Chevron Holdings, Inc. v. Commissioner of Internal Revenue

SECOND DIVISION [C.T.A. CASE NO. 9021. February 5, 2018.] CHEVRON HOLDINGS, INC. , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . DECISION CASTAEDA, JR. , J p : THE CASE This is a Petition for Review 1 filed by Chevron Holdings, Inc. to seek the refund or issuance of a tax credit certificate (TCC) in the aggregate amount of P101,103,433.99, allegedly representing its excess and unutilized input value-added tax (VAT) attributable to zero-rated transactions for the four (4) quarters of calendar year (CY) 2013. THE FACTS Petitioner Chevron Holdings, Inc. is the Philippine branch of Chevron Holdings, Inc. (CHI), a multinational company organized and existing under and by virtue of the laws of the State of Delaware, United States of America. It is licensed by the Securities and Exchange Commission (SEC) to transact business in the Philippines as a regional operating headquarters (ROHQ) under SEC Registration No. A199802486 dated June 3, 1998 with registered office address at the 35th Floor, Yuchengco Tower, RCBC Plaza, 6819 Ayala Avenue, 1200 Makati City. 2 Petitioner is likewise registered with the BIR as a VAT taxpayer and was issued a Certificate of Registration No. OCN 8RC0000039799 dated July 30, 1998 with Tax Identification Number (TIN) 201-056-391-000. 3 On the other hand, respondent is the duly appointed Commissioner of Internal Revenue vested under the appropriate laws with the authority to carry out the functions, duties, and responsibilities of said office, including, inter alia , the power to decide, approve, and grant refunds and/or tax credits of overpaid and erroneously paid or collected internal revenue taxes. He holds office at the 5th Floor, Bureau of Internal Revenue (BIR) National Office Building, Agham Road, Diliman, Quezon City. Petitioner's purpose, as ROHQ in the Philippines, is limited to 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. 4 Petitioner filed its Quarterly VAT Returns (BIR Form No. 2550Q) for the four quarters of CY 2013 on the following dates: CY 2013 VAT RETURN DATE FILED First Quarter Original April 24, 2013 5 Amended January 28, 2014 6 Second Quarter Original July 25, 2013 7 Amended March 10, 2014 8 Third Quarter Original October 22, 2013 9 Amended January 24, 2014 10 Fourth Quarter Original January 24, 2014 11 Amended February 19, 2014 12 Petitioner then filed with the BIR Large Taxpayer Services (BIR-LTS) and BIR Large Taxpayers Excise and Audit Division (BIR-LTEAD II) different administrative claims for the refund and/or issuance of TCC for unutilized input VAT for the four quarters of CY 2013, with the following details: CY 2013 Date of Filing of Administrative Claim Amount of Claim 1st Quarter October 31, 2014 13 P21,119,273.12 2nd Quarter November 3, 2014 14 P25,016,267.42 3rd Quarter November 4, 2014 15 P27,170,624.04 4th Quarter November 5, 2014 16 P27,797,269.41 On December 12, 2014, petitioner received Letter of Authority (LOA) No. LOA-124-2014-00000140 (eLA201100087136) 17 dated November 13, 2014 for the examination of petitioner's books of accounts and other accounting records for VAT for the period of January 1, 2013 to December 31, 2013. 18 On March 5, 2015, petitioner received a letter 19 dated January 30, 2015 from the BIR-LTS which denied its administrative claim for refund or issuance of TCC for unutilized input VAT for the four quarters of CY 2013 in the aggregate amount of P101,103,433.99. 20 Thus, petitioner filed the present Petition for Review on March 30, 2015. 21 Within the extended time granted by the Court, 22 respondent filed his Answer 23 on July 2, 2015, interposing the following special and affirmative defenses: " SPECIAL AND AFFIRMATIVE DEFENSES 4. Respondent hereby reiterates and repleads the preceding graphs of this Answer as part of her Special and Affirmative Defenses; Petitioner's claim for refund of excess and unutilized input VAT should be denied for petitioner's failure to establish the recipients of its services do business outside the Philippines 5. Petitioner anchors its claim for refund or tax credit under Section 108 (B) of the NIRC as amended, which states that: (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. xxx xxx xxx (2) Services other than those mentioned in the preceding paragraph, rendered to a person engaged in business conducted outside the Philippines or to a non-resident 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) . xxx xxx xxx 6. According to the above stated provision, services must be performed in the Philippines by a VAT registered person to a person engaged in business conducted outside the Philippines or to a non-resident person not engaged in business who is outside the Philippines when the services are performed. 7. Compliance with the aforementioned provisions of the 1997 NIRC, as amended, as well as the existing rules and regulations are necessary to establish its claim, that indeed there is the presence of valid zero-rated sales which would warrant the grant of the administrative application for refund of its unapplied/unutilized input VAT as well as the submission of supporting documents to corroborate the claim being applied for. 8. Simply put, the place where the recipient of the service conducts its business is material to consider a zero-rated transaction. In fact, in the Commissioner of Internal Revenue v. Burmeister and Scandinavian Contractor Mindanao, Inc. case, the High Court found that, although the place of the consumption of the service does not affect the entitlement of a transaction to zero-rating, the place where the recipient conducts its business does. 9. The Supreme Court in the case of Accenture, Inc. vs. CIR , G.R. No. 190102, July 11, 2012, ruled as follows: Accenture has failed to establish that the recipients of its services do business outside the Philippines . Accenture argues that based on the documentary evidence it presented, it was able to establish the following circumstances: 1. The records of the Securities and Exchange Commission (SEC) show that Accenture's clients have not established any branch office in which to do business in the Philippines. 2. For these services, Accenture bills another corporation, Accenture Participations B.V. (APB), which is likewise a foreign corporation with no 'presence in the Philippines.' 3. Only those not doing business in the Philippines can be required under BSP rules to pay in acceptable currency for their purchase of goods and services from the Philippines. Thus, in a domestic transaction, where the provider and recipient of services are both doing business in the Philippines, the BSP cannot require any party to make payment in foreign currency. Accenture claims that these documentary pieces of evidence are supported by the Report of Emmanuel Mendoza, the Court-commissioned Independent Certified Public Accountant. He ascertained that Accenture's gross billings pertaining to zero-rated sales were all supported by zero-rated Official Receipts and Billing Statements. These documents show that these zero-rated sales were paid in foreign exchange currency and duly accounted for in the rules and regulations of the BSP. In the CTA's opinion, however, the documents presented by Accenture merely substantiate the existence of the sales, receipt of foreign currency payments, and inward remittance of the proceeds of these sales duly accounted for in accordance with BSP rules. Petitioner presented no evidence whatsoever that these clients were doing business outside the Philippines. Accenture insists, however, that it was able to establish that it had rendered services to foreign corporations doing business outside the Philippines, unlike in Burmeister , which allegedly involved a foreign corporation doing business in the Philippines. We deny Accenture's Petition for a tax refund. The evidence presented by Accenture may have established that its clients are foreign. This fact does not automatically mean, however, that these clients were doing business outside the Philippines . After all, the Tax Code itself has provisions for a foreign corporation engaged in business within the Philippines and vice versa, to wit: SEC. 22. Definitions . When used in this Title: xxx xxx xxx (H) The term 'resident foreign corporation' applies to a foreign corporation engaged in trade or business within the Philippines. (I) The term 'nonresident foreign corporation' applies to a foreign corporation not engaged in trade or business within the Philippines. (Emphasis in the original) Consequently, to come within the purview of Section 108(B)(2), it is not enough that the recipient of the service be proven to be a foreign corporation; rather, it must be specifically proven to be a nonresident foreign corporation. There is no specific criterion as to what constitutes 'doing' or 'engaging in' or 'transacting' business. We ruled thus in Commissioner of Internal Revenue v. British Overseas Airways Corporation : x x x. There is no specific criterion as to what constitutes 'doing' or 'engaging in' or 'transacting' business. Each case must be judged in the light of its peculiar environmental circumstances. The term implies a continuity of commercial dealings and arrangements, and contemplates, to that extent, the performance of acts or works or the exercise of some of the functions normally incident to, and in progressive prosecution of commercial gain or for the purpose and object of the business organization. 'In order that a foreign corporation may be regarded as doing business within a State, there must be continuity of conduct and intention to establish a continuous business, such as the appointment of a local agent, and not one of a temporary character.' A taxpayer claiming a tax credit or refund has the burden of proof to establish the factual basis of that claim. Tax refunds, like tax exemptions, are construed strictly against the taxpayer. Accenture failed to discharge this burden. It alleged and presented evidence to prove only that its clients were foreign entities. However, as found by both the CTA Division and the CTA En Banc , no evidence was presented by Accenture to prove the fact that the foreign clients to whom petitioner rendered its services were clients doing business outside the Philippines. As ruled by the CTA En Banc , the Official Receipts, Intercompany Payment Requests, Billing Statements, Memo Invoices-Receivable, Memo Invoices-Payable, and Bank Statements presented by Accenture merely substantiated the existence of sales, receipt of foreign currency payments, and inward remittance of the proceeds of such sales duly accounted for in accordance with BSP rules, all of these were devoid of any evidence that the clients were doing business outside of the Philippines. 10. Petitioner in its petition for review merely mentioned in passing that petitioner rendered services to persons located and conducting business outside the Philippines. Pertinent part of the petition is quoted hereunder for easy reference, to wit: 'During the four quarters of CY 2013, Petitioner rendered services in the Philippines to persons located and conducting business outside the Philippines. As consideration for such services. Petitioner was paid in acceptable foreign currencies and accounted for in accordance with rules and regulations of Bangko Sentral ng Pilipinas (BSP).' 11. The foregoing allegations are mere self-serving allegations not supported by any concrete evidence. 12. Further, petitioner alleged in its petition that 'Despite the issuance of the LOA, Respondent neither notified nor required petitioner to submit any additional document in support of its administrative claims for refund.' 13. Such argument runs contrary to its own allegations contained under paragraphs 10, 11, 12 and 13 of the petition which states that: Petitioner attached to its administrative claim for refund the relevant documents required by laws and pertinent regulations. 14. In addition, petitioner through its General Manager Kee Teek Hong executed a sworn certification 4 which certify that the documents submitted are complete for the purpose of processing its claim for Value Added Tax (VAT) refund/credit and that those documents are the only documents that will be presented to support its claim. Pursuant to Revenue Memorandum Circular No. 54-2014 dated June 11, 2014, a decision shall be rendered by respondent based only on the documents submitted. 15. A perusal of the documents submitted disclosed that not a bit would prove that petitioner's clients are doing business outside the Philippines. 16. Accordingly, the documents submitted could not justify the essential requirement of proving that the services were rendered to foreign client doing business outside the Philippines to qualify as zero-rated sales. Thus, the claim for refund/tax credit certificate of unutilized input tax amounting to P101,103,433.99 covering the period January to December 2013 was properly denied. 17. In an action for refund, the burden of proof is on the taxpayer who claims the exemption and he must justify his claim by the clearest grant under the Constitutional or statutory law and cannot be permitted by vague implications. The taxpayer is charged with the burden of proving that he has complied with and satisfied all the statutory and administrative requirements to be entitled to the tax refund." The Pre-Trial Conference was set on August 6, 2015. 24 The Respondent's Pre-Trial Brief 25 was filed on September 10, 2015; while the Petitioner's Pre-Trial Brief 26 was filed on September 11, 2015. The parties filed their Joint Stipulations of Facts and Issues 27 on October 7, 2015. This was approved by the Court and adopted in the Pre-Trial Order 28 on October 14, 2015. Upon motion of petitioner, 29 the Court commissioned Ms. Czarina R. Miranda, as the Independent Certified Public Accountant (ICPA). 30 During trial, petitioner presented the following witnesses: Ms. Carolyn C. Ardina, 31 its Finance-Coordinator-Business Analysis and Support; Ms. Ma. Nerita C. Ferreol, 32 its Manager-Business Analysis and Support; Ms. Jennifer A. Valdez, 33 its Fixed Assets Team Leader; and Ms. Czarina R. Miranda, 34 the Court-commissioned ICPA. Petitioner's Formal Offer of Evidence with Motion to Set Commissioner's Hearing 35 was filed on April 29, 2016. In the Resolution 36 dated May 24, 2016, the Court granted petitioner's Motion to Set Commissioner's Hearing while the resolution of its Formal Offer of Evidence was held in abeyance. Thereafter, petitioner filed a Supplemental Formal Offer of Evidence 37 on June 17, 2016. This was resolved by the Court together with petitioner's Formal Offer of Evidence in the Resolution 38 dated August 24, 2016, wherein the Court admitted Exhibits "P-1", "P-2", "P-3", "P-4.1", "P-4.2", "P-5.1", "P-5.2", "P-6.1", "P-6.2", "P-7.1", "P-7.2", "P-8.1", "P-8.1.1", "P-8.2", "P-8.2.1", "P-8.3", "P-8.3.1", "P-8.4", "P-8.4.1", "P-9", "P-10", "P-11.1", "P-11.2", "P-12.1", "P-12.2", "P-13", "P-14.1", "P-14.2", "P-15.1", "P-15.2", "P-16.1", "P-16.2", "P-16.3", "P-16.4", "P-16.5", "P-16.6", "P-16.7", "P-16.8", "P-16.9", "P-16.10", "P-16.11", "P-16.12", "P-16.13", "P-16.14", "P-16.15", "P-16.16", "P-16.17", "P-16.18", "P-16.19", "P-16.20", "P-16.21", "P-16.22", "P-16.23", "P-16.24", "P-16.25", "P-16.26", "P-16.27", "P-16.28", "P-16.29", "P-16.30", "P-16.31", "P-16.32", "P-16.33", "P-16.34", "P-16.35", "P-16.36", "P-16.37", "P-16.38", "P-16.39", "P-16.40", "P-16.41", "P-16.42", "P-16.43", "P-16.44", "P-16.45", "P-16.46", "P-16.47", "P-16.48", "P-16.49", "P-16.50", "P-16.51", "P-16.52", "P-16.53", "P-16.54", "P-16.55", "P-16.56", "P-16.57", "P-16.58", "P-16.59", "P-17.1", "P-17.2", "P-17.3", "P-17.3.1", "P-17.4", "P-17.5", "P-17.6", "P-17.7", "P-17.8", "P-17.9", "P-17.9-1", "P-17.10", "P-17.11", "P-17.12", "P-17.13", "P-17.13.1", "P-17.14", "P-17.14.1", "P-17.15", "P-17.16", "P-17.17", "P-17.17.1", "P-17.18", "P-17.19", "P-17.20", "P-17.21", "P-17.22", "P-17.23", "P-17.23.1", "P-17.24", "P-17.25", "P-17.26", "P-17.26.1", "P-17.27", "P-17.28", "P-17.29", "P-17.29.1", "P-17.30", "P-17.31", "P-17.32", "P-17.33", "P-17.34", "P-17.35", "P-17.36", "P-17.36.1", "P-17.37", "P-17.38", "P-17.39", "P-17.40", "P-17.41", "P-17.42", "P-17.43", "P-17.44", "P-17.45", "P-17.46", "P-18.1", "P-18.2", "P-18.3", "P-18.4", "P-18.5", "P-18.6", "P-18.7", "P-18.8", "P-19.1", "P-19.1.1", "P-19.2", "P-19.2.1", "P-19.3", "P-19.3.1", "P-19.4", "P-19.4.1", "P-19.5", "P-19.5.1", "P-19.6", "P-19.6.1", "P-19.7", "P-19.7.1", "P-19.8", "P-19.8.1", "P-19.9", "P-19.9.1", "P-19.10", "P-19.10.1", "P-19.11", "P-19.11.1", "P-19.12", "P-19.12.1", "P-19.13", "P-19.13.1", "P-19.14", "P-19.14.1", "P-19.15", "P-19.15.1", "P-19.16", "P-19.16.1", "P-19.17", "P-19.17.1", "P-19.18", "P-19.18.1", "P-19.19", "P-19.19.1", "P-19.20", "P-19.20.1", "P-19.21", "P-19.21.1", "P-19.22", "P-19.22.1", "P-19.23", "P-19.23.1", "P-19.24", "P-19.24.1", "P-19.25", "P-19.25.1", "P-19.26", "P-19.26.1", "P-19.27", "P-19.27.1", "P-19.28", "P-19.28.1", "P-19.29", "P-19.29.1", "P-19.30", "P-19.30.1", "P-19.31", "P-19.31.1", "P-19.32", "P-19.32.1", "P-19.33", "P-19.33.1", "P-19.34", "P-19.34.1", "P-19.35", "P-19.35.1", "P-19.36", "P-19.36.1", "P-19.37", "P-19.37.1", "P-19.38", "P-19.38.1", "P-19.39", "P-19.39.1", "P-19.40", "P-19.40.1", "P-19.41", "P-19.41.1", "P-19.42", "P-19.42.1", "P-19.43", "P-19.43.1", "P-19.44", "P-19.44.1", "P-19.45", "P-19.45.1", "P-19.46", "P-19.46.1", "P-19.47", "P-19.47.1", "P-19.48", "P-19.48.1", "P-19.49", "P-19.49.1", "P-19.50", "P-19.50.1", "P-19.51", "P-19.51.1", "P-19.52", "P-19.52.1", "P-20", "P-20.1", "P-20.1.1", "P-20.2", "P-20.2.1", "P-20.3", "P-20.3.1", "P-20.4", "P-20.4.1", "P-20.5", "P-20.5.1", "P-20.6", "P-20.6.1", "P-20.7", "P-20.7.1", "P-20.8", "P-20.8.1", "P-21.1", "P-21.2", "P-21.3", "P-21.4", "P-21.5", "P-21.6", "P-21.7", "P-21.8", "P-21.9", "P-21.10", "P-21.11", "P-21.12", "P-21.13", "P-21.14", "P-21.15", "P-21.16", "P-21.17", "P-21.18", "P-21.19", "P-21.20", "P-21.21", "P-21.22", "P-21.23", "P-21.24", "P-21.25", "P-21.26", "P-21.27", "P-21.28", "P-21.29", "P-22.1", "P-22.2", "P-22.3", "P-23", "P-24", "P-25", "P-26", "P-26-1", "P-27", "P-27.1", "P-28", "P-28-1", "P-29.1", "P-29.2", "P-29.3", "P-29.4", "P-31", "P-32", "P-33", "P-34", "P-35.1", "P-35.2", "P-35.3", "P-35.4", "P-36.1", "P-36.2", "P-36.3", "P-36.4", "P-37.1", "P-37.2", "P-37.3", "P-37.4", "P-38.1", "P-38.2", "P-38.3", "P-38.4", "P-39.1", "P-39.2", "P-39.3", "P-40.1", "P-40.2", "P-40.3", "P-40.4", "P-41", inclusive of sub-markings, "P-42", inclusive of sub-markings, "P-43", "P-44.1", "P-44.2", "P-44.3", "P-44.4", "P-45", "P-46", "P-47", "P-48.1", "P-48.2", "P-48.3", "P-48.4", "P-49.1", "P-49.2", "P-49.3", "P-50.1", "P-50.2", "P-51.1", "P-51.2", "P-51.3", "P-51.4", "P-52.1", "P-52.2", "P-52.3", "P-52.4", "P-53.1", "P-53.2", "P-53.3", "P-53.4", "P-54", "P-55", "P-55.1", "P-56", "P-56.1", "P-57.1", "P-57.2", "P-58.1", "P-58.2", "P-58.3", "P-59.1", "P-59.2", "P-60.1", "P-60.2", "P-61.1", "P-61.2", "P-62.1", "P-62.2", "P-63.1", "P-63.2", "P-64.1", "P-64.2", "P-65.1", "P-65.2", "P-66.1", "P-66.2", "P-67", "P-67.1", "P-68", "P-68.1", and "P-75". Respondent then presented his sole witness, Revenue Officer Dominic Morales. 39 Respondent's Formal Offer of Evidence 40 was filed on September 29, 2016. In the Resolution 41 dated November 25, 2016, the Court admitted Exhibits "R-1", "R-2", "R-3", "R-4", "R-5", "R-6", "R-7", and "R-7-a". Petitioner's Memorandum 42 was filed on January 16, 2017; while respondent failed to file his memorandum. 43 Thus, in the Resolution 44 dated February 6, 2017, the present Petition for Review was declared by the Court as deemed submitted for decision. THE ISSUE The parties stipulated the following issue 45 for resolution of this Court: Whether or not Petitioner is entitled to the claim for refund or issuance of TCC for its excess or unutilized input VAT in the aggregate amount of Php101,103,433.99 for the four (4) quarters of CY 2013. THE COURT'S RULING Pertinent to the resolution of the present case is Section 112 (A) and (C) of the National Internal Revenue Code (NIRC) of 1997, as amended, which provides: "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." Based on the foregoing provision, in order to be entitled to refund or tax credit of input tax due or paid attributable to zero-rated or effectively zero-rated sales, the following requisites must be complied with: 1. the taxpayer-claimant must be VAT-registered; 2. there must be zero-rated or effectively zero-rated sales; 3. input taxes were incurred or paid; 4. such input taxes are attributable to zero-rated or effectively zero-rated sales; 5. said input taxes were not applied against any output VAT liability; and 6. the claim was filed within the prescribed periods both in the administrative and judicial levels. Before addressing the stipulated issue, the Court shall first determine the timeliness of petitioner's administrative and judicial claims. Petitioner's administrative and judicial claims were timely filed Pursuant to Section 112 (A) of NIRC of 1997, as amended, the application for tax credit certificate/refund of unutilized excess input VAT 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, second, third and fourth quarters of CY 2013, which closed on March 31, 2013, on June 30, 2013, on September 30, 2013 and on December 31, 2013, respectively. Counting two years from the said dates, petitioner had until March 31, 2015, June 30, 2015, September 30, 2015 and December 31, 2015, respectively, within which to file its administrative claim for tax credit certificate/refund. Therefore, petitioner's administrative claims for the said quarters were seasonably filed on October 31, 2014, on November 3, 2014, on November 4, 2014 and on November 5, 2014, respectively, as shown below: CY 2013 Close of the Taxable Quarter Last Day to File Administrative Claim Date of Filing of Administrative Claim 1st Quarter March 31, 2013 March 31, 2015 October 31, 2014 46 2nd Quarter June 30, 2013 June 30, 2015 November 3, 2014 47 3rd Quarter September 30, 2013 September 30, 2015 November 4, 2014 48 4th Quarter December 31, 2013 December 31, 2015 November 5, 2014 49 Anent the timeliness of petitioner's judicial appeal, Section 112 (C) of the NIRC of 1997, as amended, states the time requirements for filing a judicial claim for the refund or tax credit of input VAT. The legal provision speaks of two periods: the period of 120 days, which serves as a waiting period to give time for the CIR to act on the administrative claim for a refund or credit; and the period of 30 days, which refers to the period for filing a judicial claim with the CTA. 50 It must be noted that the 120-day period begins to run from the date of submission of complete documents supporting the administrative claim. If there is no evidence showing that the taxpayer was required to submit or actually submitted additional documents after the filing of the administrative claim, it is presumed that the complete documents accompanied the claim when it was filed. 51 Accordingly, counting 120 days from October 31, 2014, November 3, 2014, November 4, 2014, and November 5, 2014, the respective dates when petitioner filed its administrative claims for refund/issuance of TCC together with the supporting documents covering the first, second, third and fourth quarters of CY 2013, respondent had until February 28, 2015, March 3, 2015, March 4, 2015 and March 5, 2015, respectively, to act on the said claims. However, the records show that it was only on March 5, 2015 that petitioner received a copy of the letter 52 dated January 30, 2015 from the BIR-LTS denying its administrative claim for refund/issuance of TCC of input VAT for the year 2013. 53 Considering that the denial of petitioner's claim covering the first, second and third quarters was issued by respondent beyond the 120-day period, the 30-day period within which to appeal the said claims to this Court is reckoned from February 28, 2015, March 3, 2015 and March 4, 2015 and ended on March 30, 2015, April 2, 2015 and April 3, 2015, respectively. On the other hand, respondent's letter-denial was timely issued with regard to petitioner's claim covering the fourth quarter of CY 2013; thus, the 30-day period to appeal such claim is counted from the date of the denial on March 5, 2015 until April 4, 2015. Accordingly, the Petition for Review covering petitioner's claims for the first, second, third and fourth quarters of CY 2013 was timely filed before this Court on March 30, 2015, as shown below: CY 2013 Date of Filing of Adm. Claim End of 120 days for the CIR to decide on the claim Date of CIR's Denial End of 30 days from CIR's inaction End of 30 days from CIR's Denial Date of Filing of Petition for Review 1st Quarter 31-Oct-14 28-Feb-15 05-Mar-15 30-Mar-15 04-Apr-15 30-Mar-15 2nd Quarter 03-Nov-14 03-Mar-15 02-Apr-15 3rd Quarter 04-Nov-14 04-Mar-15 03-Apr-15 4th Quarter 05-Nov-14 05-Mar-15 Having determined that petitioner timely filed both its administrative and judicial claims, the Court shall now proceed to make a determination of petitioner's compliance with the other requisites. Petitioner is a VAT-registered entity and had zero-rated sales during the subject periods Petitioner complied with the first requisite considering that it is a VAT-registered taxpayer with BIR Certificate of Registration No. OCN8RC0000039799 dated July 30, 1998 with Taxpayer's Identification No. 201-056-391-000. 54 On the second requisite, i.e. , the existence of zero-rated sales, petitioner claims that the services it rendered to its affiliates abroad, which were paid for in foreign currency, are transactions subject to zero percent (0%) VAT in accordance with Section 108 (B) (2) of the NIRC of 1997, as amended, which states that: "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);" In the case of Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc. , 55 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 complied with the first requisite. Petitioner is licensed by the Securities and Exchange Commission to transact business in the Philippines as a regional operating headquarters (ROHQ) 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. 56 These services clearly fall within the scope of "services other than processing, manufacturing or repacking of goods" contemplated by the aforementioned provision. In relation 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;" (Emphasis supplied) "SEC. 4.113-1. Invoicing Requirements . (A) A VAT-registered person shall issue : xxx xxx xxx (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. Only VAT-registered persons are required to print their TIN followed by the word 'VAT' in their invoice or official receipts. Said documents shall be considered as a 'VAT Invoice' or VAT official receipt. All purchases covered by invoices/receipts other than VAT Invoice/VAT Official Receipt shall not give rise to any input tax. VAT invoice/official receipt shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of his accounting records. (B) Information contained in VAT invoice or VAT official receipt . The following information shall be indicated in VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person, followed by his TIN; (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the VAT; Provided , That: xxx 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. It was established that for services rendered to its affiliates for the four taxable quarters of CY 2013, petitioner was paid in US dollars which were accounted for in accordance with the BSP rules and regulations as evidenced by the Certifications of Inward Remittances 57 and Bank Statements 58 for CY 2013 issued by JP Morgan Chase Bank N.A.-Manila Branch and duly supported by VAT zero-rated official receipts 59 issued by petitioner to its client-affiliates. Thus, the second requisite has also been satisfied. 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. Certification of Non-Registration of Company issued by the SEC; 60 2. Articles/Certificate of Incorporation/Registration and/or other similar documents; 61 3. Tax Residence Certificates; 62 4. Screenshot of Chevron Subsidiary Governance Website; 63 5. Screenshot of US SEC Website; 64 and 6. Service Agreements. 65 However, 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 of Company show that the named entities are not registered corporations or partnerships in the Philippines, the same do not prove that such entities are non-resident foreign corporations doing business outside the Philippines. The same holds true with the Articles/Certificates of Incorporation/Registration and Tax Residence Certificates which only prove that therein named entities were incorporated/organized abroad. However, these documents do not necessarily establish that such entities are not doing business in the Philippines. Likewise, the service agreements only indicate the names and addresses of petitioner's customers to whom it renders services but they do not establish that such customers are non-resident foreign corporations doing business outside the Philippines. In the case of Sitel Philippines Corporation (formerly Clientlogic Phils., Inc.) vs. Commissioner of Internal Revenue , 66 the Supreme Court held that while Sitel's documentary evidence, which included Certifications issued by the Securities and Exchange Commission and Agreements between Sitel and its foreign clients, may have established that Sitel rendered services to foreign corporations and received payment therefor through inward remittances, said documents failed to specifically prove that such foreign clients were doing business outside the Philippines or have a continuity of commercial dealings outside the Philippines. Therefore, 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 proof of incorporation/registration in a foreign country ( e.g. , Articles/Certificate of Incorporation/Registration and/or Tax Residence Certificate) and that there is no other indication which would disqualify said entity in being classified as a non-resident foreign corporation. In this regard, the Court cannot give credence or probative value to the printed screenshots of Chevron Subsidiary Governance Website 67 as the information contained therein were retrieved from the database set-up and maintained by petitioner's group of companies. Thus, the said documents are self-serving and can be easily manipulated to favor petitioner in view of its affinity with the entities that maintain or keep the said database. Thus, only the following clients of petitioner for the four quarters of CY 2013 shall be considered as non-resident foreign corporations doing business outside the Philippines: Client SEC Certificate of Non- Registration Articles/Certificate of Incorporation/Registration and/or other similar document Tax Residence Certificate Screenshot of US SEC Website Exhibit No. Document Asia Pacific Marine Services (EF) B.V. P-16.1 - - P-18.1 and P-18.8 - Chevron Corporation P-16.14 P-17.8, P-17.40 Restated Certificate of Incorporation P-18.3 - Chevron (China) Investment Co. Ltd. P-16.15 P-17.9 to P-17.9.1 Articles of Association - - Chevron Hong Kong Limited P-16.22 P-17.12 Certificate of Change of Name - - Chevron International Limited P-16.24 P-17.13 to P-17.13.1 Certificate of Incorporation - - Chevron International Pte. Ltd. P-16.25 P-17.14 to P-17.14.1, P-17.43 Memorandum and Articles of Association, Certificate Confirming Incorporation of Company - - Chevron Iraq (Sarta) Limited-Branch P-16.26 P-17.15 Memorandum of Association of Company Limited by Shares - - Chevron Liberia Limited P-16.27 P-17.16 Certificate of Business Registration (Foreign Corporation) - - Chevron Lubricants Lanka PLC P-16.28 P-17.17 to P-17.17.1 Articles of Association - - Chevron Malaysia Limited P-16.29 P-17.18 Certificate of Change of Name and Incorporation - - Chevron Marine Products LLC-Int'l P-16.30 P-17.19 Certificate of Amendment of Certificate of Formation - - Chevron Neftegaz, Inc. P-16.32 P-17.20 Certificate of Amendment of Certificate of Incorporation - - Chevron New Zealand P-16.33 P-17.21, P-17.44 Certificate of Incorporation P-18.4 - Chevron North Sea Limited P-16.34 P-17.22, P-17.41 Certificate of Incorporation on Change of Name P-18.5 P-20.3 Chevron Oronite Company LLC P-16.35 P-17.23 to P-17.23.1 Certificate of Formation - P-20.4 Chevron Oronite Pte. Ltd. P-16.36 P-17.24 Notice of Resolution of Change of Name - P-20.5 Chevron Overseas Services Corporation P-16.37 P-17.25 Certificate of Amendment of Certificate of Incorporation - - Chevron Pakistan Limited P-16.38 P-17.26 to P-17.26.1 Certification issued by the Registrar General of Bahama Islands - - Chevron Products UK Limited P-16.41 P-17.27 Certificate of Incorporation of Change of Name P-18.6 - Chevron Shipping Company LLC P-16.44 P-17.28 Certificate of Amendment of Certificate of Formation - - Chevron Singapore Pte. Ltd. P-16.45 P-17.29 to P-17.29.1 Memorandum and Articles of Association - - Chevron South Africa (Pty) Limited P-16.46 P-17.30 Certificate of Change of Name of Company - - Chevron (Thailand) Limited P-16.47 P-17.31, P-17.46 Certificate of Change of Name and Incorporation, Letter Certification issued by the Registrar of Foreign Business Operation P-18.7 P-20.6 Chevron Thailand Exploration and Production Ltd. P-16.48 P-17.32 Commercial Registration Certificate - P-20.7 Chevron (Tianjin) Lubricants Co. Ltd. P-16.49 P-17.33 Certificate of Approval for Establishment of Enterprises with Foreign Investment in the People's Republic of China - - Chevron Trading Pte. Ltd. P-16.50 P-17.34 Certificate Confirming Incorporation with Memorandum and Articles of Association - - PT Chevron Oil Products Indonesia P-16.56 P-17.36 to P-17.36.1 Domicile Information Letter - - Chevron Asia South Ltd. P-16.7 P-17.3 to P-17.3.1 Articles of Association - - UECSL-Chuandongbei Branch P-16.59 P-17.37 Certificate of Incorporation - - Chevron Bangladesh Blk Thirteen/Fourteen P-16.10 P-17.5 Certificate of Incorporation on Change of Name - - Chevron (Cambodia) Limited P-16.12 P-17.6 Articles of Incorporation - - Chevron Asia Pacific Holdings Branch P-16.5 P-17.2 Certificate of Continuance - - Chevron USA, Inc. (Singapore Branch) P-16.52 P-17.42 Certificate of Registration of Foreign Company - - Accordingly, out of the P3,094,815,091.98 68 zero-rated sales declared per petitioner's Quarterly VAT Returns for the four quarters of CY 2013, only the amount of P720,308,940.84, broken down below, qualifies for VAT zero-rating under Section 108 (B) (2) of the NIRC of 1997, as amended: O.R. No. O.R. Date Client Amount in USD Amount in PHP Exhibit P-31 FIRST QUARTER OF CY 2013 (Exhibit P-53.1) 3648 24-Jan-13 Chevron Marine Products LLC-Int'l 15,126.91 613,667.75 page 3 3651 25-Jan-13 Chevron International Pte. Ltd. 340,262.73 13,809,364.04 page 6 3652 25-Jan-13 Chevron New Zealand 286,837.61 11,641,136.77 page 7 3653 25-Jan-13 Chevron Corporation 235,758.37 9,568,115.67 page 8 3654 25-Jan-13 Chevron Singapore Pte. Ltd. 138,909.01 5,637,540.99 page 9 3655 25-Jan-13 Chevron North Sea Limited 118,740.21 4,819,002.03 page 10 3656 25-Jan-13 Chevron USA, Inc. (Singapore Branch) 103,457.05 4,198,743.91 page 11 3657 25-Jan-13 Chevron (Cambodia) Limited 24,649.33 1,000,378.65 page 12 3658 25-Jan-13 Chevron Neftegaz, Inc. 7,050.21 286,128.65 page 13 3660 25-Jan-13 Chevron Asia Pacific Holdings Branch 62,704.77 2,544,836.44 page 15 3661 28-Jan-13 Chevron Oronite Pte. Ltd. 8,513.83 345,388.64 page 16 3663 20-Feb-13 Chevron Marine Products LLC-Int'l 3,662.30 148,813.49 page 18 3666 22-Feb-13 Chevron Corporation 333,822.81 13,553,504.26 page 21 3667 22-Feb-13 Chevron International Pte. Ltd. 257,510.50 10,455,156.31 page 22 3669 22-Feb-13 Chevron New Zealand 203,752.28 8,272,524.56 page 24 3670 22-Feb-13 Chevron (Thailand) Limited 176,462.51 7,164,535.53 page 25 3671 22-Feb-13 Chevron Hong Kong Limited 166,560.98 6,762,524.56 page 26 3672 22-Feb-13 Chevron USA, Inc. (Singapore Branch) 132,221.37 5,368,305.72 page 27 3673 22-Feb-13 Chevron North Sea Limited 106,403.98 4,320,096.63 page 28 3675 22-Feb-13 Chevron (Cambodia) Limited 20,175.92 819,160.37 page 30 3676 22-Feb-13 Chevron Neftegaz, Inc. 10,440.68 423,900.93 page 31 3679 25-Feb-13 Chevron Malaysia Limited 108,568.87 4,424,159.33 page 34 3680 26-Feb-13 Chevron Oronite Pte. Ltd. 1,260.02 51,324.64 page 35 3682 21-Mar-13 Chevron Marine Products LLC-Int'l 3,662.30 148,692.65 page 37 3684 25-Mar-13 Chevron Corporation 339,431.84 13,843,060.36 page 39 3685 25-Mar-13 Chevron New Zealand 203,549.43 8,301,363.38 page 40 3686 25-Mar-13 Chevron South Africa (Pty) Limited 196,099.55 7,997,534.67 page 41 3688 25-Mar-13 Chevron USA, Inc. (Singapore Branch) 131,705.38 5,371,345.02 page 43 3689 25-Mar-13 Chevron North Sea Limited 115,358.17 4,704,656.20 page 44 3690 25-Mar-13 Chevron Neftegaz, Inc. 10,440.68 425,802.61 page 45 3692 26-Mar-13 Chevron (Cambodia) Limited 23,466.81 958,220.09 page 47 Subtotal 157,978,984.85 SECOND QUARTER OF CY 2013 (Exhibit P-53.2) 3693 01-Apr-13 Chevron Lubricants Lanka PLC 11,643.12 475,423.44 page 48 3694 01-Apr-13 Chevron (Tianjin) Lubricants Co. Ltd. 1,309.72 53,479.79 page 49 3695 18-Apr-13 Chevron Marine Products LLC-Int'l 3,662.30 151,272.20 page 50 3696 18-Apr-13 UECSL-Chuandongbei Branch 374.98 15,488.64 page 51 3698 23-Apr-13 Chevron International Limited 58,888.53 2,418,420.12 page 53 3699 24-Apr-13 Chevron New Zealand 203,549.46 8,397,254.95 page 54 3703 25-Apr-13 Chevron Corporation 330,225.62 13,656,973.53 page 57 3704 25-Apr-13 Chevron Hong Kong Limited 169,038.51 6,990,839.95 page 58 3705 25-Apr-13 Chevron International Pte. Ltd. 139,136.01 5,754,177.42 page 59 3706 25-Apr-13 Chevron USA, Inc. (Singapore Branch) 133,911.63 5,538,115.38 page 60 3707 25-Apr-13 Chevron North Sea Limited 113,434.33 4,691,246.07 page 61 3708 25-Apr-13 Chevron Liberia Limited 104,441.24 4,319,323.41 page 62 3709 25-Apr-13 Chevron Malaysia Limited 103,502.79 4,280,512.41 page 63 3714 25-Apr-13 Chevron South Africa (Pty) Limited 39,309.50 1,625,703.06 page 68 3715 25-Apr-13 Chevron Oronite Company LLC 33,490.35 1,385,043.42 page 69 3717 25-Apr-13 Chevron Neftegaz, Inc. 10,440.68 431,789.91 page 71 3718 25-Apr-13 Chevron Trading Pte. Ltd. 7,552.34 312,338.30 page 72 3719 25-Apr-13 Chevron Marine Products LLC-Int'l 5,557.50 229,838.71 page 73 3723 25-Apr-13 PT Chevron Oil Products Indonesia 407.05 16,834.16 page 76 3724 25-Apr-13 Chevron Asia South Ltd. 137.28 5,677.42 page 77 3727 26-Apr-13 Chevron (Thailand) Limited 178,392.63 7,359,431.93 page 80 3729 26-Apr-13 Chevron (Cambodia) Limited 23,466.80 968,102.31 page 82 3730 26-Apr-13 Chevron Products UK Limited 19,102.30 788,048.68 page 83 3731 26-Apr-13 Chevron Overseas Services Corporation 10,266.03 423,516.09 page 84 3732 26-Apr-13 Chevron Oronite Pte. Ltd. 4,564.54 188,306.11 page 85 3733 26-Apr-13 Chevron Shipping Company LLC 50.18 2,070.13 page 86 3736 29-Apr-13 Chevron Bangladesh Blk Thirteen/Fourteen 10,054.78 414,459.19 page 89 3738 30-Apr-13 Chevron Lubricants Lanka PLC 4,989.51 205,668.18 page 91 3742 24-May-13 Chevron Corporation 326,616.94 13,479,857.20 page 95 3745 24-May-13 Chevron New Zealand 203,549.45 8,400,720.18 page 97 3746 28-May-13 Chevron USA, Inc. (Singapore Branch) 131,616.67 5,474,903.08 page 98 3747 28-May-13 Chevron International Pte. Ltd. 108,576.77 4,516,504.58 page 99 3748 28-May-13 Chevron (Cambodia) Limited 23,466.81 976,156.82 page 100 3749 28-May-13 Chevron Oronite Pte. Ltd. 1,540.00 64,059.90 page 101 3750 30-May-13 Chevron Lubricants Lanka PLC 4,989.50 209,028.07 page 102 3751 24-May-13 Chevron North Sea Limited 111,109.17 4,585,603.38 page 103 3752 24-May-13 Chevron Neftegaz, Inc. 10,440.37 430,898.89 page 104 3755 26-Jun-13 Chevron Lubricants Lanka PLC 4,989.51 218,742.22 page 107 3759 24-Jun-13 Chevron Pakistan Limited 37,892.57 1,656,867.95 page 110 3761 25-Jun-13 Chevron Corporation 336,283.19 14,742,796.58 page 112 3762 25-Jun-13 Chevron New Zealand 203,549.45 8,923,693.56 page 113 3763 25-Jun-13 Chevron (Thailand) Limited 178,392.63 7,820,807.98 page 114 3764 25-Jun-13 Chevron Hong Kong Limited 169,038.53 7,410,720.30 page 115 3765 25-Jun-13 Chevron Singapore Pte. Ltd. 145,388.03 6,373,872.42 page 116 3766 25-Jun-13 Chevron International Pte. Ltd. 144,822.00 6,349,057.43 page 117 3767 25-Jun-13 Chevron USA, Inc. (Singapore Branch) 131,482.06 5,764,228.85 page 118 3768 25-Jun-13 Chevron North Sea Limited 119,266.77 5,228,705.39 page 119 3769 25-Jun-13 Chevron Malaysia Limited 100,004.99 4,384,260.85 page 120 3771 25-Jun-13 Asia Pacific Marine Services (EF) B.V. 12,618.66 553,206.93 page 122 3772 25-Jun-13 Chevron Neftegaz, Inc. 10,440.68 457,723.81 page 123 3774 26-Jun-13 Chevron (Cambodia) Limited 23,466.83 1,028,795.70 page 125 3776 26-Jun-13 Chevron Oronite Pte. Ltd. 3,642.93 159,707.58 page 127 Subtotal 180,310,274.56 THIRD QUARTER OF CY 2013 (Exhibit P-53.3) 5003 23-Jul-13 Chevron (China) Investment Co. Ltd. 164,946.38 7,131,274.54 page 129 5006 25-Jul-13 Chevron Neftegaz, Inc. 10,440.68 451,001.30 page 132 5007 25-Jul-13 Chevron Lubricants Lanka PLC 23,466.81 1,013,685.10 page 133 5009 25-Jul-13 Chevron International Pte. Ltd. 135,422.41 5,849,780.13 page 135 5010 25-Jul-13 Chevron New Zealand 203,549.42 8,792,631.53 page 136 5011 25-Jul-13 Chevron Corporation 342,921.51 14,813,024.19 page 137 5014 26-Jul-13 Chevron North Sea Limited 108,612.46 4,691,682.94 page 140 5015 26-Jul-13 Chevron USA, Inc. (Singapore Branch) 131,989.30 5,701,481.64 page 141 5016 30-Jul-13 Chevron South Africa (Pty) Limited 105,252.21 4,552,431.23 page 142 5017 31-Jul-13 Chevron Lubricants Lanka PLC 4,989.50 215,995.67 page 143 5020 26-Jul-13 Chevron Oronite Pte. Ltd. 5,541.23 239,361.99 page 144 5023 23-Aug-13 Chevron Corporation 352,497.52 15,494,396.48 page 147 5025 23-Aug-13 Chevron New Zealand 203,549.47 8,947,229.45 page 148 5026 23-Aug-13 Chevron (Thailand) Limited 178,392.65 7,841,435.16 page 149 5027 23-Aug-13 Chevron Hong Kong Limited 169,038.51 7,430,264.18 page 150 5028 23-Aug-13 Chevron USA, Inc. (Singapore Branch) 133,394.31 5,863,486.15 page 151 5029 23-Aug-13 Chevron North Sea Limited 106,271.83 4,671,289.23 page 152 5030 28-Aug-13 Chevron (Cambodia) Limited 23,466.81 1,037,436.34 page 153 5031 28-Aug-13 Chevron Lubricants Lanka PLC 4,989.51 220,579.58 page 154 5034 27-Aug-13 Chevron Neftegaz, Inc. 10,440.68 461,364.56 page 157 5035 27-Aug-13 Chevron Oronite Pte. Ltd. 2,127.32 94,004.42 page 158 5041 25-Sep-13 Chevron Corporation 286,730.03 12,401,817.91 page 164 5043 25-Sep-13 Chevron Singapore Pte. Ltd. 239,633.20 10,364,757.79 page 166 5044 25-Sep-13 Chevron New Zealand 202,779.78 8,770,751.73 page 167 5046 25-Sep-13 Chevron Malaysia Limited 155,942.33 6,744,910.47 page 169 5047 25-Sep-13 Chevron USA, Inc. (Singapore Branch) 135,230.70 5,849,078.72 page 170 5049 25-Sep-13 Chevron Neftegaz, Inc. 10,440.68 451,586.51 page 172 5051 25-Sep-13 Chevron International Pte. Ltd. 163,217.05 7,059,560.99 page 173 5052 25-Sep-13 Chevron (China) Investment Co. Ltd. 93,950.26 4,063,592.56 page 174 5053 26-Sep-13 Chevron North Sea Limited 106,271.83 4,612,492.62 page 175 5054 26-Sep-13 Chevron Iraq (Sarta) Limited-Branch 105,636.37 4,584,911.89 page 176 5056 30-Sep-13 Chevron Lubricants Lanka PLC 4,989.50 216,089.22 page 178 5057 26-Sep-13 Chevron Oronite Pte. Ltd. 16,609.87 720,914.50 page 179 Subtotal 171,354,300.72 FOURTH QUARTER OF CY 2013 (Exhibit P-53.4) 5058 18-Oct-13 Chevron International Limited 53,305.32 2,300,618.04 page 180 5060 22-Oct-13 Chevron (China) Investment Co. Ltd. 26,842.93 1,155,528.63 page 182 5063 25-Oct-13 PT Chevron Oil Products Indonesia 113.99 4,913.36 page 185 5064 25-Oct-13 Chevron Oronite Company LLC 2,915.90 125,685.34 page 186 5066 25-Oct-13 Chevron Thailand Exploration and Production Ltd. 6,147.96 264,998.28 page 187 5067 25-Oct-13 Chevron Neftegaz, Inc. 10,440.68 450,029.31 page 188 5069 25-Oct-13 Chevron Marine Products LLC-Int'l 21,973.80 947,146.55 page 190 5070 25-Oct-13 Chevron Asia Pacific Holdings Branch 26,592.31 1,146,220.26 page 191 5074 25-Oct-13 Chevron (Cambodia) Limited 46,933.62 2,023,000.86 page 195 5075 25-Oct-13 Chevron Malaysia Limited 51,819.42 2,233,595.69 page 196 5078 25-Oct-13 Chevron North Sea Limited 106,271.83 4,580,682.33 page 199 5080 25-Oct-13 Chevron USA, Inc. (Singapore Branch) 144,225.12 6,216,600.00 page 201 5081 25-Oct-13 Chevron Hong Kong Limited 169,038.52 7,286,143.10 page 202 5083 25-Oct-13 Chevron (Thailand) Limited 179,735.49 7,747,219.40 page 204 5084 25-Oct-13 Chevron New Zealand 203,912.18 8,789,318.10 page 205 5087 25-Oct-13 Chevron Corporation 344,324.12 14,841,556.90 page 207 5090 29-Oct-13 Chevron Oronite Pte. Ltd. 2,266.91 97,627.48 page 210 5091 29-Oct-13 Chevron Bangladesh Blk Thirteen/Fourteen 3,567.83 153,653.32 page 211 5093 29-Oct-13 Chevron Iraq (Sarta) Limited-Branch 9,090.91 391,512.06 page 213 5095 29-Oct-13 Chevron Liberia Limited 92,995.40 4,004,969.85 page 215 5096 29-Oct-13 Chevron South Africa (Pty) Limited 97,534.08 4,200,434.11 page 216 5099 30-Oct-13 Chevron Lubricants Lanka PLC 4,989.51 214,510.33 page 218 5100 25-Oct-13 Chevron International Pte. Ltd. 195,804.15 8,439,834.04 page 219 5100 29-Oct-13 Chevron Products UK Limited 101,024.79 4,350,766.15 page 219 5101 25-Oct-13 Chevron Singapore Pte. Ltd. 107,234.32 4,622,168.97 page 220 5108 25-Nov-13 Chevron New Zealand 208,825.70 9,138,980.31 page 226 5109 25-Nov-13 Chevron USA, Inc. (Singapore Branch) 153,521.46 6,718,663.46 page 227 5110 25-Nov-13 Chevron (Thailand) Limited 107,498.90 4,704,547.05 page 228 5111 25-Nov-13 Chevron Singapore Pte. Ltd. 106,334.07 4,653,569.80 page 229 5112 25-Nov-13 Chevron North Sea Limited 106,271.83 4,650,845.95 page 230 5113 25-Nov-13 Asia Pacific Marine Services (EF) B.V. 11,893.36 520,497.16 page 231 5114 25-Nov-13 Chevron Neftegaz, Inc. 10,440.68 456,922.54 page 232 5115 29-Nov-13 Chevron Pakistan Limited 65,902.66 2,884,142.67 page 233 5116 29-Nov-13 Chevron (China) Investment Co. Ltd. 13,406.52 586,718.60 page 234 5117 27-Nov-13 Chevron (Cambodia) Limited 26,892.21 1,176,901.97 page 235 5118 27-Nov-13 Chevron Lubricants Lanka PLC 4,989.50 218,358.86 page 236 5119 26-Nov-13 Chevron Oronite Pte. Ltd. 3,484.03 152,473.96 page 237 5120 25-Nov-13 Chevron International Pte. Ltd. 177,108.49 7,750,918.60 page 238 5123 20-Dec-13 Chevron International Pte. Ltd. 784,948.61 34,809,251.00 page 239 5125 20-Dec-13 Chevron New Zealand 155,051.95 6,875,917.96 page 240 5126 20-Dec-13 Chevron Hong Kong Limited 125,222.71 5,553,113.08 page 241 5128 26-Dec-13 Chevron Oronite Pte. Ltd. 1,680.32 74,515.30 page 243 5129 23-Dec-13 Chevron Corporation 680,047.03 30,157,296.23 page 244 5133 23-Dec-13 Chevron Iraq (Sarta) Limited-Branch 60,621.44 2,688,312.20 page 248 5135 23-Dec-13 Chevron (China) Investment Co. Ltd. 6,871.02 304,701.55 page 250 Subtotal 210,665,380.71 VALID ZERO-RATED SALES 720,308,940.84 The rest of petitioner's declared zero-rated sales in the amount of P2,374,506,151.14 detailed below, shall be denied VAT zero-rating for petitioner's failure to prove that the entities to whom it rendered services are non-resident foreign corporations doing business outside the Philippines: O.R. No. O.R. Date Client Amount in USD Amount in PHP Exhibit P-31 FIRST QUARTER OF CY 2013 (Exhibit P-53.1) 3646 17-Jan-13 Chevron Products Company 436,867.61 17,708,456.02 page 1 3647 23-Jan-13 Chevron Romania Exploration and Production SRL 15,573.99 633,089.02 page 2 3649 25-Jan-13 Chevron Services Company 1,651,117.48 67,009,637.99 page 4 3650 25-Jan-13 Chevron Information Technology Company 1,601,218.60 64,984,521.10 page 5 3659 23-Jan-13 CCEC-Shekou Shared Cost Center 1,323.32 53,793.50 page 14 3660 25-Jan-13 Chevron Global Energy, Inc.-Global Downstream Cost Allocation Branch 99,819.08 4,051,099.03 page 15 3662 20-Feb-13 Chevron Products Company 581,313.51 23,621,028.44 page 17 3664 22-Feb-13 Chevron Information Technology Company 3,432,503.70 139,362,716.20 page 19 3665 22-Feb-13 Chevron Services Company 1,552,556.32 63,035,173.37 page 20 3668 22-Feb-13 Chevron Australia Pte. Ltd.-Other 323,976.61 13,185,861.21 page 23 3674 22-Feb-13 Chevron Energy Technology Company 54,928.41 2,230,142.51 page 29 3677 22-Feb-13 Chevron Australia Pte. Ltd.-Gorgon 244,949.29 9,945,159.97 page 32 3678 25-Feb-13 CPUK-Trading and Marine Lubricants Branch 116,491.17 4,746,991.44 page 33 3681 18-Mar-13 Chevron Products Company 577,860.40 23,404,633.45 page 36 3683 25-Mar-13 Chevron Information Technology Company 635,219.17 25,906,165.17 page 38 3687 22-Feb-13 Chevron Australia Pte. Ltd.-Other 2,189.12 89,097.27 page 42 3691 26-Mar-13 Chevron Services Company 1,559,539.05 63,680,647.20 page 46 Subtotal 523,648,212.89 SECOND QUARTER OF CY 2013 (Exhibit P-53.2) 3697 16-Apr-13 Chevron Products Company 589,659.71 24,356,039.24 page 52 3700 25-Apr-13 Chevron Information Technology Company 2,535,492.48 104,859,076.92 page 55 3701 25-Apr-13 Chevron Services Company 1,680,556.47 69,501,921.84 page 56 3710 25-Apr-13 Chevron Global Energy, Inc.-Global Downstream Cost Allocation Branch 82,157.55 3,397,748.14 page 64 3711 25-Apr-13 Chevron Upstream and Gas 81,737.96 3,380,395.37 page 65 3712 25-Apr-13 Chevron Energy Technology Company 75,899.40 3,138,933.00 page 66 3713 25-Apr-13 Chevron Canada Limited-Downstream 39,680.96 1,641,065.34 page 67 3716 25-Apr-13 Chevron NA Exploration Production Co. 21,183.86 876,090.16 page 70 3720 25-Apr-13 BUT Chevron Indonesia Company 3,418.77 141,388.34 page 74 3722 25-Apr-13 Chevron Gas and Mistream 468.62 19,380.48 page 75 3725 26-Apr-13 Chevron Australia Pty Ltd.-Other 281,267.16 11,603,430.69 page 78 3726 26-Apr-13 Chevron Australia Pty Ltd.-Other 185,607.78 7,657,086.63 page 79 3728 26-Apr-13 CPUK-Trading and Marine Lubricants Branch 162,360.52 6,698,041.25 page 81 3730 26-Apr-13 CPUK Limited-BRES 85.07 3,509.49 page 83 3734 29-Apr-13 Refineria Panama S. de R.L. 37,210.10 1,533,804.62 page 87 3735 29-Apr-13 Campania Chevron de Panama, SA 25,758.42 1,061,765.05 page 88 3737 30-Apr-13 Chevron Al Khalij, a branch of Chevron Asia Pacific Holdings Limited 75,059.48 3,093,960.43 page 90 3739 16-May-13 Chevron Products Company 589,707.95 24,237,893.55 page 92 3740 24-May-13 Chevron Information Technology Company 2,394,783.68 98,835,479.98 page 93 3741 24-May-13 Chevron Services Company 1,674,478.82 69,107,669.01 page 94 3743 24-May-13 Chevron Australia Pty Ltd.-Other 292,301.81 12,063,632.27 page 96 3753 24-Jun-13 Chevron Australia Pty Ltd.-Gorgon 189,487.17 8,285,403.15 page 105 3754 25-Jun-13 Chevron Information Technology Company 1,390,557.14 60,962,610.26 page 106 3757 18-Jun-13 Chevron Products Company 573,826.92 24,564,508.56 page 108 3758 24-Jun-13 Chevron Australia Pty Ltd.-Other 233,759.98 10,221,249.67 page 109 3760 25-Jun-13 Chevron Services Company 1,611,702.17 70,657,701.45 page 111 3770 25-Jun-13 Chevron Energy Technology Company 93,494.93 4,098,857.08 page 121 3773 26-Jun-13 CPUK-Trading and Marine Lubricants Branch 162,360.52 7,117,953.53 page 124 3775 26-Jun-13 Refineria Texaco de Honduras S.A. 7,361.89 322,748.36 page 126 Subtotal 633,439,343.86 THIRD QUARTER OF CY 2013 (Exhibit P-53.3) 5002 17-Jul-13 Chevron Products Company 585,489.46 25,433,947.00 page 128 5004 24-Jul-13 Chevron Australia Pty Ltd.-Gorgon 140,190.65 6,055,751.62 page 130 5005 24-Jul-13 Chevron Australia Pty Ltd.-Other 234,540.20 10,131,326.13 page 131 5008 25-Jul-13 Chevron Global Energy, Inc.-Global Downstream Cost Allocation Branch 79,666.18 3,441,303.67 page 134 5012 25-Jul-13 Chevron Services Company 1,631,674.38 70,482,694.60 page 138 5013 25-Jul-13 Chevron Information Technology Company 1,980,021.19 85,530,073.00 page 139 5021 23-Aug-13 Chevron Information Technology Company 2,880,587.61 126,619,235.60 page 145 5022 23-Aug-13 Chevron Services Company 1,661,517.17 73,033,721.76 page 146 5032 27-Aug-13 Chevron Australia Pty Ltd.-Other 290,946.70 12,856,681.40 page 155 5033 27-Aug-13 CPUK-Trading and Marine Lubricants Branch 162,360.52 7,174,570.04 page 156 5036 13-Aug-1 Chevron Polska Energy Resources Sp. z.o.o. 15,086.96 655,668.41 page 159 5037 16-Aug-13 Chevron Products Company 600,232.61 26,256,894.58 page 160 5038 18-Sep-13 Chevron Products Company 597,635.28 25,995,444.98 page 161 5039 25-Sep-13 Chevron Services Company 1,607,341.93 69,521,709.78 page 162 5040 25-Sep-13 Chevron Information Technology Company 1,324,814.03 57,301,644.90 page 163 5042 25-Sep-13 Chevron Australia Pty Ltd.-Other 242,532.45 10,490,157.87 page 165 5045 25-Sep-13 Chevron Energy Technology Company 166,140.21 7,185,995.24 page 168 5048 25-Sep-13 Chevron Upstream 105,473.88 4,562,019.03 page 171 5055 126-Sep-13 CCEC-Shekou Shared Cost Center 313.03 13,586.37 page 177 Subtotal 622,742,425.98 FOURTH QUARTER OF CY 2013 (Exhibit P-53.4) 5059 16-Oct-13 Chevron Products Company 586,777.20 25,303,027.17 page 181 5061 25-Oct-13 Chevron China Energy Company-Expl &Prod Services 9.53 410.78 page 183 5062 25-Oct-13 Chevron Gas and Mistream 97.31 4,194.40 page 184 5068 25-Oct-13 Chevron Upstream and Gas 15,546.79 670,120.26 page 189 5071 25-Oct-13 Chevron Global Energy, Inc.-Global Downstream Cost Allocation Branch 36,027.09 1,552,891.81 page 192 5072 25-Oct-13 Chevron Canada Limited-Downstream 44,654.13 1,924,746.98 page 193 5073 25-Oct-13 Chevron Energy Technology Company 45,153.39 1,946,266.81 page 194 5076 25-Oct-13 Chevron NA Exploration Production Co. 54,913.56 2,366,959.48 page 197 5077 25-Oct-13 Chevron Al Khalij, a branch of Chevron Asia Pacific Holdings Limited 78,473.31 3,382,470.26 page 198 5079 25-Oct-13 Chevron Business and Real Estate Services (a Chevron USA, Inc. Division) 116,858.31 5,036,996.12 page 200 5082 25-Oct-13 Chevron Global Downstream 175,891.35 7,581,523.71 page 203 5085 25-Oct-13 Chevron Australia Pty Ltd.-Other 246,852.00 10,640,172.41 page 206 5088 25-Oct-13 Chevron Services Company 1,626,327.57 70,100,326.29 page 208 5089 25-Oct-13 Chevron Information Technology Company 3,573,908.44 154,047,777.59 page 209 5092 29-Oct-13 Refineria Texaco de Honduras S.A. 5,889.48 253,638.24 page 212 5094 29-Oct-13 Refineria Panama S. de R.L. 25,761.29 1,109,444.01 page 214 5097 29-Oct-13 CPUK-Trading and Marine Lubricants Branch 163,171.81 7,027,209.73 page 217 5102 25-Oct-13 Chevron Australia Pty Ltd.-Gorgon 63,981.38 2,757,818.10 page 221 5103 25-Oct-13 Chevron Australia Pty Ltd.-Gorgon 266,678.30 11,494,754.31 page 222 5104 18-Nov-13 Chevron Products Company 647,109.52 28,184,212.54 page 223 5105 25-Nov-13 Chevron Information Technology Company 2,990,233.01 130,863,589.06 page 224 5106 25-Nov-13 Chevron Services Company 1,604,755.97 70,230,020.57 page 225 5127 17-Dec-13 Chevron Products Company 593,014.34 26,297,753.44 page 242 5130 23-Dec-13 Chevron Services Company 408,275.18 18,105,329.49 page 245 5131 23-Dec-13 CPUK-Trading and Marine Lubricants Branch 186,785.22 8,283,158.31 page 246 5132 23-Dec-13 Chevron Energy Technology Company 115,717.80 5,131,609.76 page 247 5134 23-Dec-13 Chevron Polska Energy Resources Sp. z.o.o. 8,563.29 379,746.78 page 249 Subtotal 594,676,168.41 TOTAL INVALID ZERO-RATED SALES 2,374,506,151.14 Petitioner incurred/paid input taxes attributable to zero- rated sales and said input taxes were not applied against any output VA T liability Having resolved that petitioner had valid VAT zero-rated sales for the four quarters of CY 2013 in the amount of P720,308,940.84, the Court will now proceed to determine whether petitioner incurred input taxes in connection therewith and if said input taxes were not applied against any output VAT liability of petitioner. In its amended Quarterly VAT Returns for the four quarters of CY 2013, petitioner reflected a total amount of P105,758,241.10 allowable input VAT arising from its amortization of input VAT on purchases of capital goods exceeding P1 million, domestic purchases of capital goods not exceeding P1 million, domestic purchases and importation of goods other than capital goods, domestic purchases of services and services rendered by non-residents, detailed as follows: 1st Quarter (Exhibit "P-4.2") 2nd Quarter (Exhibit "P-5.2") 3rd Quarter (Exhibit "P-6.2") 4th Quarter (Exhibit "P-7.2") CY 2013 Amounts in Philippine Pesos Input Tax Deferred on Capital Goods exceeding P1Million from Previous Quarter 44,187,976.62 41,434,854.56 38,785,356.55 36,643,819.37 44,187,976.62 Add: Input Tax on Capital Goods exceeding P1Million Purchased this Quarter 597,310.78 620,327.97 1,171,221.01 - 2,388,859.76 Total Unamortized Input Tax on Capital Goods exceeding P1Million 44,785,287.40 42,055,182.53 39,956,577.56 36,643,819.37 46,576,836.38 Less: Input Tax on Purchases of Capital Goods exceeding P1Million deferred for the succeeding period 41,434,854.58 38,785,356.56 36,643,819.37 33,331,281.98 33,331,281.98 Amortization of Input Tax on Capital Goods exceeding P1Million 3,350,432.82 3,269,825.97 3,312,758.19 3,312,537.39 13,245,554.40 Add: Input Tax on: Purchases of Capital Goods not exceeding P1Million - 118,982.14 - - 118,982.14 Domestic Purchases of Goods Other than Capital Goods 345,249.00 637,714.95 4,523,017.33 1,790,908.34 7,296,889.62 Importation of Goods Other than Capital Goods 44,574.00 106,149.00 264,966.00 20,691.00 436,380.00 Domestic Purchase of Services 16,008,379.28 20,078,049.55 17,998,379.35 21,472,837.42 75,557,645.60 Services Rendered by Non-Residents 2,217,629.99 2,079,020.67 2,355,945.47 2,450,193.21 9,102,789.34 Total Allowable Input Tax 21,966,265.09 26,289,742.28 28,455,066.34 29,047,167.36 105,758,241.10 Out of the P105,758,241.10 input VAT, petitioner is claiming refund of the amount of P101,103,433.99 allegedly representing input VAT attributable to its zero-rated sales for the CY 2013. In support of its input VAT claim, petitioner presented various summary lists 69 and schedules, 70 and the corresponding invoices, official receipts, import documents, BIR Forms No. 1600 and other documents, 71 which were all examined by the Court-commissioned Independent CPA. A review of the ICPA report together with the documents supporting the P92,512,686.70 72 input VAT claim on purchases of capital goods not exceeding P1Million, domestic purchases and importation of goods other than capital goods, domestic purchases of services and services rendered by non-residents shows that input taxes amounting to P6,762,383.27 should be disallowed for not being properly substantiated VAT invoices or official receipts as prescribed under Sections 110 (A) and 113 (A) and (B) and 237 and 238 of the NIRC of 1997, as amended, in relation to Sections 4.110-1, 4.110-8 and 4.113-1 of RR No. 16-05, as amended, to wit: Findings 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total DOMESTIC PURCHASES OF GOODS a. Supported by original copies of VAT OR (Annex B-6 of the ICPA Report) - - P9,120.00 - P9,120.00 b. Supported by original copies of sales invoice dated outside CY 2013 (Annex B-7 of the ICPA Report) P50,004.09 - - - 50,004.09 Subtotal P50,004.09 - P9,120.00 - P59,124.09 DOMESTIC PURCHASE OF SERVICES a. Domestic purchase of services supported by original copies of VAT ORs where the amount of Input VAT was not indicated (Annex C-15 of the ICPA Report) P4,582.49 P47,382.89 P1,380.00 P11,612.06 P64,957.44 b. Domestic purchase of services supported by original copies of VAT ORs where the amount of Input VAT was not indicated and where actual payment was not indicated in words (Annex C-16 of the ICPA Report) 3,535.59 - 2,754.42 1,254.08 7,544.09 c. Domestic purchase of services supported by Certified True Copy of VAT OR dated outside Calendar Year 2013 (Annex C-17 of the ICPA Report) 3,209,210.13 - - - 3,209,210.13 d. Domestic purchase of services supported by original copies of VAT ORs where company TIN and address were not indicated and where the amount of Input VAT was not indicated (Annex C-18 of the ICPA Report) - 696.41 - - 696.41 e. Domestic purchase of services supported by original copies of VAT ORs where company TIN and Input VAT were not indicated (Annex C-19 of the ICPA Report) 1,351.07 - 2,175.00 - 3,526.07 f. Domestic purchase of services supported by original copies of VAT ORs with incorrect company TIN (Annex C-20 of the ICPA Report) - - 4,242.87 38.57 4,281.44 g. Domestic purchase of services supported by original copies of Non-VAT ORs (Annex C-21 of the ICPA Report) 9,000.00 - - - 9,000.00 h. Domestic purchase of services supported by original copies of Non-VAT ORs and with incorrect company TIN (Annex C-22 of the ICPA Report) 5,399.64 - - - 5,399.64 i. Domestic purchase of services supported by original copies of VAT ORs stamped with "Not Valid Source of Input VAT" (Annex C-23 of the ICPA Report) 16,887.85 - 12,833.32 44,492.25 74,213.42 j. Domestic purchase of services supported by original copies of VAT ORs stamped with "Not Valid Source of Input VAT" and where the amount of Input VAT was not indicated (Annex C-24 of the ICPA Report) 2,742.88 - - 1,584.00 4,326.88 k. Domestic purchase of services supported by original copies of VAT ORs dated outside the quarter of claim but within the period of claim and with invalid ATP (Annex C-25 of the ICPA Report) - - - 4,800.00 4,800.00 l. Domestic purchase of service supported by original copies of VAT ORs stamped with "Not Valid Source of Input VAT" and where amount per OR differs from amount per Schedule (Annex C-26 of the ICPA Report) - - - 1,128.21 1,128.21 m. Domestic purchase of services supported by original copies of VAT ORs dated outside the Calendar Year 2013 (Annex C-27 of the ICPA Report) 330,165.25 - - - 330,165.25 n. Domestic purchase of services supported by original copies of VAT ORs dated outside Calendar Year 2013 and where actual payment was not indicated in words (Annex C-28 of the ICPA Report) 53,750.41 - - - 53,750.41 o. Domestic purchase of services supported by original copies of VAT ORs dated outside Calendar Year 2013 and where the amount of Input VAT was not indicated (Annex C-29 of the ICPA Report) 210,665.38 - - - 210,665.38 p. Domestic purchase of services supported by original copies of VAT ORs dated outside Calendar Year 2013 and where the amount per OR differs from amount per Schedule (Annex C-30 of the ICPA Report) 268.96 - - - 268.96 q. Domestic purchase of services supported by original copies of VAT ORs dated outside Calendar Year 2013 and stamped with "Not Valid Source of Input VAT" (Annex C-31 of the ICPA Report) - - - 4,572.44 4,572.44 r. Domestic purchase of services supported by original copies of VAT ORs with invalid ATP (Annex C-32 of the ICPA Report) - - 46,187.82 427,029.48 473,217.30 s. Domestic purchase of services supported by original copies of VAT ORs with invalid ATP and where amount per OR differs from amount per Schedule (Annex C-33 of the ICPA Report) - - - 21,492.00 21,492.00 t. Domestic purchase of services supported by original copies of VAT ORs under the name of the employee instead of the company and where Input VAT and TIN were not indicated (Annex C-34 of the ICPA Report) 3,840.00 - - - 3,840.00 u. Domestic purchase of services not supported by original copies of VAT ORs (not part of 2013) (Annex C-35 of the ICPA Report) 21,510.00 - - - 21,510.00 v. Domestic purchase of services without supporting documents (Annex C-36 of the ICPA Report) 579,885.78 75,136.58 130,689.99 853,619.22 1,639,331.57 Subtotal P4,452,795.43 P123,215.88 P200,263.42 P1,371,622.31 P6,147,897.04 IMPORTATION OF GOODS a. Importation of goods supported by Import Entry and Internal Revenue Declarations (IEIRD) dated outside CY 2013 (Annex E-3 of the ICPA Report) P4,752.00 - - - P4,752.00 b. Importation of goods supported by IEIRD but without proof of VAT payment Annex E-1 of the ICPA Report OC Tanner 39,822.00 - - 39,822.00 Dexa Systems - P48,779.00 - - 48,779.00 OC Tanner - - P48,565.00 - 48,565.00 OC Tanner - - 54,147.00 - 54,147.00 Dexa Systems - - 57,344.00 - 57,344.00 Dexa Systems - - 32,771.00 - 32,771.00 OC Tanner - - - P20,691.00 20,691.00 Annex E-2 of the ICPA Report OC Tanner 26,432.00 - 26,432.00 OC Tanner 10,693.00 - 10,693.00 Gilbarco, Inc. 20,245.00 - 20,245.00 OC Tanner - 41,591.00 41,591.00 OC Tanner - 30,548.00 30,548.00 Subtotal P44,574.00 P106,149.00 P264,966.00 P20,691.00 P436,380.00 DOMESTIC PURCHASES OF CAPITAL GOODS a. Supported by original copies of sales invoice dated outside CY 2013 (Annex F-6 of the ICPA Report) - P118,982.14 - - P118,982.14 Subtotal - P118,982.14 - - P118,982.14 TOTAL P4,547,373.52 P348,347.02 P474,349.42 P1,392,313.31 P6,762,383.27 In addition, the Court finds that the following amounts of input VAT claimed by petitioner were higher than the amounts reflected in the official receipts, thus, the difference of P62,544.24 should likewise be disallowed: Supplier OR No. OR Date Input VAT per Schedule Input VAT per Official Receipt Difference Exhibit P-41 Domestic purchase of services supported by original copies of VAT ORs dated outside the quarter of claim but within the period of claim and where amount per OR differs from amount per schedule (Annex C-6 of the ICPA Report) Fourth Quarter of CY 2013 MYND International Ltd. 1148 23-Aug-13 43,686.68 43,486.68 200.00 Folder 14, page 3 MYND International Ltd. 1161 09-Sep-13 90,715.10 65,652.71 25,062.39 Folder 14, page 4 RCBC Realty Corporation 37866 13-Sep-13 407,592.63 404,259.99 3,332.64 Folder 14, page 5 subtotal 541,994.41 513,399.38 28,595.03 Domestic purchase of services supported by original copies of VAT ORs where amount per OR differs from amount per schedule (Annex C-9 of the ICPA Report) First Quarter of CY 2013 Everything Express, Inc. 43286 09-Jan-13 2,880.37 868.55 2,011.82 Folder 17, page 4 Global Business Support Services, Inc. 13697 08-Jan-13 38,534.97 38,138.22 396.75 Folder 17, page 5 Misnet Education, Inc. 11609 25-Jan-13 3,803.57 3,530.57 273.00 Folder 17, page 10 North Park Noodle House, Inc. 48708 23-Jan-13 5,731.39 5,629.05 102.34 Folder 17, page 11 North Park Noodle House, Inc. 48709 23-Jan-13 549.11 539.30 9.81 Folder 17, page 12 Second Quarter of CY 2013 Money Doctors, Inc. 28 17-Apr-13 7,452.00 7,228.44 223.56 Folder 17, page 22 Third Quarter of CY 2013 Benchmark Par Excellence Tours and Transport, Inc. 3003 18-Sep-13 9,363.29 5,363.29 4,000.00 Folder 17, page 26 Catena Security, Inc. 10800 03-Jul-13 9,772.42 9,749.96 22.46 Folder 17, page 27 RCBC Realty Corporation 36217 03-Jul-13 372,189.08 371,237.79 951.29 Folder 17, page 29 Fourth Quarter of CY 2013 Benchmark Par Excellence Tours and Transport, Inc. 3017 23-Oct-13 9,472.45 9,427.78 44.67 Folder 17, page 30 Ilustrado Restaurant 20218 16-Oct-13 574.81 223.39 351.42 Folder 17, page 32 Platon Martinez Flores San 37776 06-Nov-13 375.00 285.00 90.00 Folder 17, page 34 RCBC Realty Corporation 38220 09-Oct-13 5,111.75 5,052.06 59.69 Folder 17, page 35 RCBC Realty Corporation 38740 07-Nov-13 399,532.24 388,635.90 10,896.34 Folder 17, page 36 RCBC Realty Corporation 39250 04-Dec-13 1,494,386.29 1,479,870.23 14,516.06 Folder 17, page 37 subtotal 2,359,728.74 2,325,779.53 33,949.21 Total 2,901,723.15 2,839,178.91 62,544.24 Hence, out of the P92,512,686.70 input VAT claim on purchases of capital goods not exceeding P1Million, domestic purchases and importation of goods other than capital goods, domestic purchases of services and services rendered by non-residents, only the amount of P85,687,759.19 represents petitioner's valid input VAT, computed as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter CY 2013 Amounts in Philippine Pesos Input VAT per VAT Returns Purchase of Capital Goods not exceeding P1Million 118,982.14 118,982.14 Domestic Purchases of Goods other than Capital Goods 345,249.00 637,714.95 4,523,017.33 1,790,908.34 7,296,889.62 Importation of Goods other than Capital Goods 44,574.00 106,149.00 264,966.00 20,691.00 436,380.00 Domestic Purchases of Services 16,008,379.28 20,078,049.55 17,998,379.35 21,472,837.42 75,557,645.60 Services rendered by non-residents 2,217,629.99 2,079,020.67 2,355,945.47 2,450,193.21 9,102,789.34 Total 18,615,832.27 23,019,916.31 25,142,308.15 25,734,629.97 92,512,686.70 Less: Disallowances Not properly substantiated by VAT invoices or receipts 4,547,373.52 348,347.02 474,349.42 1,392,313.31 6,762,383.27 Excess of petitioner's claim over the input VAT shown in the supporting official receipts 2,793.72 223.56 4,973.75 54,553.21 62,544.24 Total Disallowances 4,550,167.24 348,570.58, 479,323.17 1,446,866.52 6,824,927.51 Properly Substantiated Input VAT Claim on Purchases of Capital Goods not exceeding P1M, Domestic Purchases and Importation of Goods Other than Capital Goods, Domestic Purchases of Services and Services Rendered by Non-residents 14,065,665.03 22,671,345.73 24,662,984.98 24,287,763.45 85,687,759.19 The Court will now proceed to determine the substantiation of the P13,245,554.40 amortization of input VAT on capital goods purchases exceeding P1Million which originated from the P44,187,976.62 input tax deferred on capital goods exceeding P1Million from previous quarter and P2,388,859.76 input VAT from purchases during the four quarters of CY 2013, as shown below: 1st Quarter (Exhibit "P-4.2") 2nd Quarter (Exhibit "P-5.2") 3rd Quarter (Exhibit "P-6.2") 4th Quarter (Exhibit "P-7.2") CY 2013 Amounts in Philippine Pesos Input Tax Deferred on Capital Goods exceeding P1Million from Previous Quarter 44,187,976.62 41,434,854.56 38,785,356.55 36,643,819.37 44,187,976.62 Add: Input Tax on Capital Goods exceeding P1Million Purchased this Quarter 597,310.78 620,327.97 1,171,221.01 - 2,388,859.76 Total Unamortized Input Tax on Capital Goods exceeding P1Million 44,785,287.40 42,055,182.53 39,956,577.56 36,643,819.37 46,576,836.38 Less: Input Tax on Purchases of Capital Goods exceeding P1Million deferred for the succeeding period 41,434,854.58 38,785,356.56 36,643,819.37 33,331,281.98 33,331,281.98 Amortization of Input Tax on Capital Goods exceeding P1Million 3,350,432.82 3,269,825.97 3,312,758.19 3,312,537.39 13,245,554.40 The Court noted that petitioner failed to present the VAT invoices/official receipts in support of the P44,187,976.62 input tax deferred on capital goods exceeding P1Million from previous quarter. Hence, any claimed amortization of input tax related to the said amount shall be denied. While petitioner was able to substantiate the amount of P2,388,859.76 input VAT related to its current purchases of capital goods exceeding P1Million, the same is not entirely creditable for the subject period of claim. Pursuant to Section 110 (A) (2) of the NIRC of 1997, as amended, 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 P1Million, 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 credit/refund in the month of acquisition. Applying the provisions of Section 110 (A) (2) to the present case, out of the P2,388,859.76 input VAT on current purchases of capital goods exceeding P1Million, only the amount of P336,765.02 is creditable for the four quarters of CY 2013, computed as follows: Supplier Month Acquired Input VAT Monthly Input Tax Credit 73 Annex F-1 of the ICPA Report Integrated Computer Systems, Inc. April P43,483.93 P724.73 Integrated Computer Systems, Inc. May 304,387.50 5,073.13 Toyota Bicutan Paraaque May 191,250.00 3,187.50 Integrated Computer Systems, Inc. July 38,552.68 642.54 Annex F-2 of the ICPA Report Microdata System and Management, Inc. January 133,250.76 2,220.85 Microdata System and Management, Inc. January 312,685.30 5,211.42 Microdata System and Management, Inc. January 151,374.72 2,522.91 Annex F-3 of the ICPA Report Dimension Data Philippines, Inc. June 454,760.37 7,579.34 Integrated Computer Systems, Inc. June 517,660.71 8,627.68 Integrated Computer Systems, Inc. June 75,214.29 1,253.57 Annex F-4 of the ICPA Report JLGT Marketing May 59,757.86 995.96 Project Solution Group Asia Phils., Inc. July 85,032.96 1,417.22 Annex F-5 of the ICPA Report Project Solution Group Asia Phils., Inc. July 21,448.68 357.48 Total P2,388,859.76 Supplier Allowable Input Tax 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter CY 2013 Annex F-1 of the ICPA Report Integrated Computer Systems, Inc. - P2,174.20 P2,174.20 P2,174.20 P6,522.59 Integrated Computer Systems, Inc. - 10,146.25 15,219.38 15,219.38 40,585.00 Toyota Bicutan Paraaque - 6,375.00 9,562.50 9,562.50 25,500.00 Integrated Computer Systems, Inc. - - 1,927.63 1,927.63 3,855.27 Annex F-2 of the ICPA Report Microdata System and Management, Inc. P6,662.54 6,662.54 6,662.54 6,662.54 26,650.15 Microdata System and Management, Inc. 15,634.27 15,634.27 15,634.27 15,634.27 62,537.06 Microdata System and Management, Inc. 7,568.74 7,568.74 7,568.74 7,568.74 30,274.94 Annex F-3 of the ICPA Report Dimension Data Philippines, Inc. - 7,579.34 22,738.02 22,738.02 53,055.38 Integrated Computer Systems, Inc. - 8,627.68 25,883.04 25,883.04 60,393.75 Integrated Computer Systems, Inc. - 1,253.57 3,760.71 3,760.71 8,775.00 Annex F-4 of the ICPA Report JLGT Marketing - 1,991.93 2,987.89 2,987.89 7,967.71 Project Solution Group Asia Philippines, Inc. - - 4,251.65 4,251.65 8,503.30 Annex F-5 of the ICPA Report Project Solution Group Asia Philippines, Inc. - - 1,072.43 1,072.43 2,144.87 Total P29,865.54 P68,013.50 P119,442.99 P119,442.99 P336,765.02 In sum, petitioner's total allowable input VAT amounted only to P86,024,524.21, as computed below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter CY 2013 Amounts in Philippine Pesos Input VAT on Purchases of Capital Goods not exceeding P1M, Domestic Purchases and Importation of Goods Other than Capital Goods, Domestic Purchases of Services and Services Rendered by Non-residents 14,065,665.03 22,671,345.73 24,662,984.98 24,287,763.45 85,687,759.19 Amortization of Input VAT on Purchases of Capital Goods exceeding P1Million 29,865.54 68,013.50 119,442.99 119,442.99 336,765.02 Total Allowable Input VAT 14,095,530.57 22,739,359.23 24,782,427.97 24,407,206.44 86,024,524.21 Since petitioner did not submit VAT invoices/receipts proving the existence of its reported input VAT carry-over from previous quarter in the amount of P141,688,758.55, 74 its output VAT liability for the four quarters of CY 2013 in the aggregate amount of P17,101,547.87, shall be offset against the total allowable input VAT of P86,024,524.21. Hence, only the remaining input VAT of P68,922,976.34 can be attributed to the entire zero-rated sales declared by petitioner in the amount of P3,094,815,091.98 and only the input VAT of P20,250,968.78 is attributable to the valid zero-rated sales of P720,308,940.84, as computed below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter CY 2013 Amounts in Philippine Pesos Total Allowable Input VAT 14,095,530.57 22,739,359.23 24,782,427.97 24,407,206.44 86,024,524.21 Less: Output VAT 75 3,280,412.69 4,970,955.96 4,504,739.08 4,345,440.14 17,101,547.87 Excess Input VAT 10,815,117.88 17,768,403.27 20,277,688.88 20,061,766.30 68,922,976.34 Valid Zero-Rated Sales 157,978,984.85 180,310,274.56 171,354,300.72 210,665,380.71 720,308,940.84 Total Declared Zero-Rated Sales 681,627,197.74 633,439,343.86 622,742,425.98 594,676,168.41 3,094,815,091.98 % of Valid Zero-Rated Sales to Total Declared Zero-Rated Sales 23.17674315% 28.46527869% 27.51607945% 35.42522669% Excess Input VAT Attributable to Valid Zero-Rated Sales 2,506,592.09 5,057,825.51 5,579,624.98 7,106,926.19 20,250,968.78 Although the claimed input VAT was carried over by petitioner in its succeeding Quarterly VAT Returns, 76 the same remained unutilized until it was deducted as "VAT Refund/TCC Claimed" 77 in its Quarterly VAT Return for the third quarter of CY 2014, thus, preventing the carry-over or application of the claimed input VAT in the next taxable quarters. In fine, petitioner has sufficiently proven its entitlement to a refund or issuance of TCC in the reduced amount of P20,250,968.78, representing petitioner's unutilized excess input VAT attributable to its zero-rated sales for the four quarters of CY 2013. WHEREFORE , the present Petition for Review is PARTIALLY GRANTED . Accordingly, respondent is ORDERED TO REFUND or TO ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner the amount of P20,250,968.78 , representing petitioner's excess and unutilized input VAT attributable to zero-rated transactions for the four quarters of calendar year 2013. SO ORDERED. (SGD.) JUANITO C. CASTAEDA, JR. Associate Justice Caesar A. Casanova and Catherine T. Manahan, JJ. , concur. Footnotes 1. Docket Vol. I, pp. 10-18. 2. Exhibits "P-1" and "P-2". 3. Par. 2, Stipulated Facts, Joint Stipulation of Facts and Issues (JSFI), Docket Vol. V, p. 1808; Exhibit "P-3". 4. Exhibits "P-1" and "P-2". 5. Exhibit "P-4.1". 6. Exhibit "P-4.2". 7. Exhibit "P-5-1". 8. Exhibit "P-5.2". 9. Exhibit "P-6.1". 10. Exhibit "P-6.2". 11. Exhibit "P-7.1". 12. Exhibit "P-7-2". 13. Par. 3, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.1". 14. Par. 4, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.2". 15. Par. 5, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.3". 16. Par. 6, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.4". 17. Exhibit "P-9". 18. Par. 7, Stipulated Facts, JSFI, Docket Vol. V, p. 1808. 19. Exhibit "P-10". 20. Par. 8, Stipulated Facts, JSFI, Docket Vol. V, p. 1808. 21. Docket Vol. I, pp. 10-20. 22. Orders dated May 11, 2015, June 1, 2015, and June 30, 2015, Docket Vol. I, pp. 103, 109, and 115. 23. Docket Vol. I, pp. 116-124. 24. Notice of Pre-Trial Conference, Docket Vol. I, pp. 127-128. 25. Docket Vol. I, pp. 141-144. 26. Docket Vol. I, pp. 155-178. 27. Docket Vol. V, pp. 1807-1822. 28. Docket Vol. V, pp. 1825-1831. 29. Docket Vol. V, pp. 1859-1862. 30. Oath of Commission, Docket Vol. V, p. 1936. 31. Minutes of the Hearing dated October 19, 2015 and March 30, 2016, Docket Vol. V, pp. 1840 and 2108; Exhibits "P-27" and "P-67", Sworn Statement of Ms. Carolyn C. Ardina to Questions Propounded by Atty. Strella Marie G. Sacdalan; and Supplemental Sworn Statement of Ms. Carolyn C. Ardina to Questions Propounded by Atty. Strella Marie G. Sacdalan, Docket Vol. I, pp. 251-265 and Vol. V, pp. 2035-2042. 32. Minutes of the Hearing dated November 11, 2015, Docket Vol. V, p. 1928; Exhibit "P-26", Amended Sworn Statement of Ms. Ma. Nerita C. Ferreol to Questions Propounded by Atty. Strella Marie G. Sacdalan, Docket Vol. V, pp. 1881-1914. 33. Minutes of the Hearing dated November 11, 2015, Docket Vol. V, p. 1928; Exhibit "P-28", Sworn Statement of Ms. Jennifer A. Valdez to Questions Propounded by Atty. Strella Marie G. Sacdalan, Docket Vol. I, pp. 182-187. 34. Minutes of the Hearing dated January 25, 2016 and March 30, 2016, Docket Vol. V, pp. 2027 and 2108; Exhibits "P-56" and "P-68", Sworn Statement of Ms. Czarina R. Miranda to Questions Propounded by Atty. Strella Marie G. Sacdalan; and Supplemental Sworn Statement of Ms. Czarina R. Miranda to Questions Propounded by Atty. Strella Marie G. Sacdalan, Docket Vol. V, pp. 1960-1993 and 2072-2074. 35. Docket Vol. V, pp. 2112-2190. 36. Docket Vol. V, pp. 2197-2198. 37. Docket Vol. V, pp. 2206-2212. 38. Docket Vol. V, pp. 2244-2248. 39. Minutes of the Hearing dated September 19, 2016, Docket Vol. V, p. 2249; Exhibit "R-7", Judicial Affidavit of Dominic Morales, Docket Vol. I, pp. 150-154. 40. Docket Vol. V, pp. 2251-2253. 41. Docket Vol. V, pp. 2265-2266. 42. Docket Vol. V, pp. 2271-2302. 43. Records Verification dated February 1, 2017, Docket Vol. V, p. 2303. 44. Docket Vol. V, p. 2304. 45. Issue, JSFI, Docket Vol. V, p. 1809. 46. Par. 3, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.1". 47. Par. 4, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.2". 48. Par. 5, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.3". 49. Par. 6, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.4". 50. Rohm Apollo Semiconductor Philippines vs. Commissioner of Internal Revenue , G.R. No. 168950, January 14, 2015. 51. Silicon Philippines, Inc. (Formerly Intel Philippines Manufacturing, Inc.) vs. Commissioner of Internal Revenue , G.R. No. 182737, March 2, 2016. 52. Exhibit "P-10". 53. Par. 8, Stipulated Facts, JSFI, Docket Vol. V, p. 1808. 54. Par. 2, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-3." 55. G.R. No. 153205, January 22, 2007. 56. Exhibits "P-1" and "P-2". 57. Exhibit "P-33". 58. Exhibit "P-34". 59. Exhibit "P-31". 60. Exhibits "P-16.1" to "P-16.59". 61. Exhibits "P-17.1" to "P-17.46". 62. Exhibits "P-18.1" to "P-18.8". 63. Exhibits "P-19.1" to "P-19.52". 64. Exhibits "P-20.1" to "P-20.8". 65. Exhibits "P-21.1" to "P-21.29". 66. G.R. No. 201326, February 8, 2017. 67. Exhibits "P-19.1" to "P-19.52". 68. Exhibit CY 2013 Zero-Rated Sales P-4.2 1st Quarter P681,627,197.74 P-5.2 2nd Quarter 813,749,618.42 P-6.2 3rd Quarter 794,096,726.70 P-7.2 4th Quarter 805,341,549.12 Total P3,094,815,091.98 69. Exhibits "P-35.1" to "P-35.4" (Summary List of Purchases) , Exhibits "P-36.1" to "P-36.4" (Summary List of Importations) . 70. Exhibits "P-37.1" to "P-37.4" (Schedule of Domestic Purchase of Goods) , Exhibits "P-38.1" to "P-38.4" (Schedule of Domestic Purchases of Services and Services Rendered to Non-Residents) , Exhibits "P-39-1" to "P-39.4" (Schedule of Capital Goods) , Exhibits "P-40.1" to "P-40.4" (Schedule of Importation of Goods) , and Exhibit "P-45" (Schedule of Input Tax on Purchases from Prior Quarters) . 71. Exhibits "P-41" and "P-42". 72. 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total Purchase of Capital Goods not exceeding P1Million - 118,982.14 - - 118,982.14 Domestic Purchases of Goods other than Capital Goods 345,249.00 637,714.95 4,523,017.33 1,790,908.34 7,296,889.62 Importation of Goods other than Capital Goods 44,574.00 106,149.00 264,966.00 20,691.00 436,380.00 Domestic Purchases of Services 16,008,379.28 20,078,049.55 17,998,379.35 21,472,837.42 75,557,645.60 Services rendered by non-residents 2,217,629.99 2,079,020.67 2,355,945.47 2,450,193.21 9,102,789.34 Total 18,615,832.27 23,019,916.31 25,142,308.15 25,734,629.97 92,512,686.70 =========== =========== =========== =========== =========== 73. Based on a 60-monthly amortization as indicated in Exhibit "P-43". 74. Exhibit "P-4.2", Line 20A. 75. Exhibits "P-4.2", "P-5.2", "P-6.2" and "P-7.2", Line 15B. 76. Exhibits "P-11.2" (1st Qtr. of CY 2014), "P-12.2" (2nd Qtr. of CY 2014), "P-13" (3rd Qtr. of CY 2014). 77. Exhibit "P-13" (3rd Qtr. of CY 2014), Line 23D.