Manulife Data Services, Inc. v. Commissioner of Internal Revenue

THIRD DIVISION [C.T.A. CASE NO. 8482. April 19, 2017.] MANULIFE DATA SERVICES, INC. , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . [C.T.A. CASE NO. 8513. April 19, 2017.] MANULIFE DATA SERVICES, INC. , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . [C.T.A. CASE NO. 8560. April 19, 2017.] MANULIFE DATA SERVICES, INC. , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . [C.T.A. CASE NO. 8611. April 19, 2017.] MANULIFE DATA SERVICES, INC. , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . DECISION BAUTISTA , J p : The Case Before the Court are four (4) consolidated Petitions for Review 1 filed by petitioner, Manulife Data Services, Inc.,on April 30, 2012, July 6, 2012, October 22, 2012 and February 12, 2013, for Court of Tax Appeals ("CTA") Case Nos. 8482, 8513, 8560 and 8611 ,respectively, pursuant to Section 7 (a) (2) 2 of Republic Act ("RA") No. 1125 , 3 as amended by RA No. 9282 4 and RA No. 9503 . 5 The Petitions for Review seek for the Court to render judgment: 1. Granting petitioner the refund or the issuance of tax credit certificates ("TCC"),and ordering respondent to refund or to issue TCCs, in the total amount Php31,163,939.20 representing excess and unutilized input value-added tax ("VAT"),broken down as follows: CAIHTE a. Php11,997,999.50 for the first quarter of calendar year ("CY") 2010; 6 b. Php10,304,630.58 for the second quarter of CY 2010; 7 c. Php4,124,167.60 for the third quarter of CY 2010; 8 and d. Php4,737,141.52 for the fourth quarter of CY 2010. 9 2. In the alternative, allowing petitioner to present evidence to prove its entitlement to the refund or the issuance of the TCCs sought, and ordering respondent to refund or to issue TCCs in the above-stated amounts. 10 The Parties Petitioner is a foreign corporation duly registered with, and authorized by, the Securities and Exchange Commission ("SEC") to operate as a Regional Operating Headquarter ("ROHQ") under SEC Certificate of Registration No. FS200603505. 11 12 It is engaged in the business of providing qualifying services to its affiliates and related parties in the Asia-Pacific Region and in other foreign markets. 13 Petitioner is a VAT-registered entity with Taxpayer Identification Number ("TIN") 244-027-271-000 and was issued BIR Certificate of Registration Nos. 3RC0000421626 14 and 3RC0000330824 15 by BIR Revenue District ("RD") Nos. 38 and 39, respectively. 16 Sometime in January 2009, petitioner transferred its registered address to Manulife Building, UP North Science and Technology Park, Commonwealth Avenue, Diliman, Quezon City. 17 Respondent Commissioner of Internal Revenue ("CIR") is the duly appointed Commissioner of the BIR, who is empowered by law to decide tax cases, including claims for refunds or tax credits. The Facts Petitioner entered into a Business Processing Services Agreement 18 ("BPSA") with Manulife (International) Limited ("MIL") effective April 10, 2006, wherein petitioner undertook to provide administrative and such other business processing outsourcing ("BPO") services 19 to MIL. On October 25, 2007, petitioner entered into a Services Agreement 20 ("SA") with John Hancock Life Insurance Company (U.S.A.) ("JHLIC"),which was deemed to have commenced on May 1, 2006. 21 The SA covers the performance of administrative, information technology, reports, support, and other services as JHLIC deems necessary in the conduct of its operations or the operations of one or more of its affiliates. 22 On May 1, 2006, petitioner entered into a Master Administrative Services Agreement ("MASA") with The Manufacturers Life Insurance Company 23 ("TMLIC"),wherein it undertook to provide administrative and such other services. 24 On April 23, 2010, petitioner entered into a Service Agreement 25 with Manulife Insurance Berhad ("MIB"),wherein petitioner undertook to provide MIB with certain administrative and other BPO services, 26 including a health services call center. 27 MIL, JHLIC, TMLIC and MIB shall collectively be referred to as "clients;" and the corresponding BPSA with MIL, SA with JHLIC, MASA with TMLIC, and SA with MIB, shall collectively be referred to as "Service Agreements" or "SAs." CTA Case No. 8482 (First Quarter of CY 2010) Petitioner filed its Quarterly VAT Declaration (BIR Form No. 2550-Q) 28 for the first quarter of CY 2010 (January to March) on April 23, 2010, showing an overpayment of Php34,307,534.36. 29 Petitioner reflected VATable zero-rated sales amounting to Php276,172,047.36. 30 On December 6, 2011, petitioner filed with Revenue District Office ("RDO") No. 38 an Application for Refund/Tax Credit of Excess and Unutilized Input VAT 31 for the first quarter of 2010 in the amount of Php11,997,999.50, together with BIR Form No. 1914 asking specifically for the issuance of a TCC. 32 Claiming inaction on the part of respondent, 33 on April 30, 2012, petitioner filed a Petition for Review, 34 docketed as CTA Case No. 8482 ,which was raffled to the CTA Third Division. On June 5, 2012, the Court issued a Summons 35 addressed to respondent, with an order to file an Answer. On June 25, 2012, respondent filed a Motion for Extension of Time to File Answer, 36 which was granted by the Court in a Resolution 37 dated July 2, 2012. On July 26, 2012, respondent filed an Answer, 38 wherein he raised the following special and affirmative defenses: (1) that petitioner failed to show that it filed an application for tax refund/TCC with RDO No. 38; (2) that its application for tax refund/TCC is subject to administrative investigation/examination by the BIR; (3) that taxes paid and collected are presumed to have been paid in accordance with law and regulations, hence, not refundable; (4) that it is incumbent upon the taxpayer to prove compliance with Sections 112, 113 and 114 of the 1997 National Internal Revenue Code, as amended ("1997 NIRC") ;and (5) that claims for refund are strictly construed against the taxpayer, as it partakes the nature of a tax exemption. On July 27, 2012, the Court issued a Notice of Pre-trial Conference, 39 setting the case for pre-trial on August 23, 2012. Thereafter, respondent and petitioner filed their Pre-trial Briefs on August 17, 2012 40 and August 22, 2012, 41 respectively. On August 13, 2012, petitioner filed by registered mail its Reply (Re: Answer dated 26 July 2012). 42 DETACa Due to the pending Motion for Consolidation in CTA Case No. 8513 ,the pre-trial conference was reset to September 6, 2012. 43 CTA Case No. 8513 (Second Quarter of CY 2010) On July 26, 2010, petitioner filed its Quarterly VAT Return (BIR Form No. 2550-Q) 44 for the second quarter (April to June) of CY 2010 showing an overpayment of Php39,391,537.49. 45 It reflected zero-rated sales amounting to Php301,265,898.75. 46 On February 17, 2012, BIR RDO No. 38 received petitioner's Application for Refund/Tax Credit of Excess and Unutilized Input VAT 47 for the second quarter of 2010, amounting to Php10,304,630.58, together with BIR Form No. 1914. 48 Claiming inaction on the part of respondent, 49 on July 6, 2012, petitioner filed a Petition for Review, 50 docketed as CTA Case No. 8513 ,which was raffled to the CTA Third Division. On July 17, 2012, the Court issued a Summons 51 addressed to respondent, with an order to file an Answer. On July 20, 2012, respondent filed an Answer, 52 wherein he raised the following special and affirmative defenses: (1) that pursuant to Section 112 (A) and (C) of the 1997 NIRC ,and the ruling of the Supreme Court in Commissioner of Internal Revenue v. Aichi Forging Company of Asia, Inc. ,petitioner's claim for refund for the second quarter VAT input taxes have already prescribed; (2) that the judicial claim for refund was filed outside the two (2)-year prescriptive period, reckoning from the close of the taxable quarter when the sales were made; and (3) that tax refunds and tax credits are construed strictly against the taxpayer. On July 23, 2012, the Court issued a Notice of Pre-trial Conference 53 scheduled on August 23, 2012. On August 3, 2012, petitioner filed a Motion for Consolidation, 54 stating that CTA Case No. 8482 involves the same parties and affects closely related subject matters as CTA Case No. 8513 ,hence, the two (2) cases must be consolidated and jointly tried in order to serve the best interests of the parties, and to expeditiously settle the issues involved. Respondent filed his Pre-trial Brief 55 on August 10, 2012. Petitioner filed by registered mail its Reply (Re: Answer dated 20 July 2012) 56 on August 6, 2012; and its Pre-trial Brief 57 on August 22, 2012. Due to the pending Motion for Consolidation, the Pre-trial Conference was reset to September 6, 2012. 58 The Motion for Consolidation was granted by the Court during the hearing held on August 23, 2012. 59 Consequently, the pre-trial conference set for that day for CTA Case Nos. 8482 and 8513 was cancelled and reset to September 6, 2012. 60 These were confirmed in a Resolution 61 dated September 4, 2012. Consolidated CTA Case Nos. 8482 and 8513 (First and Second Quarters of CY 2010) During the hearing on September 6, 2012, the parties manifested that they are amenable to the filing of their respective consolidated Pre-trial Briefs for CTA Case Nos. 8482 and 8513 . 62 They were then granted fifteen (15) days or until September 21, 2012 to file their respective consolidated Pre-trial Briefs. 63 Meanwhile, pre-trial conference was reset to October 4, 2012. 64 Petitioner filed, by registered mail, its Consolidated Pre-trial Brief 65 on September 21, 2012; while respondent filed his Consolidated Respondent's Pre-trial Brief 66 on October 1, 2012. During the hearing on October 4, 2012, the Court granted the parties a period of twenty (20) days or until October 24, 2012, to submit their Joint Stipulation of Facts and Issues ("JSFI"). 67 On October 24, 2012, petitioner filed a Motion for Extension, 68 which was granted by the Court in a Resolution 69 dated November 5, 2012. Thereafter, the parties filed their Consolidated JSFI 70 on November 7, 2012. On November 13, 2012, the Court issued a Pre-trial Order. 71 On even date, petitioner filed an Urgent Motion (To Postpone Presentation of Evidence and to Set Additional Commissioner's Hearing), 72 which was granted 73 by the Court during the hearing on November 15, 2012. The initial presentation of evidence for petitioner was reset to December 12, 2012. 74 On December 11, 2012, petitioner filed its Compliance, 75 with attached Sworn Statement of its Accounting Specialist, Ms. Agnes N. Neria 76 ("Ms. Neria").Ms. Neria testified that for the first and second quarters of CY 2010, petitioner rendered services to three (3) foreign clients MIL, JHLIC, and TMLIC and that those services were paid for in United States ("US") Dollars remitted inwardly to its US Dollar Citibank Account; and that petitioner did not generate domestic sales of services for that period. 77 Ms. Neria explained that petitioner had unutilized input VAT for the first and second quarters of CY 2010; that Applications for Refund/Tax Credit of Input VAT was filed before RDO NO. 38 on December 6, 2011 and February 17, 2012, respectively; and that the BIR did not release any decision regarding their claims. 78 During the December 12, 2012 hearing, petitioner presented Ms. Neria, who was set to be cross-examined on January 17, 2013. 79 On January 14, 2013, respondent filed an Urgent Motion to Reset Hearing, 80 which was granted 81 by the Court during the January 17, 2013 hearing. Accordingly, the scheduled cross-examination of Ms. Neria was reset to February 18, 2013. 82 aDSIHc On February 13, 2013, petitioner filed an Urgent Motion (To Postpone Presentation of Evidence), 83 this was granted by the Court during the February 14, 2013 84 hearing. Accordingly, the February 18, 2013 and March 18, 2013 settings fixed in the Pre-trial Order in CTA Case Nos. 8482 and 8513 are cancelled. The Pre-trial Conference for CTA Case No. 8560 set on February 14, 2013 was cancelled and reset to April 4, 2013, due to the parties' failure to file their respective pre-trial briefs. CTA Case No. 8560 (Third Quarter of CY 2010) On October 22, 2010, petitioner filed its Quarterly VAT Return (BIR Form No. 2550-Q) 85 for the third quarter (July to September) of CY 2010 showing an overpayment of Php43,646,090.89. 86 Petitioner reflected zero-rated sales only amounting to Php302,356,407.12. 87 On May 25, 2012, RDO No. 38 received petitioner's Application for Refund/Tax Credit of Excess and Unutilized Input VAT 88 dated May 22, 2012 for the refund of excess and unutilized input VAT for the third quarter of CY 2010 amounting to Php4,124,167.60. Attached thereto is BIR Form No. 1914. 89 Alleging inaction by respondent on its claim for refund, 90 petitioner filed a Petition for Review 91 on October 22, 2012, docketed as CTA Case No. 8560 ,and was raffled to the CTA Third Division. The corresponding Summons 92 was issued on November 9, 2012. On November 28, 2012, respondent filed his Motion for Extension of Time to File Answer, 93 which was granted 94 by the Court on December 4, 2012. On December 28, 2012, respondent filed an Answer, 95 wherein he raised the following special and affirmative defenses: (1) that petitioner's claim for tax refund or TCC is subject to the BIR's administrative investigation/examination; (2) that taxes paid and collected are presumed to have been paid in accordance with law, rules and regulations, and the burden to prove otherwise is incumbent upon petitioner; (3) that petitioner must prove its entitlement to a claim for refund; and (4) that plain allegations without any evidentiary document to support petitioner's claim will not justify its application for tax refund. He also argues that a tax credit or refund, like a tax exemption, is strictly construed against the taxpayer. Meanwhile, the Court issued a Notice of Pre-trial Conference 96 on January 2, 2013, setting the case for pre-trial on February 14, 2013. On January 10, 2013, petitioner filed a Motion for Consolidation, 97 praying that CTA Case No. 8560 be consolidated with CTA Case No. 8482 ,considering that the cases involve the same parties, a common question of law, and almost identical evidence. This was granted by the Court in its Resolution 98 dated January 25, 2013. CTA Case No. 8611 (Fourth Quarter of CY 2010) On January 25, 2011, petitioner filed its Quarterly VAT Return 99 (BIR Form No. 2550-Q) for the fourth quarter (October to December) of CY 2010 showing an overpayment of Php48,383,225.40. 100 Later, on January 31, 2011, petitioner filed its Amended Quarterly VAT Return 101 (BIR Form No. 2550-Q) for the fourth quarter of CY 2010 showing an overpayment of Php44,298,194.91, 102 and reporting zero-rated sales only in the total amount of Php311,871,631.51. 103 On September 17, 2012, RDO No. 38 received petitioner's Application for Refund/Tax Credit of Excess and Unutilized Input VAT 104 dated September 11, 2012 for the refund of excess and unutilized input VAT for the fourth quarter of 2010, amounting to Php4,737,141.52, together with BIR Form No. 1914 105 asking specifically for a tax refund. Alleging inaction by respondent on its claim for refund, 106 petitioner filed a Petition for Review 107 on February 12, 2013, docketed as CTA Case No. 8611 ,which was raffled to the CTA Second Division. The corresponding Summons 108 was issued on February 20, 2013. On March 7, 2013, respondent filed his Motion for Extension of Time to File Answer, 109 which was granted in an Order 110 dated March 8, 2013. On April 5, 2013, respondent filed an Answer 111 raising the following special and affirmative defenses: (1) that petitioner's claim for the issuance of a TCC is subject to administrative investigation or examination; (2) that taxes paid and collected are presumed to have been paid in accordance with law and regulations, hence, not refundable; (3) that the taxpayer must prove compliance with Sections 112, 113 and 114 of the 1997 NIRC ;and (4) that petitioner should prove the legal basis for its claim. Respondent also argues that claims for refund are strictly construed against the taxpayer as the same partakes the nature of tax exemption. On April 8, 2013, the CTA Second Division issued a Notice of Pre-trial Conference, 112 setting the case for pre-trial on May 23, 2013. On April 23, 2013, petitioner filed a Motion for Consolidation, 113 praying that the case be consolidated with CTA Case No. 8482 ,pending before the CTA Third Division, considering that the two (2) cases involve the same parties, a common question of law, and almost identical evidence to be presented. On May 16, 2013, petitioner filed its Urgent Motion (To Postpone Pre-trial Conference). 114 On May 17, 2013, the CTA Second Division promulgated a Resolution 115 granting the Motion for Consolidation and cancelling the pre-trial conference set on May 23, 2013. Consolidated CTA Case Nos. 8482, 8513, 8560 and 8611 (First, Second, Third, and Fourth Quarters of CY 2010) On April 2, 2013, in view of Administrative Circular No. 01-2013 dated March 26, 2013 ,the Court issued an Order 116 cancelling the pre-trial conference scheduled on April 4, 2013 and resetting the same to May 9, 2013. ETHIDa On May 4, 2013, petitioner filed its Pre-trial Brief; 117 while Respondent's Pre-trial Brief 118 was filed on May 8, 2013. During the hearing on May 9, 2013, counsel for petitioner manifested that they filed a Motion to Consolidate CTA Case No. 8611 pending before the CTA Second Division with CTA Case Nos. 8482, 8513 and 8560 ;there being no objection from counsel for respondent, the Court was constrained to cancel the hearing and reset the pre-trial for CTA Case No. 8560 to June 27, 2013. 119 The parties were then ordered to submit their respective consolidated pre-trial briefs to include CTA Case No. 8611. 120 On June 5, 2013, the CTA Third Division promulgated a Resolution 121 confirming the consolidation of CTA Case No. 8611 with CTA Case No. 8482 .The consolidated cases were set for pre-trial conference on June 27, 2013. 122 On June 21, 2013, petitioner filed an Urgent Motion (To Postpone Pre-trial Conference); 123 which was granted by the Court in its Order 124 dated June 24, 2013 and pre-trial was reset for the last time on August 8, 2013. The presentation of evidence for petitioner set on July 8, 2013 was cancelled. 125 On August 6, 2013 respondent filed his Consolidated Respondent's Pre-trial Brief; 126 while petitioner filed its Consolidated Pre-trial Brief 127 on August 7, 2013. During the hearing held on August 8, 2013, the Court ordered the parties to submit their JSFI, which shall include their respective lists of documentary evidence and witnesses, within a period of twenty (20) days or until August 28, 2013. 128 On August 27, 2013, petitioner filed a Motion for Extension, 129 praying for an additional period of ten (10) days from August 28, 2013 or until September 7, 2013 to submit the Consolidated JSFI. The Court granted the Motion for Extension in its Order 130 dated August 28, 2013. On September 9, 2013, the parties filed their Consolidated JSFI. 131 On September 10, 2013, petitioner filed an Urgent Motion (To Postpone Presentation of Evidence and to Set Additional Commissioner's Hearing) 132 ("Urgent Motion to Postpone"),and a Motion to Commission an Independent Certified Public Accountant 133 ("ICPA"). On September 11, 2013, the Court issued an Order 134 granting the Urgent Motion to Postpone and setting the commissioning of the ICPA on September 16, 2013. The Court issued a Pre-trial Order 135 on September 13, 2013. On September 16, 2013, the Court commissioned Ms. Katherine O. Constantino ("Ms. Constantino") as the ICPA, who then took her oath and undertook to submit the ICPA Report within thirty (30) days or until October 16, 2013. 136 On October 16, 2013, petitioner filed an Urgent Motion (For Extension to File Consolidated Independent Certified Public Accountant's Report), 137 which was granted 138 by the Court. On even date, Ms. Constantino submitted the ICPA Report 139 together with the annexes pertinent to petitioner's claim. Due to the suspension of work in the Court, the initial presentation of evidence for petitioner scheduled on October 14, 2013 was reset to November 11, 2013. 140 On October 31, 2013, petitioner filed an Urgent Motion (for Extension to File Consolidated Independent Certified Public Accountant's Report); 141 and the same was granted by the Court in its Resolution 142 dated November 7, 2013. On November 11, 2013, Ms. Constantino submitted to the Court the Amended ICPA Report; 143 and petitioner filed another Urgent Motion (To Postpone Presentation of Petitioner's Evidence). 144 The initial presentation of evidence for petitioner was reset to December 2, 2013. 145 During the December 2, 2013 hearing, petitioner presented Ms. Neria and Ms. Constantino. 146 Ms. Neria testified, via her Supplemental Sworn Statement, 147 that the case involves petitioner's claim for refund by way of issuance of a TCC for unutilized input VAT for the first to fourth quarters of 2010; and that the claim is based on the excess and unutilized input VAT incurred by petitioner in CY 2010. She also testified that petitioner is an ROHQ and as such, it is only allowed to render qualifying support services to affiliates, subsidiaries or branches; that petitioner's zero-rated sale of services were rendered to its non-registered foreign clients doing business outside the Philippines; and that those services were paid for in US Dollars remitted inwardly to petitioner's US Dollar account. She also stated that petitioner filed an Application for Refund/Tax Credit of Input VAT for the Third and Fourth Quarters of CY 2010 on May 25, 2012 and September 17, 2012, respectively; and that no action was taken by the BIR on their application. Ms. Constantino testified via her Sworn Statement 148 that she was commissioned by the Court as the ICPA for these consolidated cases; that she was tasked to verify and issue a report on the examination, evaluation and substantiation of the amount of input VAT being claimed by petitioner for the first to fourth quarters of CY 2010; and that she submitted to the Court an Amended ICPA Report containing the results of the procedures performed relative to petitioner's claim. Cross-examination of Misses Neria and Constantino, and the presentation of further evidence for petitioner were set on January 13, 2014. 149 However, on January 8, 2014, petitioner filed an Urgent Motion to Reset Hearing (From 13 January 2014 to 27 January 2014). 150 This was denied by the Court during the hearing on January 13, 2014 and the presentation of further evidence for petitioner was deemed waived. 151 Consequently, petitioner was granted a period of ten (10) days from January 13, 2014 or until January 23, 2014 to file its Formal Offer of Evidence ("FOE"),and five (5) days from January 13, 2014 or until January 18, 2014, to file a Motion for Reconsideration of the Order denying its Motion to Reset Hearing. 152 Meanwhile, the initial presentation of evidence for respondent was set on February 24, 2014. 153 cSEDTC On January 17, 2014, petitioner filed a Motion for Reconsideration [Re: Order issued on January 13, 2014 denying petitioner's "Urgent Motion to Reset Hearing (from January 23, 2014 to January 27, 2014)" ("Motion for Reconsideration") and deeming petitioner to have waived its presentation of evidence]. 154 Due to the pendency of the Motion for Reconsideration, the initial presentation of evidence for respondent set on February 24, 2014 was cancelled. 155 On March 4, 2014, the Court denied the Motion for Reconsideration. 156 Thereafter, on March 26, 2014, the Court promulgated a Resolution 157 granting petitioner ten (10) days from notice to file its FOE. On April 11, 2014, petitioner filed by registered mail a Motion for Additional Time to File Formal Offer of Exhibits; 158 which was granted through an Order 159 dated April 24, 2014. On April 24, 2014, petitioner filed its FOE, 160 offering Exhibits "P-1," "P-1a," "P-2," "P-2a," "P-3" to "P-15," "P-16a" to "P-16t," "P-17a" to "P-17o," "P-18," "P-18a," "P-18b," "P-19," "P-19a," "P-19b," "P-20," "P-20a," "P-20b," "P-21," "P-21a," "P-21b," "P-22," "P-22a," "P-22b," "P-23," "P-23a," "P-23b," "P-24," "P-24a," "P-24b," "P-25," "P-25a," "P-25b," "P-26," "P-26a," "P-26b," "P-27," "P-27a," "P-27b," "P-28," "P-28a," "P-28b," "P-29," "P-29a," "P-29b," "P-30," "P-30a," "P-30b," "P-31," "P-31a," "P-31b," "P-32," "P-32a," "P-32b," "P-33," "P-33a," "P-33b," "P-34," "P-34a," "P-34b," "P-35," "P-35a," "P-35b," "P-38," "P-38a" to "P-38d," "P-39," "P-39a" to "P-39e," "P-40," "P-40a," "P-41," "P-41a" to "P-41c," "P-42," "P-43," "P-43a" to "P-43g," "P-44," "P-44a" to "P-44e," "P-45," "P-45a" to "P-45c," "P-46," "P46a" to "P-46e," "P-47," "P-47a," "P-48," "P-48a," "P-49" to "P-52," "P-52a" to "P-52e," "P-53," "P-53a" to "P-53f," "P-55," "P-55a," "P-56," "P-57," "P-57a" to "P-57c," "P-58" "P-59," "P-59a," "P-60," "P-61" to "P-251," "P-61a" to "P-251a," "P-252" to "P-610," "P-252a" to "P-610a," "P-611" to "P-674," "P-611a" to "P-674a," "P-675" to "P-684," "P-675a" to "P-684a," "P-685," "P-686," "P-687" to "P-720," "P-722" to "P-739," "P-722a" to "P-739a," "P-740" to "P-945," "P-761a" to "P-945a," "P-946" to "P-1194," "P-946a" to "P-1194a," "P-1195" to "P-1427," "P-1195a" to "P-1427a," "P-1428" to "P-1688," "P-1428a" to "P-1688a," "P-1680b" to "P-1688b" "P-1689" to "P-1692," "P-1693," "P-1693a," "P-1694," "P-1694a," "P-1700" ("F-1"),"P-1700a" ("F-1-a"),"P-1700b" ("F-1-b"),"P-1701" ("G-1"),"P-1701a" ("G-1-a"),"P-1701b" ("G-1-b"),"P-1702" ("H-1"),"P-1703" ("H-1-c"),"P-1704" ("H-1-d"),"P-1705" ("H-1-e"),"P-1706" ("H-2"),"P-1707" ("H-2-c"),"P-1708" ("H-2-d"),"P-1709" ("H-2-e"),"P-1710" ("I-1-a"),"P-1710a" ("I-1-a-1"),"P-1710b" ("I-1-a-2"),"P-1711" ("I-1-b"),"P-1711a" ("I-1-b-1"),"P-1711b" ("I-1-b-2"),"P-1712" ("I-1-c"),"P-1712a" ("I-1-c-1"),"P-1712b" ("I-1-c-2"),"P-1713" ("I-2-a"),"P-1713" ("1-2-a"),"P-1713a" ("I-2-a-1"),"P-1713b" ("I-2-a-2"),"P-1714" ("I-2-b"),"P-1714a" ("I-2-b-1"),"P-1714b" ("I-2-b-2"),"P-1715b" ("J-1-b"),"P-1715c" ("J-1-c"),"P-1715d" ("J-1-d"),"P-1715e" ("J-1-e"),"P-1715f" ("J-1-f"),"P-1715g" ("J-1-g"),"P-1715h" ("J-1-h"),"P-1715i" ("J-1-i"),"P-1715j" ("J-1-j"),"P-1715k" ("J-1-k"),"P-1715l" ("J-1-l"),"P-1715m" ("J-1-m"),"P-1715n" ("J-1-n"),"P-1715o" ("J-1-o"),"P-1715p" ("J-1-p"),"P-1715q" ("J-1-q"),"P-1715r" ("J-1-r"),"P-1715s" ("J-1-s"),"P-1715t" ("J-1-t"),"P-1715u" ("J-1-u"),"P-1715v" ("J-1-v"),"P-1715w" ("J-1-w"),"P-1715x" ("J-1-x"),"P-1716b" ("J-2-b"),"P-1716c" ("J-2-c"),"P-1716d" ("J-2-d"),"P-1716e" ("J-2-e"),"P-1716f" ("J-2-f"),"P-1716g" ("J-2-g"),"P-1716h" ("J-2-h"),"P-1716i" ("J-2-i"),"P-1716j" ("J-2-j"),"P-1716k" ("J-2-k"),"P-1716l" ("J-2-l"),"P-1716m" ("J-2-m"),"P-1716n" ("J-2-n"),"P-1716o" ("J-2-o"),"P-1716p" ("J-2-p"),"P-1716q" ("J-2-q"),"P-1716r" ("J-2-r"),"P-1716s" ("J-2-s"),"P-1716t" ("J-2-t"),"P-1716u" ("J-2-u"),"P-1716v" ("J-2-v"),"P-1718" ("O-1"),"P-1718a" ("O-1-a"),"P-1719" ("F-2"),"P-1719a" ("F-2-a"),"P-1719b" ("F-2-b"),"P-1720" ("I-2-c"),"P-1720a" ("I-2-c-1"),"P-1720b" ("I-2-c-2"),and "P-1721," as evidence for petitioner, for their respective stated purposes, and as part of the testimonies of the witnesses presented during trial. On July 4, 2014, the Court resolved 161 to admit all of petitioner's exhibits, save for the following: 1. Exhibit "P-23," for failure to correspond to the document marked; 2. Exhibits "P-28," "P-28a," "P-28b," "P-29," "P-29a," "P-29b," "P-42," "P-61" to "P-251," "P-61a" to "P-251a," "P-252" to "P-610," "P-252a" to "P-610a," "P-611" to "P-674," "P-611a" to "P-674a," "P-698" to "P-702," "P-715," "P-1700" ("F-1"),"P-1700a" ("F-1-a"),"P-1700b" ("F-1-b"),"P-1719" ("F-2"),"P-1719a" ("F-2-a"),"P-1719b" ("F-2-b"),and "P-1720" ("I-2-c"),for not being identified during trial; 3. Exhibits "P-1702" ("H-1") and "P-1706" ("H-2") for failure of petitioner to submit the originals for comparison; 4. Exhibits "P-12," "P-32," "P-32a," "P-32b," and "P-59a," for not being found in the records; 5. Exhibits "P-722" to "P-739," "P-722a" to "P-739a," "P-740" to "P-757," and "P-1721," for not being identified during trial and for failure of petitioner to submit the originals for comparison; and 6. Exhibits "P-1720a" ("I-2-c-1") and "P-1720b" ("I-2-c-2") for not being identified during trial and for not being found in the records. On July 25, 2014, petitioner filed, by registered mail, a Motion for Partial Reconsideration (Re: Resolution dated July 4, 2014, with Prayer for Reopening of Trial). 162 SDAaTC On July 31, 2014, petitioner filed an Urgent Motion to Postpone (To Present Respondent's Evidence), 163 which was granted by the Court in Resolution 164 dated August 6, 2014. On October 1, 2014, the Court resolved to grant petitioner's Motion for Partial Reconsideration, thus allowing it to recall its witnesses, Misses Neria and Constantino. 165 After petitioner's Urgent Motion to Reset Hearing (From 6 November 2014 to 8 December 2014) 166 was granted, 167 petitioner filed a Motion to Recall a Witness 168 on February 27, 2015, praying that it be allowed to recall witness Ms. Lourdes Rosario V. Mantaring ("Ms. Mantaring") and to submit a Supplemental FOE. On March 4, 2015, petitioner filed its Compliance, 169 with attached Supplemental Sworn Statement of Ms. Agnes N. Neria (To Questions Propounded by Atty. Juan Miguel D. Tuason) 170 and Supplemental Sworn Statement of Katherine O. Constantino in Lieu of Direct Testimony. 171 On March 9, 2015, petitioner presented its recalled witnesses, Misses Neria and Constantino. 172 Meanwhile, its Motion to Recall Witness was granted, 173 thus, Ms. Mantaring was presented as a witness on May 25, 2015. 174 In her testimony via Sworn Statement of Ms. Lourdes Rosario V. Mantaring, 175 Ms. Mantaring stated that she is the Vice President and General Manager of petitioner since July 2011; that petitioner is an ROHQ and it is licensed to engage in the business of providing qualifying services to its affiliates and related parties in the Asia-Pacific and in other markets; and that in 2010, petitioner rendered services to five (5) non-resident foreign corporations doing business outside the Philippines. Ms. Mantaring explained that petitioner has a long-standing standard procedure in providing its services to its foreign affiliates; that the foreign client engages petitioner for it to handle the clients' business processes; that petitioner and the foreign client will execute two (2) agreements, the Master Services Agreement ("MSA") and the Service Level Agreement ("SLA");that there are instances when more than one SLA will be executed depending on the business process transitioned to petitioner; and that there are currently four (4) SAs entered into by petitioner, i.e. ,with MIL, with JHLIC, with TMLIC and with MIB. She explained further that petitioner bills its clients monthly, based on the number of days that a project team worked on a particular project. On May 29, 2015, petitioner filed a Supplemental Formal Offer of Evidence, 176 offering Exhibits "P-1722," "P-1722a," "P-1723," "P-1723a," "P-23," "P-28," "P-29," "P-29a," "P-29b," "P-32," "P-32a," "P-32b," "P-59," "P-59a," "P-61" to "P-251," "P-61a" to "P-251a," "P-252" to "P-610," "P-252a" to "P-610a," "P-611" to "P-674," "P-611a" to "P-674a," "P-698" to "P-720," "P-722" to "P-739," "P-722a" to "P-739a," "P-740" to "P-791," "P-1700" ("F-1"),"P-1719" ("F-2"),"P-1720" ("I-2-c"),"P-1720a" ("I-2-c-1"),"P-1720b" ("I-2-c-2") and "P-1721," as evidence for petitioner, for their respective stated purposes, and as part of the testimonies of the witnesses presented during trial. On July 6, 2015, the Court resolved 177 to admit all of petitioner's exhibits, save for Exhibits "P-32" and "P-32a" for failure to present the originals for comparison; Exhibit "P-32b" for failure to present the original and for failure to correspond with the description in the Supplemental FOE; Exhibit "P-59a," for failure to submit the duly marked exhibit; and Exhibits "P-64a," "P-141a," "P-145a," "P-182a," "P-227a," "P-239a," "P-596a," "P-597a," "P-629a" to "P-631a," "P-670a," "P-673a," "P-724a," "P-727a," "P-737a," and "P-738a," for not being found in the records. On July 6, 2015, counsel for petitioner manifested that he just received the Resolution dated July 6, 2015, considering that some exhibits were denied, he moved for time to file a motion for reconsideration, thus, the Court gave him five (5) days to file the same. 178 Meanwhile, the initial presentation of evidence for respondent was reset to September 7, 2015. 179 On July 13, 2015, petitioner filed, by registered mail, its Motion (For Reconsideration and to Reopen Trial for Reception of Additional Evidence). 180 The Court resolved to grant 181 the Motion for Reception of Additional Evidence on September 2, 2015, and a commissioner's hearing was set on September 22, 2015. Meanwhile, the initial presentation of evidence for respondent set on September 7, 2015 was cancelled and reset. 182 On September 8, 2015, petitioner filed another Supplemental Formal Offer of Evidence 183 for Exhibit "P-32-b;" which was denied 184 by the Court on December 8, 2015. In the same Resolution, petitioner's Motion for Reconsideration was likewise denied. 185 On December 18, 2015, petitioner filed a Motion (To Admit Marked Exhibits and Supplemental Formal Offer of Exhibits). 186 This was partially granted by the Court in a Resolution 187 dated February 24, 2016, admitting Exhibits "P-32," "P-32a," "P-32b," "P-64a," "P-227," "P-227a," "P-239a," "P-596a," "P-597a," "P-670," "P-670a," "P-727a," and "P-737a," and denying Exhibit "P-141a" for not being found in the records. During the March 7, 2016 hearing, counsel for respondent manifested that there is no report yet from the BIR examiners; hence, the initial presentation of evidence for respondent was reset to May 30, 2016. 188 On May 30, 2016, counsel for respondent made a manifestation that he has no evidence to present; thus, the parties were granted thirty (30) days or until June 29, 2016, to submit their respective memoranda. 189 With the filing of petitioner's Memorandum 190 on June 28, 2016, and the issuance of two (2) Records Verification Reports 191 stating that respondent failed to file his Memorandum, the Court resolved 192 to submit the instant consolidated cases for decision; hence this Decision. acEHCD The Issue 193 WHETHER PETITIONER IS ENTITLED TO ITS CLAIM FOR A REFUND OR ISSUANCE OF A TCC FOR ITS UNUTILIZED OR EXCESS INPUT VAT PAYMENTS FOR THE FIRST TO FOURTH QUARTERS OF 2010. Petitioner's Arguments 194 Petitioner contends that as a duly registered ROHQ, it performs qualifying services to its affiliates, subsidiaries, or branches in the Asia-Pacific Region and in other foreign markets; and that as an ROHQ, it is engaged in transactions subject to VAT zero-rating. Petitioner asserts that its clients are entities duly organized and registered abroad; that it has submitted evidence to prove that the services it rendered, while performed in the Philippines, were for the exclusive benefit of its clients which are non-resident foreign corporations not doing business in the Philippines; that the services rendered to its non-resident foreign corporations are pursuant to SAs entered into with them on various dates; and that its clients pay in US Dollars that are inwardly remitted to petitioner's account. Respondent's Counter-Arguments 195 Anent petitioner's claim for refund or TCC for the first quarter of CY 2010, respondent claims that petitioner failed to show that it filed an application therefor with RDO No. 38. With regard the claim for the second quarter of CY 2010, respondent avers that such has already prescribed; that the judicial claim for refund was filed outside the two (2)-year prescriptive period reckoned from the close of the taxable quarter when the sales were made, pursuant to Section 112 (A) and (C) of the 1997 NIRC ,and the ruling of the Supreme Court in Commissioner of Internal Revenue v. Aichi Forging Company of Asia, Inc. Respondent also avers that petitioner's application for tax refund or TCC is subject to administrative investigation or examination by the BIR; that taxes paid and collected are presumed to have been paid in accordance with law and regulations, hence, not refundable; that it is incumbent upon the taxpayer to prove compliance with the pertinent provisions of the 1997 NIRC ,particularly with Sections 112, 113 and 114 ;and that claims for refund are strictly construed against the taxpayer as it partakes the nature of a tax exemption. The Ruling of the Court The Court has jurisdiction over the instant consolidated cases. The Court must first determine whether it has jurisdiction over the case at bar. Anent the timeliness of filing the administrative and judicial claims for refund, Section 112 (A) of the 1997 NIRC provides as follows: SEC. 112. Refunds or Tax Credits of Input Tax. (A) Zero-Rated or Effectively Zero-Rated Sales. Any VAT-registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales ,except transitional input tax, to the extent that such input tax has not been applied against output tax: Provided, however ,That in the case of zero-rated sales under Section 106(A)(2)(a)(1),(2) and (B) and Section 108 (B)(1) and (2),the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP): Provided, further ,That where the taxpayer is engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt sale of goods of properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales. xxx xxx xxx (C) Period within which Refund or Tax Credit of Input Taxes shall be Made. In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsections (A) and (B) hereof. In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one-hundred-twenty-day period, appeal the decision or the unacted claim with the Court of Tax Appeals. xxx xxx xxx 196 Corollary, Section 4.112-1 (d) of RR No. 16-2005 197 states the following: Sec. 4.112-1. Claims for Refund/Tax Credit Certificate of Input Tax. xxx xxx xxx (d) Period within which refund or tax credit certificate/refund of input taxes shall be made In proper cases, the Commissioner of Internal Revenue shall grant a tax credit certificate/refund for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with subparagraph (a) above. In case of full or partial denial of the claim for tax credit certificate/refund as decided by the Commissioner of Internal Revenue, the taxpayer may appeal to the Court of Tax Appeals (CTA) within thirty (30) days from the receipt of said denial, otherwise the decision shall become final. However, if no action on the claim for tax credit certificate/refund has been taken by the Commissioner of Internal Revenue after the one hundred twenty (120)-day period from the date of submission of the application with complete documents, the taxpayer may appeal to the CTA within 30 days from the lapse of the 120-day period. 198 SDHTEC Based on Section 112 (A) of the 1997 NIRC ,petitioner had two (2) years from the close of the taxable quarters when the sales were made to file its administrative claims. Further, Section 112 (C) of the 1997 NIRC ,in relation to RR No. 16-2005 ,grants petitioner one hundred twenty (120) days, from the date of submission of the complete documents in support of the administrative claim for refund, to file its judicial claim with the CTA. Applying the foregoing, the Court arrived at the following table: QTR. END OF TAXABLE QTR. ADMIN CLAIM DUE DATE ADMIN CLAIM FILED END OF 120 DAYS JUDICIAL CLAIM DUE DATE JUDICIAL CLAIM FILED First March 31, 2010 March 31, 2012 December 6, 2011 199 April 4, 2012 May 4, 2012 April 30, 2012 200 Second June 30, 2010 June 30, 2012 February 17, 2012 201 June 16, 2012 July 16, 2012 July 6, 2012 202 Third September 30, 2010 September 30, 2012 May 25, 2012 203 September 22, 2012 October 22, 2012 October 22, 2012 204 Fourth December 31, 2010 December 31, 2012 September 17, 2012 205 January 15, 2013 February 14, 2013 February 12, 2013 206 There is no merit to respondent's claim that petitioner failed to show that it filed an application for tax refund or TCC with RDO No. 38 for the first quarter of CY 2010. Based on the records, petitioner submitted Exhibit "P-1700," which clearly bears the stamp "Received" by BIR RDO No. 38, with the date December 6, 2011 and a counter-signature under the name of a certain "Aileen Alban." Respondent also posits that the claim for the second quarter of CY 2010 has already prescribed, and that the judicial claim for refund was filed outside the two (2)-year prescriptive period reckoned from the close of the taxable quarter when the sales were made. The Court does not agree. In the recent case of Silicon Philippines, Inc. (Formerly Intel Philippines Manufacturing, Inc.) v. Commissioner of Internal Revenue , 207 the Supreme Court ruled that: 208 Upon the filing of an administrative claim, respondent is given a period of 120 days within which to (1) grant a refund or issue the tax credit certificate for creditable input taxes, or (2) make a full or partial denial of the claim for a tax refund or tax credit. Failure on the part of respondent to act on the application within the 120-day period shall be deemed a denial. Note that the 120-day period begins to run from the date of submission of complete documents supporting the administrative claim. If there is no evidence showing that the taxpayer was required to submit or actually submitted additional documents after the filing of the administrative claim, it is presumed that the complete documents accompanied the claim when it was filed . 209 In the instant case, petitioner had until March 31, 2012, June 30, 2012, September 30, 2012 and December 31, 2012, respectively, within which to file its administrative claims for all the quarters of CY 2010. Therefore, its Applications for Tax Credits/Refunds with the BIR were timely filed on December 6, 2011, February 17, 2012, May 25, 2012, and September 17, 2012, respectively. Anent the timeliness of the judicial claim for refund, records disclose that the BIR did nothing after petitioner filed its application for tax refund or TCC. This was also attested to by Ms. Neria in her sworn statement. In Rohm Apollo Semiconductor Philippines v. Commissioner of Internal Revenue , 210 the Supreme Court reminded taxpayers that when the one hundred twenty (120)-day period lapses and there is inaction on the part of the CIR, they must no longer wait for it to come up with a decision thereafter. The CIR's inaction is the decision itself. It is already a denial of the refund claim. Thus, the taxpayer must file an appeal within thirty (30) days from the lapse of the one hundred twenty (120)-day waiting period, this period is mandatory and jurisdictional. As enunciated by the Supreme Court in Commissioner of Internal Revenue v. San Roque Power Corporation, et al. , 211 strict compliance with the mandatory 120+30-day period is necessary for a claim for tax refund or credit. AScHCD As can be seen from the table above, petitioner had until May 4, 2012, July 16, 2012, October 22, 2012, and February 14, 2013 within which to file its judicial claims for refund. Records show that the instant Petitions for Review were filed on April 30, 2012, July 6, 2012, October 22, 2012 and February 12, 2013, well within the periods provided by law. Finding that both the administrative and judicial claims for refund were filed on time, the Court has jurisdiction over the consolidated cases. Petitioner is entitled to the claim for refund, albeit at a reduced amount. In the application of the foregoing legal provisions, certain requisites have been jurisprudentially developed which a taxpayer-applicant must comply with to successfully obtain a credit or a refund of excess input VAT. The said requisites are: 1. the claim is filed with the CIR within two (2) years after the close of the taxable quarter when the sales were made; 212 2. in case of full or partial denial of the refund claim, or the failure on the part of the CIR to act on the said claim within a period of 120 days, the judicial claim has been filed with the Court, within thirty (30) days from receipt of the decision or after the expiration of the said one hundred and twenty (120)-day period; 213 3. the taxpayer is VAT-registered; 214 4. the taxpayer is engaged in zero-rated or effectively zero-rated sales; 215 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; 216 6. the input taxes are due or paid; 217 7. the input taxes are not transitional input taxes; 218 8. the input taxes claimed are attributable to zero-rated or effectively zero-rated sales; 219 9. 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; 220 and 10. the input taxes have not been applied against output taxes during and in the succeeding quarters. 221 As discussed above, petitioner was able to prove compliance with the first and second requisites. Petitioner also complied with the third requisite by presenting its Certificate of Registration 222 issued by the BIR with Taxpayer's Identification No. 244-027-271-000, indicating that it is subject to VAT. The fourth and fifth requisites require that the taxpayer is engaged in zero-rated or effectively zero-rated sales. Under Sections 106 (A) (2) (a) (1) and (2),106 (B) and 108 (B) (1) and (2) of the 1997 NIRC, as amended by RA No. 9337 ,zero-rated sales transactions should be made in acceptable foreign currency exchange and duly accounted for in accordance with BSP rules and regulations. In its Quarterly VAT Returns for CY 2010, petitioner reflected a total amount of Php1,191,665,714.74 zero-rated sales/receipts, broken down as follows: EXHIBIT PERIOD COVERED (2010) ZERO-RATED SALES/RECEIPTS P-1701 First Quarter Php276,172,047.36 P-18 Second Quarter 301,265,898.75 P-19 Third Quarter 302,356,407.12 P-34 Fourth Quarter 311,871,361.51 TOTAL PHP1,191,665,714.74 Petitioner alleges that the above-stated zero-rated sales or receipts pertains to its sales of services to its foreign affiliates who are all engaged in business conducted outside the Philippines, and which services were paid for in US Dollars inwardly remitted to the Philippines and accounted for in accordance with the rules and regulations of the BSP; hence, qualify for VAT zero-rating under Section 108 (B) (2) 223 of the 1997 NIRC. The Court refers to the case of Commissioner of Internal Revenue v. Burmeister and Wain Scandinavian Contractor Mindanao, Inc. , 224 which provides that in order for the supply of services to be VAT zero-rated under Section 108 (B) (2) of the 1997 NIRC, as amended by RA No. 9337 ,the following requisites must be met: 1. the services by a VAT-registered person must be other than processing, manufacturing or repacking of goods; 2. the payment for such services must be in acceptable foreign currency accounted for in accordance with the BSP rules and regulations; and 3. the recipient of such services is doing business outside the Philippines. Based on the records, petitioner is a multinational company organized and existing under the laws of Barbados and had established an ROHQ in the Philippines, as evidenced by SEC Certificate of Registration 225 and License No. FS200603505. 226 Pursuant to the SAs 227 entered into between petitioner and its clients, petitioner provides its clients with administrative and BPO services, information technology, reports and support services and other services including but not limited to, business processing, data processing, data entry, data imaging and call center services. These services clearly fall within the scope of "services other than processing, manufacturing or repacking of goods," thus proving that petitioner complied with the first requisite. AcICHD Anent the second requisite, Section 113 (A) (2), (B) (1), (2) (c) and (3) of the 1997 NIRC ,as implemented by Section 4.113-1 (A) (2), (B) (1) and (2) (c) of RR No. 16-2005 ,provides that a VAT taxpayer shall, for every lease of goods or properties and for every sale, barter or exchange of services, issue a VAT official receipt which must contain the following information: Section 113(A)(2), (B)(1), (2)(c) and (3) of the 1997 NIRC SEC. 113. Invoicing and Accounting Requirements for VAT-Registered Persons. (A) Invoicing Requirements. A VAT-registered person shall issue: xxx xxx xxx (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. (B) Information Contained in the VAT Invoice or VAT Official Receipt. The following information shall be indicated in the VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person, followed by his Taxpayer's Identification Number (TIN); (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax: Provided, That: xxx xxx xxx (c) If the sale is subject to zero percent (0%) value-added tax, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; xxx xxx xxx (3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; and Section 4.113-1(A)(2), (B)(1) and (2)(c) of RR No. 16-2005 SECTION 4.113-1. Invoicing Requirements. (A) A VAT-registered person shall issue: xxx xxx xxx (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. Only VAT-registered persons are required to print their TIN followed by the word 'VAT' in their invoice or official receipts. Said documents shall be considered as a 'VAT Invoice' or VAT official receipt. All purchases covered by invoices/receipts other than VAT invoice/VAT Official Receipt shall not give rise to any input tax. VAT invoice/official receipt shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of his accounting records. (B) Information contained in VAT invoice or VAT official receipt. The following information shall be indicated in VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person, followed by his TIN; (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the VAT; Provided, That: xxx xxx xxx (c) If the sale is subject to zero percent (0%) VAT, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; Based on the foregoing provisions, the foreign currency remittances referred to under Section 108 (B) (2) of the 1997 NIRC must likewise be supported by VAT zero-rated official receipts. To prove that it rendered services to its foreign affiliates and was paid in US Dollars duly accounted for in accordance with the rules and regulations of the BSP for the four quarters of CY 2010, petitioner presented VAT zero-rated official receipts, 228 VAT zero-rated invoices, 229 Schedule of Sales, 230 Citibank Customer's Advice-Incoming Foreign Payment, 231 and Schedule of Sales and Bank Credit Memo, 232 which were examined by the Court-commissioned ICPA, Ms. Constantino. In the Amended ICPA Report 233 dated November 8, 2013, Ms. Constantino presented the monthly zero-rated sales, as follows: MONTH JHLIC MIL MLIC ELLIOT AND PAGE LTD. MIB MANULIFE SG PTE. LTD. TOTAL January Php24,978,184.21 Php6,732,553.79 Php55,508,948.42 Php- Php624,174.69 Php- Php87,843,861.11 February 25,676,759.59 6,746,528.35 57,654,167.11 - - - 90,077,455.05 March 28,616,551.51 6,771,031.24 59,946,814.76 1,209,036.57 - - 96,543,434.08 April 30,741,712.02 6,950,478.80 59,631,498.48 - 1,220,736.34 - 98,544,425.64 May 29,387,911.01 7,171,597.11 62,704,143.76 - 621,758.22 - 99,885,410.09 June 29,288,711.33 7,255,328.15 63,786,986.47 - 239,961.71 - 100,570,987.65 July 28,984,043.93 7,181,486.58 65,702,863.97 - 569,412.43 - 102,437,806.92 August 38,514,801.65 7,270,174.46 55,497,262.24 - 555,690.66 - 101,837,929.01 September 27,731,821.69 7,233,381.52 62,577,689.36 - 544,323.07 - 98,087,215.64 October 29,063,093.33 7,448,289.70 65,426,221.21 - 533,929.67 - 102,471,533.90 November 29,030,625.80 7,515,236.75 65,912,723.30 - 535,736.11 - 102,994,321.96 December 30,485,628.64 7,714,573.41 68,029,746.28 - 540,523.52 7,827.99 106,778,299.84 TOTAL PHP352,499,844.71 PHP85,990,659.85 PHP742,379,065.34 PHP1,209,036.57 PHP5,986,246.43 PHP7,827.99 PHP1,188,072,680.89 Less: Zero-rated Sales per VAT Return 1st Quarter (Exhibit "P-1701") 2nd Quarter (Exhibit "P-18") 3rd Quarter (Exhibit "P-19") 4th Quarter (Exhibit "P-34") Php276,172,047.36 301,265,898.75 302,356,407.12 311,871,361.51 Php1,191,665,714.74 DIFFERENCE PHP(3,593,033.85) Petitioner alleges that the reason for the variance of the amount per schedule and per VAT returns is the different foreign exchange rates used. 234 In this connection, the Court will use the amount of Php1,188,072,680.89 as the reference for zero-rated sales. The Court agrees with the findings of the ICPA that zero-rated sales amounting to Php15,028,541.19 (Php5,930,234.31 plus Php9,098,306.88) should be disallowed for not being properly supported with official receipts, broken down as follows: DETAILS AMOUNTS Zero-rated sales/receipts properly supported ORs 1st Quarter ("P-60," Annex 135) 2nd Quarter ("P-60," Annex 136) 3rd Quarter ("P-60," Annex 137) 4th Quarter ("P-60," Annex 138) Zero-rated sales/receipts supported by ORs in the name of the Customer's Department 1st Quarter ("P-60," Annex 139) 2nd Quarter ("P-60," Annex 140) 3rd Quarter ("P-60," Annex 141) 4th Quarter ("P-60," Annex 142) Zero-rated sales/receipts without supporting documents 1st Quarter ("P-60," Annex 143) 2nd Quarter ("P-60," Annex 144) 3rd Quarter ("P-60," Annex 145) 4th Quarter ("P-60," Annex 146) Php272,853,594.85 292,607,070.35 298,324,217.18 309,259,257.33 Php1,209,036.57 1,364,893.94 826,174.66 2,530,129.14 Php402,118.82 5,028,859.10 3,212,559.72 454,769.24 Php1,173,044,139.71 Php5,930,234.31 Php9,098,306.88 TOTAL PHP1,188,072,680.89 From the summary of zero-rated sales, 235 it can be seen that for the period January to December 2010, petitioner serviced six (6) customers which are allegedly non-resident foreign companies doing business outside the Philippines. To comply with the third requisite, a "non-resident foreign corporation doing business outside the Philippines" for the purpose of proving zero-rated sales in a claim for refund of input VAT, each entity must be supported, at the very least, by both (1) SEC Certificate of Non-Registration of Corporation/Partnership, and (2) Certificate/Articles of Foreign Incorporation/Association/Registration. A perusal of the documents presented reveals that petitioner presented both documents for JHLIC and MIL only, viz. : ENTITY SEC CERTIFICATE OF NON-REGISTRATION ARTICLES OF INCORPORATION JHLIC P-48 P-56 MIL P-47 P-55 TMLIC None None Elliot and Page Limited None None MIB P-51 None Manulife Singapore Pte. Ltd. P-59 None From the aforementioned, only sales from JHLIC and MIL are considered zero-rated amounting to Php435,358,091.85 (See Annex 1 for details) .However, this amount is further reduced to Php397,157,889.80 because there were out-of-period sales amounting to Php38,200,202.05 incurred in the fourth quarter of the claim period, broken down as follows: ICHDca EXHIBIT CUSTOMER OR NUMBER OR DATE AMOUNT P-1434 Manulife International Ltd. 01988 1/31/11 Php2,050,711.68 P-1435 Manulife International Ltd. 01989 1/31/11 4,090,387.02 P-1436 Manulife International Ltd. 01990 1/31/11 1,573,474.70 P-1650 John Hancock Life Insurance Company 02017 1/31/11 222,088.14 P-1651 John Hancock Life Insurance Company 02018 1/31/11 268,373.74 P-1652 John Hancock Life Insurance Company 02024 1/31/11 116,861.90 P-1653 John Hancock Life Insurance Company 02025 1/31/11 642,232.08 P-1654 John Hancock Life Insurance Company 02031 1/31/11 1,657,258.32 P-1655 John Hancock Life Insurance Company 02032 1/31/11 11,131,569.71 P-1656 John Hancock Life Insurance Company 02033 1/31/11 726,070.18 P-1657 John Hancock Life Insurance Company 02034 1/31/11 105,518.86 P-1658 John Hancock Life Insurance Company 02035 1/31/11 1,091,067.10 P-1659 John Hancock Life Insurance Company 02036 1/31/11 537,643.38 P-1660 John Hancock Life Insurance Company 02037 1/31/11 1,362,263.86 P-1661 John Hancock Life Insurance Company 02038 1/31/11 668,050.05 P-1662 John Hancock Life Insurance Company 02039 1/31/11 390,419.89 P-1663 John Hancock Life Insurance Company 02040 1/31/11 795,345.90 P-1664 John Hancock Life Insurance Company 02046 1/31/11 320,043.07 P-1665 John Hancock Life Insurance Company 02047 1/31/11 260,279.92 P-1666 John Hancock Life Insurance Company 02051 1/31/11 818,168.18 P-1667 John Hancock Life Insurance Company 02058 1/31/11 173,996.68 P-1668 John Hancock Life Insurance Company 02059 1/31/11 569,800.29 P-1669 John Hancock Life Insurance Company 02064 1/31/11 766,222.92 P-1670/P-1671 John Hancock Life Insurance Company 02015/02016 1/31/11 1,250,398.59 P-1672 to P-1674 John Hancock Life Insurance Company 02026 to 02028 1/31/11 4,996,557.74 P-1675/P-1676 John Hancock Life Insurance Co. 02029/02030 1/31/11 1,615,398.15 TOTAL PHP38,200,202.05 Consequently, only the portion of the input VAT claim attributable to the substantiated zero-receipts will be considered for refund using the following rate: CY 2010 VALID ZERO-RATED SALES (A) DECLARED ZERO-RATED SALES (B) RATE (A/BX100) 1st Quarter Php99,521,608.69 Php276,172,047.36 36.04% 2nd Quarter 106,380,886.11 301,265,898.75 35.31% 3rd Quarter 118,456,124.05 302,356,407.12 39.18% 4th Quarter 72,799,270.95 311,871,361.51 23.34% Having found that petitioner had VAT zero-rated receipts for the subject period of claim, the Court shall proceed to determine whether petitioner complied with the sixth to tenth requisites. Petitioner claimed a total amount of Php26,044,804.70 unutilized excess input VAT arising from its amortization of input VAT on purchases of capital goods exceeding Php1 Million, domestic purchases of goods not exceeding Php1 Million, domestic purchases of goods other than capital goods, and domestic purchases of services for the said period, computed as follows: PARTICULARS 1ST QUARTER EXH. "P-1701" 2ND QUARTER EXH. "P-18" 3RD QUARTER EXH. "P-19" 4TH QUARTER EXH. "P-34" Input tax deferred on Cap. Goods exceeding 1M from Prev. Qtr. Php22,991,003.97 Php22,228,368.51 Php21,647,325.88 Php19,641,525.94 Input tax on Cap. Goods exceeding 1M deferred to succeeding period 22,228,368.51 21,627,689.75 19,659,881.44 18,266,771.54 Amortization Php762,635.46 Php600,678.76 Php1,987,444.44 Php1,374,754.40 Input tax on Cap. Goods NOT exceeding 1M 256,679.82 669,390.73 437,696.67 385,766.42 Input tax on Cap. Goods exceeding 1M 1,155,080.26 1,396,537.50 - 611,822.47 Input tax on Goods 197,576.84 137,654.20 130,385.80 160,705.35 Input tax on Services 9,626,027.13 2,279,741.94 1,699,026.49 2,221,431.08 TOTAL Php11,997,999.51 Php5,084,003.13 Php4,254,553.40 Php4,754,479.72 Less: Output Tax 46,231.05 - - - TOTAL Php11,951,768.46 Php5,084,003.13 Php4,254,553.40 Php4,754,479.72 GRAND TOTAL PHP26,044,804.70 In support of its input VAT claim, petitioner submitted various suppliers' invoices and official receipts, 236 which were examined by the ICPA. The below table contains the ICPA's findings, which where then classified by the Court into valid and invalid, viz. : PARTICULARS VALID INVALID REFERENCE EXH. "P-60" Purchases of goods other than capital goods 1. Input tax claimed on purchases of goods which are properly substantiated for VAT purposes: a. Properly supported by TIN VAT invoice Php294,450.38 Annex 4 b. Properly supported by VAT REG TIN invoice 82,121.37 Annex 4 2. Input tax claimed on domestic purchases of goods other than capital goods supported by invoices not dated within the quarter but within the period of claim: a. VAT REG TIN invoice 26,053.00 Annex 4 b. TIN VAT invoice 25,742.12 Annex 4 3. Input tax claimed on domestic purchases of services erroneously classified as purchase of goods properly supported by VAT REG TIN official receipts. 940.68 Annex 4 4. Input tax claimed on domestic purchases of goods other than capital goods supported by TIN VAT invoice with signature on the altered Petitioner's name. 26,785.71 Annex 4 5. Input tax claimed on domestic purchases of goods other than capital goods supported by VAT REG TIN invoices with signature on the altered input VAT amount. 441.96 Annex 4 6. Input tax claimed on domestic purchases of goods other than capital goods supported by VAT registered invoices dated outside the period of claim. Php108,425.53 Annex 4 7. Input tax claimed on domestic purchases of goods other than capital goods supported by TIN VAT invoice with incorrect Petitioner's TIN. 543.86 Annex 4 8. Input tax claimed on domestic purchases of goods other than capital goods supported by VAT registered invoices without Petitioner's TIN indicated therein. 10,367.68 Annex 4 9. Input tax claimed on domestic purchases of goods other than capital goods supported by VAT registered invoices but the amount of VAT is not shown separately in the invoice. 14,078.14 Annex 4 10. Input tax claimed on domestic purchases of goods other than capital goods supported by VAT registered invoices but the TIN is handwritten on a printed invoice. 10,818.57 Annex 4 11. Input tax claimed on domestic purchases of goods other than capital goods supported by Statement of Account. 14,726.30 Annex 4 12. Input tax claimed on domestic purchases of services erroneously classified as purchase of goods supported by collection receipts with comment of "not valid as source of input tax." 7,253.85 Annex 4 13. Input tax claimed on domestic purchases of goods other than capital goods supported by TIN VAT invoices with alteration in the input VAT amount. 1,787.69 Annex 4 14. Input tax claimed on domestic purchases of goods other than capital goods with no supporting documents. 1,785.71 Annex 4 Purchases of Services 1. Input tax claimed on purchases of services which are properly substantiated for VAT purposes: a. Properly supported by VAT REG TIN official receipts Php2,186,299.58 Annex 38 b. Properly supported by TIN VAT official receipts 5,310,641.15 Annex 38 2. Input tax claimed on domestic purchases of services supported by official receipts not dated within the quarter but within the period of claim: a. VAT REG TIN official receipts 103,975.15 Annex 38 b. TIN VAT official receipts 869,590.36 Annex 38 3. Input tax claimed on domestic purchases of services supported by TIN VAT official receipts with signature on the handwritten Petitioner's TIN. 5,321,146.13 Annex 38 4. Input tax claimed on domestic purchases of services supported by VAT registered official receipts with Petitioner's address shown in the related invoice/SOA. 38,418.07 Annex 38 5. Input tax claimed on domestic purchases of goods erroneously classified as purchase of services properly supported by VAT registered sales invoice. 105,214.29 Annex 38 6. Input tax claimed on domestic purchases of services supported by VAT registered official receipts with signature on the altered input VAT amount. 251,980.38 Annex 38 7. Input tax claimed on domestic purchases of services supported by VAT REG TIN official receipts with signature on the altered Petitioner's address. Php37,250.38 Annex 38 8. Input tax claimed on domestic purchases of services supported by official receipts dated outside the period of claim: a. VAT REG TIN official receipts 25,673.23 Annex 38 b. TIN VAT official receipts 68,718.42 Annex 38 9. Input tax claimed on domestic purchases of services supported by VAT REG TIN official receipts without date indicated therein. 29,810.40 Annex 38 10. Input tax claimed on domestic purchases of services supported by VAT REG TIN official receipts with altered date. 2,611.97 Annex 38 11. Input tax claimed on domestic purchases of services supported by VAT REG TIN official receipts with altered Petitioner's name. 4,932.00 Annex 38 12. Input tax claimed on domestic purchases of services supported by VAT REG TIN official receipts with incorrect Petitioner's TIN. 19,484.57 Annex 38 13. Input tax claimed on domestic purchases of services supported by VAT registered official receipts with altered Petitioner's TIN. 20,094.51 Annex 38 14. Input tax claimed on domestic purchases of services supported by VAT REG TIN official receipt with TIN of the Petitioner handwritten on a printed official receipt. 2,720.40 Annex 38 15. Input tax claimed on domestic purchases of services supported by VAT REG TIN official receipts with altered Petitioner's address. 8,541.00 Annex 38 16. Input tax claimed on domestic purchases of services supported by official receipts without BIR authority to print. 8,035.71 Annex 38 17. Input tax claimed on domestic purchases of services supported by VAT registered official receipt but the amount of VAT is not shown separately in the receipt. 90,690.58 Annex 38 18. Input tax claimed on domestic purchases of services supported by tape receipts. 9,668.84 Annex 38 19. Input tax claimed on domestic purchases of services supported by VAT registered official receipts but amount of VAT is different from amount per schedule. 14,787.68 Annex 38 20. Input tax claimed on domestic purchases of services supported by VAT registered official receipts with "VAT Exempt Sale" indicated in the official receipt. 1,013,649.59 Annex 38 21. Input tax claimed on domestic purchases of services supported by collection receipts. 205,385.44 Annex 38 22. Input tax claimed on domestic purchases of services supported by VAT registered official receipts with comment of "not valid as source of input tax." 23,582.15 Annex 38 23. Input tax claimed on domestic purchases of services supported by VAT REG TIN official receipt with alteration in the amounts. 45,740.16 Annex 38 24. Input tax claimed on domestic purchases of services with no supporting documents. 8,960.67 Annex 38 Purchases of capital goods not exceeding 1 million 1. Input tax claimed on purchases of capital goods not exceeding 1 million which are properly substantiated for VAT purposes: a. Properly supported by TIN VAT invoices and official receipts Php1,175,572.44 Annex 97 b. Properly supported by VAT REG TIN invoices and official receipts 325,721.01 Annex 97 2. Input tax claimed on domestic purchases of capital goods not exceeding 1 million supported by TIN VAT invoices not dated within the quarter but within the period of claim. 127,297.73 Annex 97 3. Input tax claimed on domestic purch. of cap. goods not exceeding 1 million supported by VAT REG TIN invoices and ORs with Petitioner's address shown in the related invoice/OR. 92,123.50 Annex 97 4. Input tax claimed on domestic purchases of capital goods not exceeding 1 million supported by VAT REG TIN official receipts with signature on the altered input VAT amount. 18,358.20 Annex 97 5. Input tax claimed on domestic purchases of capital goods not exceeding 1 million supported by TIN VAT invoice but without Petitioner's TIN. Php5,629.28 Annex 97 6. Input tax claimed on domestic purchases of capital goods not exceeding 1 million supported by VAT REG TIN invoice with Petitioner's TIN handwritten on a printed invoice. 2,235.95 Annex 97 7. Input tax claimed on domestic purchases of capital goods not exceeding 1 million supported by photocopied TIN VAT invoice. 2,595.54 Annex 97 Purchases of capital goods exceeding 1 million 1. Input tax claimed on purchase of capital goods exceeding 1 million which are substantiated for VAT purposes: a. Properly supported by VAT REG TIN invoices Php198,717.29 Annex 114 b. Properly supported by TIN VAT invoices 2,008,362.27 Annex 114 2. Input tax claimed on purchases of capital goods exceeding 1 million supported by VAT registered invoices and official receipts not dated within the quarter but within the period of claim. 454,003.53 Annex 114 3. Input tax claimed on purchase of capital goods exceeding 1 million supported by VAT registered invoices and official receipts dated outside the period of claim. Php502,357.14 Annex 114 TOTAL PHP19,043,956.30 PHP2,322,942.94 With regard to the amortization of input VAT on purchases of capital goods exceeding Php1 million for the prior period, petitioner submitted official receipts and invoices 237 supporting prior period purchases, quarterly schedule of amortization for the CY 2010 238 and the lapsing schedule. 239 Pursuant to Section 110 (A) (2) of the 1997 NIRC ,input VAT claims on capital goods purchases attributable to zero-rated sales may be claimed either in full during the month of acquisition, or spread over a period of time, depending on the aggregate acquisition cost of the capital goods in the calendar month. If the aggregate acquisition cost exceeds Php1 Million, the claim for input tax should be spread over sixty (60) months or the estimated useful life of the capital goods, whichever is shorter. An evaluation and study of the schedules presented show that only the amortizations for the CY 2010 were claimed by petitioner. Further review of the ICPA Report, together with the documents supporting the said amounts, reveal that input taxes amounting to Php1,700,873.78, in addition to Php2,341,301.14, should be disallowed for not being properly substantiated by VAT invoices or official receipts as prescribed under Sections 110 (A),113 (A),113 (B),237 ,and 238 of the 1997 NIRC ,in relation to Sections 4.110-1, 4.110-8, and 4.113-1 of RR No. 16-2005, as amended .Below is the breakdown of the amount of Php1,700,873.78, to wit: EXHIBIT REGISTERED NAME OF SUPPLIER INPUT TAX REASON FOR EXCEPTION 1st Quarter P-64 FILES ENTERPRISES MFG CORP. Php576.64 Handwritten VAT amount in a computerized invoice P-270 EDUARDO G. TOLOSA 141,891.42 With noted alteration/addition in the supporting OR without countersignature of the authorized representative of the supplier P-407 PROFILES ASIA PACIFIC, INC. 300.00 VAT not separately indicated P-408 SUPERIOR MAINT. SERVICES, INC. 19,026.21 Incorrect VAT amount P-652 A Great Year Industries Corporation Manila 41,845.06 Out of period invoice Sub-Total 1st Quarter PHP203,639.33 2nd Quarter P-298 PICC Php96,428.57 VAT not separately indicated P-622 TOTAL VENTURES, INC. 2,678.57 Supported by pre-printed TAN VAT invoice then stamped with TIN VAT P-622 TOTAL VENTURES, INC. 78,214.29 Supported by pre-printed TAN VAT invoice then stamped with TIN VAT P-624 HOFFSMAN SYSTEMATIC DESIGNS, INC. 3,126.72 Out of period invoice P-625 HOFFSMAN SYSTEMATIC DESIGNS, INC. 18,760.32 Out of period invoice P-668 A CWC INDUSTRIES, INC. 2,622.60 Out of period invoice P-668 B CWC INDUSTRIES, INC. 15,735.60 Out of period invoice Sub-Total 2nd Quarter PHP217,566.67 3rd Quarter P-314 MAXICARE HEALTHCARE CORP. Php948.20 Over claimed input VAT P-323 FMR CORPORATION 4,607.14 Stamped dated OR while all other details are handwritten. P-323 FMR CORPORATION 1,071.43 Stamped dated OR while all other details are handwritten. P-324 FMR CORPORATION 3,996.43 Stamped dated OR while all other details are handwritten. P-334 STANDARD INSURANCE CO.,INC. 15,768.72 Incomplete OR date (without the "Year") P-335 STANDARD INSURANCE CO.,INC. 18,952.77 Incomplete OR date (without the "Year") P-336 UPS DELBROS INT'L EXPRESS LTD.,INC. 1,402.55 Official receipt not readable P-395 EDUPRO, INC. 9,750.00 With noted alteration/addition in the supporting OR without countersignature of the authorized representative of the supplier P-398 EDUPRO, INC. 14,250.00 With noted alteration/addition in the supporting OR without countersignature of the authorized representative of the supplier P-402 UP NORTH PROPERTY HOLDINGS, INC. 70,552.57 Official Receipt not readable P-403 UP NORTH PROPERTY HOLDINGS, INC. 780,451.66 Official Receipt not readable P-421 AL NAVARRO CASSEROLS FOOD SERVICES 14,625.00 VAT not separately indicated P-422 PICC 540.38 VAT not separately indicated Sub-Total 3rd Quarter PHP936,916.85 4th Quarter P-211 PRO-BAG INDUSTRIES Php26,785.71 Invoice without authorized signature P-212 MFC BISTRO FOODS CORPORATION 441.96 Signature on the alteration in the invoice is not the same with the authorized signature P-372 UP NORTH PROPERTY HOLDINGS, INC. 133,725.83 Official Receipt not readable P-373 SUPERIOR MAINTENANCE SERVICES, INC. 552.33 OR dated outside the period of claim P-404 BO LE ASSOCIATES PHILIPPINES, INC. 6,741.43 With noted alteration/addition in the supporting OR without countersignature of the authorized representative of the supplier P-406 UP NORTH PROPERTY HOLDINGS, INC. 151,708.17 Official Receipt not readable P-640 HOFFSMAN SYSTEMATIC DESIGNS, INC. 22,795.50 Out of period invoice Sub-Total 4th Quarter PHP342,750.93 GRAND TOTAL PHP1,700,873.78 Hence, out of the Php26,044,804.70 input VAT claim on purchases of capital goods not exceeding Php1 million, amortization of input VAT on purchases of capital goods exceeding Php1 million, domestic purchases of goods other than capital goods and domestic purchases of services, only the amount of Php17,343,082.52 represents petitioner's substantiated input VAT. From this amount, only input VAT amounting to Php6,017,575.05 is attributable to petitioner's zero-rated sales, computed as follows: A SEcHI REFERENCE 1ST 2ND 3RD 4TH TOTAL Annex 4-1.a Php66,218.48 Php103,536.06 Php78,439.31 Php46,256.53 Php294,450.38 Annex 4-1.b 22,484.43 20,906.94 15,270.67 23,459.33 82,121.37 Annex 4-2.a - 3,403.41 15,490.96 7,158.63 26,053.00 Annex 4-2.b - 428.57 8,517.02 16,796.53 25,742.12 Annex 4-3 - - 158.40 782.28 940.68 Annex 4-4 - - - 26,785.71 26,785.71 Annex 4-5 - - - 441.96 441.96 Annex 38-1a 419,824.24 823,608.15 380,220.16 562,647.03 2,186,299.58 Annex 38-1b 3,610,911.02 312,454.18 1,177,941.16 209,334.79 5,310,641.15 Annex 38-2a 21,967.13 55,434.06 26,573.96 - 103,975.15 Annex 38-2b - 869,062.36 528.00 - 869,590.36 Annex 38-3 5,320,471.99 - 674.14 - 5,321,146.13 Annex 38-4 20,406.94 9,804.21 8,206.92 - 38,418.07 Annex 38-5 4,500.00 - - 100,714.29 105,214.29 Annex 38-6 - - - 251,980.38 251,980.38 Annex 97-1a 158,101.24 337,871.49 350,926.67 328,673.03 1,175,572.43 Annex 97-1b 83,547.09 182,684.55 4,846.51 54,642.86 325,721.01 Annex 97-2 - 124,847.20 - 2,450.53 127,297.73 Annex 97-3 10,200.00 - 81,923.50 - 92,123.50 Annex 97-4 - 18,358.20 - - 18,358.20 Annex 114-1a - - - 198,717.29 198,717.29 Annex 114-1b 652,723.12 942,533.97 - 413,105.19 2,008,362.28 Annex 114-2 - 454,003.53 - - 454,003.53 TOTAL Php10,391,355.68 Php4,258,936.88 Php2,149,717.38 Php2,243,946.36 Php19,043,956.30 Per Court's Exception 203,639.33 217,566.67 936,916.85 342,750.93 1,700,873.78 Substantiated Input VAT Php10,187,716.35 Php4,041,370.21 Php1,212,800.53 Php1,901,195.43 Php17,343,082.52 Percentage 36.04% 35.31% 39.18% 23.34% TOTAL PHP3,671,652.97 PHP1,427,007.82 PHP475,175.25 PHP443,739.01 PHP6,017,575.05 Even though the claimed input VAT was carried over by petitioner in its succeeding VAT Returns/Declaration, the same remained unutilized until it was deducted as "VAT Refund/TCC Claimed" in its Quarterly VAT Returns 240 or Monthly VAT Declaration, 241 thus, preventing the carry-over or application of the claimed input VAT in the next taxable periods. WHEREFORE ,premises considered, the consolidated Petitions for Review are hereby PARTIALLY GRANTED .Respondent is hereby ORDERED to REFUND or to ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner in the reduced amount of SIX MILLION SEVENTEEN THOUSAND FIVE HUNDRED SEVENTY FIVE AND 5/100 PESOS (Php6,017,575.05) representing excess and unutilized input VAT for the four (4) quarters of CY 2010. SO ORDERED. (SGD.) LOVELL R. BAUTISTA Associate Justice Esperanza R. Fabon-Victorino and Ma. Belen M. Ringpis-Liban, JJ. ,concur. ANNEX 1 Manulife Data Services, Inc. Zero Rated Sales Footnotes 1. Records, CTA Case No. 8482, Vol. 1, Petition for Review ("PFR") ,pp. 6-87, with annexes; Records, CTA Case No. 8513, PFR ,pp. 10-100, with annexes; Records, CTA Case No. 8560, PFR ,pp. 7-84, with annexes; Records, CTA Case No. 8611, PFR ,pp. 8-92, with annexes. 2. "Sec. 7. Jurisdiction. The Court of Tax Appeals shall exercise: (a) Exclusive appellate jurisdiction to review by appeal, as herein provided. xxx xxx xxx (2) Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relations thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue, where the National Internal Revenue Code provides a specific period of action, in which case the inaction shall be deemed a denial; xxx xxx xxx" 3. An Act Creating the Court of Tax Appeals, as Amended. 4. An Act Expanding the Jurisdiction of the Court of Tax Appeals (CTA), Elevating its Rank to the Level of a Collegiate Court with Special Jurisdiction and Enlarging its Membership, Amending for the Purpose Certain Sections of Republic Act No. 1125, as amended, Otherwise Known as the Law Creating the Court of Tax Appeals, and for Other Purposes. 5. An Act Enlarging the Organizational Structure of the Court of Tax Appeals, Amending for the Purpose Certain Sections of the Law Creating the Court of Tax Appeals, and for Other Purposes. 6. Records, CTA Case No. 8482, Vol. 1, PFR, Prayer ,p. 17. 7. Id., CTA Case No. 8513, PFR, Prayer ,p. 21. 8. Records, CTA Case No. 8560, PFR, Prayer ,p. 16. 9. Id., CTA Case No. 8611, PFR, Prayer ,p. 15. 10. Records, CTA Case No. 8482, Vol. 1, PFR, Prayer ,p. 18; Records, CTA Case No. 8513, PFR, Prayer ,pp. 21-22; Records, CTA Case No. 8560, PFR, Prayer ,p. 16; Records, CTA Case No. 8611, PFR, Prayer ,p. 15. 11. Exhibit Folder No. 1, Exhibit "P-38," p. 1. 12. Records, CTA Case No. 8482, Vol. 3, Consolidated Joint Stipulation of Facts and Issues ("JSFI") ,p. 1095. 13. Id. 14. Exhibit Folder No. 1, Exhibit "P-39-a," p. 1. 15. Id., Exhibit "P-39," p. 1. 16. Records, CTA Case No. 8482, Vol. 3, Consolidated JSFI ,p. 1095. 17. Id. at 1095-1096. 18. Exhibit Folder No. 1, Exhibit "P-43," Business Processing Services Agreement ("BPSA") ,pp. 1-16. 19. Id.,Exhibit "P-43-b," BPSA, Article 1 ,p. 1. 20. Id., Exhibit "P-44," JHLIC Services Agreement ("SA") ,pp. 1-15. 21. Id.,Exhibit "P-45-b," Addendum to the SA dated as of October 25, 2007 ,p. 1. 22. Id.,Exhibit "P-44-b," SA, Article 1 ,p. 2. 23. Id.,Exhibit "P-46," Master Administrative Services Agreement ("MASA") ,pp. 1-14. 24. Exhibit Folder No. 1, Exhibit "P-46-b," MASA, Article 1 ,p. 2. 25. Id.,Exhibit "P-52," MIB SA ,pp. 1-16. 26. Id.,Exhibit "P-52," MIB SA, Whereas Clauses 4 and 5 ,p. 1. 27. Id.,Exhibit "P-52-e," Schedule 1, Services and Service Levels, A. Health Services Call Centre ("HSCC") ,p. 1. 28. Exhibit Folder No. 2, Exhibit "P-1701," Quarterly VAT Return for the First Quarter ,pp. 1-2. 29. Id.,Line 29 ,p. 1. 30. Id.,Line 17 ,p. 1. 31. Id.,Exhibit "P-1700," Administrative Claim for Refund for the First Quarter ,pp. 1-3. 32. Id.,Exhibit "P-1700," Administrative Claim for Refund for the First Quarter, Annex, BIR Form No. 1914 ,p. 1. 33. Records, CTA Case No. 8482, Vol. 3, PFR ,p. 2. 34. Id.,Vol. 1, PFR ,pp. 6-87, with annexes. 35. Id.,Vol. 1 ,p. 88. 36. Id. at 90-91. 37. Id. at 93. 38. Id.,Answer ,pp. 94-97. 39. Records, CTA Case No. 8482, Vol. 1 ,p. 98. 40. Id. at 99-101. 41. Id. at 102-121. 42. Id.,Reply (Re: Answer dated 26 July 2012) ,pp. 122-137, with annexes. 43. Id.,Vol. 1 ,p. 139. 44. Exhibit Folder No. 1, Exhibit "P-18," Quarterly VAT Return for the Second Quarter ,pp. 1-2. 45. Id.,Line 29 ,p. 1. 46. Id.,Line 17 ,p. 1. 47. Exhibit Folder No. 2, Exhibit "P-1719," Administrative Claim for Refund for the Second Quarter ,pp. 1-3. 48. Id.,Annex, BIR Form No. 1914 ,p. 1. 49. Records, CTA Case No. 8482, Vol. 3, PFR ,p. 2. 50. Id.,CTA Case No. 8513, PFR ,pp. 10-100, with annexes. 51. Records, CTA Case No. 8513 ,p. 106. 52. Id.,Answer ,pp. 101-105. 53. Id. at 107. 54. Id. at 109-129. 55. Id. at 130-134. 56. Id.,Reply (Re: Answer dated 20 July 2012) ,pp. 137-147. 57. Records, CTA Case No. 8513 ,pp. 149-167. 58. Id. at 168. 59. Records, CTA Case No. 8513 ,p. 168. 60. Id. 61. Id. at 170. 62. Records, CTA Case Nos. 8482 & 8513, Vol. 1, Minutes of Hearing dated September 6, 2012 ,p. 140. 63. Id. 64. Id. 65. Id.,Vol. 1 ,pp. 145-168. 66. Id. at 142-144. 67. Records, CTA Case Nos. 8482 & 8513, Vol. 1, Minutes of Hearing dated October 4, 2012 ,p. 170; Records, CTA Case Nos. 8482 & 8513, Vol. 1 ,p. 175. 68. Records, CTA Case Nos. 8482 & 8513, Vol. 1 ,pp. 176-179. 69. Id. at 181. 70. Id.,Vol. 1, Consolidated JSFI ,pp. 186-190; the parties filed a "Joint Stipulation of Facts and Issue." 71. Id.,Pre-Trial Order ("PTO") ,pp. 197-205. 72. Records, CTA Case Nos. 8482 & 8513, Vol. 1 ,pp. 209-213. 73. Id.,Minutes of Hearing dated November 15, 2012 ,p. 215. 74. Id. 75. Id.,Vol. 1 ,pp. 229-232. 76. Records, CTA Case Nos. 8482 & 8513, Vol. 1, Sworn Statement of Ms. Agnes N. Neria (To Questions Propounded by Atty. Maryl Karen Ang G. Go) ,pp. 233-248; Exhibit Folder No. 2, Exhibit "P-1718," Sworn Statement of Ms. Agnes N. Neria (To Questions Propounded by Atty. Maryl Karen Ang G. Go) ,pp. 1-16. 77. Exhibit Folder No. 2, Exhibit "P-1718," Sworn Statement of Ms. Agnes N. Neria (To Questions Propounded by Atty. Maryl Karen Ang G. Go) ,pp. 1-16. 78. Id. 79. Records, CTA Case Nos. 8482 & 8513, Vol. 1, Minutes of Hearing dated December 12, 2012 ,p. 249. 80. Id.,Vol. 1 ,pp. 250-254, with annex. 81. Id.,Minutes of Hearing dated January 17, 2013 ,p. 255. 82. Id. 83. Id.,Vol. 1 ,pp. 261-264. 84. Records, CTA Case Nos. 8482 & 8513, Vol. 1, Minutes of Hearing dated February 14, 2013 ,p. 266. 85. Exhibit Folder No. 1, Exhibit "P-19," Quarterly VAT Return for the Third Quarter ,pp. 1-2. 86. Id.,Line 29 ,p. 1. 87. Id.,Line 17 ,p. 1. 88. Exhibit Folder No. 2, Exhibit "P-1719," Administrative Claim for Refund for the Third Quarter ,pp. 1-3. 89. Exhibit Folder No. 1, Exhibit "P-1," Administrative Claim for Refund for the Third Quarter, Annex, BIR Form No. 1914 ,p. 1. 90. Records, CTA Case No. 8482, Vol. 3, PFR ,p. 2. 91. Id.,CTA Case No. 8560, PFR ,pp. 7-84, with annexes. 92. Id. at p. 85. 93. Id. at 89-90. 94. Id. at 92. 95. Id.,Answer ,pp. 93-97. 96. Records, CTA Case No. 8560 ,p. 98. 97. Id. at 99-103. 98. Id. at 106-107. 99. Exhibit Folder No. 1, Exhibit "P-21," Quarterly VAT Return for the Fourth Quarter ,pp. 1-2. 100. Id.,Line 29 ,p. 1. 101. Id.,Exhibit "P-20," Amended Quarterly VAT Return for the Fourth Quarter ,pp. 1-2. 102. Id.,Line 29 ,p. 1. 103. Id.,Line 17 ,p. 1. 104. Id.,Exhibit "P-2," Administrative Claim for Refund for the Fourth Quarter ,pp. 1-3. 105. Exhibit Folder No. 1, Exhibit "P-2," Administrative Claim for Refund for the Fourth Quarter, Annex, BIR Form No. 1914 ,p. 1. 106. Records, CTA Case No. 8482, Vol. 3, PFR ,p. 2. 107. Id.,CTA Case No. 8611, PFR ,pp. 8-92, with annexes. 108. Id. at 93. 109. Id. at 94-95. 110. Id. at 97. 111. Id.,Answer ,pp. 98-100. 112. Records, CTA Case No. 8611 ,p. 101. 113. Id. at 102-112, with annex. 114. Records, CTA Case No. 8611 ,pp. 159-162. 115. Id. at 158. 116. Id.,CTA Case Nos. 8482, 8513 & 8560, Vol. 1 ,p. 270. 117. Id. at 278-292. 118. Id. at 293-294. 119. Id.,Minutes of Hearing dated May 9, 2013 ,p. 295. 120. Id. 121. Id.,Vol. 1 ,p. 339. 122. Id. 123. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 1 ,pp. 340-343. 124. Id. at 344. 125. Id. at 347. 126. Id. at 353-355. 127. Id. at 356-381. 128. Id.,Vol. 2, Minutes of hearing dated August 8, 2013 ,p. 1077. 129. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 3 ,pp. 1084-1088. 130. Id. at 1089. 131. Id.,Consolidated JSFI ,pp. 1095-1101. 132. Id.,Vol. 3 ,pp. 1102-1106. 133. Id. at 1108-1123, with annex. 134. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 3 ,p. 1124. 135. Id.,PTO ,pp. 1127-1137. 136. Id.,Vol. 3, Minutes of Hearing dated September 16, 2013 ,pp. 1138-1139. 137. Id.,Vol. 3 ,pp. 1154-1158. 138. Id. at 1337. 139. Id.,ICPA Report on the Results of the Procedures Performed Relative to the Claim for Refund/Tax Credit Representing Excess Input Value Added Tax (VAT) for the Period January 2, 2010 to December 31, 2010 ("ICPA Report") ,pp. 1160-1336. 140. Id.,Vol. 3 ,p. 1339. 141. Id. at 1340-1344. 142. Id. at 1446-1447. 143. Id.,Exhibit "P-60," Amended ICPA Report on the Results of the Procedures Performed Relative to the Claim for Refund/Tax Credit Representing Excess Input Value Added Tax (VAT) for the Period January 2, 2010 to December 31, 2010 ,pp. 1449-1712; Box of Evidence 1, Exhibit "P-60," Amended ICPA Report on the Results of the Procedures Performed Relative to the Claim for Refund/Tax Credit Representing Excess Input Value Added Tax (VAT) for the Period January 2, 2010 to December 31, 2010 ,pp. 1-28, with annexes. 144. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 3 ,pp. 1715-1719. 145. Id.,Minutes of Hearing dated November 11, 2013 ,p. 1713. 146. Id.,Vol. 4, Minutes of Hearing dated December 2, 2013 ,p. 2403. 147. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vols. 1 & 2, Supplemental Sworn Statement of Ms. Agnes N. Neria ,pp. 495-523; Exhibit Folder No. 2, Exhibit "P-1693," Supplemental Sworn Statement of Ms. Agnes N. Neria ,pp. 1-26. 148. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 4, Sworn Statement of Katherine O. Constantino in Lieu of Direct Testimony ,pp. 2378-2402; Exhibit Folder No. 2, Exhibit "P-1694," Sworn Statement of Katherine O. Constantino in Lieu of Direct Testimony ,pp. 1-24. 149. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 4, Minutes of Hearing dated December 2, 2013 ,p. 2403. 150. Id.,Vol. 5 ,pp. 2405-2412, with annexes. 151. Id.,Minutes of Hearing dated January 13, 2014 ,p. 2414. 152. Id. 153. Id. 154. Id. at 2415-2423. 155. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5 ,p. 2432. 156. Id. at 2434-2437. 157. Id. at 2439. 158. Id. at 2440-2443. 159. Id. at 2444. 160. Id.,Formal Offer of Exhibits ("FOE") ,pp. 2445-2476. 161. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5 ,pp. 2479-2481. 162. Id. at 2499-2506. 163. Id. at 2485-2497, with annexes. 164. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5 ,p. 2508. 165. Id. at 2511-2514. 166. Id. at 2515-2519. 167. Id. at 2521. 168. Id. at 2536-2539. 169. Id. at 2542-2544. 170. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, Exhibit "P-1722," Supplemental Sworn Statement of Ms. Agnes N. Neria (To Questions Propounded by Atty. Juan Miguel D. Tuason) ,pp. 2545-2551. 171. Id.,Exhibit "P-1723," Supplemental Sworn Statement of Katherine O. Constantino in Lieu of Direct Testimony ,pp. 2552-2556. 172. Id.,Minutes of Hearing dated March 9, 2015 ,p. 2508. 173. Id.,Vol. 5 ,pp. 2574-2575. 174. Id.,Minutes of Hearing dated May 25, 2015 ,p. 2580. 175. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 1, Sworn Statement of Ms. Lourdes Rosario V. Mantaring ,pp. 384-402; Exhibit Folder No. 2, Exhibit "P-1721," Sworn Statement of Ms. Lourdes Rosario V. Mantaring ,pp. 1-18. 176. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5 ,pp. 2581-2591. 177. Id. at 2643-2644. 178. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, Minutes of Hearing dated July 6, 2015 ,p. 2645. 179. Id. 180. Id. at 2668-2683, with annexes. 181. Id. at 2887-2889. 182. Id. at 2887-2889. 183. Id. at 2690-2695. 184. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5 ,pp. 2708-2709. 185. Id. 186. Id. at 2710-2719. 187. Id. at 2748-2750. 188. Id.,Minutes of Hearing dated March 7, 2016 ,p. 2751. 189. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, Minutes of Hearing dated May 30, 2016 ,p. 2752. 190. Id.,Memorandum ,pp. 2758-2777. 191. Id.,Vol. 5 ,pp. 2778-2779. 192. Id. at 2781. 193. Id.,Vol. 3, PTO ,p. 1130. 194. Id.,Vol. 5, Memorandum ,pp. 2767-2775. 195. Records, CTA Case No. 8482, Answer ,p. 95; Records, CTA Case No. 8513, Answer ,pp. 102-104; Records, CTA Case No. 8560, Answer ,pp. 93-96; Records, CTA Case No. 8611, Answer ,pp. 98-99. 196. Underscoring ours. 197. Consolidated Value-Added Tax Regulations of 2005 ,effective November 1, 2005. 198. Underscoring ours. 199. Exhibit Folder No. 2, Exhibit "P-1700," Administrative Claim for Refund for the First Quarter ,pp. 1-3. 200. Records, CTA Case No. 8482, Vol. 1, PFR ,pp. 6-87, with annexes. 201. Exhibit Folder No. 2, Exhibit "P-1719," Administrative Claim for Refund for the Second Quarter ,pp. 1-3. 202. Records, CTA Case No. 8513, PFR ,pp. 10-100, with annexes. 203. Exhibit Folder No. 2, Exhibit "P-1719," Administrative Claim for Refund for the Third Quarter ,pp. 1-3. 204. Records, CTA Case No. 8560, PFR ,pp. 7-84, with annexes. 205. Exhibit Folder No. 1, Exhibit "P-2," Administrative Claim for Refund for the Fourth Quarter ,pp. 1-3. 206. Records, CTA Case No. 8611, PFR ,pp. 8-92, with annexes. 207. G.R. No. 182737, March 2, 2016. 208. Underscoring ours. 209. Underscoring ours. 210. G.R. No. 168950, January 14, 2015. 211. G.R. Nos. 187485, 196113, and 197156, October 8, 2013, 690 SCRA 336. 212. Intel Technology Philippines, Inc. v. Commissioner of Internal Revenue , G.R. No. 166732, April 27, 2007, 522 SCRA 657; San Roque Power Corporation v. Commissioner of Internal Revenue , G.R. No. 180345, November 25, 2009, 605 SCRA 536; AT&T Communications Services Philippines, Inc. v. Commissioner of Internal Revenue ,G.R. No. 182364, August 3, 2010, 626 SCRA 567. 213. Rohm Apollo Semiconductor Philippines v. Commissioner of Internal Revenue ,G.R. No. 168950, January 14, 2015. 214. Supra note 212. 215. Id. 216. Id. 217. Id. 218. Id. 219. Id. 220. Supra note 212. 221. Id. 222. Exhibit Folder No. 1, Exhibit "P-39," p. 1. 223. "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) xxx; (2) Services other than those mentioned in the preceding paragraph rendered to a person engaged in business conducted outside the Philippines or to a nonresident person not engaged in business who is outside the Philippines when the services are performed, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP)." 224. G.R. No. 153205, January 22, 2007, 512 SCRA 124. 225. Exhibit Folder No. 1, Exhibit "P-38," p. 1. 226. Id.,Exhibit "P-38-a," p. 1. 227. Id.,Exhibits "P-43," "P-44," "P-45," "P-46," & "P-52," pp. 1-11, 1-15, 1, 1-14, 1-16. 228. Boxes of Evidence 1 and 2, Exhibits "P-722," to "P-1688." 229. Id.,Exhibits "P-722-A," to "P-1688-B." 230. Exhibit Folder No. 1, Exhibits "P-10" to "P-15," pp. 1-18. 231. Exhibit Folder No. 1, Exhibits "P-16-a" to "P-17-o," pp. 1-35; Exhibit Folder No. 2, Exhibits "P-1715-b" to "P-1716-v," pp. 1-44. 232. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, "P-1720," p. 2637; Exhibit Folder No. 2, Exhibits "P-1710" to "P-1714," "P-1720" pp. 1-5, 1. 233. Box of Evidence 1, Exhibit "P-60," Amended ICPA Report on the Results of the Procedures Performed Relative to the Claim for Refund/Tax Credit Representing Excess Input Value Added Tax (VAT) for the Period January 2, 2010 to December 31, 2010, Annex 3. 234. Box of Evidence 1, Exhibit "P-60," Amended ICPA Report on the Results of the Procedures Performed Relative to the Claim for Refund/Tax Credit Representing Excess Input Value Added Tax (VAT) for the Period January 2, 2010 to December 31, 2010, Exhibit "P-60," par. 4 ,p. 7. 235. Id.,Annex 3 ,pp. 1-5. 236. Box of Evidence 1, Exhibits "P-61" to "P-684a." 237. Box of Evidence 1, Exhibits "P-722" to "P-739a." 238. Exhibit Folder No. 2, Exhibit "P-1701," Quarterly VAT Return for the First Quarter, Annexes ,pp. 1-4; Exhibit Folder No. 1, Exhibit "P-18," Quarterly VAT Return for the Second Quarter, Annexes ,pp. 1-4; Exhibit Folder No. 1, Exhibit "P-19," Quarterly VAT Return for the Third Quarter, Annexes ,pp. 1-3. 239. Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, Exhibit "P-702," pp. 2601-2615. 240. Exhibit Folder No. 1, Exhibit "P-26," Line 23D for the First Quarter of 2010 ,p. 1; Exhibit Folder No. 1, Exhibit "P-30," Line 23D for the Third Quarter of 2010 ,p. 1. 241. Exhibit Folder No. 1, Exhibit "P-28," Line 20D for the Second Quarter of 2010 ,p. 1; Exhibit Folder No. 1, Exhibit "P-35," Line 20D for the Fourth Quarter of 2010 ,p. 1.