Macquarie Offshore Services Pty. Ltd. — Philippine Branch vs. Commissioner of Internal Revenue

SECOND DIVISION [C.T.A. CASE NOS. 8221 & 8282. July 31, 2014.] MACQUARIE OFFSHORE SERVICES PTY. LTD. PHILIPPINE BRANCH , petitioner, vs . COMMISSIONER OF INTERNAL REVENUE , respondent. RESOLUTION CASANOVA , J p : For resolution is respondent's "Motion for Reconsideration (Of the Decision dated 2 May 2014)" , filed through registered mail on May 15, 2014, with petitioner's "Comment/Opposition (Re: Respondent's 'Motion for Reconsideration [of the Decision dated 2 May 2014]' dated 15 May 2014)" filed through registered mail on June 10, 2014. Respondent assails the Decision dated May 2, 2014 on the ground that petitioner failed to prove that the recipient of its services is doing business outside the Philippines; thus, its transactions are not zero-rated. She contends that the SEC Certificate of Non-Registration presented by petitioner and the Service Agreement with the latter's client are not sufficient proof that Macquarie Financial Holdings Limited (MFHL) is doing business outside the Philippines. Respondent argues that petitioner should have offered concrete evidence to prove that its clients are doing business outside the Philippines. Petitioner opposes the aforesaid motion on the following grounds: EcaDCI (1) it has sufficiently, convincingly and overwhelmingly established by documentary and testimonial evidence that the sole recipient of its services Macquarie Financial Holdings, Inc. is an entity doing business outside of the Philippines in accordance with prevailing law and jurisprudence, therefore its sales of services for the fiscal year 2009 qualify for VAT zero-rating; (2) the motion for reconsideration is a pro forma motion for not complying with the 10-day rule in setting dates for the time and date of the hearing; and (3) even assuming that the motion for reconsideration is not pro forma , it still deserves scant consideration as it raises nothing new or substantial that has not already been passed upon by the Court. Petitioner alleges that it presented not only the Certificate of Non-Registration but also its Services Agreement with MFHL and various certificates issued by the Australian Securities and Investments Commission marked as Exhibits "GG" to "GG-3" and "HH" to "HH-4". It also points out that testimonial evidence were likewise presented to support the aforesaid documentary evidence. It further argues that the afore-stated motion is a pro forma motion for violating Section 5 of Rule 15 of the Rules of Court and as such, it shall not toll the reglementary period of appeal pursuant to Rule 37, Section 2 of the same Rules. Petitioner likewise states that even if the said motion is not pro forma , it merely reiterates respondent's arguments in her Memorandum which had already passed upon by this Court. CHDAEc Anent petitioner's allegation on the technical infirmities of the instant Motion, the Court deems to resolve the instant motion on the merits considering that the proceedings before the Court are not governed strictly by the technical rules of evidence. Upon a perusal of the ground presented by respondent in her Motion, the Court finds that the same is a mere rehash of the argument she presented in her Memorandum which had already been passed upon extensively in the assailed Decision. Notwithstanding, the Court emphasizes that in the assailed Decision, it took into consideration other documentary evidence presented by petitioner with respect to the requirement that the recipient of the services is doing business outside the Philippines. Aside from the SEC Certificate of Non-Registration, the following were likewise, considered Consular Authentication of annexed documents dated January 7, 2011; Australian Securities and Investments Commission (ASIC): Certificate of Registration on Change of Name (Macquarie Group Holdings No. 2 Ltd. to Macquarie Financial Holdings Limited [ACN 124 071 398]); ASIC: Certificate of Registration of a Company Macquarie Group Holdings No. 2 Ltd. (ACN124071398); Constitution of Macquarie Financial Holdings Limited, Consular Authentication of annexed documents (Re: ASIC Company Extract), 07 January 2011; ASIC Company Extract Macquarie Financial Holdings Limited: Registration details; ASIC Company Extract Macquarie Financial Holdings Limited: Current Organization Details; ASIC Company Extract Macquarie Financial Holdings Limited: Registered Office; and ASIC Company Extract Macquarie Financial Holdings Limited: Principal Place of Business. In view of the foregoing, the Court finds no reason or ground to reverse or set aside the assailed Decision. WHEREFORE , respondent's "Motion for Reconsideration (Of the Decision dated 2 May 2014)" is DENIED for lack of merit. DIEcHa SO ORDERED . (SGD.) CAESAR A. CASANOVA Associate Justice Juanito C. Castaeda, Jr. and Amelia R. Cotangco-Manalastas, JJ., concur.