarterly income tax liabilities for the taxable quarters of the succeeding taxable years. Once the option to carry-over and apply the excess quarterly income tax against income tax due for the taxable quarters of the succeeding taxable years has been made, such option shall be considered irrevocable for that taxable period and no application for cash refund or issuance of tax credit certificate shall be allowed therefor. " (Emphasis supplied) Based on the afore-quoted provision, a corporation entitled to a tax credit or refund of the excess estimated quarterly income taxes paid has two options: (1) to carry over the excess credit or (2) to apply for the issuance of a tax credit certificate or to claim a cash refund. If the option to carry over the excess credit is exercised, the same shall be irrevocable for that taxable period. 30 In exercising its option, the corporation must signify in its annual corporate adjustment return (by marking the option box provided in the BIR form) its intention either to carry over the excess credit or to claim a refund. 31 The two options are alternative and not cumulative in nature, that is, the choice of one precludes the other. 32 A perusal of petitioner's Annual Income Tax Return 33 (ITR) for taxable year 2010 shows that petitioner had income tax credits in the total amount of P64,887,625.00, 34 consisting of the following: Prior Year's Excess Credits other than MCIT P51,233,468.00 35 Creditable Taxes Withheld for the First Three Quarters P10,062,599.00 36 Creditable Taxes Withheld for the Fourth Quarter 3,591,558.00 37 13,654,157.00 Total Tax Credits P64,887,625.00 ============= Petitioner claims that its 2010 income tax due amounting to P1,643,988.50 38 was paid using a portion of its prior year's excess credits of P51,233,468.00, thus, leaving the prior year's excess credits in the amount of P49,589,479.50 P51,233,468.00 less P1,643,988.50) and creditable taxes withheld during the year 2010 in the amount of P13,654,157.00 totaling to P63,243,636.50 39 unutilized as of December 31, 2010, as shown below: Prior Year's Excess Credits other than MCIT P51,233,468.00 Less: Tax Due 1,643,988.50 Balance of Prior Year's Excess Tax Credits P49,589,479.50 Add: Creditable Taxes Withheld during the year 2010 13,654,157.00 Excess Tax Credits as of December 31, 2010 P63,243,636.50 ============ Records do not clearly show that petitioner marked the option "To be refunded" 40 in its 2010 Annual ITR. However, petitioner filed a letter 41 with Commissioner Kim Jacinto Henares on April 15, 2011, signifying its intention to be refunded of or issued a TCC for the creditable taxes withheld for the four quarters of 2010 amounting to P13,654,157.00 and "the balance of P49,598,479.00, which represents prior years excess credits but not fully utilized, shall continue to be carried over thru succeeding years/quarters." In the said letter, petitioner explained that it is submitting the letter as an attachment to its 2010 annual ITR inasmuch as the EFPS cannot accommodate the filing of ITR showing these intentions and avert any misunderstanding that may result from the EFPS filing. Since only the prior year's excess credits of P49,589,479.00 were carried over to the subsequent first quarter 42 of 2011, the excess creditable tax withheld for 2010 in the amount of P13,654,157.00 is refundable pursuant to Section 76 of the NIRC of 1997, as amended, provided that the taxpayer also satisfies the following requirements: 1. The claim for refund was filed within the two-year prescriptive period prescribed under Sections 204(C) and 229 of the NIRC of 1997, as amended; 2. The fact of withholding is established by a copy of a statement duly issued by the payor (withholding agent) to the payee, showing the amount paid and the amount of tax withheld therefrom; and 3. The income upon which the taxes were withheld was included in the return of the recipient. 43 As regards the first requisite, the pertinent provisions of Sections 204 (C) and 229 of the NIRC of 1997, as amended, are as follows: "SEC. 204. Authority of the Commissioner to Compromise, Abate and Refund or Credit Taxes. The Commissioner may xxx xxx xxx (C) Credit or refund taxes erroneously or illegally received or penalties imposed without authority, refund the value of internal revenue stamps when they are returned in good condition by the purchaser, and, in his discretion, redeem or change unused stamps that have been rendered unfit for use and refund their value upon proof of destruction. No credit or refund of taxes or penalties shall be allowed unless the taxpayer files in writing with the Commissioner a claim for credit or refund within two (2) years after the payment of the tax or penalty: Provided, however , that a return filed showing an overpayment shall be considered as a written claim for credit or refund." aScITE "SEC. 229. Recovery of Tax Erroneously or Illegally Collected. No suit or proceeding shall be maintained in any court for the recovery of any national internal revenue tax hereafter alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to have been excessively or in any manner wrongfully collected, until a claim for refund or credit has been duly filed with the Commissioner; but such suit or proceeding may be maintained, whether or not such tax, penalty, or sum has been paid under protest or duress. In any case, no such suit or proceeding shall be filed after the expiration of two (2) years from the date of payment of the tax or penalty regardless of any supervening cause that may arise after payment: Provided, however , That the Commissioner may, even without a written claim therefor, refund or credit any tax, where on the face of the return upon which payment was made, such payment appears clearly to have been erroneously paid." (Emphasis supplied) It is well-settled in our jurisprudence that the reckoning of the two-year prescriptive period for the filing of a claim for refund or tax credit of excess income tax paid/withheld, both in the administrative and judicial levels, commences from the date of filing of the final adjustment return. 44 It is only when the final adjustment return covering the whole year is filed that the taxpayer would know whether a tax is still due or a refund can be claimed based on the adjusted and audited figures. 45 In the instant case, petitioner filed its Annual ITR for taxable year 2010 on April 13, 2011. 46 Counting therefrom, petitioner had until April 13, 2013 within which to file its claim for refund or issuance of tax credit certificate, both in the administrative and judicial levels. Therefore, petitioner's administrative claim for refund filed on August 5, 2011 47 and the Petition for Review filed on April 11, 2013 were both filed well within the two-year prescriptive period. To comply with the second requisite, petitioner presented various Certificates of Creditable Tax Withheld at Source (BIR Form No. 2307), 48 Withholding Tax Remittance Returns (BIR Form No. 1606), 49 and Certificates Authorizing Registration 50 for the year 2010; which were examined by the Court-commissioned Independent CPA. In her Report dated March 14, 2014, 51 the CWT certificates received by petitioner were grouped into the following categories: CWT CATEGORY AMOUNT REFERENCE Cash Basis P7,693,130.46 Exhibits "P-8" to "P-105" Fully Settled Accounts in 2010 2,933,235.02 Exhibits "P-106" to "P-176" Last Collection happened in 2010 2,160,852.69 Exhibits "P-177" to "P-257" Corporate Buyers 292,550.00 Exhibits "P-258" to "P-295" Home Development Mutual Fund 266,518.10 Exhibits "P-296" to "P-307" (HDMF) Accounts Installment Sales of Prior Year, 148,660.71 Exhibits "P-308" to "P-309" Fully Settled in Year 2011 Bank Financing Accounts 159,210.00 Exhibits "P-310" to "P-311" TOTAL P13,654,157.00 * ============== *P0.02 rounding off difference The Independent CPA cited Section 2.57.2 of Revenue Regulations (RR) No. 2-98, as amended by RR No. 17-2003, as her legal basis for the said groupings, to wit: "(J) Gross selling price or total amount of consideration or its equivalent paid to the seller/owner for the sale, exchange, or transfer of real property classified as ordinary asset. ... xxx xxx xxx If the buyer is an individual not engaged in trade or business, the following rules shall apply: (i) If the sale is a sale of property on the installment plan ( i.e. , payments in the year of sale do not exceed twenty five percent (25%) of the selling price),no withholding is required to be made on the periodic installment payments. In such a case, the applicable rate of tax based on the gross selling price or fair market value of the property at the time of the execution of the contract to sell, whichever is higher, shall be withheld on the last installment or installments immediately prior to such last installment, if the last installment is not sufficient to cover the tax due, to be paid to the seller until the tax is fully paid . (ii) If, on the other hand, the sale is on a " cash basis " or is a "deferred-payment sale not on the installment plan" (that is, payments in the year of sale exceed 25% of the selling price),the buyer shall withhold the tax based on the gross selling price or fair market value of the property, whichever is higher, on the first installment . However, if the buyer is engaged in trade or business ,whether a corporation or otherwise, these rules shall apply: (i) If the sale is a sale of property on the installment plan [ i.e. ,payments in the year of sale do not exceed twenty five percent (25%) of the selling price],the tax shall be deducted and withheld by the buyer from every installment which tax shall be based on the ratio of actual collection of the consideration against the agreed consideration appearing in the Contract to Sell applied to the gross selling price or fair market value of the property at the time of the execution of the Contract to Sell, whichever is higher. xxx xxx xxx (ii) If, on the other hand, the sale is on a " cash basis " or is a "deferred-payment sale not on the installment plan" (that is, payments in the year of sale exceed 25% of the selling price),the buyer shall withhold the tax based on the gross selling price or fair market value of the property, whichever is higher, on the first installment ." 52 The foregoing creditable withholding taxes of P13,654,157.00 are presented in detail below: Amount of Tax Name of Buyer Tax Base Withheld Exhibits BIR BIR BIR In Philippine Pesos FORM FORM FORM 2307 1606 2313 A. SALES UNDER CASH BASIS 1 SPS. RODRIGO, JR. & MERCEDES 1,816,126.00 54,483.78 P-8 P-584 USON 2 SHEENA CATHERINE RECTO 1,423,936.00 42,718.08 P-9 P-585 3 GABRIEL MARCUS EISMA 828,400.00 24,852.00 P-10 P-586 4 VIANNE BEATRICE EISMA 790,400.00 23,712.00 P-11 P-587 5 TITA CUNANAN 1,560,634.00 46,819.02 P-12 P-588 6 SPS. JOEL & EVELYN CORTEZ 3,825,483.04 191,274.15 P-13 P-589 7 SPS. ALEJANDRO & LOIDA DAIRO 1,012,700.00 30,381.00 P-14 P-590 8 SPS. ALBERT & CRUNCHIE 2,459,800.00 122,990.00 P-15 P-591 ABUAN 9 ANDRES & IMELDA BONIFACIO 3,992,044.64 199,602.23 P-16 P-592 10 SPS. ESTRELLA & ARNEL BERNAL 6,578,373.21 328,918.66 P-17 P-593 11 GENE CRISSEL PULIDO 893,395.00 26,801.85 P-18 P-594 12 SPS. WILFREDO & MARITES 723,520.00 21,705.60 P-19 P-595 CANO 13 LYNDON HILARION & RACHEL 2,137,190.00 106,859.50 P-20 P-596 BERNABE 14 SPS. CRISANTA & EMERITO 2,295,200.00 114,760.00 P-21 P-597 REYES 15 SPS. APOLINARIO & JOCELYN 4,455,357.14 222,767.86 P-22 P-598 LAQUI 16 SPS. DEXTER &/OR OLGA & 898,000.00 26,940.00 P-23 P-599 DENNIS APOLONIO 17 SPS. JOHN RAVI & MONALISSA 2,029,300.00 101,465.00 P-24 P-600 HAYAG 18 SPS. BERNARDO & MARIA 2,161,725.00 108,086.25 P-25 P-601 CRISTINA ZUNIGA 19 SPS. JOEL & GHINGER ANN 1,500,000.00 45,000.00 P-26 P-602 MARGATE 1ST QUARTER 41,381,584.03 1,840,136.98 20 SPS. RONALDO & ANNA LIZA 2,721,428.57 136,071.43 P-27 P-603 LACUNA 21 NORA BUENO 1,162,040.00 34,861.20 P-28 P-604 22 GAUDINCIA SPITZ 1,628,151.00 48,844.53 P-29 P-605 23 SHEENA MARIE LUZ 1,232,917.00 36,987.51 P-30 P-606 24 SPS. ELMER & ANITA 896,000.00 26,880.00 P-31 P-607 PENAVERDE 25 SPS. ROWENA & DEMETRIO 2,414,400.00 120,720.00 P-32 P-608 GABUCAY, JR. 26 DELIA DACUMA 2,760,089.29 138,004.46 P-33 P-609 27 SPS. ARNEL & MARIPAZ 1,448,000.00 43,440.00 P-34 P-610 MATILLANO 28 NORMA CANCHELA 3,288,633.04 164,431.65 P-35 P-611 29 SEBASTIAN RIOCASA, JR. 1,496,891.00 44,906.73 P-36 P-612 30 MARY GRACE KREMER 3,515,625.00 175,781.25 P-37 P-613 31 SPS. MATEO RANDOLPH 2,204,655.00 110,232.75 P-38 P-614 GONZALES 32 MAXIMO MIRANDA, JR. 686,800.00 20,604.00 P-39 P-615 33 SPS. JOSEFINA & ARSENIO 3,034,732.14 151,736.61 P-40 P-616 VILLANUEVA, JR. 34 SPS. JESUS & BRENDA PADUGAR 1,198,500.00 35,955.00 P-41 P-617 35 GILBERT BALTAZAR 2,473,800.00 123,690.00 P-42 P-618 36 SPS. MOSES & VILMA LEUTERIO 2,610,982.14 130,549.11 P-43 P-619 37 HAZEL ANNE PANGHULAN 1,698,000.00 50,940.00 P-44 P-620 38 ROSALYN CEREBO 2,359,096.00 117,954.80 P-45 P-621 2ND QUARTER 38,830,740.18 1,712,591.03 39 SHARON AREVALO & DANIELA B. 873,130.00 26,193.90 P-46 P-622 NAVARRO & DENICE M. NAVARRO 40 JENNY CLAIRE ACPAL 2,499,800.00 124,990.00 P-47 P-623 41 SPS. ROGER & JUDITHA ELLAR 2,474,800.00 123,740.00 P-48 P-624 42 SPS. RODRIGO & EVANGELINE 3,325,075.89 166,253.79 P-49 P-625 CAMARINO 43 SPS. EDGARDO & MARIBEL 760,000.00 22,800.00 P-50 P-626 BERNABE 44 SPS. ROSALINA & RENATO 1,500,000.00 45,000.00 P-51 P-627 GALICIA 45 MARIE ANN OCAMPO 2,449,800.00 122,490.00 P-52 P-628 46 SPS. GREG & RAQUIEL DOLIENTE 1,489,512.00 44,685.36 P-53 P-629 47 LILIA OLAYBAR 1,062,421.00 31,872.63 P-54 P-630 48 SPS. NICANOR & JUDITH TOGA 713,835.00 21,415.05 P-55 P-631 49 MARIELLA SALINDA 2,359,096.00 117,954.80 P-56 P-632 50 MAURICIA BALUYOT 2,186,616.00 109,330.80 P-57 P-633 51 REYNALDO ROSAL 1,299,615.00 38,988.45 P-58 P-634 52 SPS. PHILIP & CECIL LLANDER 1,100,000.00 33,000.00 P-59 P-635 53 SPS. MARSON & MARILOU 1,380,000.00 41,400.00 P-60 P-636 BARDULLAS 54 ABDUL JAMALL & OTTOMAN 3,272,320.54 163,616.03 P-61 P-637 MAMADRA 55 ARNEL MARTINEZ 1,728,500.00 51,855.00 P-62 P-638 56 ARDY MANAOIS 1,782,800.00 53,484.00 P-63 P-639 57 SPS. REZALDY & CARMENCITA 2,409,700.00 120,485.00 P-64 P-640 TORRES 58 RONILA BANAYO 2,581,614.29 129,080.71 P-65 P-641 59 SPS. WILFREDO & MARITES 667,968.00 20,039.04 P-66 P-642 CANO 60 BENJI CANTALLOPES 661,500.00 19,845.00 P-67 P-643 61 SPS. ARSENIO & JOSEFINA 1,807,740.00 54,232.20 P-68 P-644 VILLANUEVA 62 CECILIA CAPILI 1,507,592.00 45,227.76 P-69 P-645 63 EISEN NOGA 1,100,000.00 33,000.00 P-70 P-646 64 CARLO CAALIM 1,559,000.00 46,770.00 P-71 P-647 65 SPS. DENNIS & MARIA LISA 680,000.00 20,400.00 P-72 P-648 GARCIA 66 JEHAN LAQUI 3,516,785.71 175,839.29 P-73 P-649 67 ZALDY HERMOSADO 3,098,035.71 154,901.79 P-74 P-650 68 ROWENA BALBOA 811,262.00 24,337.86 P-75 P-651 3RD QUARTER 52,658,519.14 2,183,228.46 69 LOUIE LYLE DELA CRUZ 2,285,010.00 114,250.50 P-76 P-652 70 PASTOR JUSTIMBASTE, JR. 2,459,800.00 122,990.00 P-77 P-653 71 NEREN DE OCAMPO 1,496,500.00 44,895.00 P-78 P-654 72 SPS. ALLAN & LYRA ARBOLEDA 2,414,291.00 120,714.55 P-79 P-655 73 SPS. NOIL & JENNETTE MALLADA 528,000.00 15,840.00 P-80 P-656 74 SPS. ARLAN RAYMUND & RHIA 854,000.00 25,620.00 P-81 P-657 REYES 75 MYP GBY PHILIPPINE 26,785.71 1,339.29 P-82 P-658 CORPORATION 76 SPS. JESUS JR.,& ELEONOR 682,500.00 20,475.00 P-83 P-659 BALISBISAN 77 MAURICIA BALUYOT 1,983,500.00 59,505.00 P-84 P-660 78 MELECIA PEDRAZA & 740,000.00 22,200.00 P-85 P-661 TEODORICA ANGULO 79 SPS. MARIAN & ROLANDO 720,000.00 21,600.00 P-86 P-662 MIRANDA 80 JENELYN GOLE 2,209,582.00 110,479.10 P-87 P-663 81 JOY & JOY LIN PAROHINOG 1,066,030.00 31,980.90 P-88 P-664 82 SPS. GLADYS & MICHAEL NIELES 739,200.00 22,176.00 P-89 P-665 83 ELIAS ARNOCO 1,428,392.86 42,851.79 P-90 P-666 84 SPS. AILEEN & JOEI BEN MOOG 1,588,702.00 47,661.06 P-91 P-667 85 SPS. GUIALUSA & GUIAMALIA 770,400.00 23,112.00 P-92 P-668 ANGKAL 86 VICTORIA AMABEL MIRADOR 3,474,107.14 173,705.36 P-93 P-669 87 MICHELEE PATRICIO 720,000.00 21,600.00 P-94 P-670 88 SPS. ADRIAN & GRACE ALIPIT 1,137,750.00 34,132.50 P-95 P-671 89 SPS. JENER & SHARON VILLALON 2,297,800.00 114,890.00 P-96 P-672 90 SPS. ANASTACIO & HERMINA 1,975,209.00 59,256.27 P-97 P-673 SERRANO 91 AMPARO GODINEZ 7,801,785.71 390,089.29 P-98 P-674 92 EDWIN VILLOTA 1,593,750.00 47,812.50 P-99 P-675 93 SPS. ROLANDO & ALEXIS BINAS 652,500.00 19,575.00 P-100 P-676 94 MYP GBY PHILIPPINE 500,548.94 25,027.45 P-101 P-677 CORPORATION 95 MYP GBY PHILIPPINE 1,758,736.78 87,936.84 P-102 P-678 CORPORATION 96 AIZA DOMINGO 992,250.00 29,767.50 P-103 P-679 97 SPS. SALVACION & TOBIAS 2,087,043.00 104,352.15 P-104 P-680 CORDOVALES 98 AIR INSURANCE AGENCY, INC. 13,389.65 1,338.96 P-105 4TH QUARTER 46,997,563.79 1,957,174.01 TOTAL 179,868,407.14 7,693,130.48 B. FULLY SETTLED ACCOUNTS IN 2010 1 RALPH SINGZON 355,723.22 5,335.85 P-106 P-681 2 JONATHAN BULAQUENA 500,000.00 7,500.00 P-107 P-682 3 SPS. RICARDO & JOCELYN 500,000.00 7,500.00 P-108 P-683 GALLEGO 4 RENATO TABIO 526,122.00 15,783.66 P-109 P-684 5 GILBERT DE LEON 1,547,982.00 46,439.46 P-110 P-685 6 SPS. MARLON & GLADLEEN 1,066,000.00 31,980.00 P-111 P-686 ALCANTARA 7 SPS. TEODORICO & NEBIAN 850,250.00 25,507.50 P-112 P-687 DAYMIEL 8 SPS. NATHANIEL & JOCELYN 355,723.22 5,335.85 P-113 P-688 MILLADO 9 SPS. ELEAZAR & ALICE LIM 820,243.00 24,607.29 P-114 P-689 10 SPS. EFREN & MARICEL DELA 589,709.00 17,691.27 P-115 P-690 CRUZ 11 GABRIEL A. REMEDIO, JR. 3,083,812.50 154,190.63 P-116 P-691 12 SPS. ROD NIL CLEMENTE & 2,495,800.00 124,790.00 P-117 P-692 IREENE SALMORIN 13 SPS. ROSALITA & JOELITO RUIZ 2,721,428.57 136,071.43 P-118 P-693 14 SPS. RUMEN & ROSANA 321,974.93 4,829.62 P-119 P-694 PARUNGAO 15 SPS. RIONEL & IMELDA DITAN 500,000.00 7,500.00 P-120 P-695 16 ELMA ALMOSA 500,000.00 7,500.00 P-121 P-696 17 VERGIL MAGAN 363,624.00 5,454.36 P-122 P-697 18 SPS. PAQUITO & ARLENE 454,277.00 6,814.16 P-123 P-698 GALLENERO 19 FILIPINA CARANDANG 568,786.00 17,063.58 P-124 P-699 20 SPS. ANICETO & ZENAIDA RIBAO 979,052.00 29,371.56 P-125 P-700 21 GEMMALUZ HOSANA 504,000.00 15,120.00 P-126 P-701 22 RYAN CABRERA 1,974,508.00 59,235.24 P-127 P-702 23 SPS. NONITO & IMELDA TONO 3,320,478.57 166,023.93 P-128 P-703 24 SPS. LUSANTO & DONNA 2,320,200.00 116,010.00 P-129 P-704 BONIFACIO 25 JOVEN REDONGA 2,721,428.57 136,071.43 P-130 P-705 1ST QUARTER 29,941,122.58 1,173,726.82 26 JACQULINE GUARIN 381,053.76 5,715.81 P-131 P-706 27 ALETH VIAGEDOR 444,667.00 6,670.01 P-132 P-707 28 SPS. RAYMUND RAFAEL & 210,893.00 3,163.40 P-133 P-708 RAQUEL CABREJAS 29 MARICEL GARCIA 500,000.00 7,500.00 P-134 P-709 30 LUCITO JUNIOR REGIS 554,331.00 16,629.93 P-135 P-710 31 SPS. ZANDRA & VICSON 628,560.00 18,856.80 P-136 P-711 VALMONTE 32 SPS. DANIEL, JR. & TRICIA 1,680,000.00 50,400.00 P-137 P-712 ALINGASA 33 RAMILO DELA CRUZ 3,258,079.46 162,903.97 P-138 P-713 34 FRANSISCO YANGYANG 353,827.43 5,307.41 P-139 P-714 35 OFELIA QUEZADA 872,635.00 26,179.05 P-140 P-715 36 SPS. RUZEN & MA. LANI 774,928.00 23,247.84 P-141 P-716 MALACAD 37 SOLEDAD CAJEFE & FELISA 500,000.00 7,500.00 P-142 P-717 YOUNGBERG 38 SPS. MARISSA & JAYSON 773,900.00 23,217.00 P-143 P-718 GUTIERREZ 39 SPS. JAMES & GERALDINE DE 3,021,258.04 151,062.90 P-144 P-719 JESUS 40 SPS. LEMUEL & JULIET DALISAY 375,000.00 5,625.00 P-145 P-720 41 ELIZABETH GARCIA 509,384.27 15,281.53 P-146 P-721 42 SPS. ROGELIO & REMEDIOS 675,744.00 20,272.32 P-147 P-722 REMEDIOS AND REYNANTE ROBINION 43 JACKYLIN LOBO 979,510.00 29,385.30 P-148 P-723 2ND QUARTER 16,493,770.96 578,918.27 44 DIGNA & ROMULO TORRES 375,000.00 5,625.00 P-149 P-724 45 SPS. ROMULO & MERLY DARAUG 907,311.00 27,219.33 P-150 P-725 46 TITO SARMAGO 522,522.21 15,675.68 P-151 P-726 47 SPS. GABRIEL & MS. CECILIA 814,499.52 24,434.99 P-152 P-727 RESUTA 48 ERNEST RAMIREZ 500,000.00 7,500.00 P-153 P-728 49 ROBERTO TORIO 685,984.00 20,579.52 P-154 P-729 50 SPS. REYNADLO & JOSIE SOTELO 500,000.00 7,500.00 P-155 P-730 51 SPS. ROLLY & BEVERLY LACSE 450,000.00 6,750.00 P-156 P-731 52 SPS. ANICETO & MARIA ARGIE 633,993.00 19,019.79 P-157 P-732 DORIA 53 MENCHU BALLOS 1,327,700.00 39,831.00 P-158 P-733 54 SPS. MARISSA & JAYSON 919,600.00 27,588.00 P-159 P-734 GUTIERREZ 55 SPS. JOWELL & MAY BAUTRO 1,479,832.00 44,394.96 P-160 P-735 56 SPS. CHRISTOPHER & RIADEL 1,683,180.00 50,495.40 P-161 P-736 BACAL 3RD QUARTER 10,799,621.73 296,613.67 57 JUDITH MILAOR 2,134,690.00 106,734.50 P-162 P-737 58 MARY ANN ALVAREZ 1,289,773.00 38,693.19 P-163 P-738 59 RENIE FERNANDEZ 769,944.00 23,098.32 P-164 P-739 60 SPS. ORLANDO & ALICIA MALIZA 780,672.00 23,420.16 P-165 P-740 61 MENCHU BALLOS 1,988,269.00 59,648.07 P-166 P-741 62 SPS. ERIC & BERNADETTE DE 642,600.00 19,278.00 P-167 P-742 GUZMAN 63 SPS. ROMMEL & LORENA 679,764.00 20,392.92 P-168 P-743 SORIANO 64 SPS. MILA & OLINAD CASSI 713,650.00 21,409.50 P-169 P-744 65 MARILYN KANNO 1,793,979.09 53,819.37 P-170 P-745 66 PEDRO ANGELO PATINO 493,100.00 7,396.50 P-171 P-746 67 CRESTITA YAMAZOE 2,822,172.73 141,108.64 P-172 P-747 68 SPS. IRENE & ELEAZAR MONZON 824,296.00 24,728.88 P-173 P-748 69 GEMMALUZ HOSANA 540,000.00 16,200.00 P-174 P-749 70 MARLOU KELLY 3,311,371.43 165,568.57 P-175 P-750 71 TARIK TRADING, INC. 3,249,592.80 162,479.64 P-176 P-751 4TH QUARTER 22,033,874.05 883,976.26 TOTAL 79,268,389.32 2,933,235.02 C. LAST COLLECTION MADE IN 2010 1 SPS. NICANOR & MARISSA 375,000.00 5,625.00 P-177 P-752 ESCOBER 2 TERESA SUBERO 375,000.00 5,625.00 P-178 P-753 3 ROLANDO & ROELA AGUIRRE 375,000.00 5,625.00 P-179 P-754 4 JUSTA DIMALANTA 723,426.16 21,702.78 P-180 P-755 5 MARITES DELA CRUZ 589,709.00 17,691.27 P-181 P-756 6 SPS. ROBERTO & NANCY GAFFUD 1,043,854.13 31,315.62 P-182 P-757 7 NELDA & LUCY SARAMOSING 733,383.00 22,001.49 P-183 P-758 8 ALEJANDRO MENOZA, JR. 750,000.00 22,500.00 P-184 P-759 9 SPS. EDDIE & AURA ACOSTA 2,069,437.27 103,471.86 P-185 P-760 10 ANABELLE RAMOS 821,157.00 24,634.71 P-186 P-761 11 VIOLETA BETONIO 2,321,052.00 116,052.60 P-187 P-762 12 SPS. RODOLFO & GINA LADERA 973,524.00 29,205.72 P-188 P-763 13 SPS. RODGER & LUZ GUERRERO 3,992,044.64 199,602.23 P-189 P-764 14 MARY-LYN ALTERADO 2,285,397.00 114,269.85 P-190 P-765 15 SPS. ROAL & MA. LUISA BASA 436,464.00 6,546.96 P-191 P-766 16 DALMACIO DIEGO 714,802.00 21,444.06 P-192 P-767 17 SPS. ROMEO & ALMA ENRIQUEZ 360,354.87 5,405.32 P-193 P-768 18 MANUEL & NELLY ALCANTARA 348,527.92 5,227.92 P-194 P-769 19 MELINDA CARINO 1,086,797.73 32,603.93 P-195 P-770 20 SPS. EMMANUEL & JHOANA 1,298,882.00 38,966.46 P-196 P-771 DELA CRUZ 1ST QUARTER 21,673,812.72 829,517.78 21 CARMELITA MERCADO 93,663.38 2,809.90 P-197 P-772 22 ENRICO LAZARO 336,238.25 5,043.57 P-198 P-773 23 SPS. HAROLD & ROWENA 361,338.20 5,420.07 P-199 P-774 ARQUIZA 24 RACHEL DOMINO 1,082,710.00 32,481.30 P-200 P-775 25 HELEN VARION MARQUION 881,692.82 26,450.78 P-201 P-776 26 MARIA CANDY DRIS 368,211.05 5,523.17 P-202 P-777 27 SPS. DANILO & LEONICIA CABRAL 739,373.65 22,181.21 P-203 P-778 28 ROSITA BEDICO 421,575.00 6,323.63 P-204 P-779 29 JOSEPHINE BULLECER 500,000.00 7,500.00 P-205 P-780 30 GERALDINE JULATON 1,881,190.91 56,435.73 P-206 P-781 31 DENNYLOU SATO 1,699,651.82 50,989.55 P-207 P-782 32 BELINA SUAREZ 737,303.64 22,119.11 P-208 P-783 33 SPS. DENNIS & ANNA LISA 375,000.00 5,625.00 P-209 P-784 RESURRECCION 34 SPS. CORNELIO & MA. LOURDES 355,217.58 5,328.26 P-210 P-785 DESACOLA 35 RENATO CASTILLO 837,947.00 25,138.41 P-211 P-786 36 SPS. ROMEO & ANALYN FLORES 795,347.00 23,860.41 P-212 P-787 37 CANDIDA & JOY CASALA 500,000.00 7,500.00 P-213 P-788 38 PABLITO PENARANDA 2,131,238.00 106,561.90 P-214 P-789 2ND QUARTER 14,097,698.30 417,292.00 39 SPS. ERNESTO & GINA 341,022.70 5,115.34 P-215 P-790 AMBROCIO, JR. 40 NICODEMOS YADAO 375,000.00 5,625.00 P-216 P-791 41 ROSALINDA BACANI 1,104,439.62 33,133.19 P-217 P-792 42 SPS. DOMINIC HAZLYN RIBERAL 522,522.51 15,675.68 P-218 P-793 43 FELIPE GOLPE, JR. 1,069,021.00 32,070.63 P-219 P-794 44 RUFINO & IRENE ABELLA 785,147.00 23,554.41 P-220 P-795 45 VILMA ENRIQUEZ 635,869.00 19,076.07 P-221 P-796 46 SPS. DOMINGO & YOLANDA 750,000.00 22,500.00 P-222 P-797 MARTILLANO 47 HELEN CHOUNG 375,000.00 5,625.00 P-223 P-798 48 JOBEL URETA 701,955.83 21,058.67 P-224 P-799 49 REGINETTE VILORIA 734,431.00 22,032.93 P-225 P-800 50 SPS. EDWIN & JOYCE DELA CRUZ 826,735.00 24,802.05 P-226 P-801 51 SPS. CARLOS & ROWENA LOPEZ 1,798,554.55 53,956.64 P-227 P-802 52 SPS. ISAGANI & EDNA CATANGAY 375,000.00 5,625.00 P-228 P-803 53 SPS. SATURNINO & SALINA 548,088.47 16,442.65 P-229 P-804 TOLEDO 54 ELIZABETH GARCIA 509,384.27 15,281.53 P-230 P-805 55 MANNY ANACAY 332,800.82 4,992.01 P-231 P-806 56 SPS. GILBERTO & RAQUEL 500,000.00 7,500.00 P-232 P-807 VARGAS 57 SPS. MAGELENDE & LUIS 500,000.00 7,500.00 P-233 P-808 BARETTO 58 MA. VICTORIA TORRES 1,953,042.00 33,245.16 P-234 P-809 3RD QUARTER 14,738,013.77 374,811.96 59 JEAN ASCANO CABALES 507,480.21 15,224.41 P-235 P-810 60 SPS. SOCRATES & CYNTHIA 363,971.74 5,459.58 P-236 P-811 RAMOS 61 ELOISA PAR 318,324.61 4,774.87 P-237 P-812 62 SPS. CONRADO & ESTELA 1,247,416.00 37,422.48 P-238 P-813 NUNEZ, JR. 63 DALISAY ISHII 945,000.00 28,350.00 P-239 P-814 64 DALISAY ISHII 1,066,500.00 31,995.00 P-240 P-815 65 YUKA MARUYAMA 641,029.00 19,230.87 P-241 P-816 66 MA. JULIE SIMON 1,627,087.27 48,812.62 P-242 P-817 67 SPS. FELISA & FERNANDO 1,796,308.00 53,889.24 P-243 P-818 CABALLA 68 JENNIFER ACAP 2,116,230.00 105,811.50 P-244 P-819 69 ORLANDO & MARLITA LORENZO 343,793.97 5,156.91 P-245 P-820 70 SPS. POLARIS & CIRILA ELFREDA 375,000.00 5,625.00 P-246 P-821 BARDELAS 71 ANTONIO DOMINGO 373,410.24 5,601.15 P-247 P-822 72 ANNIE PASTOLERO 375,000.00 5,625.00 P-248 P-823 73 GERALDINE BUCAY 435,756.01 6,536.34 P-249 P-824 74 RONALDO RAGOS 404,272.00 6,064.08 P-250 P-825 75 SPS. ENRICO & MA. CECILIA 1,766,400.00 52,992.00 P-251 P-826 DOJENO 76 SPS. VERGINES & REUBEN & 473,311.00 7,099.67 P-252 P-827 REUBEN TEEJAY AGUIRRE 77 SONNY RAM 375,000.00 5,625.00 P-253 P-828 78 LOLITA YOGUE 718,451.80 21,553.55 P-254 P-829 79 ROLANDO/LAURENCE MA. 712,722.43 21,381.67 P-255 P-830 TERESA TING, JR. 80 SPS. AGNES & ALLAN CAPILI 750,000.00 22,500.00 P-256 P-831 81 MICHELLE LANOT 750,000.00 22,500.00 P-257 P-832 FOURTH QUARTER 18,482,464.28 539,230.94 TOTAL 68,991,989.07 2,160,852.68 D. CORPORATE BUYERS 1 YOUNGJI INTERNATIONAL 6,927.71 346.39 P-258 P-833 SCHOOL (CHESTER PLACE BLK. 2 7,043.17 352.16 P-259 P-834 LOT 12) 7,160.55 358.03 P-260 P-835 14,681.12 734.06 P-261 P-836 SUBTOTAL 35,812.55 1,790.64 2 YOUNGJI INTERNATIONAL 2,050.87 61.53 P-262 P-837 SCHOOL (CHESTER PLACE BLK. 2A 2,085.05 62.55 P-263 P-838 LOT 1) 2,119.80 63.59 P-264 P-839 735,982.85 22,079.49 P-265 P-840 SUBTOTAL 742,238.57 22,267.16 3 YOUNGJI INTERNATIONAL 7,868.58 236.06 P-266 P-841 SCHOOL (CHESTER PLACE BLK. 7,986.61 239.60 P-267 P-842 2A) 8,106.41 243.19 P-268 P-843 8,228.00 246.84 P-269 P-844 724,883.20 21,746.50 P-270 P-845 SUBTOTAL 757,072.80 22,712.19 4 LIGHTLIFE BAPTIST CHURCH 120,833.35 3,625.00 P-271 P-846 (GRAN SEVILLE BLK. 1R LOT 1C) 19,166.65 575.00 P-272 P-847 3,233.82 97.01 P-273 P-848 3,285.03 98.55 P-274 P-849 3,337.04 100.11 P-275 P-850 3,389.87 101.70 P-276 P-851 3,443.55 103.31 P-277 P-852 3,498.07 104.94 P-278 P-853 SUBTOTAL 160,187.38 4,805.62 5 ST. MARY'S SCHOOL OF 2,640,000.00 132,000.00 P-279 P-854 NOVALICHES, INC. (BLK. 1A LOT 18A) SUBTOTAL 2,640,000.00 132,000.00 6 ST. MARY'S SCHOOL OF 6,540.24 327.01 P-280 P-855 NOVALICHES, INC. (BLK. 1A LOT 17A) 13,409.41 670.47 P-281 P-856 ST. MARY'S SCHOOL OF 6,872.79 343.64 P-282 P-857 NOVALICHES, INC. (BLK. 1A LOT 6,987.34 349.37 P-283 P-858 17A) 1,595,504.20 79,775.21 P-284 P-859 SUBTOTAL 1,629,313.98 81,465.70 7 OPEN MISSION IN THE 7,986.61 239.60 P-285 P-860 PHILIPPINES (CHESTER PLACE BLK. 8,106.41 243.19 P-286 P-861 2A LOT 3) 8,228.00 246.84 P-287 P-862 8,351.42 250.54 P-288 P-863 716,531.78 21,495.95 P-289 P-864 SUBTOTAL 749,204.22 22,476.12 8 OPEN MISSION IN THE 55,861.71 1,675.85 P-290 P-865 PHILIPPINES (CHESTER PLACE BLK. 28,014.75 840.44 P-291 P-866 2A LOT 7) 8,673.59 260.21 P-292 P-867 19,285.24 578.56 P-293 P-868 27,958.83 838.76 P-294 P-869 27,958.83 838.76 P-295 P-870 SUBTOTAL 167,752.95 5,032.58 TOTAL 6,881,582.45 292,550.01 E. HOME DEVELOPMENT MUTUAL FUND ACCOUNTS 1 EUNICE SALON 658,800.00 19,764.00 P-296 P-871 2 SPS. FERLINETTE & RONNIE 707,684.00 21,230.52 P-297 P-872 VERGUELA 3 SPS. ARIEL & SHERYLL JANE 740,000.00 22,200.00 P-298 P-873 PACA 4 SHERYLL ALVAREZ 692,000.00 20,760.00 P-299 P-874 1ST QUARTER 2,798,484.00 83,954.52 5 MICHAEL DE JESUS 707,684.00 21,230.52 P-300 P-875 6 SPS. JAIME & LINA CALLANO 655,032.00 19,650.96 P-301 P-876 7 SPS. RUTH & ALBERT ROMANO 586,800.00 17,604.00 P-302 P-877 8 SPS. ROMEO & PATRICIA RACAL 598,500.00 17,955.00 P-303 P-878 2ND QUARTER 2,548,016.00 76,440.48 9 SPS. EDWIN & RONALYN 498,085.00 7,471.28 P-304 P-879 ASTORGA 10 SPS. LEA & JERRY MEDRANO 808,400.00 24,252.00 P-305 P-880 11 SPS. LUZVIMINDA & EDGARDO 814,000.00 24,420.00 P-306 P-881 PEREY 3RD QUARTER 2,120,485.00 56,143.28 12 SPS. WILLIAM & MINDA AGOJO 1,665,994.00 49,979.82 P-307 P-882 4TH QUARTER 1,665,994.00 49,979.82 TOTAL 9,132,979.00 266,518.10 F. INSTALLMENT SALES OF PRIOR YEAR FULLY SETTLED IN YEAR 2011 1 SPS. JUNE & FLORDELIZA CULLA 2,523,214.29 126,160.71 P-308 P-883 2ND QUARTER 2,523,214.29 126,160.71 2 SPS. ALEJANDRO & VANESSA 750,000.00 22,500.00 P-309 P-884 SANTOS 3RD QUARTER 750,000.00 22,500.00 TOTAL 3,273,214.29 148,660.71 G. BANK FINANCING ACCOUNTS 1 SPS. EFREN & LILIBETH 2,320,200.00 116,010.00 P-310 P-885 TERRENAL 2 SPS. MARIA LEONOR & RAUL 1,440,000.00 43,200.00 P-311 P-886 4TH QUARTER 3,760,200.00 159,210.00 TOTAL 3,760,200.00 159,210.00 GRAND TOTAL 351,176,761.27 13,654,157.00 ============= ============= The Court notes that the income payments represented by BIR Form Nos. 2307, 1606, and 2313, which were vouched and summarized by the Independent CPA as shown above amounted to P351,176,761.27, with taxes withheld totaling P13,654,157.00. However, upon the Court's scrutiny of the BIR Forms No. 2307 that were furnished to the Court, it is found that some of the copies are unclear due to photocopying limitations. The payor's and payee's names are completely unreadable in the photocopy. Likewise, the amount of income payment and tax withheld are blurred and unreadable. Hence, there were certificates that cannot be reasonably compared to the summary. Nonetheless, in the case of Philippine National Bank vs. Commissioner of Internal Revenue , 53 the Supreme Court held that the Withholding Tax Remittance Return (BIR Form No. 1606) is sufficient in proving that taxes withheld from buyers were indeed remitted to the BIR, to wit: "In claims for excess and unutilized creditable withholding tax, the submission of BIR Forms 2307 is to prove the fact of withholding of the excess creditable withholding tax being claimed for refund. This is clear in the provision of Section 58.3, RR 2-98, as amended, and in various rulings of the Court. In the words of Section 2.58.3, RR 2-98, 'That the fact of withholding is established by a copy of a statement duly issued by the payor (withholding agent) to the payee showing the amount paid and the amount of tax withheld therefrom.' xxx xxx xxx It must be noted that PNB had already presented the Withholding Tax Remittance Returns (BIR Form No. 1606) relevant to the transaction. The said forms show that the amount of P74,400,028.49 was withheld and paid by PNB in the year 2003. It contains, among other data, the name of the payor and the payee, the description of the property subject of the transaction, and the determination of the taxable base, and the tax rate applied. These are the very same key information that would be gathered from BIR Form No. 2307. While perhaps it may be necessary to prove that the taxpayer did not use the claimed creditable withholding tax to pay for his/its tax liabilities, there is no basis in law or jurisprudence to say that BIR Form No. 2307 is the only evidence that may be adduced to prove such non-use." (Emphasis supplied) Thus, petitioner satisfied the second requirement and established the fact of withholding of the amount of P13,654,157.00. The Court now proceeds to determine whether the income from which the subject taxes were withheld was included and reported by petitioner in its Annual ITR. As indicated in the foregoing table, the claimed creditable withholding taxes of P13,654,157.00 were withheld from the income payments of P351,176,761.27 in 2010, from which petitioner allegedly realized and recognized a gross profit of P110,927,402.28 in its ITR for the year 2010, P52,753,526.91 in its ITR for prior years, and P6,098,766.67 in its ITR for the succeeding year 2011 based on the "Schedule of Sales Subjected to Creditable Withholding Tax in Taxable Year 2010, Amount of Tax Withheld and Corresponding Gross Profit Realized in 2010 and in Prior and Succeeding Years ITRs" 54 and other reconciliation schedules 55 submitted by petitioner. However, the Court finds these reconciliation schedules insufficient. Without the detailed general ledgers and the source documents upon which the reconciliation amounts were based as well as petitioner's Audited Financial Statements and Annual ITRs for prior years and 2011, this Court cannot ascertain whether the income payments related to the claimed CWT of P13,654,157.00 actually formed part of petitioner's taxable income in its Annual ITRs for 2010, 2011, and prior years. HEITAD It bears stressing that a claimant has the burden of proof to establish the factual basis of his or her claim for tax credit or refund. 56 Tax refunds are in the nature of tax exemptions. As such, they are regarded as in derogation of sovereign authority and to be construed strictissimi juris against the person or entity claiming the refund. 57 This Court finds that petitioner failed to comply with the requirements for refund or issuance of TCC of unutilized excess CWT, more specifically, its failure to sufficiently establish that the income from which the subject taxes were withheld was duly reported in its Annual ITR. Hence, the instant claim must be denied. WHEREFORE ,premises considered, the instant Petition for Review is hereby DENIED for insufficiency of evidence. SO ORDERED. (SGD.) AMELIA R. COTANGCO-MANALASTAS Associate Justice Juanito C. Castaeda, Jr.,J. ,concurs. Caesar A. Casanova, J. ,is on wellness leave. Footnotes 1. Petition for Review, docket, vol. I, pp. 15-16. 2. Pars. 7 and 9, Joint Stipulation of Facts, docket, vol. II, p. 1057. 3. Pars. 8 and 11, Joint Stipulation of Facts, docket, vol. II, p. 1057. 4. Pars. 12 and 13, Joint Stipulation of Facts, docket, vol. II, p. 1057. 5. Par. 14, Joint Stipulation of Facts, docket, vol. II, p. 1057. 6. Docket, vol. I, pp. 6-17. 7. Court Resolution dated August 7, 2013, docket, vol. II, pp. 967-968. 8. Docket, vol. II, pp. 938-948. 9. Docket, vol. II, pp. 953-962. 10. Notice of Pre-Trial Conference, docket, vol. II, p. 969. 11. Docket, vol. II, pp. 973-983. 12. Docket, vol. II, pp. 1012-1015. 13. Court Resolution dated October 17, 2013, docket, vol. II, p. 1055. 14. Docket, vol. II, pp. 1056-1060. 15. Docket, vol. II, pp. 1061-1063. 16. Exhibit "P-1506",docket, vol. III, pp. 1202-1221. 17. Exhibits "P-1399" and "P-1417",docket, vol. IV, pp. 2273-2302 and 2309-2313, respectively. 18. Docket, vol. IV, pp. 2315-2323. 19. Docket, vol. IV, pp. 2522-2523. 20. Docket, vol. IV, pp. 2527-2532. 21. Docket, vol. V, pp. 2770-2772. 22. Docket, vol. V, pp. 2776-2781. 23. Docket, vol. V, pp. 2879-2881. 24. Minutes of the February 18, 2015 Hearing, docket, vol. V, p. 2882. 25. Docket, vol. V, pp. 2890-2893. 26. Docket, vol. V, pp. 2986-2987. 27. Court Resolution dated July 29, 2015, docket, vol. V, p. 2989. 28. Docket, vol. V, pp. 2906-2951. 29. Docket, vol. V, p. 2984. 30. Systra Philippines, Inc. vs. Commissioner of Internal Revenue , G.R. No. 176290, September 21, 2007. 31. Ibid. 32. Republic of the Philippines, represented by the Commissioner of Internal Revenue vs. Team (Phils.) Energy Corporation (formerly Mirant (Phils.) Energy Corporation) , G.R. No. 188016, January 14, 2015. 33. Exhibit "P-5",docket, vol. V, pp. 2693-2695. 34. Ibid. ,Line 30H. 35. Ibid. , Line 30A. 36. Ibid. , Lines 30C. 37. Ibid. , Lines 30D. 38. Ibid. , Line 29. 39. Ibid. ,Line 33. 40. Ibid. ,Line 33; the copy of the 2010 Annual ITR on record shows a faint white spot inside the circle for the option "To be refunded". 41. Exhibit "P-1398",docket, vol. I, p. 29. 42. Exhibit "P-6",Line 31A, docket, vol. V, p. 2702. 43. United International Pictures AB vs. Commissioner of Internal Revenue , G.R. No. 168331, October 11, 2012, Citibank N.A. vs. Court of Appeals, et al. , G.R. No. 107434, October 10, 1997 and Section 2.58.3, Revenue Regulations No. 2-98, as amended. 44. ACCRA Investments Corporation vs. The Honorable Court of Appeals, et al. , G.R. No. 96322, December 20, 1991. 45. Commissioner of Internal Revenue vs. TMX Sales, Inc. and the Court of Tax Appeals , G.R. No. 83736, January 15, 1992. 46. Exhibit "P-5",docket, vol. V, pp. 2693-2695. 47. Exhibit "P-1",docket, vol. III, pp. 1222-1223. 48. Exhibits "P-8" to "P-311". 49. Exhibits "P-584" to "P-618","P-620" to "P-634","P-636" to "P-715","P-717" to "P-720","P-722" to "P-777","P-779" to "P-793" "P-796" to "P-803","P-805" to "P-828",and "P-830" to "P-886". 50. Exhibits "P-619","P-635","P-716","P-721","P-778","P-794","P-795","P-804",and "P-829". 51. Exhibits "P-1414" to "P-1416",docket, vol. IV, pp. 2533-2646. 52. Docket, vol. IV, pp. 2471-2472. 53. G.R. No. 206019, March 18, 2015. 54. Exhibit "P-888",docket, vol. IV, 2562. 55. Attached to Exhibit "P-1416" as Annexes "O-1","O-2","O-3","O-4","O-5","O-6","O-7","O-8",and "O-9". 56. Citibank, N.A. vs. Court of Appeals, et al. , G.R. No. 107434, October 10, 1997. 57. Commissioner of Internal Revenue vs. S.C. Johnson & Son, Inc., et al. , G.R. No. 127105, June 25, 1999.