Aecom Philippines, Inc. v. Commissioner of Internal Revenue

SPECIAL FIRST DIVISION [C.T.A. CASE NO. 8971. October 9, 2018.] AECOM PHILIPPINES, INC. , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . RESOLUTION MINDARO-GRULLA , J p : For resolution is petitioner's Motion for Reconsideration (Re: Decision Rendered on May 7, 2018) , filed on May 30, 2018, with respondent's Comment/Opposition (To Petitioner's Motion for Reconsideration) , filed on June 27, 2018. Petitioner seeks reconsideration of the Court's Decision dated May 7, 2018 (assailed Decision), the dispositive portion of which reads: " WHEREFORE , premises considered, the instant Petition for Review is DENIED for insufficiency of evidence. SO ORDERED. " In the assailed Decision, this Court found that petitioner failed to meet the third requisite for the claim for refund or issuance of Tax Credit Certificate (TCC), i.e. , that it is shown on the return of the recipient that the income payment received was declared as part of the gross income, as provided under Section 2.58.3 (B) of RR No. 02-98, as amended. As found by this Court, petitioner's total gross income declared in its Annual Income Tax Return (ITR) for FY 2012 amounted to P355,754,070.00. On the other hand, the withholding tax certificates reveal that the Creditable Withholding Taxes (CWT) in the amount of P26,937,862.50 was withheld on gross income payments in the amount of P266,743,675.69. However, this Court cannot determine whether the gross income payments of P266,743,675.69 indeed formed part of the gross income of P355,754,070.00 reported by petitioner in its Annual ITR for fiscal year 2012. In its motion for reconsideration, petitioner raises the following arguments: (1) the gross income payment that was received and is related to petitioner's claimed CWT was declared and reflected in its Annual Income Tax Returns for 2012 and 2011; and (2) Section 2.58.3 (B) of Revenue Regulations (RR) No. 2-98, as amended, only requires, among others, that the income payments be declared as part of the gross income. It does not have to be on the same taxable year of the claim. On the other hand, respondent avers that the Court was correct in dismissing the case for insufficiency of evidence due to petitioner's failure to present its detailed general ledger and sales register or any other document whereby the income payments related to the claimed CWT can be traced and confirmed as forming part of the income reflected in its Annual ITR for FY 2012. After a careful study of the above allegations, the Court finds petitioner's motion bereft of merit. Petitioner still failed to prove that the gross income payment that was received and is related to its claimed CWT was declared and reflected in its Annual ITRs for 2012 and 2011 In its motion for reconsideration, petitioner asserts that the income payments from which the income tax was withheld were declared as part of the gross income in both its Audited Financial Statements (AFS) and ITRs for taxable years 2012 and 2011. To support its allegation, petitioner presented a summary of the tracing wherein it was shown that the related income payments that are duly supported by withholding tax certificates were reported in the years 2012 and 2011, indicating the Project Contract Code (PCC) as reference for the progression of each project to determine the amount of gross income declared in the particular taxable year, to wit: Payor Exhibit No. Income Payment Tax Withheld Taxable year the income was declared Project Contract Code Aecom Philippines Consultant Corp. P-22 P742,500.00 P111,375.00 2012 MNLD11574 Aecom Philippines Consultant Corp. P-23 10,293,245.51 205,864.91 2012 MNLD11574 Aecom Philippines Consultant Corp. P-24 619,080.00 92,862.00 2012 MNLD11574 Aecom Philippines Consultant Corp. P-25 263,359.50 5,267.19 2012 MNLD11574 Aecom Philippines Consultant Corp. P-26 4,112,890.00 82,257.80 2012 MNLD11574 Aecom Philippines Consultant Corp. P-27 2,715,310.00 407,296.50 2012 MNLD11574 Asian Terminals, Inc. P-28 7,543,740.20 1,131,561.03 2012 and 2011 MNLD10533, MNLD10544, AND MNLD 11589 Asian Terminals, Inc. P-29 6,919,678.40 1,037,951.76 2012 MNLD10544, MNLD11589, AND MNLD12056 Asian Terminals, Inc. P-30 6,207,071.00 931,060.65 2012 MNLD11533 AND MNLD11589 Asian Terminals, Inc. P-31 5,447,544.40 817,131.66 2012 MNLD11533 AND MNLD11589 Far Southeast-Gold Resources, Inc. P-32 313,980.00 47,097.00 2012 MNLD11583 Far Southeast-Gold Resources, Inc. P-33 158,070.00 23,710.50 2012 MNLD11583 Far Southeast-Gold Resources, Inc. P-34 149,360.00 22,404.00 2012 MNLD11583 Far Southeast-Gold Resources, Inc. P-35 115,480.00 17,322.00 2012 MNLD11583 Far Southeast-Gold Resources, Inc. P-36 22,657,361.53 3,398,604.23 2012 MNLD12189 Far Southeast-Gold Resources, Inc. P-37 275,040.00 41,256.00 2012 MNLD11583 Fcf Minerals Corporation P-38 1,848,864.49 277,329.67 2012 MNLD10541, MNLD11521, AND MNLD11588 Fcf Minerals Corporation P-39 719,988.00 107,998.20 2012 MNLD12039 AND MNLD11521 Fcf Minerals Corporation P-40 243,996.00 36,599.40 2012 MNLD12039 Fcf Minerals Corporation P-41 1,299,160.49 194,874.07 2012 MNLD10541 AND MNLD11588 Fcf Minerals Corporation P-42 329,150.83 49,372.62 2012 MNLD10541 Fcf Minerals Corporation P-43 658,301.66 98,745.25 2012 MNLD10541 Fcf Minerals Corporation P-44 314,194.50 47,129.18 2012 MNLD11550 Fcf Minerals Corporation P-45 243,996.00 36,599.40 2012 MNLD12039 Fcf Minerals Corporation P-46 243,996.00 36,599.40 2012 MNLD12039 Filinvest Land, Inc. P-47 164,500.00 3,290.00 2012 MNLD10554 Filinvest Land, Inc. P-48 244,928.50 4,898.57 2012 MNLD10554 Filinvest Land, Inc. P-49 980,071.50 19,601.43 2012 MNLD10554 Filinvest Land, Inc. P-50 156,250.00 23,437.50 2012 MNLD10554 Filinvest Land, Inc. P-51 329,000.00 49,350.00 2012 MNLD10554 Filinvest Land, Inc. P-52 329,000.00 49,350.00 2012 MNLD10554 Filinvest Land, Inc. P-53 125,000.00 18,750.00 2012 MNLD10554 Filinvest Land, Inc. P-54 1,960,000.00 294,000.00 2012 MNLD10554 Filinvest Land, Inc. P-55 250,000.00 37,500.00 2012 MNLD10554 Filinvest Land, Inc. P-56 980,000.00 147,000.00 2012 MNLD10554 First Gen Hydro Power Corporation P-57 74,692.60 11,203.89 2012 MNLD11582 First Gen Hydro Power Corporation P-58 298,770.40 44,815.56 2012 MNLD11582 Int'L Container Terminal Services, Inc. P-59 18,011,106.34 360,222.13 2012 and 2011 MNLD07603 Int'L Container Terminal Services, Inc. P-60 7,855,627.20 157,112.54 2012 MNLD07603 Int'L Container Terminal Services, Inc. P-61 10,520,430.74 210,408.61 2012 MNLD07603 Int'L Container Terminal Services, Inc. P-62 5,581,935.71 111,638.71 2012 MNLD07603 Int'L Container Terminal Services, Inc. P-63 236,576.79 4,731.54 2012 MNLD07603 Int'L Container Terminal Services, Inc. P-64 5,383,882.01 107,677.64 2012 MNLD07603 Int'L Container Terminal Services, Inc. P-65 5,390,544.92 107,810.90 2012 MNLD07603 Int'L Container Terminal Services, Inc. P-66 6,233,049.63 124,660.99 2012 MNLD07603 Int'L Container Terminal Services, Inc. P-67 5,336,110.56 106,722.21 2012 MNLD07603 Int'L Container Terminal Services, Inc. P-68 6,309,696.88 126,193.94 2012 MNLD07603 Manila Water Company P-69 24,925,016.73 3,738,752.51 2012 and 2011 MNLD11501 AND MNLD11553 Manila Water Company P-70 10,606,350.52 1,590,952.58 2012 MNLD10534, MNLD11501, MNLD11548, AND MNLD12065WW Manila Water Company P-71 10,631,997.14 1,594,799.57 2012 and 2011 MNLD10534 AND MNLD12065WW Manila Water Company P-72 8,974,219.70 1,346,132.96 2012 MNLD11548 AND MNLD11553 Maynilad Water Services, Inc. P-73 3,571,783.87 535,767.58 2012 and 2011 MNLD10552 AND MNLD11571 Maynilad Water Services, Inc. P-74 524,642.87 78,696.43 2012 and 2011 MNLD10552 AND MNLD11571 Maynilad Water Services, Inc. P-75 409,357.13 61,403.57 2012 and 2011 MNLD10552 AND MNLD11571 Oceana Gold P-76 1,372,490.00 27,449.80 2012 MNLD12038WC Oceana Gold P-77 2,182,436.00 43,648.72 2012 MNLD12038WC Oceana Gold P-78 7,403,147.00 148,062.94 2012 MNLD12038WC Quezon Power (Phil.) Ltd. Co. P-79 50,065.00 7,509.75 2012 MNLD11542 Sagittarius Mines, Inc. P-80 16,351,284.40 2,452,692.66 2011 MNLD11584 Sagittarius Mines, Inc. P-81 1,456,004.33 218,400.65 2011 MNLD11584 Sagittarius Mines, Inc. P-82 484,840.00 72,726.00 2012 MNLD12266 San Miguel Corporation P-83 175,000.00 26,250.00 2012 MNLD12087WC San Miguel Corporation P-84 516,530.40 77,479.56 2012 MNLD12087WC San Miguel Corporation P-85 167,500.00 25,125.00 2012 MNLD12245WC San Miguel Corporation P-86 168,644.00 25,296.60 2012 MNLD12087WC Shell Philippines Exploration B.V. P-87 286,500.00 5,730.00 2012 MNLD12197 Silangan Mindanao Mining P-88 2,864,824.00 429,723.60 2012 MNLD12198 Silangan Mindanao Mining P-89 4,297,236.00 644,585.40 2012 MNLD12198 Sureste Properties, Inc. P-90 780,500.00 117,075.00 2012 MNLD11539 Sureste Properties, Inc. P-91 669,000.00 100,350.00 2012 MNLD11539 Sureste Properties, Inc. P-92 67,500.00 1,350.00 2012 MNLD12089 Sureste Properties, Inc. P-93 257,175.00 38,576.25 2012 MNLD12056 Sureste Properties, Inc. P-94 557,500.00 83,625.00 2012 MNLD11539 Taganito Mining Corporation P-95 1,275,478.80 191,321.82 2012 MNLD12240 Taganito Mining Corporation P-96 1,913,218.20 286,982.73 2012 MNLD11555 Team Energy Corporation P-97 2,210,650.07 331,597.51 2012 MNLD11555 AND MNLD11558 Team Energy Corporation P-98 2,210,650.07 331,597.51 2011 MNLD11555, MNLD11556, MNLD11557, AND MNLD11558 Team Energy Corporation P-99 554,697.47 83,204.62 2012 MNLD12173 Team Sual Corporation P-100 5,304,096.20 795,614.43 2012 and 2011 MNLD11559, MNLD11560, MNLD11561, MNLD11562, MNLD11563, MNLD11564, AND MNLD11565 Team Sual Corporation P-101 2,336,808.50 46,736.17 2012 MNLD12164, MNLD12165, MNLD12166, MNLD12167, MNLD12168, AND MNLD12169 Total P266,743,675.69 P26,937,862.50 Petitioner claims that as per testimony of the Court-commissioned Independent Certified Public Accountant (ICPA), petitioner recognizes income based on percentage of completion method as stated in page 9, note 1 of the notes to AFS of the petitioner. 1 Under this method, income of a particular project is recognized over a long time, often spanning several years, based on the percentage of completion of the project. A project is evaluated on a regular basis to determine the percentage of completion at a given time. Moreover, petitioner explains that under this method, although the income is recognized, the income payments would be made only when there are billings made. The billings do not necessarily have to be during the same period in which the income was recognized. As such, an income is recognized in a particular period while the income payment and the associated creditable taxes withheld would be recognized in a subsequent period. To prove that the income payments of the subject CWTs were declared as part of the gross income reported in the AFS and ITR, petitioner explains its procedures as follows: 1. Certificate of Tax Withheld (BIR Form 2307) : Ascertained that income payments reported in the BIR Form 2307 are properly supported by Official Receipts and Invoices. 2. Accounts Receivable (AR) Account Ledger : Ascertained that the supporting invoices containing the income payments in BIR Form 2307 are properly recorded in the Accounts Receivable with corresponding number projects contracts. 3. Project Status Report (PSR) Account Ledger : Ascertained that the supporting project contracts recorded in the AR accounts ledger containing income payments reported per BIR Form 2307 are properly recorded in the PSR revenue account. 4. Audited Financial Statements (AFS) & Income Tax Returns (ITR) : Ascertained that the Revenue reported per PSR revenue account are properly reported per AFS and ITR. According to petitioner, based on the foregoing procedures, the income payments received as per BIR Form 2307 can be traced to the official receipts and invoices issued by petitioner, to wit: Payor Tax Base BIR Form No. 2307 Exhibit No. OR No. Invoice No. APCC P263,359.50 P-25 242 PH12-165 PH12-154 PH12-153 APCC 619,080.00 P-24 242 PH12-165 PH12-154 PH12-153 APCC 4,112,890.00 P-26 295 Asian Terminals 7,543,740.20 P-28 140 PH11-226 152 PH11-113 154 PH11-153 156 PH11-239 165 PH11-238 172 PH12-008 PH12-031 Asian Terminals 6,919,678.40 P-29 173 PH12-030 174 PH12-032 185 PH12-070 207 PH12-130 212 PH12-132 215 PH12-134 217 PH12-139 218 PH12-131 Asian Terminals 6,207,071.00 P-30 225 PH12-127 228 PH12-155 229 PH12-157 232 PH12-156 244 PH12-172 250 PH12-171 258 PH12-188 262 PH12-187 Asian Terminals 5,447,544.40 P-31 265 PH12-194 269 PH12-211 271 PH12-212 280 PH12-231 286 PH12-254 291 PH12-155 292 PH12-232 Far Southeast Gold Resources, Inc. 313,980.00 P-32 192 PH12-107 Far Southeast Gold Resources, Inc. 158,070.00 P-33 226 PH12-146 Far Southeast Gold Resources, Inc. 149,360.00 P-34 240 PH12-164 Far Southeast Gold Resources, Inc. 115,480.00 P-35 256 PH12-185 Far Southeast Gold Resources, Inc. 22,657,361.53 P-36 255 PH12-186 Far Southeast Gold Resources, Inc. 275,040.00 P-37 276 PH12-209 FCF Minerals Corporation 1,848,864.49 P-38 203 PH12-138 PH12-089 PH12-090 PH12-137 FCF Minerals Corporation 719,988.00 P-39 222 PH12-091 PH12-088 FCF Minerals Corporation 243,996.00 P-40 234 PH12-170 FCF Minerals Corporation 1,299,160.49 P-41 254 PH12-184 PH12-192 FCF Minerals Corporation 329,150.83 P-42 279 PH12-233 FCF Minerals Corporation 658,301.66 P-43 279 PH12-234 FCF Minerals Corporation 314,194.50 P-44 270 PH12-213 FCF Minerals Corporation 243,996.00 P-45 287 PH12-252 FCF Minerals Corporation 243,996.00 P-46 287 PH12-253 Filinvest Land, Inc. 164,500.00 P-47 143 PH11-172 Filinvest Land, Inc. 244,928.50 P-48 145 PH11-099 Filinvest Land, Inc. 980,071.50 P-49 153 PH11-218 Filinvest Land, Inc. 156,250.00 P-50 180 PH12-025 Filinvest Land, Inc. 329,000.00 P-51 181 PH12-027 Filinvest Land, Inc. 329,000.00 P-52 188 PH12-073 Filinvest Land, Inc. 125,000.00 P-53 211 PH12-075 Filinvest Land, Inc. 1,960,000.00 P-54 235 PH12-074 Filinvest Land, Inc. 250,000.00 P-55 236 PH12-145 Filinvest Land, Inc. 980,000.00 P-56 178 PH12-210 First Gen Hydro Power Corporation 74,692.60 P-57 179 PH12-081 First Gen Hydro Power Corporation 298,770.40 P-58 206 PH12-113 International Container Terminal Services, Inc. 18,011,106.34 P-59 147 PH11-223 PH11-236 PH11-240 PH12-034 International Container Terminal Services, Inc. 7,855,627.20 P-60 175 PH12-069 International Container Terminal Services, Inc. 10,520,430.74 P-61 195 PH12-110 PH09-126A PH12-104 PH12-095 PH09-126B International Container Terminal Services, Inc. 5,390,544.92 P-65 221 PH12-129 International Container Terminal Services, Inc. 236,576.79 P-63 246 PH12-140 International Container Terminal Services, Inc. 5,581,935.71 P-62 245 PH12-152 International Container Terminal Services, Inc. 5,383,882.01 P-64 248 PH12-175 International Container Terminal Services, Inc. 6,233,049.63 P-66 268 PH12-204 International Container Terminal Services, Inc. 5,336,110.56 P-67 281 PH12-224 International Container Terminal Services, Inc. 6,309,696.88 P-68 282 PH12-216 PH12-182 Manila Water Company 24,925,016.73 P-69 162 PH12-023 163 PH12-057 166 PH12-208 167 PH12-056 Manila Water Company 10,606,350.53 P-70 194 PH12-055 197 PH12-059 199 PH12-117 204 PH12-112 Manila Water Company 10,631,997.14 P-71 251 PH11-228 260 PH12-167 PH12-176 Manila Water Company 8,974,219.70 P-72 259 PH12-189 277 PH12-177 294 PH12-235 Maynilad Water Services, Inc. 3,571,783.87 P-73 151 PH11-225 160 PH11-242 161 PH12-029 176 PH11-210 Oceana Gold 1,372,490.00 P-76 223 PH12-150 Oceana Gold 2,182,436.00 P-77 233 PH12-151 Oceana Gold 7,403,147.00 P-78 263 PH12-190 296 PH12-262 Quezon Power Ltd Co 50,065.00 P-79 193 PH12-068 Sagittarius Mines, Inc. 16,351,284.40 P-80 168 PH11-229 Sagittarius Mines, Inc. 1,456,004.33 P-81 191 PH11-230 Sagittarius Mines, Inc. 484,840.00 P-82 293 PH12-261 San Miguel Corporation 175,000.00 P-83 209 PH12-096 San Miguel Corporation 516,530.40 P-84 219 PH12-147 San Miguel Corporation 167,500.00 P-85 272 PH12-221 San Miguel Corporation 168,644.00 P-86 288 PH12-207 Shell Exploration B.V. 286,500.00 P-87 249 PH12-169 Silangang Mindanao Mining 2,864,824.00 P-88 238 PH12-166 Silangang Mindanao Mining 4,297,236.00 P-89 283 PH12-198 Sureste Properties, Inc. 780,500.00 P-90 177 PH12-033 Sureste Properties, Inc. 669,000.00 P-91 190 PH12-103 Sureste Properties, Inc. 67,500.00 P-92 189 PH12-119B Sureste Properties, Inc. 257,175.00 P-93 213 PH12-139 Sureste Properties, Inc. 557,500.00 P-94 230 PH12-158 Taganito Mining Corporation 1,275,478.80 P-95 261 PH12-215 Taganito Mining Corporation 1,913,218.20 P-96 299 PH12-275 Team Energy Corporation 2,210,650.07 P-97 146 PH12-066 PH12-065 Team Energy Corporation 2,210,650.07 P-98 186 PH11-160 PH11-216 Team Energy Corporation 554,697.47 P-99 285 PH12-201 Team Sual Corporation 5,304,096.20 P-100 158 PH12-067 201 PH11-162 Team Sual Corporation 2,336,808.50 P-101 275 PH12-219 Grand Total P252,058,620.19 Petitioner maintains that upon identifying the official receipts and invoices of each particular income payment, the same may be traced to a particular PCC. The PCC allegedly identifies each construction project of the petitioner, illustrated by petitioner as follows: OR No. Invoice No. Project Contract Code 242 PH12-165 MNLD11574 PH12-154 PH12-153 242 PH12-165 PH12-154 PH12-153 295 140 PH11-226 MNLD10544 152 PH11-113 MNLD10533 154 PH11-153 MNLD10544 156 PH11-239 MNLD11589 165 PH11-238 MNLD11589 172 PH12-008 MNLD11589 PH12-031 MNLD11589 173 PH12-030 MNLD11589 174 PH12-032 MNLD11589 185 PH12-070 MNLD11589 207 PH12-130 MNLD11589 212 PH12-132 MNLD11589 215 PH12-134 MNLD10544 217 PH12-139 MNLD12056 218 PH12-131 MNLD11589 225 PH12-127 MNLD11589 228 PH12-155 MNLD11589 229 PH12-157 MNLD10533 232 PH12-156 MNLD11589 244 PH12-172 MNLD11589 250 PH12-171 MNLD11589 258 PH12-188 MNLD11589 262 PH12-187 MNLD11589 265 PH12-194 MNLD10533 269 PH12-211 MNLD11589 271 PH12-212 MNLD11589 280 PH12-231 MNLD11589 286 PH12-254 MNLD11589 291 PH12-155 MNLD11589 292 PH12-232 MNLD11589 192 PH12-107 MNLD11583 226 PH12-146 MNLD11583 240 PH12-164 MNLD11583 256 PH12-185 MNLD11583 255 PH12-186 MNLD12189 276 PH12-209 MNLD11583 203 PH12-138 MNLD10541 PH12-089 PH12-090 MNLD11588 PH12-137 MNLD11521 222 PH12-091 MNLD12039 PH12-088 MNLD11521 234 PH12-170 MNLD12039 254 PH12-184 MNLD11588 PH12-192 MNLD10541 279 PH12-233 MNLD10541 279 PH12-234 MNLD10541 270 PH12-213 MNLD11550 287 PH12-252 MNLD12039 287 PH12-253 MNLD12039 143 PH11-172 MNLD10554 145 PH11-099 MNLD10554 153 PH11-218 MNLD10554 180 PH12-025 MNLD10554 181 PH12-027 MNLD10554 188 PH12-073 MNLD10554 211 PH12-075 MNLD10554 235 PH12-074 MNLD10554 236 PH12-145 MNLD10554 178 PH12-210 MNLD10554 179 PH12-081 MNLD11582 206 PH12-113 MNLD11582 147 PH11-223 MNLD07603 PH11-236 MNLD07603 PH11-240 MNLD07603 PH12-034 MNLD07603 175 PH12-069 MNLD07603 195 PH12-110 MNLD07603 PH09-126A MNLD07603 PH12-104 MNLD07603 PH12-095 MNLD07603 PH09-126B MNLD07603 221 PH12-129 MNLD07603 246 PH12-140 MNLD12158 245 PH12-152 MNLD07603 248 PH12-175 MNLD07603 268 PH12-204 MNLD07603 281 PH12-224 MNLD07603 282 PH12-216 MNLD07603 PH12-182 MNLD07603 162 PH12-023 MNLD11501 163 PH12-057 MNLD11501 166 PH12-208 MNLD11553 167 PH12-056 MNLD11553 194 PH12-055 MNLD11548 197 PH12-059 MNLD10534 199 PH12-117 MNLD11501 204 PH12-112 MNLD12065WW 251 PH11-228 MNLD10534 260 PH12-167 MNLD12065WW PH12-176 MNLD10534 259 PH12-189 MNLD11553 277 PH12-177 MNLD11548 294 PH12-235 MNLD11553 151 PH11-225 MNLD11571 160 PH11-242 MNLD11571 161 PH12-029 MNLD11571 176 PH11-210 MNLD10552 223 PH12-150 MNLD12038WC 233 PH12-151 MNLD12038WC 263 PH12-190 MNLD12038WC 296 PH12-262 MNLD12038WC 193 PH12-068 MNLD11542 168 PH11-229 MNLD11584 191 PH11-230 MNLD11584 293 PH12-261 MNLD12266 209 PH12-096 MNLD12087WC 219 PH12-147 MNLD12087WC 272 PH12-221 MNLD12245WC 288 PH12-207 MNLD12087WC 249 PH12-169 MNLD12197 238 PH12-166 MNLD12198 283 PH12-198 MNLD12198 177 PH12-033 MNLD11539 190 PH12-103 MNLD11539 189 PH12-119B MNLD12089 213 PH12-139 MNLD12056 230 PH12-158 MNLD11539 261 PH12-215 MNLD12240 299 PH12-275 MNLD12240 146 PH12-066 MNLD11555 PH12-065 MNLD11558 186 PH11-160 MNLD11555 MNLD11556 MNLD11557 MNLD11558 PH11-216 MNLD11555 MNLD11557 MNLD11558 285 PH12-201 MNLD12173 158 PH12-067 MNLD11559 MNLD11560 MNLD11561 MNLD11562 MNLD11563 MNLD11564 MNLD11565 201 PH11-162 MNLD11559 MNLD11560 MNLD11561 MNLD11562 MNLD11563 275 PH12-219 MNLD12164 MNLD12165 MNLD12166 MNLD12167 MNLD12168 Petitioner further alleges that by identifying the official receipts and invoices that correspond to a particular PCC, the amount of income payments recognized for each project, including the period it was declared as part of the gross income, may be ascertained. The total income recognized by petitioner from all its construction projects is allegedly reported in the Progress Service Report (PSR), which is then used in the preparation of the AFS for the taxable years 2012 and 2011. As asserted by petitioner, the amount of revenue reported in the AFS and ITR for 2012 was taken from the totals of the MTD column of the PSR. 2 Similarly, the amount of revenue reported in the AFS and in the ITR for 2011 was also taken from the totals of the MTD Columns of the PSR. 3 Based on the foregoing assertions of petitioner, the Court summarized the MTD revenue amounts taken from the totals of the MTD column of the PSR for years 2012 and 2011 4 and compared the same with the amounts of revenue per AFS/ITR, as follows: FY 2012 Particulars MTD Revenue 3110 TRA-Highway P4,043,828.00 3112 TRA-Marine 110,761,361.00 3232 WUD-Urban Development 28,276,343.00 3237 WUD-Water 45,125,090.00 3508 ENE-Power & Energy (202,213.00) 3520 EM-Environmental Management 125,555,674.00 3735 PDD-Planning & Development 43,230,073.00 Per MTD P356,790,156.00 Per AFS/ITR 351,432,751.00 Difference P5,357,405.00 FY 2011 Particulars MTD Revenue 3106 TRA-RSS P1,360,443.00 3110 TRA-Highway 5,408,989.00 3111 TRA-Aviation 44,995.00 3112 TRA-Marine 99,014,605.00 3232 WUD-Marine Development 16,483,215.00 3237 WUD-Water 79,517,679.00 3415 BE-MEP (51,149.00) 3417 BE-Strucutal 65,724.00 3508 ENE-Power & Energy 449,982.00 3520 EM-Environmental Management 57,361,441.00 3735 PDD-Planning & Development 39,302,715.00 Per MTD P298,958,639.00 Per AFS/ITR 317,050,222.00 Difference P(18,091,583.00) From the above table, it can be gleaned that there were differences in MTD revenue amounts vis--vis the revenue amounts per AFS/ITR for years 2012 and 2011. Nowhere in the records of the case can such discrepancies be attributed to. Neither did petitioner provide a reconciliation and explain what constitute the discrepancies. Even if petitioner indicated in the first table, as presented above, the year where the income payments related to the claimed CWTs were declared, the Court cannot trace the same with certainty in the PSR. In other words, the Court still cannot ascertain whether the income payments of the subject CWTs were indeed declared in petitioner's Annual ITR for the FY 2012, or in prior years as petitioner claims. Therefore, petitioner failed to comply with the third requisite. Petitioner must prove that the income payments related to the claimed CWTs were declared as part of the income in any given year, be it in the current or prior years, as the case may be. Petitioner alleges that Section 2.58.3 (B) of Revenue RR No. 2-98, as amended only requires, among others, that the income payments has been declared as part of the gross income. It does not have to be on the same taxable year of the claim. According to petitioner, it declared the income payments related to the claimed CWTs in fiscal years 2012 and 2011. Petitioner posits that the fact that portion of income payments was declared in prior years would not affect its compliance with the third requisite since Section 2.58.3 (B) of RR No. 2-98 requires only the declaration of income payments as part of the gross income. While it is correct that the law does not require that the income payments related to the claimed CWTs be included in the AFS/ITR of the petitioner/recipient on the same taxable year of the claim, still, petitioner must prove that the same were declared as part of the income in any given year, be it in the current or prior years, as the case may be. Not even the testimony of petitioner's witness, Ma. Lourdes Lascona, 5 that petitioner has documents to prove that petitioner included in its gross income declared per AFS/ITR the income payments subjected by the customers to CWT, can support petitioner's claim there being no proper reconciliation of the amounts per supporting documents submitted to substantiate the same. Likewise, the ICPA Report stating that "With respect to procedure no. 6, I ascertained that the income payments related to the amount being claimed were declared as Sales/Revenues/Receipts/Fees" is as well of no moment for there is nothing in the record to back it up. It bears stressing that under Section 2.58.3 (B) of RR No. 2-98, claims for refund involving creditable tax withheld shall be given due course when it is shown that the income payment has been declared as part of the gross income of the claimant. It is in this regard that petitioner fatally failed. As cases filed before this Court are litigated de novo, party-litigants should prove every minute aspect of their cases. 6 Thus, there should be no room for inconsistencies, especially on the part of claimant, who has the burden of proof to establish the factual basis of its claim for tax refund. Well-settled in this jurisdiction is the fact that actions for tax refund, as in this case, are in the nature of a claim for exemption and the law is not only construed in strictissimi juris against the taxpayer, but also the pieces of evidence presented entitling a taxpayer to an exemption is strictissimi scrutinized and must be duly proven. 7 Accordingly, the Court finds no cogent reason to reverse or modify the assailed Decision promulgated on May 7, 2018. Therefore, the instant Motion for Reconsideration should be denied for insufficiency of evidence. WHEREFORE , premises considered, petitioner's Motion for Partial Reconsideration (Re: Decision Rendered on May 7, 2018) is DENIED for lack of merit. SO ORDERED. (SGD.) CIELITO N. MINDARO-GRULLA Associate Justice Roman G. del Rosario, P.J. and Erlinda P. Uy, J. , concur. Footnotes 1. Exhibit "P-235", Q & A No. 14 of Amended Judicial Affidavit of Atty. Clifford E. Chua, April 7, 2016. 2. Exhibit "P-229", ICPA Report, pp. 66, 69, 71, 72, 74, 79 and 81. 3. Exhibit "P-229", ICPA Report, pp. 82, 83, 84, 86, 88, 89, 90, 91, 92, 97, and 100. 4. The line details of the MTD Columns are printed in very small font that it becomes unreadable and cannot be clearly seen. 5. Exhibit "P-16", Q & A No. 24 of Judicial Affidavit of Ma. Lourdes Lascona, June 24, 2015, docket, vol. I, p. 97. 6. Dizon vs. Court of Tax Appeals, et al. , G.R. No. 140944, April 30, 2008. 7. Atlas Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue , G.R. No. 159490, February 18, 2008.