Rema Tip Top Philippines, Inc. v. Commissioner of Internal Revenue

THIRD DIVISION [C.T.A. CASE NO. 9794. January 24, 2022.] REMA TIP TOP PHILIPPINES, INC. , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . DECISION RINGPIS-LIBAN , J p : THE CASE The Petition for Review prays that the Court render judgment ordering respondent to refund petitioner the amount of P1,377,618.64, allegedly representing input value-added tax (VAT) attributable or properly allocated to zero-rated sales made in the 4th quarter of the taxable year 2015. 1 THE PARTIES Petitioner Rema Tip Top Philippines, Inc. is a domestic corporation duly organized and existing under Philippine laws. 2 It is registered with the Bureau of Internal Revenue (BIR) under Taxpayer Identification Number (TIN) 008-042-655-000, with address at Unit 502 Richmonde Plaza, Ortigas, San Miguel Ave., Brgy. San Antonio, Ortigas Center, Pasig. 3 Respondent is the Commissioner of Internal Revenue, who is the officer duly appointed and empowered by law to act on claims for refund or credit, with office address at the 5th Floor, BIR National Office Building, Agham Road, Diliman, Quezon City. 4 ANTECEDENTS (ADMINISTRATIVE LEVEL) On December 27, 2017, petitioner filed its Application for Tax Credits/Refunds (BIR Form No. 1914), with Revenue District Office (RDO) No. 43 in the amount of P1,377,618.64, for the period from October 1, 2015 to December 31, 2015, pursuant to Section 112 (A) of the Tax Code. 5 Subsequently, on March 2, 2018, petitioner received a Notice of Denial for VAT Refund/Credit of even date issued by Revenue District Officer Rufo B. Ranario, 6 informing petitioner that the claim for refund on input tax allowable on local purchases and importation is denied for failure to comply with some of the requirements listed under Annex "A" of Revenue Memorandum Circular (RMC) No. 54-2014: (1) Certified true copy of Audited Financial Statements; (2) Schedule of zero-rated sales with complete details; (3) Certified true copy of import entry and internal revenue declarations duly validated by bank with official receipt (OR); and (4) Certified true copy of Bureau of Customs (BOC) receipts. PROCEEDINGS BEFORE THIS COURT Petitioner filed the present Petition for Review on April 2, 2018. 7 On June 11, 2018, respondent filed his Answer . 8 The Pre-Trial Conference was set and held on September 18, 2018. 9 Petitioner's Pre-Trial Brief and Respondent's Pre-Trial Brief were both filed on September 17, 2018. 10 On October 3, 2018, the parties presented their Joint Stipulation of Facts and Issues . 11 The Pre-Trial Order was subsequently issued on November 5, 2018. 12 Respondent transmitted the BIR Records for this case on November 6, 2018. 13 Petitioner posted a Motion for Correction of Pre-Trial Order on November 12, 2018. 14 Respondent failed to file his comment thereon. 15 In the Resolution dated February 22, 2019, 16 the Court granted the said Motion for Correction and ordered the amendment of the Pre-Trial Order dated November 5, 2018. Thus, the Amended Pre-Trial Order was issued on March 4, 2019. 17 During trial, petitioner presented documentary and testimonial evidence. It offered the testimonies of the following individuals, namely: (1) Ms. Jennilyn U. Gaanan, 18 a Director, Treasurer, and Chief Financial Officer of petitioner; and (2) Ms. Ma. Theresa Romey Dela Roca, 19 the Court-commissioned Independent Certified Public Accountant (ICPA). 20 The ICPA's Report was submitted on February 4, 2019. 21 Petitioner filed its Formal Offer of Documentary Exhibits on April 4, 2019. 22 Respondent, however, failed to file his comment thereon. 23 In the Resolution dated June 26, 2019, 24 the Court admitted petitioner's exhibits, except for: (1) Exhibit "P-2", for failure of the document formally offered and identified, to correspond with the document actually marked; and (2) Exhibits "P-8" and "P-8-1", for failure to present originals for comparison. aScITE Petitioner filed its Motion on July 12, 2019, 25 praying that the original printout of BIR Payment (BIR Form 0605) for Annual Registration Fee for 2015 of petitioner, attached and marked as "Exhibit P-2" be admitted as evidence for the purposes for which it is being offered. Respondent failed to file his comment on the said Motion . 26 In the Resolution dated December 13, 2019, 27 the Court granted petitioner's Motion and accordingly admitted Exhibit "P-2". On October 6, 2020, respondent posted a Manifestation , 28 whereby his counsel waived the right to present witness in this case, and in line therewith, averred that the case be submitted for resolution. Correspondingly, in its Resolution dated October 13, 2020, 29 the Court cancelled the presentation of respondent's evidence, and granted the parties thirty (30) days from notice to file their respective memorandum. Petitioner's Memorandum was posted on December 9, 2020. 30 Respondent, however, failed to file his memorandum. 31 On January 15, 2021, this case was deemed submitted for decision. 32 THE ISSUES RAISED BY THE PARTIES The parties have agreed that the issues to be resolved by this Court are as follows: "2.01. Whether or not the Honorable Court of Tax Appeals has jurisdiction over the case. 2.02. Whether or not Petitioner is entitled to a refund of Input VAT attributable or properly allocated to zero-rated sales made in the fourth quarter of taxable year 2015 in the aggregate amount of One Million Three Hundred Seventy-Seven Thousand Six Hundred Eighteen and 64/100 Pesos (P1,377,618.64) pursuant to Section 112 of National Internal Revenue Code of 1997." 33 Petitioner's arguments: Petitioner argues that it is entitled to a refund of input VAT attributable to zero-rated sales made in the 4th quarter of taxable year 2015, based on the following grounds: (a) the instant petition was filed within the reglementary period under Section 112 (C) of the Tax Code; (b) under Section 106 (A) (2) (a) (5) of the Tax Code, sales by a VAT-registered taxpayer to enterprises registered with the Philippine Economic Zone Authority (PEZA) or the Board of Investments (BOI) are subject to zero-rated VAT; and (c) petitioner has complied with the requirements for the claim for refund under Section 112 (A) of the Tax Code. Additionally, petitioner contends that in any case, the purpose of the submission of the documents is to allow respondent to determine whether it is entitled to a refund; that it is the taxpayer who has the right and the burden of proving any and all documents that would support his claim for tax credit or refund; and that as long as the requisites to be entitled to a tax credit certificate or refund of excess input VAT attributable to zero-rated sales are present, such application should be granted. Respondent's counter-arguments: Respondent counter-argues that there is no valid claim for refund due to the non-submission of complete documents under RMC No. 54-2014, and in the absence of a valid claim for refund, there is nothing for the respondent to act on, and consequently, there is also nothing to appeal before the Court; that the Petition for Review was filed out of time; that assuming arguendo that there is a valid claim for refund, it is imperative for the petitioner to prove its compliance with the requirements for tax credit/refund of unutilized input VAT under the National Internal Revenue Code (NIRC) of 1997, as amended; that tax refunds are in the nature of tax exemptions and are to be construed strictissimi juris against the entity claiming the exemption; and that petitioner failed to sufficiently prove and demonstrate that the subject tax was erroneously or illegally collected. THE COURT'S RULING Requisites under the law for the refund or issuance of tax credit certificate of input VAT Pursuant to the provisions of Section 112 (A) and (C) of the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act (RA) No. 9337, 34 jurisprudence has laid down certain requisites which must be complied with by the taxpayer-applicant to successfully obtain a credit/refund of input VAT. Said requisites are classified into certain categories, to wit: HEITAD As to the timeliness of the filing of the administrative and judicial claims: 1. the claim is filed with the BIR within two years after the close of the taxable quarter when the sales were made; 35 2. that in case of full or partial denial of the refund claim, or the failure on the part of the Commissioner to act on the said claim within a period of 120 days from the date of submission of complete documents in support of the application, the judicial claim must be filed with this Court, within 30 days from receipt of the decision or after the expiration of the said 120-day period; 36 With reference to the taxpayer's registration with the BIR: 3. the taxpayer is a VAT-registered person; 37 In relation to the taxpayer's output VAT: 4. the taxpayer is engaged in zero-rated or effectively zero-rated sales; 38 5. for zero-rated sales under Sections 106(A)(2)(a)(1), (2) and (b); and 108(B)(1) and (2), the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with BSP rules and regulations; 39 As regards the taxpayer's input VAT being refunded: 6. the input taxes are not transitional input taxes; 40 7. the input taxes are due or paid; 41 8. the input taxes claimed are attributable to zero-rated or effectively zero-rated sales. However, where there are both zero-rated or effectively zero-rated sales and taxable or exempt sales, and the input taxes cannot be directly and entirely attributable to any of these sales, the input taxes shall be proportionately allocated on the basis of sales volume; 42 and 9. the input taxes have not been applied against output taxes during and in the succeeding quarters. 43 Relative thereto, it must be emphasized that in cases filed before this Court, which are litigated de novo , party-litigants must prove every minute aspect of their case. 44 Thus, it behooves petitioner to show compliance with each of the foregoing requisites. As a corollary, the absence of any of the said requisites is a valid ground to deny the refund claim. Petitioner's administrative and judicial claims were timely filed. The first requisite pertains to the filing of a claim for tax refund or tax credit of input VAT before the BIR, within two (2) years from the close of the taxable quarter when the zero-rated or effectively zero-rated sales were made. Thus, petitioner's last day for filing of its administrative claim for the 4th quarter of 2015 fell on December 31, 2017 . Records show that petitioner filed its Application for Tax Credits/Refunds (BIR Form No. 1914) on December 27, 2017 . 45 Hence, petitioner complied with the said first requisite. The second requisite is to the effect that in case of full or partial denial of the refund claim rendered within a period of one hundred twenty (120) days from the date of submission of the official receipts or invoices and other documents in support of the application, the judicial claim shall be filed with this Court within thirty (30) days from receipt of the decision. Notably, respondent is deemed to have acted on petitioner's administrative claim within the said one hundred twenty (120)-day period from December 27, 2017 (which should have ended on April 27, 2018), when the BIR, Revenue District Officer Rufo B. Ranario, issued Notice of Denial for VAT Refund/Credit dated March 2, 2018 . Considering that petitioner received the said Notice on the date it was issued, 46 the former had until May 27, 2018 , within which to appeal the same. The present Petition for Review was filed on April 2, 2018 . 47 Therefore, the Court has jurisdiction over the present case. Petitioner is a VAT-registered person. As for its compliance with the third requisite , petitioner has fulfilled the same by presenting its BIR Certificate of Registration No. OCN 3RC0000758904 with TIN 008-042-655-000, indicating that it is liable to VAT, among other taxes. 48 Petitioner had zero-rated sales or effectively zero-rated sales during the 4th quarter of 2015. The fourth and fifth requisites require that the taxpayer is engaged in zero-rated or effectively zero-rated sales and for zero-rated sales under Sections 106 (A) (2) (a) (1), (2) and (b), and 108 (B) (1) and (2) of the Tax Code, the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with the Bangko Sentral ng Pilipinas (BSP) rules and regulations. In its amended Quarterly VAT Return 49 for the 4th quarter of 2015, petitioner reported total sales/receipts in the amount of P18,861,067.96, which included zero-rated sales/receipts in the amount of P14,548,005.68, as follows: ATICcS Vatable Sales/Receipts P4,313,062.28 Zero-Rated Sales/Receipts 14,548,005.68 Total Sales/Receipts P18,861,067.96 Petitioner claims that the bulk of its reported zero-rated sales is composed of sales to enterprises registered with PEZA and BOI; and the rest thereof are sales made to non-resident foreign corporations (NRFC) in foreign currency, and in exchange for transportation equipment. 50 In her Report, the Court-commissioned ICPA, Ms. Ma. Theresa R. Dela Roca of Dela Roca & Associates, CPAs, accounted petitioner's total zero-rated sales in the amount of P14,548,005.68, as follows: 51 Zero-Rated Sales Amount Sales to BOI-registered entity P44,855.96 Sales to PEZA-registered entities 13,792,692.39 52 Sales to NRFC 170,091.17 53 Net gain on the exchange of a transportation equipment 54 540,366.16 Total P14,548,005.68 Sales of goods and services to entities registered with PEZA and BOI whose products are 100% exported Petitioner maintains that its sales of goods and services to entities registered with PEZA and BOI during the 4th quarter of 2015 are subject to zero percent (0%) VAT, pursuant to Section 106 (A) (2) (a) (5) of the NIRC of 1997, as amended. Section 106 (A) (2) (a) (5) of the NIRC of 1997, as amended, states: "SEC. 106. Value-Added Tax on Sale of Goods or Properties . (A) Rate and Base of Tax . x x x xxx xxx xxx (2) The following sales by VAT-registered persons shall be subject to zero percent (0%) rate: (a) Export Sales . The term 'export sales' means: xxx xxx xxx (5) Those considered export sales under Executive Order No. 226, otherwise known as the Omnibus Investment Code of 1987, and other special laws ; and xxx xxx xxx (c) Sales to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects such sales to zero rate." (Boldfacing supplied) Relative thereto, the applicable provision of law on petitioner's sale of services to PEZA registered entities is Section 108 (B) (3) of the NIRC of 1997, as amended, which provides as follows: "SEC. 108. Value-Added Tax on Sale of Services and Use or Lease of Properties. (A) Rate and Base of Tax . x x x 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: xxx xxx xxx (3) Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate ; (Boldfacing supplied) Relative thereto, Sections 4.106-5 (a) (5) and 4.108-5 (b) (3) of Revenue Regulations (RR) No. 16-2005, as amended by RR No. 4-2007, also provide: " SEC. 4.106-5. Zero-Rated Sales of Goods or Properties . x x x The following sales by VAT-registered persons shall be subject to zero percent (0%) rate: (a) Export sales . 'Export Sales' shall mean: xxx xxx xxx (5) Transactions considered export sales under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987, and other special laws. 'Considered export sales under Executive Order No. 226' shall mean the Philippine port F.O.B. value determined from invoices, bills of lading, inward letters of credit, landing certificates, and other commercial documents, of export products exported directly by a registered export producer, or the net selling price of export products sold by a registered export producer to another export producer, or to an export trader that subsequently exports the same; Provided , That sales of export products to another producer or to an export trader shall only be deemed export sales when actually exported by the latter, as evidenced by landing certificates or similar commercial documents; Provided , further , That pursuant to EO 226 and other special laws , even without actual exportation, the following shall be considered constructively exported: (1) sales to bonded manufacturing warehouses of export-oriented manufacturers; (2) sales to export processing zones pursuant to Republic Act (RA) Nos. 7916, as amended, 7903, 7922 and other similar export processing zones ; (3) sale to enterprises duly registered and accredited with the Subic Bay Metropolitan Authority pursuant to RA 7227 ; (4) sales to registered export traders operating bonded trading warehouses supplying raw materials in the manufacture of export products under guidelines to be set by the Board in consultation with the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC); (5) sales to diplomatic missions and other agencies and/or instrumentalities granted tax immunities, of locally manufactured, assembled or repacked products whether paid for in foreign currency or not. For purposes of zero-rating, the export sales of registered export traders shall include commission income. The exportation of goods on consignment shall not be deemed export sales until the export products consigned are in fact sold by the consignee: and Provided , finally , that sales of goods, properties or services made by a VAT-registered supplier to a BOI-registered manufacturer/producer whose products are 100% exported are considered export sales. A certification to this effect must be issued by the Board of Investments (BOI) which shall be good for one year unless subsequently re-issued by the BOI . xxx xxx xxx (c) Sales to Persons or Entities Deemed Tax-exempt under Special Law or International Agreement" Sales of goods or property to persons or entities who are tax-exempt under special laws, e.g. , sales to enterprises duly registered and accredited with the Subic Bay Metropolitan Authority (SBMA) pursuant to R.A. No. 7227, sales to enterprises duly registered and accredited with the Philippine Economic Zone Authority (PEZA) or international agreements to which the Philippines is signatory, such as, Asian Development Bank (ADB), International Rice Research Institute (IRRI), etc., shall be effectively subject to VAT at zero-rate ." (Emphases added) " SEC. 4.108-5. Zero-Rated Sale of Services . xxx xxx xxx (b) Transactions Subject to Zero Percent (0%) VAT Rate . The following services performed in the Philippines by VAT-registered persons shall be subject to zero percent (0%) rate: xxx xxx xxx (3) Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate; " (Boldfacing supplied) One of the special laws mentioned in the above provision, which specifically applies to this case, is RA No. 7916, as amended by RA No. 8748, otherwise known as " The Special/Economic Zone Act of 1995 ." Sections 8 and 24 thereof respectively provide as follows: "SECTION 8. ECOZONE to be Operated and Managed as Separate Customs Territory . The ECOZONE shall be managed and operated by the PEZA as separate customs territory . The PEZA is hereby vested with the authority to issue certificates of origin for products manufactured or processed in each ECOZONE in accordance with the prevailing rules of origin , and the pertinent regulations of the Department of Trade and Industry and/or the Department of Finance." (Emphases supplied) "SECTION 24. Exemption from National and Local Taxes . Except for real property taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE . x x x." (Emphases supplied) Since the Ecozone is viewed as a foreign territory by legal fiction, sales of goods and services made by a VAT-registered person in the Philippine customs territory to an entity registered and operating within an Ecozone are considered exports to a foreign country subject to 0% VAT. This was elucidated by the Supreme Court in the case of Commissioner of Internal Revenue vs. Toshiba Information Equipment (Phils.), Inc. , 55 to wit: "This Court agrees, however, that PEZA-registered enterprises, which would necessarily be located within ECOZONES, are VAT-exempt entities , not because of Section 24 of Rep. Act No. 7916, as amended, which imposes the five percent (5%) preferential tax rate on gross income of PEZA-registered enterprises, in lieu of all taxes; but, rather, because of Section 8 of the same statute which establishes the fiction that ECOZONES are foreign territory . x x x An ECOZONE or a Special Economic Zone has been described as x x x [S]elected areas with highly developed or which have the potential to be developed into agro-industrial, industrial, tourist, recreational, commercial, banking, investment and financial centers whose metes and bounds are fixed or delimited by Presidential Proclamations. An ECOZONE may contain any or all of the following: industrial estates (IEs), export processing zones (EPZs), free trade zones and tourist/recreational centers. The national territory of the Philippines outside of the proclaimed borders of the ECOZONE shall be referred to as the Customs Territory. Section 8 of Rep. Act No. 7916, as amended, mandates that the PEZA shall manage and operate the ECOZONES as a separate customs territory; thus, creating the fiction that the ECOZONE is a foreign territory. As a result, sales made by a supplier in the Customs Territory to a purchaser in the ECOZONE shall be treated as an exportation from the Customs Territory. Conversely, sales made by a supplier from the ECOZONE to a purchaser in the Customs Territory shall be considered as an importation into the Customs Territory. Given the preceding discussion, what would be the VAT implication of sales made by a supplier from the Customs Territory to an ECOZONE enterprise? The Philippine VAT system adheres to the Cross Border Doctrine, according to which, no VAT shall be imposed to form part of the cost of goods destined for consumption outside of the territorial border of the taxing authority. Hence, actual export of goods and services from the Philippines to a foreign country must be free of VAT ; while, those destined for use or consumption within the Philippines shall be imposed with ten percent (10%) VAT. 56 (Emphasis added) On the other hand, pursuant to Revenue Memorandum Order (RMO) No. 9-2000, 57 sales of goods, properties or services made by a VAT-registered supplier to a BOI registered entity whose products are 100% exported shall be accorded automatic VAT zero-rating, subject to the following reportorial and documentary requirements, prescribed under Section 3 thereof, viz. : cSEDTC "SECTION 3. Sales of goods, properties or services made by a VAT registered supplier to a BOI-registered exporter shall be accorded automatic zero-rating, i.e., without necessity of applying for and securing approval of the application for zero-rating as provided in Revenue Regulations No. 7-95, subject to the following conditions : (1) The supplier must be VAT-registered; (2) The BOI-registered buyer must likewise be VAT-registered; (3) The buyer must be a BOI-registered manufacturer/producer whose products are 100% exported. For this purpose, a Certification to this effect must be issued by the Board of Investments (BOI) and which certification shall be good for one year unless subsequently re-issued by the BOI; (4) The BOI-registered buyer shall furnish each of its suppliers with a copy of the aforementioned BOI Certification which shall serve as authority for the supplier to avail of the benefits of zero-rating for its sales to said BOI-registered buyers ; and (5) The VAT-registered supplies shall issue for each sale to BOI-registered manufacturer/exporters a duly registered VAT invoice with the words 'zero-rated' stamped thereon in compliance with Sec. 4.108-1(5) of Revenue Regulations No. 7-95. The supplier must likewise indicate in the VAT-invoice the name and BOI-registry number of the buyer." (Emphasis added) Based on the foregoing, sales of goods and services by a VAT-registered taxpayer, such as petitioner, to entities located in the ECOZONEs, as well as to BOI-registered entities whose products are 100% exported, are considered "export sales" subject to VAT zero-rating pursuant to Sections 106 (A) (2) (a) (5) and 108 (B) (3) of the NIRC of 1997, as amended, and as implemented by Sections 4.106-5 (a) (5) and 4.108-5 of RR No. 16-2005, as amended. A. Sales to BOI-registered entity. Petitioner avers that its sales to FCF Minerals Corp., an enterprise registered with the BOI and whose products are 100% exported are subject to 0% VAT, pursuant to Section 106 (A) (2) (a) (5) of the NIRC of 1997, as amended, in relation with Section 4.106-5 of RR No. 16-2005 and Section 3 of RMO No. 9-2000. As extracted from petitioner's Schedule of Sales , 58 the zero-rated sales in the amount of P44,855.96, as detailed below, pertains to its sales of goods to FCF Minerals Corp.: Customer Name Sales Invoice (SI) Amount Exhibit No. Date FCF Minerals Corp. 1022 November 2, 2015 P38,308.00 "P-953" FCF Minerals Corp. 1040 December 1, 2015 6,547.96 "P-964" Total P44,855.96 However, as ascertained by the ICPA, the petitioner was unable to secure an original copy or a certified true copy but obtained only a photocopy of the BOI Certification 59 for FCF Minerals Corp. as support for zero-rating. 60 Examination of petitioner's formally offered exhibits disclosed that the same was among those denied 61 admission by the Court through Resolution 62 dated June 26, 2019. Moreover, further perusal of the denied BOI Certificate shows that the exported sales of FCF Minerals Corp. pertains to its sales for the year 2014 which was prior to the period of claim despite its validity for the year 2015. 63 Hence, the whole amount of P44,855.96 pertaining to its sales without BOI Certification to the effect that FCF Minerals Corp. is a BOI-registered entity whose products are 100% exported for the 4th quarter of 2015, shall be denied VAT zero-rating. SDAaTC B. Sales to PEZA-registered entities. To prove that its clients are duly registered with the PEZA, petitioner submitted various Certifications issued by the said agency. Listed below are the clients of petitioner for the 4th quarter of 2015, with the corresponding proof of VAT zero-rating: Name of Client Proof of VAT zero-rating Exhibit 64 Certification Period Coral Bay Nickel Corporation (CBNC) Certificate No. 2015-1214 "P-9", "P-9-A", and "P-9-B" for the year 2015 Taganito HPAL Nickel Corporation (THPAL) Certificate No. 2015-0414 "P-10" for the year 2015 Accordingly, petitioner's sales to the aforementioned entities for the 4th quarter of 2015 qualify for VAT zero-rating pursuant to Sections 106 (A) (2) (a) (5) and 108 (B) (3) of the NIRC of 1997, as amended, provided that the same are properly supported by VAT zero-rated SIs [for sales of goods] and official receipts (ORs) [for sales of services] in accordance with Section 113 (A) and (B) of the NIRC of 1997, as amended, which provides: "SEC. 113. Invoicing and Accounting Requirements for VAT- registered Persons . (A) Invoicing Requirements . A VAT-registered person shall issue: (1) A VAT invoice for every sale, barter or exchange of goods or properties; and (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: (a) The amount of the tax shall be shown as a separate item in the invoice or receipt; (b) If the sale is exempt from value-added tax, the term 'VAT-exempt sale' shall be written or printed prominently on the invoice or receipt; (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; (d) If the sale involves goods, properties or services some of which are subject to and some of which are VAT zero-rated or VAT-exempt, the invoice or receipt shall clearly indicate the break-down of the sale price between its taxable, exempt and zero-rated components, and the calculation of the value-added tax on each portion of the sale shall be shown on the invoice or receipt: Provided , That the seller may issue separate invoices or receipts for the taxable, exempt, and zero-rated components of the sale. (3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; and (4) In the case of sales in the amount of One thousand pesos (P1,000) or more where the sale or transfer is made to a VAT-registered person, the name, business style, if any, address and Taxpayer Identification Number (TIN) of the purchaser, customer or client." The foregoing provisions are further implemented by Section 4.113-1 (A) and (B) of RR No. 16-2005, as amended, which are all quoted hereunder: "SEC. 4.113-1. Invoicing Requirements . (A) A VAT-registered person shall issue: (1) A VAT invoice for every sale, barter or exchange of goods or properties; and (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: (a) The amount of tax shall be shown as a separate item in the invoice or receipt; (b) If the sale is exempt from VAT, the term "VAT-exempt sale" shall be written or printed prominently on the invoice or receipt; (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; (d) If the sale involves goods, properties or services some of which are subject to and some of which are VAT zero-rated or VAT-exempt, the invoice or receipt shall clearly indicate the break-down of the sale price between its taxable, exempt and zero-rated components, and the calculation of the VAT on each portion of the sale shall be shown on the invoice or receipt. The seller has the option to issue separate invoices or receipts for the taxable, exempt, and zero-rated components of the sale. (3) In the case of sales in the amount of one thousand pesos (P1,000.00) or more where the sale or transfer is made to a VAT-registered person, the name, business style, if any, address and TIN of the purchaser, customer or client, shall be indicated in addition to the information required in (1) and (2) of this Section." In addition to the above requirements, the SIs and ORs must be duly registered with the BIR as prescribed under Section 237, in relation to Section 238 of the NIRC of 1997, as amended, viz. : acEHCD "SEC. 237. Issuance of Receipts or Sales or Commercial Invoices . All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at Twenty-five pesos (P25.00) or more, issue duly registered receipts or sale or commercial invoices, prepared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: x x x xxx xxx xxx SEC. 238. Printing of Receipts or Sales or Commercial Invoices . All persons who are engaged in business shall secure from the Bureau of Internal Revenue an authority to print receipts or sales or commercial invoices before a printer can print the same. No authority to point receipts or sales or commercial invoices shall be granted unless the receipts or invoices to be printed are serially numbered and shall show, among other things, the name, business style, Taxpayer Identification Number (TIN) and business address of the person or entity to use the same, and such other information that may be required by rules and regulations to be promulgated by the Secretary of Finance, upon recommendation of the Commissioner." To prove compliance with the VAT invoicing requirements under the aforementioned laws and regulations, petitioner submitted various SIs in support of its zero-rated sales to PEZA-registered entities, which were duly examined by the ICPA, extracted and summarized from petitioner's Schedule of Sales , 65 as follows: Name of Customer SI Exhibit No. Date Amount Coral Bay Nickel Corporation 0900 October 12, 2015 P400,000.00 "P-934" Coral Bay Nickel Corporation 0907 October 21, 2015 27,890.80 "P-940" Coral Bay Nickel Corporation 1002 October 26, 2015 37,029.30 "P-941" Coral Bay Nickel Corporation 1003 October 26, 2015 24,045.00 "P-942" Coral Bay Nickel Corporation 1013 October 29, 2015 184,368.00 "P-946" Coral Bay Nickel Corporation 1039 December 1, 2015 102,111.10 "P-963" Coral Bay Nickel Corporation 1050 December 18, 2015 44,625.28 "P-973" Coral Bay Nickel Corporation 1052 December 19, 2015 100,128.00 "P-974" Taganito Hpal Nickel Corporation 0825 August 28, 2015 840,000.00 "P-912" Taganito Hpal Nickel Corporation 0848 September 14, 2015 1,538,311.93 "P-913" Taganito Hpal Nickel Corporation 0850 September 14, 2015 1,150,000.00 "P-914" Taganito Hpal Nickel Corporation 0875 October 12, 2015 1,477,292.73 "P-918" Taganito Hpal Nickel Corporation 0884 October 19, 2015 1,352,376.25 "P-924" Taganito Hpal Nickel Corporation 0891 October 15, 2015 814,514,00 "P-929" Taganito Hpal Nickel Corporation 0892 to 0895 October 13, 2015 3,212,318.00 "P-930" to "P-930-C" Taganito Hpal Nickel Corporation 1030 November 23, 2015 587,682.00 "P-956" Taganito Hpal Nickel Corporation BS 0008 November 5, 2015 1,900,000.00 "P-975" TOTAL P13,792,692.39 Upon examination of the submitted sales invoices in support of petitioner's sales of goods and services to PEZA-registered entities, the amount of P11,470,298.91, as detailed below, shall be denied VAT zero-rating due to the following reasons: Name of Customer SI Exhibit No. Date Amount Sales of services not supported by VAT OR; SI dated prior to period of claim Taganito Hpal Nickel Corporation 0825 August 28, 2015 P840,000.00 "P-912" Taganito Hpal Nickel Corporation 0848 September 14, 2015 1,538,311.93 "P-913" Taganito Hpal Nickel Corporation 0850 September 14, 2015 1,150,000.00 "P-914" Sale of goods/services supported by unreadable SIs Taganito Hpal Nickel Corporation 0892-0895 October 13, 2015 3,212,318.00 "P-930" to "P-930 C" Sale of services not supported by VAT OR Taganito Hpal Nickel Corporation 0875 October 12, 2015 1,477,292.73 "P-918" Taganito Hpal Nickel Corporation 0884 October 19, 2015 1,352,376.25 "P-924" Taganito Hpal Nickel Corporation BS 0008 November 5, 2015 1,900,000.00 "P-975" Total Zero-rated Sales Not Properly Substantiated P11,470,298.91 Thus, out of the zero-rated sales to PEZA-registered entities in the total amount of P13,792,692.39, only the amount of P2,322,393.48, 66 qualify for VAT zero-rating pursuant to Section 106 (A) (2) (a) (5) of the 1997 NIRC, in relation to Sec. 4.106-5 (c) of RR No. 16-2005. C. Sales to NFRC. Petitioner states that for sales to NRFC, one of the requirements to qualify as zero-rated sale is that the payments by or collections from these NRFC pertaining to the sale should be made in foreign currency. 67 Pertinent to the determination of whether the sale of services to NRFC qualify for VAT zero-rating, Section 108 (B) (2) of the NIRC of 1997, as amended, states: "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 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);" Based on the foregoing provision, certain essential elements must be present in order for a sale or supply of services to be subject to VAT rate of 0% under Section 108 (B) (2) of the NIRC of 1997, as amended, to wit: SDHTEC 1. The recipient of the services is a foreign corporation, and the said corporation is doing business outside the Philippines, or is a nonresident person not engaged in business who is outside the Philippines when the services were performed; 68 2. The services fall under any of the categories under Section 108 (B) (2), 69 or simply, the services rendered should be other than "processing, manufacturing or repacking goods"; 70 3. The services must be performed in the Philippines 71 by a VAT- registered person; and 4. The payment for such services should be in acceptable foreign currency accounted for in accordance with BSP rules. 72 Relative to the first essential element, to prove that its clients are NRFC for purposes of VAT zero-rating under Section 108 (B) (2) of the NIRC of 1997, as amended, petitioner must establish that: (1) the client was established under the laws of a foreign country; and, (2) it is not engaged in trade or business in the Philippines. To be sure, there must be sufficient proof of both of these requirements to establish that the clients are foreign corporations AND are not doing business in the Philippines. 73 Thus, petitioner must submit for each NRFC client, at the very least, both : (1) the SEC Certificate of Non-Registration of Corporation/Partnership; and (2) Proof of Certificate/Articles of Foreign Incorporation/Association showing the state/province/country where the entity was organized. 74 The SEC Certificate of Non-Registration shows that the foreign client is not engaged in trade or business in the Philippines. On the other hand, the Certificate/Articles of Foreign Incorporation/Association proves that the client was established under the laws of a foreign country. Together, these two (2) documents prove the two (2) conditions necessary to establish the NRFC status of a client. Upon review of the records, it is shown that petitioner failed to present the two (2) required documents to prove the NRFC status of its foreign clients. Thus, petitioner failed to comply with the first essential element. With regard to the second essential element, no evidence was presented by petitioner to prove that the services it rendered fall under any of the categories under Section 108 (B) (2). As such, petitioner failed to comply with the second essential element as it was not able to establish that the services it provided to its clients are not in the same category as " processing, manufacturing or repacking of goods ." Neither did petitioner show proof that the purported services rendered were performed in the Philippines. As such, the third essential element was also not complied with. As regards the fourth essential element, petitioner presented bank statements from HSBC, payment advice and an email 75 purportedly showing the foreign currency remittances of its clients to petitioner. 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 RR No. 16-2005, provides 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 BIR-registered VAT official receipt. Pursuant thereto, the foreign currency payments referred to under Section 108 (B) (2) of the NIRC of 1997, as amended, must be supported by BIR-registered VAT zero-rated official receipts. In the instant case, the alleged sales of services to NRFC were either supported by VAT zero-rated OR, but dated outside the period of claim, or not supported by VAT zero-rated ORs in violation with Section 113 (A) (2) of the NIRC of 1997, as amended, in relation to Section 4.113-1 (A) (2) of RR No. 16-2005. As such, it cannot be verified whether the purported foreign currency remittances actually pertain to the alleged zero-rated sales of services. Thus, petitioner, likewise, failed to comply with the fourth essential element that the services were paid in acceptable foreign currency and accounted for in accordance with the rules and regulations of the BSP. Considering the foregoing, petitioner fell short of establishing that the amount of P170,091.17 declared sales of services to NRFC 76 for the 4th quarter of 2015, as detailed below, qualify for VAT zero-rating under Section 108 (B) (2) of the NIRC of 1997, as amended: Name of Customer Reference Date Amount Exhibit Evonik Methionine Sea Pty Ltd. SI No. 0883 October 13, 2015 P122,008.10 "P-923" Tip Top Japan, Inc. SI No. 1038 December 1, 2015 3,100.35 "P-962" Veolia Water Technologies Deutschland OR No. 1012 January 18, 2016 44,982.72 "P-977" Total P170,091.17 D. Net gain on the exchange of a transportation equipment The ICPA's verification disclosed that the alleged zero-rated sale in the amount of P540,366.16 pertains to the net gain on the exchange of a transportation equipment with Mr. Joseph Antonio Tomas Cruz. 77 As correctly pointed out by the ICPA, the nature of the sale or exchange transaction in the amount of P540,366.16 does not qualify as a zero-rated sale. 78 In sum, out of the total reported zero-rated sales of P14,548,005.68, only the sales of goods to PEZA-registered entities in the amount of P2,322,393.48, as computed below, qualify for VAT zero-rating for the 4th quarter of taxable year 2015: AScHCD Zero-rated Sales Per Return Disallowance Valid Zero-Rated Sales Sales to BOI-registered entity P44,855.96 P44,855.96 P- Sales to PEZA-registered entities 13,792,692.39 11,470,298.91 2,322,393.48 Sales to NRFC 170,091.17 170,091.17 - Net gain on the exchange of a transportation equipment 540,366.16 540,366.16 - Total P14,548,005.68 P12,225,612.20 P2,322,393.48 Thus, for purposes of the fourth requisite, the Court finds that petitioner had VAT zero-rated sales, but only in the said amount of P2,322,393.48 for the 4th quarter of taxable year 2015. As for the fifth requisite, which is to the effect that petitioner must prove that the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with BSP rules and regulations under Sections 106 (A) (2) (a) (1), (2) and (b), and 108 (B) (1) and (2) , all of the NIRC of 1997, as amended, since the legal basis for petitioner's zero-rated sales of P2,322,393.48 is Section 106 (A) (2) (a) (5) of the NIRC of 1997, as amended, the instant case need not comply with the said fifth requisite. In this connection, while petitioner alleges that it has sales of services to certain NRFC, the Court need not determine whether there was compliance with the same fifth requisite, since it was not duly proven, as above shown, that the said sales of services qualify for VAT zero-rating under Section 108 (B) (2) of the NIRC of 1997, as amended. Having found that petitioner had valid zero-rated sales only in the total amount of P2,322,393.48 for the subject period of claim, the Court shall proceed to determine whether petitioner complied with the following remaining requisites: a. sixth requisite : the input taxes are not transitional input taxes; b. seventh requisite : the input taxes are due or paid; c. eighth requisite : the input taxes claimed are attributable to zero-rated or effectively zero-rated sales. However, where there are both zero-rated or effectively zero-rated sales and taxable or exempt sales, and the input taxes cannot be directly and entirely attributed to any of these sales, the input taxes shall be proportionately allocated on the basis of sales volume; and d. ninth requisite : the input taxes have not been applied against output taxes during and in the succeeding quarters. The input VAT being claimed do not appear to be transitional input taxes The claimed input taxes do not appear to be transitional input taxes, as understood under Section 111 (A) of the NIRC of 1997, as amended, to wit: HESIcT "SEC. 111. Transitional/Presumptive Input Tax Credits . (A) Transitional Input Tax Credits . A person who becomes liable to value-added tax or any person who elects to be a VAT-registered person shall, subject to the filing of an inventory according to the rules and regulations prescribed by the Secretary of Finance, upon recommendation of the Commissioner, be allowed input tax on his beginning inventory of goods, materials and supplies equivalent to two percent (2%) of the value of such inventory or the actual value-added tax paid on such goods, materials and supplies, whichever is higher, which shall be creditable against the output tax." Transitional input tax credit operates to benefit newly VAT-registered persons, whether or not they previously paid taxes in the acquisitions of their beginning inventory of goods, materials and supplies. During the period of transition from non-VAT to VAT status, the transitional input tax credit serves to alleviate the impact of the VAT on the taxpayer. 79 Since there is no showing that the claimed input taxes are transitional input taxes, petitioner has complied with the sixth requisite for the grant of an input VAT refund. Not all of the input VAT being claimed are due or paid. The seventh requisite for the successful prosecution of an input VAT refund claim is to the effect that the input VAT being refunded should be due or paid. The fulfillment of this requisite is fully dependent on the compliance with the invoicing and substantiation requirements under the law, as earlier quoted. Petitioner submitted various invoices, ORs and importation documents 80 to support the payment of input taxes. Said documents were examined by the ICPA in order to verify petitioner's compliance with the said substantiation and invoicing requirements. For the 4th quarter of taxable year 2015, petitioner claims a total amount of P1,574,758.55 allowable input VAT arising from its domestic purchases and importation of goods other than capital goods, and domestic purchases of services. Summarized below are petitioner's domestic purchases and importation of goods other than capital goods and domestic purchases of services in the total amount of P13,122,987.83, and the corresponding input taxes, for the 4th quarter of taxable year 2015 in the total amount of P1,574,758.55: Amount of Purchases and Importations Amount of Input VAT Domestic Purchases of Goods Other than Capital Goods (Line 21E/F) P88,373.65 P10,604.84 Importation of Goods Other than Capital Goods (Line 21G/H) 882,569.15 105,908.30 Domestic Purchase of Services (Line 21I/J) 671,889.72 80,626.77 Others (Line 21 N/O) 11,480,155.31 1,377,618.64 81 Total P13,122,987.83 P1,574,758.55 Petitioner claims that out of the total domestic purchases and importation of goods other than capital goods, and domestic purchases of services in the total amount of P13,122,987.83, with corresponding input VAT in the amount of P1,574,758.55, domestic purchases and importations as reflected in "Others (Line 21 N/0)" of the Quarterly VAT Return for the 4th quarter of taxable year 2015 in the total amount of P11,480,155.31, with corresponding input VAT amount of P1,377,618.64 should be granted for refund. Domestic purchases and importation of goods other than capital goods, and domestic purchase of services in the total amount of P11,480,155.31, with corresponding input VAT of P1,377,618.64 as reported in "Others (Line 21 N/0)" in the Quarterly VAT Return for the 4th quarter of taxable year 2015 was determined by petitioner 82 to be composed of purchases directly attributable to zero-rated sales, and purchases allocable to zero-rated sales, as follows: 4th Quarter of 2015 Purchases Input VAT Allocated to Zero-Rated Sales P11,244,780.48 P1,349,373.66 Directly Attributable to Zero-Rated Sales 235,374.83 28,244.98 Total attributable or allocated to Zero-Rated Sales P11,480,155.31 P1,377,618.64 However, upon verification by the Court, it is found that petitioner failed to prove that certain domestic purchases and importation of goods other than capital goods, and domestic purchase of services in the total amount of P235,374.83, with corresponding input VAT amount of P28,244.98, were "directly attributable" to zero-rated sales made during the 4th quarter of taxable year 2015. Thus, the Court is constrained to consider the whole amount of P13,122,987.83 as petitioner's total domestic purchases and importation of goods other than capital goods, and domestic purchase of services, with corresponding input VAT amount of P1,574,758.55, subject to proportional allocation between VATable, VAT-exempt and VAT zero-rated sales pursuant to Section 112 (A) of the NIRC of 1997, as amended, as will be determined momentarily. Of the total amount of P1,574,758.55 input VAT arising from domestic purchases and importation of goods other than capital goods, and domestic purchases of services subject to allocation, the ICPA was only able to vouch input VAT in the amount of P1,556,546.94, as shown below: caITAC Input VAT on vouched purchases P375,410.94 83 Input VAT on importations 1,181,136.00 84 Total vouched input VAT on purchases and importations by the ICPA P1,556,546.94 Less: Reported input VAT on domestic purchases and importations 1,574,758.55 Unaccounted input VAT P18,211.61 Therefore, the unaccounted input VAT amounting to P18,211.61, which were not supported with VAT ORs or invoices, shall be disallowed for failure to substantiate the same. As per ICPA's Schedules of Vouched Purchases 85 and Importations, 86 out of the P1,556,546.94 total vouched purchases and importations, the input VAT in the amount of P33,546.05 shall be disallowed for failure to meet the invoicing requirements under Sections 110 (A), 113 (A) and (B), and 237 of the NIRC of 1997, as amended, in relation to Sections 4.110-1, 4.110-2, 4.110-8 and 4.113-1 of RR No. 16-2005, as amended, summarized by the Court as follows: Exhibit Date 87 Payee Amount of Purchases/Importations Amount of input VAT I. Input VAT on domestic Purchases of Goods and Services 1. Supported by out of period OR, collection receipts, cash slip or service invoice "P-728" 09/23/2015 KIMLY MERCHANDISING P223.25 P26.79 "P-729" 09/26/2015 METRO SURIGAO SHOPPING CENTER 6,014.00 721.68 "P-246" 09/30/2015 KIMLY MERCHANDISING 107.17 12.86 "P-256" 09/28/2015 PHILIPPINE PORTS AUTHORITY 10.67 1.28 "P-103" 07/18/2015 GAC PHILIPPINES, INC. 20,108.67 2,413.04 Subtotal P26,463.76 P3,175.65 2. Supported by undated SIs or parking ticket "P-798" NO DATE SANFORD MARKETING CORPORATION P442.42 P53.09 "P-358" NO DATE KIMHEE REALTY CORPORATION 8.92 1.07 "P-370" NO DATE KIMHEE REALTY CORPORATION 8.92 1.07 "P-871" 88 NO DATE PETRON 66.09 7.93 "P-458" NO DATE CEBU PORT AUTHORITY 8.92 1.07 "P-371" NO DATE GOODHOPE HARDWARE 435.75 52.29 Subtotal P971.02 P116.52 3. Supported by documents other than SI or OR "P-632" 10/26/2015 RN GASOLINE SERVICE STATION P133.92 P16.07 "P-287" 10/08/2015 TETRA SALES AND SERVICES, INC. 17,155.83 2,058.70 "P-320" 10/10/2015 PHIL SPAN ASIA CARRIER CORP. 514.17 61.70 "P-247" 10/06/2015 KIMLY MERCHANDISING 2,227.67 267.32 "P-321" 10/02/2015 METRO SURIGAO SHOPPING CENTER, INC. 7,910.92 949.31 "P-857" to "P-857-C" 10/03/2015 SMART COMMUNICATIONS, INC. 2,043.16 245.18 "P-858" to "P-858-H" 10/03/2015 SMART COMMUNICATIONS, INC. 4,807.00 576.84 "P-869" to "P-869-C" 10/03/2015 SMART COMMUNICATIONS, INC. 4,978.33 597.40 "P-860" to "P-860-B" 10/03/2015 SMART COMMUNICATIONS, INC. 1,071.43 128.57 "P-611" 11/20/2015 D' MOTORISTS PITSTOP, INC. 1,325.58 159.07 "P-619" 11/05/2015 D MICHAEL CO INDUSTRIAL SUPPLY CORP. 1,660.75 199.29 "P-851" 11/18/2015 ZEUGINY ENTERPRISES, INC. 67.83 8.14 "P-510" 11/23/2015 DIDIPIO COMMUNITY DEVELOPMENT CORPORATION 1,607.17 192.86 "P-854" 11/12/2015 PLDT 30,288.58 3,634.63 "P-861" to "P-861-C" 11/02/2015 SMART COMMUNICATIONS, INC. 4,464.29 535.71 "P-862" to "P-862-B" 11/02/2015 SMART COMMUNICATIONS, INC. 714.29 85.71 "P-863" 11/02/2015 SMART COMMUNICATIONS, INC. 1,718.60 206.23 "P-864" 11/02/2015 SMART COMMUNICATIONS, INC. 4,978.33 597.40 "P-865" 11/02/2015 SMART COMMUNICATIONS, INC. 4,945.98 593.52 "P-866" 11/02/2015 SMART COMMUNICATIONS, INC. 4,464.29 535.71 "P-612" 12/01/2015 RN GASOLINE SERVICE STATION 1,228.42 147.41 Subtotal P98,306.54 P11,796.77 4. Supported by SI with stamped "This document is not valid for claiming input taxes." "P-211" 10/06/2015 ISIDRA C. OTARA P223.25 P26.79 "P-537" 11/16/2015 CG & E SHELL SELECT CONVENIENCE STORE 101.75 12.21 Subtotal P325.00 P39.00 5. Supported by photocopy documents only "P-172"/ "P-172-A" 10/23/2015 METRO SURIGAO SHOPPING CENTER, INC. P5,970.33 P716.44 "P-606" 11/16/2015 TOYOTA SHAW, INC. 2,592.83 311.14 "P-669"/ "P-669-A" 11/20/2015 METRO SURIGAO SHOPPING CENTER, INC. 8,660.49 1,039.26 "P-680" 11/05/2015 METRO SURIGAO SHOPPING CENTER, INC. 584.83 70.18 "P-681"/ "P-681-A" 11/05/2015 METRO SURIGAO SHOPPING CENTER, INC. 8,266.67 992.00 "P-693"/ "P-693-A" 11/13/2015 METRO SURIGAO SHOPPING CENTER, INC. 6,051.75 726.21 "P-694" 11/04/2015 THE BELLEVUE MANILA 12,053.58 1,446.43 "P-342"/ "P-342-A" 12/12/2015 METRO SURIGAO SHOPPING CENTER, INC. 6,612.92 793.55 "P-351"/ "P-351-A" 12/18/2015 METRO SURIGAO SHOPPING CENTER, INC. 6,702.17 804.26 "P-350"/ "P-350-A" 12/04/2015 METRO SURIGAO SHOPPING CENTER, INC. 7,150.33 858.04 "P-469" 12/05/2015 TOYOTA MANDAUE 780.00 93.60 "P-474" 12/18/2015 UY & DE GUZMAN LAW OFFICE 40,000.00 4,800.00 Subtotal P105,425.90 P12,651.11 6. VAT-exempt transactions "P-631" 10/23/2015 CCG GRAPHIC DESIGN STUDIO P55.00 P- "P-766" 10/19/2015 TOP SPRING PURIFIED DRINKING WATER & DIST SERVICES 200.00 - "P-792" 10/22/2015 TOP SPRING PURIFIED DRINKING WATER & DIST SERVICES 400.00 - "P-296" 10/21/2015 SAGUISA'S EATERY 120.00 - ''P-120" 10/17/2015 SURIGAO LOCKSMITH 80.00 - "P-212" 10/15/2015 INQUIRER PUBLICATIONS, INC. 488.00 - "P-161" 10/02/2015 KIMPIT DEPO ICE AND WATER STATION 70.00 - "P-165" 10/23/2015 JJK STORE 135.00 - "P-563" 11/04/2015 MS FOOD GALLERY 90.00 - "P-569" 11/04/2015 TOP SPRING PURIFIED DRINKING WATER & DIST SERVICES 400.00 - "P-638" 11/09/2015 TOP SPRING PURIFIED DRINKING WATER & DIST SERVICES 235.00 - "P-587" 11/26/2015 TOP SPRING PURIFIED DRINKING WATER & DIST SERVICES 170.00 - "P-553" 11/16/2015 LUCKY G.M.A. ENTERPRISE 125.00 - "P-507" 11/17/2015 JHESS AND KHATE ELECTRONICS REPAIR SHOP 140.00 - "P-658" 11/21/2015 GOODWILL SUBDIVISION 3 HOMEOWNER'S ASSOCIATION, INC. 100.00 - "P-540" 11/20/2015 KAIL HUGO CAF BOHEMIAN 2,289.00 - "P-521" 11/21/2015 ASIALINK AUTO SUPPLY 450.00 - "P-665" 11/24/2015 TAGANITO BAKEHAUZ & GENERAL MERCHANDISE 275.00 - "P-675" 11/13/2015 MS FOOD GALLERY 205.00 - "P-708" 11/13/2015 GOODWILL SUBDIVISION 3 HOMEOWNER'S ASSOCIATION, INC. 70.00 - "P-401" 12/31/2015 SEBY'S ENTERPRISES 350.00 - "P-448" 12/13/2015 NEW DAYWAN RICE MILL & BASIC FARM PRODUCTS 6,000.00 - "P-334" 12/19/2015 CHROMIUM DRUG 100.00 - "P-338" 12/12/2015 JV BULALO & CALDERITA SPECIALTY 740.00 - "P-344" 12/18/2015 MS FOOD GALLERY 325.00 - "P-347" 12/08/2015 ENDEE GENERAL MERCHANDISE 426.00 - "P-354" 12/04/2015 JV BULALO & CALDERITA SPECIALTY 440.00 - "P-424" 12/01/2015 TOP SPRING PURIFIED DRINKING WATER 335.00 - "P-475" 12/01/2015 FLOR'S MERCHANDISING 2,300.00 - "P-425" 12/03/2015 SAVEMORE 540.00 - "P-365" 12/07/2015 TOP SPRING PURIFIED DRINKING WATER 270.00 - "P-456" 12/09/2015 TOP SPRING PURIFIED DRINKING WATER 300.00 - "P-216" 10/08/2015 SANFORD MARKETING CORP. 540.00 - "P-241" 10/14/2015 SANFORD MARKETING CORP. 2,825.00 - "P-467" 12/03/2015 TNT EXPRESS WORLDWIDE 9,600.00 - "P-439" 12/16/2015 SAVEMORE 540.00 - "P-414'' 12/14/2015 PURIFIED DRINKING 350.00 - "P-405" 12/03/2015 ANJA GOTOHAN 565.00 - "P-105" 09/23/2015 BASTIS GRILL AND SEAFOOD RESTAURANT 689.00 - "P-232" 09/23/2015 SANFORD MARKETING CORP. 180.00 - "P-233" 09/23/2015 SANFORD MARKETING CORP. 644.26 - Subtotal P34,156.26 P- Total-Domestic Purchases of Goods and Services P265,648.48 89 P27,779.05 II. Input VAT on Importations 1. Supported by photocopy of Informal Import Declaration and Entry/BOC Form No. 38-AT "P-877" to "P-877-E" 12/03/2015 HIDROS SPA P48,058.33 P5,767.00 Total-Importations P48,058.33 90 P5,767.00 TOTAL P313,706.81 P33,546.05 In addition to the above disallowances, the input VAT in the amount of P1,290,986.71 shall, likewise, be disallowed for failure to meet the substantiation and invoicing requirements under the aforementioned VAT laws and regulations, to wit: Payee Reference Date 91 Amount of Input VAT Exhibit I. Input VAT on Domestic Purchaser of Goods and Services 1. Supported by VAT Invoice/OR wherein the VAT amount is not separately/properly indicated QUADRO CORNELIO FOOD VENTURES 1367 08-Oct-15 P39.64 "P-215" ESPRUTINGKLE GAS AND SERVICE, INC. 33251 21-Oct-15 202.88 "P-785" PARKWAY 21550 30-Oct-15 159.19 "P-483" XENTRIX SOLUTIONS, INC. 85593 22-Oct-15 1,817.14 "P-308"/ "P-308-A" CEAL OASIS DEVELOPMENT CORP. 50345 06-Oct-15 101.79 "P-193" ONE AND ONLY MARKETING 0048 11-Oct-15 48.64 "P-261" IRON CITY CALTEX 04261 25-Oct-15 187.50 "P-164" IRON CITY CALTEX 04221 23-Oct-15 186.42 "P-166" IRON CITY CALTEX 03807 11-Oct-15 182.14 "P-167" IRON CITY CALTEX 3946 14-Oct-15 189.99 "P-168" ESPRUTINGKLE GAS AND SERVICE, INC. 45271 12-Oct-15 10.71 "P-270" PIPELINE ENTERPRISES 120702 12-Oct-15 18.43 "P-271" ESPRUTINGKLE GAS AND SERVICE, INC. 45436 09-Oct-15 205.31 "P-186" QUADRO CORNELIO FOOD VENTURES 01332 08-Oct-15 17.68 "P-279" QUADRO CORNELIO FOOD VENTURES 01345 02-Oct-15 59.46 "P-220" MANDAUE STAR OIL GASOLINE STATION & CONVENIENCE STORE 43121 04-Nov-15 67.50 "P-568" TYTANS PROPERTIES AND DEVELOPMENT, INC. 3550 04-Nov-15 160.71 "P-570" ESPRUTINGKLE GAS & SERVICE, INC. 48459 05-Nov-15 201.01 "P-623" MCDONALD'S GOLDEN ARCHES DEVELOPMENT CORPORATION 049711 10-Nov-15 57.00 "P-522" PYEZA PARTS DEPOT, INC. 275515 07-Nov-15 6.43 "P-589" ESPRUTINGKLE GAS AND SERVICE, INC. 43305 11-Nov-15 10.29 "P-634" CHOOKS TO GO 1895008 15-Nov-15 37.50 "P-635" JETT CONSTRUCTION AND ELECTRICAL 83379 27-Nov-15 151.23 "P-558" ESPRUTINGKLE GAS & SERVICE, INC. 32648 28-Nov-15 107.14 "P-645" ESPRUTINGKLE GAS & SERVICE, INC. 47146 18-Nov-15 10.71 "P-648" CONSOLIDATED GLOBAL IMPORTS, INC. 0595 26-Nov-15 96.43 "P-654" MSD GODSPEED EXHIBITS CORP. 6026 18-Nov-15 72.00 "P-595" THE HOTEL ANDREA 7780 24-Nov-15 112.50 "P-604" THE HOTEL ANDREA 11915 25-Nov-15 79.50 "P-605" OPTIMUS SHELL SERVICE CORPORATION 22348 10-Nov-15 10.71 "P-579" IRON CITY CALTEX STATION 5230 22-Nov-15 215.16 "P-545" HONEYLEMON FOODS, INC. 9583 22-Nov-15 10.61 "P-544" PARK WAY 21687 20-Nov-15 187.04 "P-666" IRON CITY CALTEX STATION 05512 27-Nov-15 124.29 "P-575" PARK WAY 21763 27-Nov-15 135.65 "P-671" PARK WAY 21583 05-Nov-15 67.78 "P-683" IRON CITY CALTEX STATION 4995 16-Nov-15 119.44 "P-548" PARK WAY 21658 13-Nov-15 150.43 "P-692" IRON CITY CALTEX STATION 06568 21-Dec-15 107.14 "P-325" HONEYLEMON FOODS, INC. 9881 26-Dec-15 10.28 "P-420" ROSE BAKESHOP 00383 24-Dec-15 20.36 "P-329" NEW FAMILY DRUG AND GENERAL MERCHANDISE 628320 12-Dec-15 670.18 "P-450" IRON CITY CALTEX STATION 06254 15-Dec-15 138.21 "P-418" PARKWAY 21869 17-Dec-15 131.79 "P-332" IRON CITY CALTEX STATION 06426 17-Dec-15 123.00 "P-333" IRON CITY CALTEX STATION 00205 19-Dec-15 138.21 "P-335" NICKEL SALES CENTER None 12-Dec-15 19.07 "P-337" IRON CITY CALTEX STATION None 12-Dec-15 136.93 "P-339" PARKWAY 22882 12-Dec-15 533.38 "P-340" PARKWAY 22883 12-Dec-15 198.80 "P-341" PARKWAY 21881 18-Dec-15 53.68 "P-343" NEW FAMILY DRUG AND GENERAL MERCHANDISE 621599 04-Dec-15 599.57 "P-451" IRON CITY CALTEX STATION 05902 05-Dec-15 253.61 "P-345" IRON CITY CALTEX STATION 05901 05-Dec-15 133.29 "P-346" IRON CITY CALTEX STATION 05476 09-Dec-15 133.71 "P-348" IRON CITY CALTEX STATION 05819 03-Dec-15 125.92 "P-352" PARKWAY 22868 04-Dec-15 561.33 "P-452" TYTANS PROPERTIES AND DEVELOPMENT 4160 18-Dec-15 42.86 "P-472" TYTANS PROPERTIES AND DEVELOPMENT 4061 18-Dec-15 176.79 "P-471" TYTANS PROPERTIES AND DEVELOPMENT 4159 18-Dec-15 37.50 "P-473" CEBU'S ORIGINAL LECHON BELLY 33579 19-Dec-15 37.50 "P-356" MJM FILOIL 11230 15-Dec-15 12.32 "P-441" ESPRUTINGKLE GAS AND SERVICE, INC. 47719 02-Dec-15 1,043.36 "P-361" TNT EXPRESS WORLDWIDE 070340 03-Dec-15 310.24 "P-466" MOREDONE VENTURES 004182 05-Dec-15 637.50 "P-444'' ESPRUTINGKLE GAS AND SERVICE, INC. 47957 07-Dec-15 202.50 "P-366" COKALIONG SHIPPING 236850 10-Dec-15 56.25 "P-403" SKY PACIFIC CATV 430161A 14-Dec-15 133.61 "P-455" MANDAUE STAR 44893 16-Dec-15 74.36 "P-440" ESPRUTINGKLE GAS AND SERVICE, INC. 31111 16-Dec-15 129.64 "P-374" AEROPHONE 016726 17-Dec-15 107.14 "P-399" 1370 FOODS, INC. 1417 18-Dec-15 62.68 "P-379" K AND S HOTEL 16274A 18-Dec-15 176.78 "P-429" MCDONALDS CEBU 0011221 11-Dec-15 22.50 "P-411" LAFAYETE, INC. 00114 09-Dec-15 21.86 "P-388" LM GRILL CEBU 3371 11-Dec-15 62.68 "P-389" KNOXPORT, INC. 12216 08-Dec-15 10.61 "P-390" MCDONALDS CEBU 054224 11-Dec-15 32.79 "P-413" JONAS FOOD CORPORATION 16269 10-Dec-15 10.61 "P-428" STA. LUCIA EAST SUPERMARKET 175987 10-Dec-15 166.35 "P-465" MR. KIMBOB CO. 4248 11-Dec-15 10.61 "P-445" MAJOR SHOPPING MANAGEMENT CORP. 025800 16-Dec-15 214.29 "P-438" MCDONALDS CEBU 0120533 03-Dec-15 33.00 "P-416" CITY CHIX, INCORPORATED 11186A 04-Dec-15 30.00 "P-406" Subtotal P13,562.77 2. Supported by VAT Invoice/OR wherein TIN and or address are not indicated, incomplete or unreadable CEBU BELMONT, INC. 00011435 21-Oct-15 P554.19 "P-790" ACE HARDWARE PHILIPPINES, INC. 49288 09-Oct-15 7.45 "P-130" LBC EXPRESS 44027 02-Oct-15 19.82 "P-177" LBC EXPRESS 20486 06-Oct-15 15.54 "P-181" LBC EXPRESS 10917 11-Oct-15 19.82 "P-178" LBC EXPRESS 187034 16-Oct-15 19.29 "P-173" LBC EXPRESS 033579 16-Oct-15 16.07 "P-856" LBC EXPRESS 85973 09-Oct-15 15.54 "P-182" SMART COMMUNICATIONS, INC. 0196408273 03-Oct-15 535.71 "P-859" to "P-859B" LBC EXPRESS 21937 14-Oct-15 12.32 "P-846" LBC EXPRESS, INC. 45097 04-Nov-15 16.07 "P-616" LBC EXPRESS, INC. 153262 03-Nov-15 19.82 "P-622" CONCORDE CAR ACCESSORIES 2006395 17-Nov-15 14.97 "P-513" LBC EXPRESS, INC. 153926 09-Nov-15 19.82 "P-637" SILICON VALLEY COMPUTER GROUP PHILS., INC. 00141 16-Nov-15 373.93 "P-641" LBC EXPRESS, INC. 155143 21-Nov-15 17.14 "P-642" LBC EXPRESS, INC. 155349 23-Nov-15 16.07 "P-643" LBC EXPRESS, INC. 155748 27-Nov-15 16.07 "P-557" LBC EXPRESS, INC. 15590 24-Nov-15 19.82 "P-668'' LBC EXPRESS, INC. 45410 15-Nov-15 16.07 "P-685" PLDT 287920655 12-Nov-15 364.83 "P-484" LBC EXPRESS, INC. 28788 11-Nov-15 12.32 "P-714" SMART COMMUNICATIONS, INC. 0192251871 02-Nov-15 497.03 "P-867" SMART COMMUNICATIONS, INC. 0194274790 02-Nov-15 116.13 "P-868" LBC EXPRESS, INC. 46231 21-Dec-15 19.82 "P-324" CABADBARAN SHELL SERVICE STATION 048795 29-Dec-15 105.31 "P-400" LBC EXPRESS, INC. 11506 15-Dec-15 19.82 "P-431" LBC EXPRESS, INC. 11213 08-Dec-15 16.07 "P-432" LBC EXPRESS, INC. 45882 04-Dec-15 19.82 "P-433" LBC EXPRESS, INC. 157868 17-Dec-15 19.82 "P-434" LBC EXPRESS, INC. 156339 03-Dec-15 19.82 "P-435" LBC EXPRESS, INC. 43414 14-Dec-15 74.89 "P-437" CEBU AIR, INC. 3741318 10-Dec-15 175.45 "P-402" FIRST ASIA REALTY 0012337 11-Dec-15 5.36 "P-446" PLDT 0291690616 10-Dec-15 364.83 "P-609" Subtotal P3,576.85 3. Supported by out of period SI, OR or collection receipt D MICHAEL CO INDUSTRIAL SUPPLY CORP. 1999 01-Sep-15 P18,970.71 "P-515"/ "P-515-A" GOODHOPE HARDWARE 32791 02-Sep-15 184.29 "P-853" GOODHOPE HARDWARE 33311 11-Sep-15 110.68 "P-721" SYT GLASS CENTER, INC. 4964 18-Sep-15 1,429.20 "P-723" CEBU MMF GLASS AND ALUMINUM SUPPLY 23480 14-Sep-15 925.99 "P-724" JASPER GLASS & BUILDERS CORP. 11662 16-Sep-15 22.30 "P-725" ATLANTIC HARDWARE 9247 21-Sep-15 402.15 "P-852" PUREGOLD PRICE CLUB, INC. 31170 29-Sep-15 226.36 "P-727" IRON CITY CALTEX STATION 3312 25-Sep-15 186.50 "P-730" JASPER GLASS & BUILDERS CORP. 11661 16-Sep-15 1,296.20 "P-731" ASYA GLASS PHILIPPINES 20165A 26-Sep-15 66.43 "P-732" SANFORD MARKETING CORPORATION 12623 23-Sep-15 16.87 "P-733" SANFORD MARKETING CORPORATION 12651 24-Sep-15 93.46 "P-734" SANFORD MARKETING CORPORATION 13011 15-Sep-15 11.22 "P-735" SOUTHERN STAR ALUMINUM 7431 25-Sep-15 9,642.86 "P-737" GOODHOPE HARDWARE 34024 26-Sep-15 171.43 "P-739" SANFORD MARKETING CORPORATION 13017 27-Sep-15 24.75 "P-741" D'EXCEL INTERNATIONAL FORWARDER, INC. 0161 10-Sep-14 2,887.76 "P-745" U FREIGHT PHILS. 1132415 04-Sep-15 891.17 "P-748" MANDARIN 4417 30-Sep-15 96.32 "P-749" GRACEHILL ECONOSUITES 5280 23-Sep-15 160.71 "P-106" DALES FOOD HAUS 20970 30-Sep-15 78.75 "P-107'' TRI OKTO SHELL GASOLINE STATION 10526 22-Sep-15 107.14 "P-291"/ "P-292" JOLLY U. ZAPATA 22012 23-Sep-15 168.80 "P-119" WILCON DEPOT BUILDERS DEPOT, INC. 44257 29-Sep-15 429.04 "P-303" WILCON DEPOT BUILDERS DEPOT, INC. 44317 30-Sep-15 1,433.08 "P-304" PRUDENTIAL CUSTOMS BROKERAGE SERVICES, INC. 268792 28-Sep-15 17.57 "P-198" TORN SI 16797 30-Sep-15 320.89 "P-284" BRENT OIL CORP. 290171 26-Sep-15 176.81 "P-144" XPRESSFILL STATION SUCAT BRANCH 24298 04-Sep-15 53.57 "P-155" XPRESSFILL STATION SUCAT BRANCH 25147 18-Sep-15 214.30 "P-156" XPRESSFILL STATION SUCAT BRANCH 25206 22-Sep-15 123.25 "P-157" D MICHAEL CO INDUSTRIAL SUPPLY CORP. 1888 01-Sep-15 13,312.57 "P-315" CITI HARDWARE BACOLOD, INC. 128022 30-Sep-15 57.86 "P-160" NEW SURIGAO PAINTHAUS AND AUTO PARTS GEN. MDSE. 5741 30-Sep-15 26.79 "P-257" CITRA METRO MANILA TOLLWAYS CORP. 29332 28-Sep-15 214.29 "P-197" CITRA METRO MANILA TOLLWAYS CORP. 2879896 16-Sep-15 214.29 "P-194" ESPRUTINGKLE GAS AND SERVICE, INC. None 04-Sep-15 10.72 "P-184" 7-ELEVEN unreadable 04-Sep-15 4.71 "P-183" ESPRUTINGKLE GAS AND SERVICE, INC. 41915 29-Sep-15 10.71 "P-278" ESPRUTINGKLE GAS AND SERVICE, INC. none 29-Sep-15 203.57 "P-188" QUADRO CORNELIO FOOD VENTURES 1329 28-Sep-15 17.68 "P-286" SUPER SHOPPING MARKET, INC. 13018 28-Sep-15 36.96 "P-285" SANFORD MARKETING CORP. 12683 29-Sep-15 24.11 "P-224" SANFORD MARKETING CORP. 12684 29-Sep-15 18.80 "P-225" SANFORD MARKETING CORP. 12692 30-Sep-15 302.68 "P-221" SANFORD MARKETING CORP. 12698 30-Sep-15 50.49 "P-222" SANFORD MARKETING CORP. 12693 30-Sep-15 16.77 "P-223" CEBU PORT AUTHORITY 6324726 03-Jun-15 1,261.59 "P-104" DMC 1805 18-Jul-15 7,164.64 "P-744"/ "P-744-A" OFFICE BASICS CORPORATION 23953 22-Jul-15 143.57 "P-108" OFFICE BASICS CORPORATION 23455 04-Jul-15 991.61 "P-109" PRIMERA CLASE GAS STATION, INC. 64471 30-Jul-15 214.30 "P-113" AM PHIL. FOOD CONCEPTS, INC. 17007 25-Aug-15 645.77 "P-100" U FREIGHT PHILIPPINES, INC. 66957 24-Aug-15 518.25 "P-112"/ "P-112-A" U FREIGHT PHILIPPINES, INC. 1130867 10-Aug-15 10,074.34 "P-114" TRI OKTO SHELL GASOLINE STATION 9996 26-Aug-15 128.58 "P-293"/ "P-294" XPRESSFILL STATION SUCAT BRANCH 29157 07-Aug-15 166.81 "P-158" XPRESSFILL STATION SUCAT BRANCH 23461 24-Aug-15 144.65 "P-159" XPRESSFILL STATION SUCAT BRANCH 23516 28-Aug-15 116.79 "P-154" CITRA METRO MANILA TOLLWAYS CORPORATION 2774929 28-Aug-15 214.29 "P-196" Subtotal P77,248.75 4. Supported by documents other than SI or OR METRO SURIGAO SHOPPING CENTER, INC. 7381 30-Oct-15 P989.48 "P-719"/"P-719-A" WILCON BUILDERS DEPOT, INC. 42656 15-Oct-15 41.71 "P-751" WILCON BUILDERS DEPOT, INC. 25818 23-Oct-15 77.25 "P-808" CITRA METRO MANILA TOLLWAYS CORP. 3072069 27-Oct-15 214.29 "P-505" PHILIPPINE LONG DISTANCE TELEPHONE COMPANY 284225739 05-Oct-15 706.09 "P-110" CEBU BELMONT, INC. 95426 06-Oct-15 235.69 "P-111" BELMONTH HARDWARE DEPOT 127605 12-Oct-15 419.57 "P-117" CEBU BELMONT, INC. 10616 12-Oct-15 267.00 "P-118" OFFICE WAREHOUSE, INC. 130931 22-Oct-15 341.79 "P-259" OFFICE WAREHOUSE, INC. 201839 13-Oct-15 74.46 "P-242" OCTAGON COMPUTER SUPERSTORE 48133 17-Oct-15 556.07 "P-272" SHOPPING CENTER, INC. 96988 02-Oct-15 831.01 "P-122" OCTAGON COMPUTER SUPERSTORE 47940 06-Oct-15 741.43 "P-273" METRO SUPERMARKET BANILAD 36317 04-Oct-15 63.92 "P-252" CUBIX OFFICE, INC. 15681 09-Oct-15 30.21 "P-200" PROTON MICROSYSTEMS 324900 07-Oct-15 2,673.21 "P-274" ABACUS BOOK AND CARD CORP. 2133162 02-Oct-15 115.93 "P-152" RICHMONDE HOTEL 758827 30-Oct-15 8.04 "P-267'' METRO SURIGAO SHOPPING CENTER, INC. 7263 17-Oct-15 819.66 "P-322" to "P-322-B" CITRA METRO MANILA TOLLWAYS CORP. 271131 20-Oct-15 9.00 "P-189" SOUTH LUZON TOLLWAY CORPORATION 342375 20-Oct-15 1.29 "P-190" SOUTH LUZON TOLLWAY CORPORATION 271857 20-Oct-15 14.25 "P-191" CITRA METRO MANILA TOLLWAYS CORP. 232363 16-Oct-15 14.25 "P-253" SOUTH LUZON TOLLWAY CORPORATION 305010 16-Oct-15 1.61 "P-254" CITRA METRO MANILA TOLLWAYS CORP. 34625 19-Oct-15 214.29 "P-195" CITRA METRO MANILA TOLLWAYS CORP. 190913 16-Oct-15 9.00 "P-175" STATION SQUARE EAST COMMERCIAL CORP. 75808 16-Oct-15 4.29 "P-174" OCTAGON COMPUTER SUPERSTORE 48393 04-Nov-15 741.43 "P-615" CITRA METRO MANILA TOLLWAYS CORP. 285531 09-Nov-15 9.00 "P-625" MANILA INTERNATIONAL AIRPORT AUTHORITY 41290 15-Nov-15 4.29 "P-495" CITRA METRO MANILA TOLLWAYS CORP. 134504 10-Nov-15 53.57 "P-499" CITRA METRO MANILA TOLLWAYS CORP. 3195753 10-Nov-15 53.57 "P-503" MANILA INTERNATIONAL AIRPORT AUTHORITY 468831 25-Nov-15 4.29 "P-504" 7 ELEVEN unreadable 15-Nov-15 18.96 "P-636" NATIONAL BOOK STORE 1059593 11-Nov-15 116.73 "P-639" OCTAGON COMPUTER SUPERSTORE unreadable 26-Nov-15 185.36 "P-588" PIZZA HUT-PHILIPPINE PIZZA, INC. 137655 19-Nov-15 89.68 "P-647" LBC EXPRESS, INC. None 17-Nov-15 19.82 "P-649" TAI-PAN DEVELOPMENT, INC. 0122541 20-Nov-15 44.11 "P-667" OCTAGON COMPUTER SUPERSTORE 48522 13-Nov-15 1,612.50 "P-677" PARKWAY None 13-Nov-15 46.41 "P-891" GLOBE TELECOM, INC. 73809 16-Nov-15 160.54 "P-696" GLOBE TELECOM, INC. 73811 16-Nov-15 383.78 "P-849" GLOBE TELECOM, INC. 73810 16-Nov-15 419.68 "P-697" GLOBE TELECOM, INC. 73812 16-Nov-15 160.54 "P-848" GLOBE TELECOM, INC. 73808 16-Nov-15 336.47 "P-698" GLOBE TELECOM, INC. 71375 02-Nov-15 535.50 "P-206" CITI HARDWARE BACOLOD, INC. 133977 12-Dec-15 616.49 "P-449" SAVEMORE 8521560 01-Dec-15 30.16 "P-422" ACE HARDWARE 73372 02-Dec-15 5.33 "P-360" GOODHOPE HARDWARE 6947 04-Dec-15 34.93 "P-436" GOODHOPE HARDWARE 6930 04-Dec-15 7.71 "P-436-A" PUERTO SERVICIO 1752479 10-Dec-15 5.36 "P-372" 7 ELEVEN 590003 09-Dec-15 8.68 "P-479" GLOBE TELECOM 38492 23-Dec-15 4,109.10 "P-844" CITRA METRO MANILA TOLLWAYS CORP. 217846 01-Dec-15 214.29 "P-498" Subtotal P19,503.07 5. Purchase of services supported by documents other than OR PINEDA GASOLINE STATION 30010 05-Oct-15 P10.71 "P-282" LAVENDER SHELL SERVICE STATION & GEN. MDSE. 105116 04-Oct-15 192.84 "P-243" LAVENDER SHELL SERVICE STATION & GEN. MDSE. 105091 07-Oct-15 184.29 "P-247" XPRESSFILL STATION 109676 09-Nov-15 119.07 "P-610" PRIMERA CLASE GAS STATION, INC. 69996 02-Nov-15 165.53 "P-613" VALUCORE BUSINESS VENTURES CORPORATION 4193 16-Nov-15 123.41 "P-614" CAPITOL 8 GAS & FUEL STATION, INC. 68951 09-Nov-15 128.57 "P-624" CAPITOL 8 GAS & FUEL STATION, INC. 69404 25-Nov-15 77.37 "P-501" TONNEL'S PETRON SERVICE STATION 15706 22-Nov-15 111.64 "P-581" SOLANO PETRON SERVICE CENTER 111660 25-Nov-15 62.14 "P-561" XPRESSFILL STATION 108833 06-Nov-15 58.71 "P-593" PINEDA GASOLINE STATION 30919 02-Nov-15 12.86 "P-660" LAVENDER SHELL SERVICE STATION & GEN. MDSE. 110907 23-Nov-15 136.87 "P-566" LAMUAN SHELL GAS STATION, INC. 853446 27-Nov-15 18.21 "P-711" JERICK PETRON SERVICE CENTER 1068905 10-Nov-15 7.98 "P-149" LAVENDER SHELL SERVICE STATION & GEN. MERCHANDISE 112721 26-Dec-15 96.43 "P-421" LAVENDER SHELL SERVICE STATION & GEN. MERCHANDISE 112560 19-Dec-15 107.14 "P-326" NORTHERN STAR ENERGY 40990 18-Dec-15 107.14 "P-454" PINEDA GASOLINE STATION 33342 02-Dec-15 5.36 "P-415" Subtotal P1,726.27 Total-input VAT on domestic purchases of goods and services P115,617.71 II. Input VAT on Importations Input VAT on importations supported by photocopied 92 Statement of Settlement of Duties & Taxes/Assessment Notice/BOC Single Administrative Document/Temporary Assessment Notice and computer generated bank statement REMA TIP TOP AG P178,392.00 "P-872" to "P-872-H" TIP TOP OBERFLACHENSHUTZ ELBE 462,603.00 "P-873" to "P-873-E" REMA TIP TOP AG 132,659.00 "P-874" to "P-874-F" GMA GARNET GROUP 59,251.00 "P-875" to "P-875-D" TIP TOP OBERFLACHENSHUTZ ELBE 214,016.00 "P-876" to "P-876-C" AME INTERNATIONAL 27,673.00 "P-878" to "P-878-D" TIP TOP JAPAN 80,265.00 "P-879" to "P-879-F" REMA TIP TOP TIANJIN RUBBER TECH 20,510.00 "P-880" to "P-880-D" Total-input VAT on importations P1,175,369.00 TOTAL P1,290,986.71 In sum, out of the reported input VAT of P1,574,758.55 for the 4th quarter of 2015, only the amount of P232,014.18, as computed below, represents petitioner's valid input VAT: ICHDca Reported Input VAT P1,574,758.55 Less: Disallowances Unaccounted/unsubstantiated input VAT P18,211.61 Per ICPA Report 33,546.05 Per Court's further verification 1,290,986.71 1,342,744.37 Valid Input VAT P232,014.18 Since there are both zero-rated or effectively zero-rated sales and taxable sales subject to 12% VAT, the valid input VAT of P232,014.18 shall be proportionately allocated on the basis of sales volume. To reiterate, the eighth requisite is to the effect that the input taxes claimed are attributable to zero-rated or effectively zero-rated sales. However, where there are both zero-rated or effectively zero-rated sales and taxable or exempt sales, and the input taxes cannot be directly and entirely attributable to any of these sales, the input taxes shall be proportionately allocated on the basis of sales volume. As stated earlier, for the subject period of claim, there exist taxable sales subject to twelve percent (12%) and 0% rates, to wit: 93 Particulars Amount Vatable Sales/Receipts P4,313,062.28 Zero-Rated Sales/Receipts 14,548,005.68 Total Sales/Receipts P18,861,067.96 Since petitioner's input VAT cannot be directly or entirely attributed to any of the transactions, the valid input VAT of P232,014.18 shall be allocated proportionately on the basis of the volume of petitioner's total sales, as shown below: Taxable Sales subject to 12% VAT for the 4th quarter of 2015 P4,313,062.28 Divided by the Total Sales for the 4th quarter of 2015 18,861,067.96 Multiplied by Total Valid Input VAT 232,014.18 Valid input VAT allocated to sales subject to 12% VAT P53,055.94 Zero Rated Sales for the 4th quarter of 2015 P14,548,005.68 Divided by the Total Sales for the 4th quarter of 2015 18,861,067.96 Multiplied by Total Valid Input VAT 232,014.18 Valid input VAT allocated to zero-rated sales P178,958.24 Thus, for purposes of, and with regard to petitioner's compliance with the eighth requisite, only the amount of P178,958.24 represents valid input VAT attributable to total reported zero-rated sales. Petitioner has no excess input VAT available for refund Having determined that petitioner had valid input VAT attributable to its zero-rated sales, the Court shall now determine whether the same was not applied against its output VAT liability during and in the succeeding quarters, relative to the ninth requisite for the successful prosecution of an input VAT refund claim. After deducting the input VAT attributable to taxable sales subject to 12% VAT in the amount of P53,055.94 from its output VAT liability of P517,567.47 94 on the said sales, petitioner still has a net output VAT payable of P464,511.53, as computed below: Output VAT per Return P517,567.47 Less: Input VAT allocated to 12% Vatable Sales 53,055.94 Net Output VAT Payable P464,511.53 Since the valid input VAT attributable to 12% vatable sales is not enough to cover its output VAT liability, the valid input VAT attributable to total reported zero-rated sales in the amount of P178,958.24 shall be utilized against the remaining output VAT liability of P464,511.53. However, the input VAT attributable to zero-rated sales of P178,958.24 is lower than the net output VAT payable of P464,511.53. Consequently, petitioner still has net output VAT due of P285,553.29, computed as follows: Net Output VAT Payable P464,511.53 Less: Input VAT attributable to Zero-rated Sales 178,958.24 Net Output VAT Still Due P285,553.29 Although petitioner's amended Quarterly VAT Return for the 4th quarter of taxable year 2015 reflected the amount of P4,696,993.60 95 as " Input Tax Carried Over from Previous Period ," petitioner failed to substantiate the same. Needless to say, petitioner failed to prove that it has excess input VAT carried over from previous period. Accordingly, the input tax carries over of P4,696,993.60, cannot be validly applied against petitioner's output tax pursuant to Section 110 (A) in relation to Section 110 (B) of the NIRC of 1997, as amended, which states: TCAScE "SEC. 110. Tax Credits . (A) Creditable Input Tax . (1) Any input tax evidenced by a VAT invoice or official receipt issued in accordance with Section 113 hereof on the following transactions shall be creditable against the output tax: xxx xxx xxx (B) Excess Output or Input Tax . If at the end of any taxable quarter the output tax exceeds the input tax, the excess shall be paid by the VAT-registered person. If the input tax exceeds the output tax, the excess shall be carried over to the succeeding quarter or quarters: x x x." Based on the foregoing provision, it is worthy to stress that in claiming excess or unutilized input VAT from zero-rated transactions, it is the excess input tax over the output tax which should be refunded to the taxpayer or credited against other internal revenue taxes. Hence, it is important for the taxpayer to prove that it has enough prior year's excess input tax credits to cover its output tax liability for the current taxable year. To repeat, in cases filed before this Court, which are litigated de novo , party-litigants must prove every minute aspect of their case. 96 Consequently, petitioner failed to fulfill the ninth requisite, i.e. , that the input taxes have not been applied against output taxes during the quarter. Its failure to substantiate that it has sufficient input taxes to offset its output taxes due for the period covered merits the denial of its claim for refund. With the foregoing disquisitions, there is no showing that petitioner fully complied with the requisites to successfully obtain a refund of input VAT. In fine, considering that petitioner failed to show that its administrative claim should not have been denied in the first place, as earlier discussed, and since it likewise failed to sufficiently prove its entitlement to a refund of its input VAT for the 4th quarter of taxable year 2015, the instant claim for refund must perforce be desired. It must be emphasized that actions for tax refund or credit, as in the instant 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. 97 Thus, the burden is on the taxpayer to show that it has strictly complied with the conditions for the grant of the tax refund of credit. 98 In this case, petitioner failed to discharge the said burden warranting the denial of its claim for refund or issuance of tax credit certificate. WHEREFORE , in light of the foregoing considerations, the instant Petition for Review is DENIED for lack of merit. SO ORDERED. (SGD.) MA. BELEN M. RINGPIS-LIBAN Associate Justice Erlinda P. Uy and Maria Rowena Modesto-San Pedro, JJ. , concur. Footnotes 1. Summary of the Case, Pre-Trial Order dated November 5, 2018, Docket Vol. 3, p. 1063; and Summary of the Case, Amended Pre-Trial Order dated March 4, 2019, Docket Vol. 3, p. 1317. 2. Exhibits "P-17" and "P-17-a", Docket Vol. 3, pp. 1416 to 1447. 3. Exhibit "P-15", Docket Vol. 3, p. 1409. 4. Par. 1.01, Joint Stipulation of Facts and Issues (JSFI), Docket Vol. 3, p. 1044. 5. Exhibits "P-1" and "P-1-A", Docket Vol. 3, p. 1373. 6. Exhibit "P-36", Docket Vol. 3, p. 1457. 7. Docket Vol. 1, pp. 10 to 38. 8. Docket Vol. 2, pp. 995 to 999. 9. Notice of Pre-Trial Conference dated June 21, 2018, Docket Vol. 3, pp. 1002 to 1003; Minutes of the hearing held on, and Order dated, September 18, 2018, Docket Vol. 3, pp. 1041 and 1043, respectively. 10. Docket Vol. 3, pp. 1008 to 1035, and 1038 to 1040, respectively. 11. Docket Vol. 3, pp. 1044 to 1057. 12. Docket Vol. 3, pp. 1063 to 1069. 13. Docket Vol. 3, p. 1078. 14. Docket Vol. 3, pp. 1086 to 1088. 15. Per Records Verification Report dated January 28, 2019 issued by the Judicial Records Division of this Court, Docket Vol. 3, p. 1218. 16. Docket Vol. 3, pp. 1274 to 1275. 17. Docket Vol. 3, pp. 1317 to 1323. 18. Exhibit "P-41", Docket Vol. 3, pp. 1128 to 1149; Minutes of the hearing held on, and Order dated, January 24, 2019, Docket Vol. 3, pp. 1216 to 1217. 19. Exhibit "P-50", Docket Vol. 3, pp. 1279 to 1307; Minutes of the hearing held on and Order dated, March 5, 2019, Docket Vol. 3, pp. 1324, and 1326 to 1327, respectively. 20. Oath of Commission dated December 4, 2018, Docket Vol. III, p. 1113; Minutes of the hearing held on, and Order dated, December 4, 2018, Docket Vol. III, pp. 1112, and 1114 to 1115, respectively. 21. Exhibit "P-42", Docket Vol. 3, pp. 1220 to 1240. 22. Docket Vol. 3, pp. 1351 to 1370. 23. Per Records Verification Report dated May 3, 2019 issued by the Judicial Records Division of this Court, Docket Vol. 3, p. 1498. 24. Resolution dated June 26, 2019, Docket Vol. 4, pp. 1501 to 1503. 25. Docket Vol. 4, pp. 1521 to 1524. 26. Per Records Verification Report dated September 20, 2019 issued by the Judicial Records Division of this Court, Docket Vol. 4, p. 1543. 27. Docket Vol. 4, pp. 1545 to 1546. 28. Docket Vol. 4, pp. 1553 to 1554. 29. Docket Vol. 4, pp. 1557 to 1558. 30. Docket Vol. 4, pp. 1559 to 1590. 31. Per Records Verification Report dated January 12, 2021 issued by the Judicial Records Division of this Court, Docket Vol. 4, p. 1596. 32. Resolution dated January 15, 2021, Docket Vol. 4, p. 1598 33. Statement of the Issues, JSFI, Docket Vol. 3, pp. 1044 to 1045. 34. AN ACT AMENDING SECTIONS 27, 28, 34, 106, 107, 108, 109, 110, 111, 112, 113, 114, 116, 117, 119, 121, 148, 151, 236, 237 AND 288 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES. 35. Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue , G.R. No. 166732, April 27, 2007; San Roque Power Corporation vs. Commissioner of Internal Revenue , G.R. No. 180345, November 25, 2009; and AT&T Communications Services Philippines, Inc. vs. Commissioner of Internal Revenue , G.R. No. 182364, August 3, 2010. 36. Steag State Power, Inc. (Formerly State Power Development Corporation) vs. Commissioner of Internal Revenue , G.R. No. 205282, January 14, 2019; Rohm Apollo Semiconductor Philippines vs. Commissioner of Internal Revenue , G.R. No. 168950, January 14, 2015. 37. Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue , supra ; San Roque Power Corporation vs. Commissioner of Internal Revenue , supra ; and AT&T Communications Services Philippines, Inc., supra . 38. Id. 39. Id. 40. Id. 41. Id. 42. Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue, supra ; and San Roque Power Corporation vs. Commissioner of Internal Revenue, supra . 43. Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue, supra ; San Roque Power Corporation vs. Commissioner of Internal Revenue, supra ; and AT&T Communications Services Philippines, Inc. , supra . 44. Edison (Bataan) Cogeneration Corporation vs. Commissioner of Internal Revenue, et seq. , G.R. Nos. 201665 and 201668, August 30, 2017; Commissioner of Internal Revenue vs. Philippine National Bank , G.R. No. 180290, September 29, 2014; Commissioner of Internal Revenue vs. United Salvage and Towage (Phils.), Inc. , G.R. No. 197515, July 2, 2014; Dizon vs. Court of Tax Appeals, et al. , G.R. No. 140944, April 30, 2008; Atlas Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue , G.R. No. 145526, March 16, 2007; and Commissioner of Internal Revenue vs. Manila Mining Corporation , G.R. No. 153204, August 31, 2005. 45. Exhibits "P-1" and "P-1-A", Docket Vol. 3, p. 1373. 46. Par. 3.09, Petition for Review , Docket Vol. I, p. 13; Annex "A", Petition for Review , Docket Vol. I, pp. 30 to 31; Q&A Nos. 23 to 26, Exhibit "P-453", Docket Vol. II, pp. 608 to 609. 47. Docket Vol. I , pp. 10 to 38. 48. Exhibit "P-15", Docket Vol. 3, p. 1409. 49. Exhibit "P-3", Docket Vol. 3, pp. 1382 to 1383. 50. Refer to No. 31A, Exhibit "P-50", Docket Vol. 3, p. 1292. 51. Table IX of No. 14, Exhibit "P-42", Docket Vol. 3, p. 1233. 52. Coral Bay Nickel Corporation P920,197.48 Taganito HPAL Nickel Corporation 12,872,494.91 Total sales to PEZA-registered entities P13,792,692.39 53. Evonik Methionine Sea Pty Ltd. P122,008.10 Tip Top Japan, Inc. 3,100.35 Veolia Water Technologies Deutschland 44,982.72 Total sales to NRFC P170,091.17 54. No. 17, Exhibit "P-42", Docket Vol. 3, p. 1234. 55. G.R. No. 150154, August 9, 2005. 56. Now at 12% VAT rate. 57. SUBJECT: Tax Treatment of Sales of Goods, Properties and Services Made by VAT-registered Suppliers to BOI-registered Manufacturers-Exporters With 100% Export Sales. 58. Annex A, Exhibit "P-42-2", Docket Vol. 3, pp. 1466 to 1467. 59. Exhibits "P-8" to "P-8-1", Docket Vol. 3, pp. 1395 to 1397; "P-906" to "P-906-B". 60. No. 13, Exhibit "P-42", Docket Vol. 3, p. 1233. 61. Exhibits "P-8" to "P-8-1", Docket Vol. 3, pp. 1395 to 1397. 62. Par. 2, Docket Vol. 4, pp. 1501-1503. 63. Exhibits "P-8-1", Docket Vol. 3, pp. 1396 to 1397; "P-906-A" to "P-906-B". 64. Docket Vol. 3, pp. 1398 to 1402. 65. Annex A, Exhibit "P-42-2", Docket Vol. 3, pp. 1466 to 1467. 66. P13,792,692.39 less P11,470,298.91. 67. No. 15, Exhibit "P-42", Docket Vol. 3, p. 1233. 68. Sitel Philippines Corporation (Formerly Clientlogic Phils., Inc.) vs. Commissioner of Internal Revenue , G.R. No. 201326, February 8, 2017; Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc. , G.R. No. 153205, January 22, 2007; Accenture, Inc. vs. Commissioner of Internal Revenue , G.R. No. 190102, July 11, 2012. 69. Commissioner of Internal Revenue vs. American Express International, Inc. (Philippine Branch) , G.R. No. 152609, June 29, 2005. 70. Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc., supra . 71. Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc., supra ; Commissioner of Internal Revenue vs. American Express International, Inc. (Philippine Branch) , supra . 72. Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc., supra ; Commissioner of Internal Revenue vs. American Express International, Inc. (Philippine Branch), supra . 73. Commissioner of Internal Revenue vs. Deutsche Knowledge Services Pte. Ltd. , G.R. No. 234445, July 15, 2020. 74. Id. 75. Exhibits "P-1085" to "P-1087". 76. Table IX of No. 14, Exhibit "P-42", Docket Vol. 3, p. 1233. 77. No. 17, Exhibit "P-42", Docket Vol. 3, p. 1234; Exhibits "P-978" to "P-978-C". 78. No. 18, Exhibit "P-42", Docket Vol. 3, p. 1234. 79. Fort Bonifacio Development Corporation vs. Commissioner of Internal Revenue , G.R. Nos. 158885 and 170680, April 2, 2008. 80. Exhibits "P-100" to "P-880" and submarkings. 81. No figures reported in the Quarterly VAT Return for the 4th quarter of TY 2015. Amounts were computed by the undersigned. 82. Paragraphs 17 and 18, Petition for Review , Docket Vol. 1, pp. 18 to 19. 83. Total "AMOUNT OF INPUT" Column, Annex C, Exhibit "P-42-4", Docket Vol. 3, p. 1477. 84. Total "INPUT VAT AMOUNT" Column, Annex D, Exhibit "P-42-5", Docket Vol. 3, p. 1478. 85. Annex C, Exhibit "P-42-4", Docket Vol. 3, pp. 1471 to 1477. 86. Annex D, Exhibit "P-42-5", Docket Vol. 3, p. 1478. 87. Expressed in month/day/year. 88. Actual exhibit pertains to a different transaction. 89. Net Amount of Purchases Not Valid to Claim Input VAT of P265,648.44 per Annex C, Exhibit "P-42-4", Docket Vol. 3, p. 1477; P0.04 rounding-off difference. 90. Net Amount of Importations Not Valid to Claim Input VAT of P48,058.33 per Annex D, Exhibit "P-42-5", Docket Vol. 3, p. 1478. 91. Expressed in day-month-year. 92. "PHOTOCOPY/ORIGINAL" Column, Exhibit "P-42-5", Docket Vol. 3, p. 1478. 93. Exhibit "P-3", Docket Vol. 3, pp. 1382 to 1383. 94. Exhibit "P-3" (Line 15B), Docket Vol. 3, p. 1382. 95. Exhibit "P-3" (Line 20A), Docket Vol. 3, p. 1382. 96. Edison (Bataan) Cogeneration Corporation vs. Commissioner of Internal Revenue, et seq. , G.R. Nos. 201665 and 201668, August 30, 2017; Commissioner of Internal Revenue vs. Philippine National Bank , G.R. No. 180290, September 29, 2014; Commissioner of Internal Revenue vs. United Salvage and Towage (Phils.), Inc. , G.R. No. 197515, July 2, 2014; Dizon vs. Court of Tax Appeals, et al. , G.R. No. 140944, April 30, 2008; Atlas Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue , G.R. No. 145526, March 16, 2007; and Commissioner of Internal Revenue vs. Manila Mining Corporation , G.R. No. 153204, August 31, 2005. 97. Atlas Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue , G.R. No. 159490, February 18, 2008. 98. Commissioner of Internal Revenue vs. San Roque Power Corporation , G.R. No. 187485, February 12, 2013.