Deutsche Knowledge Services Pte., Ltd. v. Commissioner of Internal Revenue

FIRST DIVISION [C.T.A. CASE NO. 8861. July 10, 2017.] For: Refund DEUTSCHE KNOWLEDGE SERVICES PTE.,LTD. , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . DECISION MINDARO-GRULLA , J p : This is a Petition for Review filed by Deutsche Knowledge Services Pte., Ltd. as petitioner, against Commissioner of Internal Revenue as respondent, before the Court in Division, pursuant to Section 7 (a) (2) of Republic Act (RA) No. 1125, An Act Creating the Court of Tax Appeals, as amended, 1 as well as Rule 4, Section 3 (a) (2), in relation to Rule 8, Section 4 (a) of the Revised Rules of the Court of Tax Appeals (RRCTA), 2 as amended. CAIHTE Petitioner seeks for refund or issuance of tax credit certificate in the amount of P20,881,608.09, allegedly representing petitioner's excess and unutilized input value-added tax (VAT) on purchases of goods and services attributable to its zero-rated sales for the 1st quarter of calendar year (CY) 2013. Petitioner Deutsche Knowledge Services Pte.,Ltd. is the Philippine branch of a multinational company organized and existing under and by virtue of the laws of Singapore, with registered office address at One Raffles Quay, #17-10 South Tower, Singapore 048583. 3 It was registered with the Bureau of Internal Revenue (BIR) on June 16, 2005 as a VAT taxpayer with Taxpayer Identification No. (TIN) 238-763-115-000. 4 Petitioner is licensed to do business as a regional operating headquarters (ROHQ) in the Philippines by the Securities and Exchange Commission (SEC), pursuant to the Omnibus Investments Code of 1987, as amended by Republic Act No. 8756 and its implementing rules and regulations, to engage in general administration and planning; business planning and coordination; sourcing/procurement of raw materials and components; corporate finance advisory services; marketing control and sales promotion; training and personnel management; logistic services; research and development services and product development; technical support and maintenance; data processing; and communication and business development. 5 On the other hand, respondent is the duly appointed Commissioner of the Bureau of Internal Revenue empowered to perform the duties of his office, including, among others, the duty to act upon and approve claims for refund or tax credit as provided by law. He holds office at the 5th Floor, BIR National Office Building, Agham Road, Diliman, Quezon City. On April 18, 2013, petitioner filed with the BIR, through eFiling and Payment System (eFPS),its Quarterly VAT Return for the 1st quarter of CY 2013. 6 On March 13, 2014, 7 petitioner filed with the BIR-Large Taxpayers Regular Audit Division 3 (LTRAD 3) an Application for Tax Credits/Refund (BIR Form No. 1914) of its excess and unutilized input VAT for the 1st quarter of CY 2013 in the total amount of P20,881,608.09. 8 aScITE To date, respondent had not acted with finality on petitioner's administrative claim for refund of unutilized input VAT for the 1st quarter of CY 2013. 9 Hence, this instant Petition for Review was filed on August 8, 2014. In his Answer 10 filed on September 9, 2014, respondent interposed the following Special and Affirmative Defenses: "4. Petitioner's alleged claim for refund is subject to administrative routinary investigation/examination by the Bureau; 5. The amount of P20,881,608.09, representing alleged excess and unutilized input VAT on purchases of goods and services attributable to its zero-rated sales for the 1st quarter of calendar year 2013 was not properly documented. 6. In an action for refund, the burden of proof is on the taxpayer to establish its right to refund and failure to sustain the burden is fatal to the claim for refund/credit. 7. Petitioner must show that it has complied with the provisions of Section 112 of the NIRC of 1997 on the prescriptive period for claiming tax refund/credit. 8. Petitioner must prove that it paid the alleged VAT input taxes for the periods stated. 9. Petitioner must prove that its sale of services is subject to VAT at zero percent (0%). 10. Petitioner must prove that its alleged unutilized input VAT has not been applied against any output tax liabilities both in the current or succeeding year. 11. There is no record of petitioner ever submitting complete documents to substantiate its administrative claim for refund. Such is a requirement, otherwise, the administrative body will have sufficient reason to deny the claim. As held by the Honorable Supreme Court in the case of Atlas Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue, G.R. 145526, 16 March 2007 : DETACa xxx xxx xxx 11. The implementing rule for these complete documents required by law is RMO No. 53-98. Annex B-1 of said RMO lists all the required documents as follows: xxx xxx xxx 12. As stated above, the first documentary requirement is that provided in Annex B of the said RMO. Annex B provides for more requirements as follows: xxx xxx xxx 13. Far from complying with the checklist of requirements, petitioner merely submitted eleven (11) documents in support of its administrative claim for refund. This is not a claim for erroneously or illegally collected taxes where petitioner has the discretion of choosing the evidence it deems fit to prove its case. This is a claim for excess but legally collected, unutilized input taxes. It does not have to prove its case because the law already acknowledges it is entitled to refund. Thus, it merely has to substantiate the export sales and the excess amount. Hence, petitioner's failure to comply with the duly mandated legal requirements in such claims for refund/tax credit warranted the denial by inaction of the administrative claim. 14. The power to tax is the most effective instrument to raise needed revenues to finance and support myriad activities of the government for the delivery of basic services essential to the promotion of the general welfare and enhancement of peace, progress, and prosperity of the people. (Mactan Cebu International Airport Authority vs. Marcos, 261 SCRA 667, 690) .Consequently, any delay in implementing tax measures would be to the detriment of the public. It is for this reason that claims for refund are required to be done within certain time frames. In the instant petition, the failure of petitioner to comply with such periods is fatal to its cause. 15. Moreover, petitioner's failure to submit documents supporting its claim for refund makes its administrative claim for refund pro-forma .This pro-forma administrative claim should not be taken as proper compliance with the requirements of the law that an administrative claim for refund should have been filed prior to the institution of a judicial claim for refund. Thus, without a validly and duly filed administrative claim for refund, the Honorable Court is without jurisdiction to entertain the Petition for Review. Petitioner's failure to comply with a condition precedent prior to the institution of its petition for review makes it dismissible for absence of jurisdiction on the part of the Honorable Court. HEITAD 16. The claimant has the burden of proof to establish the factual basis of his claim for tax credit or refund. After all tax refunds, like tax exemptions, are construed strictly against the taxpayer (Citibank N.A. vs. Court of Appeals and Commissioner of Internal Revenue, 280 SCRA 459; Commissioner of Internal Revenue vs. Tokyo Shipping Co.,Ltd.,244 SCRA 332, both cited in Benguet Corporation vs. Commissioner of Internal Revenue, CTA Case No. 5392 promulgated October 30, 1998) . 17. Partaking of the nature of exemptions, claims for refund are strictly construed against the claimant and cannot be allowed unless granted in the most explicit and categorical language (Sps. Aguilar vs. Commissioner of Internal Revenue, et al.,CA G.R. SP No. 16432, March 30, 1999) .Being in the nature of tax exemptions, these claims are regarded as in derogation of sovereign authority and to be construed strictissimi juris against the claimant and liberally in favor of the taxing authority (Commissioner of Internal Revenue vs. Procter and Gamble Philippines Manufacturing Corporation, 204 SCRA 377) . 18. Claims for refund are construed strictly against the claimant for the same partake the nature of exemption from taxation (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA 95) and such, they are looked upon with disfavor (Western Minolco Corp. vs. Commissioner of Internal Revenue, 124 SCRA 1211) ." A Notice of Pre-Trial Conference was issued by the Court on September 15, 2014, setting the case for pre-trial conference on November 6, 2014. 11 Accordingly, Respondent's Pre-Trial Brief 12 was filed on September 25, 2014; while petitioner's Pre-Trial Brief 13 was filed on October 31, 2014. Pre-trial conference ensued. The parties submitted their Joint Stipulation of Facts and Issues 14 on December 9, 2014. Thereafter, on January 29, 2015, the Court issued a Pre-Trial Order 15 adopting the parties' joint stipulations and the pre-trial was deemed terminated. Meanwhile, upon petitioner's motion, 16 this Court commissioned Ms. Katherine O. Constantino as the Independent Certified Public Accountant (CPA) for the case. 17 aDSIHc During trial, petitioner presented (1) Ms. Rachel Concepcion, 18 petitioner's Legal Entity Controller; and (2) Ms. Katherine O. Constantino, 19 the Independent CPA, as its witnesses. Petitioner filed its Formal Offer of Evidence 20 on May 14, 2015. In the Resolutions dated August 28, 2015, 21 December 18, 2015, 22 and August 4, 2016, 23 the Court admitted all of petitioner's evidence except for Exhibits "P-6.20","P-8.25" to "P-8.27", 24 "P-8.29" to "P-8.32","P-8.34",and "P-8.37". Petitioner's documentary evidence are as follows: Exhibit Description P-1 Petitioner's Securities and Exchange Commission (SEC) Certificate of Registration and License dated April 25, 2005 (S.E.C. Reg. No. FS2005506950) P-2 Petitioner's Certificate of Registration issued by the Bureau of Internal Revenue (BIR) P-3 Original Quarterly VAT Return for the 1st Quarter of CY 2013, filed on April 18, 2013 with filing reference no. 101300007197460 P-3.1 Original Quarterly VAT Return for the 2nd Quarter of CY 2013, filed on July 19, 2013 with filing reference no. 101300007570564 P-3.2 Original Quarterly VAT Return for the 3rd Quarter of CY 2013, filed on October 18, 2013 with filing reference no. 101300007952415 P-3.3 Original Quarterly VAT Return for the 4th Quarter of CY 2013, filed on January 21, 2014 with filing reference no. 101400008384284 P-3.4 Amended Quarterly VAT Return for the 4th Quarter of CY 2013, filed on January 23, 2014 with filing reference no. 101400008398108 P-3.5 Original Quarterly VAT Return for the 1st Quarter of CY 2014, filed on April 21, 2014 with filing reference no. 101400008874963 P-3.6 Original Quarterly VAT Return for the 2nd Quarter of CY 2014, filed on July 21, 2014 with filing reference no. 101400009334461 P-3.7 Amended Quarterly VAT Return for the 2nd Quarter of CY 2014, filed on October 15, 2014 with filing reference no. 10140000989213 P-4 Petitioner's Application for Tax Credits/Refunds (BIR Form No. 1914) for the 1st quarter of CY 2013 filed with the BIR on March 13, 2014 P-4-a Petitioner's Letter-Claim for Refund of its unutilized input VAT for the 1st Quarter of CY 2013 dated March 13, 2014 and filed with the BIR on even date P-5 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Inlandsbank issued by the SEC P-5.1 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Amsterdam issued by the Securities and Exchange Commission P-5.2 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Riad issued by the Securities and Exchange Commission P-5.3 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Dubai (DIFC) issued by the Securities and Exchange Commission P-5.4 Certification of Non-Registration in the Philippines of Deutsche Bank Sociedad Anonima Espanola issued by the Securities and Exchange Commission P-5.5 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Zurich issued by the Securities and Exchange Commission P-5.6 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Wien issued by the Securities and Exchange Commission P-5.7 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Asia Pacific Head Office issued by the Securities and Exchange Commission P-5.8 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Singapur issued by the Securities and Exchange Commission P-5.9 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Bangkok issued by the Securities and Exchange Commission P-5.10 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Mumbai issued by the Securities and Exchange Commission P-5.11 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Hong Kong issued by the Securities and Exchange Commission P-5.12 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Jakarta issued by the Securities and Exchange Commission P-5.13 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Ho-Chi Minh City issued by the Securities and Exchange Commission P-5.14 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Seoul issued by the Securities and Exchange Commission P-5.15 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Labuan issued by the Securities and Exchange Commission P-5.16 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Brussel issued by the Securities and Exchange Commission P-5.17 Certification of Non-Registration in the Philippines of Deutsche Bank (Malaysia) Berhad issued by the Securities and Exchange Commission P-5.18 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale New York issued by the Securities and Exchange Commission P-5.19 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale London issued by the Securities and Exchange Commission P-5.20 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Tokyo issued by the Securities and Exchange Commission P-5.21 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Paris issued by the Securities and Exchange Commission P-5.22 Certification of Non-Registration in the Philippines of Deutsche Bank Aktiengesellschaft Filiale Prague issued by the Securities and Exchange Commission P-5.23 Certification of Non-Registration in the Philippines of Deutsche Bank Luxembourg S.A. issued by the Securities and Exchange Commission P-5.24 Certification of Non-Registration in the Philippines of Deutsche Securities, Inc. issued by the Securities and Exchange Commission P-5.25 Certification of Non-Registration in the Philippines of Deutsche Bank PBC Spolka Akcyjna issued by the Securities and Exchange Commission P-5.26 Certification of Non-Registration in the Philippines of Deutsche Bank Suisse SA issued by the Securities and Exchange Commission P-5.27 Certification of Non-Registration in the Philippines of Deutsche Bank Societa Per Azioni issued by the Securities and Exchange Commission P-5.28 Certification of Non-Registration in the Philippines of Deutsche Asset Management Investmentgesselchaft issued by the Securities and Exchange Commission P-5.29 Certification of Non-Registration in the Philippines of Deutsche Bank China Co.,Ltd. Shanghai Branch issued by the Securities and Exchange Commission P-5.30 Certification of Non-Registration in the Philippines of DWS Holding and Service Gmbh issued by the Securities and Exchange Commission P-5.31 Certification of Non-Registration in the Philippines of RREEF Management Gmbh issued by the Securities and Exchange Commission P-5.32 Certification of Non-Registration in the Philippines of Deutsche Bank Real Estate (Japan) YK issued by the Securities and Exchange Commission P-5.33 Certification of Non-Registration in the Philippines of RREEF Management LLC issued by the Securities and Exchange Commission P-5.34 Certification of Non-Registration in the Philippines of Deutsche Bank Securities, Inc. issued by the Securities and Exchange Commission P-5.35 Certification of Non-Registration in the Philippines of Deutsche Asia Pacific Holdings Pte. Ltd. issued by the Securities and Exchange Commission P-5.36 Certification of Non-Registration in the Philippines of PT Deutsche Securities Indonesia issued by the Securities and Exchange Commission P-5.37 Certification of Non-Registration in the Philippines of Deutsche Group Services Pty Limited issued by the Securities and Exchange Commission P-5.38 Certification of Non-Registration in the Philippines of Deutsche Bank Trust Company Americas issued by the Securities and Exchange Commission P-5.39 Certification of Non-Registration in the Philippines of DB Services New Jersey, Inc. issued by the Securities and Exchange Commission P-5.40 Certification of Non-Registration in the Philippines of DB International (Asia) Limited issued by the Securities and Exchange Commission P-5.41 Certification of Non-Registration in the Philippines of DBOI Global Services Private Limited issued by the Securities and Exchange Commission P-5.42 Certification of Non-Registration in the Philippines of Global Markets Centre Private Limited issued by the Securities and Exchange Commission P-5.43 Certification of Non-Registration in the Philippines of Deutsche Trustees Malaysia Berhad issued by the Securities and Exchange Commission P-5.44 Certification of Non-Registration in the Philippines of DB Consorzio S. Cons. a.r.l. issued by the Securities and Exchange Commission P-6 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Inlandsbank P-6.1 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Johannesburg P-6.2 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Amsterdam P-6.3 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Riad P-6.4 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Dubai (DIFC) P-6.5 IntraGroup Service Agreement between Petitioner and OOO Deutsche Bank P-6.6 IntraGroup Service Agreement between Petitioner and Deutsche Bank Sociedad Anonima Espanola P-6.7 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Zurich P-6.8 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Wien P-6.9 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Asia Pacific Head Office P-6.10 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Singapur P-6.11 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Bangkok P-6.12 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Mumbai P-6.13 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Hong Kong P-6.14 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Jakarta P-6.15 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Ho-Chi Minh City P-6.16 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Seoul P-6.17 IntraGroup Service Agreement between Petitioner and Deutsche Bank (Malaysia) Berhad, Deutsche Bank Aktiengesellschaft Filiale Labuan, DB Trustees Malaysia Berhad, et al. P-6.18 IntraGroup Service Agreement between Petitioner and DWS Investment SA P-6.19 Amendment to UK DKS Schedules of Services P-6.21 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale London P-6.22 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Tokyo P-6.23 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Paris P-6.24 IntraGroup Service Agreement between Petitioner and Deutsche Bank Aktiengesellschaft Filiale Prague P-6.25 IntraGroup Service Agreement between Petitioner and Deutsche Bank Luxembourg SA P-6.26 IntraGroup Service Agreement between Petitioner and Deutsche Securities, Inc. P-6.27 IntraGroup Service Agreement between Petitioner and Deutsche Bank Polska Spolka Akcyjna P-6.28 IntraGroup Service Agreement between Petitioner and Deutsche Bank Suisse SA P-6.29 IntraGroup Service Agreement between Petitioner and Deutsche Bank Societa Per Azioni P-6.30 IntraGroup Service Agreement between Petitioner and Deutsche Bank China Co. Ltd. P-6.31 IntraGroup Service Agreement between Petitioner and DWS Holding and Service GMBH P-6.32 IntraGroup Service Agreement between Petitioner and RREEF Management GMBH P-6.33 IntraGroup Service Agreement between Petitioner and Deutsche Bank Real Estate (Japan) YK P-6.34 IntraGroup Service Agreement between Petitioner and Deutsche Asset Management Korea Company Limited P-6.35 IntraGroup Service Agreement between Petitioner and Deutsche Asia Pacific Holdings Pte. Ltd. P-6.36 IntraGroup Service Agreement between Petitioner and PT Deutsche Securities Indonesia P-6.37 IntraGroup Service Agreement between Petitioner and Deutsche Group Services Pty Limited P-6.38 IntraGroup Service Agreement between Petitioner and Deutsche Bank Polska S.A. P-6.39 IntraGroup Service Agreement between Petitioner and Deutsche Securities Korea Co. P-6.40 IntraGroup Service Agreement between Petitioner and DB International (Asia) Limited P-6.41 IntraGroup Service Agreement between Petitioner and DBOI Global Services Private Limited P-6.42 IntraGroup Service Agreement between Petitioner and Global Markets Centre Private Limited/Deutsche CIB Centre Private Limited P-6.43 IntraGroup Service Agreement between Petitioner and Deutsche Bank Netherlands N.V. P-6.44 IntraGroup Service Agreement between Petitioner and DB Consorzio S. Cons. a.r.l. P-7 Authenticated Company Registration Document of Deutsche Bank Aktiengesellschaft Inlandsbank P-7.1 Authenticated Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Hongkong P-7.2 Authenticated Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Jakarta P-7.3 Authenticated Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale London P-7.4 Authenticated Company Registration Document of Deutsche Securities, Inc. P-7.5 Authenticated Company Registration Document of Deutsche Asia Pacific Holdings Pte. Ltd. P-7.6 Authenticated Company Registration Document of Deutsche Group Services Pty Limited P-8 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Johannesburg stored in AMInet P-8.1 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Riad stored in AMInet P-8.2 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Dubai (DIFC) stored in AMInet P-8.3 Company Registration Document of OOO Deutsche Bank stored in AMInet P-8.4 Company Registration Document of Deutsche Bank Sociedad Anonima Espanola stored in AMInet P-8.5 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Zurich stored in AMInet P-8.6 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Singapur stored in AMInet P-8.7 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Bangkok stored in AMInet P-8.8 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Mumbai stored in AMInet P-8.9 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Hongkong stored in AMInet P-8.10 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Jakarta stored in AMInet P-8.11 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Ho-Chi-Minh City stored in AMInet P-8.12 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Seoul stored in AMInet P-8.13 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Labuan stored in AMInet P-8.14 Company Registration Document of DWS Investment SA stored in AMInet P-8.15 Company Registration Document of Deutsche Bank Americas Holding Corp. stored in AMInet P-8.16 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Brussel stored in AMInet P-8.17 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale London stored in AMInet P-8.18 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Tokyo stored in AMInet P-8.19 Company Registration Document of Deutsche Bank Aktiengesellschaft Filiale Paris stored in AMInet P-8.20 Company Registration Document of Deutsche Bank Luxembourg SA stored in AMInet P-8.21 Company Registration Document of Deutsche Securities, Inc. stored in AMInet P-8.22 Company Registration Document of Deutsche Bank Societa Per Azioni stored in AMInet P-8.23 Company Registration Document of DWS Holding and Service GMBH stored in AMInet P-8.24 Company Registration Document of RREEF Management GMBH stored in AMInet P-8.33 Company Registration Document of Deutsche Securities Korea Co. stored in AMInet P-8.34 Company Registration Document of Deutsche Bank Trust Company Americas stored in AMInet P-8.36 Company Registration Document of DB Energy Trading LLC stored in AMInet P-8.38 Company Registration Document of Global Markets Centre Private Limited/Deutsche CIB Centre Private Limited stored in AMInet P-8.39 Company Registration Document of Deutsche Trustees Malaysia Berhad stored in AMInet P-8.40 Company Registration Document of Deutsche Bank Netherlands N.V. stored in AMInet P-8.41 Company Registration Document of DB Consorzio S. Cons. a.r.l. stored in AMInet P-9 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Inlandsbank P-9.1 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Johannesburg P-9.2 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Amsterdam P-9.3 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Riad P-9.4 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Dubai (DIFC) P-9.5 Original computer printout of AMInet Company Profile Fact Sheet of OOO Deutsche Bank P-9.6 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Sociedad Anonima Espanola P-9.7 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Zurich P-9.8 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Wien P-9.9 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Asia Pacific Head Office P-9.10 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Singapur P-9.11 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Bangkok P-9.12 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Mumbai P-9.13 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Hongkong P-9.14 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Jakarta P-9.15 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Ho-Chi-Minh City P-9.16 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Seoul P-9.17 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Labuan P-9.18 Original computer printout of AMInet Company Profile Fact Sheet of DWS Investment SA P-9.19 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Americas Holding Corp. P-9.20 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Brussel P-9.21 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank (Malaysia) Berhad P-9.22 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale New York P-9.23 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale London P-9.24 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Tokyo P-9.25 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Paris P-9.26 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Aktiengesellschaft Filiale Prague P-9.27 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Luxembourg SA P-9.28 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Securities, Inc. P-9.29 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Polska Spolka Akcyjna P-9.30 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Suisse SA P-9.31 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Societa Per Azioni P-9.32 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Asset Management Investmentgesselchaft mbH vormals DEGEF Deutsche Gesellschaft fr Fondsverwaltung P-9.33 Original computer printout of Deutsche Bank China Co. Ltd. Shanghai Branch P-9.34 Original computer printout of AMInet Company Profile Fact Sheet of DWS Holding and Service GMBH P-9.35 Original computer printout of AMInet Company Profile Fact Sheet of RREEF Management GMBH P-9.36 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Real Estate (Japan) YK P-9.37 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Investment Management Americas, Inc. P-9.38 Original computer printout of AMInet Company Profile Fact Sheet of RREEF Management LLC P-9.39 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Asset Management Korea Company Limited P-9.40 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Securities, Inc. P-9.41 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Asia Pacific Holdings Pte. Ltd. P-9.42 Original computer printout of AMInet Company Profile Fact Sheet of PT Deutsche Securities Indonesia P-9.43 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Group Services Pty Limited P-9.44 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank PBC Spolka Akcyjna P-9.45 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Securities Korea Co. P-9.46 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Trust Company Americas P-9.47 Original computer printout of AMInet Company Profile Fact Sheet of DB Services New Jersey, Inc. P-9.48 Original computer printout of AMInet Company Profile Fact Sheet of DB Investment Partners, Inc. P-9.49 Original computer printout of AMInet Company Profile Fact Sheet of Bankers International Corporation P-9.50 Original computer printout of AMInet Company Profile Fact Sheet of DB International (Asia) Limited P-9.51 Original computer printout of AMInet Company Profile Fact Sheet of DB Energy Trading LLC P-9.52 Original computer printout of AMInet Company Profile Fact Sheet of DBOI Global Services Private Limited P-9.53 Original computer printout of AMInet Company Profile Fact Sheet of Global Markets Centre Private Limited/Deutsche CIB Centre Private Limited P-9.54 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Trustees Malaysia Berhad P-9.55 Original computer printout of AMInet Company Profile Fact Sheet of Deutsche Bank Netherlands N.V. P-9.56 Original computer printout of AMInet Company Profile Fact Sheet of DB Consorzio S. Cons. a.r.l. P-10 Deutsche Bank Comprehensive List of Shareholdings 2013 (Gesamtverzeichnis des Anteilsbesitzes 2013) P-11 Sworn Statement of Ms. Rachel Concepcion to Questions Propounded by Atty. Nathan Michael O. Pico dated October 31, 2014 P-11-a Signature of Ms. Concepcion as found in her Sworn Statement dated October 31, 2014 P-12 Petitioner's Independent CPA Report dated March 2, 2015 P-12-1 Signature of Ms. Constantino P-13 Sales Schedule P-14 Printer's Certificate of Delivery and/or Invoices dated March 20, 2012 P-15 Summary of Purchases P-16 Reconciliation schedule of input VAT P-17 Schedule of Amortization of Input VAT P-18 Journal Entries on Input Tax in Capital Goods P-19 Monthly VAT Return for January 2013 filed on February 19, 2013 with filing reference no. 091300006959006 P-20 Monthly VAT Return for February 2013 filed on March 12, 2013 with filing reference no. 091300007050156 P-21 Certificate of Inward Remittance dated October 25, 2013 P-22 Authority to Print with OCN No. 8AU0000168406 dated March 20, 2012 covering official receipts serial numbers 1203 to 1405 P-23 Amended Quarterly VAT Return for the 3rd Quarter of CY 2014, filed on January 20, 2015 with filing reference no. 101500010378365 P-24 Quarterly VAT Return for the 4th Quarter of CY 2014, filed on January 23, 2015 with filing reference no. 101500010401784 P-25 Sales Invoice No. 115913 of Accent Micro Technologies, Inc. dated November 3, 2010 issued to Petitioner P-26 Third Amended and Restated Schedule of Services for Project DKS TOV FAS Asset Management Americas P-27 IntraGroup Service Agreement of Deutsche Bank PBC S.A. and Petitioner P-28 Third Amended and Restated Schedule of Services for Project DKS TOV FAS Asset Management Americas P-29 Third Amended and Restated Schedule of Services for Project DKS TOV FAS Asset Management Americas P-30 Third Amended and Restated Schedule of Services for Project DKS TOV FAS Asset Management Americas P-31 Certificate of Non-Registration of Bankers International Corporation issued by the Securities and Exchange Commission P-32 Certificate of Non-Registration of DB Energy Trading LLC issued by the Securities and Exchange Commission P-33 Sales Invoice No. 113013 of Accent Micro Technologies, Inc. dated August 6, 2010 issued to Petitioner P-34 Certificate of Non-Registration of Deutsche Asset Management Korea Company Limited issued by the Securities and Exchange Commission P-35 Certificate of Non-Registration of Deutsche Bank Aktiengesellschaft n Inlandsbank Filiale Johannesburg South Africa issued by the Securities and Exchange Commission P-36 Certificate of Non-Registration of Deutsche Bank Americas Holding Corp. issued by the Securities and Exchange Commission P-37 Certificate of Non-Registration of Deutsche Bank Netherlands N.V. issued by the Securities and Exchange Commission P-38 Certificate of Non-Registration of Deutsche Bank Polska Spolka Akcyjna issued by the Securities and Exchange Commission P-39 Certificate of Non-Registration of Deutsche Investment Management Americas, Inc. issued by the Securities and Exchange Commission P-40 Certificate of Non-Registration of Deutsche Securities Korea Co. issued by the Securities and Exchange Commission P-41 Certificate of Non-Registration of DWS Investment SA issued by the Securities and Exchange Commission P-42 Certificate of Non-Registration of OOO Deutsche Bank issued by the Securities and Exchange Commission P-43 Certificate of registration of the Corporation/Association Duly Consularized with the Philippine Consulate of DB International (Asia) Limited P-44 Certificate of registration of the Corporation/Association Duly Consularized with the Philippine Consulate of Deutsche Bank (Malaysia) Berhad P-45 Certificate of registration of the Corporation/Association Duly Consularized with the Philippine Consulate of Deutsche Bank Aktiengesellschaft, Asia Pacific Head Office P-46 Certificate of registration of the Corporation/Association Duly Consularized with the Philippine Consulate of Deutsche Bank AG New York Branch P-47 Certificate of registration of the Corporation/Association Duly Consularized with the Philippine Consulate of Deutsche Bank Aktiengesellschaft, Seoul Branch P-48 Certificate of registration of the Corporation/Association Duly Consularized with the Philippine Consulate of Deutsche Bank Aktiengesellschaft P-49 Certificate of registration of the Corporation/Association Duly Consularized with the Philippine Consulate of Deutsche Bank Securities, Inc. P-50 Sales Invoice No. 114022 of Accent Micro Technologies, Inc. dated August 27, 2010 issued to Petitioner P-51 Sales Invoice No. 115040 of Accent Micro Technologies, Inc. dated November 4, 2010 issued to Petitioner P-52 to P-226 Official Receipts with Attached Invoices Zero-Rated Sales P-227 to P-229 Official Receipts with Attached Invoices Vatable 12% Sales P-230 to 736 Official Receipts with Attached Invoices Input VAT supports for Purchase of Services, Goods Other than Capital Goods, Capital Goods Not Exceeding P1 Million, Capital Goods Exceeding P1 Million and Services Rendered by Non Resident Citizens P-737 Sales Invoice No. 117706 of Accent Micro Technologies, Inc. dated January 18, 2011 issued to Petitioner P-738 Sales Invoice No. 11703 of Accent Micro Technologies, Inc. dated January 18, 2011 issued to Petitioner P-739 Sales Invoice No. 117705 of Accent Micro Technologies, Inc. dated January 18, 2011 issued to Petitioner P-740 to P-756 Official Receipts with Attached Invoices Input VAT supports for Purchase of Services, Goods Other than Capital Goods, Capital Goods Not Exceeding P1 Million, Capital Goods Exceeding P1 Million and Services Rendered by Non Resident Citizens P-757 Sworn Statement of Ms. Katherine O. Constantino to Questions Propounded by Atty. Nathan Michael O. Pico dated April 1, 2015 P-757-a Signature of Ms. Katherine O. Constantino On the other hand, respondent manifested that he will no longer present evidence. 25 ATICcS The case was submitted for decision on August 4, 2016, 26 considering respondent's Memorandum 27 filed on September 28, 2015 and petitioner's Memorandum 28 filed on May 30, 2016. The parties submitted the following issue 29 for this Court's resolution: Whether or not petitioner is entitled to the claim for refund of or issuance of Tax Credit Certificate (TCC) for excess or unutilized input VAT in the amount of P20,881,608.09 for the 1st quarter of CY 2013. Petitioner anchors its claim on Section 108 (B) (2) in relation to Sections 110 (B) and 112 (A) and (C) of the National Internal Revenue Code (NIRC) of 1997, as amended, which state: "SEC. 108. Value-Added Tax on Sale of Services and Use or Lease of Properties . xxx xxx xxx (B) Transactions Subject to Zero Percent (0%) Rate . The following services performed in the Philippines by VAT-registered persons shall be subject to zero percent (0%) rate: (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 Pilipinas (BSP); SEC. 110. Tax Credits . xxx xxx xxx (B) Excess Output or Input Tax . If at the end of any taxable quarter the output tax exceeds the input tax, the excess shall be paid by the VAT-registered person. If the input tax exceeds the output tax, the excess shall be carried over to the succeeding quarter or quarters: x x x Provided, however ,That any input tax attributable to zero-rated sales by a VAT-registered person may at his option be refunded or credited against other internal revenue taxes, subject to the provisions of Section 112. 30 ETHIDa SEC. 112. Refunds or Tax Credits of Input Tax . (A) Zero-Rated or Effectively Zero-Rated Sales . Any VAT-registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax: Provided, however ,That in the case of zero-rated sales under Section 106(A)(2)(a)(1),(2) and (b) and Section 108(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 of properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales: Provided, finally ,That for a person making sales that are zero-rated under Section 108(B)(6),the input taxes shall be allocated ratably between his zero-rated and non-zero-rated sales. xxx xxx xxx (C) Period within which Refund or Tax Credit of Input Taxes shall be Made . In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsection (A) hereof. In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one-hundred-twenty-day period, appeal the decision or the unacted claim with the Court of Tax Appeals." From the foregoing provisions, in order to be entitled to a tax credit or refund of excess input VAT attributable to zero-rated or effectively zero-rated sales, the following requisites must be satisfied: TIADCc 1. that the taxpayer is VAT-registered; 2. that the claim for refund was filed within the prescriptive periods; 3. that there must be zero-rated or effectively zero-rated sales; 4. that input taxes were incurred or paid; 5. that such input taxes are attributable to zero-rated or effectively zero-rated sales; and 6. that the input taxes were not applied against any output VAT liability. First Requisite: The first requisite requires that the taxpayer is VAT-registered. In the JSFI, the parties agreed that petitioner was registered with the BIR on June 16, 2005 as VAT-registered taxpayer with Taxpayer Identification No. 238-763-115-000. 31 Second Requisite: The second requisite requires that the claim for refund/tax credit must be filed within the prescriptive period, both in the administrative and judicial levels. Petitioner's administrative claim for refund/tax credit is governed by Section 112 (A) of the NIRC of 1997, as amended, which categorically provides that the application for tax credit certificate/refund must be filed within two years after the close of the taxable quarter when the zero-rated or effectively zero-rated sales were made. The present claim covers the first quarter of CY 2013, which closed on March 31, 2013. Counting two years from the said date, petitioner had until March 31, 2015, within which to file its administrative claim for refund/tax credit. Thus, petitioner's administrative claim filed on March 13, 2014, 32 together with its supporting documents, with the LTRAD 3 of the BIR, was seasonably filed. On the other hand, the timeliness of petitioner's judicial appeal is governed by Section 112 (C) of the NIRC of 1997, as amended, which provides that the CIR has 120 days from the date of the submission of the complete documents in support of the application for refund/tax credit within which to grant or deny the claim. In case of full or partial denial by the CIR, the taxpayer's recourse is to file an appeal before the Court of Tax Appeals within 30 days from receipt of the decision of the CIR. However, if after the 120-day period the CIR fails to act on the application for refund/tax credit, the remedy of the taxpayer is to appeal the inaction of the CIR to the CTA within 30 days. cSEDTC Applying the foregoing to the present claim, from March 13, 2014, the date when petitioner filed its administrative claim and submitted its complete documents in support of its application for refund/tax credit certificate, respondent had 120 days, or until July 11, 2014 to decide on petitioner's claim. Considering that respondent did not act on petitioner's claim on or before July 11, 2014, the latter had until August 11, 2014, 33 the last day of the 30-day period, within which to file its judicial claim. Evidently, petitioner likewise seasonably filed its judicial claim when it filed the instant Petition for Review on August 8, 2014. Third Requisite: The third requisite requires that the taxpayer be engaged in zero-rated or effectively zero-rated sales under Sections 106 (A) (2) (a) (1),(2) and (b) and 108 (B) (1) and (2),and the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with Bangko Sentral ng Pilipinas (BSP) rules and regulations. In the case of Commissioner of Internal Revenue vs. 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 NIRC of 1997, as amended, the following requisites must be met: 1. the services must be other than processing, manufacturing or repacking of goods; 2. the 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. Petitioner satisfied the first requisite. It is undisputed that petitioner is licensed to do business as ROHQ in the Philippines by the SEC pursuant to the Omnibus Investments Code of 1987, as amended by Republic Act No. 8756 and its implementing rules and regulations, to engage in general administration and planning; business planning and coordination; sourcing/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 communication and business development. 35 Such services are not in the same category as "processing, manufacturing or repacking of goods." AIDSTE In compliance with the third requisite, petitioner presented the following documents showing its client-affiliates are non-resident foreign corporations doing business outside the Philippines: 1. SEC Certifications of Non-Registration of Company; 36 2. Certificates/Articles of Association/Registration/Foreign Incorporation; 37 3. Printout of AMInet Company Profile Fact Sheets; 38 and 4. Intragroup Service Agreements. 39 Each of the aforesaid documents, standing alone, is inadequate proof that petitioner's client is a 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 do not prove that such entities are non-resident foreign corporations doing business outside the Philippines. Likewise, the service agreements only show the names and addresses of petitioner's customers to whom it renders services but the same do not establish that such customers are non-resident foreign corporations doing business outside the Philippines. Also, the Certificates/Articles of Association/Registration/Foreign Incorporation only prove that the named entities therein were incorporated/organized abroad but do not establish that such entities are not doing business in the Philippines. In order to be considered as non-resident foreign corporation doing business outside the Philippines, each entity must be supported at the very least by both SEC Certificate of Non-registration and Certificates/Articles of Association/Registration/Foreign Incorporation, and that there is no other indication that the recipient of the services is doing business in the Philippines. SDAaTC This Court, however, cannot give credence to the purported foreign business registration print-outs retrieved from the AMInet database which is a database set up by Deutsche Bank Global (the Head Office located in Germany).The said documents are not sufficient to establish the fact that the service recipients are non-resident foreign corporations doing business outside the Philippines, as they may be considered self-serving and can be easily manipulated to favor petitioner in view of its affinity with the entity that maintains or keeps the said database. In this case, the table below shows whether petitioner complied with the third requisite: SEC Certificate of Non-Registration (Exhibit No.) Certificate/Article of Association/Registration/Foreign Incorporation/ (Exhibit No.) Deutsche Bank Aktiengesellschaft Inlandsbank P-5 P-7 Deutsche Bank Aktiengesellschaft Filiale Johannesburg P-35 P-8 Deutsche Bank Aktiengesellschaft, Filiale Amsterdam P-5.1 None Deutsche Bank Aktiengesellschaft, Filiale Riad P-5.2 P-8.1 Deutsche Bank Aktiengesellschaft, Filiale Dubai (DIFC) P-5.3 None OOO Deutsche Bank P-42 None Deutsche Bank Sociedad Anonima Espanola P-5.4 None Deutsche Bank Aktiengesellschaft, Filiale Zurich P-5.5 None Deutsche Bank Aktiengesellschaft, Filiale Wien P-5.6 None Deutsche Bank Aktiengesellschaft, Asia Pacific Head Office P-5.7 P-45 Deutsche Bank Aktiengesellschaft, Filiale Singapore P-5.8 P-8.6 Deutsche Bank Aktiengesellschaft, Filiale Bangkok P-5.9 P-8.7 Deutsche Bank Aktiengesellschaft, Filiale Mumbai P-5.10 P-8.8 Deutsche Bank Aktiengesellschaft, Filiale Hongkong P-5.11 P-7.1/P-8.9 Deutsche Bank Aktiengesellschaft, Filiale Jakarta P-5.12 P-7.2 Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi-Minh City P-5.13 P-8.11 Deutsche Bank Aktiengesellschaft, Filiale Seoul P-5.14 P-47 Deutsche Bank Aktiengesellschaft, Filiale Labuan P-5.15 P-8.13 DWS Investment SA P-41 None Deutsche Bank Americas Holding Corp. P-36 P-8.15 Deutsche Bank Aktiengesellschaft, Filiale Brussel P-5.16 None Deutsche Bank (Malaysia) Berhad P-5.17 P-44 Deutsche Bank Aktiengesellschaft, Filiale New York P-5.18 P-46 Deutsche Bank Aktiengesellschaft, Filiale London P-5.19 P-7.3/P-8.17 Deutsche Bank Aktiengesellschaft, Filiale Tokyo P-5.20 None Deutsche Bank Aktiengesellschaft, Filiale Paris P-5.21 P-8.19 Deutsche Bank Aktiengesellschaft, Filiale Prague P-5.22 None Deutsche Bank Luxembourg S.A. P-5.23 P-8.20 Deutsche Securities, Inc. P-5.24 P-7.4 Deutsche Bank Polska Spolka Akcyjna P-38 None Deutsche Bank Suisse SA P-5.26 None Deutsche Bank Societa Per Azione P-5.27 None Deutsche Asset Management Investmentgesselchaft P-5.28 None Deutsche Bank China Co. Ltd. Shanghai Branch P-5.29 None DWS Holding & Service GMBH P-5.30 P-8.23 RREEF Management GMBH P-5.31 P-8.24 Deutsche Bank Real Estate Japan YK P-5.32 None Deutsche Investment Management Americas, Inc. P-39 None RREEF Management LLC P-5.33 None Deutsche Asset Management Korea Company Limited P-34 P-8.28 Deutsche Bank Securities, Inc. P-5.34 P-49 Deutsche Asia Pacific Holdings Pte. Ltd. P-5.35 P-7.5 PT Deutsche Securities Indonesia P-5.36 None Deutsche Group Services Pty Limited P-5.37 P-7.6 Deutsche Bank PBC Spolka Akcyjna P-5.25 None Deutsche Securities Korea Co. P-40 P-8.33 Deutsche Bank Trust Company Americas P-5.38 None DB Services New Jersey, Inc. P-5.39 None DB Investment Partners, Inc. None P-8.35 Bankers International Corporation P-31 None DB International (Asia) Limited P-5.40 P-43 DB Energy Trading LLC P-32 P-8.36 DBOI Global Services Private Limited P-5.41 None Global Markets Centre Private Limited P-5.42 None Deutsche Global Markets Limited None P-8.38 Deutsche Trustees Malaysia Berhad P-5.43 P-8.39 Deutsche Bank Netherlands N.V. P-37 P-8.40 DB Consorzio S. Cons. A.R.L. P-5.44 None Deutsche Bank Aktiengesellschaft None P-48 Correspondingly, only the sales of services by petitioner to entities which have the said two (2) required documents will be treated as subject to the 0% VAT rate, pursuant to Section 108 (B) (2) of the NIRC of 1997, as amended. AaCTcI Corollary to the second requisite, Section 113 (A) (2), (B) (1), (2) (c) and (3) of the NIRC of 1997, as amended, as implemented by Section 4.113-1 (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: SEC. 113. Invoicing and Accounting Requirements for VAT-Registered Persons . (A) Invoicing Requirements . A VAT-registered person shall issue: xxx xxx xxx (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services . (B) Information Contained in the VAT Invoice or VAT Official Receipt . The following information shall be indicated in the VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person, followed by his Taxpayer's Identification Number (TIN); (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax: Provided ,That: xxx xxx xxx (c) If the sale is subject to zero percent (0%) value-added tax, the term "zero-rated sale" shall be written or printed prominently on the invoice or receipt; xxx xxx xxx (3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; and (Emphasis supplied) SECTION 4.113-1. Invoicing Requirements . (A) A VAT-registered person shall issue: xxx xxx xxx (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services . acEHCD Only VAT-registered persons are required to print their TIN followed by the word 'VAT' in their invoice or official receipts .Said documents shall be considered as a "VAT Invoice" or VAT official receipt. All purchases covered by invoices/receipts other than VAT Invoice/VAT Official Receipt shall not give rise to any input tax. VAT invoice/official receipt shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of his accounting records. (B) Information contained in VAT invoice or VAT official receipt . The following information shall be indicated in VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person, followed by his TIN; (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the VAT; Provided, That: xxx xxx xxx (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; (Emphasis supplied) Pursuant to the foregoing provisions, the foreign currency remittances referred to under Section 108 (B) (2) of the NIRC of 1997, as amended, must likewise be supported by VAT zero-rated official receipts. To prove that petitioner rendered services to its foreign affiliates and was paid in foreign currency duly accounted for in accordance with the rules and regulations of the BSP for the 1st quarter of CY 2013, petitioner submitted documents such as Sales Schedule, 40 Zero-rated official receipts with attached Invoices, 41 and Certificate of Inward Remittance 42 issued by Deutsche Bank AG Manila. Upon verification of the foregoing pieces of evidence, the Court finds that out of the P1,413,943,646.13 zero-rated sales declared per VAT Return for the 1st quarter of CY 2013, only the amount of 25,282,504.57 with peso equivalent of P1,347,489,133.11, as presented below, qualifies for VAT zero-rating under Section 108 (B) (2) of the NIRC of 1997, as amended: EcTCAD Customer's Name O.R. Date O.R. No. O.R. Exhibit No. O.R. Amount (in Euro) Amount in Peso DB Energy Trading LLC 25-Mar-13 3129 P-217 4,209.08 223,353.61 DB International (Asia) Limited 1-Feb-13 3016 P-110 16,164.20 896,255.43 DB International (Asia) Limited 1-Feb-13 3017 P-111 114,097.07 6,326,333.39 Deutsche Asia Pacific Holdings Pte. Ltd. 1-Feb-13 3015 P-109 12,638.95 700,791.10 Deutsche Asia Pacific Holdings Pte. Ltd. 28-Feb-13 3085 P-175 11,133.69 595,159.19 Deutsche Asset Management (Korea) Company Limited 31-Jan-13 3014 P-108 9,100.32 501,665.51 Deutsche Asset Management (Korea) Company Limited 26-Feb-13 3076 P-166 4,934.44 261,535.09 Deutsche Asset Management (Korea) Company Limited 22-Mar-13 3127 P-215 7,197.99 379,407.14 Deutsche Bank (Malaysia) Berhad 23-Jan-13 2999 P-93 7,841.35 423,462.15 Deutsche Bank (Malaysia) Berhad 23-Jan-13 3000 P-94 26,292.30 1,419,882.27 Deutsche Bank (Malaysia) Berhad 23-Jan-13 3001 P-95 7,101.60 383,512.89 Deutsche Bank (Malaysia) Berhad 27-Feb-13 3080 P-170 26,837.64 1,429,712.74 Deutsche Bank (Malaysia) Berhad 27-Feb-13 3084 P-174 3,945.34 210,178.80 Deutsche Bank (Malaysia) Berhad 25-Mar-13 3130 P-218 3,457.29 183,460.09 Deutsche Bank (Malaysia) Berhad 25-Mar-13 3131 P-219 15,590.45 827,302.71 Deutsche Bank (Malaysia) Berhad 25-Mar-13 3132 P-220 5,752.27 305,242.54 Deutsche Bank Aktiengesellschaft, Asia Pacific Head Office 14-Jan-13 2967 P-65 728,239.09 39,557,750.74 Deutsche Bank Aktiengesellschaft, Asia Pacific Head Office 6-Feb-13 3022 P-116 211.90 11,649.79 Deutsche Bank Aktiengesellschaft, Asia Pacific Head Office 13-Feb-13 3029 P-122 868,236.66 47,541,209.98 Deutsche Bank Aktiengesellschaft, Asia Pacific Head Office 18-Feb-13 3051 P-143 260,748.24 14,117,535.51 Deutsche Bank Aktiengesellschaft, Asia Pacific Head Office 13-Mar-13 3095 P-183 43,865.20 2,324,942.45 Deutsche Bank Aktiengesellschaft, Asia Pacific Head Office 19-Mar-13 3118 P-206 67,081.94 3,530,554.70 Deutsche Bank Aktiengesellschaft, Asia Pacific Head Office 20-Mar-13 3121 P-209 618,029.94 32,461,015.21 Deutsche Bank Aktiengesellschaft, Filiale Bangkok 18-Jan-13 2979 P-77 8,859.58 478,861.10 Deutsche Bank Aktiengesellschaft, Filiale Bangkok 24-Jan-13 3004 P-98 17,705.68 956,525.99 Deutsche Bank Aktiengesellschaft, Filiale Bangkok 21-Feb-13 3064 P-156 8,803.10 475,446.36 Deutsche Bank Aktiengesellschaft, Filiale Bangkok 18-Mar-13 3106 P-194 671.09 35,357.40 Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi-Minh-City 13-Feb-13 3026 P-119 5,714.24 312,889.21 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 15-Jan-13 2969 P-67 122,847.44 6,654,282.20 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 4-Feb-13 3020 P-114 81.30 4,490.00 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 4-Feb-13 3021 P-115 1,468.69 81,112.04 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 15-Feb-13 3042 P-134 124,130.92 6,724,067.67 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 22-Feb-13 3073 P-163 248,207.02 13,343,517.56 Deutsche Bank Aktiengesellschaft, Filiale Hongkong 19-Mar-13 3119 P-207 1,044,111.60 54,952,094.68 Deutsche Bank Aktiengesellschaft, Filiale Jakarta 21-Feb-13 3062 P-154 7,653.07 413,334.43 Deutsche Bank Aktiengesellschaft, Filiale Jakarta 22-Feb-13 3069 P-159 8,146.91 437,974.88 Deutsche Bank Aktiengesellschaft, Filiale Johannesburg 28-Jan-13 3008 P-102 3,281.00 180,338.95 Deutsche Bank Aktiengesellschaft, Filiale Johannesburg 28-Feb-13 3081 P-171 3,281.00 175,388.15 Deutsche Bank Aktiengesellschaft, Filiale Labuan 2-Jan-13 2951 P-52 789.07 42,785.95 Deutsche Bank Aktiengesellschaft, Filiale Labuan 24-Jan-13 3003 P-97 2,117.13 114,375.15 Deutsche Bank Aktiengesellschaft, Filiale Labuan 20-Feb-13 3060 P-152 2,166.70 118,173.38 Deutsche Bank Aktiengesellschaft, Filiale Labuan 26-Mar-13 3137 P-224 570.65 30,112.51 Deutsche Bank Aktiengesellschaft, Filiale London 10-Jan-13 2961 P-59 1,125,553.88 59,853,117.20 Deutsche Bank Aktiengesellschaft, Filiale London 17-Jan-13 2975 P-73 1,094,122.64 59,063,475.41 Deutsche Bank Aktiengesellschaft, Filiale London 15-Feb-13 3043 P-135 1,773,241.65 96,055,010.66 Deutsche Bank Aktiengesellschaft, Filiale London 18-Feb-13 3048 P-140 136,078.12 7,367,596.02 Deutsche Bank Aktiengesellschaft, Filiale London 19-Feb-13 3053 P-145 5,816.97 315,530.37 Deutsche Bank Aktiengesellschaft, Filiale London 14-Mar-13 3097 P-185 69,671.00 3,667,356.03 Deutsche Bank Aktiengesellschaft, Filiale London 19-Mar-13 3117 P-205 7,378,283.58 388,322,604.81 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 14-Jan-13 2964 P-62 65,875.15 3,581,362.26 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 14-Feb-13 3034 P-126 16,785.47 914,343.04 Deutsche Bank Aktiengesellschaft, Filiale Mumbai 14-Feb-13 3035 P-127 53,522.73 2,915,777.01 Deutsche Bank Aktiengesellschaft, Filiale New York 14-Jan-13 2963 P-61 35,742.64 1,941,530.55 Deutsche Bank Aktiengesellschaft, Filiale New York 15-Jan-13 2968 P-66 40,102.46 2,178,354.80 Deutsche Bank Aktiengesellschaft, Filiale New York 16-Jan-13 2972 P-70 59.55 3,214.66 Deutsche Bank Aktiengesellschaft, Filiale New York 23-Jan-13 2997 P-91 512,605.61 27,682,614.97 Deutsche Bank Aktiengesellschaft, Filiale New York 4-Feb-13 3018 P-112 4,183.01 231,017.06 Deutsche Bank Aktiengesellschaft, Filiale New York 14-Feb-13 3032 P-124 17,951.43 976,924.36 Deutsche Bank Aktiengesellschaft, Filiale New York 25-Feb-13 3075 P-165 514,757.92 27,707,225.97 Deutsche Bank Aktiengesellschaft, Filiale New York 21-Mar-13 3122 P-210 16,793.69 884,336.23 Deutsche Bank Aktiengesellschaft, Filiale New York 22-Mar-13 3125 P-213 95,506.14 5,034,142.97 Deutsche Bank Aktiengesellschaft, Filiale New York 25-Mar-13 3129 P-217 470,864.86 24,986,307.27 Deutsche Bank Aktiengesellschaft, Filiale New York 25-Mar-13 3129 P-217 1,050,879.36 55,764,608.48 Deutsche Bank Aktiengesellschaft, Filiale New York 25-Mar-13 3129 P-217 (288,899.90) (15,330,389.43) Deutsche Bank Aktiengesellschaft, Filiale Paris 17-Jan-13 2974 P-72 4,706.91 254,360.68 Deutsche Bank Aktiengesellschaft, Filiale Paris 14-Feb-13 3033 P-125 4,706.91 256,424.12 Deutsche Bank Aktiengesellschaft, Filiale Riad 18-Feb-13 3050 P-142 14,407.15 780,037.68 Deutsche Bank Aktiengesellschaft, Filiale Seoul 1-Mar-13 3088 P-178 19,884.77 1,059,288.54 Deutsche Bank Aktiengesellschaft, Filiale Seoul 7-Mar-13 3093 P-181 74,307.14 3,939,028.92 Deutsche Bank Aktiengesellschaft, Filiale Seoul 27-Mar-13 3142 P-211 8,195.76 428,834.62 Deutsche Bank Aktiengesellschaft, Filiale Singapur 14-Jan-13 2962 P-60 247,187.74 13,427,171.30 Deutsche Bank Aktiengesellschaft, Filiale Singapur 15-Jan-13 2970 P-68 165,236.37 8,950,365.06 Deutsche Bank Aktiengesellschaft, Filiale Singapur 14-Feb-13 3037 P-129 175,221.85 9,535,646.67 Deutsche Bank Aktiengesellschaft, Filiale Singapur 14-Feb-13 3038 P-130 3,981.20 216,658.58 Deutsche Bank Aktiengesellschaft, Filiale Singapur 14-Feb-13 3039 P-131 14,566.27 792,702.53 Deutsche Bank Aktiengesellschaft, Filiale Singapur 14-Feb-13 3040 P-132 159,116.41 8,659,181.86 Deutsche Bank Aktiengesellschaft, Filiale Singapur 19-Mar-13 3120 P-208 39,021.27 2,053,708.17 Deutsche Bank Aktiengesellschaft, Filiale Singapur 22-Mar-13 3128 P-216 1,200,994.00 63,304,573.89 Deutsche Bank Aktiengesellschaft, Inlandsbank 21-Jan-13 2983 P-81 40,746.87 2,209,234.58 Deutsche Bank Aktiengesellschaft, Inlandsbank 21-Jan-13 2984 P-82 8,573.81 464,859.20 Deutsche Bank Aktiengesellschaft, Inlandsbank 21-Jan-13 2985 P-83 131,578.31 7,133,979.92 Deutsche Bank Aktiengesellschaft, Inlandsbank 21-Jan-13 2986 P-84 828.60 44,925.46 Deutsche Bank Aktiengesellschaft, Inlandsbank 20-Feb-13 3055 P-147 25,286.04 1,379,118.84 Deutsche Bank Aktiengesellschaft, Inlandsbank 20-Feb-13 3056 P-148 269,520.66 14,699,850.94 Deutsche Bank Aktiengesellschaft, Inlandsbank 20-Feb-13 3057 P-149 244,280.15 13,323,215.34 Deutsche Bank Aktiengesellschaft, Inlandsbank 20-Feb-13 3058 P-150 118,748.05 6,476,604.15 Deutsche Bank Aktiengesellschaft, Inlandsbank 20-Feb-13 3059 P-151 8,697.76 474,382.10 Deutsche Bank Aktiengesellschaft, Inlandsbank 19-Mar-13 3107 P-195 113,072.10 5,951,038.90 Deutsche Bank Aktiengesellschaft, Inlandsbank 19-Mar-13 3108 P-196 1,102.32 58,015.63 Deutsche Bank Aktiengesellschaft, Inlandsbank 19-Mar-13 3109 P-197 1,502,480.57 79,076,273.59 Deutsche Bank Aktiengesellschaft, Inlandsbank 19-Mar-13 3110 P-198 41,526.66 2,185,568.05 Deutsche Bank Aktiengesellschaft, Inlandsbank 19-Mar-13 3111 P-199 320,070.53 16,845,465.63 Deutsche Bank Aktiengesellschaft, Inlandsbank 19-Mar-13 3112 P-200 12,450.70 655,286.32 Deutsche Bank Aktiengesellschaft, Inlandsbank 19-Mar-13 3113 P-201 84,899.03 4,468,276.70 Deutsche Bank Aktiengesellschaft, Inlandsbank 19-Mar-13 3114 P-202 84,899.03 4,468,276.70 Deutsche Bank Aktiengesellschaft, Inlandsbank 19-Mar-13 3115 P-203 835.86 43,991.71 Deutsche Bank Aktiengesellschaft, Inlandsbank 22-Mar-13 3126 P-214 53,794.40 2,835,510.89 Deutsche Bank Americas Holding Corp. 15-Jan-13 2968 P-66 53.03 2,880.58 Deutsche Bank Luxembourg S.A. 17-Jan-13 2976 P-74 3,609.10 194,828.24 Deutsche Bank Luxembourg S.A. 21-Feb-13 3068 P-158 3,609.10 194,923.78 Deutsche Bank Netherland N.V. 9-Jan-13 2957 P-55 1,274.15 68,002.98 Deutsche Bank Netherland N.V. 9-Jan-13 2958 P-56 2,631.59 140,451.25 Deutsche Bank Netherland N.V. 22-Jan-13 2992 P-88 13,124.00 705,541.40 Deutsche Bank Netherland N.V. 22-Jan-13 2993 P-89 4,751.45 257,751.15 Deutsche Bank Netherland N.V. 21-Feb-13 3067 P-157 4,751.45 256,620.92 Deutsche Bank Netherland N.V. 22-Feb-13 3071 P-161 13,124.00 711,935.53 Deutsche Bank Netherland N.V. 15-Mar-13 3101 P-189 430.89 22,803.46 Deutsche Bank Netherland N.V. 15-Mar-13 3102 P-190 4,397.62 232,729.83 Deutsche Bank Securities, Inc. 18-Jan-13 2978 P-76 4,847.11 261,986.73 Deutsche Bank Securities, Inc. 22-Mar-13 3125 P-213 9,744.48 513,633.00 Deutsche Group Services Pty Limited 15-Jan-13 2971 P-69 15,215.88 827,188.66 Deutsche Group Services Pty Limited 17-Jan-13 2977 P-75 121,973.07 6,599,411.67 Deutsche Group Services Pty Limited 15-Feb-13 3046 P-138 318,183.50 17,242,504.07 Deutsche Group Services Pty Limited 14-Mar-13 3098 P-186 193,875.30 10,211,826.60 Deutsche Group Services Pty Limited 25-Mar-13 3134 P-222 18,325.25 975,699.23 Deutsche Securities, Inc. 10-Jan-13 2959 P-57 21,762.40 1,157,250.22 Deutsche Securities, Inc. 15-Feb-13 3044 P-136 416,644.18 22,569,265.25 Deutsche Securities, Inc. 15-Feb-13 3045 P-137 144,649.58 7,835,546.27 Deutsche Securities Korea Co. 8-Feb-13 3023 P-117 9,116.67 497,214.70 Deutsche Securities Korea Co. 1-Mar-13 3086 P-176 6,704.16 357,139.65 Deutsche Securities Korea Co. 27-Mar-13 3140 P-104 1,966.87 102,914.43 Deutsche Trustees Malaysia Berhad 23-Jan-13 2998 P-92 1,038.97 56,108.26 Deutsche Trustees Malaysia Berhad 27-Feb-13 3079 P-169 1,083.35 57,712.95 Deutsche Trustees Malaysia Berhad 26-Mar-13 3136 P-223 889.46 46,935.73 DWS Holding & Service GmbH 21-Jan-13 2987 P-85 19,912.46 1,079,623.91 DWS Holding & Service GmbH 25-Mar-13 3133 P-221 19,867.64 1,056,648.91 DWS Holding & Service GmbH 27-Mar-13 3139 P-226 4,324.50 227,321.44 RREEF Management GmbH 31-Jan-13 3012 P-106 18,214.87 999,452.83 RREEF Management GmbH 4-Mar-13 3089 P-179 24,672.19 1,314,320.87 TOTAL 25,282,504.57 1,347,489,133.11 Fourth and Fifth Requisites: Having resolved that petitioner had VAT zero-rated receipts for the 1st quarter of CY 2013 in the amount of P1,347,489,133.11, the Court proceeds to determine the amount of input VAT attributable thereto. SDHTEC In its Quarterly VAT Return for the 1st quarter of CY 2013, 43 petitioner reported input VAT in the aggregate amount of P20,964,520.35, of which the amount of P20,881,608.09 is the subject of the present claim, as computed below: Purchases of Capital Goods not exceeding P1M P 38,047.30 Purchases of Capital Goods Exceeding P1M 448,559.31 Domestic Purchases of Goods Other than Capital Goods 125,844.00 Domestic Purchases of Services 19,833,171.53 Services rendered by non-residents 518,898.21 TOTAL P20,964,520.35 Divided by total declared sales 1,419,557,833.96 Multiply by zero-rated sales 1,413,943,646.13 Input VAT claimed for Refund/TCC P20,881,608.09 In support of its input VAT claim, petitioner presented the corresponding invoices, official receipts, BIR Forms No. 1600 and other documents 44 issued by its suppliers; which were examined by the Court-commissioned Independent CPA, Ms. Katherine O. Constantino. The Independent CPA summarized her findings as follows: 45 FINDINGS Reference to ICPA Report Amount PROPERLY SUPPORTED INPUT TAX Purchases of goods with properly supported Invoices Annex 9-a P45,895.62 Purchases of services with properly supported Official Receipts (ORs) Annex 9-b 18,557,115.54 Purchases of capital goods not exceeding one (1) million with properly supported Invoices Annex 9-c 38,047.30 Services rendered to non-resident citizen with properly supported BIR Forms 1600 and payment confirmation forms Annex 9-d 518,898.21 Purchases of Capital Goods exceeding one (1) Million with properly supported Invoices Annex 10-a 254,666.91 Total P19,414,623.58 OTHER FINDINGS Purchases of Goods other than Capital Goods 1 Purchases of goods supported by VAT REG. TIN Invoices without VAT breakdown Annex 9-e P8,192.15 2 Purchases of goods supported by VAT REG. TIN Invoices with date not within the year of claim Annex 9-f 68,708.01 3 Purchases of goods supported by VAT REG. TIN Invoices with date not within the year of claim and without VAT breakdown Annex 9-g 3,048.22 subtotal P79,948.38 Purchases of Services 1 Purchases of services supported by VAT REG. TIN ORs with date not within the year of claim Annex 9-h P45,523.06 2 Purchases of services supported by VAT REG. TIN ORs with note that states "Not to be used for claim of Input Tax" Annex 9-i 125,061.57 3 Purchases of services supported by NON-VAT REG. TIN ORs without VAT breakdown Annex 9-j 2,697.86 4 Purchases of services supported by TIN NO. VAT/VAT REG. TIN ORs with incorrect VAT breakdown Annex 9-k 93,943.43 5 Purchases of services supported by VAT REG. TIN ORs with incorrect Petitioner's TIN and date not within the quarter of claim Annex 9-l 12,527.88 6 Purchases of services supported by VAT REG. TIN ORs with incorrect VAT breakdown and date not within the quarter of claim Annex 9-m 87,019.41 7 Purchases of services supported by VAT REG. TIN ORs with note that states "Not to be used for claim of Input Tax" and date not within the quarter of claim Annex 9-n 6,723.21 8 Purchases of services supported by VAT REG. TIN ORs with unclear Petitioner's TIN but with correct VAT breakdown when computed independently Annex 9-o 2,970.00 9 Purchases of services supported by VAT REG. TIN ORs with date not within the quarter of claim and a correct VAT breakdown when computed independently Annex 9-p 2,128.50 10 Purchases of services supported by VAT REG. TIN ORs with incomplete Petitioner's Name and without Petitioner's TIN Annex 9-q 2,264.00 11 Purchases of services supported by certified true copy VAT REG. TIN ORs without Petitioner's TIN and a correct VAT breakdown when computed independently Annex 9-r 259,039.60 12 Purchases of services supported by VAT REG. TIN ORs with abbreviated Petitioner's Name but without Petitioner's TIN and a date not within the year of claim Annex 9-s 1,027.00 13 Purchases of services supported by Certified True Copy VAT REG. TIN ORs with date not within the quarter of claim Annex 9-t 33,659.89 14 Purchases of services supported by Certified True Copy VAT REG. TIN ORs Annex 9-u 75,717.96 15 Purchases of services supported by documents other than VAT ORs Annex 9-v 371,559.49 16 Purchases of services without support documents 154,193.13 subtotal P1,276,055.99 Purchases of Capital Goods exceeding one (1) million Purchases of capital goods exceeding one (1) million supported by VAT REG. TIN Invoices dated not within the year of claim Annex 10-b 193,892.40 Total P1,549,896.77 Grand Total P20,964,520.35 From the foregoing, the Court finds that the input VAT in the amount of P1,549,896.77 should be disallowed for not being properly substantiated by VAT invoices or official receipts as prescribed under Sections 110 (A) and 113 (A) and (B) of the NIRC of 1997, as amended, in relation to Sections 4.110-2, 4.110-8, and 4.113-1 of RR No. 16-05, as amended. HSAcaE In addition, the input VAT in the amount of P2,910,858.21, as detailed below, shall be disallowed for petitioner's failure to meet the substantiation requirements prescribed under the aforesaid VAT law and regulations: FINDINGS Date of Invoice/Official Receipt Invoice/Official Receipt No. Disallowed Input VAT Exhibit A. PURCHASES OF CAPITAL GOODS NOT EXCEEDING 1 MILLION Documents submitted do not clearly reflect the breakdown of the amount of purchases as well as the corresponding Input VAT Accent Micro Technologies, Inc. 18-Mar-13 146658 P6,292.99 P-338 Accent Micro Technologies, Inc. 18-Mar-13 146659 6,292.99 P-339 Accent Micro Technologies, Inc. 14-Mar-13 146461 42.86 P-340 Accent Micro Technologies, Inc. 14-Mar-13 146454 803.57 P-341 Accent Micro Technologies, Inc. 14-Mar-13 146452 482.14 P-342 Accent Micro Technologies, Inc. 14-Mar-13 146455 321.43 P-343 Accent Micro Technologies, Inc. 14-Mar-13 146456 321.43 P-344 Accent Micro Technologies, Inc. 14-Mar-13 146462 42.86 P-345 Total P14,600.27 B. PURCHASES OF SERVICES 1. Not dated within the period of claim 6-24 Property Holdings, Inc. 10-Apr-13 3595 P377,508.24 P-239 6-24 Property Holdings, Inc. 10-Apr-13 3596 1,928,106.96 P-240 6-3 Property Holdings, Inc. 10-Apr-13 3127 471.43 P-241 Baniqued & Baniqued 17-Apr-13 3846 7,800.00 P-369 Baniqued & Baniqued 17-Apr-13 3845 7,800.00 P-370 Chittick Fire & Security 17-Apr-13 8104 695.52 P-392 Cibi Information, Inc. 22-May-13 32121 1,786.86 P-395 Crown Worldwide Movers, Inc. 3-Apr-13 26606 19,512.00 P-402 DHL Express (Philippines) Corp. 17-Apr-13 2243607 1,660.00 P-427 Exclusive Cars International 3-Apr-13 9160 18,771.43 P-459 Federal Phoenix Assurance 4-Oct-13 101756 301,026.27 P-465 Makati Shangri-La Hotel 3-Apr-13 200633 14,493.00 P-533 Mesco Express Service Corp. 6-Sep-13 8400 5,403.44 P-539 IBM Philippines, Inc. 22-May-13 24293 (618.48) P-536 Zuniega Olaso Macapundag 10-Apr-13 1520 4,620.00 P-627 Subtotal P2,689,036.67 2. VAT not separately indicated Professional Skills Enrichment 13-Feb-13 15666 P27,120.00 P-580 Subtotal P27,120.00 3. No BIR Authority to Print PLDT 8-Feb-13 802393 P6.43 P-667 PLDT 30-Jan-13 1148736 353.57 P-668 PLDT 8-Feb-13 802390 1.91 P-669 PLDT 30-Jan-13 1148730 105.13 P-670 PLDT 8-Feb-13 802381 4.27 P-671 PLDT 30-Jan-13 1148728 235.13 P-672 PLDT 8-Feb-13 802385 582.86 P-673 PLDT 30-Jan-13 1148724 32,057.14 P-674 PLDT 8-Feb-13 802380 4.27 P-675 PLDT 30-Jan-13 1148726 235.13 P-676 PLDT 8-Feb-13 802383 4.27 P-677 PLDT 30-Jan-13 1148731 235.13 P-678 PLDT 8-Feb-13 802386 2.72 P-679 PLDT 30-Jan-13 1148735 148.41 P-680 PLDT 8-Feb-13 802382 2.83 P-681 PLDT 30-Jan-14 1148729 157.84 P-682 PLDT 8-Feb-13 802389 1.91 P-683 PLDT 30-Jan-14 1148727 105.13 P-684 PLDT 8-Feb-13 802392 6.43 P-689 PLDT 8-Feb-13 802384 4.27 P-685 PLDT 30-Jan-13 1148725 235.13 P-686 PLDT 30-Jan-13 1148732 302.18 P-686 Subtotal P34,792.09 4. Over-claimed Input VAT (The input VAT amount being claimed is more than the input VAT per ORs) ASIAPEOPLEWORKS! INC. per claim 1,875.62 6-Mar-13 390 P34.35 P-364 per Official Receipt 1,841.27 Johnson Controls IFM Phils. Co. per claim 71,430.99 23-Jan-13 3185 64,415.45 P-524 per Official Receipt 7,015.54 Johnson Controls IFM Phils. Co. per claim 3,177.56 6-Feb-13 3144 2,865.48 P-525 per Official Receipt 312.08 Johnson Controls IFM Phils. Co. per claim 262,393.50 6-Feb-13 3145 4,685.61 P-526 per Official Receipt 257,707.89 Johnson Controls IFM Phils. Co. per claim 72,898.29 20-Feb-13 3204 1,301.76 P-527 per Official Receipt 71,596.53 Papertone Corporation per claim 13,545.53 27-Feb-13 868 241.88 P-549 per Official Receipt 13,303.65 Papertone Corporation per claim 977.57 13-Mar-13 218 17.45 P-551 per Official Receipt 960.12 Papertone Corporation per claim 1,028.57 13-Mar-13 217 18.36 P-552 per Official Receipt 1,010.21 Taurus Electrical Services per claim 34,610.12 9-Jan-13 63 618.04 P-612 per Official Receipt 33,992.08 Taurus Electrical Services per claim 157,122.65 30-Jan-13 69 2,805.72 P-613 per Official Receipt 154,316.93 Taurus Electrical Services per claim 18,435.92 6-Feb-13 71 329.21 P-614 per Official Receipt 18,106.71 Taurus Electrical Services per claim 61,460.52 13-Mar-13 76 1,097.51 P-615 per Official Receipt 60,363.01 Subtotal P78,430.82 Total P2,829,379.58 C. PURCHASES OF CAPITAL GOODS EXCEEDING 1 MILLION Document submitted does not reflect the breakdown of the amount of purchase as well as the Input VAT Accent Micro Technologies, Inc. 4-Jan-13 143444 P7,810.27 P-275 Accent Micro Technologies, Inc. 4-Jan-13 143443 11,715.41 P-287 Accent Micro Technologies, Inc. 11-Jan-13 143705 482.14 P-299 Accent Micro Technologies, Inc. 17-Jan-13 143919 15,620.55 P-301 Accent Micro Technologies, Inc. 22-Jan-13 144082 267.86 P-308 Accent Micro Technologies, Inc. 30-Jan-13 144449 2,871.43 P-311 Accent Micro Technologies, Inc. 17-Jan-13 143916 18,878.98 P-313 Accent Micro Technologies, Inc. 4-Feb-13 144774 3,199.11 P-317 Accent Micro Technologies, Inc. 5-Feb-13 144840 2,833.50 P-320 Accent Micro Technologies, Inc. 8-Feb-13 144959 3,199.11 P-321 Total P66,878.36 Total Additional Disallowances per this Court's Findings P2,910,858.21 Thus, out of petitioner's total reported input VAT of P20,964,520.35 for the first quarter of CY 2013, only the amount of P16,503,765.37 represents valid input VAT, computed as follows: AScHCD Domestic Purchases of Capital Goods not exceeding P1 million Domestic Purchases of Goods Other than Capital Goods Domestic Purchase of Services Services Rendered by Non-residents Domestic Purchase of Capital Goods exceeding P1 million Total Input VAT per VAT Return P38,047.30 P125,844.00 P19,833,171.53 P518,898.21 P448,559.31 P20,964,520.35 Less: Disallowances Per ICPA Report 79,948.38 1,276,055.99 193,892.40 1,549,896.77 Per this Court's further verification 14,600.27 2,829,379.58 66,878.36 2,910,858.21 Total 14,600.27 79,948.38 4,105,435.57 - 260,770.76 4,460,754.98 Valid Input VAT P23,447.03 P45,895.62 P15,727,735.96 P518,898.21 P187,788.55 P16,503,765.37 While the above valid input taxes are duly substantiated by documents, the same are not entirely creditable for the subject period of claim. It must be noted that part of the above valid input VAT is the amount of P187,788.55, representing input VAT on purchases of capital goods exceeding P1 Million. Pursuant to Section 110 (A) of the NIRC of 1997, as amended, as implemented by Section 4.110-3 of RR No. 16-2005, input VAT claim on capital goods purchases attributable to zero-rated sales may be claimed either in full during the month of acquisition, or spread over a period of time, depending on the aggregate acquisition cost of the capital goods in the calendar month. If the aggregate acquisition cost exceeds P1 Million, the claim for input tax should be spread over 60 months or the estimated useful life of the capital goods, whichever is shorter. On the other hand, if aggregate acquisition cost does not exceed P1 Million, the total input taxes shall be allowed as tax credit/refund in the month of acquisition. While petitioner was able to substantiate the amount of P187,788.55 out of the total claimed input VAT of P448,559.31 on capital goods purchases exceeding P1 Million, only the amortization 46 for the first quarter of 2013 in the amount of P11,274.91 may be claimed by petitioner as valid input tax credits for the same taxable quarter, as determined below: HESIcT Exhibit No. Registered Name of Supplier Date of Invoice Invoice Number Input VAT Applied for Refund Life No. of Months Amortized Amortization P-277 Accent Micro Tech.,Inc. 1/4/2013 143456 P7,810.27 48 3 P488.14 P-278 Accent Micro Tech.,Inc. 1/4/2013 143445 15,620.55 48 3 976.28 P-279 Accent Micro Tech.,Inc. 1/7/2013 143524 6,292.99 48 3 393.31 P-289 Accent Micro Tech.,Inc. 1/4/2013 143478 23,430.82 48 3 1,464.43 P-292 Accent Micro Tech.,Inc. 1/4/2013 143446 42,956.50 48 3 2,684.78 P-295 Accent Micro Tech.,Inc. 1/17/2013 143917 3,905.14 48 3 244.07 P-296 Accent Micro Tech.,Inc. 1/17/2013 143924 3,905.14 48 3 244.07 P-297 Accent Micro Tech.,Inc. 1/17/2013 143918 7,810.27 48 3 488.14 P-298 Accent Micro Tech.,Inc. 1/17/2013 143925 3,199.11 48 3 199.94 P-302 Accent Micro Tech.,Inc. 1/17/2013 143923 11,715.41 48 3 732.21 P-303 Accent Micro Tech.,Inc. 1/17/2013 143920 12,585.98 48 3 786.62 P-304 Accent Micro Tech.,Inc. 1/22/2013 144083 3,905.14 48 3 244.07 P-309 Accent Micro Tech.,Inc. 1/22/2013 144084 6,292.99 48 3 393.31 P-305 Accent Micro Tech.,Inc. 1/22/2013 144085 7,810.27 48 3 488.14 P-306 Accent Micro Tech.,Inc. 1/22/2013 144086 3,905.14 48 3 244.07 P-310 Accent Micro Tech.,Inc. 1/22/2013 144087 3,905.14 48 3 244.07 P-307 Accent Micro Tech.,Inc. 1/21/2013 144019 85.71 48 3 5.36 P-312 Accent Micro Tech.,Inc. 1/25/2013 144277 482.14 48 3 30.13 P-315 Accent Micro Tech.,Inc. 2/5/2013 144826 1,273.71 48 2 53.07 P-316 Accent Micro Tech.,Inc. 2/4/2013 144778 3,905.14 48 2 162.71 P-318 Accent Micro Tech.,Inc. 2/4/2013 144775 6,292.99 48 2 262.21 P-319 Accent Micro Tech.,Inc. 2/5/2013 144833 42.86 48 2 1.79 P-322 Accent Micro Tech.,Inc. 2/12/2013 145068 1,928.57 48 2 80.36 P-323 Accent Micro Tech.,Inc. 2/12/2013 145066 1,928.57 48 2 80.36 P-324 Accent Micro Tech.,Inc. 2/12/2013 145067 2,892.86 48 2 120.54 P-325 Accent Micro Tech.,Inc. 2/18/2013 145269 3,905.14 48 2 162.71 TOTAL P187,788.55 P11,274.91 As such, only the remaining amount of P16,327,251.73, as computed below, represents petitioner's valid input VAT for the first quarter of CY 2013: AcICHD Domestic Purchases of Capital Goods not exceeding P1 million P23,447.03 Domestic Purchases of Goods Other than Capital Goods 45,895.62 Domestic Purchase of Services 15,727,735.96 Services Rendered by Non-residents 518,898.21 Domestic Purchases of Capital Goods exceeding P1 million 11,274.91 Total P16,327,251.73 A portion, however, of the P16,327,251.73 shall be applied against the reported output VAT liability of P673,702.54. As a result, only the remaining input VAT of P15,653,549.19 can be attributed to the entire zero-rated receipts amounting to P1,413,943,646.13 and only the input VAT of P14,917,841.65 is attributable to the valid zero-rated receipts of P1,347,489,133.11, computed as follows: Valid Input VAT P16,327,251.73 Less: Output Tax Due 673,702.54 Total P15,653,549.19 Divide by Total Zero-Rated Sales declared per return 1,413,943,646.13 Multiply by Valid Zero-rated Sales 1,347,489,133.11 Excess Input VAT Attributable to Valid Zero-Rated Sales P14,917,841.65 Sixth Requisite: Even though the claimed input VAT was carried over by petitioner in its succeeding Quarterly VAT Returns, 47 the same remained unutilized until it was deducted as "VAT Refund/TCC Claimed" 48 in its Quarterly VAT Return for the first quarter of CY 2014. Consequently, the subject claim no longer formed part of the excess input VAT of P83,094,023.33 49 as of the end of the first quarter of CY 2014 which was to be carried over to the succeeding second quarter 50 of CY 2014. In fine, petitioner has sufficiently proven its entitlement to a refund or issuance of a tax credit certificate in the amount of P14,917,841.65, representing its unutilized and excess input VAT attributable to its zero-rated receipts for the 1st quarter of CY 2013. caITAC WHEREFORE ,premises considered, the instant Petition for Review is PARTIALLY GRANTED .Accordingly, respondent is ORDERED TO REFUND OR TO ISSUE A TAX CREDIT CERTIFICATE to petitioner in the reduced amount of P14,917,841.65 ,representing petitioner's unutilized input taxes for the 1st quarter of CY 2013 attributable to its zero-rated sales. SO ORDERED. (SGD.) CIELITO N. MINDARO-GRULLA Associate Justice Erlinda P. Uy, J. ,concurs. Roman G. del Rosario, P.J. ,with Concurring & Dissenting Opinion. Separate Opinions DEL ROSARIO , P.J.,concurring & dissenting opinion : While I agree with the ponencia 's conclusion that Deutsche Knowledge Services Pte. Ltd. (Deutsche Knowledge) is entitled to a partial refund of its input value-added tax (VAT),with due respect, I am constrained to withhold my assent on the ruling that effectively declares as indispensable both a certificate of nonregistration of corporation/partnership issued by the Philippine Securities and Exchange Commission (SEC) and certificate/articles of foreign incorporation/association in proving that a nonresident foreign corporation is doing business outside the Philippines. I submit that the SEC Certifications of Non-Registration of Company and Intra-Group Service Agreements presented by Deutsche Knowledge were sufficient to prove that its clients are doing business outside the Philippines. TAIaHE On this point, I reiterate the position I have previously taken in Deutsche Knowledge Services Pte. Ltd. vs. Commissioner of Internal Revenue , 1 involving the same parties in this case albeit relating to a different taxable period: "It was the conclusion of the Court in Division that in order to be considered as non-resident foreign corporation doing business outside the Philippines, each entity must be supported, at the very least, by both SEC certificate of non-registration of corporation/partnership and certificate/articles of foreign incorporation/association/registration. The ponencia agrees with the Court in Division in holding that it cannot be determined if the alleged non-resident foreign clients are existing, operating and registered in a foreign country without proof of their incorporation, association or registration in a foreign country, notwithstanding the presence of SEC Certifications of Non-Registration of Company, and Intra-Group Service Agreements which were presented by petitioner to prove that its clients are nonresident foreign corporation . With due respect, while it is indispensable to present the SEC certificate of non-registration of corporation/partnership, the other evidence presented by petitioner, that is the Intra-Group Service Agreements, should appropriately be given probative value in lieu of the certificate/articles of foreign incorporation/association/registration required by the Court. The Intra-Group Service Agreements do not only show the names of petitioner's customers to whom it rendered service. More importantly, these documents confirm that the entities mentioned therein are doing business outside the Philippines as they specify the nature of services that petitioner renders in support of its customers' business process. (Boldfacing supplied) Thus, aside from those clients of petitioner already considered by the Court in Division in the assailed Decision as nonresident foreign corporations, certain clients of petitioner whose identities are supported with the corresponding SEC Certificates of Non-Registration and Intra-Group Service Agreements may still be considered as non-resident foreign corporation for zero-rating purpose." Consistent with the foregoing, I submit that Deutsche Knowledge's sale of services to entities which are supported by SEC Certifications of Non-Registration of Company and Intra-Group Service Agreements, proving that the services were rendered to nonresident foreign corporations doing business outside the Philippines, also qualify for zero-rating. ICHDca I also find it necessary to address the ponencia 's conclusion that the foreign business registration print-outs retrieved from the AMInet database are self-serving, viz. : "This Court, however, cannot give credence to the purported foreign business registration print-outs retrieved from the AMInet database which is a database set up by Deutsche Bank Global (the Head Office located in Germany).The said documents are not sufficient to establish the fact that the service recipients are non-resident foreign corporations doing business outside the Philippines, as they may be considered self-serving and can be easily manipulated to favor petitioner in view of its affinity with the entity that maintains or keeps the said database. " (Boldfacing supplied) The declaration in People of the Philippines vs. Mary Lou Omictin y Singco 2 about the nature of a self-serving evidence is instructive: "x x x The phrase self-serving evidence is a concept which has a well-defined judicial meaning. Hernandez v. Court of Appeals clarified what self-serving evidence is and what it is not, thus: The common objection known as "self-serving" is not correct because almost all testimonies are self-serving. The proper basis for objection is "hearsay" (Wenke, Making and Meeting Objections, 69). Petitioner fails to take into account the distinction between self-serving statements and testimonies made in court. Self-serving statements are those made by a party out of court advocating his own interest; they do not include a party's testimony as a witness in court ( National Development Co. v. Workmen's Compensation Commission ,19 SCRA 861 [1967]). Self-serving statements are inadmissible because the adverse party is not given the opportunity for cross-examination, and their admission would encourage fabrication of testimony .This cannot be said of a party's testimony in court made under oath, with full opportunity on the part of the opposing party for cross-examination. This principle was reiterated in the more recent People v. Villarama ,where the Court ruled, "x x x [A] self-serving declaration is one that is made by a party, out of court and in his favor. It does not include the testimony he gives as a witness in court." Assayed against the foregoing standards, Ambrosio's testimony is not self-serving and is admissible in evidence." (Boldfacing supplied) Applying by analogy Omictin to the case at bar, the documents testified on by Deutsche Knowledge's witness, Ms. Rachel Concepcion, may not be denied evidentiary weight for being self-serving, as the Commissioner of Internal Revenue (CIR) has been given the opportunity to cross-examine and test the credibility of Ms. Concepcion. In truth, the CIR had all the opportunity to object to and rebut the exhibits submitted by Deutsche Knowledge in Court, which were identified by Ms. Concepcion in her Sworn Statement filed on October 31, 2014, 3 and which were the subject of her testimony on February 17, 2015. 4 To be specific, in petitioner's Formal Offer of Evidence, the foreign business registration print-outs retrieved from the AMInet database, marked as Exhibits "P-8" to "P-8.41," and the companies' profile fact sheets also retrieved from the AMInet database, marked as Exhibits "P-9" to "P-9.56," were specifically offered by petitioner for the purpose of proving that: " petitioner's clients which are non-resident foreign corporations are actually doing business outside the Philippines ." 5 In CIR's Comment (on petitioner's Formal Offer of Evidence),the CIR interposed no objection to the admission of aforestated exhibits for the purposes for which they were offered, subject only to the condition that the same are faithful reproductions of the originals upon due comparison . 6 The case was even submitted for decision sans respondent presenting any evidence in refutation of the testimony of Ms. Concepcion. 7 Indeed, Ms. Concepcion's unrebutted testimony vis-a-vis the documents she identified is entitled to full faith and credit, there being no inherent improbability in the substance thereof. All told, I vote to PARTIALLY GRANT the Petition for Review filed by Deutsche Knowledge with modification to include the sales of services of Deutsche Knowledge to its clients whose identities are supported by their respective SEC Certifications of Non-Registration of Company and Intra-Group Service Agreements. cDHAES Footnotes 1. Sec. 7. Jurisdiction . The CTA shall exercise: (a) Exclusive appellate jurisdiction to review by appeal, as herein provided: xxx xxx xxx (2) Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments, refunds or internal revenue taxes, fees of other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue, where the National Internal Revenue Code provides a specific period for action, in which case the inaction shall be deemed a denial; xxx xxx xxx 2. Rule 4, Sec. 3. Cases within the jurisdiction of the Court in Division . The Court in Division shall exercise: (a) Exclusive original over or appellate jurisdiction to review by appeal the following: xxx xxx xxx (2) Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue, where the National Internal Revenue Code or other applicable law provides a specific period for action: Provided , that in case of disputed assessments, the inaction of the Commissioner of Internal Revenue within the one-hundred-eighty-day period under Section 228 of the National Internal Revenue Code shall be deemed a denial for purposes of allowing the taxpayer to appeal his case to the Court and does not necessarily constitute a formal decision of the Commissioner of Internal Revenue on the tax case; Provided, further , that should the taxpayer opt to await the final decision of the Commissioner of Internal Revenue on the disputed assessments beyond the one-hundred-eighty-day period abovementioned, the taxpayer may appeal such final decision to the Court under Section 3 (a), Rule 8 of these Rules; xxx xxx xxx Rule 8, Sec. 4. Where to appeal; mode of appeal . (a) An appeal from a decision or ruling or the inaction of the Commissioner of Internal Revenue on disputed assessments or claim for refund of internal revenue taxes erroneously or illegally collected, the decision or ruling of the Commissioner of Customs, the Secretary of Finance, the Secretary of Trade & Industry, the Secretary of Agriculture, and the Regional Trial Court in the exercise of their original jurisdiction, shall be taken to the Court by filing before it a petition for review as provided in Rule 42 of the Rules of Court. The Court in Division shall act on the appeal. xxx xxx xxx 3. Par. 1, Stipulated Facts, Joint Stipulation of Facts and Issues (JSFI),Docket, vol. II, p. 1445. 4. Par. 4, Stipulated Facts, JSFI, Docket, vol. II, p. 1446; Exhibit "P-2",Docket, vol. II, p. 1670. 5. Par. 3, Stipulated Facts, JSFI, Docket, vol. II, pp. 1445-1446; Exhibit "P-1",Docket, vol. II, pp. 1652-1669. 6. Par. 5, Stipulated Facts, JSFI, Docket, vol. II, p. 1446; Exhibit "P-3",Docket, vol. II, pp. 1671-1674. 7. Exhibits "P-4" and "P-4-a",Docket, vol. II, pp. 1697-1702. 8. Par. 6, Stipulated Facts, JSFI, Docket, vol. II, p. 1446. 9. Par. 7, Stipulated Facts, JSFI, Docket, vol. II, p. 1446. 10. Docket, vol. I, pp. 41-48. 11. Docket, vol. I, p. 50. 12. Docket, vol. I, pp. 51-54. 13. Docket, vol. II, pp. 1420-1429. 14. Docket, vol. II, pp. 1445-1452. 15. Docket, vol. II, pp. 1517-1522. 16. Motion to Commission Independent Certified Public Accountant filed on January 20, 2015, Docket, vol. II, pp. 1482-1485. 17. Minutes of the Hearing dated January 29, 2015, Docket, vol. II, pp. 1523-1525. 18. Minutes of the Hearing dated February 17, 2015, Docket, vol. II, pp. 1539-1542; Exhibit "P-11",Docket, vol. I, pp. 60-93. 19. Minutes of the Hearing dated April 7, 2015, Docket, vol. II, pp. 1565-1568; Exhibit "P-757",Docket, vol. II, pp. 1555-1563. 20. Docket, vol. II, pp. 1613-1651. 21. Docket, vol. IV, pp. 3219-3221. 22. Docket, vol. IV, pp. 3259-3261. 23. Docket, vol. IV, pp. 3932-3935. 24. Exhibit "P-8.28" was already admitted in evidence in the Resolution dated August 28, 2015, Docket, vol. IV, p. 3219. 25. Minutes of the Hearing dated April 7, 2015, Docket, vol. II, pp. 1565-1568. 26. Resolution dated August 4, 2016, Docket, vol. IV, pp. 3932-3935. 27. Docket, vol. IV, pp. 3239-3248. 28. Docket, vol. IV, pp. 3894-3918. 29. Issues, JSFI, Docket, vol. II, p. 1446. 30. As amended by Republic Act No. 9361, November 21, 2006. 31. Par. 4, Stipulated Facts, JSFI, Docket, vol. II, p. 1446; Exhibit "P-2",Docket, vol. II, p. 1670. 32. Exhibits "P-4" and "P-4-a",Docket, vol. II, pp. 1697-1702. 33. August 10, 2014 being a Sunday. 34. G.R. No. 153205, January 22, 2007. 35. Par. 3, Stipulated Facts, JSFI, Docket, vol. II, pp. 1445-1446; Exhibit "P-1",Docket, vol. II, pp. 1652-1669. 36. Exhibits "P-5" to "P-5.44","P-31" to "P-32",and "P-34" to "P-42",Docket, vol. II, pp. 1703-1747, and Folder 12, Box 1. 37. Exhibits "P-7" to "P-7.6","P-8" to "P-8.41" (though Exhibits "P-8.25" to "P-8.27","P-8.29" to "P-8.32","P-8.34" and "P-8.37" were denied admission),and "P-43" to "P-49",Docket vol. II, pp. 2003-2076, Docket, vol. II-III, pp. 2077-3063, and Folder 13, Box 1. 38. Exhibits "P-9" to "P-9.56",Docket, vol. III, pp. 3064-3140. 39. Exhibits "P-6" to "P-6.44" (though Exhibit "P-6.20" was denied admission);"P-26" to "P-30",Docket vol. II, pp. 1748-2002, and Folder 11, Box 1. 40. Exhibit "P-13". 41. Exhibits "P-52" to "P-226". 42. Exhibit "P-21". 43. Exhibit "P-3",Docket, vol. II, pp. 1671-1674. 44. Exhibits "P-230" to "P-736" and "P-740" to "P-756",Folder 17, Box 2. 45. Exhibit "P-12",pp. 13-14 and 17. 46. Based on estimated useful life of 48 months as used by petitioner. 47. Exhibits "P-3.1" to "P-3.5",Docket, vol. II, pp. 1675-1692. 48. Exhibit "P-3.5",Line 23D, Docket, vol. II, p. 1688. 49. Exhibit "P-3.5",Line 29, Total Amount Payable (Overpayment),Docket, vol. II, p. 1689. 50. Exhibit "P-3.7",Line 20E, Docket, vol. II, p. 1695. DEL ROSARIO, P.J.,concurring & dissenting opinion: 1. CTA EB No. 1290, August 16, 2016; also quoted in Commissioner of Internal Revenue vs. Deutsche Knowledge Services Pte. Ltd ./ Deutsche Knowledge Services Pte. Ltd. vs. Commissioner of Internal Revenue ,CTA EB Nos. 1297 & 1302, May 18, 2017. 2. G.R. No. 188130, July 26, 2010. 3. CTA Docket, pp. 57-93. 4. CTA Docket, p. 1539. 5. CTA Docket, pp. 1626-1636. 6. CTA Docket, p. 3200. 7. CTA Docket, p. 3935. n Note from the Publisher: Written as "Aktienesellschaft" in the original document.