CTA Case No. 5209 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY AMERICAN EXPRESS INTERNATIONAL, INC. - PHILIPPINE BRANCH, Petitioner, C.T.A. CASE NO. 5209 : 2t2d9 y:ry<' - versus - COMM I SS I ONER OF I NTERNA~ e s :~~~ =~~ Pr o~~~g 1 97 ' X- - - - - - - - - - - - - - - - - - - - - - - - - - - X \. DECISION Case at �bar refers to a claim for refund of .�value added tax <VAT) input taxes paid on domestic purchases of taxable .goods and services amounting t<o P2,351,304.81 �......~�� covering the period March 1, 1993 to December 31, 1993. Petitioner Is a Phi I ipplne branch of American ........ Express International, Inc. <AMEX>, a corporation duly organized and existing under the laws of the State of Delaware, U.S.A., with office address at the Ground Floor, ACE Bui ldlng, corner Rada VI I lage, Makatl City. Its function is primarily to faci I itate collec.,tion of AMEX receivables from card members situated In the Phi I ipplnes and payment to service establishments in the Philippines. It Is registered as a Value Added Tax entity and was \ .. _ issued VAT Registration Certificate No. 088445 (Exh. "A- 1"; p. 59, CTA rec.).� For the period from March 1, 1993 to December 31, 1993, petitioner real lzed revenues in the amount of .' 1J7~

.� DECISION - C. T. A. CASE NO .. 5209 - 2- P50,325,150.14 which It claimed to be zero-rated as they were paid for in foreign currency inwardly remitted to the Phi I ipplnes and accounted for in accordance with Central Bank rules and regulations. For the same period, petitioner paid VAT input taxes on Its domestic purchases of taxable goods and services amounting to P2,351,304.81, alleged to be attributable to Its zero-rated revenue of P50,325,150.14. As the said VAT input taxes are duly supported by VAT-registered sales Invoices and/or official receipts issued by petitioner's suppliers in accordance with Section 108(a) and 238 of the Tax Code, and moreover, have not been used to pay any VAT output tax on, January 31, 1995 petitioner ~ filed a written claim for refund with the SIR's VAT Division In the amount of P2,351,304.81. The claim, not having been acted upon by respondent, was lodged with this Court on March 2, 1995. ., Respondent filed her Answer on May 11, 1995 alleging the following special and afiirmative defenses (pp. 22- 23, CTA reo.), to wit: '.' "8. Petitioner's claim for� refund of VAT input taxes . is pending administrative investigation; 9. In an action for tax refund/credit the burden of proof is upon the taxpayer to establIsh his right to the refund and fa i I ure to do so is fatal to the action for tax credit;

�:,, . . DECISION - C.T.A. CASE NO. 5209 ... f" - 3- 10. It Is incumbent upon the petitioner to show that It has compl led with the provisions of Section 106 in relation to Section 230 of the Tax Code; 11. Wei 1-settled is the rule that claim for refund Is construed strictly against claimant since It partakes of the nature of an exemption from taxation (Resins, Inc. vs. Auditor General, 255 SCRA 754)." The Issues .that are to be considered In this case are: 1. Whether or not services performed by petitioner �re subject to zero-rate VAT; and 2. Whether or not petitioner is entitled to a refund of its VAT input taxes paid on its domestic purchases of goods and services from March 1, 1993 to December 31, 1993 as they are alleged to be directly attributable to Its zero-rated revenues. As regards the first Issue, there is no doubt, that the services performed by petitioner are subject to zero- rate VAT. This has been confirmed by no less t~an the Deputy Commissioner of respondent, Eufracio D. Santos, when he issued to petitioner VAT Rul lng No. 080-89 dated Apr II 3, 1989 <Exh. "B", Pet.; p. 60, CTA rec. ) , pertinent portion of which states: "x x x In reply, please be informed that, as a VAT registered entity whose service is paid for In acceptable foreign currency� which Is remitted inwardly to the Phi I ippines and accounted for In accordance with the rules and 16?5

DECISION - C.T.A. CASE NO. 5209 - 4- regulations of the Central Bank of the Phi I lpplnes, your service income is automatlcal ly zero-rated effective January 1 ' 1988 [Section 102(a)(2) of the Tax Code as amended]. For this, there is no need to f i I e an appl icatlon for zero-rate." When a certified true copy of the above-quoted ru J.i ng was forma I Iy offered as Exhibit "B" for petitioner, respondent in her Comment (p. 108, CTA rec.) offered no objection as to Its existence but objected as to the veracity of Its contents. The Court cannot understand the logic behind the sweeping objection of respondent's counsel as to the veracity of the contents of the ruling of Mr. Eufraclo D. Santos, Deputy Commissioner of the Bureau of Internal Revenue. At the time of the issuance of the ruling on Aprl I 3, 1989, Mr. Santos was no ordinary employee in respondent's office. He was then one of the ranking officials of the Bureau of Internal Revenue, and as far as this Court Is concerned, whatever rul lng he i&Sues in his official capacity should be considered credible or in conformity with the truth and should be accorded respect and due consideration not only by the taxpayers, but first and foremost by Its own employees and that includes respondent's counsel in this .case. Wei 1-settled is the rule that findings and conclusions of government officials warrant the presumption of regularity and 1 ,j I�!!'L')

DECISION - C.T.A. CASE NO. 5209 - 5- correctness In the absence of proof to the contrary <La Campana Food Products, Inc. vs. The Court of Appeals, 221 SCRA 770). The objection of respondent's counsel relative to the veracity of the contents of the ruling <Exhibit "B" \. ~of petitioner) was not supported by any proof showing Its Incorrectness or untruthfulness. The Court, therefore, brushes aside said objection. With regard to the second issue, the Court, after ascertaining that petitioner's claim for refund was seasonably fl led within the reglementary period of two years pursuant to Section 106(b) of the Tax Code and that the services performed by it was paid for in acceptable foreign currency which was inwardly remitted to the Phi I lpplnes In accordance with the rules and regulations of the Bangko Sentral ng Pi I iplnas, grants only the sum ., of P1,738,436.84 representing input taxes for the period March 1 to December 31, 1993, computed as follows: Period Covered A11ount Per Less A11ount CPA Cert. Unallowable* Refundable March to May 1993 June to August 1993 p 364,211.30 p 81,171.90 p 283,039.40 Septe11ber to November 1993 1,044,242.41 181,980.49 862,261.92 Decnber 1993 10,173.50 457,651.22 467,824.72 1351484.30 TOTAL 1361833.69 11349.39 P1 1738,436.84 . P2 1013 1112.12 P274 1675.28 * See ANNEX 'A' for detailed co1putatlon of unal lorable input taxes. 16 '?I~)

DECISION - C.T.A. CASE NO. 5209 - 6- A more detailed computation of the unallowable Input �. �-� taxes is attached hereto as Annex "A" and forms an- integral part of this decision. t. WHEREFORE, finding the Instant petIt I on part+y- meritorious, the Court grants only the amount of P1 , 738, 436. 84 and hereby ORDERS. respondent to, REFUND,.--t.he�.,.....,.. same amount in favor of petItIoner as .1 nput taxes,.fo~~t,the...c.,.,, period March 1 to December 31-, 1993. SO ORDERED. "\ CER.T IF I CAT I ON hereby certIfy that the above decIsIon was."-,rea�ched:;- .. after due consultation with the members of the�Court of Tax Appea Is In �accordance wIth Sect I on 13�,. Ar.t tc-.1 e~� V bH��'�'��-i. of the Constitution. '-2z.o.~ ERNESTQ.,. D ~ ��..-ACOSTA,,-,,_ . Presiding Judge Court-, of, ,.ra x..,.,Appea4"~-.

AMERICAN EXPRESS. INTERNATIONAL, INC. - PHILIPPINE BRANCH vs. COMMISSIONER OF INTERNAL REVENUE ANNEX "A" Detailed Computation of Unallowable Input Taxes March 1993 to December 1993 Disallowed Input Tax for Karch to Nay 1993: Invoice/O.R. Supplier Number Date Exh. Input Tax Remarks 6 AFK Printing Inc. 362 02-26-93 6-1 ~ 10,309.09 Date not within the period covered 6-3 AM IntegJ.als 1087 03-15-93 6-4 3,994.35 No VAT No. imprinted in the invoice 6-5 Ayala Land, .Inc. 29128 05-05-93 6-19 7. 27 Rental not subject to VAT 6-20 Ayala Land, Inc. 26890 05-26-93 6-23 18.18 - do - 6-25 Ayala Land, Inc. 28093 04-19-93 6-26 1,350.00 - do - 6-27 Delbros 0110109 05-31-93 6-29 13.64 Overstatement of input tax claimed Delbros 0106466 05-22-93 ~6-31 16.36 - do - Delbros 0104184 04-12-93 6-36 2. 73 - do - 6-37 Delbros 0104894 04-24-93 6-39 13. 64 - do - Delbros 0104407 04-24-93 2. 73 do Delbros 0106333 05-15-9,3 36.36 - do - Delbros 0106179 05-15-93 11.82 - do - DHL 000280 04-10-93 0.15 - do - Dillshe Trading Co. 42085 01-18-93 2,686.36 Date not within thi ' per.iod covered 644.55 - do - Dillshe Trading Co. 42084 01-18-93 Euaflor Drug 50706 03-17-93 10.77 Violation of invoicing requirement under Sec. 238 of NIRC (sold to cash) Euaflor Drug 63945 04-13-93 6-40 27.13 - do - Euaflor Drug 63585 04-26-93 6-41 9.33 - do - Euaflor Drug 55465 03-24-93 6-42 30. 37 - do - Euaflor Drug 53000 03-16-93 6-42 37.47 - do Euaflor Drug 59536 03-09-93 6-43 16. 00 - do - Equitable Technology 114 02-18-93 6-44 24,948.00 Date not within the period covered fair Center 152493 03-08-93 6-45 12.25 Violation of invoicing requirement under Sec. 238 of NIRC (sold to cash) Fair Center 155738 03-31-93 6-46 9.48 - do - Fair Center 19404 05-14-93 6-47 23. 27 - do - Fair Center 5213 04-05-93 6-48 8. 75 do - Far1acia Arsenia 88418 03-25-93 6-49 7. 20 - do - Farucia Peralta 84112 03-08-93 6~50 29.19 - do - Farucia Peralta 84320 . 03-11-93 6-51 8.15 do Farucia Peralta 85252 04-12-93 6-52 10.22 - do - Farucia Peralta 84761 03-23-93 6-52 3. 61 - do - Far1acia San Lorenzo 191282 04-01-93 6-53 3.86 - do - Far1acia San Lorenzo 190483 03-18-93 6-54 0. 99 - do - Far1acia San Lorenzo 190865 03-25-93 6-55 7.73 - do - International Drugs 19690 03-02-U 6-67 13.71 Sold to Gerry Abellas International Drugs 20156 03-13-93 G-67 10.02 - do - J.p. Uy 347 05 01-13-93 6-79 622.73 Date not within the period covered La Botica 005883 03-07-93 6-86 12. 19 Violation of invoicing requirement under Sec. 238 of NIRC (sold to cash)

La Botica 006543 03-30-93 6-87 3.86 - do - lopry�s Drug 6366 03-17-93 6-96 5.66 - do - Lopry�s Drug 61287 03-07-93 6-97 2. 75 - do - hkati Medical 4051 03-01-93 6-98 6.46 - do - Manor Drug Store 374884 03-22-93 6-99 4. 67 - do - Mary Johnston Hosp. 67996 03-16-93 6-100 17. 27 - do - McGeorge food Ind. 667103 05-04-93 6-107 40.91 - do - Merced Drug� 50932 04-09-93 6-108 8.70 - do - Merced Drug House 155445 04-09-93 6-109 17 �49 - do - Mercury Drug Corp. 163301 05-06-93 6-.130 8.51 - do - �Mercury Drug Corp. 277 91 05-02-93 6-133 21. 45 - do - M~rcury Drug Corp. 694626 05-09-93 6-115 3.11 - do - Mercury Drug Corp. 56053 04-12-93 6-133 22.15 - do - Mercury Drug Corp. 651170 03-04-93 6-116 17.45 - do - Mercury Drug Corp. 30176 03-16-93 6-131 56.51 - do - Mercury "Drug Corp. 653206 04-16-93 6-117 12.03 - do - Me~cury Drug Corp. 33869 04-15-93 6-134 29. 21 - do - Mercury Drug Corp. 725213 04-27-93 6-117 5.04 - do - Mercury Drug Corp. 5114 0 03-02-93 6-134 5. 45 - do - Mercury Drug Corp. 725877 05-01-93 . 6-118 8.94 - do - Mercury Drug Corp. 51251 03-02-93 6-134 5. 05 - do - Mercury Drug Corp. 955723 03-07-93 6-118 15.4 3 - do - Mercury Drug Corp. 53791 03-27-93 6-135 25.30 - do - Mercury Drug Corp. 881462 03-04-93 6-119 18.89 - do - Mercury Drug Corp. 188806 03-26-93 6-135 7. 40 - do - Mercury Drug Corp. 929313 03-07-93 6-119 3. 88 - do - ~ 17.16 - do .:. Mercury Drug Corp. 563500 03-27-93 6-135 Mercury Drug C9rp. 869099 03-02-93 . 6-120 16.18 - do - Mercury Drug Corp. 189977 05-18-93 6-135 15. 25 - do - Mercury.Drug Corp. 864699 03-11-93 6-120 20.07 - do - Mercury Drug Corp. 462852 03-21-93 6-136 15.23 - do - Mercury Drug Corp. 960386 04-14-93 6-121 20.64 - do - Mercury Drug Corp. 464073 04-29-93 6-136 14.8 2 - do - Mercury Drug Corp. 966479 04-13-93 6-121 45.00 - do - Mercury Drug Corp. 424172 03-10-93 6-136 8.51 - do - Mercury Drug Corp. 871639 03-30-93 6-122 20. 86 - d0 - .. , Mercury Drug Corp. 424203 03-10-93 8. 00 - do - ; j~ Mercury Drug Corp. 763776 03-26-93 6-122 27.93 - do - Mercury Drug Corp. 455299 03-09-93 6-137 4. 79 - do - ., Mercury Drug Corp. 747141 03-14-93 6-123 13. 53 - do - Mercury Drug Corp. 455745 05-02-93 6-137 6.11 - do - Mercury Drug Corp. 758053 04-06-93 6-123 8.92 - do - Mercury Drug Corp. 219131 05-18-93 6-137 7. 00 - do - �l' Mercury Drug Corp. 763482 03-24-93 6-124 10.61 - do - Mercury Drug Corp. 407698 05-06-93 6-137 20.32 , - do - Mercury Drug Corp. 795766 03-12-93 6-124 10.33 - do - Mercury Drug Corp. 463923 04-25-93 6-138 14.82 - do - Mercury Drug Corp. 799078 ' 05-13-93 6-125 15.04 - do - Mercury Drug Corp. 455781 03-U-93 6-138 5. 72 - do - Mercury Drug Corp. 828826 04-04-93 6-125 19. 85 - do - Mercury Drug Corp. 464340 04-12-93" 6-138 18.52 - do - Mercury Drug Corp. 859257 03-10-93 6-126 40. 38 - do - Mercury Drug Corp. 549722 04-06-93 6-138 16.46 � - do - Mercury Drug Corp. 102685 05-01-93 6-126 10.64 - do - Mercury Drug Corp. 550096 04-17-93 6-139 19. 44 - do - Mercury Drug Corp. 102121 05-07-93 6-127 17. 26 - do -

-~---------------- .' M~ rcury Dr ug _c orp� 562726 03-04-93 6-139 6.32 - do - Mercury Drug Corp. 71431 04-18-93 6-127 3. 68 - do - :~,Mercury Drug Corp. 562727 03-06-93 6-139 2.35 - do - Mercury Drug Corp. 79152 03-17-93 6-128 8. 00 - do - Mercury Drug Corp. 407841 05-07-93 6-139 34.7 0 - do - Mercury Drug Corp. 100292 03-17-93 6-128 46. 64 - do - Mercury Drug Corp. 215143 03-17-93 6-140 13.09 - do - Meicury Drug Corp. U4845 04-04-93 6-129 6. 62 - do - Mar~ury Drug Corp. 252953 04-20-93 6-140 36.58 - do - Mercury Drug Corp. 114965 04-06-93 6-129 31.62 - do - Mercury Drug Corp. 237053 04-08-93 6-140 7. 40 - do - Mercury Drug Corp. 129721 03-28-93 6-130 17.26 - do - Mercury Drug Corp. 392568 04-29-93 6-140 22.11 - do - Mercury Drug Corp. 170407 04-10-93 6-13 0 8. 09 - do - Mercury Drug Corp. 238654 04-21-93 6-141 2. 75 - do - 18.50 - do - '� hr.~ ury Drug Corp. 188850 04-28-93 6-131 Mercury Drug Corp. 240769 03-08-93 6-141 18. 98 - do - Mercury Drug Corp. 28169 05-13-93 6-131 22.75 - do - Mercury Drug Corp. 241457 03-15-93 6-141 51.71 - do - Mercury Drug Corp. 7895 03-21-93 6-132 2.30 - do - Mercury Drug Corp. 250168 03-19-93 6-141 50 . .19 - do - Mercury Drug Corp. 17647 04-11-93 6-132 57.92 - do - Mercury Drug Corp. 405942 04-20-93 6-14 2 10.83 - do - Mercury Drug Corp. 114994 04-08-93 6-133 23.81 - do - Mercury Drug Corp. 253199 05-25-93 6-14 2 19. 50 - do - Mercury Drug Corp. 652085 04-03-93 6-117 11.39 - do - Mercury Drug Corp. 348436 03-10-93 6-142 62.18 - do - Mercury Drug Corp. 599388 03-01-93 6-118 10. 81 - do - Mercury Drug Corp. 339430 03-03-93 6-142 32. 03 - do - Mercury Drug Corp. 872019 04-02-93 6-119 5. 25 - do - Mercury Drug Corp. 269925 03-08-93 6-143 6.13 - do - Mercury Drug Corp. 929488 03-03-93 6-120 47. 86 - do - Mercury Drug Corp. 285290 03-22-93 6-143 4. 78 - do - Mercury Drug Corp. 955724 03-07-93 6-121 4. 66 - do - Mercury Drug Corp. 329817 04-10-93 6-143 28. 21 - do - Mercury Drug Corp. 973693 04-29-93 6-122 10. 46 - do - Mercury Drug Corp. 310011 04-28-93 6-143 33.36 - do - Mercury Drug Corp. 797666 04-20-93 6-123 25.15 - do - Mercury Drug Corp. 751416 05-05-93 6-123 19. 81 - do - ., Mercury Drug Corp. 628960 05-02-93 6-115 52.57 - do - Mercury Drug Corp. 758722 04-29-93 6-124 33.46 - do - Mercury Drug Corp. 859498 03-02-93 6-125 30.16 - do - Mercury Drug Corp. 629566 05-17-93 6-115 29. 89 - do - Mercury Drug Corp. 837387 03-05-93 6-126 13. 47 - do - Mercury Drug Corp. 694221 04-29-93 6-116 7. 78 - do - Mercury Drug Corp. 568023 05-10-93 6-127 9. 86 - do - Mercury Drug Corp. 710744 04-22-93 6-110 13 .15 - do - Mercury Drug Corp. 714 87 04-20-93 6-128 5.32 - do - Mercury Drug Corp. 710867 04-25-93 6-110 9. 46 - do - Mercury Drug Corp. 66092 03-20-93 6-129 11.58 - do - Mercury Drug Corp. 715995 03-11-93 6-110 15. 78 - do - Mercury Drug Corp. 562742 03-05-93 6-130 1. 83 - do - Mercury Drug Corp. 721426 03-06-93 6-140 5. 42 - do - Mercury Drug Corp. 67460 04-26-93 6-131 9. 86 - do - Mercury Drug Corp. 721700 03-01-93 6-111 3. 35 - do - Mercury Drug Corp. 7784 03-19-93 6-132 8. 66 - do -

Mercury Drug Corp. 722483 03-20-93 6-111 3.27 - do - Mercury Drug Corp. 25 345 03-06-93 6-133 26. 62 - do - Mercury Drug Corp. 694676 05-11-93 6-111 2. 59 - do - .��, Mercury Drug Corp. 681970 04-20-93 6-117 18.52 - do - Mercury Drug Corp. 723033 04-01-93 6-111 3. 39 - do - Mercury Drug Corp. 905687 03-09-93 6-119 46.0 7 - do - Mercury Drug Corp. 724163 04-12-93 6-112 4. 42 - do - Mercury Drug Corp. 960529 04-16-93 6-121 46. 65 - do - Mercury Drug Corp. 724199 04-14-93 6-112 6.25 - do - Mercury Drug Corp. 746797 03-11-93 6-124 8. 21 - do - Mercury Drug Corp. 724346 04-18-93 6-112 4. 71 - do - Mercury Drug Corp. 605702 03-09-93 6-125 5.42 - do - Mercury Drug Corp. 725098 04-26-93 6-14 2 5.12 - do - Mercury Drug Corp. 8114 3 03-31-93 6-128 5. 88 - do - Mercury Drug Corp. 725111 04-24-93 6-113 3. 48 - do - Mercury Drug Corp. 650232 03-20-93 6-116 18. 81 - do - �.',�' Mercury Dr'bg Corp. 694826 05-12-93 6-113 8. 95 - do - Mercury Drug Corp. 8330 03-28-93 6-132 31.7 9 - do - Mercury Drug Corp. 725428 04-25-93 6-113 3.74 - do - Mercury Drug Corp. 929998 03-04-93 6-118 5. 73 - �do - .�.�-, Mercury Drug Corp. 694650 05-12-93 6-113 4. 50 - do - Mercury Drug Corp. 746614 03-06-93 6-122 38.42 - do - Mercury Drug Corp. 632~6 03-04-93 6-114 45. 00 - do - Mercury Drug Corp. 114885 04-05-93 6-127 15.01 - do - Mercury Drug Corp. 650711 03-12-93 6-114 5.65 - do - Mercury Drug Corp. 25556 03-09-93 6-131 3.17 - do - Mercury Drug Corp. 607060 03-25-93 6-114 12.29 - do - Mercury Drug Corp. 955345 03-10-93 6-120 18.3 5 - do - Mercury Drug Corp. 614660 03-03-93 6-114 5.70 - do - Mercury Drug Corp. 619 46 04-15-93 6-129 22. 41 - do - Mercury Drug Corp. 822306 04-29-93 6-125 14 .18 - do - Mercury Drug Corp. 651134 03-07-93 6-116 6.81 - do - Mercury Drug Corp. 614804 03-02-93 6-115 20.66 - do - Mercury Drug San P. 112433 04-07-93 6-114 4. 50 - do - Mercury Drug San p. 112607 04-10-93 6-144 9. 59 - do - Miracure Drug 434 03-21-93 6-146 25.60 - do - MP6 Botica Inc. 27513 04-13-93 6-155 9.00 - do - MFJ Drug Store 22416 04-29-93 6-156 5.20 - do - National Bookstore 844879 03-17-93 6-159 5. 82 - do - National Bookstore 369799 05-21-93 6-157 8. 73 - do - �., National Bookstore 859921 04-28-93 6-158 8. 36 - do - National Bookstore 858543 04-22-93 6-158 15.32 - do - National Bookstore 84413 04-11-93 6-159 11.6 4 - do - National Bookstore 39513 03-03-93 6-157 7.05 - do - Opti Drug 102179 03-24-93 6-163 8.16 - do - Park &Shop, Inc. 1117 03-01-93 6-16 5 37. 50 - do - Pascual Drug Store 314016 04-17-93 6-166 6. 76 - do - Philcris Drug Store 614 9 03-18-93 6-17 0 13.25 - do - Plllpinas Photo 4265 04-27-93 6-171 7.87 - do - Plaza Fair 969 04-23-93 6-172 9. 67 - do - P. I. Drug Store 12152 04-08-93 6-17 5 32. 79 - do - Sarabia Optical. 75553 03-26-93 6-179 25.45 - do - Save More Drug 31917 04-04-93 6-180 24. 67 - do - Scarlet Drug 68557 03-03-93 6-181 6. 68 - do - MFJ Drug Store 7456 04-29-93 6-188 16.80 - do - Siemens 2885 02-22-93 6-207 1,264.09 Date not 11ithin

Siemens 1659 12-18-92 6-208 7,920.00 - do - SM Equicom 175196 03-03-93 6-210 13,521.18 PR only without BIR perait to print SM Equicom 03-19-93 G-211 10,730.73 St. Peregrine Drug 6998 03-29-93 6-216 - do - 18180 9.39 Violation of invoicing requireaent under Sec. 238 of NIRC (sold to cash)� Susano Drugstore 25912 03-31-93 6-217 3. 36 - do - Susano Drugstore 25743 03-09-93 6-218 8.51 - do - Tropical Hut Food 64054 04-14-93 6-223 7. 53 - do - Tropical Hut Food 64525 05-01-93 6-223 6.43 - do - llorldcare Drug 3370 03-06-93 6-233 8. 51 - do - TOTAL P81. 171.90 Disallowed~Input Tax for June to August 1993 Invoice/O.R. Supplier Number Date Exh. Input Tax Remarks 6-252 ~ 41.00 Delbros 0104641 08-13-93 6-254 Overstatement of input tax claiaed 6-255 36.36 Del bros 0104518 08-06-93 6-256 4.55 - do - 6-257 37.2 7 Delbros 0119026 08-31-93 6-260 21.82 -do- 6-2 6'1 70.91 Delbros 0110727 07-23-93 6-263 23.64 - do - 6-265 Delbros 0104810 08-20-93 6-267 43. 64 - do - 6-268 10.91 Delbros 0110550 07-16-93 6-270 - do - 2.73 Delbros 0111908 07-09-93 6-345 30. 91 - do - 6-373 57.2 7 Delbros 0110309 06-11-93 209.91 - do - 6-498 Delbros 0111755 06-30-93 6-503 9.01 - do - 6-523 4,278.81 Delbros 0104936 08-27-93 6-524 5,182.60 - do - 6-524 50,323.77 Delbros 0111619 06-25-93 6-5 28 7,803.41 - do - 6-546 31,926.00 Delbros 0110479 06-18-93 - do - 6-560 59. 45 Delbros 0118074 07-31-93 9,011.91 No docuunt JRS Business Corp. 57669 07-26-93 685.00 Refers to the saae itea in Exh. 6-344 65,287.91 Leadcom Asia 00377 07-26-93 1,260.00 PR only without BIR peralt to print, 5,561.70 Rapid Lithographic 2011 08-27-93 P181,980.49 No docu1ent �� Robbie Stylographic 1951 08-06-93 Refers to the saae itea in .Exh. 6-509~~ Robbie Stylographic 1847 07-16-93 Refers to the sue itn in Exh. 6:-507��.: '� SM Equicom 7511 08-11-93 PR only without BIR perlit to print , SM Equicom 7640 08-19-93 - do - SN Equicom 7639 08-19-93 - do - SN Equicom 7471 06-22-93 - do - Toyota Shaw, Inc. 10271 07-15-93 - do - Unit One Design 4443 06-12-93 Refers to the sue itn in Exh. 6-ssr� Unit One Design 2362 08-06-93 Entered twice in .the schedule TOTAL Disallowed Input Tax for September to November 1993 Supplier Invoice/O.R. Ex h. Input Tax Rnarks BEHR Trdg. &Services NUillber Date 6-572 369.64 PR only without BIR perait BEHR Trdg. &Services 6-573 421.60 Delbros 44 33 10-05-93 6-581 23.18 - do - Delbros 44 74 11-05-93 6-582 58.18 Overstatnent of Delbros 0122032 10-22-93 6-583 33.18 - do - 0122221 10-31-93 6-585 38.73 - do - Delbros 0122439 11-12-93 6-586 9. 09 - do - Delbros 0120167 09-30-93 - do - 0122335 11-06-93 --~

Delbros 0124084 11-19-93 6-587 49.09 - do - Delbros 0119380 09-17-93 6-588 26.82 - do - Microbase Inc. 0120462 10-15-93 6-589 30.27 - do - SN Equicu 0120301 10-08-93 6-590 9.09 - do - TOTAL 0120017 09-24-93 6-592 10.4 5 - d0 - 0119225 09-10-93 6-593 37.27 - do - 12-02-93 45. 00 Also claiud in December schedule 0227 08-19-93 6-524 9.011.91 PR only 11ithout BIR permit to print 7639 jl 10.173.50 Disallo11ed Input Tax for Decuber 1993 Invoice/O.R. 1,'�� suulier NUiber Date Exh. In2ut Tax Remarks Delbros 190384 12-15-93 6-785 jl 288.94 Refers to the sue item in Exh. 6-587 Delbros 0125745 12-17-93 6-786 29.09 Overstatuent of input tax claimed '�:�-,. Del bros 0125606 12-10-93 6-787 31.36 - do - Dillshe trading Co. 32931 �12-03-93 6-789 1.ooo.oo Refers to the same item in Exh. 6-606 TOr'AL jl 1.349.39 .....