MY SOLID TECHNOLOGIES & DEVICES CORPORATION v. COMMISSIONER OF INTERNAL REVENUE

Republic of the Phi li ppines COURT OF TAX APPEALS Quezon City FIRST DIVISION MY SOLID TECHNOLOGIES & CTA Case No. 8854 DEVICES CORPORATION, For: Assessment Petitioner, Members: -versus- DEL ROSARIO, P.J., Chairperson UY, and MINDARO-GRULLA, JJ . COMMISSIONER OF Promulgated: INTERNAL REVENUE, Respondent. ,. /I: 2 '1-o.- x------------------------------------------------------------------- ~----------------x DECISION MINDARO-GRULLA, ~.: This resolves the Petition for Review filed by My Solid Technologies and Devices Corporation pursuant to Section 7(a)(2)1 of Republic Act (RA) No. 11252, as amended, as well as Section 3(a)(2)3 1 Sec. 7. Jurisdiction.- The CTA shall exercise: (a) Exclusive appellate jurisdiction to review by appeal, as herein provided: (2) Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees of other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue, where the National Internal Revenue Code provides a specific period for action, in which case the inaction shall be deemed a denial; xxx. 2 Act Creating the Court of Tax Appeals. 3 Sec. 3. Cases within the jurisdiction ofthe Court in Division.- The Court in Division shall exercise: (a) Exclusive original over or appellate jurisdiction to review by appeal the following: (2) Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue, where the National Internal Revenue Code or other applicable law provides a specific period for action: Provide~ that in case of disputed assessments, the inaction of the Commissioner of Internal Revenue within the one hundred eighty day-period under Section 2228 of the National Internal Revenue Code shall be deemed a denial for purposes of allowing the taxpayer to appeal his case to the Court and does not necessarily constitute a formal decision of the Commissioner of Internal Revenue on the tax case; xxx. (.

CTA CASE NO. 8854 Page 2 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION of Rule 4 and Section 4(a)4 of Rule 8 of the Revised Rules of the Court of Tax Appeals, as amended, against the Commissioner of Internal Revenue. Petitioner My Solid Technologies and Devices Corporation seeks the cancellation and withdrawal of the assessment issued against it by the Commissioner of Internal Revenue for alleged deficiency value- added tax (VAT) covering the period from January 1, 2012 to June 30, 2012 in the aggregate amount of P65,928,415.74. Petitioner is a corporation duly organized and existing under Philippine laws.5 It is registered with the Bureau of Internal Revenue (BIR) with Taxpayer's Identification No. (TIN) 007-283-114-000, as evidenced by its Certificate of Registration No. OCN9RC0000312624 dated May 18, 2009.6 On the other hand, respondent is the duly appointed Commissioner of the Bureau of Internal Revenue who has the power to decide disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties imposed in relation thereto or other matters arising under the National Internal Revenue Code (NIRC) or other laws or portions thereof administered by the BIR. He holds office at the BIR National Office Building, Agham Road, Diliman, Quezon City. On April 23, 2012, petitioner filed its Quarterly VAT Return7 for the 1st quarter of 2012, but the said return was later amended on May 2, 2012.8 On May 29, 2012, the Securities and Exchange Commission (SEC) approved the Plan and Agreement and the Articles of Merger executed by petitioner, as the surviving corporation, and Mytel Mobility Solutions, Inc. ("Mytel" for brevity), as the absorbed corporation, on April 25, 2012.9 4 Sec. 4. Where to appeal� mode ofappeal. - (a) An appeal from a decision or ruling or the inaction of the Commissioner of Internal Revenue on disputed assessments or claim for refund of internal revenue taxes erroneously or illegally collected, the decision or ruling of the Commissioner of Customs, the Secretary of Finance, the Secretary of Trade & Industry, the Secretary of Agriculture, and the Regional Trial Court in the exercise of their original jurisdiction, shall be taken to the Court by filing before it a petition for review as provided in Rule 42 of the Rules of Court. The Court in Division shall act on the appeal. 5 Exhibits "P-8", and "P-7", Docket, vol. III, pp. 968 to 979 and 946 to 967, respectively 6 Par. 2, Joint Stipulation of Facts and Issues (JSFI), Docket, vol. I, pp. 270 to 271; Exhibit "P-9", Docket, vol. I, p. 228 7 Exhibit "P-3", Docket, vol. I, p. 152 8 Exhibit "P-4", Docket, vol. I, p. 161 9 Exhibit "P-7", Docket, vol. III, pp. 946 to 967 <

CTA CASE NO. 8854 Page 3 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Petitioner and Mytel both filed their respective Quarterly VAT Returns for the 2nd quarter of 2012 on July 25, 2012.10 On February 6, 2013, respondent issued a Letter of Authority (LOA) No. LOA-V08-2013-00000066 which authorized Revenue Officer Jasmin Pawingi and Group Supervisor Leonora Bornales to examine petitioner's books of accounts for the period covering January 1, 2012 to June 30, 2012 in connection with respondent's VAT Audit Program under Revenue Memorandum Order (RMO) No. 20-2012. The LOA was received by a certain Ms. Celeste H. Cerillo on February 8, 2013. 11 Respondent informed petitioner, through a Notice for an Informal Conference dated June 25, 2013, that the latter was found to be liable for deficiency VAT for the period covering January 1, 2012 to June 30, 2012 in the amount of P61,316,119.26. 12 Subsequently, respondent issued a Preliminary Assessment Notice (PAN) dated October 31, 2013 with attached Details of Discrepancies and received by petitioner on even date, assessing the latter for deficiency VAT in the aggregate amount of P61,449,073.64 covering the period of January 1, 2012 to June 30, 2012. 13 Respondent subsequently issued a Formal Assessment Notice (FAN)14 on December 2, 2013 with attached Details of Discrepancies, which petitioner received on December 3, 2013, requesting petitioner to pay the alleged deficiency VAT in the total amount of P65,928,415.74, computed as follows: 15 Taxable receipts per VAT returns p 340 184 183.99 Output tax 40 822 102.08 p 11,448 182.73 Less: Input tax carried over from previous quarter 40 017 741.93 Claimed input tax p 51 465 924.66 Total available input tax 11 448 182.73 40 017 741.93 Less: Disallowed IT carried over from previous quarter 10 159 773.44 (10 159 733.44) Unsupported input tax p 50,981 875.52 42 265.56 Excess IT carried over to succeeding quarter p 50 939 609.96 VAT Payable 14 988 805.78 Less: Payments per ITS p 65,928,415.74 Basic Value Added Tax due Add: Interest (7/26/12 to 1/14/14) Jotal Amount Due ----- ------ 10 Exhibits "P-5" and "P-6", Docket, vol. I, pp. 164 and 179 11 Par. 3, JSFI, Docket, vol. I, p. 271; Exhibit "R-1", BIR records, p. 4 12 Par. 4, JSFI, Docket, vol. I, p. 271; Exhibit "R-3", BIR records, pp. 188 to 189 13 Par. 5, JSFI, Docket, vol. I, p. 271; Exhibit "R-5", BIR records, pp. 205 to 206 14 Exhibit "P-1", Docket, vol. I, p. 130 15 Pars. 6 and 7, JSFI, Docket, vol. I, p. 271; Exhibit "R-6", BIR records, pp. 208 to 210 c

CTA CASE NO. 8854 Page 4 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Consequently, petitioner administratively protested the said assessment on January 2, 2014.16 Due to the inaction of respondent on petitioner's protest, the latter filed this Petition for Review17 on July 31, 2014. Respondent filed his Answer 18 on September 5, 2014 and interposed the following special and affirmative defenses: "6. Respondent reproduces and repleads all the foregoing allegations insofar as they are relevant to her defenses which are discussed hereunder and incorporates them herein by way of reference and, in addition thereto, most respectfully avers THAT: 7. Section 228 of the 1997 Tax Code partly reads as follows: 'Sec. 228. Protesting Assessment Such assessment may be protested administratively by filing a request for reconsideration or reinvestigation within thirty (30) days from receipt of the assessment in such form and manner as may be prescribed by implementing rules and regulations. Within sixty (60) days from filing of the protest, all relevant supporting documents shall have been submitted, otherwise, the assessment shall become final. If the protest is denied in whole or in part, or is not acted upon within one hundred eighty (180) days from submission of documents, the taxpayer adversely affected by the decision or inaction may appeal to the Court of Tax Appeals within thirty (30) days from receipt of the said decision, or from the lapse of one hundred eighty (180)-day period; otherwise, the decision shall become final, executory and demandable.' 16 Exhibit "P-2", Docket, vol. I, pp. 135 to 150 17 Docket, vol. I, pp. 6 to 26 18 Docket, vol. I, pp. 94 to 99 (

CTA CASE NO. 8854 Page 5 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION 7.1 Implementing the aforesaid provision, Section 3, 3.1.5 of Revenue Regulations No. 12-99 dated September 6, 1999, provides that that taxpayer shall submit the required documents in support of its protest within sixty (60) days from the date of filing of the protest, otherwise, The phrase 'submit the required documents' includes submission or presentation of the pertinent documents for scrutiny and evaluation by the Revenue Officer conducting the audit and the said Revenue Officer shall state this fact in his report of investigation. In the instant case, despite the length of time given to herein petitioner, it failed to submit the required documents in support of its protest against the Formal Assessment Notice. Consequently, the assessment became final, executory and demandable. As such, this Honorable Court has no jurisdiction to act on the instant petition. 8. Further yet, Section 7 and 11 of Republic Act (RA) No. 1125, as amended by RA No. 9282 and RA No. 9503, which enumerates the cases over which the Court of Tax Appeals has appellate jurisdiction, relevantly states: 'Sec. 7. Jurisdiction. -The CTA shall exercise: (a). Exclusive appellate jurisdiction to review by appeal, as herein provided: (1). Decisions of the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue or other laws administered by the Bureau of Internal Revenue; (2). Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue Code provides a specific period of action, in which case the inaction shall be deemed a denial; 'Sec. 11. Who may appeal; Mode of Appeal; Effect of Appeal. - Any party adversely affected by a <

CTA CASE NO. 8854 Page 6 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION decision, ruling or inaction of the Commissioner of Internal Revenue, the Commissioner of Customs, the Secretary of Finance, the Secretary of Trade and Industry or the Secretary of Agriculture or the Central Board of Assessment Appeals or the Regional Trial Courts may file an appeal with the CTA within thirty (30) days after the receipt of such decision or ruling or after the expiration of the period fixed by law for action as referred to in Section 7(a)(2) herein. 9. Indubitably, the Court of Tax Appeals, being a court of special jurisdiction, can take cognizance only of matters that are clearly within its jurisdiction (Allied Banking Corporation vs. Commissioner of Internal Revenue, G.R. No. 175097, February 5, 2010 citing Rizal Commercial Banking Corporation vs. Commissioner of Internal Revenue, G.R. No. 168498, 522 SCRA 144, 150). Its jurisdiction may only be invoked in the particular instances enumerated in Section 7 of Republic Act (RA) No. 1125, as amended by Section 7 of RA No. 9282 (Moog Controls Corporation Philippine Branch vs. Commissioner of Internal Revenue, CTA EB. No. 44, May 10, 2005). Verily, Section 3, Rule 4 of the Revised Rules of the Court of Tax Appeals provides that only decisions of the Commissioner of Internal Revenue (CIR) in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code (NIRC) or other laws administered by the Bureau of Internal Revenue can be subject of appeal before this Court. And considering that the petitioner failed to file the necessary supporting documents, the assessment in the instant case already became final and executory, and demandable. 10. At the outset, the Formal Assessment Notice (FAN) and its Details of Discrepancies both dated December 2, 2013, reflect the internal revenue liabilities of the petitioner for the taxable period from January 1, 2012 to June 30, 2012, to wit: .XXX Disallowed input tax carried over from previous quarter, P11,448,182.73. - Analysis of your 2nd quarter return disclosed that you have input tax carried over from previous quarter in the amount of P11,448,182.73, however, upon verification of previous vat return there was no excess input tax to be carried forward to the 2nd ('

CTA CASE NO. 8854 Page 7 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION quarter. Subsequently, it was unveiled that the Board of Directors of your company and Mytel Mobilities Solutions, Inc. (Mytel) had approved the plan of merger effective May 29, 2012, in which your company will be the surviving entity, thus, the unused input tax of Mytel in the amount of P10,159,73.44 was being carried in your 2nd quarter return. However, per our records there was no application for merger or any notification filed in the BIR. Please be informed that Section 235 (e) of the Tax Code prescribes that 'Corporations and partnerships contemplating dissolution must notify the Commissioner and shall not be dissolved until cleared of any tax liability.' Moreover, Sec. 236 (F) of the NIRC states that 'The registration ofany person who ceases to be liable to a tax type shall be cancelled upon filing with the Revenue District Office where he is registered an application for registration information update in a form prescribed therefor. In the view of the above, the unused input tax of Mytel cannot be allowed as carried over by your company. Unsupported Input Tax, P40,017,741.93 - Verification disclosed that you claimed input tax in the amount of P40,503,645.60. Upon audit, it was found that the claimed input tax of P38,072,631.00 came from importation made by Mytel of June 2012 but since you failed to notify the BIR through filing of an application of merger/cancellation pursuant to Sec. 235 (e) and Sec. 236 (F) of the NIRC, therefore, the said claimed input tax cannot be allowed as deduction from your output tax. With regard to the remaining input tax of P2,431,014.60, during audit you presented official receipts and sales invoices, however, your claimed input tax per summary lit of purchases did not match with the presented documents, hence, disallowed pursuant to Section 110 of NIRC as implemented by Revenue Regulation No. 16-2005. Excess Input tax Carried Over to Succeeding Quarter, P10,159,773.44 - The excess input tax was not applied against the allowable input tax in computing deficiency value-added tax since this was already carried over to the next succeeding <

CTA CASE NO. 8854 Page 8 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION period/quarter(s) as provided under Section 110 (B) of the Tax Code, as amended. 11. Further yet, A revenue regulation, the issuance of which is authorized by statute, has the force and effect of law ( Vitug & Accosta, Tax Law and Jurisprudence, Jd Edition, p. 55); 12. Assessment are prima facie presumed correct and made in good faith. The taxpayer has the duty of proving otherwise. In the absence of proof of any irregularities in the performance of official duties, an assessment will not be disturbed. (Aban, Law of Basic Taxation in the Philippines, 1st Edition, p. 109); 13. Over and above all, petitioner should be reminded that taxes are important because it is the lifeblood of the government and so should be calculated without unnecessary hindrance (Commissioner vs. Algue, Inc. L-28896, 17 February 1988). Taxes are enforced proportional contribution from persons and property levied by the state, thus, no one is considered entitled to recover that which he must give up to another.- Non videtur guisguam id capere quod ei necesse est alii restitutere." On January 28, 2015, the Pre-Trial Brief (for the Respondent)19 was filed through registered mail and received by this Court on February 4, 2015; while petitioner's Pre-Trial Brief2� was submitted on March 6, 2015. Subsequently, the parties filed their Joint Stipulation of Facts and Issues21 on March 27, 2015, which the Court approved on April 8, 2015.22 As such, the Court terminated the Pre-Trial on April 8, 201523 and issued a Pre-Trial Order24 on April 22, 2015. During trial, petitioner presented Mr. Jundelito C. Abiera as its sole witness. Petitioner formally offered its testimonial and documentary evidence, which the Court admitted, except for Exhibits "P-12-231" and "P-12-291".25 19 Docket, val. I, pp. 112 to 113 20 Docket, val. I, pp. 116 to 129 21 Docket, val. I, pp. 270 to 283 22 Resolution, Docket, val. I, pp. 288 to 289 23 Ibid. 24 Docket, val. I, pp. 291 to 299 25 Resolution dated February 17, 2016, Docket, val. III, pp. 1456 to 1457 (.

CTA CASE NO. 8854 Page 9 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION The documentary exhibits offered by petitioner are as follows: Exhibit Description P-1 Formal Assessment Notice (FAN) and Details of Discrepancies P-2 dated December 2, 2012 which petitioner received on P-3 December 3, 2012 Request for Reconsideration of the FAN filed by petitioner on P-4 January 2, 2014 Petitioner's Original Quarterly VAT Return for the 1st quarter P-5 of CY 2012, with attached schedules, stamped as received by the Bureau of Internal Revenue (BIR), Revenue District P-6 Office (RDO) No. 52 on April 19, 2012 P-7 Petitioner's Amended Quarterly VAT Return for the 1st quarter of CY 2012 stamped as received by the BIR, RDO No. 52 on P-8 May 2, 2012 P-9 Petitioner's Quarterly VAT Return for the 2nd quarter of CY P-10 2012, with attached schedules, stamped as received by the P-10-1 to BIR, RDO No. 52 on July 25, 2012 P-10-5 Mytel Mobility Solution, Inc.'s (MyTel) Quarterly VAT Return P-11 for the 2nd quarter of CY 2012, with attached schedules, P-11-a stamped as received by the BIR, RDO No. 52 on July 25, 2012 P-12-1 Certificate of Filing of the Articles and Plan of Merger between MyTel and MySolid, which was approved by the SEC on May P-12-2 29, 2012 P-12-3 Petitioner's Certificate of Filing of Amended Articles of P-12-4 Incorporation, with attached Amended Articles of P-12-5 Incorporation, issued by the SEC on March 3, 2011 Petitioner's BIR Certificate of Registration Summary of documents supporting petitioner's input VAT on importation of goods for June 2012 Bureau of Customs' (BOC) Statements of Settlement of Duties and Taxes and Import Entry & Internal Revenue Declarations (IEIRD) covering the input VAT on petitioner's importation of goods in June 2012 Amended Sworn Statement of Mr. Jundelito C. Abiera dated March October 9, 2015 Signature of Mr. Jundelito C. Abiera in the Amended Sworn Statement dated March October 9, 2015 Official Receipt (OR) No. 2311 dated July 6, 2012 issued by Dalniezen Custom Brokerage, Inc. ("Dalniezen") with attached Payment Voucher Sales Invoice (51) No. 12323 dated June 29, 2012 issued by Dalniezen OR No. SH-L002459234-5 dated June 29, 2012 issued by the Philippine Ports Authority (PPA} Billing Invoice No. SO# 22 dated June 29, 2012 issued by Asian Terminals Inc. (ATI) OR No. 34397 dated June 27, 2012 issued by Cyrus Logistics, Inc. (

CTA CASE NO. 8854 Page 10 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION P-12-6 OR No. 2310 dated July 6, 2012 issued by Dalniezen with P-12-7 attached Payment Voucher P-12-8 51 No. 12313 dated June 21, 2012 issued by Dalniezen P-12-9 OR No. SH-L002453420-9 dated June 21, 2012 issued by PPA P-12-10 Billing Invoice no. SO # 24 dated June 21, 2012 issued by P-12-11 ATI OR No. 34366 dated June 20, 2012 issued by Cyrus Logistics, P-12-12 Inc. P-12-13 OR No. 12683 dated July 13, 2012 issued by Airtropolis P-12-14 Consolidator Phils., Inc. with attached Payment P-12-15 Voucher P-12-16 OR No. 1057807 dated June 22, 2012 issued by Philippine P-12-17 Skylanders Inc. P-12-18 OR No. 01801 dated June 21, 2012 issued by Eagle Express P-12-19 Lines_L Inc. P-12-20 Import Entry and Internal Revenue Declaration with P-12-21 Reference No. AIMNL1206008700 issued P-12-22 OR No. 2306 dated June 22, 2012 issued by Dalniezen with P-12-23 attached Payment Voucher P-12-24 OR No. 34306 dated June 14, 2012 issued by Cyrus Logistics, I P-12-25 Inc. P-12-26 OR No. 2303 dated June 15, 2012 issued by Danielzen with 1 P-12-27 attached Payment Voucher P-12-28 OR No. 34229 dated June 5, 2012 issued by Cyrus Logistics, P-12-29 Inc. OR No. 1421 dated June 15, 2012 issued by AB&N Manpower P-12-30 Management, Inc. with attached Payment Voucher P-12-31 51 No. 8660 dated May 31, 2012 issued by AB&N Manpower Management, Inc. 51 No. 8674 dated June 7, 2012 issued by AB&N Manpower Management Inc. 51 No. 8661 dated May 31, 2012 issued by AB&N Manpower Management, Inc. 51 No. 8665 dated June 7, 2012 issued by AB&N Manpower Management Inc. 51 No. 8649 dated May 24, 2012 issued by AB&N Manpower Management, Inc. 51 No. 8651 dated May 24, 2012 issued by AB&N Manpower Management, Inc. OR No. 1420 dated June 15, 2012 issued by AB&N Manpower Management, Inc.with attached Payment Voucher 51 No. 8650 dated May 24, 2012 issued by AB&N Manpower Management, Inc. 51 No. 8664 dated June 7, 2012 issued by AB&N Manpower Management, Inc. OR No. 1423 dated June 22, 2012 issued by AB&N Manpower Management, Inc.with attached Payment Voucher 51 No. 8676 dated June 12, 2012 issued by AB&N Manpower Management1 Inc. 51 No. 8678 dated June 12, 2012 issued by AB&N Manpower Management, Inc. (

CTA CASE NO. 8854 Page 11 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION P-12-32 OR No. 1425 dated June 30, 2012 issued by AB&N Manpower P-12-33 Management, Inc. with attached Payment Voucher P-12-34 SI No. 8677 dated June 12, 2012 issued by AB&N Manpower P-12-35 Management, Inc. P-12-36 OR No. 1384 dated July 6, 2012 issued by AB&N Manpower P-12-37 Management, Inc.with attached Payment Voucher P-12-38 SINo. 8714 dated June 27, 2012 issued by AB&N Manpower P-12-39 Management Inc. P-12-40 OR No. 1385 dated July 6, 2012 issued by AB&N Manpower P-12-41 Management, Inc.with attached Payment Voucher P-12-42 SINo. 8711 dated June 27, 2012 issued by AB&N Manpower P-12-43 Management Inc. P-12-44 OR No. 1386 dated July 6, 2012 issued by AB&N Manpower P-12-45 Management Inc.with attached Payment Voucher P-12-46 SI No. 8710 dated June 7, 2012 issued by AB&N Manpower P-12-47 Management, Inc. P-12-48 SI No. 8712 dated June 27, 2012 issued by AB&N Manpower P-12-49 Management, Inc. P-12-50 OR No. 0309 dated July 20, 2012 issued by Accelltech P-12-51 Corporation with attached Payment Voucher P-12-52 SI No. 1290 dated April 18, 2012 issued by Acceltech P-12-53 Corporation SI No. 1292 dated April 20, 2012 issued by Accelltech P-12-54 Corporation P-12-55 SI No. 1310 dated April 23, 2012 issued by Accelltech P-12-56 Corporation P-12-57 SI No. 1311 dated April 24, 2012 issued by Accelltech Corporation OR No. 1304 dated June 22, 2012 issued by Best Options Assistance, Inc. with Payment Voucher OR No. 1311 dated June 6, 2012 issued by Best Options Assistance Inc. with attached Payment Voucher OR No. 192994-A dated June 25, 2012 issued by Sun Cellular with attached Payment Voucher OR No. BSP-2-000461344 dated June 21, 2012 issued by Sun Cellular with Payment Voucher OR No. BSP-2-000461346 dated June 21, 2012 issued by Sun Cellular with Payment Voucher OR No. BSP-2-000461345 dated June 21, 2012 issued by Sun Cellular with Payment Voucher OR No. 0035 dated July 13, 2012 issued by DSIPOST, INC. with attached Payment Voucher OR No. 0284 dated June 15, 2012 issued by Dynamic Management & Marketing, Inc. ("DMMI") with attached Payment Voucher OR No. 243121 dated August 17, 2012 issued by E-Pius Stationery, Inc. with attached Payment Voucher OR No. 0302 dated June 22, 2012 issued by E.S.E. Signex Sign Ex~ess, Inc. (Signex) with attached Payment Voucher OR No. 0303 dated June 22, 2012 issued by E.S.E. Signex with attached Payment Voucher SINo. OS-0363 dated April 23, 2012 issued by Signex (

CTA CASE NO. 8854 Page 12 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION P-12-58 OR No. 17432 dated June 15, 2012 issued by Eight Arms P-12-59 Agency, Inc. ("Eight Arms") with attached Payment Voucher P-12-60 OR No. 18000 dated July 20, 2012 issued by Eight Arms with P-12-61 attached Payment Voucher I SI No. 25385 dated June 8, 2012 issued by Faire P-12-62 Technologies, Inc. ("FaireTech") P-12-63 P-12-64 OR No. 29687 dated June 1, 2012 issued by FaireTech with P-12-65 P-12-66 attached Payment Voucher P-12-67 SI No. OS-0369 dated May 2, 2012 issued by Signex P-12-68 SINo. OS-0381 dated May 25, 2012 issued by P-12-69 SI No. 25396 dated June 8, 2012 issued by Fairtech P-12-70 SI No. 24825 dated April 25, 2012 issued by Fairtech P-12-71 OR No. GCPTAC15064575 dated June 21, 2012 issued by P-12-72 Globe Telecom, Inc. with attached Payment Voucher P-12-73 OR No. GCPTAC15064576 dated June 21, 2012issued by P-12-74 Globe Telecom Inc. with attached Payment Voucher I P-12-75 OR No. 0204 dated June 6, 2012 issued by Gotravelbliss Corp. ! P-12-76 with attached Payment Voucher P-12-77 SINo. 26801 dated June 22, 2012 issued by Infocorp Trading P-12-78 Inc. P-12-79 P-12-80 SI No. 0890 dated June 13, 2012 issued by Jahena Trading P-12-81 P-12-82 Services Inc. with attached Purchase Order P-12-83 P-12-84 SI No. 0910 dated June 21, 2012 issued by Jahena Trading P-12-85 P-12-86 Services Inc. with attached Purchase Order P-12-87 P-12-88 OR No. 21413 and Acknowledgement Receipt No. 1525 both P-12-89 P-12-90 dated June 22, 2012 issued by Marvel Destination Managers, P-12-91 P-12-92 Inc. with attached Payment Voucher OR No. 50782 dated June 29, 2012 issued by Microgenesis Business Systems with attached Payment Voucher SI No. 68588 dated June 25, 2012 issued by Microgenesis Business Systems with attached Purchase Order OR No. 0002 dated June 22, 2012 issued by MyVista Builders, Inc. with attached Payment Voucher SI No. 0138 dated May 21, 2012 issued by OmniSolid Services, Inc. (OmniSolid) SI No. 0363 dated June 30, 2012 issued by OmniSolid SI No. 00910 dated April 30, 2012 issued by Solid Laguna Corporation SINo. 0141 dated May 31, 2012 issued by OmniSolid SI No. 0140 dated May 31, 2012 issued by OmniSolid SI No. 0328 dated June 28, 2012 issued by OmniSolid SI No. 0327 dated June 28, 2012 issued by OmniSolid SI No. 0317 dated June 27 2012 issued by OmniSolid SI No. 0326 dated June 28, 2012 issued by OmniSolid SI No. 0325 dated June 28, 2012 issued by OmniSolid SI No. 0329 dated June 29, 2012 issued by OmniSolid SI No. 0186 dated May 31, 2012 issued by OmniSolid SI No. 0183 dated May 31, 2012 issued by OmniSolid SI No. 0184 dated May 31, 2012 issued by OmniSolid SINo. 0252 dated June 14, 2012 issued by OmniSolid SI No. 0253 dated June 1~ 2012 issued by OmniSolid OR No. 4837 dated May 17 2012 issued by Red Ribbon ~

CTA CASE NO. 8854 Page 13 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION P-12-93 Bakeshop, Inc. (Red Ribbon) P-12-94 OR No. 4835 dated May 17 2012 issued by Red Ribbon P-12-95 OR No. 4822 dated May 11 2012 issued by Red Ribbon Sales Invoice (51) No. 052800 dated May 11, 2012 issued by P-12-96 Super Shopping Market, Inc. ("SSMI''l P-12-97 51 No. 052769 dated May 8, 2012 issued by SSMI P-12-98 OR No. 1407 dated May 25, 2012 issued by AB&N P-12-99 OR No. 1422 dated June 15, 2012 issued by AB&N P-12-100 OR No. 323972-001 issued by Peninsula Manila P-12-101 OR No. 11599 dated May 7, 2012 issued by Starbucks Coffee OR No. 12712 dated May 8, 2012 issued by UCC Coffee Cafe P-12-102 Terrace P-12-103 OR No. 13458 dated May 10, 2012 issued by Starbucks Coffee P-12-104 OR No. 5476 dated May 10 2012 issued by Starbucks Coffee OR No. 0687 dated May 16, 2012 issued by Cucina De las P-12-105 Islas Filipinas Food Corporation P-12-106 OR No. 4836 dated May 17, 2012 issued by Red Ribbon OR No. 4830 dated May 17, 2012 issued by LD Whistle Asia, P-12-107 Inc. OR No. 10031 dated May 18, 2012 issued by Studio Museum P-12-108 Cafe and Bistro OR No. 27194 dated May 18, 2012 issued by Sports Grill P-12-109 Philippines, Inc. P-12-110 OR No. 9771 dated May 18, 2012 issued by Seattle's Best OR No. 23753 dated May 24, 2012 issued by Jollibee Foods P-12-111 Corporation Cash Invoice (CI) No. 00584 dated May 2, 2012 issued by P-12-112 Petron Marketing Corporation CI No. 13752 dated May 4, 2012 issued by Tri-okto Shell P-12-113 Gasoline Station OR No. 33737 dated May 15, 2012 issued by La Vista Shell P-12-114 Service Station OR No. 107880 dated May 12, 2012 issued by Magallanes P-12-115 Management Corp. OR No. 12257 dated May 20, 2012 issued by Estrellita P-12-116 Petroleum Service Station Inc. CI No. 12519 dated May 28, 2012 issued by Primera Clase P-12-117 Gas Station, Inc. CI No. 13963 dated May 28, 2012 issued by Tri-okto Shell P-12-118 Gasoline Station OR No. BCI-1-000489168 dated May 15, 2012 issued by Sun P-12-119 Cellular OR No. BCI-1-000489170 dated May 15, 2012 issued by Sun P-12-120 Cellular OR No. BCI-1-000491406 dated May 5, 2012 issued by Sun P-12-121 Cellular OR No. 2681 dated June 15, 2012 issued by Follosco Morallos P-12-122 & Herce OR No. GBICAR06136281 dated May 23, 2012 issued by P-12-123 Globe Telecom, Inc. OR No. GBICAR06136280 dated May 23, 2012 issued by Globe Telecom, Inc. {.

CTA CASE NO. 8854 Page 14 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION P-12-124 OR No. 161451 dated May 25, 2012 issued by Medicard Philippines Inc. P-12-125 OR No. 6151 dated May 25 2012 issued by OmniSolid P-12-126 OR No. PQROR029849174 dated April 13, 2012 issued by Philippine Long Distance Telecommunications (PLOT) P-12-127 OR No. PQROR030724505 dated May 11, 2012 issued by PLOT i OR No. SCROR000034622 dated April 13, 2012 issued by SMART P-12-128 OR No. SBSOR00013983 dated May 26, 2012 issued by SMART P-12-129 OR No. 0000293675 dated May 23, 2012 issued by Citra Metro manila Tollways Corp. (Citra) P-12-130 OR No. 0000695439 dated May 23, 2012 issued by Citra OR No, 102343442 dated May 8, 2012 issued by Paseo Center I Parking OR No. 230580583 dated May 18, 2012 issued by Greenbelt P-12-131 Parking P-12-132 OR No. 1425 dated June 30, 2012 issued by AB&N OR No. 1384 dated July 61 2012 issued by AB&N P-12-133 OR No. 1385 dated July6, 2012 issued by AB&N OR No. 1386 dated July 6, 2012 issued by AB&N P-12-134 P-12-135 . P-12-136 P-12-137 OR No. 0309 dated July 20, 2012 issued by Acceltech P-12-138 51 No. 1310 dated April 23, 2012 issued by Acceltech P-12-139 51 No. 1290 dated April 18 2012 issued by Acceltech P-12-140 51 NO. 1292 dated April 20, 2012 issued by Acceltech P-12-141 51 No. 1311 dated April 24, 2012 issued by Acceltech P-12-142 OR No. 1304 dated June 22, 2012 issued by Best Options P-12-143 Assistance, Inc. OR No. 1311 dated July 6, 2012 issued by Best Options P-12-144 Assistance, Inc. OR No. 192994-A June 25, 2012 issued by Sun Cellular P-12-145 OR No. BSP-2-000461344 dated June 21, 2012 issued by Sun P-12-146 Cellular OR No. BSP-2-000461346 dated June 21, 2012 issued by Sun P-12-147 Cellular OR No. BSP-2-000461345 dated June 21, 2012 issued by Sun P-12-148 Cellular OR No. 0035 dated July 12, 2012 issued by Dsipost, Inc. P-12-149 OR No. 0284 dated by June 15 2012 issued by DMMI P-12-150 OR No. 234121 dated August 17, 2012 issued by E-plus P-12-151 Stationery, Inc. OR No. 0302 dated Juen 22, 2012 issued by Signex P-12-152 OR No. 0303 dated June 30, 2012 issued by Signex P-12-153 OR No. 4339 dated June 15, 2012 issued by Eight Arms P-12-154 OR No. 17432 dated June 15, 2012 issued by Eight Arms P-12-155 OR No. 18000 dated July 20, 2012 issued by Eight Arms P-12-156 OR No. 4321 dated July 201 2012 issued by Eight Arms P-12-157 OR No. 29687 dated June 1, 2012 issued by Fairetech P-12-158 OR No. GCPAC15064575 dated June 21, 2012 issued by P-12-159 Globe Telecom OR No. GCAP15064~Z�__Qated June 21, 2012 iS�lJed by Globe P-12-160 {..

CTA CASE NO. 8854 Page 15 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Telecom P-12-161 OR No. 0204 dated June 26, 2012 issued by Gotra Velbiss Corp. P-12-162 OR No. 0218 dated July 13, 2012 issued by Gotra Velbiss Corp. P-12-163 OR No. 2945 dated August 10, 2012 issued by Infocorp Trading, Inc. P-12-164 OR No. 000905 dated July 6, 2012 issued by Jahena Trading & Services ' P-12-165 OR No. 6199 dated July 20, 2012 issued by Lite Express International, Inc. (Lite Express) P-12-166 OR No. 6198 dated July 20, 2012 issued by Lite Express P-12-167 OR No. 21413 dated June 22, 2012 issued by Marvel Destination Managers, Inc. (MDMI) P-12-168 OR No. 1525 dated June 22 2012 issued by MDMI P-12-169 OR No. 50782 dated June 29, 2012 issued by Microgenesis Business Systems P-12-170 OR No. 51170 dated July 27, 2012 issued by Microgenesis Business Systems P-12-171 OR No. 0002 dated June 22, 2012 issued by MyVista Builders, Inc. P-12-172 OR No. 6413 dated August 24, 2012 issued by OmniSolid P-12-173 OR No. 6402 dated July 13 2012 issued by OmniSolid P-12-174 OR No. 6404 dated August 3, 2012 issued by OmniSolid P-12-175 OR No. 6414 dated August 24, 2012 issued by OmniSolid P-12-176 OR No. 6409 dated August 10, 2012 issued by OmniSolid P-12-177 OR No. dated August 3 2012 issued by OmniSolid P-12-178 OR No. 2251 dated August 8, 2012 issued by Pacific Broadcasting P-12-179 OR No. 0725 dated August 24, 2012 issued by Smart Advertising P-12-180 OR No. 1203B dated July 20, 2012 issued by Solid Electronics Corp. P-12-181 OR No. 1674 dated June 25, 2012 issued by Solid Group, Inc. P-12-182 OR No. 6973 dated September 14, 2012 issued by Swarga Sug Media Corp. P-12-183 OR No. 0601 dated July 6, 2012 issued by Tangent Biz Process Outsourcing, Inc. P-12-184 OR No. 19724 dated June 29, 2012 issued by Tripmart Travel Agency P-12-185 OR No. 0097 dated June 29, 2012 issued by Vtech Ad Worx Inc. P-12-186 Invoice No. 028587 dated June 15, 2012 issued b~ Watsons P-12-187 51 No. 053247 dated June 15, 2012 issued by SM Hypermarket P-12-188 OR No. 030011072 dated May 20, 2012 issued by Ayala Property Management Corp. P-12-189 OR No. BCI-1-000463050 dated January 19, 2012 issued by Digitel Mobile Philippines, Inc. (DMPI) P-12-190 OR No. BCI-1-000470094 dated February 20, 2012 issued by DMPI __ '-- P-1 ?-!~_t '--OR No. BCI-1-000470Q~!)__dated February 20, 2012 iSSlJ~_Q__Qy_ (.

CTA CASE NO. 8854 Page 16 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION P-12-192 DMPI P-12-193 OR No. BCI-1-000470336 dated February 21, 2012 issued by P-12-194 DMPI P-12-195 OR No. 29398 dated January 18, 2012 issued by Dome Cafe P-12-196 Franchise Corporation P-12-197 OR No. 31803 dated January 6, 2012 issued by Donica P-12-198 Corporation P-12-199 OR No. 14287 dated January 27, 2012 issued by Ebdomos P-12-200 P-12-201 1 P-12-202 P-12-203 Cyma Greek Taverna Corp. P-12-204 OR No. 10035 dated January 14, 2012 issued by Estrellita P-12-205 Petroleum Service Station, Inc. P-12-206 OR No. 6586 dated January 5, 2012 issued by Flapjacks P-12-207 Creative Resto Corp. P-12-208 OR No. 62905 dated January 29, 2012 issued by GF Pacific P-12-209 Co. P-12-210 Invoice No. 17584707 dated February 10, 2012 issued by P-12-211 Globe Telecom Inc. P-12-212 Invoice No. 7540806 dated February 10, 2012 issued by P-12-213 Globe Telecom, Inc. P-12-214 OR dated February 16, 2012 issued b_y_ Globe Telecom Inc. P-12-215 OR No. 073056 dated January 22, 2012 issued by Golden P-12-216 Arches Development Corporation P-12-217 OR No. 2254 dated January 22, 2012 issued by Hawaiian BBQ P-12-218 Grill, Inc. Charge Invoice (CI) No. 25654 dated January 5, 2012 issued by Infocorp Trading Incorporated (lnfocorp) CI No. 25732 dated January 19, 2012 issued by Infocorp OR No. 30134 dated January 29, 2012 issued by International Family Food Services, Inc. Sales Invoice (SI) No. 9390 dated January 25, 2012 issued by JN Summit One Corp. OR No. 9564 dated January 7, 2012 issued by Johnandyoko Foods, Inc. OR No. 4316 dated January 12, 2012 issued by Kitchen, Inc. OR No. 0864 dated January 10, 2012 issued by Litsonhaus Diners Philippines Corporation OR No. 0433 dated January 11, 2012 issued by Ma. Maison Greenbelt Resto Corp. OR No. 93408 dated January 11, 2012 issued by Magallanes Management Corp. 51 No. 11132 dated January 13, 2012 issued by Makati Supermarket Corporation (Makati Supermarket) 51 No. 11384 dated January 27, 2012 issued by Makati Supermarket OR No. 2224 dated January 7, 2012 issued by Mary Grace Foods, Inc. OR No. 42727 dated March 29, 2012 issued by Multi Kitchen, Inc. OR No. 47876 dated January 27, 2012 issued by Next Door, Inc. OR No. 16584 dated January 23, 2012 issued by Office Warehouse, Inc. (

CTA CASE NO. 8854 Page 17 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION P-12-219 Invoice No. 45569996 dated January 19, 2012 issued by P-12-220 P-12-221 PLOT P-12-222 P-12-223 Invoice No. 45246702 dated January 19, 2012 issued by P-12-224 P-12-225 PLOT P-12-226 P-12-227 Invoice No. 45569993 dated January 19, 2012 issued by P-12-228 P-12-229 PLOT P-12-230 P-12-232 Invoice No. 45930399 dated February 10, 2012 issued by P-12-233 P-12-234 PLOT P-12-235 P-12-236 Invoice No. 46202051 dated February 21, 2012 issued by P-12-237 P-12-238 PLOT P-12-239 P-12-240 Invoice No. 46202050 dated February 21, 2012 issued by P-12-241 P-12-242 PLOT P-12-243 P-12-244 OR No. 7377 dated January 6, 2012 issued by Philippine P-12-245 P-12-246 Pastries, Inc. (Pastries) P-12-247 OR No. 7378 dated January 6 2012 issued by Pastries Invoice No. 458532 dated January 10, 2012 issued by Pinic International Corporation OR No. 127936 dated January 13, 2012 issued by Punongbayan & Araullo OR No. 3060 dated January 8, 2012 issued by Red Fuel Gas & Oil Station, Inc. (Red Fuel) OR No. 3487 dated January 23, 2012 issued by Red Fuel OR No. 4187 dated January 20, 2011 issued by Solid Laguna � Corporation i I 51 No. 51321 dated January 17, 2012 issued by Super Shopping Market, Inc. (Super Shoppinq) 51 No. 51333 dated January 18, 2012 issued by Super Shopping 51 No. 51245 dated April 1, 2012 issued by Super Shopping OR No. 0658 dated January 9, 2012 issued by Sweet Bella Desserts Invoice No. 15865 dated January 17, 2012 issued by Top Grade Petron Products Corporation OR No. 10666 dated January 6, 2012 issued by TravelnCuisine Philippines, Inc. OR No. 4832 dated January 24, 2012 issued by Tropical Hut Food Market, Inc. Invoice No. 71985 dated January 19, 2012 issued by Villarta- Maglaya Trading, Inc. (Villarta-Maglaya) Invoice No. 72103 dated January 6, 2012 issued by Villarta- Maglaya 51 No. 028066 dated January 24, 2012 issued by Watsons Personal Care Stores, Inc. OR No. 10136 dated January 11, 2012 issued by Ypsilon Lake Corporation Invoice No. 11739 dated February 28, 2012 issued by Tri- Okto Shell Gasoline Station (Tri-Okto) Invoice No. 11577 dated February 20, 2012 issued by Tri- Okto Invoice No. 11657 dated February 29, 2012 issued by Tri- Okto Sales Invoice (51) No. 710-000034765 dated February 2 {.

CTA CASE NO. 8854 Page 18 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION 2012 issued by Ace Hardware P-12-248 Official Receipt (OR) No. 8129 dated February 23, 2012 P-12-249 P-12-250 issued by Atty. Valeriano D. Reloj Law Office I OR No. 1075 dated April 13, 2012 issued by Best Options P-12-251 Assistance, Inc. P-12-252 P-12-253 OR No. 429879 dated February 8, 2012 issued by Citra Metro P-12-254 P-12-255 Manila Tollways Corporation P-12-256 P-12-257 OR No. 3804 dated February 14, 2012 issued by Coffee P-12-258 P-12-259 Brewmasters Inc. amounting to Php 2,535.87 P-12-260 P-12-261 OR No. BLZ-1-000589378 dated March 20, 2012 issued by P-12-262 P-12-263 DMPI P-12-264 P-12-265 OR No. BLZ-1-000589379 dated March 20, 2012 issued by P-12-266 P-12-267 DMPI P-12-268 P-12-269 51 No. 9326 dated February 19, 2012 issued by Dona Soledad P-12-270 P-12-271 Gas Center Inc. amounting to Php 1,000.00 I P-12-272 P-12-273 OR No. 4955 dated February 1, 2012 issued by Donica Corporation 1 OR No. 11943 dated February 7, 2012 issued by Donica Corporation OR No. 33576 dated February 14, 2012 issued by Donica Corporation OR No. 10614 dated February 21, 2012 issued by Estrellita Petroleum Service Station, Inc. OR No. GBICAR06130933 dated March 8, 2012 issued by Globe Telecom, Inc. OR No. GSMLCU11073657 dated March 20, 2012 issued by Globe Telecom, Inc. Invoice No. 71247 dated January 31, 2012 issued by Goldilocks Invoice No. 71472 dated February 14, 2012 issued by Goldilocks 51 No. 9192 dated February 18, 2012 issued by JN Summit One Corp. OR No. 98933 dated February 22, 2012 issued by Magallanes Management Corp. OR No. 94379 dated February 8, 2012 issued by Magallanes Management Corp. 51 No. 1-000040335 dated February 9, 2012 issued by Mandurriao Star Inc. 51 No. 34-000041069 dated February 15, 2012 issued by Mandurriao Star, Inc. 51 No. 1-000047527 dated February 28, 2012 issued by Mandurriao Star Inc. OR No. 3972 dated February 16, 2012 issued by MPAV Marketing OR No. 20192 dated February 9, 2012 issued by Office Warehouse, Inc. OR No. 22801 dated February 22, 2012 issued by Office Warehouse, Inc. OR No. 238507 dated February 18, 2012 issued by Petron Bagumbayan Service Station OR No. 28820 dated February 8, 2012 issued by Rustan ~

CTA CASE NO. 8854 Page 19 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Coffee Corporation P-12-274 Invoice No. 46899174 dated March 1, 2012 issued by PLOT P-12-275 P-12-276 Invoice No. 46899170 dated March 1 2012 issued by PLOT P-12-277 P-12-278 Invoice No. 46972623 dated March 8, 2012 issued by PLOT P-12-279 P-12-280 SOA No. 59660752 dated February 29, 2012 issued by Smart P-12-281 P-12-282 Communications, Inc. P-12-283 P-12-284 OR dated March 23, 2012 issued by Smart Communications, P-12-285 P-12-286 Inc. P-12-287 P-12-288 OR No. 1032 dated March 2, 2012 issued by Solid Electronics P-12-289 P-12-290 Corporation P-12-292 P-12-293 OR No. 1033 dated March 2, 2012 issued by Solid Electronics P-12-294 P-12-295 Corporation P-12-296 P-12-297 OR No. 4248 dated March 9, 2012 issued by Solid Laguna P-12-298 P-12-299 Corporation P-12-300 P-12-301 OR No. 4632 dated March 23, 2012 issued by Solid Laguna P-12-302 Corporation 51 No. 051567 dated February 7, 2012 issued by Super Shoppinq Market, Inc. 51 No. 051602 dated February 10, 2012 issued by Super Shoppinq Market, Inc. 51 No. 051722 dated February 21, 2012 issued by Super Shopping Market, Inc. OR No. 55384 dated February 3, 2012 issued by Trellis Restaurant, Inc. Invoice No. 11837 dated March 27, 2012 issued by Tri-Okto Shell Gasoline Station Invoice No. 11082 dated March 16, 2012 issued by Tri-Okto 1 Shell Gasoline Station I Invoice No. 11619 dated March 10, 2012 issued by Tri-Okto I Shell Gasoline Station Invoice No. 11045 dated February 17, 2012 issued by Tri- Okto Shell Gasoline Station Invoice No. 130034 dated March 10, 2012 issued by Petron OR No. 41684 dated March 7, 2012 issued by K-Square Petron Service Center Invoice No. 575634 dated March 22, 2012 issued by Yamat Motorist's Center Invoice No. 575642 dated March 23, 2012 issued by Yamat Motorist's Center OR No. 1131 dated March 30, 2012 issued by AB&N I Manpower Management Inc. OR No. 426806 dated February 24, 2012 issued by Citra Metro Manila Tollways Corporation OR No. 425729 dated March 15, 2012 issued by Citra Metro Manila Tollways Corporation OR No. 1243 dated March 20, 2012 issued by Cmstar Manaqement Inc. OR No. 4262 dated March 14, 2012 issued by Coffee Brewmasters, Inc. OR No. BSP-2-000435886 dated March 21, 2012 issued by Oiqitel Mobile Philippines, Inc. OR No. BSP-2-000435884 dated March 21, 2012 issued Qy" 4

CTA CASE NO. 8854 Page 20 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION P-12-303 Digitel Mobile Philippines, Inc. P-12-304 OR No. 12245 dated February 23, 2012 issued by Donica P-12-305 Corporation P-12-306 Invoice No. 916434 dated March 19, 2012 issued by Elamar P-12-307 Marketing Corporation P-12-308 OR No. 6775 dated February 6, 2012 issued by Elamar P-12-309 Marketing Corporation P-12-310 OR No. 10823 dated March 3, 2012 issued by Estrellita P-12-311 Petroleum Service Station, Inc. P-12-312 Invoice No. 71584 dated March 1, 2012 issued by Goldilocks P-12-313 Bakeshop, Inc. P-12-314 OR No. 0357 dated March 15, 2012 issued by Inbento Rice P-12-315 Meals Corporation P-12-316 OR No. 100486 dated March 7, 2012 issued by Magallanes P-12-317 Management Com_oration P-12-318 OR No. 4000 dated March 9, 2012 issued by MPAV Marketing P-12-319 OR No. 3866 dated March 20, 2012 issued by MPAV P-12-320 Marketing P-12-321 OR No. 29081 dated March 21, 2012 issued by Office P-12-322 Warehouse Inc. P-12-323 Invoice No. 47345928 dated April 13, 2012 issued byPLDT P-12-324 51 No. 051889 dated March 9, 2012 issued by Super Shopping P-12-325 Market, Inc. P-12-326 51 No. 051811 dated March 1, 2012 issued by Super Shopping P-12-327 Market, Inc. P-12-328 51 No. 052044 dated March 21, 2012 issued by Super P-12-329 ShoQQing Market1 Inc. Invoice No. 75781 dated March 30, 2012 issued by Villarta- Maglaya Trading, Inc. OR No. 12945 dated February 25, 2012 issued by Wholesome Foods Inc. OR No. 1195 dated April20, 2012 issued by AB&N Manpower Management, Inc. OR No. 1356 dated May 11, 2012, 2012 issued by AB&N Manpower Management, Inc. 51 No. 35223 dated April 14, 2012 issued by CAYC Gasoline Station amounting to Php 2 000.00 OR No. 12638 dated April 13, 2012 issued by CFAL Oasis Development Corporation amounting to Php 2 293.11 OR No. 423156 dated April 2, 2012 issued by Citra Metro Manila Tollways Corporation OR No. 420827 dated April 28, 2012 issued by Citra Metro Manila Tollways Corporation OR No. BSP-1-000484065 dated April 24, 2012 issued by Digitel Mobile Philippines, Inc. OR No. BSP-1-000484063 dated April 24, 2012 issued by Digitel Mobile Philippines, Inc. OR No. BSP-1-000484064 dated April 24, 2012 issued by Digitel Mobile Philippines, Inc. Invoice No. 317728 dated April 25, 2012 issued by ESS Gasoline Station OR No. 11849 dated April 30, 2012 issued by Estrellita (.

CTA CASE NO. 8854 Page 21 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION P-12-330 Petroleum Service Station, Inc. OR No. 11655 dated April 19, 2012 issued by Estrellita P-12-331 Petroleum Service Station, Inc. OR No. 11632 dated April 18, 2012 issued by Estrellita P-12-332 Petroleum Service Station, Inc. OR No. 11306 dated March 31, 2012 issued by Estrellita P-12-333 Petroleum Service Station, Inc. OR No. 11374 dated April 3, 2012 issued by Estrellita P-12-334 Petroleum Service Station, Inc. OR No. 11446 dated April 9, 2012 issued by Estrellita P-12-335 Petroleum Service Station, Inc. OR No. GBICAR03140162 dated April 30, 2012 issued by P-12-336 Globe Telecom Inc. OR No. GBICAR03140161 dated April 30, 2012 issued by P-12-337 Globe Telecom, Inc. P-12-338 OR No. 2680 dated April 20, 2012 issued by Migallos & Luna P-12-339 Law Offices P-12-340 OR No. 129966 dated May 11, 2012 issued by Punongbayan P-12-341 & Araullo P-12-342 OR No. 5415 dated April 3, 2012 issued by Red Ribbon P-12-343 BakeshoP. Inc. P-12-344 OR No. 5420 issued Red Ribbon Bakeshop, Inc. P-12-345 OR No. 5433 dated April 23, 2012 issued by Red Ribbon P-12-346 Bakeshop, Inc. P-12-347 SOA No. 61835732 dated April 13, 2012 issued by Smart P-12-348 Communications, Inc. P-12-349 OR No. 4765 dated May 11, 2012 issued by Solid Laguna Corporation P-12-350 SI No. 052294 dated April 12, 2012 issued by Super Shopping SI No. 052338 dated April 23, 2012 issued by Super Shopping P-12-351 SI No. 052186 dated April 3, 2012 issued by Super Shopping SI No. 052543 dated April 15, 2012 issued by Super Shopping P-12-352 SINo. 052303 dated April 20, 2012 issued by Super Shopping OR No. 6056 dated April 27, 2012 issued by Supercool P-12-353 Airconditioning Center Invoice No. 12594 dated April 23, 2012 issued by Tri-okto P-12-354 Shell Gasoline Station P-12-355 Invoice No. 11648 dated April 14, 2012 issued by Tri-okto P-12-356 Shell Gasoline Station P-12-357 SI No. 028554 dated April 3, 2012 issued by Watsons Personal Care Stores, Inc. Tri-okto Shell Gasoline Station OR No. 2084269 dated June 12, 2012 issued by C-5 Gas & Oil Station, Inc. Tri-okto Shell Gasoline Station OR No. 11967 issued by Estrellita Petroleum Service Station, Inc. SINo. 053346 dated May 29, 2012 issued by Super Shopping SINo. 052974 dated May 17, 2012 issued by Super Shopping Summary of Input Tax Details of Purchases from January to June 2012 ~

CTA CASE NO. 8854 Page 22 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION On the other hand, respondent presented Ms. Jasmin T. Pawingi as his sole witness. Then, respondent formally offered his testimonial and documentary evidence, which were all admitted by the Court, except for Exhibit "R-1-a".26 Respondent's documentary exhibits are as follows: Exhibit Description R-1 R-1-b Electronic Letter of Authority dated February 6 2013 R-2 Signature of Celeste H. Cerillo List of Requirements relative to the investigation of R-2-a petitioner's internal revenue tax for VAT for the fiscal period R-2-b from January 1, 2012 to June 30 2012 R-3 Signature of Revenue Officer Jasmin T. Pawingi R-3-a Signature of Celeste H. Cerillo R-4 Notice of Informal Conference dated June 25, 2013 Signature of Nety G. So, head of the VAT Audit Group R-4-a Memorandum containing the report of investigation on the R-5 VAT liability of the petitioner and the recommendation for the R-6 issuance of a Preliminary Assessment Notice Signature of revenue Officer Jasmin T. Pawingi R-7 Preliminary Assessment Notice issued on October 31, 2013 Assessment Notices dated December 2, 2013 together with R-7-a the Formal Assessment Notice also dated December 2, 2013 with its corresponding Details of Discrepancies R-8 Certification issued by Senen A. Manalo, Chief, Taxpayer R-8-a Service Signature of Senen A. Manalo, Chief, Taxpayer Service of Revenue District Office No. 52 in Paranaque City Judicial Affidavit of Jasmine Pawingi Signature of Jasmine Pawingi The case was deemed submitted for decision on August 12, 2016, 27 considering petitioner's Memorandum 28 filed on August 8, 2016 and the Records Verification29 dated July 22, 2016, stating that respondent failed to file a memorandum. The parties submitted the following issue for this Court's resolution: 26 Resolution dated June 2, 2016, Docket, val. III, pp. 1483 to 1484 27 Resolution, Docket, val. III, p. 1537 28 Docket, val. III, pp. 1496 to 1532 29 Docket, val. III, p. 1491 (

CTA CASE NO. 8854 Page 23 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Whether or not petitioner is liable for deficiency VAT for the period January 1, 2012 to June 30, 2012 in the aggregate amount of P65,928,415.74.30 The Court shall determine first whether the Petition for Review was timely filed. Section 228 of the National Internal Revenue Code of 1997, as amended, provides: "SEC. 228. Protesting of Assessment - When the Commissioner or his duly authorized representative finds that proper taxes should be assessed, he shall first notify the taxpayer of his findings: Provided, however, That a preassessment notice shall not be required in the following cases: XXX XXX XXX The taxpayers shall be informed in writing of the law and the facts on which the assessment is made; otherwise, the assessment shall be void. Within a period to be prescribed by implementing rules and regulations, the taxpayer shall be required to respond to said notice. If the taxpayer fails to respond, the Commissioner or his duly authorized representative shall issue an assessment based on his findings. Such assessment may be protested administratively by filing a request for reconsideration or reinvestigation within thirty (30) days from receipt of the assessment in such form and manner as may be prescribed by implementing rules and regulations. Within sixty (60) days from filing of the protest, all relevant supporting documents shall have been submitted; otherwise, the assessment shall become final. If the protest is denied in whole or in part, or is not acted upon within one hundred eighty (180) days from submission of documents, the taxpayer adversely affected by the decision or inaction may appeal to the Court of Tax Appeals within thirty (30) days from receipt of the said decision, or from the lapse of 30 Docket, vel. I, p. 272 L

CTA CASE NO. 8854 Page 24 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION the one hundred eighty (180)-day period; otherwise, the decision shall become final, executory and demandable." On December 3, 2013, petitioner received from respondent a Formal Assessment Notice with Details of Discrepancies, requesting the former to pay its alleged deficiency VAT for the period January 1, 2012 to June 30, 2012 in the total amount of P65,928,415.74, as computed below: 31 Taxable receipts per VAT returns P11 448 182.73 p 340,184,183.99 Output tax 40 017 741.93 40,822,102.08 Less: Input tax carried over from previous quarter 51 465 924.66 (10 159 773.44) Claimed input tax 11 448 182.73 p 50 981 875.52 Total available input tax 40 017 741.93 Less: Disallowed IT carried over from 42 265.56 10 159 773.44 p 50 939 609.96 previous quarter Unsupported input tax 14 988 805.78 Excess IT carried over to succeeding P65,928,415.74 quarter VAT payable Less: Payments per ITS Basic value-added tax due Add: Interest (7/26/12 to 1/14/14) Total Amount Due Petitioner filed its Protest Letter32 on January 2, 2014, requesting reconsideration of the assessment and praying for the cancellation and withdrawal of the same. In order to seek judicial relief, petitioner filed the present Petition for Review with this Court on July 31, 2014, due to the inaction of respondent on petitioner's request for reconsideration within the 180-day period. The Court of Tax Appeals En Bane made the following pronouncements in the case of Oceanic Wireless Network, Inc. vs. Commissioner ofInternal Revenu&3 : "Furthermore, where the taxpayer failed to submit relevant supporting documents within the sixty (60) day period from filing of the protest, and in case of inaction by the respondent and the taxpayer chooses to appeal to the Court of Tax Appeals, the same must be made within thirty (30) days from the lapse of the one-hundred eighty (180) day period, the one hundred eighty (180) day period must be reckoned from the date the protest was filed. The sixty (60) day period shall not be added to the computation of the one hundred eighty 31 Exhibit "P-1", Docket, val. 1, pp. 130 to 132 32 Exhibit "P-2", Docket, val. 1, pp. 135 to 150 33 CTA EB No. 76 (CTA Case No. 6111), June 22, 2006 <

CTA CASE NO. 8854 Page 25 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION (180) days because from the wordings of the law, in case the taxpayer fails to submit relevant supporting documents, the assessment becomes final. The one hundred eighty (180) day period, therefore, commenced to run from the date protest was filed. Failure on the part of the petitioner to file a Petition for Review with the Court of Tax Appeals within thirty (30) days from the lapse of the one hundred eighty (180) day period reckoned from the date the protest was filed, renders the assessment final, executory and demandable." In this case, there is no documentary evidence to show that petitioner submitted supporting documents for its protest. Notwithstanding, it is important to note that although respondent specifically denied knowledge and information as to the truth or falsity of petitioner's allegation that the latter submitted supporting documents, respondent did not present the said issue for resolution of this Court. Neither party presented any evidence to prove whether petitioner submitted documents supporting the administrative protest. The Court notes that under RR No. 12-99, as amended, a request for reconsideration is a plea of re-evaluation of an assessment on the basis of existing records without need of additional evidence. Considering the foregoing and for the purpose of reckoning the 180 days for respondent to act on petitioner's administrative protest, it should be counted from the date of filing of the protest which was on January 2, 2014. Accordingly, respondent had until July 1, 2014 within which to act on the said protest. Since respondent failed to do so, petitioner had thirty (30) days from July 1, 2014 or until July 31, 2014 within which to appeal the said inaction of respondent. Since the Petition for Review was filed on July 31, 2014, the same was timely filed. I. Disallowed input tax carried over from previous quarter - P11,448,182.73 Respondent's analysis of petitioner's VAT return for the second quarter of CY 2012 disclosed that the latter had input tax carried over (

CTA CASE NO. 8854 Page 26 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION from previous quarter in the amount of P11,448, 182.73. Upon respondent's verification of previous quarter's return, there was no excess input tax to be carried forward to the second quarter. Later, it was allegedly revealed that the Board of Directors of petitioner and Mytel Mobility Solutions, Inc. had approved the plan of merger that took effect on May 29, 2012, in which petitioner was the surviving entity; thus, the unused input tax of Mytel in the amount of P10,159,773.44 was carried over by petitioner. According to respondent, petitioner failed to file an application for merger, or any notice of such, with the BIR. Respondent cites Section 235(e) of the NIRC of 1997, as amended, which prescribes that "Corporations and partnerships contemplating dissolution must notify the Commissioner and shall not be dissolved until cleared of any tax liability." Moreover, Section 236(F) of the same Code allegedly states that "The registration of any person who ceases to be liable to a tax type shall be cancelled upon filing with the Revenue District Office where he is registered an application for registration information update in a form prescribed therefor." Hence, the unused input tax of Mytel cannot be allowed to be carried over by petitioner. On the other hand, petitioner argues that there is no legal basis for the disallowance of the input tax carried over from previous quarter in the amount of P10,159,773.44 because (a) there is nothing in Sections 235(e) and 236(F) of the NIRC of 1997, as amended, which provides that prior filing of an application for, or notice of merger with the BIR is a precondition for the transfer of the unused input tax credits of an absorbed corporation to the surviving corporation; and (b) Section 4.106-8 of Revenue Regulations (RR) No. 16-2005 explicitly provides that in case of merger or consolidation, the unused input taxes of the absorbed corporation when the merger takes effect shall be transferred to the surviving corporation. Petitioner further contends that the disallowance of input tax credits in the amount of P1,288,409.29 is null and void, invoking Section 228 of the NIRC of 1997, as amended, and Section 3.1.3 of RR No. 12-99, as amended. The FAN allegedly failed to state the facts and the law on which such disallowance was based. The disallowance should be cancelled. c..

CTA CASE NO. 8854 Page 27 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Section 4.106-8 of RR No. 16-2005, as amended, explicitly provides that "[t]he unused input tax of the dissolved corporation, as of the date of merger or consolidation, shall be absorbed by the surviving or new corporation." Moreover, Section 80 of Batas Pambansa Big. 6834 provides that a merger shall have the effect of ipso jure transferring all the rights and properties of the absorbed corporation to the surviving corporation, to wit: "Sec. 80. Effects of merger or consolidation. - The merger or consolidation, as provided in the preceding sections, shall have the following effects: XXX XXX XXX 4. The surviving or the consolidated corporation shall thereupon and thereafter possess all the rights, privileges, immunities and franchises of each of the constituent corporations; and all property, real or personal, and all receivables due on whatever account, including subscriptions to shares and other chases in action, and all and every other interest of, or belonging to, or due to each constituent corporation, shall be taken and deemed transferred to and vested in such surviving or consolidated corporation without further act or deed; xxx" (Emphasis supplied) In relation thereto, Section 79 of the same Code states that the merger shall be effective upon the issuance of a certificate of merger by the Securities and Exchange Commission, to wit: "Sec. 79. Effectivity of merger or consolidation. - The articles of merger or of consolidation, signed and certified as herein above required, shall be submitted to the Securities and Exchange Commission in quadruplicate for its approval: Provided, That in the case of merger or consolidation of banks or banking institutions, building and loan associations, trust companies, insurance companies, public utilities, educational institutions and other special corporations governed by special laws, the favorable recommendation of the appropriate government agency shall first be obtained. If the Commission i.s satisfied that the merger or consolidation of the corporations concerned is not inconsistent with the provisions of this Code 34 Corporation Code of the Philippines t:.

CTA CASE NO. 8854 Page 28 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION and existing laws, it shall issue a certificate of merger or of consolidation, as the case may be, at which time the merger or consolidation shall be effective." (Emphasis supplied) Consistent with these provisions, the Supreme Court discussed the matter in the consolidated cases of Poliand Industrial Limited vs. National Development Company, Development Bank ofthe Philippines, and The Honorable Court of Appeals and National Development Company vs. Poliand Industrial LimitecPS, to wit: "xxx Ordinarily, in the merger of two or more existing corporations, one of the combining corporations survives and continues the combined business, while the rest are dissolved and all their rights, properties and liabilities are acquired by the surviving corporation. The merger, however, does not become effective upon the mere agreement of the constituent corporations. As specifically provided under Section 79 of said Code, the merger shall only be effective upon the issuance of a certificate of merger by the Securities and Exchange Commission (SEC), subject to its prior determination that the merger is not inconsistent with the Code or existing laws. Where a party to the merger is a special corporation governed by its own charter, the Code particularly mandates that a favorable recommendation of the appropriate government agency should first be obtained. The issuance of the certificate of merger is crucial because not only does it bear out SEC's approval but also marks the moment whereupon the consequences of a merger take place. By operation of law, upon the effectivity of the merger, the absorbed corporation ceases to exist but its rights, and properties as well as liabilities shall be taken and deemed transferred to and vested in the surviving corporation." (Emphasis supplied) Based on the Certificate of Filing of the Articles and Plan of Merger 36 dated May 29, 2012, the SEC approved the Plan and Agreement and the Articles of Merger executed on April 25, 2012 by and between petitioner and Mytel, stating therein that "the entire assets and liabilities of MYTEL MOBILITY SOLUTIONS INC. will be transferred to and absorbed by My Solid Technologies & Devices 35 G.R. Nos. 143866 and 143877, August 22, 2005 36 Exhibit "P-7", Docket, val. III, p. 946 t.

CTA CASE NO. 8854 Page 29 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Corporation". The merger took effect on June 1, 2012, as expressly stated in the Articles of Merger. Consequently, the unused input tax credits of Mytel were absorbed by or ipso jure transferred to petitioner on June 1, 2012, the effectivity date of the merger. Hence, the disallowance of P10,159,773.44 is not proper. With regard to the remaining input tax credits of P1,288,409.29, petitioner cannot invoke Section 228 of the NIRC of 1997, as amended, as it was duly informed of the factual basis of the disallowance. It is clearly stated in the Details of Discrepancies that the input tax credits of P11,448,182.73 appearing on petitioner's Quarterly VAT Return for the 2nd quarter of the year 2012 were disallowed because there was allegedly no excess input tax to be carried forward from the 1st quarter of year 2012. The remaining input tax credits of P1,288,409.29 are included in the input tax credits of P11,448,182.73. However, a revisit of petitioner's Quarterly VAT Return37 for the 1st quarter of the year 2012 reveals that it had excess tax credits of P526,314.7138, which was carried over to the 2nd quarter of the year 2012. Likewise, the excess tax credits of Mytel actually amount to P10,921,868.0239 and not P10,159,773.44. Apparently, petitioner was able to account for the total input tax carried over from the previous quarter amounting to P11,448, 182.73, to wit: Input tax credit of Mytel p 10,921,868.02 Input tax credit from 1st quarter of 2012 526 314.71 Total Input Tax C:arried from Prevl()US Quarter P11,448,182.73 In fine, respondent's disallowance of the input tax credits in the total amount of P11,448,182.73 should be cancelled. II. Unsupported input tax - P40,017,741.93 Respondent's verification disclosed that petitioner claimed input tax in the amount of P40,503,645.60. Respondent supposedly found 37 Exhibit "P-4", Docket, vol. I, p. 161 38 Line 29 of Exhibit "P-4", Docket, vol. I, p. 161 39 Line 29 of Exhibit "P-6", Docket, vol. I, p. 179 ~

CTA CASE NO. 8854 Page 30 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION after an investigation that the input tax of P38,072,631.00 came from the importation made by Mytel in June 2012. Since petitioner allegedly failed to notify the BIR of the merger through filing of an application for the same pursuant to Sections 235(e) and 236(F) of the NIRC of 1997, the said input tax cannot be allowed as deduction from output tax. With regard to the remaining input tax of P2,431,014.60, petitioner presented official receipts and invoices; however, petitioner's claimed input tax per summary list of purchases did not purportedly match with the presented documents. Thus, the alleged input tax was disallowed pursuant to Section 110 of the NIRC of 1997, as implemented by RR No. 16-2005. On the other hand, petitioner reiterates that prior filing of an application for merger with the BIR is not a requirement for the transfer of Mytel's unused input taxes to petitioner. Petitioner claims that there is no basis to disallow the input VAT on importation in the amount of P38,072,631.00. Petitioner further argues that the disallowance of the input tax in the amount of P2,431,014.60 is invalid because respondent failed to inform petitioner of the legal and factual bases of the said disallowance. Other than the bare allegation that the "input tax per summary list of purchases did not match the official receipts and sales invoices presented during audit", respondent has failed to provide a schedule showing the alleged discrepancies between petitioner's summary list of purchases and its supporting official receipts and invoices. In any case, petitioner claims that the input taxes reported in its VAT returns for the first and second quarters of CY 2012 are properly supported by VAT invoices and official receipts. At the outset, the difference between the amount of disallowed input VAT per FAN and that per Details of Discrepancies in the amount of P485,903.6740, as shown below, pertains to the input tax allocable to exempt sales. Thus, the same does not form part of the total disallowance of P40,017,741.93. Disallowed input VAT per FAN P38,072,631.00 P40,017 741.93 Disallowed input VAT per Details of 2,431,014.60 Discrepancies 40,503,645.60 p 485,903.67 Input VAT from Mytel's importation Input VAT per summary list of purchases which did not match the official receipts and sales invoices presented Difference 40 Line 23C of Exhibit "P-5", vol. I, p. 164 (

CTA CASE NO. 8854 Page 31 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION As held earlier, the unused input tax credits of Mytel ipso jure transferred to petitioner on June 1, 2012, the effectivity date of the merger. Hence, the disallowance of P38,072,631.00 is not proper and the same should be cancelled. Anent the input VAT of P2,431,014.60, the Details of Discrepancies clearly indicated the law and the facts on which the disallowance is based. Even though respondent failed to provide a schedule of the alleged discrepancies, the summary list of purchases41 and the supporting official receipts and invoices42 are readily available to petitioner. With these documents at hand, petitioner may easily determine the discrepancies subject of this assessment. Therefore, petitioner cannot gainsay that it was deprived of an opportunity to refute respondent's findings. Records show that only the input taxes in the total amount of P99,689.76 are properly supported by official receipts and invoices, and the remaining amount of P2,331,324.84 shall be disallowed for the following reasons: Taxable Exhibit Document Supplier Amount of Period No. Input VAT I. Valid input tax 1/31/2012 "P-12-164" 10727 FERNANDO, LAURO A fD 628.83 "P-12-165" 10795 C-5 GAS AND OIL STATION INC 1/31/2012 "P-12-166" 10963 CITRA METRO MANILA 107.14 1/31/2012 6147 CITYFILL SERVICE STATION 321.43 "P-12-170" 430435 INFOCORP TRADING INCORPORATED "P-12-176" 074874 JN SUMMIT ONE CORPORATION 105165 LITSONHAUS DINERS PHILIPPINES CORPORATION 1/31/2012 "P-12-177" 108914 PHILIPPINE LONG DISTANCE TELEPHONE 321.43 "P-12-178" "P-12-179" 25654 RED FUEL GAS AND OIL STATION 25732 1/31/2012 "P-12-204" 9390 SUPER SHOPPING MARKET INC 3,557.14 "P-12-205" 0864 TOP-GRADE PETRO PRODUCTS CORPORATION 107.14 1/31/2012 "P-12-207" 33.75 1/31/2012 "P-12-210" 25718435 25718433 525.61 1/31/2012 "P-12-219" 25718436 "P-12-220" "P-12-221" 3060 3487 1/31/2012 "P-12-229" 214.29 "P-12-230" 051321 051333 1/31/2012 "P-12-233" 051245 197.06 1/31/2012 "P-12-234" 15865 107.14 "P-12-235" "P-12-237" 41 BIR records, pp. 108 to 112 42 Exhibits "P-12-1" to "P-12-357", Docket, vol. III, pp. 980 to 1449 c.

CTA CASE NO. 8854 Page 32 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Taxable Exhibit Document Supplier Amount of Period No. Input VAT "P-12-244" 2/29/2012 "P-12-245" 11739 FERNANDO, LAURO A 551.02 "P-12-246" 11577 2/29/2012 "P-12-247" 11657 ACE HARDWARE 90.99 2/29/2012 "P-12-250" CITRA METRO MANILA 482.14 2/29/2012 "P-12-263" 235 JN SUMMIT ONE CORPORATION 176.49 429879 2/29/2012 "P-12-274" 525.27 "P-12-275" 9192 2/29/2012 "P-12-276" ' 3/31/2012 27163457 PHILIPPINE LONG DISTANCE TELEPHONE 133.20 "P-12-283" 27163467 233.36 3/31/2012 "P-12-284" 27817902 SUPER SHOPPING MARKET INC 589.29 3/31/2012 "P-12-287" FERNANDO, LAURO A 3/31/2012 051567 CITRA METRO MANILA 37.50 3/31/2012 "P-12-297" 051602 INBENTO MEALS CORPORATION 37.50 4/30/2012 "P-12-298" 11837 OFFICE WAREHOUSE 58.61 "P-12-308" SUPER SHOPPING MARKET INC 476.36 4/30/2012 "P-12-312" 426806 FERNANDO, LAURO A "P-12-315" 425729 4/30/2012 4/30/2012 "P-12-350" 0357 4/30/2012 "P-12-351" 29081 4/30/2012 051811 "P-12-325" 5/31/2012 "P-12-326" 12594 "P-12-327" 11648 5/31/2012 5/31/2012 "P-12-335" 484065 DIGITEL MOBILE PHILIPPINES INC 219.05 5/31/2012 "P-12-336" 484063 5/31/2012 "P-12-337" 484064 GLOBE TELECOM INC ' 5/31/2012 "P-12-338" MIGALLOS & LUNA LAW OFFICES 5/31/2012 "P-12-346" 3140162 PUNONGBAYAN AND ARAULLO 294.97 6/30/2012 3140161 SUPER SHOPPING MARKET INC 6/30/2012 "P-12-118" 8,400.00 6/30/2012 "P-12-119" 2680 14,041.50 6/30/2012 "P-12-120" 129966 6/30/2012 "P-12-121" 052186 64.61 6/30/2012 6/30/2012 "P-12-122" 489168 DIGITEL MOBILE PHILIPPINES INC 187.61 6/30/2012 "P-12-123" 489170 6/30/2012 "P-12-110" 491406 FOLLOSCO MORALLOS AND HERCE 1,512.00 6/30/2012 "P-12-124" GLOBE TELECOM INC 6/30/2012 2681 268.87 6/30/2012 "P-12-128" JOLLIBEE FOODS CORP "P-12-129" 6136281 MEDICARD PHILIPPINES 32.88 "P-12-99" 6136280 3,017.77 SMART COMMUNICATIONS INC "P-12-46" 23753 THE PENINSULA MANILA 171.43 "P-12-47" 161451 BESTOPTIONS ASSISTANCE INC "P-12-52" DSIPOST INC 149.43 "P-12-54" 34622 E-PLUS STATIONERY INC 6156077 EIGHT ARMS AGENCY INC 16,337.36 "P-12-58" 4141025800 "P-12-59" FAIRE TECHNOLOGIES INC 3,600.00 "P-12-60" 1304 GO TRAVEL BLISS CORP 237.86 1311 "P-12-68" 0035 MARVEL DESTINATION MANAGERS INC 802.20 "P-12-134" 498967 MYVISTA BUILDERS INC "P-12-72" PUREGOLD PRICE CLUB INC 1,285.71 "P-12-75" 17432 SOLID GROUP INC "P-12-160" 18000 SWARA SUG MEDIA CORPORATION 1,220.14 "P-12-148" 25385 TANGENT BIZ PROCESS OUTSOURCING INC "P-12-149" Subtotal - Valid Input Tax 113.57 "P-12-150" 0204 0218 10,714.29 21413 0002 58.82 6906 1674 24,000.00 6973 0601 1,800.00 , 1,647.00 99,689.76 II. Disallowed Input Tax 1. VAT not separately indicated in the supporting documents (

CTA CASE NO. 8854 Page 33 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Taxable Exhibit Document Supplier Amount of Period No. Input VAT "P-12-168" ABN MANPOWER MANAGEMENT INC 1/31/2012 "P-12-169" 0923 p 1,719.18 "P-12-170" 0898 BCS SYSTEM AND TECHNOLOGIES INC 1/31/2012 "P-12-226" 1132 DOME CAFE FRANCHISE CORPORATION 794.93 1/31/2012 "P-12-193" 03190 EBDOMOS CYMA GREE TAVERNA CORPORATION 19.08 1/31/2012 "P-12-195" 29398 ESTRELLITA PETROLEUM SERVICE STATION 1/31/2012 "P-12-196" 14287 FLAPJACKS CREATIVE RESTO CORPORATION 107.96 1/31/2012 "P-12-197" 10035 GF PACIFICO CO 218.25 1/31/2012 "P-12-198" 6586 GOLDEN ARCHES DEVELOPMENT CORPORATION 107.67 1/31/2012 "P-12-202" 62905 HAWAIIAN BBQ GRILL INC 1/31/2012 "P-12-203" 073056 INTERNATIONAL FAMILY FOODS SERVICES INC 57.43 1/31/2012 "P-12-206" 2254 JOHNANDYOKO FOODS INC 62.46 1/31/2012 "P-12-251" 30134 MA MAISON GREENBELT RESTO CORPORATION 466.84 1/31/2012 "P-12-211" 9564 MAGALLANES MANAGEMENT CORP 112.39 1/31/2012 "P-12-212" 0433 MARY GRACE FOODS INC 348.61 1/31/2012 "P-12-215" 93408 NEXT DOOR INC 288.00 1/31/2012 "P-12-217" 2224 232.89 . 47876 PHILIPPINE PASTRIES INC 65.71 1/31/2012 "P-12-225" 53.57 "P-12-226" 7377 SWEET BELLA DESSERTS 1/31/2012 "P-12-236" 7378 TRAVENCRUISE PHILIPPINES INC 381.86 1/31/2012 "P-12-238" 0658 TROPICAL HUT FOOD MARKET INC 1/31/2012 "P-12-239" 10666 150.27 4832 VILLARTA MAGLAYA TRADING INC 152.14 1/31/2012 "P-12-240" "P-12-241" 71985 WATSON PERSONAL CARE (PHILS) INC 20.89 1/31/2012 "P-12-242" 72103 YPSILON LAKE CORPORATION 1/31/2012 "P-12-243" 028066 ATTY VALERIANO RELOJ LAW OFFICE 487.15 2/29/2012 "P-12-248" 10136 BESTOPTIONS ASSISTANCE INC 2/29/2012 "P-12-249" 8129 DONA SOLEDAD GAS CENTER 63.00 2/29/2012 "P-12-254" 1075 ESTRELLITA PETROLEUM SERVICE STATION 30.00 2/29/2012 "P-12-258" 9326 21.43 10614 GOLDILOCKS BAKESHOP INC 5,034.27 2/29/2012 "P-12-261" 107.14 "P-12-262" 71247 MAGALLANES MANAGEMENT CORP 267.86 2/29/2012 71472 "P-12-264" MPAV MARKETING 150.00 2/29/2012 "P-12-265" 98933 RUSTAN COFFEE CORPORATION 2/29/2012 "P-12-269" 94379 406.79 "P-12-273" 3972 SOLID ELECTRONICS CORPORATION 2/29/2012 28820 32.46 "P-12-279" SUPER SHOPPING MARKET INC 40.71 2/29/2012 "P-12-280" 1032 TRELLIS RESTAURANTS INC 2/29/2012 "P-12-285" 1033 740,989.50 "P-12-286" 051722 FERNANDO, LAURO A 3/31/2012 55384 39.03 "P-12-288" ABN MANPOWER MANAGEMENT INC 165.21 3/31/2012 "P-12-289" 11082 GOLDILOCKS BAKESHOP INC 3/31/2012 "P-12-290" 11619 MAGALLANES MANAGEMENT CORP 535.92 3/31/2012 "P-12-296" 11045 "P-12-307" 1131 MPAV MARKETING 555.78 3/31/2012 "P-12-309" 71584 64.29 100486 SUPER SHOPPING MARKET INC 202.90 3/31/2012 "P-12-310" "P-12-311" 4000 VILLARTA MAGLAYA TRADING INC 106.61 3/31/2012 3866 "P-12-314" ABN MANPOWER MANAGEMENT INC 169.23 4/30/2012 "P-12-316" 051889 255.18 "P-12-317" 052044 CAYCO GASOLINE STATION 2,228.56 4/30/2012 75781 ESS GASOLINE STATION 214.29 4/30/2012 "P-12-319" 267.86 "P-12-320" 1195 "P-12-321" 1356 "P-12-328" 35223 317728

CTA CASE NO. 8854 Page 34 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Amount of Input VAT Taxable Exhibit Document Supplier Period No. 1,188.74 4/30/2012 "P-12-329" 11849 ESTRELLITA PETROLEUM SERVICE STATION 171.24 "P-12-330" 11655 4/30/2012 "P-12-331" 11632 SUPER SHOPPING MARKET INC 1,283.12 "P-12-332" 11306 68.63 4/30/2012 "P-12-333" 11374 SUPERCOOL AIRCONDITIONING 4/30/2012 "P-12-334" 11446 WATSON PERSONAL CARE (PHILS) INC 201.91 5/31/2012 CUCINA DE LAS ISLAS FILIPINAS FOOD CORP 408.58 5/31/2012 "P-12-344" 052294 ESTRELLITA PETROLEUM SERVICE STATION 214.29 5/31/2012 "P-12-345" 052338 LA VISTA SHELL SERVICES STN 5/31/2012 "P-12-347" 052543 LD WHISTLE ASIA INC 96.05 5/31/2012 "P-12-348" 052303 MAGALLANES MANAGEMENT CORP 187.04 5/31/2012 "P-12-349" PETRON MARKETING CORP 267.86 5/31/2012 "P-12-352" 1276 SPORT GRILL PHILS INC 87.53 6/30/2012 "P-12-104" 028554 ACCELTECH CORPORATION 37,500.00 6/30/2012 ERICOIL INCORPORATED 6/30/2012 "P-12-115" 0687 JAHENA TRADING AND SERVICES 6.43 6/30/2012 "P-12-354" MICROGENESIS BUSINESS SYSTEM 3,225.00 6/30/2012 "P-12-113" 12257 SUPER SHOPPING MARKET INC 1,992.86 6/30/2012 "P-12-106" 11967 WATSON PERSONAL CARE (PHILS) INC "P-12-114" 33737 78.35 "P-12-111" 4830 49.29 "P-12-108" 107880 "P-12-41" 00584 9.54 "P-12-158" 27194 0309 525.26 "P-12-70" 282686 "P-12-71" 62.46 "P-12-73" 0890 107.14 "P-12-154" 0910 245.69 "P-12-153" 50782 750.00 053247 028587 149.89 2. Supported by documents other than VAT OR and/or VAT invoice 198.11 1/31/2012 "P-12-218" 16584 OFFICE WAREHOUSE 53.57 3,844.29 1/31/2012 "P-12-222" PHILIPPINE LONG DISTANCE TELEPHONE "P-12-223" 163.39 "P-12-224" 165.24 370.20 2/29/2012 "P-12-270" 20192 OFFICE WAREHOUSE 991.12 "P-12-271" 22801 301.70 2/29/2012 "P-12-272" 1000238507 PETRON BAGUMBAYAN SERVICE STATION 226.96 4/30/2012 "P-12-322" CFAL OASIS DEVT CORP 107.14 12638 364.51 4/30/2012 "P-12-323" 423156 CITRA METRO MANILA "P-12-324" 420827 4/30/2012 "P-12-339" 5415 RED RIBBON BAKESHOP INC "P-12-340" 5420 "P-12-341" 5433 5/31/2012 "P-12-92" 4837 RED RIBBON BAKESHOP INC "P-12-93" 4835 "P-12-94" 4822 INFOCORP TRADING INCORPORATED "P-12-105" 4836 MICROGENESIS BUSINESS SYSTEM 6/30/2012 "P-12-69" 26801 JIMENEZ JOSE MELVIN B ANIMO FOODS INC 6/30/2012 "P-12-74" 68588 CMSTAR MANAGEMENT INC COFFEE BREWMASTER INC 3. No supporting documents DIGITEL MOBILE PHILIPPINES INC DONICA CORPORATION 1/31/2012 - - ESS GASOLINE STATION GLOBE TELECOM INC 1/31/2012 - - 1/31/2012 - - 1/31/2012 - - 1/31/2012 - - 1/31/2012 - - 1/31/2012 - - 1/31/2012 - - t:.

CTA CASE NO. 8854 Page 35 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Amount of Input VAT Taxable Exhibit Document Suoolier Period No. KITCHEN INC 56.79 1/31/2012 - MAKATI SUPERMARKET CORPORATION 182.14 1/31/2012 - - MULTI KITCHEN INC 223.39 1/31/2012 - PINIC INTERNATIONAL CORPORATION 1/31/2012 - - PUNONGBAYAN AND ARAULLO 2.14 1/31/2012 - PVT RADIO PLAYNETWORK 14,041.50 1131/2012 - - SMART COMMUNICATIONS INC 22,200.00 1/31/2012 - SOLID LAGUNA CORPORATION 1/31/2012 - - COFFEE BREWMASTER INC 85.71 2/29/2012 - DIGITEL MOBILE PHILIPPINES INC 420.00 2/29/2012 - DONICA CORPORATION 249.43 2/29/2012 - GLOBE TELECOM INC 526.63 2/29/2012 - MANDURRIAO STAR INC 864.92 2/29/2012 - PRIMERA CLASE STATION 377.30 2/29/2012 - PVT RADIO PLAYNETWORK 2/29/2012 - SMART COMMUNICATIONS INC 30.46 2/29/2012 - SOLID LAGUNA CORPORATION 214.29 2/29/2012 - IGNACIO JR FRANCISCO S 22,200.00 3/31/2012 - PIZARRO VICENTE C 139.29 3/31/2012 - TAB EDWIN REYES 840.00 3/31/2012 - YAMAT MANUELA M 214.29 3/31/2012 - CMSTAR MANAGEMENT INC 107.14 3/31/2012 - COFFEE BREWMASTER INC 180.88 3/31/2012 - DIGITEL MOBILE PHILIPPINES INC 503.80 3/31/2012 - DONICA CORPORATION 167.11 3/31/2012 - ELAMAR MARKETING CORPORATION 112.39 3/31/2012 - - ESTRELLITA PETROLEUM SERVICE STATION 411.67 3/31/2012 - JOBSTREET COM PHIL INC 267.91 3/31/2012 - PHILIPPINE LONG DISTANCE TELEPHONE 517.64 3/31/2012 - PVT RADIO PLAYNETWORK 218.79 3/31/2012 - WHOLESOME FOODS INC 360.00 3/31/2012 - PVT RADIO PLAYNETWORK 223.10 4/30/2012 - SMART COMMUNICATIONS INC 22,200.00 4/30/2012 - SOLID LAGUNA CORPORATION 4/30/2012 - - FERNANDO LAURO A 23.57 5/31/2012 - ABN MANPOWER MANAGEMENT INC 22,200.00 5/31/2012 - C-5 GAS AND OIL STATION INC 5/31/2012 - COFFEE BREWMASTER INC 139.29 5/31/2012 - COFFEE MASTERS INC 420.00 5/31/2012 - FOOD PARKS BY RAINTREE INC 587.77 5/31/2012 - PHILIPPINE LONG DISTANCE TELEPHONE 1,447.40 5/31/2012 - PRIM ERA CLASE STATION 107.14 5/31/2012 - PVT RADIO PLAYNETWORK 194.04 5/31/2012 - - RUSTAN COFFEE CORPORATION 5/31/2012 - SOLID LAGUNA CORPORATION 33.75 5/31/2012 - - SUPER SHOPPING MARKET INC 60.21 5/31/2012 - BAN RONALD MARTIN B 748.37 6/30/2012 - BERNARDO KATHRYN 374.87 6/30/2012 - - TABAY J.R. JR 22,200.00 6/30/2012 - ABN MANPOWER MANAGEMENT INC 98.04 6/30/2012 - - ABACUS BOOK AND CARD CORP 420.00 6/30/2012 ABM GLOBAL SOLUTIONS INC 309.16 6/30/2012 - - ANIMO FOODS INC 16.07 6/30/2012 ANSKOR TRADING CORP 17,647.06 6/30/2012 - - ARANCIA INC 32.14 6/30/2012 ASIAN TERMINAL INCORPORATED 126,614.39 6/30/2012 - - 21.56 - 115,104.30 - - 155.48 - - 27.65 - - 58.12 - - 2,173.56 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - c..

CTA CASE NO. 8854 Page 36 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Taxable Exhibit Document Suoolier Amount of Period No. AZAMI RESTAURANT Input VAT 6/30/2012 - BACOLOD CHICKEN !NASAL 6/30/2012 - BAN GOZA CORPORATION 187.93 6/30/2012 - BMS TAGORDA COMPANY INC 54.32 6/30/2012 - CANELLE FOOD CORPORATION 116.46 6/30/2012 - CATER KING FOOD CORPORATION 107.14 6/30/2012 - CHARLES CELLZONE 98.57 6/30/2012 - CHICCO DI CAFFE 12.54 6/30/2012 - CITRA METRO MANILA 16.07 6/30/2012 - - COFFEE BREWMASTER INC 35.36 6/30/2012 CONSCIOUS PALATE FOOD GROUP 6/30/2012 - - CONTRADE ENTERPRISES INC 482.14 6/30/2012 COPYLANDIA OFFICE SYSTEMS CORP 77.61 6/30/2012 - - CYRUS LOGISTIC INC 42.60 6/30/2012 DALNIEZEN CUSTOMS BROKERAGE INC 175.01 6/30/2012 - - DENHON TRADING 221.25 6/30/2012 - DEPUTY CHARLIES GRIND AND GRILL CORP 300.00 6/30/2012 - - DIGITEL MOBILE PHILIPPINES INC 6/30/2012 DOMAIN MERCHANDISING SERVICES INC 29,448.91 6/30/2012 - - DONICA CORPORATION 107.14 6/30/2012 DYARYO TRABAHO CORPORATION 89.46 6/30/2012 - - DYNAMIC MANAGEMENT AND MKTNG INC 6/30/2012 E.S.E. SIGNEX SIGN EXPRESS INC 7,652.70 6/30/2012 - - ECOLAND PETRON SERVICENTER 2,889.60 6/30/2012 ENCHANTED KINGDOM INC 6/30/2012 - - EPHESIANS MANAGEMENT CORP 148.78 6/30/2012 - - ESPANA D. TUAZON SHELL SERVICE 44,906.40 6/30/2012 - ESS GASOLINE STATION 60,793.07 6/30/2012 - ESTRELLITA PETROLEUM SERVICE STATION 16,123.21 6/30/2012 - FAST WHEEL SHELL GAS STATION 6/30/2012 - FAST WHEEL SHELL GAS STATION 53.57 6/30/2012 - - FEDERAL BRENT RETAIL INC 19,489.29 6/30/2012 - FRESH N FAMOUS FOODS INC 1,446.43 6/30/2012 - G AND 0 TRADING CO (CELVITEK) 6/30/2012 - GLOBE TELECOM INC 331.26 6/30/2012 - GOLDEN ARCHES DEVELOPMENT CORPORATION 214.29 6/30/2012 - HANZ GRAPHICS AND DIGITAL IMAGING CENTER 214.29 6/30/2012 - - HIGHPOINT BUENDIA SHELL STATION 107.14 6/30/2012 - ICON GRAPHICS INC 732.76 6/30/2012 - - INTERNATIONAL FAMILY FOODS SERVICES INC 117.86 6/30/2012 - J.A. ABUCAR ADVERTISING AND TRAD 6/30/2012 - JOBSTREET.COM PHILIPPINES INC 8.36 6/30/2012 - JOLLIBEE FOODS CORPORATION 2,400.00 6/30/2012 - JOSE RIZALINO D. TORRE AND MA. CRISTINA A. - TORRE 296.57 I 6/30/2012 - LBC EXPRESS INC 11.25 - LEXTERPRINTING CORPORATION 6/30/2012 - - LITEXPRESS SUPPLY CHAIN INC 2,785.71 6/30/2012 - MACL BALLOONS AND PARTY MATES CENTER INC 53.57 6/30/2012 - - MAGALLANES MANAGEMENT CORP 577.80 6/30/2012 MAKATI SHANGRI-LA HOTELS AND RESORTS INC 117.86 6/30/2012 - - MARRAKETCH MDSE 42.86 6/30/2012 MARRAKETCH MDSE 360.00 6/30/2012 - - MAXIMUS TRADING INC 274.61 6/30/2012 MCM DESIGNS AND CONSTRUCTION SOLUTIONS 6/30/2012 - - MEDIAWATCHMEN PUBLISHING AND ADVERTISJ~_�_L__ 73.29 6/30/2012 - 6/30/2012 - 10.71 - - 883.93 - 227,051.17 - - 171.43 - - 160.71 - 607.68 - - 6,498.21 - - - 92.14 250.45 - - 7,200.00 4,492.f!O_ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ------ ~

CTA CASE NO. 8854 Page 37 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Amount of Input VAT Taxable Exhibit Document Supplier Period No. MFC BISTRO FOODS CORPORATION 92.14 6/30/2012 - MFC BISTRO FOODS CORPORATION 100.18 6/30/2012 - MICROPRINT SYSTEMS INC 4,331.87 6/30/2012 - - MIKROCELL PHONES N ACCESSORIES 6/30/2012 - MLM STAR GAS CORPORATION 16.07 6/30/2012 - - MSLM MOTORISTS CENTER 53.57 6/30/2012 NATIONAL BOOK STORE INC 32.14 6/30/2012 - - NOBLE PETRON SERVICE STATION 35.46 6/30/2012 NONPAREIL INTERNATIONAL FREIGHT AND 53.57 - - CARGO 6/30/2012 - OFFMATE DESIGN CORPORATION 140,601.24 - - OMNI SOLID SERVICES INC 6/30/2012 OMNI SOLID SERVICES INC 2,625.00 6/30/2012 - - PACIFIC BROADCASTING 30,000.00 6/30/2012 PASAY CENTENNIAL RESTAURANT INC 217,960.76 6/30/2012 - - PELLENOR RESOURCES INC 6/30/2012 PERGA GASOLINE SERVICE STATION 964.29 6/30/2012 - - PHILIPPINE AIRLINES INC 575.82 6/30/2012 - PHILIPPINE DAILY INQUIRER INCORPORATED 211.80 6/30/2012 - PHILIPPINE JOURNALIST INC 289.29 6/30/2012 - PHILIPPINE LONG DISTANCE TELEPHONE 93.49 6/30/2012 - PHILIPPINE PORTS AUTHORITY 23,436.09 6/30/2012 - PHILIPPINE SEVEN CORPORATION 9,836.64 6/30/2012 - PINIC INTERNATIONAL CORPORATION 604.35 6/30/2012 - PRIME IMAGE CONCEPT ASIA 155.81 6/30/2012 - PVT RADIO PLAYNETWORK 48.21 6/30/2012 - RBQ FOOD SPECIALISTS INC 6/30/2012 - RED FUEL GAS AND OIL STATION 72.86 6/30/2012 - REPUBLIKA PUBLISHING CO INC 3,240.33 6/30/2012 - RUSTAN COFFEE CORPORATION 73,260.00 6/30/2012 - S-ONE SUPPLIES CORPORATION 61_3012012 - - SERVICIO CAUDAD CORPORATION 83.04 6/30/2012 SHELL GATE SERVICE STATION 229.21 6/30/2012 - - SKILLS AND TALENT EMPLOYMENT POOL INC 11,188.80 6/30/2012 SKYLAR CORPORATION 136.61 6/30/2012 - - SLT GASMART CORPORATION 707.68 6/30/2012 - - SM PRIME HOLDING INC 6/30/2012 - SM PRIME HOLDING INC 85.71 6/30/2012 - - SMART ADVERTISING WORKS AND SERVICES 107.14 6/30/2012 - SMART COMMUNICATIONS INC 13,758.98 6/30/2012 - - SOLID ELECTRONICS CORP 53.57 6/30/2012 - ST. TERESA PETRON SERVICE STATION 428.57 6/30/2012 - STAREV MOTORIST SERVICE CENTER 11,552.21 6/30/2012 - STATION SQUARE EAST COMMERCIAL 1,800.00 6/30/2012 - CORPORATION 41,640.00 - STEAK ESCAPE CO 107.14 6/30/2012 - STORES SPECIALISTS INC 2,142.86 - - SUMOSAM FOODS INC 6/30/2012 - THE IMAGE RECALL CORPORATION 53.57 6/30/2012 - - THE PALM COUNTRY CLUB 24.54 6/30/2012 - TKS PETRON SERVICE STATION 6/30/2012 - - TOP-GRADE PETRO PRODUCTS CORPORATION 6,774.00 6/30/2012 TRIO RESTAURANT AND WINE BAR INC 6/30/2012 - - TRIPMART TRAVEL AGENCY 17.57 6/30/2012 TRUE SERVICE STATION 423.21 6/30/2012 - - U-BIX CORPORATION 567.05 6/30/2012 VTECH AD WORX INCORPORATED 65,400.00 6/30/2012 - - 6/30/2012 54.61 6/30/2012 - - 107.14 - 192.86 - 280.10 - 9,174.63 - - 53.57 - 1,361.79 - - 17.14 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (

CTA CASE NO. 8854 Page 38 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Amount of Input VAT Taxable Exhibit Document Supplier Period No. WELLCOME KING CHOW FOODS CORP 85.18 - I' 2,331 324.83 6/30/2012 - Subtotal- Disallowed Input Tax p 2,431,014.59 Total Claimed Input Tax Considering that petitioner had exempt sales for the month of June 2012, portion of the valid input tax shall be allocated to such sales, as the same is not creditable against petitioner's output VAT liability, as computed below: Total exempt sales- June 2012 p 4 145,732.87 Divided by total declared sales- June 2012 Multiply by total valid input tax -June 2012 341 279,097.75 Input tax allocated to exempt sales 61,861.95 p 751.48 III. Excess input tax carried over to succeeding quarter - P10,159,773.44 Respondent disallowed petitioner's excess input tax of P10,159,773.44, asserting that the same was already carried over to the succeeding period as provided under Section 110(8) of the NIRC of 1997, as amended. The Court finds the disallowance improper. Any tax benefit derived by petitioner from such carry-over redounds to the succeeding period; thus, at most, petitioner may only be assessed in the succeeding period. 43 Accordingly, respondent's disallowance of P10,159,773.44 should be cancelled. In fine, petitioner has no deficiency VAT liability for the period from January 1, 2012 to June 30, 2012, since it has sufficient input tax credits to cover its output VAT liability for the same period, as shown below: Taxable receipts per VAT returns p 340,184,183.99 Output tax 40 822,102.08 Less: Input tax carried over from previous Pl1,448 182.73 quarter 38,072 631.00 Input tax on importation of goods 43 Power Sector Assets and Liabilities Management Corporation vs. Commissioner of Internal Revenue, CTA Case No. 8587, September 19, 2016; Greenhills Properties, Inc. vs. Commissioner ofInternal Revenue, CTA Case No. 8295, May 15, 2015 c.

CTA CASE NO. 8854 Page 39 of 39 My Solid Technologies & Devices Corp. vs. CIR DECISION Input tax on goods and services 2 431 014.60 P51 951,828.33 49 619 752.02 Less: Unsupported input tax p 2 331 324.83 2 332 076.31 (P 8 797 649.94) Valid input tax allocable to 751.48 42 265.56 exempt sales (P8,839,915.50) VAT gayable Less: Payments per ITS Overpayment/Excess Input Tax Credits WHEREFORE, premises considered, the instant Petition for Review is GRANTED. Accordingly, the deficiency value-added tax assessment covering the period from January 1, 2012 to June 30, 2012 in the aggregate amount of P65,928,415.74 is CANCELLED and SET ASIDE. SO ORDERED. CiLct; N. M....~.C~ WE CONCUR: CIELITO N. MINDARO-GRULLA Associate Justice Presiding Justice AEsRs:LC~~s.tiUcYe CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, 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 Chairperson, 1st Division