TAGANITO MINING CORPORATION v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY SPECIAL SECOND DIVISION TAGANITO MINING CTA Case No. 9 3 69 CORPORATION, Members: Petitioner, CASTANEDA, JR., Chairperson, -versus- MANAHAN, JJ. COMMISSIONER OF Promulgated: INTERNAL REVENUE, DEC 0 6 2018 L Respondent. }7:t:n , ... � )(- - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - )C DECISION MANAHAN, J.: This involves a Petition for Review filed on May 27, 2016 by Taganito Mining Corporation as petitioner, against the Commissioner of Internal Revenue, as respondent, before the Court in Division. Petitioner seeks the refund of its alleged e)Ccessjunutilized input VAT for t~able year 2014. PARTIES Petitioner is a corporation duly organized and e)ClStlng under and by virtue of the laws of the Philippines with former principal office at 4 th Floor, NAC Center (formerly Solid Mills/ BMMC Building), Dela Rosa Street, Legaspi Village, Makati City and current business address at 29/F NAC Tower, 32nd Street, Bonifacio Global City, Taguig/Makati City. 1 1 Stipulated Facts, Joint Stipulation of Facts and Issues (JSFI), Paragraph (par.) 1, Court docket, p. 109. ~

DECISION CTA Case No. 9369 Page 2 of60 Respondent is the duly appointed Commissioner of the Bureau of Internal Revenue (BIR), vested with authority to exercise the functions of said office, including inter alia, the power to decide refunds of internal revenue taxes, fees or other charges, penalties imposed in relation thereto, or other matters arising under the 1997 National Internal Revenue Code (NIRC) or other laws administered by the BIR under Section 4 of the Tax Code, and holding office at the BIR National Office Building, Diliman, Quezon City, Metro Manila, where he may be served with summons and other legal processes of the Court.2 Petitioner is duly registered with the Securities and Exchange Commission (SEC) with Certificate of Registration No. 138682 issued on March 4, 1987 with the following primary purpose:3 "To carry on the business, for itself and for others, of mining lode and/ or placer mining, developing, exploiting, extracting, milling, concentrating, converting, smelting, treating, refining, preparing for market, manufacturing, buying, selling, exchanging, shipping, transporting, and otherwise producing and dealing in nickel, chromite, cobalt, gold, silver, copper, lead, zinc, brass, iron, steel, limestone, and all kinds of ores, metals and their by-products and which by-products thereof of every kind and description and by whatsoever process the same can be or may hereafter be produced, and generally and without limit as to amount, to buy, sell, locate, exchange, lease, acquire and deal in lands, mines, and mineral rights and claims and to conduct all business appertaining thereto, to purchase, locate, lease or otherwise acquire, mining claims and rights, timber rights, water rights, concessions and mines, buildings, dwellings, plants machinery, spare parts, tools and other properties whatsoever which this corporation may from time to time find to be to its advantage, to mine lands, and to explore, work, exercise, develop or turn to account the same, and to acquire, develop and utilize water rights in such manner as may be authorized or permitted by law; to purchase, hire, make, construct or otherwise, acquire, provide, maintain, equip, alter, erect, improve, repair, manage, work and operate private roads, barges, vessels, aircraft and vehicles, private telegraph and telephone lines, and other communication media, as may be needed by the corporation for its own purpose, and to purchase, import, construct, 2 JSFI, Par. 2, Court docket, p. 110. 3 JSFI, docket, Par. 3, pp. 110-111.~

DECISION CTA Case No. 9369 Page 3 of60 machine, fabricate, or otherwise acquire, and maintain and operate bridges, piers, wharves, wells, reservoirs, plumes, watercourses, waterworks, aqueducts, shafts, tunnels, furnaces, coke ovens, crushing works, gasworks, electric lights and power plants and compressed air plants, chemical works of all kinds, concentrators, smelters, smelting plants, and refineries, matting plants, warehouses, workshops, factories, dwelling houses, stores, hotels or other buildings, engines, machinery, spare parts, tools, implements and other works, conveniences, and properties of any description in connection with or which may be directly or indirectly conducive to any of the objects of the corporation, and to contribute to, subsidize or otherwise aid or take part in any operations." Petitioner is also a VAT-registered entity with updated Certificate of Registration (BIR Form No. 2303) No. OCN 8RC0000685884E duly issued by respondent.4 In addition, it is registered with the Board of Investments (BOI) with BOI Certificate of Registration No. EP 88-306 dated April 14, 1988.5 On December 29, 2015, petitioner filed with respondent, through respondent's Excise Taxpayers' Assistance Division under the Large Taxpayers Division, a claim for refund of excess input taxes paid on its domestic purchases and importation of taxable goods and services and importation of goods including capital goods.6 On June 7, 2013, respondent informed the Commissioner of the Bureau of Customs (BOC) that the former has approved in favor of petitioner VAT credit in the amount of P20,817,854.93 representing input tax amortized in the calendar year 2014 on importations for the period from January 1, 2010 to December 31, 2014, attributable to zero- rated export sales of nickel ore sources.7 On the other hand, the BOC stated that it has not issued any refund on VAT in favor of petitioner for the calendar years 2009 to 2014.8 4 JSFI, paragraph 4, Court docket, p. 111. SJSFI, paragraph 5, Court docket, p. 111. 6JSFI, docket, paragraph 6, p. 111; Exhibits "P-1", "P-1-A", "P-1-B", "P-1-C", and "P-2" Court docket, pp. 198-205. 7 Exhibit "P-7", Court docket, p. 212. 8 Exhibit "P-4", Court docket, p. 207.~

DECISION CTA Case No. 9369 Page 4 of60 Hence, this petition. Respondent filed a Motion to Admit Attached Answer9, with attached Answer 10 , on July 26, 2016, which the Court granted on September 2, 201611. A Notice of Pre-Trial Conference 12 was issued by this Court on October 12, 2016, setting the case for pre-trial conference on November 10, 2016. Accordingly, petitioner's Pre-Trial Brief13 was filed on October 28, 2016, while the Pre- Trial Brief for the Respondent 14 was filed on November 3, 2016. Pre-trial conference ensued. The parties submitted their Joint Stipulation of Facts and Issues 15 (JSFI) on November 21, 2016. On November 28, 2016, the Court issued a Pre-Trial Order 16 adopting the parties' JSFI, and the pre-trial was deemed terminated. Upon petitioner's motion17, the Court commissioned Mr. George V. Villaruz, a partner in the auditing firm of Villaruz Villaruz & Co., CPAs, as Independent Certified Public Accountant (ICPA).18 During trial, petitioner presented as its witnesses (1) Mr. George V. Villaruz19, the ICPA; and (2) Ms. Lennie A. Terre2o, petitioner's Vice-President for Finance. Petitioner filed its Formal Offer of Evidence21 on July 26, 2017. In the Resolution dated September 4, 201722 , the Court admitted all of petitioner's evidence. 9 Court Docket, pp. 51-55. wId., pp. 57-68. 11 Resolution dated September 2, 2016, Court docket, p. 75. 12 Court Docket, pp. 77-78. 13 Id., pp. 79-87. 14 Id., pp. 88-91. 1s Id., pp. 109-114. 16 Id., pp. 119-123. 17 Motion to Commission an Independent CPA, Court docket, pp. 99-101. 18 Minutes of the Hearing dated January 23, 2017, Court docket, p. 130. 19 Exhibits "P-11" and "P-11-D", docket, pp. 135-141 and 181-184, respectively; Minutes of the Hearing dated March 29, 2017 and dated July 17, 2017,Court docket, pp. 155 and 185, respectively. 20 Exhibit "P-10", docket, pp. 144-153; Minutes of the Hearing dated March 29, 2017, Court docket, p. 155. 21 Court docket, pp. 187-197. ~

DECISION CTA Case No. 9369 Page 5 of60 On the other hand, respondent manifested that there is no report of investigation in this case, and hence, he is submitting the case for the decision of the Court.23 The case was submitted for decision on December 12, 2017 24 , considering petitioner's Memorandum 2s filed on November 8, 2017, and respondent's Memorandum26 filed on November 29, 2017. ISSUE The parties jointly stipulated that the sole issue to be resolved in this case is as follows:27 Whether or not petitioner is entitled to the refund of its alleged excess input VAT in the amount of Twenty Eight Million Nine Hundred Twenty Six Thousand Eight Hundred Thirty Seven Pesos (P28,926,837. 00). Petitioner's Arguments Petitioner began its arguments by submitting the timeliness of its claim for refund both in the administrative and judicial levels. It maintains that pursuant to Sections 112 and 229 of the 1997 NIRC and existing jurisprudence, the claim for refund lodged with the Bureau of Internal Revenue (BIR) and its subsequent appeal to the Court of Tax Appeals (CTA) are both within the prescriptive period. As to the substantive aspect of the claim for refund, its entitlement to the grant of the entire amount is anchored on Section 106 (A) (2) (a) of the 1997 NIRC, which specifically states that export sales by a VAT-registered entity are subject to value-added tax (VAT) at zero percent. Being registered with 22 Id., pp. 388-389. 23 Minutes of the Hearing dated October 9, 2017, Court docket, p. 393. 24 Resolution dated December 12, 2017, Court docket, p. 426. 25 Court docket, pp. 400-416. 26 Id., pp. 418-424. ~ 27 JSFI, Court docket, p. 111. ~

DECISION CTA Case No. 9369 Page 6 of60 the Board of Investments (BOI) as one primarily engaged in the business of exploring and eventually exporting nickel silicate ores and chromite ores, petitioner claims that it is covered by the said Section 106 (A) (2) (a) of the 1997 NIRC. Petitioner also maintains that all of its generated and recorded zero-rated sales from January 1, 2014 to December 31, 2014 were all paid for in acceptable foreign currency, specifically in US Dollars which were inwardly remitted to the Philippines and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP) pursuant to Section 106 (a) (2) (a) (1) of the 1997 NIRC, as amended. Overall, petitioner anchored its rationale for entitlement to the full amount of its claim for refund on the following propositions, thus : 1. The VAT input taxes, subject of the claim, were paid for in the course of its trade or business and are directly attributable to its zero-rated export sales. 2. The excess input taxes being claimed for refund/tax credit have not been applied against or are undiminished by any VAT output taxes for the same or subsequent periods. 3. The evidence shows that the input taxes being claimed for refund have not been carried forward to the succeeding quarter or quarters as these were already deducted from its accumulated input taxes upon the filing of its application with the BIR. 4. All the VAT sales and purchases were duly recorded in its books of accounts and duly indicated its VAT sales and purchases in its monthly VAT declarations and quarterly VAT returns. 5. The VAT input taxes are duly supported by VAT- registered invoices and/ or official receipts issued by its suppliers of goods and services as well as by official receipts issued by the Bureau of Customs (BOC). Respondent's Counter-Arguments In his Answer filed on July 26, 2016, respondent interposed the following Special and Affirmative Defenses, to wit: "SPECIAL AND AFFIRMATIVE DEFENSES~

DECISION CTA Case No. 9369 Page 7 of60 On the basis of the foregoing allegations and in further support of the Specific Denials herein set forth, respondent respectfully alleges as her defense that: It is incumbent upon petitioner to prove that it is entitled to the refund sought because a claim for refund is not ipso facto granted upon filing of the claim. 4. As a matter of course, a claim for refund is subject to investigation as it involves removal of accrued revenue from the coffers of the Government. It has been held by the Supreme Court that a claim for refund is not ipso facto granted because the Commissioner of Internal Revenue still has to investigate and ascertain the veracity of the claim. 5. Respondent submits that petitioner failed to demonstrate that the amount of P28,926,837.00 which is the subject of the case at bar was erroneously or illegally collected. Taxes remitted to the BIR are presumed to have been made in the regular course of business and in accordance with provisions of law. 6. Before the instant Petition for Review should be given due course, petitioner should prove that it submitted the relevant pieces of documents to substantiate its claim and had observed the procedure laid down in Section 112(C) of the National Internal Revenue Code (NIRC) of 1997, as amended, which reads: XXX XXX XXX 7. 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. 8. Clearly, the law requires the submission of complete documents in support of the application filed with the Bureau of Internal Revenue before the 120-day audit period shall apply, and before the taxpayer could avail of judicial remedies as provided for in the law, petitioner's failure to comply with the duly mandated legal requirements in such claims for refund/tax credit warranted the denial by inaction of the administrative claim. ~

DECISION CTA Case No. 9369 Page 8 of60 9. Furthermore, said Section 112 (C) clearly states that there should be a prior administrative claim filed with respondent before judicial resort can be had in the Court of Tax Appeals, where relevant documents must be submitted by the taxpayer to support its claim for refund. Failure on the part of the taxpayer to file the administrative claim and submit relevant documents on administrative level, makes the administrative claim for tax refund or credit pro-forma and shall be construed as if no administrative claim was filed at all. 10. In cases such as this, before judicial inquiry into the issue of whether taxpayers, in general, are entitled to a refund/tax credit under substantive law may be considered, they have an initial burden to discharge. They must prove that they complied with all the administrative requirements continuing up to judicial review. In other words, before trial de novo proceeds and disposes of the issue of refund entitlement under substantive law, it must first be proved that there was procedural compliance in pursuing the administrative claim leading to the appellate proceedings. As stated by the Honorable Supreme Court: 'Petitioner's contention that non-compliance with Revenue Regulations 3-88 could not have adversely affected its case in the CTA indicates a failure on its part to appreciate the nature of the proceedings in that court. First, a Judicial claim for refund or tax credit in the CTA is by no means an original action but rather an appeal by way of petition for review of a previous, unsuccessful administrative claim. Therefore, as in every appeal or petition for review, a petitioner has to convince the appellate court that the quasi-Judicial agency a quo did not have any reason to deny its claims. In this case, it was necessary for petitioner to show the CTA not only that it was entitled under substantive law to the grant of its claims but also that it satisfied all the documentary and evidentiary requirements for an administrative claim for refund or tax credit. Second, cases filed in the CTA are litigated de novo. Thus, a petitioner should prove every minute aspect of its case by presenting, formally offering and submitting its evidence to the CTA. Since it is crucial for a petitioner in a judicial claim for refund or tax credit to show that its administrative claim should have been granted in the first place, part of the evidence to be submitted to the CTA must necessarily include whatever is required for the successful prosecution of an administrative claim.' (Emphasis and underscoring supplied)~

DECISION CTA Case No. 9369 Page 9 of60 11. As can be seen, proper substantiation begins in the administrative level. So if the denial (by inaction) of the administrative claim is because of non-compliance with legal procedural requirements, then true to its appellate nature, the Honorable Court must sustain the decision of the BIR since it suffers no infirmity. 12. The purpose of requiring the filing of the administrative claim for refund/tax credit and submission of supporting documents relevant to a claim for tax refund/ credit is to give the administrative agency concerned the opportunity to ascertain the veracity and validity of the claim. This is the very essence, the very substance of the doctrine of exhaustion of administrative remedies. The doctrine rests upon the presumption that the administrative body, board, or officer, if given the chance to correct its mistake or error, may amend its decision on a given matter and decide it properly. Thus, non compliance with a condition precedent renders the Petition for Review dismissible. 13. The doctrine of exhaustion of administrative remedies ensures an orderly procedure which favors a preliminary sifting process, particularly with respect to matters peculiarly within the competence of the administrative agency. After this sifting process comes the availability of judicial review of administrative decisions. Judicial review of administrative decisions entails the Court to examine the method in which the decision was arrived at, and finding no error, lets the administrative decision stand. This is precisely because there are matters peculiarly within the competence of the administrative agency. 14. The above-mentioned periods are clearly given for strict compliance as a prerequisite before seeking redress in a competent court. Such statutory periods are set to prevent delays as well as enhance the orderly and speedy discharge of judicial functions (Agpalo, Statutory Construction, Third Edition 1995, p. 266). For this reason, the courts construe these provisions of statutes as mandatory (Ibid., citing Alvero vs. De la Rosa, 76 Phil. 428, 434). 15. Settled is the rule that the non-exhaustion of administrative remedies is jurisdictional. In this case the right of petitioner to apply or request for refund has prescribed and it has no cause of action to ventilate in court. The case is susceptible of dismissal for failure to state a cause of action. Petitioner has only until March 31, 2011 within which to request or demand for refund/tax credit. Considering that as of even date, petitioner has not yet made a written request for refund before the office of the respondent, it has no more right to assert to, more so with this Honorable Court, because there is nothing to appeal.~

DECISION CTA Case No. 9369 Page 10 of60 There was no decision, neither, inaction because in the first place there was no written claim for refund ever made, which categorically demanded for reimbursement. 16. The implementing rule for these complete documents required by law is RMO No. 53-98. Annex B-1 of said RMO lists all the required documents as follows: XXX XXX XXX As stated above, the first documentary requirement is that provided in Annex B of the same RMO. Annex B provides for more requirements as follows: XXX XXX XXX 17. In the case entitled Commissioner of Internal Revenue vs. Rosemarie Acosta, the Supreme Court had occasion to say: XXX XXX XXX 18. In the present case, petitioner failed to submit all the necessary documents needed for the application of its VAT refund. 19. The purpose of requiring the filing of the administrative claim for refund/tax credit and submission of supporting documents relevant to a claim for tax refund/ credit is to give the administrative agency concerned the opportunity to ascertain the veracity and validity of the claim. This is the very essence, the very substance of the doctrine of exhaustion of administrative remedies. The doctrine rests upon the presumption that the administrative body, board, or officer, if given the chance to correct its mistake or error, may amend its decision on a given matter and decide it properly. Thus, non-compliance with a condition precedent renders the Petition for Review dismissi ble. 20. The failure of petitioner to substantiate its claim for refund before the office of the respondent and the filing of the instant petition before this Honorable Court deprived respondent of the opportunity to fully exercise her function to decide claims for refund, correct, modify or affirm the findings of her subordinates. It must be remembered, that in the case of Jariol vs. Commission on Elections, the Supreme Court reasoned that a party must not merely initiate the prescribed administrative procedure to obtain relief, the party concerned must pursue this relief until the~

DECISION CTA Case No. 9369 Page II of60 appropriate conclusion takes place before seeking judicial intervention in order to give the administrative body an opportunity to decide the matter by itself correctly and prevent unnecessary and premature resort to the court. 21. The power to tax is the most effective instrument to raise needed revenues to finance and support the myriad activities of the government for the delivery of basic services essential to the promotion of the general welfare and enhancement of peace, progress and prosperity of the people. Consequently, any delay in implementing tax measures would be to the detriment of the public. It is for this reason that claims for refund are required to be done within certain time frames. 22. Exemptions from taxation are highly disfavored in law and he who claims exemption must be able to justify his claim by the clearest grant of organic or statutory law. An exemption from the common burden cannot be permitted to exist upon vague implications (Asiatic Petroleum Co. vs Llanes, 49 Phil. 466 cited in Collector of Internal Revenue v Manila Jockey Club, Inc., 98 Phil. 670). 23. In an action for refund, the burden of proof is on the taxpayer to establish its right to refund, and failure to sustain the burden is fatal to the claim for refund. Hence, a taxpayer is charged with the heavy burden of proving that he has complied with and satisfied all the statutory and administrative requirements to be entitled to the tax refund. Failure to comply therewith warrants a dismissal of the taxpayer's claim for refund. Respondent humbly submits that petitioner failed to establish its right to refund. 24. It can never be emphasized enough that in this jurisdiction tax refunds/credits are in the nature of tax exemptions, hence, laws relating to them call for a strict application against the claimant. As held by the Honorable Supreme Court: 'Tax refunds are in the nature of tax exemptions, and are to be construed strictissimi juris against the entity claiming the same. Thus, the burden of proof rests upon the taxpayer to establish by sufficient and competent evidence, its entitlement to a claim for refund.' 25. Taxes collected are presumed to be m accordance with laws and regulations. 26. Claims for refund are construed strictly against the claimant for the same partake of the nature of exemption~

DECISION CTA Case No. 9369 Page 12 of60 from taxation (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA 95) and as such, they are looked upon with disfavor (Western Minolco Corp. vs. Commissioner of Internal Revenue, 124 SCRA 1211). Basic is the rule that tax refunds are regarded as tax exemptions that are in derogation of the sovereign authority and are to be construed in strictissimi juris against the person or entity claiming the exemption (Philippine Phosphate Fertilizer Corporation v. Commissioner of Internal Revenue, G.R. No. 141973, June 28, 2005). The law does not look with favor on tax exemptions and that he who would seek to be thus privileged must justify it by words too plain to be mistaken and too categorical to be misinterpreted (Sea-Land Service. Vs. Court of Appeals, 357 SCRA 444). 27. Based on the foregoing, petitioner's claim for refund has no basis in fact and in law. Thus, the instant petition should be dismissed for lack of jurisdiction and/ or for lack of merit." In his Memorandum, respondent additionally expressed his objections to the claim for refund by asserting that petitioner failed to substantiate its claim for refund during trial, specifically its compliance with the requirements provided under Revenue Memorandum Order (RMO) No. 53-98 and other existing rules and regulations relative to applications of this nature. Further respondent theorizes that for a judicial claim for refund of input VAT to prosper, the petitioner must prove the following: 1. That there must be zero-rated or effectively zero-rated sales; 2. That input taxes were incurred or paid; 3. That the input taxes are attributable to zero-rated or effectively zero-rated sales; 4. That the input taxes were not applied against any VAT output VAT liability; 5. That the claim for refund/tax credit must be filed within the two- year prescriptive period. Respondent maintains that petitioner did not fully comply with all of the above requirements, thus the claim for refund of input VAT for the taxable year 2014 must be denied. RULING OF THE COURT~

DECISION CTA Case No. 9369 Page 13 of60 Foremost among the issues to be resolved in claims for refund of excessjunutilized VAT input taxes is the timeliness of the filing of the claim or claims as this is determinative of the jurisdiction of this Court. The claim before the administrative level and the subsequent Petition for Review before the Court were seasonably filed Pursuant to Section 112(A) of NIRC of 1997, as amended, the application for tax credit certificate/refund of unutilized excess input VAT must be filed within two years after the close of the taxable quarter when the zero-rated or effectively zero- rated sales were made, and we quote: "SEC. 112. Refunds or Tax Credits ofInput 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 or properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales: Provided, finally, That for a person making sales that are zero-rated under Section 108(B)(6), the input taxes shall be allocated ratably between his zero-rated and non-zero-rated sales. XXX XXX XXX The present claim covers the four quarters of CY 2014, which closed on March 31, 2014, June, 30, 2014, Septemberae -

DECISION CTA Case No. 9369 30, 2014 and December 31, 2014. Counting two years from the said dates, petitioner had until March 31, 2016, June, 30, 2016, September 30, 2016 and December 31, 2016, respectively, within which to file its administrative claim for tax credit certificate/ refund. Thus, petitioner's administrative claims for the said quarters were seasonably filed on December 29, 2015, to wit: CY 2014 Close of the Last Day to Date of Filing 1st Quarter Taxable File of 2nd Quarter Quarter 3rd Quarter Administrative Administrative 4th Quarter 31-Mar-14 Claim Claim 30-Jun-14 30-Sep-14 31-Mar-16 29-Dec-1528 31-Dec-14 30-Jun-16 30-Sep-16 31-Dec-16 Anent the timeliness of petitioner's judicial appeal, Section 112(C) of the NIRC of 1997, as amended, states the time requirements for filing a judicial claim for the refund or tax credit of input VAT. The legal provision speaks of two periods: the period of 120 days, which serves as a waiting period to give time for the CIR to act on the administrative claim for a refund or credit; and the period of 30 days, which refers to the period for filing a judicial claim with the CTA. 29 We quote Section 112 ( C ) of the 1997 NIRC, thus: "Section 112. - xxx xxx (C) Period within which Refund or Tax Credit of Input Taxes shall be Made. - In proper cases, the Commissioner shall grantln 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." It is to be noted that the 120-day period begins to run from the date of submission of complete documents supporting the administrative claim. If there is no evidence 28 JSFI, paragraph 6, Court docket, pp. 111; Exhibits "P-1" to "P-1-C" and "P-2", Court docket, pp. 198 to 205. 29 Rohm Apollo Semiconductor Philippines us. Commissioner of Internal Revenue, G.R. No. 168950, January 14, 2015.~

DECISION CTA Case No. 9369 Page 15 of60 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. 30 In this case, petitioner simultaneously submitted its complete supporting documents upon filing of its administrative claim on December 29, 2015. Accordingly, respondent had 120 days from December 29, 2015, or until April 27, 20 16 to decide on petitioner's claim. However, respondent failed to act on the claim within the allowable period of 120 days. Thus, petitioner had 30 days or until May 27, 2016 to appeal such inaction to the Court. Evidently, petitioner's judicial claim for refund on May 27, 2016 was timely filed as well, as shown below: Date of filing of End of 120 End of30 Date of Filing administrative days for the days to of Petition claim/submission for Review BIR appeal before of complete Commissioner the CTA documents to decide on the claim 29-Dec-15 27-Apr-16 27-May-16 27-May-16 We now proceed to the substantive aspects of the claim for refund of alleged excessjunutilized input VAT for the four quarters of 2014 and whether or not petitioner complied with the well-established requisites to substantiate the same. Pertinent to the resolution of this issue is Section 110(B) of the 1997 NIRC, and we quote: "SECTION. 110. Tax Credits.- XXX XXX XXX (B) Excess Output or Input Tax. - If at the end of any taxable quarter the output tax exceeds the input tax, the excess shall be paid by the VAT-registered person. If the input tax exceeds the output tax, the excess shall be 3D Silicon Philippines, Inc. (Fonnerly jp.Jel Philippines Manufacturing, Inc.) vs. CIR, G.R. No. 182737, March 2, 2016.~

DECISION CTA Case No. 9369 Page 16 of60 carried over to the succeeding quarter or quarters: Provided} however, That any input tax attributable to zero-rated sales by a VAT-registered person may at his option be refunded or credited against other internal revenue taxes, subject to the provisions of Section 112." Pursuant to the above provisions in relation to the aforequoted Section 112 (A) and (C) of the 1997 NIRC, the requisites for a refund or tax credit of unutilized excess input VAT attributable to zero-rated or effectively zero-rated sales are as follows: 1) the taxpayer-claimant is VAT-registered; 2) there must be zero-rated or effectively zero-rated sales; 3) input taxes were incurred or paid; 4) such input taxes are attributable to zero-rated or effectively zero-rated sales; 5) said input taxes were not applied against any output VAT liability; and 6) the claim was filed within the prescribed periods both in the administrative and judicial levels. Petitioner is a VAT- registered entity and had zero-rated sales/receipts during the subject period of the claim It is undisputed that petitioner is a VAT-registered entity with updated Certificate of Registration (BIR Form No. 2303) No. OCN 8RC0000685884E duly issued by the respondent31, hence, satisfying the first requisite. On the second requisite, i.e., the existence of zero-rated sales, petitioner, in its Quarterly VAT Returns for the four quarters of CY 2014, reflected a total amount of P8,800,661,932.71 zero-rated sales/receipts, broken down as follows: Exhibit CY 2014 Zero-Rated "P-11-A-42" 1st Quarter p P-11-A-43" SalesI Receipts 2nd Quarter 579,928,809.92 2,960,901 ,412.91 31JSFI, paragraph 4, Court docket, p. 111. ~

DECISION 3rd Quarter 4,590,263,340.57 CTA Case No. 9369 Page 17 of60 4th Quarter 669,568,369.31 "P-11-A-44" "P-11-A-45" Total p 8,800,661'932.71 The Court-commissioned ICPA 32 examined and verified the supporting documents of petitioner and accordingly classified petitioner's reported zero-rated sales/receipts into the following categories:33 Reference Amount in Amount in to Exhibit US Dollars Philippine Pesos "P-11-B" A. Export zero-rated sales of goods to 160,560,943.83 7,044,757,401.94 non-resident foreign corporations Annex F1 32,382,545.45 1,434,219,965.79 (NRFCs) supported by Export Annex F2 Declaration forms, Sales Invoices 527,010.92 23,478,725.99 (Sis), Security Bank's Client's Annex F3 Advise forms and Bills of Lading 298,205,838.98 Annex F4 8,800,661,932. 7034 JBLsl B. Local zero-rated sales of goods to PEZA-registered companies supported by Sis, es, and Client's Advise forms issued by Security Bank C. Zero-rated sales of services to non- resident foreign corporations representing dispatch supported by VAT registered Official Receipts and Billing Statements and Client's Advise forms issued by Security Bank D. Zero-rated sales of services to PEZA-registered companies representing materials handling, drilling services and equipment rental supported by VAT registered Official Receipts and Billing Statements Total Export sales to non-resident foreign corporations (NRFCs) With regard to its reported zero-rated export sales of goods to non-resident foreign corporations in the amount of 32 Villaruz, Villaruz & Co., CPAs through its Partner, Mr. George V. Villaruz. 33 TEoxthailbaitm"oPu-1n1t-Bis"P, 0C.o0u1rltodwoecrkdeut,ept.o1r0.ounding-off.~ 34

DECISION CTA Case No. 9369 Page 18 of60 P7,044,757,401.94, records show that petitioner is primarily engaged in the mining and exporting of nickel saprolite and limonite ore, and exploration activities. 35 Petitioner claims that during the CY 20 14, it generated export sales of nickel ores from its mining operations that were all paid for in US Dollars inwardly remitted to its bank account in the Philippines and duly accounted for in accordance with the rules and regulations of the BSP. Petitioner posits that such export sales are subject to zero percent (0%) VAT pursuant to Section 106(A)(2)(a)( 1) of the NIRC of 1997, as amended, which states: "SEC. 106. Value-added Tax on Sale of Goods or Properties. - (A) Rate and Base of Tax. - xxx XXX XXX XXX (2) Zero-rated Sales - The following sales by VAT- registered persons shall be subject to zero percent (0%) rate: (a) Export Sales. -The term "export sales" means: (1) The sale and actual shipment of goods from the Philippines to a foreign country, irrespective of any shipping arrangement that may be agreed upon which may influence or determine the transfer of ownership of the goods so exported and paid for in acceptable foreign currency or its equivalent in goods or services, and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP);" Based on the aforequoted provisions of Section 106(A)(2)(a)( 1) of the NIRC of 1997, as amended, in order for an export sale to qualify as zero-rated, the following conditions must be present: 1.) there was sale and actual shipment of goods from the Philippines to a foreign country; 2.) the sale was made by a VAT registered person; 35 Exhibit "P-8", Notes to Financial Statements for the years ended December 31, 2014 and 2013, Note l.a,Court docket, p. 220.ac-----

DECISION CTA Case No. 9369 Page 19 of60 3.) the sale was paid for in acceptable foreign currency or its equivalent in goods or services; and 4.) the payment was accounted for in accordance with the rules and regulations of the BSP. Corollary to the first requisite, Section 113(A)(1), (B)(1), (2)(c) and (3) of the NIRC of 1997, as amended, and as implemented by Section 4.113-1(A)(1), B(1) and (2)(c) of Revenue Regulations (RR) No. 16-05, as amended, provides that a VAT taxpayer, like herein petitioner, shall for every sale, barter or exchange of goods or properties, issue a VAT invoice which must contain the following information: "SEC. 113. Invoicing and Accounting Requirements for VAT-Registered Persons.- (A) Invoicing Requirements.- A VAT-registered person shall issue: (1) A VAT invoice for every sale, barter or exchange of goods or properties; and XXX XXX XXX (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~

DECISION CTA Case No. 9369 Page 20 of60 (3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; and xxx" "SEC. 4.113-1. Invoicing Requirements.- (A) A VAT-registered person shall issue: (1) A VAT invoice for every sale, barter or exchange of goods or properties; and XXX XXX XXX 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;" (Underscoring supplied) In addition to the above requirements, the invoices must be duly registered with the BIR as prescribed under Section 237 in relation to Section 238 of the 1997 NIRC, as amended, towit:~

DECISION CTA Case No. 9369 Page 21 of60 "SEC. 237. Issuance of Receipts or Sales or Commercial Invoices. - All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at Twenty-five pesos (P25.00) or more, issue duly registered receipts or sales or commercial invoices, prepared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: xxx" (Underscoring supplied) "SEC. 238. Printing of Receipts or Sales or Commercial Invoices. - All persons who are engaged in business shall secure from the Bureau of Internal Revenue an authority to print receipts or sales or commercial invoices before a printer can print the same. No authority to print receipts or sales or commercial invoices shall be granted unless the receipts or invoices to be printed are serially numbered and shall show, among other things, the name, business style, Taxpayer Identification Number (TIN) and business address of the person or entity to use the same, and such other information that may be required by rules and regulations to be promulgated by the Secretary of Finance, upon recommendation of the Commissioner. XXX XXX xxx'' Pursuant to the foregoing provisions of Section 106(A)(2)(a)(1) of the 1997 NIRC, as amended, in relation to Section 113(A)(1), (B)(1), (2)(c), and (3) of the same Code and Sections 4.113-1(A)(1), B(1), and (2)(c) of RR No. 16-05, any VAT registered person claiming VAT zero-rated direct export sales must present at least three (3) types of documents, to wit: (a) the sales invoice as proof of sale of goods; (b) bill of lading or airway bill as proof of actual shipment of goods from the Philippines to a foreign country; and (c) bank credit advice, certificate of bank remittance or any other document proving payment for the goods in acceptable foreign currency or its equivalent in goods and services. Further, the sales invoices supporting the export sales must be registered with the BIR and contain all the required information under the law and regulations, such as the imprinted word "zero-rated" and the taxpayer's TIN-VAT number.~

DECISION CTA Case No. 9369 Page 22 of60 After careful examination of the evidence on record, the Court finds that petitioner submitted the aforesaid documents except for the following sales amounting to P101,378,116.27 which have no corresponding bank credit advice or proof of foreign currency inward remittances, thus, must be denied VAT zero-rating: Custome lnvoic Zero-rated Sales Exhibit Inward Exhibit Difference Philippine Peso rName e No. per Invoice P-11-B- Remittance per Equivalent Regent 0859 US$ Security Bank's Sound 2,312,811.00 17 Ltd. 0930 Client Advice Boas tee! 660,340.00 P-11-B- Resource ~- {!S$2,973,151.00 34.1 - - US$2,312,811.00 I' 101,289,557.75 s Internati US$ 658,319.50 P-11- 2,020.50 88,558.5236 onal Co., US$658,319.50 B-34.4 US$2,314,831.50 P101,378,116.27 Ltd. Total L__ - Sales of goods and services to entities registered with the Philippine Economic Zone Authority (PEZA) As to petitioner's claimed zero-rated sales of goods and services in the respective amounts of P1,434,219,965.79 and P298,205,838.98, to PEZA-registered entities, pertinent provisions of Sections 106(A)(2)(a)(5) and 108(B)(3) of the 1997 NIRC of 1997, as amended, state: "SEC. 106. Value-added Tax on Sale of Goods or Properties. - (A) Rate and Base of Tax. xxx XXX XXX XXX 2) Zero-rated Sales - The following sales by VAT- registered persons shall be subject to zero percent (0%) rate: (a) Export Sales. - The term 'export sales' means: XXX XXX XXX 36 Computed based on the peso equivalent of U$660,340.00 (P28,942,702.20). ~

DECISION CTA Case No. 9369 Page 23 of60 (5) Those considered export sales under Executive Order No. 226, otherwise known as the 'Omnibus Investments Code of 1987,' and other special laws; and XXX XXX xxx" (Underscoring supplied) "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: XXX XXX XXX (3) Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate;" (Underscoring supplied) Indeed, sales by a VAT taxpayer from the customs territory to entities located in export processing zones are considered export sales under Executive Order (E.O.) No. 226, otherwise known as the "Omnibus Investments Code of 1987", the relevant portions of which read as follows: "ARTICLE 23. "Export sales" shall mean the Philippine port F.O.B. value, determined from invoices, bills of lading, inward letters of credit, landing certificates, and other commercial documents, of exports products exported directly by a registered export producer or the net selling price of export product sold by a registered export producer to another export producer, or to an export trader that subsequently exports the same: Provided, That sales of export products to another producer or to an export trader shall only be deemed export sales when actually exported by the latter, as evidenced by landing certificates or similar commercial documents: Provided, further, That without actual exportation the following shall be considered constructively exported for purposes of this provision: (1) sales to bonded manufacturing warehouses of export- oriented manufacturers; (2) sales to export processing zones; xxx" (Emphasis supplied) "ARTICLE 77. Tax Treatment of Merchandise in the Zone. - (1) Except as otherwise provided in this Code, foreign and domestic merchandise, raw materials, supplies, articles,a.~,.,.....--

DECISION CTA Case No. 9369 Page 24 of60 equipment, machineries, spare parts and wares of every description, except those prohibited by law, brought into the zone to be sold, stored, broken up, repacked, assembled, installed, sorted, cleaned, graded, or otherwise processed, manipulated, manufactured, mixed with foreign or domestic merchandise whether directly or indirectly related in such activity, shall not be subject to customs and internal revenue laws and regulations nor to local tax ordinances, the provisions of law to the contrary notwithstanding. "(2) Merchandise purchased by a registered zone enterprise from the customs territory and subsequently brought into the zone, shall be considered as export sales and the exporter thereof shall be entitled to the benefits allowed by law for such transaction. xxx" (Emphasis supplied) Further, Section 8 of Republic Act (RA) No. 791637 , as amended, mandates that the PEZA shall manage and operate the ecozones as a separate customs territory, thus: "SEC. 8. ECOZONE to be Operated and Managed as Separate Customs Territory. -The ECOZONE shall be managed and operated by the PEZA as separate customs territory. The PEZA is hereby vested with the authority to issue certificate of origin for products manufactured or processed in each ECOZONE in accordance with the prevailing rules or origin, and the pertinent regulations of the Department of Trade and Industry and/or the Department of Finance." Since the ecozone is viewed as a foreign territory by legal fiction, sales of goods and services made by a VAT-registered person in the Philippine customs territory to an entity registered and operating within the ecozone are considered exports to a foreign country subject to zero percent (0�/o) VAT. This was elucidated by the Supreme Court in the case of Commissioner of Internal Revenue us. Toshiba Information Equipment (Phils.), Inc. 38, to wit: 37 An Act Providing for the Legal Framework and Mechanisms for the Creation, Operation, Administration, and Coordination of Special Economic Zones in the Philippines, Creating for this Purpose, the Philippine Economic Zone Authority (PEZA), and for Other Purposes. 38 G.R. No. 150154, August 9, 2005.----

DECISION CTA Case No. 9369 Page 25 of60 "This Court agrees, however, that PEZA-registered enterprises, which would necessarily be located within ECOZONES, are VAT-exempt entities, not because of Section 24 of Rep. Act No. 7916, as amended, which imposes the five percent (5%) preferential tax rate on gross income of PEZA-registered enterprises, in lieu of all taxes; but, rather, because of Section 8 of the same statute which establishes the fiction that ECOZONES are foreign territory. xxx An ECOZONE or a Special Economic Zone has been described as ... [S]elected areas with highly developed or which have the potential to be developed into agro-industrial, industrial, tourist, recreational, commercial, banking, investment and financial centers whose metes and bounds are fixed or delimited by Presidential Proclamations. An ECOZONE may contain any or all of the following: industrial estates (IEs), export processing zones (EPZs), free trade zones and tourist/ recreational centers. The national territory of the Philippines outside of the proclaimed borders of the ECOZONE shall be referred to as the Customs Territory. Section 8 of Rep. Act No. 7916, as amended, mandates that the PEZA shall manage and operate the ECOZONES as a separate customs territory; thus, creating the fiction that the ECOZONE is a foreign territory. As a result, sales made by a supplier in the Customs Territory to a purchaser in the ECOZONE shall be treated as an exportation from the Customs Territory. Conversely, sales made by a supplier from the ECOZONE to a purchaser in the Customs Territory shall be considered as an importation into the Customs Territory. Given the preceding discussion, what would be the VAT implication of sales made by a supplier from the Customs Territory to an ECOZONE enterprise? The Philippine VAT system adheres to the Cross Border Doctrine, according to which, no VAT shall be imposed to form part of the cost of goods destined for consumption outside of the territorial border of the taxing authority. Hence, actual export of goods and services from the Philippines to a foreign country must be free of VAT; while, those destined for use or consumption~

DECISION CTA Case No. 9369 Page 26 of60 within the Philippines shall be imposed with ten percent (10%) VAT39." (Emphasis supplied) To substantiate its zero-rated sales/receipts to PEZA- registered entities, petitioner presented Sales Invoices 40 , Security Bank's Credit Advices41, Billing Statements42, Official Receipts43 and Certifications44 from PEZA. These documents proved that for the year 2014, petitioner sold its products, i.e., nickel ores, to Taganito HPAL Nickel Corporation (THPAL) and rendered services (materials handling services and equipment rental) to Visayas Slaked Lime Corporation (VSLC) and THPAL. Since it was established that both THPAL and VSLC are registered with the PEZA, petitioner's sales toI receipts from these entities in the amounts of P1,434,219,965.79 and P298,205,838.98 which are duly covered by VAT zero-rated sales invoices and official receipts qualify for VAT zero-rating under Sections 106(A)(2)(a)(5) and 108(B)(3) of the 1997 NIRC, as amended. Sales of services to non- resident foreign corporations With reference to petitioner's declared zero-rated sales of services to non-resident foreign corporations, Section 108(B)(2) and (3) of the 1997 NIRC, as amended, provides as follows: "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: XXX XXX XXX (2) Services other than those mentioned in the preceding paragraph rendered to a person engaged in 39 Now at 12% VAT rate. 40 Exhibits "P-11-B-59" to "P-11-B-70". 41 Exhibits "P-11-B-59.1" to "P-11-B-70.1". 42 Exhibits "P-11-B-105" to "P-11-B-141". 43 Exhibits "P-11-B-105.1" to "P-11-B-141.1". 44 Exhibits "P-11-B-142" to "P-11-B-143". ~

DECISION CTA Case No. 9369 Page 27 of60 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); xxx" In the case of Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Jnc.45, the Supreme Court held that in order for the supply of services to be VAT zero-rated under Section 108(B)(2) of the NIRC of 1997, as amended, the following requisites must be met: 1. the services must be other than processing, manufacturing or repacking of goods; 2. 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 petitioner's submitted billing statements, official receipts and bank credit advices46, the claimed zero rated sales/receipts of P23,478,725.99 arose from "Laytime Saved" by petitioner at loading point for the nickle ore shipments. In her Judicial Affidavit 47 , petitioner's Vice- President for Finance, Ms. Lennie A. Terre, explained that this represents "Dispatch income which is a form of premium payment or reward for early completion of ore loading or when ore loading is made earlier than the allowed loading days based on the contract terms. This is an additional payment to the contract price of the ores and is billed by and paid to petitioner in US Dollars thru the Philippine banking system." Clearly, petitioner complied with the first and second requisites considering that the amount of P23,478,725.99 pertains to services which fall within the scope of "services other than processing, manufacturing or repacking of goods" and that the same was paid for in acceptable foreign currency 45 G.R. No.153205, January 22, 2007. 46 Exhibits "P-11-B-71" to "P-11-B-104.2". 47 Exhibit "P-10", Q&A No. S(e), Court docket, p. 145. ~

DECISION CTA Case No. 9369 Page 28 of60 duly accounted for in accordance with the rules and regulations of the BSP. However, petitioner failed to comply with the equally important third requisite, i.e., that its non-resident foreign clients were doing business outside the Philippines. This Court has consistently held that for an entity to be considered a non-resident foreign corporation doing business outside the Philippines, the said entity must be supported at the very least, by the Certification of Non-Registration of Corporation/Partnership duly issued by the Securities and Exchange Commission (SEC) and proof of incorporation or registration in a foreign country (e.g., Certificate of Incorporation, Memorandum and Articles of Association, or Certificate of Registration) or any other equivalent document. For failure to present the aforesaid documents, petitioner's reported zero-rated sales/ receipts in the amount P23,478,725.99 shall be disallowed. In sum, out of the reported sales in CY 20 14 of P8,800,661,932.71, only the amount of P8,675,805,090.45 represents petitioner's valid zero-rated sales/receipts, computed as follows: Zero-Rated Sales/Receipts per VAT Returns p 8,800,661,932.71 Less: Disallowances p 101,378,116.27 a. Sales of goods to non-resident foreign corporations without foreign currency 23,4 78,725.99 inward remittances p 124,856,842.26 P8,675,805,090.45 b. Sales of services to non-resident foreign corporations without proof that such were doing business outside the Philippines Total Disallowances Valid Zero-Rated Sales/Receipts Petitioner incurred/paid input taxes attributable to zero-rated sales/receipts and said input taxes were not applied against any output VAT liability.~

DECISION CTA Case No. 9369 Page 29 of60 Having resolved that petitioner had valid VAT zero-rated sales/receipts for the four quarters of CY 2014 in the amount of P8,675,805,090.46, we proceed to the determination of whether petitioner incurred input taxes in connection therewith and if said input taxes were not applied against any output VAT liability of petitioner. In its Quarterly VAT Returns for the four quarters of CY 2014, petitioner reflected a total amount of P30,160,760.33 allowable input VAT arising from its amortization of input VAT on purchases of capital goods exceeding P1 million, domestic purchases and importation of goods other than capital goods, and domestic purchases of services, detailed as follows: 1st Quarter4s 2nd Quarter49 3rd Quarterso 4th Quartersl Total p p 65,384,924.63 Input Tax Deferred on Capital p p p Goods exceeding P1 Million from 65,384,924.63 Previous Quarter 60,066,168.09 56,834,972.27 50,250,798.32 Add: Input Tax on Capital Goods 1,255,570.43 3,566,657.57 245,892.87 401,110.00 5,469,230.87 I exceeding P1 Million 66,640,495.06 Purchased this Quarter 63,632,825.66 57,080,865.14 50,651,908.32 I Total Unamortized Input Tax on 60,066,168.09 Capital Goods exceeding P1 f' 70.854.155.50 1 Million Less: Input Tax on Purchases of 6 574,326.97 56,834,972.27 50,250,798.32 43,803,818.55 43,803,818.55 Capital Goods exceeding Pl f' 27,050,336.95 Million deferred for the f' f' f' succeeding period 6,797 853.39 6 830 066.82 6 848 089.77 Amortization of Input Tax on Capital Goods exceeding f'1 Million Add: Input Tax on: 15,859.23 6,925.68 3,150.17 6,276.66 I Domestic Purchases of - 32,211.74 I Goods Other than Capital Goods 54,688.10 205 237.00 2 403 204.00 - 2,608,441.00 Importation of Goods other 59,663.36 106,620.99 248,798.19 469,770.64 than Capital Goods Domestic Purchase of Services Total 70,547.33 271,826.04 2,512,975.16 255,074.85 3,110,423.38 Total Allowable Input T~ -- _P6,644,874.30 _P7,069,679.4~ P9,343,041.9~ ~7,103,164.6~- ~30, 160,760.3=!_j Of the P30, 160,760.33 declared input VAT, petitioner's application for refund/tax credit filed with the BIR was only P29,581,266.94 52 representing P26,972,825.94 53 input VAT amortization on capital goods exceeding P1 million and P2,608,441.00 input VAT on importation of goods other than 48 Exhibits "P-11-A-42" to "P-11-A-42.5". 49 Exhibits "P-11-A-43" to "P-11-A-43.5". 5o Exhibits "P-11-A-44" to "P-11-A-44.5". 51 Exhibits "P-11-A-45" to "P-11-A-45.5". s2 Exhibit "P-1-C". 53 Lower by P77,511.01 when compared to the reported amount ofP27,050,336.95.u.__..--

DECISION CTA Case No. 9369 Page 30 of60 capital goods. However, the administrative claim of !>29,581,266.94 was reduced to P28,926,837.00 when petitioner filed its Petition for Review before this Court. The reduction in petitioner's claim was explained by petitioner's Vice-President for Finance, Ms. Lennie A. Terre, in her Judicial Affidavit54, as follows: "Q31: Can you tell us what has happened to the claim filed with the Respondent? A31: On May 12, 2016, Petitioner received from the Respondent an undated letter stating that out of Petitioner's claim in the amount of P29,581 ,267.00, it is approving for refund the amount of P21,330,738.32, as follows: PARTICULARS BIR BOC TOTAL Total applied for TCC 654,430.00 28,926,837.00 29,581,267.00 Less: 141,546.61 8,108,982.07 8,250,528.68 Disallowance NET 512,883.39 20,817,854.93 21,330,738.32 REFUNDABLE AMOUNT Simultaneous with the issuance of the aforesaid letter, Respondent issued to the Petitioner, a tax credit certificate in the amount of P512,883.39. Subsequently, we were furnished a copy of an endorsement letter addressed to the Commissioner of the Bureau of Customs (BOC) stating the Respondent's approval of Petitioner's VAT credit claim from importation of goods in the amount ofP20,817,854.93. Q33: Why are you still pursuing this claim despite the said endorsement? A32: Petitioner disagrees with the disallowance of Eight Million One Hundred Eight Thousand Nine Hundred Eighty Two and 07/ Pesos (P8,108,982.07) on the BOC portion of the total claim amounting to Twenty Eight Million Nine Hundred Twenty Six Thousand Eight Hundred Thirty Seven Pesos (P28,926,837.00). Also, the BOC endorsement has not translated into the issuance of any TCC by or cash refund from the BOC, so that at this point, it is still 54 Exhibit "P-10".~

DECISION CTA Case No. 9369 Page 31 of60 worth nothing but a piece of paper which would not ensure the enforcement of the company's right to refund. We are, however, following up the approval of the release of any TCC or cash refund from the BOC and in the event that this actually happens, we undertake to advice to this Court." The Court-commissioned ICPA confirmed that petitioner's input VAT claim of P28,926,837.00 pertains only to importation of capital goods and non-capital goods as supported by the following documents:ss Particulars Input VAT Claim 1. Input VAT on Importation of capital goods supported p 25,498,784.85 by Import Entry and Internal Revenue Declarations tiEIRDs) and Security Bank's Debit Advice forms 819,612.00 2. Input VAT on Importation of capital goods supported by Certified True Copy IEIRDs and Security Bank's 2,608,441.00 Debit Advice forms P28,926,837.85 3. Input VAT on Importation of non-capital goods supported by IEIRDs, Sales Invoices and Security Bank's Debit Advice forms Total Input VAT The input VAT claims of P25,498,784.85 and P819,612.00 totalling P26,318,396.85 represent the amortized portion on petitioner's importation of capital goods exceeding P1 million, detailed as follows: Reference Input VAT Amortization for to Exhibit Date Purchased57 CY 2014 "P-11-B" Exhibit Description56 5 Volvo Dump Annex D P-11-A-30 to P- Truck 03-Jun-10 p 819,612.00 11-A-30.3 12 Volvo Dump Truck P-11-A-1 to P-11- 1 Volvo Motor A-1.2 4 Volvo Dump 19-Apr-11 3,005,490.52 Truck Annex C1 P-11-A-2 to P-11- 10-May-11 229,672.25 A-2.3 Volvo FMX37064R 6 Caterpillar P-11-A-3 to P-11- Wheel 9 Volvo Dump A-3.3 28-Jun-11 771,129.00 P-11-A-5 to P-11- A-5.2 10-Feb-12 163,839.00 Annex C2 P-11-A-4 to P-11- A-4.3 10-Feb-12 1,939,248.00 21-Mar-12 -- 1,520,336.00 P-11-A-6 to P-11- - 55 Exhibit "P-11-B", Findings and Observations, p. 8. 56 Per Schedule 3 of the Quarterly VAT Returns..--.----- 57 Id.

DECISION CTA Case No. 9369 Page 32 of60 A-6.2 Truck P-11-A-7 to P-11- 2 Caterpillar A-7.1 Motor 10-AQ_r-12 577,718.00 16-Apr-12 1,980,087.00 P-11-A-8 to P-11- 9 Volvo Dump 24-May-12 2, 195,266.75 03-Jul-12 A-8.2 Truck 14-Aug-12 228,766.99 12-Nov-12 567,932.50 P-11-A-9 to P-11- 10 Volvo Dump 27-Dec-12 21-Jan-13 60,364.99 A-9.1 Truck 06-Mar-13 466,294.00 06-Mar-13 1,239,405. 75 P-11-A-10 toP- 12-Mar-13 1,270,289.00 12-Mar-13 489,021.25 11-A-10.1 Volvo Motor Grade 01-Apr-13 291,355.00 03-Apr-13 1,108,712.75 P-11-A-11 toP- 2 Volvo Wheel 18-Apr-13 226,505.25 10-May-13 436,490.25 11-A-11.1 Loader 20-May-13 1,560,936.00 25-Jun-13 2,644,348.25 P-11-A-12 toP- 06-Feb-14 225,178.00 01-AQr-14 1,438,683.25 11-A-12.2 Forklift 01-Apr-14 216,161.23 02-Jun-14 P-11-A-13 toP- 29-0ct-14 81,921.56 468,846.19 11-A-13.1 Sandvik 69,715.77 P-11-A-14 toP- 7 Volvo Hyd 25,069.37 P26,318,395.8858 11-A-14.2 Excavator P-11-A-16 toP- 11-A-16.2 5 Wheel Loader P-11-A-15 toP- 2 Hydraulic 11-A-15.2 Excavator P-11-A-17 toP- 11-A-17.2 Wheel Loader P-11-A-18 toP- 11-A-18.1 5 Dump Truck Annex C3 P-11-A-19 toP- 2 Volvo Motor Annex C4 11-A-19.2 Grade P-11-A-20 toP- 2 Volvo Dump 11-A-20.1 Truck P-11-A-21 toP- 7 Volvo Dump 11-A-21.1 Truck P-11-A-22 toP- 12 Volvo Dump 11-A-22.2 Truck P-11-A-23 toP- 11-A-23.1 1 Unit FMX P-11-A-24 toP- 11-A-24.1 6 Volvo FMX P-11-A-25 toP- 11-A-25.1 1 Terrain Crane P-11-A-27 toP- 11-A-27.1 Lowbed Trailer P-11-A-26 toP- 11-A-26.1 2 Wheel Loader P-11-A-28 toP- 11-A-28.1 1 Truck Tractor P-11-A-29 toP- 11-A-29.1 1 Manlift Truck Total ss Lower by P0.97 due to rounding-off.~

DECISION CTA Case No. 9369 Page 33 of60 A scrutiny of petitioner's supporting documents shows that the input VAT claim of P26,318,395.88 requires a downward adjustment in the amount of P2,007,306.40 for not being properly substantiated in accordance with Section 4.110-8(a)(l) of RR No. 16-05: Reference Date Disallowed Input VAT to ICPA Amortization for CY 2014 Report Exhibit Description Purchased p 799,455.40 Supported by Certified Trne Copy of IEIRD and Security Bank's Debit 163,839.00 Advice but the payment reflected in the Debit Advice is insufficient 577,718.00 466,294.00 Advance P1,093,531.0 0 P2,007 ,306.40 Duties paid 992,748.00 Less:CUD/IPF 100,783.00 Amount 4 '098'060.00 attributed to 3,997,277.00 VAT 60 Input VAT claimed P-11-A- Input VAT Annex D 30 to 5 Volvo 03-Jun-10 payment P-11-A- Dump Truck deficiency 30.3 Divide by amortization period (in months) Multiply by period amortized for 1st to 4th qtrs.- 2014 12 Supported by IEIRD and Sales Invoice but without proof of VAT payment P-11-A- 5 toP- 11-A- Volvo Annex C2 5.2 FMX37064R 10-Feb-12 Supported by unreadable IEIRD and Security Bank's Debit Advice which does not show VAT payment P-11-A- 7 toP- 11-A- 2 Caterpillar Annex C2 7.1 Motor 10-Apr-12 P-11-A- 13 to P-11-A- 13.1 Sandvik 27-Dec-12 Total With regard to the P2,608,441.00 input VAT claim on importation of non-capital goods, the same is broken down as follows:~

DECISION CTA Case No. 9369 Page 34 of60 Reference Exhibit Supplier Date Allowable to ICPA Purchased Input for CY Report P-11-A-31 to P-11-A-31.3 Ellton Conveyers 28-A_Qr-1459 13-Jun-14 2014 Annex E P-11-A-32 to P-11-A-32.2 YBM Co Ltd 06-Jun-14 p 205,237.00 P-11-A-33 to P-11-A-33.6 Ellton Conveyers Pty Ltd 91,181.00 Total 2,312,023.00 P2,608,441.00 The Court observed that the importation made by petitioner from YBM Co. Ltd is supported by IEIRD showing a VAT amount of only P25,476.64. Hence, the difference of P65,704.36 (P91,181.00 less P25,476.64) shall be disallowed from petitioner's claim. In sum, petitioner was able to properly substantiate its input VAT claim to the extent of P26,853,826.24, computed as follows: Input VAT Claim p 28,926,837.00 Less: Disallowances p 799,455.40 1. Supported by Certified True Copy of IEIRD and 163,839.00 Security Bank's Debit Advice but the payment reflected in the Debit Advice is insufficient 1,044,012.00 2. Supported by IEIRD and Sales Invoice but without 65,704.36 QroofofVATpayment 3. Supported by unreadable IEIRD and Security p 2,073,010.76 Bank's Debit Advice which does not show VAT P26,853,826.24 payment 4. Supported by IEIRD showing a lower amount of input VAT Total Disallowances Properly Substantiated Input VAT However, considering that petitioner had also reported Vatable and exempt sales/receipts, and its input VAT cannot be directly identified with specific sales, we shall allocate the valid input VAT proportionately on the basis of the volume of petitioner's sales pursuant to Section 112(A) of the NIRC of 1997, as amended, computed as follows: 59 Per IEIRD. ~

DECISION CTA Case No. 9369 Page 35 of60 Allocation Factor (Percentage to Total Amount60 Sales/Receipts) Vatable Sales/Receipts p 1,593,836.60 0.01782949% Zero-Rates 8,800,661,932.71 98.4487820% SalesI Receipts 137,074,667.05 1.5333885% Exempt Sales/Receipts p 100.0000000% Total SalesI Receipts 8,939,330,436.36 Net Substantiated Input p 26,853,826.24 VAT Allocated as follows: 4,787.90 26,437,264.85 Vatable 411,773.49 SalesI Receipts p 26,853,826.24 Zero-Rates Sales/Receipts Exempt Sales/Receipts Total After deducting the input VAT attributable to VATable sales/receipts in the amount of P4,787.90 from petitioner's output VAT liability of P191 ,260.39, petitioner still has a net output VAT payable ofP186,472.49, computed as follows: Output VAT Payable p 32,022.86 1st Quarter (Exhibit "P-11-A-42") 39,557.89 2nd Quarter (Exhibit ((P-11-A-43") 76,933.93 3rd Quarter (Exhibit "P-11-A-44 ") 42,745.71 p 191,260.39 4th Quarter (Exhibit "P-11-A-45") 4,787.90 p 186,472.49 Less: Input VAT attributable to Vatable Sales Net Output VAT Payable Petitioner also submitted in evidence the documents supporting its reported input VAT on domestic purchases of services and goods (other than capital goods) for CY 2014 in the respective amounts of P469,770.64 and P32,211.74 which were summarized in Annex I of the ICPA report6 1� However, the summary shows a higher input VAT amount of P979,540.45. 60 Exhibits "P-11-A-42" to "P-11-A-45". ~ 61 Exhibit "P-11-B".

DECISION CTA Case No. 9369 Page 36 of60 Further, the Court noted that the amount of P979,540.45 included an input VAT of P709,392.86 related to petitioner's domestic purchases of capital goods, the amortized portion of which in the amount of P106,962.50 formed part of the P512,883.39 claim for which a TCC was already issued in favor of petitioner. Below is the breakdown of the amount of P106,962.5062: Exhibit Date Sales Description Input VAT Est. Life Amortized Purchased Invoice Toyota Hi-Lux (in Portion 1st 1 Toyota Quarter No. Grandia months) allowable for the CY 2014 P-11-A-81 Toyota Hi-Lux P-11-A- 29-Jan-14 V112916 p 146,250.00 60 p 29,250.00 132 26-Feb-14 A123355 3 Suzuki Jimny 30,446.43 166,071.43 60 2nd Quarter 30-A_Qr-14 838858 151,178.57 60 22,676.79 P-11-A- 02-Jul-14 6472, 245,892.86 60 24,589.29 221 6473 and P106,962.50 3rd 6474 Quarter P-11-A- 341, P- 11-A- 341.1 and P-11-A- 341.2 T o t a l ~- P709,392.86 - -- - - - - - � - ~- -~�- As to the remaining input VAT of P270,147.59 (P979,540.45 less P709,392.86), the amount of P200, 184.83 should be disallowed for not being properly substantiated by VAT invoices or receipts as prescribed under Sections 110(A), 113(A) and (B), 237, and 238 of the NIRC of 1997, as amended, and as implemented by Sections 4.110-1, 4.110-2, 4.110-8, and 4.113-1 of RR No. 16-05, as amended: Exhibit Supplier Name Document No. Date Input VAT INPUT VAT SUPPORTED BY UNDATED SALES INVOICE - New Family Drug & General I 07-Jan-14 J P-11-A-240 Merchandise (Lim, Lance 163989 p 16.93 Lemuel Ling) INPUT VAT SUPPORTED BY ACKNOWLEDGEMENT RECEIPTS I P-11-A-54 LBC Express, Inc. I SUG01143990 - - 11�_1__�_. 62 BIR Records, pp. 440-442.

DECISION CTA Case No. 9369 Page 37 of60 P-11-A-55 LBC Express, Inc. SUG01144077 08-Jan- 14.46 P-11-A-56 SUGO 1143988 14 P-11-A-57 LBC Express, Inc. SUG01144348 18.21 P-11-A-58 LBC Express, Inc. SUG01144345 07-Jan-14 14.46 P-11-A-59 LBC Express, Inc. SUGO 1144351 10-Jan-14 18.21 P-11-A-60 LBC Express, Inc. SUG01144576 10-Jan-14 26.79 P-11-A-61 LBC Express, Inc. SUG01144876 10-Jan-14 580.18 P-11-A-62 LBC Express, Inc. SUG01144349 12-Jan-17 26.79 P-11-A-63 LBC Express, Inc. SUG01145034 15-Jan-14 18.21 P-11-A-64 LBC Express, Inc. SUG01145607 10-Jan-14 18.21 P-11-A-65 LBC Express, Inc. SUG01145114 16-Jan-14 26.79 P-11-A-66 LBC Express, Inc. SUGO 1145807 22-Jan-14 18.21 P-11-A-67 LBC Express, Inc. SUGO 1145789 17-Jan-14 234.64 P-11-A-68 LBC Express, Inc. SUGO 1145860 24-Jan-14 18.21 P-11-A-69 LBC Express, Inc. SUG01146315 24-Jan-14 18.21 P-11-A-70 LBC Express, Inc. SUG01146316 25-Jan-14 26.79 P-11-A-71 LBC Express, Inc. SUG01146104 29-Jan-14 26.79 P-11-A-72 LBC Express, Inc. SUG01146550 29-Jan-14 18.21 P-11-A-103 LBC Express, Inc. SUGO 1146820 28-Jan-14 18.21 P-11-A-104 LBC Express, Inc. SUG01147285 31-Jan-14 33.75 P-11-A-105 LBC Express, Inc. SUG01147425 02-Feb-14 10.71 P-11-A-106 LBC Express, Inc. SUG01147423 06-Feb-14 26.79 P-11-A-107 LBC Express, Inc. SUG01147422 07-Feb-14 18.21 P-11-A-108 LBC Express, Inc. SUGO 1147826 07-Feb-14 18.21 P-11-A-109 LBC Express, Inc. SUGO 1147828 07-Feb-14 26.79 P-11-A-110 LBC Express, Inc. SUG01147829 11-Feb-14 26.79 P-11-A-111 LBC Express, Inc. SUGO 1148040 11-Feb-14 26.79 P-11-A-112 LBC Express, Inc. SUGO 1148268 11-Feb-14 26.79 P-11-A-113 LBC Express, Inc. SUG01148269 12-Feb-14 26.79 P-11-A-114 LBC Express, Inc. SUGO 1148431 14-Feb-14 18.21 P-11-A-115 LBC Express, Inc. SUGO 1148598 14-Feb-14 18.21 P-11-A-116 LBC Express, Inc. SUG01148833 15-Feb-16 84.11 P-11-A-117 LBC Express, Inc. SUGO 1149178 16-Feb-14 14.46 P-11-A-118 LBC Express, Inc. SUGO 1149433 18-Feb-14 14.46 P-11-A-119 LBC Express, Inc. SUGO 1149540 21-Feb-14 10.71 P-11-A-143 LBC Express, Inc. SUGOOO 1150464 23-Feb-14 15.00 LBC Express, Inc. 24-Feb-14 26.79 P-11-A-144 SUG01151148 04-Mar-14 LBC Express, Inc. 08-Mar- 26.79 P-11-A-145 SUG01151183 LBC Express, Inc. 14 26.791 P-11-A-146 SUG01151185 09-Mar- LBC Express, Inc. 26.79 P-11-A-147 SUG01151281 14 LBC Express, Inc. 09-Mar- 95.89 P-11-A-148 SUG01151478 LBC Express, Inc. 14 26.79 P-11-A-149 SUG01151826 09-Mar- LBC Express, Inc. 26.79 P-11-A-150 SUG01151827 14 LBC Express, Inc. 11-Mar- 26.79 P-11-A-151 SUG01151878 LBC Express, Inc. 14 14.46 14-Mar- ~ 14 14-Mar- 14 14-Mar- 14

DECISION CTA Case No. 9369 Page 38 of60 P-11-A-152 LBC Express, Inc. SUGO 1152090 16-Mar- 26.79 14 P-11-A-153 LBC Express, Inc. SUG01152091 26.79 16-Mar- P-11-A-154 LBC Express, Inc. SUG01152968 14 26.79 P-11-A-155 LBC Express, Inc. SUG01153180 23-Mar- 271.61 14 P-11-A-156 LBC Express, Inc. SUG01153185 255.54 25-Mar- P-11-A-157 LBC Express, Inc. SUG01153184 14 279.64 P-11-A-158 LBC Express, Inc. SUG01153183 25-Mar- 287.68 14 P-11-A-159 LBC Express, Inc. SUG01153609 26.79 25-Mar- P-11-A-160 LBC Express, Inc. SUG01153610 14 26.79 P-11-A-186 LBC Express, Inc. SUG01156524 18.21 P-11-A-187 LBC Express, Inc. SUGO 1154956 25-Mar- 26.79 P-11-A-188 LBC Express, Inc. SUG01154902 14 18.21 P-11-A-189 LBC Express, Inc. SUG01154233 17.14 P-11-A-190 LBC Express, Inc. SUG01155762 28-Mar- 26.79 P-11-A-191 LBC Express, Inc. SUG01155951 14 18.21 P-11-A-192 LBC Express, Inc. SUG01155182 P-11-A-193 LBC Express, Inc. SUG01156684 28-Mar- -- P-11-A-194 LBC Exg_ress, Inc. SUG01155284 14 P-11-A-195 LBC Express, Inc. SUG01155282 26.79 P-11-A-196 LBC Express, Inc. SUG01155283 27-Apr-14 18.21 LBC Express, Inc. 09-Apr-14 10.71 P-11-A-228 SUG01157614 09-Apr-14 10.71 LBC Express, Inc. 02-Apr-14 10.71 P-11-A-229 SUG01157822 17-Apr-14 26.79 LBC Express, Inc. 22-Apr-14 P-11-A-230 SUG01158945 12-Apr-14 26.79 LBC Express, Inc. 29-Apr-14 P-11-A-231 SUG01158348 13-Apr-14 10.71 LBC Express, Inc. 13-Apr-14 P-11-A-232 SUGO 1157821 13-Apr-14 26.79 I LBC Express, Inc. 08-May- P-11-A-233 SUG01157819 26.79 I LBC Express, Inc. 14 P-11-A-234 SUGO 1159327 10-May- 26.79 LBC Express, Inc. P-11-A-235 SUG01159612 14 17.14 LBC Express, Inc. 22-May- P-11-A-236 SUG01159607 41.79 LBC Express, Inc. 14 P-11-A-237 SUGO 1156941 15-May- 10.71 LBC Express, Inc. P-11-A-238 SUG01157621 14 14.46 LBC Express, Inc. 10-May- P-11-A-263 SUG01161293 18.21 14 10-May- 57.86 tlo.- 14 25-May- 17 28-May- 14 28-May- 14 01-May- 14 08-May- 14 14-Jun- 14

DECISION CTA Case No. 9369 Page 39 of60 P 11-A-264 LBC Express, Inc. SUG01161059 12-Jun- 41.79 P 11 A-265 LBC Express, Inc. SUG01160349 14 P 11 A 266 LBC Express, Inc. SUG01161128 18.21 P 11 A-267 LBC Express, Inc. SUG01160506 04-Jun- P 11-A-268 LBC Express, Inc. SUG01162307 14 18.21 P 11-A-269 LBC Express, Inc. SUG01160505 P 11-A-270 LBC Express, Inc. SUG01162575 12-Jun 18.21 P-11 A 271 LBC Express, Inc. SUG01160994 14 P 11 A-272 LBC Express, Inc. SUG01161058 26.79 P-11 A 273 LBC Express, Inc. SUG011610225 06-Jun- P-11-A-312 LBC Express, Inc. 14 18.21 P-11 A 313 LBC Express, Inc. P 11 A-314 LBC Express, Inc. 25 Jun- 18.21 P 11-A-315 LBC Express, Inc. 14 P-11 A 316 LBC Express, Inc. 18.21 P 11-A-317 LBC Express, Inc. 06-Jun- P 11-A-318 LBC Express, Inc. 14 18.21 P 11 A 319 LBC Express, Inc. P-11-A320 LBC Express, Inc. 28-Jun- 10.71 P 11-A-321 LBC Express, Inc. 14 P-11-A354 LBC Express, Inc. P-11-A-355 LBC Express, Inc. 11-Jun- P 11 A-356 LBC Express, Inc. 14 P 11 A 357 LBC Express, Inc. P-11-A-358 LBC Express, Inc. 12-Jun- P-11-A359 LBC Express, Inc. 14 P 11-A-403 LBC Express, Inc. 03-Jun 14 SUG01163826 10-Jul-14 18.21 SUG01165036 23-Jul-14 18.21 SUG01164492 17-Jul-14 18.21 SUG01163108 03-Jul-14 18.21 SUG01163687 09-Jul-14 18.21 SUG01164902 22-Jul-14 10.71 SUG01163110 03-Jul-14 18.75 SUG01164126 13-Jul-14 18.21 SUG01164047 12-Jul-14 26.79 SUG01165763 31-Jul-14 14.46 01165860 01-Aug- 01166957 18.21 I 01166956 14 01167082 12-Aug- 26.79 14 18.21 I 12-Aug- _J I 14 13-Aug- 18.21 14 031000062876 19-Jul-14 18.75 21-Aug 01167918 14 81.96 ' SUG01168884 02-Sep-14 14.46 ~

DECISION CTA Case No. 9369 Page 40 of60 P-11-A-404 LBC Express, Inc. SUG01169367 05-Sep-14 26.79 P-11-A-405 LBC Express, Inc. P-11-A-406 LBC Express, Inc. SUG01169763 10-Sep-14 26.79 P-11-A-407 LBC Express, Inc. P-11-A-437 LBC Express, Inc. SUG01169914 19-Sep-14 18.21 P 11-A-438 LBC Express, Inc. P-11-A-439 LBC Express, Inc. SUGO 1170742 11-Sep-14 11.25 P-11 A-440 LBC Express, Inc. P-11-A-441 LBC Express, Inc. SUG01171819 01-0ct-14 18.21 P-11-A-442 LBC Express, Inc. P-11-A 443 LBC Express, Inc. SUGO 1173323 16-0ct-14 18.21 P 11-A-444 LBC Express, Inc. P 11 A-445 LBC Express, Inc. SUGO 1173076 14-0ct-14 18.21 P-11 A-446 LBC Express, Inc. P 11-A-447 LBC Express, Inc. SUG01174416 28-0ct-14 10.71 P-11-A-448 LBC Express, Inc. P-11-A-449 LBC Express, Inc. SUG01173170 15-0ct-14 18.21 P-11-A-450 LBC Express, Inc. P11-A451 LBC Express, Inc. SUG01173609 19-0ct-14 41.79 P-11-A452 LBC Express, Inc. P-11-A-453 LBC Express, Inc. SUG01172122 03-0ct-14 18.21 P-11-A-489 LBC Express, Inc. P-11-A-490 LBC Express, Inc. SUG01173607 19-0ct-14 18.21 P-11-A-491 LBC Express, Inc. P-11-A-492 LBC Express, Inc. SUGO 1172874 11-0ct-14 10.71 P 11-A 493 LBC Express, Inc. P 11 A-494 LBC Express, Inc. SUG01173696 20-0ct-14 44.46 SUG01174002 23-0ct-14 11.25 SUGO 1172558 08-0ct-14 10.71 SUG01172147 03-0ct-14 10.71 SUGO 1172758 10-0ct-14 18.21 SUGO 1172876 11-0ct-14 26.79 SUG01174214 26-0ct-14 26.79 SUGO 1174537 29-0ct-14 26.79 SUG01174860 03-Nov- SUG01175407 14 18.21 SUG01175488 07-Nov- SUG01175742 14 18.21 SUG01175741 10-Nov- SUG01175939 14 18.21 11-Nov- 14 26.79 11-Nov- 14 18.21 13-Nov- 14 42.32 ..l'l ...

DECISION CTA Case No. 9369 Page 41 of60 P-11-A-495 LBC Express, Inc. SUGO 1176068 15-Nov- 26.79 14 18.21 P-11-A-496 LBC Express, Inc. SUG01176861 10.71 22-Nov- 10.71 P-11-A-497 LBC Express, Inc. SUG01177533 14 26.79 26.79 P-11-A-498 LBC Express, Inc. SUGO 1176939 29-Nov- 18.21 14 18.21 P-11-A-557 LBC Express, Inc. SUG01180395 26.79 23-Nov- 26.79 P-11-A-558 LBC Express, Inc. SUG01178103 14 26.79 26.79 P-11-A-559 LBC Express, Inc. SUGO 1178774 28-Dec- 18.21 14 26.79 P-11-A-560 LBC Express, Inc. SUGO 1178903 05-Dec- 2,014.29 P-11-A-561 LBC Express, Inc. SUG01178773 14 136,741.38 P-11-A-562 LBC Express, Inc. SUGO 1179067 13-Dec- 858.00 14 1,388.00 P-11-A-563 LBC Express, Inc. SUG01179422 14-Dec- 727.00 P-11-A-564 LBC Express, Inc. SUG01179423 14 528.00 432.00 P-11-A-565 LBC Express, Inc. SUG01179381 13-Dec- 14 75.76 P-11-A-566 LBC Express, Inc. SUGO 1179383 16-Dec- 180.29 INPUT VAT SUPPORTED BY BILLING STATEMENTS 14 49.20 J .A.R.C. Construction 19-Dec- 131.03 14 P-11-A-53 Company 0205 189.23 19-Dec- 73.31&~ .... Infor International Software, 14 P-11-A-552 Inc. 0169 19-Dec- 14 INPUT VAT SUPPORTED BY STATEMENT OF ACCOUNTS 19-Dec- P-11-A-133 Wayfair Tours, Inc. 1755 14 P-11-A-134 Wayfair Tours, Inc. 1950 24-Jan- 14 P-11-A-135 Wayfair Tours, Inc. 1957 17-Dec- P-11-A-136 Wayfair Tours, Inc. 2060 14 P-11-A-137 Wayfair Tours, Inc. 2059 11-Feb-14 22-Feb-14 P-11-A-76 22-Feb-14 28-Feb-14 andP-11-A- 28-Feb-14 76.1 PLDT PHILCOM 0215201204 01-Jan- 14 P-11-A-77 01-Jan- andP-11-A- 14 77.1 PLDT PHILCOM 0215201342 0 1-Jan- 14 P-11-A-79 01-Jan- andP-11-A- 14 79.1 Smart Broadband, Inc. 0215267508 01-Feb-14 01-Feb-14 P-11-A-80 Smart Broadband, Inc. 0215267695 P-11-A-126 andP-11-A- PLDT PHILCOM 0218340178 PLDT PHILCOM 0218339433 126.1 P-11-A-127

DECISION CTA Case No. 9369 Page 42 of60 and P-11-A- Smart Broadband, Inc. 0218407135 01-Feb-14 116.36 127.1 Smart Broadband, Inc. 49.20 PLDT PHILCOM 0218405506 01-Feb-14 195.45 P-11-A-128 PLDT PHILCOM 221504844 74.29 and P-11-A- Smart Broadband, Inc. 221503707 01-Mar- 49.20 Smart Broadband, Inc. 221569828 14 163.75 128.1 221570600 1,248.00 P-11-A-129 01-Mar- 93.93 and P-11-A- 2259 14 202.21 134.45 129.1 01-Mar- 1,006.00 P-11-A-165 14 1,006.00 andP-11-A- 180.07 01-Mar- 89.02 165.1 14 31.25 P-11-A-166 62.29 andP-11-A- 14-Mar- 84.03 14 49.20 166.1 P-11-A-170 -~ and P-11-A- 170.1 P-11-A-171 and P-11-A- 171.1 P-11-A-176 Wayfair Tours, Inc. 224693030 01-Apr-14 P-11-A-216 PLDT PHILCOM and P-11-A- PLDT PHILCOM 224693601 01-Apr-14 Smart Broadband, Inc. 216.1 224759390 01-Apr-14 P-11-A-217 2809 andP-11-A- 2852 05-Apr-14 217.1 227908673 08-Apr-14 P-11-A-220 227908863 and P-11-A- 231137368 01-May- 14 220.1 01-May- P-11-A-222 Wayfair Tours, Inc. 14 P-11-A-223 Wayfair Tours, Inc. 01-Jun- P-11-A-243 PLDT PHILCOM 14 and P-11-A- PLDT PHILCOM PLDT PHILCOM 224759133 01-Apr-14 243.1 Smart Broadband, Inc. P-11-A-244 Smart Broadband, Inc. 231203985 01-Jun- andP-11-A- Smart Broadband, Inc. 14 Wayfair Tours, Inc. 227976384 244.1 3300 01-May- P-11-A-245 14 and P-11-A- 10-Mav- 245.1 P-11-A-246 and P-11-A- 246.1 P-11-A-247 and P-11-A- 247.1 P-11-A-248 and P-11-A- 248.1 P-11-A-250

DECISION CTA Case No. 9369 Page 43 of60 P-11-A-251 Wayfair Tours, Inc. 3368 14 1,356.00 P-11-A-282 PLDT PHILCOM 231137024 15-May- 1,200.00 andP-11-A- PLDT PHILCOM 231137368 Smart Broadband, Inc. 227975806 14 84.60 282.1 Smart Broadband, Inc. 231203485 P-11-A-283 Smart Broadband, Inc. 234451216 0 1-Jun- 172.49 and P-11-A- Smart Broadband, Inc. 14 231203985 88.21 283.1 3669 0 1-Jun- P-11-A-291 3623 14 49.20 andP-11-A- 3966 01-May- 156.67 291.1 0237705407 14 P-11-A-292 49.20 andP-11-A- 0234384694 01-Jun- 883.00 14 1,211.00 292.1 0234383651 432.00 P-11-A-293 234451216 01-Jul-14 and P-11-A- I 0237773871 01-Jun- 293.1 14 47.62 P-11-A-294 0227975806 and P-11-A- 04-Jun- 107.67 0234451216 14 294.1 191.96 0235551353 29-May- (156.67) P-11-A-296 Wayfair Tours, Inc. 4015 14 4352 I P-11-A-297 Wayfair Tours, Inc. 1348 26-Jun- 14 142.78 P-11-A-298 Wa_yfair Tours, Inc. P-11-A-325 PLDT PHILCOM 01-Aug- 88.21 and P-11-A- PLDT PHILCOM 14 PLDT PHILCOM 156.67 325.1 PLDT PHILCOM 0 1-Jul-14 P-11-A-326 PLDT Smart Broadband Inc. 98.40 andP-11-A- Smart Broadband, Inc. 0 1-Jul-14 Smart Broadband, Inc. 0 1-Jul-14 432.00~ 326.1 Smart Broadband, Inc. P-11-A-327 01-Aug- 978.00 and P-11-A- 14 'iii [_.. 327.1 01-May- P-11-A-328 14 P-11-A-329 andP-11-A- 0 1-Jul-14 329.1 01-Jul-14 P-11-A-338 30-Jun- and P-11-A- 14 338.1 P-11-A-339 30-Jul-14 and P-11-A- 08-Aug- 339.1 P-11-A-340 andP-11-A- 340.1 P-11-A-342 Wayfair Tours, Inc. P-11-A-343 Wayfair Tours, Inc. _P-11-A-353 JLD Travel & Tours Corp.

DECISION CTA Case No. 9369 Page 44 of60 P-11-A-366 PLDT PHILCOM 0234383651 14 280.94 and P-11-A- PLDT PHILCOM PLDT PHILCOM 0237705591 01-Jul-14 172.49 366.1 PLDT PHILCOM P-11-A-367 PLDT PHILCOM 0241009081 01-Aug- 97.36 and P-11-A- PLDT Smart Broadband Inc. 14 0241008041 20.98 367.1 01-Sep-14 P-11-A-368 0241008041 65.46 andP-11-A- 01-Sep-14 0237773871 18.05 368.1 4435 01-Sep-14 P-11-A-369 4537 49.20 andP-11-A- 4436 01-Aug- 864.00 4437 14 883.00 369.1 4541 864.00 P-11-A-370 4542 04-Aug- 864.00 andP-11-A- 4543 14 4613 42.00 370.1 4610 08-Aug- 84.00 P-11-A-371 4612 14 84.00 andP-11-A- 4609 451.00 4660 04-Aug- 95.00 371.1 4665 14 42.00 4662 883.00 P-11-A-375 Wayfair Tours, Inc. 4703 04-Aug- 299.00 4703 14 479.00 P-11-A-376 Wayfair Tours, Inc. 4693 479.00 4694 08-Aug- 299.00 P-11-A-377 Wayfair Tours, Inc. 14 299.00 624.00 P-11-A-378 Wayfair Tours, Inc. 08-Aug- 14 -t"l.. P-11-A-379 Wayfair Tours, Inc. 08-Aug- P-11-A-380 Wayfair Tours, Inc. 14 P-11-A-381 Wayfair Tours, Inc. 14-Aug- 14 P-11-A-382 Wayfair Tours, Inc. 14-Aug- P-11-A-383 Wayfair Tours, Inc. 14 P-11-A-384 Wayfair Tours, Inc. 14-Aug- 14 P-11-A-385 Wayfair Tours, Inc. P-11-A-386 Wayfair Tours, Inc. 14-Aug- P-11-A-387 Wayfair Tours, Inc. 14 P-11-A-388 Wayfair Tours, Inc. P-11-A-389 Wayfair Tours, Inc. 15-Aug- P-11-A-390 Wayfair Tours, Inc. 14 P-11-A-391 Wayfair Tours, Inc. P-11-A-392 Wayfair Tours, Inc. 15-Aug- 14 15-Aug- 14 19-Aug- 14 19-Aug- 14 19-Aug- 14 19-Aug-

DECISION CTA Case No. 9369 Page 45 of60 P-11-A-393 Wayfair Tours, Inc. 4721 14 271.00 P-11-A-394 Wayfair Tours, Inc. 4753 22-Aug- 598.00 P-11-A-395 Wayfair Tours, Inc. 4838 479.00 4815 14 294.00 P-11-A-396 Wayfair Tours, Inc. 23-Aug- 534.00 P-11-A-409 PLDT PHILCOM and P-11-A- PLDT PHILCOM 14 Smart Broadband Inc. 29-Aug- 409.1 Smart Broadband Inc. P-11-A-410 14 andP-11-A- 29-Aug- 410.1 14 P-11-A-412 andP-11-A- 0241009081 01-Sep-14 172.49 412.1 0244342640 01-0ct-14 206.17 P-11-A-413 and P-11-A- 0241075473 01-Sep-14 134.44 413.1 0241075003 01-Sep-14 49.20 299.00 P-11-A-419 Wayfair Tours, Inc. 4907 03-Sep-14 5,980.00 598.00 P-11-A-420 Wayfair Tours, Inc. 4902 03-Sep-14 598.00 451.00 P-11-A-421 Wayfair Tours, Inc. 4975 06-Sep-14 P-11-A-422 Wayfair Tours, Inc. 4977 06-Sep-14 P-11-A-423 Wayfair Tours, Inc. 5073 12-Sep-14 P-11-A-459, PLDT PHILCOM P-11-A-459.1, PLDT PHILCOM 0244342640 01-0ct-14 172.49 P-11-A-459.2 and P-11-A- 0244343397 01-0ct-14 94.91 49.20 459.3 655.00 P-11-A-460, 864.00 P-11-A-460.1 1,310.00 andP-11-A- 328.00 682.00 461 864.00 ~ P-11-A-465 Smart Broadband Inc. 0244410770 01-0ct-14 P-11-A-467 Wayfair Tours, Inc. 5311 27-Sep-14 P-11-A-468 Wayfair Tours, Inc. 5447 04-0ct-14 P-11-A-469 Wayfair Tours, Inc. P-11-A-470 Wayfair Tours, Inc. 5432 03-0ct-14 P-11-A-471 Wayfair Tours, Inc. P-11-A-472 Wayfair Tours, Inc. 5473 07-0ct-14 5508 08-0ct-14 5807 23-0ct-14

DECISION CTA Case No. 9369 Page 46 of60 P-11-A-473 Wayfair Tours, Inc. 5796 23-0ct-14 642.00 5792 P-11-A-474 Wayfair Tours, Inc. 5864 24-0ct-14 299.00 P-11-A-475 Wayfair Tours, Inc. 0229859331 27-0ct-14 902.00 P-11-A-506 PLDT PHILCOM and P-11-A- PLDT PHILCOM 0229860097 01-Nov- 82.15 5912 14 506.1 5927 P-11-A-507 5928 01-Nov- 65.45 and P-11-A- 6016 14 6064 508 6200 6205 P-11-A-525 Wayfair Tours, Inc. 6210 30-0ct-14 1,804.00 6267 P-11-A-526 Wayfair Tours, Inc. 6324 31-0ct-14 69.00 6325 P-11-A-527 Wayfair Tours, Inc. 6342 31-0ct-14 42.00 6349 05-Nov- 902.00 P-11-A-528 Wayfair Tours, Inc. 6409 14 1,284.00 08-Nov- 432.00 P-11-A-529 Wayfair Tours, Inc. 0251083469 14 1,798.00 14-Nov- 328.00 P-11-A-530 Wayfair Tours, Inc. 0251083849 14 655.00 6512 14-Nov- 432.00 P-11-A-531 Wayfair Tours, Inc. 6570 14 328.00 6633 14-Nov- 451.00 P-11-A-532 Wayfair Tours, Inc. 14 354.00 - ------�----- 19-Nov- 887.00 P-11-A-533 Wayfair Tours, Inc. 14 22-Nov- P-11-A-534 Wayfair Tours, Inc. 14 22-Nov- P-11-A-535 Wayfair Tours, Inc. 14 P-11-A-536 Wayfair Tours, Inc. 26-Nov- P-11-A-537 Wayfair Tours, Inc. 14 26-Nov- P-11-A-538 Wayfair Tours, Inc. 14 P-11-A-573 PLDT PHILCOM, INC. 28-Nov- and P-11-A- PLDT PHILCOM, INC. 14 573.1 01-Dec- 93.49 P-11-A-574 14 and P-11-A- 01-Dec- 129.05 574.1 14 1,804.00 P-11-A-579 Wayfair Tours, Inc. 06-Dec- 864.00 14 P-11-A-580 Wayfair Tours, Inc. 432.00 P-11-A-581 Wayfair Tours, Inc. 11-Dec- p 200,184.83..!1 14 --------- 15-Dec- 14 Total

DECISION CTA Case No. 9369 Page 47 of60 Only the amount of P69,962.75 (P979,540.45 less the sum of P709,392.87 and P200, 184.83) represents petitioner's valid input VAT on domestic purchases of services and goods other than capital goods, detailed as follows: Exhibit Supplier Name Document No. Date ~ Input VAT P-11-A- Absolute Essentials 000500 Traders Incorporated 102550 21-Jan-14 p 578.57 47 Bad- As Petron Station 102778 P-11-A- (Lourberto S. Lerio) 102816 05-Jan-14 32.14 Bad- As Petron Station 48 (Lourberto S. Lerio) 001000 11-Jan-14 10.71 P-11-A- Bad- As Petron Station (Lourberto S. LerioJ 001053 13-Jan-14 53.57 49 Claver General P-11-A- Merchandise (Jerry S. 006022 16-Jan-14 166.07 Mainit) 50 Claver General 005965 16-Jan-14 128.57 Merchandise (Jerry S. 15044 P-11-A- Mainit) 6120 13-Jan-14 85.71 51 Ocean Bounties Seafood Market & Restaurant A2275 21-Jan-14 82.50 P-11-A- (Ocean Bounties Fresh 018128 14-Jan-14 24.70 52 & Frozen Foods Inc) 018135 03-Jan-14 158.28 Ocean Bounties Seafood 018138 P-11-A- Market & Restaurant 018167 12-Feb-14 69.64 73 (Ocean Bounties Fresh 07-Feb-14 512.04 & Frozen Foods Inc) 0454 08-Feb-14 163.82 P-11-A- Palma Superstore 09-Feb-14 104.25 74 (Palma, Joselito Ramos) 0455 13-Feb-14 000687 78.00 P-11-A- Rose Pharmacy, Inc. 05-Feb-14 75 48.75 Almont Hotel & Inland 05-Feb-14 P-11-A- Resort (Almont Hotel 26-Feb-14 1,211.79 78 Inc) 6.21. la.t. Brilliant Star Food P-11-A- Corporation 82 Brilliant Star Food Corporation P-11-A- Brilliant Star Food 83 Corporation Brilliant Star Food P-11-A- Corporation 84 Butuan Grand Palace Restaurant (Karaga 4 P-11-A- Aces Development Corp) 85 Butuan Grand Palace Restaurant (Karaga 4 P-11-A- Aces Development Corp) 86 Doctor's Choice P-11-A- 87 P-11-A- 88 P-11-A-

DECISION CTA Case No. 9369 Page 48 of60 89 Pharmacy Co. 0167 09-Feb-14 43.18 Figaro Coffee Shop 6250 10-Feb-14 85.71 P-11-A- (Cebu Knotsberry Food 436430 10-Feb-14 79.59 90 Corp) Freemont Foods 0272 10-Feb-14 53.57 P-11-A- Corporation 91 Gaisano Superstore 000076 08-Feb-14 10.71 (lnterpace Corporation) P-11-A- Gerry's Grill (MM 26980 09-Feb-14 157.93 92 Cuisine Connoisseurs Inc) 31598 06-Feb-14 106.93 P-11-A- Gevans General 93 Merchandise (Shaine 31639 15-Feb-14 68.14 Oliver V.Tamayo) P-11-A- Goat 2geder Hotel & 49268 09-Feb-14 57.86 94 Restaurant (Kim Lian T. Tan) 49261 08-Feb-14 72.43 P-11-A- Greenwich Golden Lion 95 Pizza (Surigao) 49279 11-Feb-14 103.50 Corporation P-11-A- Greenwich Golden Lion 49326 15-Feb-14 37.93 96 Pizza (Surigao) Corporation 15386 05-Feb-14 35.36 P-11-A- Jollibee Golden Lion 1572 15-Feb-14 22.18 97 Foods (Surigao) 1567 14-Feb-14 44.36 Corporation 005843 27-Feb-14 86.79 P-11-A- Jollibee Golden Lion 35846 11-Feb-14 128.57 98 Foods (Surigao) CG-L0594149-5 07-Mar-14 334.26 Corporation 29101 19-Feb-14 26.79 P-11-A- Jollibee Golden Lion 97073 28-Feb-14 278.57 99 Foods (Surigao) 58532 08-Feb-14 Corporation 8.04.: If... P-11-A- Jollibee Golden Lion 100 Foods (Surigao) Corporation P-11-A- Jollibee Golden Lion 101 Foods (Surigao II) Corporation P-11-A- Mang !nasal Restaurant 102 (L. Cubillan) Mang !nasal Restaurant P-11-A- (L. Cubillan) 120 Nickel Sales Center (Jerick Chua Cubillan) P-11-A- 121 Peng-U Ventures, Inc. P-11-A- Philippine Ports 122 Authority PIGAR Trading (Pigar, P-11-A- Cesar So) 123 Southwinds Hotel (Jose C. Agudo Ill) P-11-A- Surigaonon Visayan 124 Marketing Corporation P-11-A- 125 P-11-A- 130 P-11-A- 131

DECISION CTA Case No. 9369 Page 49 of60 P-11-A- Webforge Philippines, PH16848 12-Feb-14 5,100.51 138 Inc. 1327 04-Mar-14 92.14 ASM FOODS (AURELIO 917 24-Mar-14 41.57 P-11-A- S. MARASIGAN, JR.) 27-Mar-14 36.32 139 ASM FOODS (AURELIO 25-Mar-14 S. MARASIGAN, JR.) 26-Feb-14 334.82 P-11-A- 28-Feb-14 246.16 140 CafeFrance Corp. 3173 07-Mar-14 12964 27-Mar-14 77.14 P-11-A- Copylandia Office 58077 501.39 141 Systems Corporation 28-Mar-14 150.21 Mercury Drug 09-Mar-14 P-11-A- Corporation 04-Mar-14 59.89 142 12-Mar-14 117.32 Moraco Food Corp. 4012 01-Feb-14 P-11-A- CG-L0594149-5 38.62 161 Philippine Ports 05-Mar-14 19.44 Authority 05-Mar-14 5,760.00 P-11-A- 162 PHO NAM, INC. 1533 14-Jan-14 2.68 1165 6.38 P-11-A- Rosario's Seafood 22-Agr-14 163 Restaurant & Grillhouse 27-Mar-14 214.29 Chinese Cuisine P-11-A- 25-Jan-14 163.93 164 Rose Pharmacy, Inc. 48 03-Apr-14 1,025.91 29-Mar-14 P-11-A- Rose Pharmacy, Inc. 30 04-Apr-14 548.57 167 22-Apr-14 38.79 Smart Broadband, Inc. PGQOR000058916 19.29 P-11-A- 168 Traknology Incorporated 1039 166.07 P-11-A- Tri-Mix Enterprises (B. 55150 27.21"'~ 169 KIM LEASING & 2088 DEVELOPMENT P-11-A- CORPORATION) 103440 172 Uni-City General Merchandise Inc. 106053 P-11-A- A. Zarate General 756 173 Hospital (Albert L. Zarate) 88978 P-11-A- A. Zarate General 838 174 Hospital (Albert L. Zarate} 169640 P-11-A- Absolute Essentials 25034 175 Traders Incorporated 439070 D & L Medical P-11-A- Equipments Supplies 177 (Sheridan L. Castro) Doctor's Choice P-11-A- Pharmacy Co. 178 E. Simtoco Enterprises (Elisa T. Simtoco) P-11-A- Gaisano City-Mall 179 (Unipace Corp.) Gaisano Superstore P-11-A- Butuan City Branch 180 P-11-A- 181 P-11-A- 182 P-11-A- 183 P-11-A- 184

DECISION CTA Case No. 9369 Page 50 of60 P-11-A- Jerome Anthony S. 321 09-Apr-14 48.00 185 Asuncion, MD, FPOA 1754 19-Apr-14 51.00 P-11-A- Mang !nasal Restaurant 5472 11-Apr-14 590.61 197 637-10122 30-Jan-14 63.75 Megavalue Drugstore 637-10090 14-Jan-14 13.50 P-11-A- (MEGAVALUE TRADE 637-10104 20-Jan-14 27.00 198 SALES CORP.) 637-10100 19-Jan-14 Mercury Drug 637-10108 22-Jan-14 158.14 P-11-A- Corporation 637-10110 25-Jan-14 67.50 199 Mercury Drug 637-10264 12-Apr-14 24.43 Corporation 637-10283 22-Apr-14 351.05 P-11-A- Mercury Drug 114-32531 16-Jan-14 517.18 200 Corporation 114-32534 17-Jan-14 60.11 Mercury Drug 114-32526 19-Jan-14 66.86 P-11-A- Corporation 114-32536 21-Jan-14 19.26 201 Mercury Drug 531-10299 21-Jan-14 53.04 Corporation 11-Apr-14 66.54 P-11-A- Mercury Drug 454 07-Apr-14 107.14 202 Corporation 31856 03-Apr-13 66.96 Mercury Drug 29794 06-Apr-14 72.86 P-11-A- Corporation 31852 30-Mar-14 33.43 203 Mercury Drug 18102 09-Apr-14 52.04 Corporation 1380 20-Mar-14 94.18 P-11-A- Mercury Drug 4277 16-Apr-17 112.53 204 Corporation 4743 15.75 Mercury Drug 29-May-14 P-11-A- Corporation 31353 23-Apr-14 75.00 205 Mercury Drug 31887 Corporation . 90.86, P-11-A- Mercury Drug 206 Corporation Mercury Drug P-11-A- Corporation 207 Oro Celestial Petron Service Station P-11-A- Pigar Trading (Pigar 208 Cesar So) Pigar Trading (Pigar P-11-A- Cesar So) 209 Pigar Trading (Pigar Cesar So) P-11-A- 210 Rose Pharmacy, Inc. P-11-A- Rose Pharmacy, Inc. 211 C & C Pharmacy - P-11-A- branch (Anecita C. Uy) 212 C & C Pharmacy - bracnh (Anecita C. Uy) P-11-A- Cagayan River View Inn 213 & Restaurant (Tansitiam & Sons, Inc.) P-11-A- Greenwich Golden Lion 214 Pizza (Surigao) P-11-A- 215 P-11-A- 218 P-11-A- 219 P-11-A- 224 P-11-A- 225 P-11-A- 226 P-11-A- 227

DECISION CTA Case No. 9369 Page 51 of60 P-11-A- Corporation 26688 29-May_-14 192.86 239 Metro sphere HOOO- 19-May-14 1,071.43 Corporation - Ellis 000000002081 19-May-14 P-11-A- Ecotel HOOO- 11-May-14 128.57 241 Philippine Ports 000000002082 02-May-14 160.71 Authority 756210 02-May-14 P-11-A- Philippine Ports 5644 06-Jun-14 97.29 242 Authority 5642 19-Jun-14 84.10 109117 04-Jun-14 10.71 P-11-A- Starlane Caltex Station 18434 02-Jul-14 280.71 249 123690 53.57 Asialink Central Mall, 06-Jun-14 97.61 P-11-A- Incorporated 508 252 Asialink Central Mall, 12-Jun-14 40.61 Incorporated 32061 P-11-A- 01-Jun-14 53.57 253 Bad-as Petron Station 9780 20-Jun-14 20.46 P-11-A- Dales Food Haus 49991 254 20-Jun-14 47.36 Gardenstate 15827 P-11-A- Enterprises, Inc. 19-Jun-14 51.43 255 Greenwich (Fresh N' 15828 09-Jun-14 Famous Foods, IncJ 07-Jun-14 131.57 P-11-A- Greenwich Golden Lion 18187 30.86 256 Pizza (Surigao) 35101 18-Jun-14 75.00 Corporation 1653 P-11-A- GV Hotel - Cagayan 19-Jun-14 60.00 257 Branch (Vismin GV 64 29-May-17 Hotel Inc.) 17-Jun-14 60.00 P-11-A- Jollibee Golden Lion 347 53.04 258 Foods (Surigao) 30253 80.79 Cor_poration P-11-A- Jollibee Golden Lion 599 259 Foods (Surigao II) Corporation P-11-A- Jollibee Golden Lion 260 Foods (Surigao II) Corporation P-11-A- Lutong Bahay ni Aling 261 Cora Restaurant (Corazon Uy Yu) P-11-A- Margarita Mobile Shop 262 (Lim, Cindy Enrile) Margarita Mobile Shop P-11-A- (Cindy E. Lim) 274 Marlowe S. Indo Internal Medicine & P-11-A- Neurology Clinic 275 Marlowe S Indo Internal Medicine & Neurology P-11-A- Clinic 276 Mercury Drug Corporation P-11-A- Moon Cafe (Cebu 277 Knotsberry Foods P-11-A- 278 P-11-A- 279 P-11-A- I 280

DECISION CTA Case No. 9369 Page 52 of60 P-11-A- Corporation) 209469 16-Jun-14 17.52 281 New Family Drug & 60538 25-Jun-14 125.25 General Merchandise P-11-A- Ra PHOENIX GAS 333 21-May-14 69.64 284 STATION 2904 19-Jun-14 81.96 Red Ribbon - Robinsons 25098 20-May-14 16.15 P-11-A- Butuan (Red Ribbon 24393 21-May-14 71.33 285 Bakeshop Inc.) 17302 03-Jun-14 186.97 347 02-Jun-14 93.86 P-11-A- Rosecake Specialties 35298 21-May-14 31.07 286 2142 25-Jun-14 51.00 Rose Pharmacy, Inc. 025038 03-Jul-14 21,565.42 P-11-A- 287 Rose Pharmacy, Inc. 106786 21-May-14 32.14 P-11-A- Rose Pharmacy, Inc. 107600 18-Jun-14 32.14 288 Rose Pharmacy, Inc. 70575 21-Jul-14 160.71 P-11-A- 110777 15-Jul-14 16.07 289 Watsons Personal Care 108736 08-Jul-14 10.71 Stores (Phils.), Inc. 13397 14-Jul-14 P-11-A- 178.18 290 YC Rainbow Food, Inc. 204152 18-Jul-14 72.8t?_ P-11-A- American Technologies, 471645 26-Jul-14 295 Inc. 04-Jul-14 34.91 A. Zarate General 32171 14-Jul-14 P-11-A- Hospital (Albert L. 10-Jul-14 48.96 299 Zarate) 016357 A. Zarate General 2415 107.14 P-11-A- Hospital (Albert L. 428.57...-: ~ 300 Zarate) Almirante Shell Super ~ P-11-A- Station II (April Twinkle 301 Almirante Corral) Bad-as Petron Station P-11-A- (Lourberto S. Lerio) 302 Bad-as Petron Station (Lourberto S. Lerio) P-11-A- C & C Pharmacy- 303 Branch (Anecita C. Uy) CD-R King Gen. P-11-A- Merchandise (Haleiwa 304 International Corporation) P-11-A- Gaisano Superstore 305 Butuan City Branch (Interpace Corporation) P-11-A- Greenwich Golden Lion 306 Pizza (Surigao) Corporation P-11-A- Hemado Phoenix Fuel 307 Business Trading (Ma. Theresa L. Docallos) P-11-A- 308 Hotel Karaga Inc. P-11-A- 309 P-11-A- 310 P-11-A- 311

DECISION CTA Case No. 9369 Page 53 of60 P-11-A- Ocean Bounties Seafood 007526 11-Jul-14 182.14 322 Market & Restaurant CG-L0594149-5 07-Mar-14 (334.26) (Ocean Bounties 12-Jul-14 P-11-A- Seafood Market and 34328 11-Jul-14 111.86 323 Restaurant) 16320 21-Jun-14 90.54 Philippine Ports 0054 16-Jul-14 P-11-A- Authority 18130 01-Jul-14 193.90 324 Pigar Trading (Cesar So 25207 20-Jun-14 186.94 Pigar) 25178 20-Jun-14 P-11-A- 25177 27-Jun-14 28.65 330 Rose Pharmacy, Inc. 25199 21-Jun-14 148.19 0411 05-Aug-14 123.94 P-11-A- Rose Pharmacy, Inc. 71033 19-Jul-14 331 8209 04-Aug-14 I Rose Pharmacy, Inc. 111561 08-Aug-14 P-11-A- 110441 10-Aug-14 162.80 i 332 Rose Pharmacy, Inc. 110567 27-Aug-14 019026 30-Jun-14 188.12 I P-11-A- Rose Pharmacy, Inc. 032368 07-Aug-14 333 29275 19-Aug-14 160.71 Rose Pharmacy, Inc. 28336 15-Aug-14 26.89 P-11-A- 20161 13-Aug-14 12.08 334 Rose Pharmacy, Inc. 255233 14-Aug-14 20.36 0770 15-Aug-14 25.22 P-11-A- Rose Pharmacy, Inc. 180402 19-Au_g-14 94.29 335 283574 23-Aug-14 13.04 Almirante Shell Super 283842 45.54 P-11-A- Station II 336 Asia Link Shopping 160.71 Center 202.~ P-11-A- Bad-as Petron Station 337 17.81 Bad-as Petron Station 107.14 P-11-A- 522.32 344 Bad-as Petron Station 122.16 P-11-A- Dales Food Haus 30.05 345 E.C. Nickel Drug P-11-A- Branch 346 Goat 2geder Hotel & Restaurant P-11-A- 347 Kingsway Inn P-11-A- Limbros Shell Service 348 Station New Family Drug & P-11-A- General Merchandise 349 Oro Celestial Petron Service Station P-11-A- 350 Pearlmont Inn P-11-A- People's Choice 351 Pharmacy People's Choice P-11-A- 352 P-11-A- 360 P-11-A- 361 P-11-A- 362 P-11-A- 363 P-11-A- 364 P-11-A-

DECISION CTA Case No. 9369 Page 54 of60 365 Pharmacy 001090 14-Aug-14 144.64 Rosario's Seafood 100487 21-Aug-14 390.00 P-11-A- Restaurant & Grillhouse 000120 14-Aug-14 142.02 372 Chinese Cuisine 29-Sep-14 1886 30-Sep-14 96.00 P-11-A- Southwinds Hotel 7598 29-Sep-14 720.25 373 10993 09-Sep-14 Thaore De Oro Food 544553 22-Sep-14 17.68 P-11-A- Corporation 465940 458.57 374 25-Sep-14 1 Windsoar Hotel 32514 12-Sep-14 43.23 P-11-A- 279403 05-Sep-14 397 Almont Hotel & Inland 29962 11-Sep-14 353.79 Resort 100812 10-Sep-14 16.39 P-11-A- Almont Hotel & Inland 775342 15-Sep-14 74.79 398 Resort 79019 26-Aug-14 Co Ban Kiat Hardware, 77458 05-Sep-14 1,032.86 P-11-A- Inc. 49157 08-Sep-14 214.29 399 Gaisano Superstore 11662 05-0ct-14 34.82 Butuan City Branch 19-0ct-14 72.32 P-11-A- Greenwich Golden Lion 7391 11-Apr-14 321.43 400 Pizza (Surigao) 8142 22-Apr-14 143.36 Corporation 105729 16-Aug-14 104.47 P-11-A- New Family Drug & 106034 06-Aug-14 139.29 401 General Merchandise 109408 24-0ct-14 32.14 109422 27-0ct-14 227.68 P-11-A- Rose Pharmacy, Inc. 2308 01-0ct-14 199.28 402 460739 32.14 Southwinds Hotel 470805 103.71 P-11-A- 26.23 408 Starlane Caltex Station -- 100.61 P-11-A- Surigaonon Visayan 411 Marketing Corporation Surigaonon Visayan P-11-A- Marketing Corporation 414 The Golden Peak Hotel & Suites P-11-A- 415 Alba Copy Center P-11-A- Almont Hotel & Inland 416 Resort Almont Hotel & Inland P-11-A- Resort 417 A. Zarate General Hospital P-11-A- A. Zarate General 418 Hospital A. Zarate General P-11-A- Hospital 424 A. Zarate General Hospital P-11-A- 425 Cafe Breton P-11-A- Gaisano Superstore 426 Butuan City Branch Gaisano Superstore P-11-A- 427 P-11-A- 428 P-11-A- 429 P-11-A- 430 P-11-A- 431 P-11-A- 432 P-11-A-

DECISION CTA Case No. 9369 Page 55 of60 433 Butuan City Branch 1597 15-0ct-14 403.93 P-11-A- 0800 15-0ct-14 82.50 Gerry's Grill 2873 28-0ct-14 85.18 434 11289 17-0ct-14 4.90 P-11-A- Greenwich 295237 02-0ct-14 32.92 295331 02-0ct-14 12.19 435 Janet C. De Grano, 645035 09-0ct-14 P-11-A- M.D. BP21- 31-0ct-14 225.00 000000075767 15-0ct-14 3,600.00 436 Mercury Drug 000126 16-Sep-14 P-11-A- 07790 14-0ct-14 33.97 New Family Drug & 2994 01-0ct-14 16.07 454 General Merchandise 6968 13-Sep-14 233.46 P-11-A- New Family Drug & 2711 53.57 General Merchandise 29-0ct-14 21.32 455 8445 15-Nov-14 P-11-A- Pats Electronics Shoppe 107981 I 22-Nov-14 456 Philippine Ports 460112 48.321 P-11-A- Authority 16-Nov-14 138.79 1775 457 Princity Inc. 30-0ct-14 33.69 P-11-A- 16355 17-Jul-14 Rophacs Venture 174643 17-Jul-14 136.07 458 Corporation 174644 18-Jul-14 P-11-A- 174698 23-Jul-14 109.93 Rose Pharmacy, Inc. 175054 39.64 462 16-0ct-14 39.64 P-11-A- United Bookstore- 10831 16-0ct-14 37.50 Butuan 10822 27.86 463 P-11-A- YHL Commercial 115.71 464 Asia Link Shopping -- 144.86~~.- P-11-A- Center (Melona Cuajao Regis) 466 El Cielito Inn (Los P-11-A- Angeles Corporation) Gaisano Superstore 476 Butuan City Branch (Interpace Corporation) P-11-A- Gerry's Grill (MM 477 Cuisine Connoisseurs Inc.) P-11-A- Jollibee Golden Lion 478 Foods (Surigao II) Corporation P-11-A- L. Mailig Store (Lourdes 479 G. Mailig) L. Mailig Store (Lourdes P-11-A- G. Mailig) 480 L. Mailig Store (Lourdes G. Mailig) P-11-A- L. Mailig Store (Lourdes 481 G. Mailig) Lasertech Copier P-11-A- Services (Elizalde L. 482 Nepomuceno) Lasertech Copier P-11-A- Services (Elizalde L. 483 P-11-A- 484 P-11-A- 485 P-11-A- 486 P-11-A- 487

DECISION CTA Case No. 9369 Page 56 of60 P-11-A- Nepomuceno) 11365 11-Nov-14 15.00 488 Lasertech Copier 338122 25-Nov-14 Services (Elizalde L. 342530 01-Dec-14 36.75 P-11-A- Nepomuceno) 004585 17 -Jul-14 499 New Family Drug & 004584 17 -Jul-14 31.97 General Merchandise 005493 16-Sep-14 45.43 P-11-A- (Lance Lemuel Ling Lim) 183308 12-Nov-14 49.60 500 New Family Drug & 002424 29-0ct-14 139.26 General Merchandise 450.00 P-11-A- (Lance Lemuel Ling Lim) 123317 11-Nov-14 70.57 501 Palma Commercial (James R. Palma) 003515 18-Nov-14 320.89 P-11-A- Palma Commercial 502 (James R. Palma) 003526 23-Nov-14 I Palma Commercial P-11-A- (James R. Palma) 01808 26-Nov-14 822.68 503 Pearlmont Inn (Perla G. 0166 13-Nov-14 G o til) 0402 21-Nov-14 208.47 P-11-A- Philippine Spring Water 0407 24-Dec-14 504 Resources, Inc. 144031 05-Jun-14 156.96 Prince Plaza Hotel & 101656 27-0ct-14 24.20 P-11-A- Restaurant (Operated 30404 27-0ct-14 48.22 505 by: Baguio AY & F Co., 2848 19-Nov-14 81.95 Inc.) 2867 19-Nov-14 P-11-A- Robinsons Department 24.56 509 Store - Butuan (Owned 125.36 and Operated by: 107.14 P-11-A- Robinsons Incorporated) 363.32 510 Robinsons Department 62.14 Store- Butuan (Owned P-11-A- and Operated by: ,...~ 511 Robinsons Incorporated) Rosario's Seafood P-11-A- Restaurant & Grillhouse 512 Chinese Cuisine (Operated by: New P-11-A- Rosario Food 513 Corporation) P-11-A- Rose Pharmacy, Inc. 514 Rose Pharmacy, Inc. P-11-A- 515 Rose Pharmacy, Inc. P-11-A- Gaisano Superstore 516 Butuan City Branch (lnterpace Corporation) P-11-A- Southwinds Hotel (Jose 517 C. Agudo Ill) Ultra Shell Motorist P-11-A- Center, Inc. 518 Uni-City General Merchandise, Inc. P-11-A- Uni-City General 519 P-11-A-

DECISION CTA Case No. 9369 Page 57 of60 520 Merchandise, Inc. 2868 19-Nov-14 72.86 P-11-A- Uni-City General 3155 30-Nov-14 171.42 Merchandise, Inc. 3153 30-Nov-14 183.00 521 Uni-City General P-11-A- Merchandise, Inc. 1457 29-0ct-14 55.71 Uni-City General 522 Merchandise, Inc. 8619 19-Dec-14 69.64 P-11-A- Unite General Merchandise (Rosario Q. 8526 07-Dec-14 51.43 523 Co) Almont Hotel & Inland 1839 14-Nov-14 43.93 P-11-A- Resort (Almont Hotel 524 Inc.) 1928 28-Nov-14 101.25 Asia Link Shopping 19723 22-Dec-14 32.14 P-11-A- Center (Melona Cuajao 539 Regis) 215283 09-Nov-14 8.57 Bo's Coffee (Samping 180961 17-Dec-14 6.75 P-11-A- Realty and Development 540 Corporation) 1918 12-Dec-14 39.64 Bo's Coffee (Samping 17814 04-Dec-14 150.00 P-11-A- Realty and Development 3269 05-Dec-14 85.71 541 Corporation) 3334 16-Dec-14 85.71 Claver Petron Station 1699 28-Nov-14 P-11-A- (Roland Entenia Mira) 1763 12-Dec-14 31.50 542 CD-R King Gen. 27339 17-Dec-14 31.50 Merchandise (Princess 52.07 P-11-A- Sapphire Corporation) 6311 12-Dec-14 543 E. Simtoco Enterprises 43.93 1 (Elisa T. Simtoco) 9318 19-Aug-14 P-11-A- Gerry's Grill (MM 17832 28-Nov-14 144.43 544 Cuisine Connoisseurs 2454 16-Dec-14 47.46 Inc.) 12.321. P-11-A- GMI Greatfit Makers 545 Inc. P-11-A- Hotel Karaga Inc. 546 Hotel Karaga Inc. P-11-A- 547 Hukad Butuan (VDCU Prince Hotel Inc.) P-11-A- Hukad Butuan (VDCU 548 Prince Hotel Inc.) Karjel Photoshoppe P-11-A- (Lourdes Navales Go) 549 Kenny Rogers Roasters (Epicurean Partners P-11-A- Echange Inc) 550 Lasertech Copier Services (Elizalde L. P-11-A- Nepomuceno) 551 Laughing Buddha Food Corp. P-11-A- Mang !nasal Restaurant 553 (L. Cubillan) P-11-A- 554 P-11-A- 555 P-11-A- 556 P-11-A- 567

DECISION CTA Case No. 9369 Page 58 of60 P-11-A- Mercury Drug 611-10252 10-Dec-14 184.66 568 Corporation 340-30679 22-Dec-14 215.14 Mercury Drug 12-Jul-14 P-11-A- Corporation 4503 26-Jul-14 38.04 569 Palma Commercial 4704 19-Dec-14 28.71 (James R. Palma) 9802 21-Dec-14 45.86 P-11-A- Palma Commercial 102614 0 1-Dec-14 139.29 570 (James R. Palma) 2590 03-Dec-14 91.05 Palma Commercial 3261 280.13 P-11-A- (James R. Palma) 571 Southwinds Hotel (Jose 1419 10-Dec-14 1,227.32 C. Agudo Ill) 0716 P-11-A- Uni-City General 0785 28-Nov-14 47.14 572 Merchandise, Inc. Uni-City General P-11-A- Merchandise, Inc. 575 Unite General P-11-A- Merchandise (Rosario Q. 576 Co) P-11-A- 577 Yahotsia Corp. P-11-A- Yahotsia Corp. 12-Dec-14 37.61 578 P-11-A- 582 P-11-A- 583 Total p 69,962.75 The valid input VAT of P69,962.75 should be reduced by Pl ,072.80 63, a portion attributable to petitioner's declared Exempt Sales/Receipts, hence, leaving a balance of P68,889.95. Since petitioner did not submit VAT invoices/receipts proving the existence of its reported input VAT carry-over from previous quarter in the amount of P21,001,409.5864 and the valid input VAT on domestic purchases of services and goods other than capital goods after deducting the amount attributable to exempt sales/receipts is only P68,889. 95, the net output VAT liability still has a balance ofP117,582.546s. The remaining output VAT due of P117,582.54 shall be offset against the input VAT on importation of capital goods exceeding Pl million and non-capital goods attributable to the declared zero-rated sales/receipts, thus, leaving an excess input VAT of P26,319,682.31 (P26,437,264.85 minus P117,582.54). 63 P69,962.75 x 1.5333885% (Allocation factor for exempt sales/receipts). 64 Exhibit "P-11-A-42", Line 20A. 65 Net Output VAT Payable (P186,472.49) minus P68,889.95.""""

DECISION CTA Case No. 9369 Page 59 of60 However, as stated earlier, petitioner was able to properly substantiate only the amount of P8,675,805,090.45 out of its total declared zero-rated sales/receipts of P8,800,661,932.71. Thus, the excess input VAT attributable to petitioner's valid zero-rated sales/receipts of P8,675,805,090.45 amounts only to P25,946,279.40, as computed below: Excess Input VAT attributable to declared zero- p 26,319,682.31 8,800,661,932.71 rated salesI receiQ_ts Divided by declared zero-rated salesI receipts X 8,675,805,090.45 Multiplied by valid zero-rated sales/receipts p 25,946,279.40 Refundable excess input VAT attributable to valid zero-rated sales/receipts In fine, petitioner has sufficiently proven its entitlement to a refund in the amount of P25,946,279.40 representing its unutilized excess input VAT for the four quarters of CY 2014 which is attributable to its zero-rated sales/receipts for the same period. WHEREFORE, in view of the foregoing, the instant Petition for Review is PARTIALLY GRANTED. Accordingly, respondent is ORDERED to refund or issue a tax credit certificate in favor of petitioner in the reduced amount of P25,946,279.40 representing its unutilized excess input VAT for the four quarters of CY 20 14. SO ORDERED. ~ .. 7�~--�~ CATHERINE T. MANAHAN Associate Justice I CONCUR: :J ~ ffl J6ANITO cC.-C-A~SeT:A/N.E.D~, JR. Associate Justice

DECISION CTA Case No. 9369 Page 60 of60 ATTESTATION I attest that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. ~~~ c. Q:l-~cls.t' ~ $JANITO C. CASTANEDA, JR. Associate Justice CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution and the Division Chairperson's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. Presiding Justice ~