CHEVRON HOLDINGS, INC., v. COMMISSONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS Q uezon City FIRST DIVISION CHEVRON HOLDINGS, INC., CTA CASE NO. 9266 Petitioner, Members : -versus- DEL ROSARIO , P.J. , Chairperson, MANAHAN, and REYES-FAJARDO , JJ. COMMISSIONER OF INTERNAL REVENUE, Respondent. X- - - - - - - - - - - - - - - - - - - - - - - - AMENDED DECISION DEL ROSARIO, P.J.: For resolution are the following: 1. Petitioner's Supplemental Formal Offer of Evidence filed on November 4 , 2021 ,1 with respondent's Comment (Re: Supplemental Formal Offer of Evidence) fi led on Novem ber 15 , 2021 ; and, 2. Petitioner's Motion for Reconsideration (Re: Decision dated October 7, 2020) fi led through registered mail on October 28 , 2020 ,2 with respondent's Opposition (Re: Omnibus Motion (1) Motion for Reconsideration of the Decision dated 7 October 2020 ; and (2) Urgent Motion to Reopen Case) fil ed on January 11 , 2021 . To recall , petitioner fi led on October 28, 2020 th roug h registered mail its Omnibus Motion (1) Motion for Reconsideration (Re: Decision dated October 7 , 2020) (2) Urgent Motion to Reopen Case, with respon dent's Opposition (Re: Omnibus Motion (1) Motion for Reconsideration of the Decision dated 7 October 2020; and (2) Urgent Motion to Reopen Case) fi led on January 11, 2021 . 1 Through reg1stered mall and electroniC mall 2 One of the mot1ons stated in pet1t1oner's Omn1bus Mot1on f1led on October 28 . 202~

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 In the Resolution dated May 31, 2021, petitioner's Motion to Reopen Case was granted in the interest of truth and justice, and the resolution of its Motion for Reconsideration was held in abeyance pending the presentation of petitioner's supplemental evidence, and the clearer/legible copies of certain exhibits, as specified in its Omnibus Motion. Accordingly, a Commissioner's Hearing was held on October 19, 2021 and the presentation of petitioner's evidence proceeded on October 26, 2021. Pursuant to the Court's Order dated October 26, 2021, petitioner's Supplemental Formal Offer of Evidence was filed on November 4, 2021, 3 with respondent's Comment (Re: Supplemental Formal Offer of Evidence) filed on November 15, 2021. On December 16, 2021, petitioner's Supplemental Formal Offer of Evidence filed on November 4, 2021, with respondent's Comment (Re: Supplemental Formal Offer of Evidence) filed on November 15, 2021, and petitioner's Motion for Reconsideration, were submitted for resolution. The Court shall now resolve the aforesaid pending incidents. Supplemental Formal Offer of Evidence Acting on petitioner's Supplemental Formal Offer of Evidence filed on November 4, 2021, 4 with respondent's Comment (Re: Supplemental Formal Offer of Evidence) filed on November 15, 2021, this Court resolves to ADMIT Exhibits "P-55.1 ", "P-55.2", "P- 55.3", "P-55.4", "P-55.5", "P-55.6", "P-55.7", "P-55.8", "P-55.9", "P-55.10", "P-55.11", "P-55.12", "P-55.13", "P-55.14", "P-55.15", "P-56.1", "P-56.2", "P-56.3", "P-56.4", "P-56.5", "P-57'', "P-57.1", "P-31-458", "P-31-666", "P-31-1 037", "P-31-2428", "P-31.2448", "P-31.2452", "P-31.2584", "P-31.2590", "P-31.2602", "P-31.2604", "P-31.2762", "P-31.2766", "P-32.7", "P-32.9", "P-32.19", "P-32.25", "P-32.27", "P-32.49", "P-32.53", "P-32.59", "P-32.61 ", "P-32.63", "P-32.67", "P-32.69", "P-32.204", "P-32.230", "P-32.252", and "P- 32.254", subject to this Court's final evaluation and/or appreciation of their purposes, materiality, relevancy, and probative value to the issues involved in this case. 3 Through registered mail and electronic mail. 'Through registered mail and electronic mail.l'11

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 The Court notes certain discrepancies in the description of exhibits in the Supplemental Formal Offer of Evidence and the actual documents marked, viz.: Exhibit Description Actual Document P-55.3 Certificate of Approval for P-55.15 Articles of Approval for Establishment of Enterprises with P-56.2 Investment of Taiwan, Hongkong, Establishment of Enterprises with Macao and Overseas Chinese in the P-56.3 People's Republic of China of Chevron P-56.4 Foreign Investment in the People's (China) Investment Co., Ltd. P-56.5 Republic of China of Caltex (China) Investment Co , Ltd. (Now Chevron (China) Investment Co , Ltd.) Business License Certification of Business License (Duplicate) issued to Chevron (China) Investment Co., Inc. Chevron (China) Investment - Services Email request dated August 12, Email dated August 12, 2015 merely requesting for authenticated/ 2015 requesting the Certificate consularized incorporation documents of Chevron International Pte. Ltd. Confirming Incorporation of There is no indication in the email regarding the request for the Certificate Company under the New Name of of Continuance of Chevron Asia Pacific Holdings Limited with attached Chevron International Pte. Ltd. Memorandum of Continuance of Company Limited By Shares. (Exhibit P-55) and Certificate of Continuance of Chevron Asia Pacific Holdings Limited with attached Memorandum of Continuance of Company Limited B~ Shares ------~~---- Email dated January 6, 2015 Email dated January 6, 2015 requesting the Articles of requesting the Articles of Incorporation Incorporation of Chevron ofCCNs. (Cambodia) Limited (Exhibit P- There is no indication in the email 55.2) and Certificate of regarding the request for Amendment of Certificate of Certificate of Amendment of Certificate Incorporation of Chevron of Incorporation of Chevron Overseas UOverseas Services Corporation___ Services Corporation. Email dated November 22, 2009 ���~------ Email dated November 22, 2009 requesting the Articles of requesting the Articles of Incorporation Association of Caltex (China) of the entities listed in the excel file. Investment Co, Ltd. (Now Chevron (China) Investment Co., Ltd) (Exhibit P-55 3), Memorandum of Incorporation of Chevron South Africa (Pty) Ltd. ' (Exhibit P-55.11 ), Business Profile of Chevron Trading Pte. Ltd. (Exhibit P-55.12), and Restated Certificate of Incorporation of Chevron Global Energy Inc. J.l:;xhibit P-55.14) Email request dated April 7, 2014 Email dated April 7, 2014 requesting information if there has been a requesting the Articles of directive addressed to all Chevron entities to change name from Caltex to Association of Chevron Lubricants Chevron. There is no indication regarding a request for the Articles of Lanka PLC Association of Chevron Lubricants Lanka PLC. tn

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 P-32.53 I Sales Invoice No. 310173843 Sales Invoice No. 310173843 issued issued by Integrated Computer by Integrated Computer Systems, Inc. Systems, Inc. on February 15, on February 5, 2014 2014 -~-~- ... L With the admission of the foregoing exhibits in evidence, the Court shall proceed to resolve petitioner's Motion for Reconsideration (re: Decision dated October 7, 2020), which prays for the partial reconsideration of the Decision dated October 7, 2020. Petitioner's Motion for Reconsideration Petitioner prays for the reconsideration of the Decision dated October 7, 2020 which granted its claim in the reduced amount of P6,443,989.88. Petitioner insists that it is entitled to the refund or the issuance of a tax credit certificate in the amount of P84,228,009.20, representing its alleged excess and unutilized input VAT attributable to zero-rated sales for calendar year 2014. Taking into consideration the records of this case, including the aforesaid admitted additional evidence, the Court finds petitioner's Motion for Reconsideration partly meritorious. Petitioner proved that it had zero-rated sales during the subject period but only in the amount of P3,017,038,914.02 As stated in the assailed Decision, to be considered as a non- resident foreign corporation doing business outside the Philippines, each entity must be supported, at the very least, by both the Certificate of Non-Registration of Corporation/Partnership issued by the Securities and Exchange Commission (SEC) AND proof of foreign incorporation/registration (i.e., Certificate/Articles of Foreign Incorporation/Association or printed screenshots of the US SEC Website showing the state/province/country where the entity was organized, or Tax Residence Certificate). The assailed Decision noted that petitioner made a valid zero- cl/ rated sales to only seven (7) clients which were considered as non- resident foreign corporations (NRFCs), viz.:

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 -~-~- �---- Client SEC Proof of foreign Certificate incorporation/registration of Non- Exhibit No. Document Registration Chevron (Thailand) Limited "P-15.4" "P-16.27"; Letter of Certification of the Chevron Australia Pty Ltd - "P-19.5" to Text that the Register "P-19.5.1" Keeps Under the Foreign "P-15.10" Business Act B.E. 2542 (1999); Screens hot of US SEC website "P-16.5"; "P- Certificate of Registration of 19.1"to"P- Change of Name; Screen shot of US SEC 19.1.1" website Chevron Global Energy Inc. "P-15.16" "P-19.3" to Screens hot of US SEC "P-19.3.1" website Chevron New Zealand "P-15.25" "P-16.25" Certificate of Incorporation Chevron Singapore Pte. Ltd. "P-15.30" "P-17-3" with attached Constitution of Caltex Oil (N.Z.) Limited; -� Certificate of Status of Enterprise stating that the "P-16.19" company is registered in New Zealand and is a resident for tax purposes -----~~-~ Certificate Confirming Incorporation of Company with attached Certificate of Incorporation Chevron U.S.A. Inc. "P-15.34" "P-16.8" Certificate of Registration of (Singapore Branch) "P-15.38" Foreign Company �- --- "P-16.9"; "P- Certif1cate of Incorporation 19.4" to "P- of Change of Name. Chevron North Sea Limited Screens hot of US SEC 19.4.1" webs1te; Certificate of Residence The assailed Decision likewise held that the sales to one of petitioner's alleged clients, "Chevron Corporation", in the total amount of P212, 744,285.44 cannot qualify for VAT zero-rating since no service agreement or any contract was submitted to prove that the services rendered by petitioner to "Chevron Corporation" are services other than processing, manufacturing or repacking goods in accordance with Section 108(8)(2) of the National Internal Revenue Code (NIRC) of 1997, as amended.~

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 1. Service agreements and screenshots of petitioner's Subqovern Website do not, bv themselves, prove the NRFC status of petitioner's clients In its Omnibus Motion, petitioner submits that it has sufficiently proved that the rest of its clients are NRFCs doing business outside the Philippines. Petitioner contends that the Service Agreements, which show the addresses of said clients, clearly prove that the entities are conducting business outside the Philippines. Petitioner likewise argues that the screenshots of its own Subgovern Website are not self- serving pieces of evidence because such exhibits were properly presented in Court, and respondent was given every opportunity to cross-examine and test the truthfulness thereof during trial. Petitioner also contends that the Court should have considered the printed screenshots of the US SEC Website which indicates the state, province or country in which petitioner's affiliates were organized. In the case of Commissioner of Internal Revenue vs. Deutsche Knowledge Services Pte. Ltd., 5 the Supreme Court ruled that: "For purposes of VAT zero-rating under Section 108(8)(2) of the Tax Code, the claimant must establish the two components of a client's NRFC status, viz.: (1) that their client was established under the laws of a country not the Philippines or, simply, is not a domestic corporation; and (2) that it is not engaged in trade or business in the Philippines. To be sure, there must be proof of both of these components: showing that the clients are not only foreign corporations, but also are not doing business in the Philippines. x x x To the Court's mind, the SEC Certifications of Non- Registration show that their affiliates are foreign corporations. On the other hand, the articles of association/certificates of incorporation stating that these affiliates are registered to operate in their respective home countries, outside the Philippines are prima facie evidence that their clients are not engaged in trade or business in the Philippines. Proof of the above-mentioned second component sets the present case apart from Accenture, Inc. v. Commissioner of Internal Revenue and Site/ Philippines Corp. v. Commissioner of Internal Revenue. In these cases, the claimants similarly presented SEC Certifications and client service agreements. However, the Court consistently ruled that documents of this nature only establish the first component (i.e., that the affiliate is foreign). The absence of any other competent evidence (e.g., articles of ()1 5 G.R. No. 234445. July 15, 2020

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 association/certificates of incorporation) proving the second component (i.e., that the affiliate is not doing business here in the Philippines) shall be fatal to the claim for credit or refund of excess input VAT attributable to zero-rated sales." (Boldfacing supplied) Indeed, the rule is trite that service agreements, even taken together with an SEC Certificate of Non-Registration, do not prove that the foreign clients were doing business outside the Philippines or have a continuity of commercial dealings outside the Philippines. Simply put, the service agreements cannot substitute the required foreign incorporation/registration documents required by law. Anent the screenshots of petitioner's Subgovern Website, it must be noted that the same were admitted as electronic evidence by the Court. 6 Even though the screenshots of the Subgovern Website were admitted in evidence, such admission should not be confounded with the determination of their probative value. A particular item of evidence may be admissible, but its evidentiary weight depends on judicial evaluation within the guidelines provided by the rules of evidence 7 With this in mind, the Court concluded that the computer- generated data contained in the printouts of the Subgovern Website are sourced from a website maintained by petitioner's affiliated companies, and access to such website is likewise limited to such companies. Said documents can easily be manipulated to favor petitioner in view of its affinity with the entity that maintains or keeps the databasee As such, the information contained therein may not be given full faith and credit. It is further erroneous for petitioner to claim that the Court did not consider the printed screenshots of the US SEC Website in proving that a client is not doing business in the Philippines. As can be found in the Decision, certain clients were considered as NRFCs in consideration of the printed screenshots of the US SEC Website, namely: (1) Chevron Australia Pty. Ltd; and (2) Chevron North Sea Limited. 6 Resolution dated November 22, 2019, Docket, Vol. 6, pp. 3278-3291. 7 Manco/ vs. Development Bank of the Philippines, G.R. No. 204289, November 22, 2017. 8 Commissioner of Internal Revenue vs. Chevron Holdings, Inc .. CTA EB No. 1950 (CTA Case No 8946); Chevron Holdings, Inc. vs. Commissioner of Internal Revenue, CTA EB No. 1951 (CTA Case No. 8946), June 3, 2020. ~

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 2. Sales to Chevron Corporation are considered as zero-rated sales With regard to alleged VAT zero-rated sales to "Chevron Corporation", the Court disallowed the total amount of P212, 744,285.44 for petitioner's failure to submit its service agreement with said corporation, which would prove that the services rendered were other than processing, manufacturing or repacking of goods, as provided under Section 108(B)(2) of the NIRC of 1997, as amended. Petitioner contends that even if there is no service agreement to show that the services rendered to said client were "other than processing, manufacturing or repacking of goods," the SEC Certificate of Registration would be sufficient to show that the type of service rendered falls within the scope of "services other than processing, manufacturing or repacking of goods... Upon review of its Certificate of Registration and License duly issued by the SEC, 9 petitioner is licensed to do business as a Regional Operating Headquarters (ROHQ) in the Philippines. Petitioner is authorized to engage in the following services or functions: general administration and planning; business planning and coordination; sourcing and procurement of raw materials and components; corporate finance advisory services; marketing control and sales promotion; training and personnel management; logistic services; research and development services and product development; technical support and maintenance; data processing and communication; and business development Moreover, petitioner's witness, Mr. Benedicta A. Santos, petitioner's Manager-Business Analysis and Support, testified that petitioner is a "shared services center" offering finance, human resource, information technology, and procurement services to its affiliates; and that a service agreement is not executed when petitioner provides only ad hoc, one-time or occasional services, to its foreign affiliates. In the words of Mr. Santos, there are approximately 1,800 entities embraced and operating under the Chevron Group of Companies worldwide. Given the enormity of petitioner's organization, it would be impractical and operationally unfeasible to request each and every Chevron affiliate to execute a written contract with the petitioner before providing the said services, viz: 9 Exhibit "P-1", CTA Docket, Vol IV, p 1855 ~

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 "Q6: You mentioned that Petitioner acts as a shared services center. What does it mean to be a "shared services center"? A: As a shared services center, Petitioner offers finance, human resources, information technology, and procurement services to its affiliates. XXX XXX XXX XXX Q30: Mr. Witness, you also mentioned Service Agreements as proof that Petitioner's services were provided to entities engaged in business conducted outside the Philippines. What are these Service Agreements? A: For customers that the Petitioner regularly renders services to, Petitioner executes Service Agreements which contain the terms and conditions regarding the scope of work, nature of relationship, the service fee, billings and payments, among others. On the other hand, if the Petitioner only provides ad hoc, one-time or occasional services for its foreign affiliates, then the services are billed and paid on a per transaction basis without need to execute a Service Agreement. XXX XXX XXX Q35: You mentioned that the Petitioner also provides ad hoc services to foreign affiliates that are not covered by Service Agreements. Does this mean that Petitioner renders services to foreign affiliates even without executing a written contract? A: Yes. There are approximately 1,800 entities embraced and operating under the Chevron Group of Companies worldwide. Given the enormity of Petitioner's organization, it would be impractical and operationally unfeasible to request each and every Chevron affiliate to execute a written contract with the Petitioner before providing the said services. To do so would be counterproductive and negates the very purpose for which our company was organized, which is to provide immediate, efficient, and effective line functions to Chevron companies around the globe. XXX XXX XXX Q37 You mentioned earlier that Petitioner is paid for the services rendered in the Philippines. Do all the Chevron affiliates pay the Petitioner consideration to perform the finance, human resources, information technology, and procurement functions, whether regular or ad hoc? A: Yes. The Petitioner generally charges all its Chevron affiliates the total cost of the services plus an agreed mark-up cost regardless of whether the services performed are regular or ad hoc, which services are paid for in U S. dollars and accounted for in ~

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 accordance with the rules and regulations of the Bangko Sentral ng Pilipinas. 10 Petitioner's SEC Certificate of Registration and License, and the unrebutted testimony of Mr. Santos, taken together convinces the Court that the services rendered by petitioner to Chevron Corporation fall within the scope of "services other than processing, manufacturing or repacking of goods". Accordingly, the Court reconsiders the previously disallowed zero-rated sales to Chevron Corporation amounting to P212, 744,285.44. 3. Petitioner proved its additional zero-rated sales Upon review of the admitted evidence, the Court finds that the following clients shall additionally be considered as NRFCs: SEC Proof of foreign incorporation/registration Certificate of Client Exhibit No. Document Non- Chevron (Cambodia) Registration "P-55.2" Articles of Incorporation of Limited Chevron (Cambodia) Limited Chevron (TianJin) "P-15.2" Lubricants Co., Ltd. "P-15.5" "P-554"; "P- Certificate of Approval for 555" Chevron Afnca and "P-55.13" Establishment of Enterprises with Latin America Exploration and "P-15.9" Foreign Investment in the Production Company (a Chevron U.S.A Inc. "P-55.13" People's Republic of China; ' diVISIOn)- FEABU HQ "P-15.16" Branch Business License of Chevron Chevron Asia Pacific Holdings Limited (Tianjin) Lubricants Co , Ltd. Chevron Energy "P-16.1"; "P- Amended and Restated Articles of Technology Company Chevron Global Energy, 16.2" Incorporation, By-Laws Inc. "P-55.6" Certificate of Continuance of Chevron Asia Pacific Holdings Limited with attached Memorandum of Continuance of Company Limited By Shares "P-161"; "P- Amended and Restated Articles of 16.2" Incorporation; By-Laws "P-55.14" Restated Certificate of Incorporation of Chevron Global Energy Inc. ------- 10 Exhibit "P-25", CTA Docket Vol. 1, pp. 433-463. ~

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 Chevron Information "P-55.13" ��- "P-16.1"; "P- Amended and Restated Articles of Technology Company Chevron International 16.2" Incorporation; By-Laws Pte. ltd. "P-15.19" "P-55.7" Certificate Confirming Chevron Iraq (Sarta) Incorporation of Company under Limited the New Name of Chevron International Pte. ltd Chevron Lubricants Lanka PLC "P-15.20" "P-55.8" Certificate ofIncorporation with- Chevron Products attached Memorandum of Company (a Chevron Association of Company Limited U.SA Inc. Division) by Shares Chevron Products UK Limited "P-15.21" "P-55.9" Articles of Association of Chevron "P-55.13" Lubricants Lanka PLC -_o- ... "P-16.1", "P- 16.2" -------- ----- Chevron Services Company Amended and Restated Articles of Chevron Trading Pte. ltd. Incorporation, By-Laws Chevron Upstream "P-15.27" "P-55.1" �-- Chevron Overseas "P-55.13" Certificate of Incorporation on Services Corporation "P-15.32" Change of Name of Chevron Products UK Limited with Chevron Power and "P-55.13" Attached Articles of Association Energy Management "P-15.39" and Memorandum of Association Company (a Chevron "P-55.13" U.SA Inc. division) "P-16.1"; "P- Amended and Restated Articles of -� 16.2" Incorporation; By-Laws "P-55.12" Business Profiled (Company) of Chevron Trading Pte. Ltd. Issued by Singapore Accounting and Corporate Regulatory Authority (ACRA) "P-16.1"; "P- Amended and Restated Articles of 16.2" Incorporation; By-Laws "P-55 10" ------- - Certificate of Amendment of Certificate of Incorporation of Chevron Overseas Services Corporation "P-16.1"; "P- Amended and Restated Art1cles of 16.2" Incorporation; By-Laws -� -- On the other hand, with respect to the following recipients of the services, petitioner failed to prove that they are NRFCs doing business outside the Philippines. As a result, the disallowed zero-rated sales should only amount to P224, 168,876.88, to wit: (}.iJ

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue -r CTA Case No. 9266 Exhibit -----~---o.R. zero-rated sale Ref No. O.R. No. D Payor in USD in PHP ate -----~ -- First Quarter of CY 2014 Chevron Australia Pty Ltd "P-39.3" 5138 1/24/14 -Other 261,699.32 11,852,324.28 "P-39.7" 5143 1/24/14 Chevron Malaysia Limited 142,119 06 6,436,551.63 "P- Refinana Panama S. de 39.12" 5149 1/27/14 RL. 1,489 95 67,479.62 --------- -+----1-----+~-----c=---~----+------i----------1 "P- Chevron (China) 39.13" 5151 1/30/14 Investment- Services 12,821 81 579,647.83 "P- Chevron Australia Pty Ltd , 39.19" 12,684,614.53 5158 2/25/14 -Other 284,642 75 "P- 5162 Chevron Hong Kong 126,81585 5,651,330.22 39.23" 2/25/14 Limited "P- 5164 2/25/14 Chevron U S.A Inc. - 13,854.21 617,389.04 3925" Chevron Global Downstream "P- 5166 2/25/14 Chevron Neftegaz Inc. 11,134.35 496,183.16 39.27" 2/26/14 3/25/14 Chevron Products UK . ---- ----- r---�-��� Limited- Tradmg and Marine Lubricants Branch 179,591.71 8,006,747.66 "P- CGEI-Giobal Dnstrm Cost -� --------- Allocation 39.28" 5167 110,292.97 4,983,866 70 l--.~.p~_--1----- ---�- 39.33" 5172 "P- Chevron Australia Pty Ltd 39.35" 5175 3/25/14 -Other 284,642.75 12,862,302.31 "P- 5185 3/25/14 Chevron Neftegaz Inc. 12,493 33 564,542.70 3944" 1-- 5186 3/26/14 Chevron Products UK 98,411 09 4,438,930 54 Limited- Trading and "P- Marine Lubncants Branch 3945" "P- 5188 Chevron (China) 22,539 99 1,015,77242 3947" 3/27/14 Investment- Services "P-47.3" N/A 3/31/14 Chevron Munaigas Inc. - N/A 544,518.17 Home Office --�- _____ ,. -�- �------- Chevron Denmark Inc. - "P-47.3" N/A 3/31/14 DenmarkBranch N/A 511,786.10 "P-47.3" N/A 3/31/14 Chevron Munaigas Inc. - N/A 559,617.65 ------ Home Office N/A . -- -- --- --- - -- 3/31/14 Chevron Denmark Inc. - 551,370.32 "P-47.3" N/A Denmark Branch "P-47.3" N/A Chevron Munaigas Inc - I 565,922-~9- 3/31/14 Home Office N/A (Ytl

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 �-� Chevron Denmark Inc - "P-47.3" N/A 3/31/14 Denmark Branch N/A 557,582.24 Subtotal-- First Quarter 73,548,479.61 Second Quarter of CY 2014 "P- 5193 4/25/14 Chevron Malaysia Limited 205,071.84 9,171,370.31 39.52" "P- Chevron Australia Pty Ltd 39.53" 5194 4/25/14 - Other 202,935.02 9,075,805.90 "P- 5195 Chevron Hong Kong 172,301 A 1 7,705,787.57 39.54" 4/25/14 Limited "P- Chevron Canada Limited- 39.60" 5201 4/25/14 Downstream 101,118.66 4,522,30143 "P- 5207 4/25/14 Chevron U.S.A Inc - 4,912.68 219,70841 39.66" Chevron Global Downstream "P- 5208 4/25/14 Chevron Neftegaz Inc. 8,963.59 I 39.67" ' 400,876.12 ' "P- 5223 4/30/14 Chevron AI Khalij 53,286.34 2,370,388.79 39.72" "P- 5224 4/30/14 Chevron Products UK 74,731.16 3,324,339.86 39.73" 5225 4/30/14 Limited- Trading and 5227 4/30/14 Marine Lubricants Branch - ~--=-- Chevron South Africa 156,689.39 6,970,168.59 39.74" (Pty) Limited ----------- "P- Chevron (China) 12,997.02 578,159.25 39.76" Investment- Services "P- 5228 4/25/14 CGEI-Giobal Dnstrm Cost 15,016.79 671,591.68 39 77" 5242 5/16/14 Allocation 35,151.69 �----- - -.. P- Chevron Pakistan Limited- 1,529,66446 39.92" Branch "P- 5243 5/20/14 Chevron Products UK 90,517.78 3,973,567.61 39.93" Limited -Trading and Marine Lubricants Branch "P- 5244 5/27/14 Chevron Neftegaz Inc. 11,316.75 496,784.95 39.94" 5246 5/29/14 Chevron (China) 11,848.65 ---� "P- �- --- Investment - Services 39.96" 520,143.19 5248 ---- "P- �- 39.98" 6/25/14 Chevron Neftegaz Inc. 11,316.75 495,47942 "P- Chevron (China) Investment- Services 39 99" 5249 6/25/14 11,85701 519,133.54 6/25/14 Chevron Hong Kong 155,183.79 �-�� -- "P- - - ~---------- Limited 6,794,386.60 39.1 05" 5255 "P- 5263 6/26/14 Companta Chevron de 25,852.31 1,133,376.16 39.112" Panama, S.A -- --�--�- . -� -- ~- -~--------

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 -� Chevron Munaigas Inc. - -- 404,123.10 "P-47.6" N/A 6/30/14 Home Office N/A 395,837 51 498,521.68 Chevron Denmark Inc. - 490,414.81 498,958.80 "P-47.6" N/A 6/30/14 Denmark Branch N/A 490,844.80 Chevron Munaigas Inc. - "P-47.6" N/A 6/30/14 Home Office N/A Chevron Denmark Inc. - "P-47.6" N/A 6/30/14 Denmark Branch N/A -- Chevron Munaigas Inc. - "P-47.6" N/A 6/30/14 Home Office N/A Chevron Denmark Inc. - "P-47.6" N/A 6/30/14 Denmark Branch N/A Subtotal�� Second Quarter 63,251,734.54 Third Quarter of CY 2014 "P- 5275 ..~ -~~---~�--- - ----��-�� -------- 8,134,582.72 39.121" 188,315.59 7/25/14 Chevron Malays1a Limited "P- 5283 7/25/14 Chevron Neftegaz Inc. 11,316.75 488,844.49 39.129" 5284 7/28/14 181,035.56 ----�-----�- Chevron Products UK "P- Limited - Trading and 7,847,228.44 39.130" Marine Lubricants Branch "P- 5286 Chevron (China) 11,848.57 I 39.132" 7/30/14 Investment- Services 513,592.11. Chevron Munaigas Inc. � "P-47.7" N/A 7/31/14 Home Office N/A 492,908.19 484,892.59 � - � -~- Chevron Denmark Inc. - "P-47.7" N/A 7/31/14 Denmark Branch N/A "P- 5294 Chevron Hong Kong 160,649.43 7,042,938.62 39.139" 8/26/14 Limited "P- 5300 8/26/14 Chevron Neftegaz Inc. 11,316.75 496,131 08 39.145" Chevron Munaigas Inc. - "P-47.8" N/A 8/31/14 Home Office N/A 498,958.80 "P-47 8" N/A 8/31/14 Chevron Denmark Inc. - N/A 490,844.80 9/26/14 Denmark Branch 13,961.95 ----;;p::- ... ------- .. .. Compania Chevron de 39.146" 5301 Panama, SA 620,531.12 "P- 5303 Chevron (China) 11,848.58 517,179.40 39.148" 5311 9/2/14 Investment- Services . �------ ... 9/25/14 Chevron Malaysia Limited 125,640.58 5,593,970.62 "P- 39.155" "P- 5315 9/25/14 Chevron Hong Kong 78,824.88 3,509,567.23 39.159" Limited . L.. ---� Cf[

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 "P- 5317 9/25/14 Chevron Neftegaz Inc. 11,316.75 503,862.42 39.161" 5318 2,909,402.22 CGEI-Giobal Dnstrm Cost "P- 5319 8,046,024.89 39.162" 5320 9/26/14 Allocation 588,264 50 -- -- 9/26/14 Chevron Products UK 181,035.56 5,604,825 33 "P- Limited -Trading and 39.163" Marine Lubricants Branch 1,512,362.22 530,137.36 "P- Chevron South Africa 126,108.57 506,734 19 39 164" 9/26/14 (Pty) Limited 498,493.77 "P- 5322 9/26/14 Chevron US.A Inc.- 34,028.15 39.166" 5328 Chevron Global Downstream "P- 39 172" Chevron (China) 11,848.57 9/29/14 Investment- Services Chevron Munaigas Inc. - "P-47.9" N/A 9/30/14 Home Office N/A Chevron Denmark Inc. - "P-47.9" N/A 9/30/14 Denmark Branch N/A Subtotal-- Third Quarter 56,844,012.61 Fourth Quarter of CY 2014 -- Chevron AI Khalij -- --- "P- 68,349 20 39.174" 5331 10/1/14 - 3,077,406.57 -- "P- 5343 10/24/14 Chevron Neftegaz Inc. 11,316.75 39.185" 5345 - 506,568.93 Chevron (China) ----� 10/30/14 Investment- Services 11,848.58 530,137.81 "P- 39.187" "P- Chevron Muna1gas Inc. - Home Office 47 10" N/A 10/31/14 N/A 509,912.64 .- Chevron Denmark Inc. - ---- �--,p_--- - �- Denmark Branch - - -- 10/31/14 N/A 47.10" N/A 501,620.52 "P- 5354 Chevron Hong Kong 160,587 00 7,210,911.54 39.195" 11/25/14 Limited "P- 5355 11/25/14 Chevron Malays1a Limited 12s.s8o.61 1 5,639,003.59 39.196" "P- 5358 11/25/14 Chevron Neftegaz Inc. 11,316.75 508,161.20 39.199" "P- 5362 11/26/14 Chevron Products UK 281,438.45 12,648,919.10 39.203" Limited - Trading and Marine Lubricants Branch "P- 5365 11/28/14 Chevron Pakistan Limited- 8,693.77 390,555 71 39 206" N/A 11/30/14 Branch N/A 511 ,287 06 ------;;p: -- �- Chevron Munaigas Inc. - 47 .11" Home Office "P- Chevron Denmark Inc - 47.11" N/A 11/30/14 Denmark Branch N/A 502,972.60 - - � - _ _L _ _ _______ ------ -- �- --- ---- rfl

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 "P- 5381 - 11,83331 528,981.22 39.211" Chevron (China) (1 ,671 ,886.80) 12/29/14 Investment- Services ---~---- "P- Chevron Muna1gas Inc. - 12/31/14 Home Office (869, 901. 57) 47.12" N/A N/A Chevron Denmark Inc. - 1-- - - - - - - 12/31/14 Denmark Branch --- "P- N/A 47.12" N/A Subtotal-- Fourth Quarter - ------- 30,524,650.12 --- -- -- -- Total 224,168,876.88 Of the zero-rated sales to the NRFCs, the total amount of P60,930,491.177 shall be disallowed for petitioner's failure to prove the payment for such sales are in an acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas, i.e., the payments are not supported by proof of inward remittance, as shown below: Exhibit Zero-rated Sale Ref No. O.R. No. O.R. Date Payor ~--- - ��- in USD in PHP First Quarter of CY 2014 ----�-- --- Chevron --- ----- Products "P-39.34" 5173 3/25/14 Company (a 270,372.04 12,217,444.19 Chevron U.SA Inc. Division) Subtotal -- First Quarter 12,217,444.19 Second Quarter of CY 2014 25,370,968.69 "P-39.50" 5190 4/25/14 Chevron 567,294.86 106,392.22 Products Company (a Chevron U.SA Inc. Division) "P-39.78" 5229 4/25/14 Chevron 2,378.93 Asia Pacific Holdings Branch Subtotal-- Second Quarter 25,477,360.91 Third Quarter of CY 2014 - (f/

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 "P-47.9" N/A 9/30/14 Chevron ------�-- Products Company (a N/A 23,235,686.67 Chevron U.SA Inc. Division) - Subtotal-- Third Quarter 23,235,686.67 Total ,. 60,930,491.77 L_ _____ .. ---- Moreover, for petitioner's failure to comply with the invoicing requirements under Section 113 of the NIRC of 1997, as amended, and Section 4.113-1 of Revenue Regulations (RR) No. 16-2005, the following disallowed zero-rated sales are sustained for petitioner's failure to submit valid VAT official receipts (ORs) for sales rendered to the abovementioned NRFC clients: Zero-rated Sale Exhibit O.R. No. O.R. Date Payor in Ref No. USD 3/31/14 -------- in PHP 3/31/14 First Quarter of CY 2014 Chevron Global --� --- Energy Inc. "P-47.3" N/A Chevron Global N/A I" - Energy Inc. 1,820,324.25 . "P-47.3" N/A N/A 941,874.78 Chevron Global "P-47.3" N/A 3/31/14 Energy Inc. N/A 953,705.27 ----� --- Subtotal-- First Quarter --�- 3,715,904.30 6/30/14 ----------------- -- -� 6/30/14 6/30/14 Chevron Second Quarter of CY 2014 6/30/14 Lubricants Lanka PLC -- Chevron Global "P-47.6" N/A Energy Inc N/A 239,242.00 - ------- ---- ------ "P-47.6" N/A N/A 1,091,037.60 ----� Chevron Global "P-47.6" N/A ___E_n,_er_g_y Inc. N/A 973,720.11 975,244.19 Chevron Global "P-47.6" N/A Energy Inc. N/A Subtotal-- Second Quarter 3,279,243.90 Third Quarter of CY 2014 "P-47.7" N/A 1,: H"'""" 31/14Information N/A 150,322,123.54 Technology Company C11

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 Chevron Global - .- "P-47.7" N/A 7/31/14 Energy Inc. N/A 962,732.78 974,551.07 Chevron Global 4,722,142.92 "P-47.8" N/A 8/31/14 Energy Inc. N/A -�-�------ ~"-- 989,737.31 157,971,287.62 Chevron U.S.A. 995,945.34 Inc. (Singapore 5,906,885.30 "P-47.9" N/A 9/30/14 Branch) N/A 32,989.70 .- Chevron Global �-- "P-47.9" N/A 9/30/14 Energy Inc. N/A 997,339.62 ' Subtotal-- Third Quarter ' Fourth Quarter of CY 2014 987,134.32 Chevron Global (666,477.85) "P-47.10" N/A 10/31/14 Energy Inc. N/A (1 ,611 ,06040) Chevron Africa ~ and Latin America Exploration and Production Company (a Chevron U.SA Inc. division)- FEABU HQ "P-47.10" N/A 10/31/14 Branch N/A Chevron Power and Energy Management Company (a Chevron U.S.A "P-47.10" N/A 10/31/14 Inc. division) N/A "P-4711" . ------ Chevron Global N/A 11/30/14 Energy Inc. N/A Chevron Afnca and Latin America Exploration and Production Company (a Chevron U S.A Inc. division)- FEABU HQ "P-47 11" N/A 11/30/14 Branch N/A Chevron Global "P-47.12" N/A 12/31/14 Energy Inc. N/A Chevron Africa and Latin America Exploration and Production Company (a "P-47 12" N/A 12/31/14 Chevron U.S.A N/A Inc division)-

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 FEABU HQ - �- Branch �-�� - 6,642,756.03 Subtotal -- Fourth Quarter ,. 171,609,191.85 Total In summary, upon review and revalidation of the total amount of valid VAT zero-rated sales of petitioner, out of the P3,473,747,474.52 zero-rated sales declared per VAT returns for CY 2014, only the amount of P3,017,038,914.02 qualifies for VAT zero-rating, as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total 1'862.939.005 71 --~ Zero-rated sales 1"909.392.301.24 1"998.331.794.66 F'703.084.372 91 F'3.473.747.474 52 declared per VAT returns Less� Disallowances Sales to those 73.548.479 61 63.251.734 54 56.844.012 61 30.524.650 12 224.168.876 88 not considered as NRFCs No proof of 12.217.444.19 25.477.360.91 23.235.686 67 - 60,930.491.77 Inward 3,715.904 30 -� remittance - 6,642.756 03 171.609.19185 157,971,287.62 Without VAT 3.279,243.90 Official Receipts Valid zero- P773,457 ,177.61 1"817,383,961.89 P760,280,807.76 P665,916,966.76 P3,017,038,914.02 rated sales Petitioner incurred/paid input taxes attributable to zero-rated sales and said input taxes were not applied against any output VAT liability For the input VAT on domestic purchases disallowed by the Court due to unreadable information on the VAT ORs, petitioner claims that these exhibits with total input VAT of P3,953,719.98 were documents marked, scanned and submitted to the Court by the ICPA. In the interest of justice, petitioner requested leave of court to substitute the copy of the following Exhibits: 11 11 Omnibus Motion, pp. 23-25; granted in Resolution dated May 31, 2021. unpaginated. Docket Vol VII ~

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 �--- Amount Disallowed by Exhibit Description Court P-31 .458 Official Receipt No. 135063 issued by 1" 35,288.40 I Hewlett-Packard Phils. Corporation on January 3, 2014 Official Receipt No. 135920 issued by I Hewlett-Packard Phils. Corporation on 36,655.78 P-31.666 February 10, 2014 141 ,234.60 ! P-31.1 037 -��-- --- Official Receipt No. 136705 issued by Hewlett-Packard Phils. Corporation on March 19, 2014 Official Receipt No. 44412 issued by RCBC 579,398.67 P-31.2428 Realty Corporation on August 6, 2014 Official Receipt No. 44422 issued by RCBC 40,364.42 P-31.2448 Realty Corporation on August 6, 2014 Official Receipt No. 44424 issued by RCBC 2,378,208.60 P-31.2452 Realty Corporation on August 6, 2014 Official Receipt No. 005 issued by CSC 84,668.66 Information Technology (Philippines), Inc. on P-31.2584 August 9, 2014 Official Receipt No. 001 issued by CSC 50,693.32 Information Technology (Philippines), Inc. on P-31.2590 August 9, 2014 Official Receipt No. 013 issued by CSC 111 ,005.28 Information Technology (Philippines), Inc. on P-31.2602 August 9, 2014 Official Receipt No. 012 issued by CSC 16,827.87 Information Technology (Philippines), Inc. on P-31.2604 August 9, 2014 Official Receipt No. 45063 issued by RCBC 129,873.50 P-31.2762 Realty Corporation on September 9, 2014 ---- -�-�-� ----- 253,454.93 Official Receipt No. 45062 issued by RCBC P-31.2766 Realty Corporation on September 9, 2014 Sales Invoice No. 010172983 issued by Integrated Computer Systems, Inc. on P-32.7 January 21, 2014 2,524.29 -� ���-- ---.--- ����- - -- Sales Invoice No. 010172984 issued by 945.54 Integrated Computer Systems, Inc. on P-32.9 January 21, 2014 Cf1

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 P-32.19 ... I Sales invoice No. 210079039 issued by 16,971.44 Integrated Computer Systems, Inc. on February 11, 2014 P-32.25 Sales invoice No. 310174836 issued by 2,528.57 Integrated Computer Systems, Inc. on February 20, 2014 P-32.27 Sales invoice No. 310174958 issued by 6,985.71 Integrated Computer Systems, Inc. on February 24, 2014 P-32.49 Sales Invoice No. 310176217 issued by 9,055.18 Integrated Computer Systems, Inc. on March 14, 2014 P-32.53 Sales Invoice No. 310173843 issued by 1,470.00 Integrated Computer Systems, Inc. on February 15, 2014 P-32.59 Sales Invoice No. 310176218 issued by 120.54 Integrated Computer Systems, Inc. on March 14,2014 Sales Invoice No. 310176219 issued by 466.08 Integrated Computer Systems, Inc. on March P-32.61 14, 2014 . . 29,700.00 Sales Invoice No. 210074359 issued by Integrated Computer Systems, Inc. on March P-32.63 24, 2014 P-32.67 Sales Invoice No. 310177136 issued by 1,928.57 Integrated Computer Systems, Inc. on March 31, 2014 P-32.69 Sales Invoice No. 310177137 issued by 1,406.25 Integrated Computer Systems, Inc. on March -��� 31,2014 - ---- P-32.204 Sales Invoice no. 171073 issued by Jjed 15,938.64 Phils. Inc. on July 28, 2014 Sales Invoice No. 310185305 issued by Integrated Computer Systems, Inc. on August P-32.230 27, 2014 3,857.14 P-32.252 1,452.00 -- ---- - Sales Invoice No. 60559 issued by Personal Computer Specialists, Inc. on October 17, 2014. P-32.254 Sales Invoice No. 60599 issued by Personal 696.00 Computer Specialists, Inc. on November 11, 2014 Total p 3,953,719.98 c,t

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 Upon evaluation of these documents, as substituted, the same were found to be legible and compliant with the invoicing requirements provided under the law and regulations. Thus, the input VAT amounting to ~3,953,719.98 shall be allowed. Anent the disallowance by the Court of input VAT on domestic purchases of services due to alterations on payor details or amounts made without authorized countersignature, petitioner prays that the Court take a closer look at the following exhibits as it can be gleaned that the countersignatures affixed to the erasures are similar to the signature affixed on top of the authorized signatory's portion of the official receipts. Moreover, petitioner claims that the erasures in most of these documents are not material, as follows: 12 Exhibit Description Amount Disallowed by Court Official Receipt No. 65856 issued by Facilities P-31.1749 Managers, Inc. on June 13,2014 I" 82,013.18 Official Receipt No. 139875 issued by 238,376.31 Hewlett-Packard Phils. Corporation issued on P-31.2416 August 5, 2014 Official Receipt No. 139893 issued by 57,985.80 Hewlett-Packard Phils. Corporation issued on P-31.2570 August 22, 2014 Official Receipt No. 0534 issued by JLGT 235,017.24 P-31.2992 Marketing on October 20, 2014 P-31.3016 Official Receipt No. 0536 issued by JLGT 57,002.14 Marketing on October 20, 2014 --�- . . P-31.3076 99,879.90 Official Receipt No. 221869 issued by Makati Shangri-la on october 24, 2014 .. Official Receipt issued by Trends & 477,600.52 P-31.3078 Technologies, Inc. on October 24, 2014 Official Receipt No. 141505 issued by 333,674.20 Hewlett-Packard Phils. Corporation on P-31.3108 November 20, 2014 Official Receipt No. 67554 issued by Facilities 82,680.34 P-31.3126 Managers, Inc. on October 22, 2014 Official Receipt No. 67602 issued by Facilities P-31.3159 Managers, Inc. on October 31, 2014 148,215.57 . . 1 �--- 1 Omnibus Motion. pp 25-27 ~ '

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 . .. Official Receipt No. 67601 issued by Facilities P-31.3175 Managers, Inc. on October 31,2014 139,743.82 P-31.3211 Official Receipt No. 141897 issued by 238,376.31 P-31.3245 Facilities Managers, Inc. on November 3, 2014 - ---- 83,978.40 Official Receipt No. 44920 issued by Lane Archive Technologies Corporation on November 10, 2014 Official Receipt No. 67680 issued by Facilities 93,868.98 P-31.3316 Managers, Inc. on November 28, 2014 Official Receipt No. 67682 issued by Facilities 71,034.70 P-31.3330 Managers, Inc. on November 28, 2014 Official Receipt No. 29608 issued by Trends 1,111,216.80 P-31.3334 & Technologies, Inc. on November 28, 2014 P-31.3342 Official Receipt No. 0541 issued by JLGT 59,066.22 Marketing on November 28, 2014 128,283.60 r---- Official Receipt No. 143277 issued by P-31.3354 Hewlett-Packard Phils. Corporation on November 20, 2014 P-31.3332 Official Receipt dated November 28, 2014 129,085.02 issued by Ultra Modular Concept ~- Official Receipt No. 84836 issued by Ascott P-31.3471 Makati, Inc. on December 2, 2014 Invoice No. 103344 issued by Ascott Makati, 24,480.00 P-31.3472 Inc. received on September 30, 2014 P-31.3627 Official Receipt No. 0546 issued by JLGT 155,761.87 Marketing on December 22, 2014 .. .. .. P-31.3631 98,372.70 Official Receipt No. 142943 issued by --� Hewlett-Packard Phils. Corporation on . --- December 29, 2014 P-31.3647 60,757.37 Official Receipt No. 7554 issued by Delta Rent-A-Car Corp. on December 22, 2014 Official Receipt No. 142945 issued by Hewlett-Packard Phils. Corporation on P-31.3661 December 29, 2014 62,089.80 r-�--�- .. �-------- . . P-31.3665 Official Receipt No. 142941 issued by Hewlett-Packard Phils. Corporation on December 29, 2014 62,089.80 Official Receipt No. 87488 issued by Ascott P-31.3683 Makati, Inc. on December 23, 2014 202,278.58 - .. ________L_ _.. ------ C11

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 -,---- - .- - Official Receipt No. 45387 issued by Lane 38,823.93 Archive Technologies Corporation on 120,869.76 P-31.3696 December 29, 2014 43,110.19 Official Receipt No. 45386 issued by Lane Archive Technologies Corporation on 34,938.00 P-31.3706 December 29, 2014 47,736.00 75,182.10 Official Receipt No. 142942 issued by 48,960.00 24,480.00 Hewlett-Packard Phils. Corporation on 44,701.49 101,607.94 P-31.3720 December 29, 2014 12,795.41 -�--- ~--- --�-�- p 5,126,133.99 Official Receipt No. 093518 issued by Angara Abello Concepcion Regala & Cruz on P-31.3730 December 29, 2014 Official Receipt No. 63545 issued by Ascott P-31.652 Makati, Inc. on February 7, 2014 --- - - Official Receipt No. 68011 issued by Ascott P-31.872 Makati, Inc. on March 7, 2014 Official Receipt No. 65633 issued by Ascott P-31.910 Makati, Inc. on February 27, 2014 P-31.1204 Official Receipt No. 70709 issued by Ascott Makati, Inc. on April15, 2014 --� - -- P-31.1597 Official Receipt No. 9646 issued by Delta Rent-A-Car Corp on May 30, 2014 Official Receipt No. 0543 issued by JLGT P-31.3370 Marketing on November 28, 2014 Official Receipt No. 3168 issued by Benchmark Par Excellence Tours and P-31.3384 Transport Inc. November 18, 2014 Total The counter-signature on the alteration or insertion of any figures appearing on the face of a VAT official receipt/invoice should be similar to or identical with the signature of the payee's authorized representative. If the counter-signature is not similar or identical, it could not be ascertained whether the person who counter-signed the alterations or who made the additions was authorized. While petitioner had the right to request its supplier to issue a compliant VAT official receipt/invoice, it had the corresponding obligation to check whether the insertions or alterations were properly validated or countersigned by the authorized signatory. 13 13 Cora/ Bay Nickel Corporation vs. Commissioner of Internal Revenue, CTA EB No. 1269 (CTA Case No. 7895); CommJssioneroflnternal Revenue vs. Coral Bay Nickel Corporation, CTA EB No 1970 (CTA Case No. 7895), June 29, 2016. ~

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 Upon re-evaluation of the foregoing exhibits, the Court maintains that said exhibits, except for the following ORs in the total amount of P873,842.53, show alterations which were made without authorized countersignatures: Exhibit Description Allowed Official Receipt No. 139875 issued by p 238,376.31 Hewlett-Packard Phils. Corporation issued P-31.2416 on August 5, 2014 Official Receipt No. 139893 issued by Hewlett-Packard Phils. Corporation issued P-31.2570 on August 22, 2014 57,985.80 P-31.3076 ___ --- -~-�--��-- ------------ , ____ Official Receipt No. 221869 issued by Makati Shangri-la on October 24, 2014 99,879.90 Official Receipt issued by Trends & 477,600.52 P-31.3078 Technologies, Inc. on October 24, 2014 p 873,842.53 Total Thus, the Court reiterates that the following VAT ORs shall be disallowed for the following specific reasons: Exhibit Description Input VAT Reason for Sustained Disallowance Official Receipt No. 65856 issued Not authorized countersignature by Facilities Managers, Inc. on for change in VAT amount P-31.1749 June 13, 2014 p 82,013.18 235,017.24 - P-31.2992 Official Receipt No. 0534 issued by JLGT Marketing on October 20, Not authorized 2014 countersignature for erasure of - -�- VAT Exempt Sales amount Official Receipt No. 0536 issued by 57,002.14 Not authorized JLGT Marketing on October 20, countersignature P-31.3016 2014 for erasure of VAT Exempt Sales amount P-31.3108 Official Receipt No. 141505 issued 333,674.20 Not authorized by Hewlett-Packard Phils. countersignature Corporation on November 20, for erasure of 2014 VAT Exempt Sales amount I ~

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 Official Receipt No. 67554 issued 82,680.34 Not authorized by Facilities Managers, Inc. on countersignature P-31.3126 October 22, 2014 for erasure of VAT Exempt Sales amount Official Receipt No. 67602 issued 148,215.57 Not authorized by Facilities Managers, Inc. on countersignature P-31.3159 October 31, 2014 for erasure of VAT Exempt Sales amount Official Receipt No. 67601 issued 139,743.82 Not authorized by Facilities Managers, Inc. on countersignature P-31.3175 October 31, 2014 for erasure of VAT Exempt Sales amount P-31.3211 Official Receipt No. 141897 issued 238,376.31 Not authorized by Facilities Managers, Inc. on countersignature November 3, 2014 for erasure of VAT Exempt Sales amount P-31.3245 Official Receipt No. 44920 issued 83,978.40 Not authorized by Lane Archive Technologies countersignature --� Corporation on November 10, -- for change in 2014 VATable sale 93,868.98 ��- Not authorized countersignature Official Receipt No. 67680 issued for erasure of by Facilities Managers, Inc. on VAT Exempt P-31.3316 November 28, 2014 Sales amount Official Receipt No. 67682 issued 71,034.70 Not authorized by Facilities Managers, Inc. on countersignature P-31.3330 November 28, 2014 for erasure of VAT Exempt Sales amount Official Receipt No. 29608 issued 1,111,216.80 Not authorized by Trends & Technologies, Inc. on countersignature P-31.3334 November 28, 2014 for change in VATable sale and VAT amount Official Receipt No. 0541 issued by 59,066.22 Not authorized JLGT Marketing on November 28, countersignature P-31.3342 2014 for erasure of VAT Exempt Sales amount I P-31.3354 Official Receipt No. 143277 issued 128,283.60 Not authorized by Hewlett-Packard Phils. countersignature Corporation on November 20, for erasure of 2014 01

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 Official Receipt dated November VAT Exempt 28, 2014 issued by Ultra Modular Sales amount P-31.3332 Concept Exhibit not 129,085.02 submitted P-31.3471 Official Receipt No. 84836 issued No authorized by Ascott Makati, Inc. on countersignature December 2, 2014 for strikethrough of VAT Exempt Invoice No. 103344 issued by 24,480.00 sale Ascott Makati, Inc. received on P-31.3472 September 30, 2014 Official Receipt No. 0546 issued by 155,761.87 Not authorized JLGT Marketing on December 22, countersignature P-31.3627 2014 for erasure of VAT Exempt Sales amount P-31.3631 Official Receipt No. 142943 issued 98,372.70 Not authorized f--- by Hewlett-Packard Phils. countersignature Corporation on December 29, for erasure of 2014 VAT Exempt Sales amount P-31.3647 Official Receipt No. 7554 issued by No authorized ._ ___ Delta Rent-A-Car Corp. on countersignature December 22, 2014 for erasure of VAT Exempt -��- 60,757.37 Sales amount P-31.3661 Official Receipt No. 142945 issued ��- --� by Hewlett-Packard Phils. Corporation on December 29, Not authorized 2014 countersignature for erasure of VAT Exempt 62,089.80 Sales amount P-31.3665 Official Receipt No. 142941 issued 62,089.80 Not authorized by Hewlett-Packard Phils. countersignature Corporation on December 29, for erasure of 2014 VAT Exempt Sales amount Official Receipt No. 87488 issued 202,278.58 Not authorized by Ascott Makati, Inc. on countersignature P-31.3683 December 23, 2014 for change of VAT Exempt Sales amount P-31.3696 Official Receipt No. 45387 issued 38,823.93 Not authorized P-31.3706 by Lane Archive Technologies countersignature Corporation on December 29, for erasure of 2014 VAT Exempt Sales amount ---- --- -- �- ------- -- ----- Official Receipt No. 45386 issued 120,869.76 Not authorized by Lane Archive Technologies countersignature ~

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 - ---~-�- -- '. Corporation on December 29, for change of VATable sale 2014 P-31.3720 Official Receipt No. 142942 issued 43,110.19 Not authorized by Hewlett-Packard Phils. countersignature Corporation on December 29, for erasure of 2014 VAT Exempt Sales amount P-31.3730 Official Receipt No. 093518 issued 34,938.00 Not authorized by Angara Abello Concepcion countersignature Regala & Cruz on December 29, for strikethrough 2014 of VAT Exempt Sales amount P-31.652 Official Receipt No. 63545 issued Exhibit not by Ascott Makati, Inc. on February 47,736.00 submitted 7, 2014 P-31.872 Official Receipt No. 68011 issued Exhibit not by Ascott Makati, Inc. on March 7, 75,182.10 submitted 2014 P-31.910 Official Receipt No. 65633 issued Exhibit not by Ascott Makati, Inc. on February 48,960.00 submitted 27, 2014 Official Receipt No. 70709 issued Exhibit not by Ascott Makati, Inc. on April 15, 24,480.00 submitted P-31.1204 2014 Official Receipt No. 9646 issued by Exhibit not Delta Rent-A-Car Corp on May 30, 44,701.49 submitted P-31.1597 2014 Official Receipt No. 0543 issued by 101,607.94 Not authorized JLGT Marketing on November 28, countersignature P-31.3370 2014 for erasure of VAT Exempt Sales amount P-31.3384 Official Receipt No. 3168 issued by 12,795.41 Not authorized Benchmark Par Excellence Tours countersignature and Transport Inc. November 18, for strikethrough 2014 of VAT Exempt Sales amount - - r---�~�--- ---------~---- Total p 4,252,291.46 Petitioner failed to substantiate its alleged input VAT carried over from previous periods As regards the disallowance of input VAT carry-over, petitioner submits that the existence of its reported input VAT carry-over from the &I

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 previous quarters are shown by petitioner's Amended Quarterly VAT returns for the four quarters of TY 2014 which were formally offered in evidence. 14 Hence, petitioner contends that it was erroneous for the Court to conclude that the documents submitted by petitioner are insufficient to prove the existence of its reported input VAT carry-over from the previous quarter. Moreover, petitioner maintains that submission of VAT invoices/receipts to prove the existence of reported input VAT carry-over from the previous year is not among the requirements to prove entitlement to a claim for refund. 15 The Court does not agree. It bears stressing that a claimant has the burden of proof to establish the factual basis of his or her claim for tax credit or refund. 16 Tax refunds are in the nature of tax exemptions. As such, they are regarded as in derogation of sovereign authority and to be construed strictissimi juris against the person or entity claiming the refund. 17 The pieces of evidence presented entitling a taxpayer to an exemption are also strictissimi scrutinized and must be duly proven. 18 Sections 11 O(A)(1) and (B) of the NIRC of 1997, as amended, requires that any input VAT shall be creditable against the output VAT only if the same is evidenced by a VAT official receipt/invoice issued in accordance with Section 113 of the NIRC of 1997, as amended. In the computation of the output VAT liability for the period, prior year's excess input VAT credits may be utilized to cover for such liability. However, the law mandates strict compliance with the invoicing requirements as it is the only way to determine the veracity of petitioner's refund claim. 19 The importance of submitting VAT official receipts/invoices as supporting documents in a claim for refund is emphasized by the Supreme Court in At/as Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue, 20 thus: "x x x First, a judicial claim for refund or tax credit in the CTA is by no means an original action but rather an appeal by way 14 Omnibus Motion. p 27. 15 Omnibus Motion, p. 29. 16 Citibank N.A. vs. Court of Appeals and Commissioner of Internal Revenue. G.R No. 107434, October 10, 1997 17 Commissioner of internal Revenue vs. S.C Johnson and Son, Inc, G.R. No. 127105, June 25, 1999 18 Kepco Ph1iippmes Corp. vs. Commissioner of Internal Revenue, G.R. No. 179961, January 31, 2011 (11 19 /d. 20 G.R No 145526, March 16, 2007

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 of petition for review of a previous, unsuccessful administrative claim. Therefore, as in every appeal or petition for review, a petitioner has to convince the appellate court that the quasi-judicial agency a quo did not have any reason to deny its claims. In this case, it was necessary for petitioner to show the CTA not only that it was entitled under substantive law to the grant of its claims but also that it satisfied all the documentary and evidentiary requirements for an administrative claim for refund or tax credit. Second, cases filed in the CTA are litigated de novo. Thus, a petitioner should prove every minute aspect of its cases by presenting, formally offering and submitting its evidence to the CTA. Since it is crucial for a petitioner in a judicial claim for refund or tax credit to show that its administrative claim should have been granted in the first place, part of the evidence to be submitted to the CTA must necessarily include whatever is required for the successful prosecution of an administrative claim." (Emphasis supplied) Contrary to petitioner's assertion, the aspects that must be substantiated by petitioner include its input tax carry-over from the previous taxable period especially since its current output tax liability is offset against the said carried-over input tax. In this case, petitioner merely relied on its VAT returns to show the amount of its input VAT carry-over, and not with the VAT official receipts/invoices as required by Sections 11 O(A)(1) and (B) of the NIRC of 1997, as amended 21 Thus, upon re-evaluation by the Court, the total additional input VAT of petitioner stands at P4,827,562.51, as follows: Particular Amount Previously disallowed ORs due to unreadable !" 3,953,719.98 supporting documents Previously disallowed ORs due to alterations 873,842.53 without authorized countersignature Total Additional Valid Input VAT !" 4,827,562.51 Combining the total additional valid input VAT amount to the total allowable input VAT as determined in the assailed Decision, the total adjusted allowable input VAT now stands at P74,020,907.31, computed below: 21 Commissioner of internal Revenue vs. Chevron Holdings, Inc, CTA EB No. 1950 & 1951, June ff1 3, 2020; and Chevron Holdings, Inc. vs. Commissioner of Internal Revenue, CTA EB No. 1895 & 1896, March 9, 2020.

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 Total Allowable Input VAT per Decision f" 69,193,344.80 Add: Allowed Input VAT upon reevaluation 4,827,562.51 Total Adjusted Allowable Input VAT f" 74,020,907.31 The total adjusted allowable input VAT shall then be allocated to petitioner's VATable and VAT-zero rated sales in accordance with Section 112(A) of the NIRC of 1997, as amended, as follows: Total Taxable Sales per VAT Return f" 139,122,645.90 Divided by the Reported Total Sales per 3,612,870,12042 Quarterly VAT Returns """"-- Multiplied by the Total Allowable Input VAT 74,020,907.31 Valid Input VAT Allocated to Total Taxable Sales Subject to 12% VAT p 2,850,361.11 ~ - ---- -~ Total Zero-rated Sales per VAT Return f" 3,743,747,474.52 -�� -� -----~---- Divided by the Reported Total Sales per 3,612,870,12042 Quarterly VAT Returns Multiplied by the Total Allowable Input 74,020,907.31 VAT Valid Input VAT Allocated to Total Zero- rated Sales p 71,170,546.20 ----- -- Since petitioner's valid input VAT in the amount ofP2,850,361.11 allocated to sales subject to 12% VAT is insufficient to cover the P16,694,717.51 output VAT liability reported in its Quarterly VAT Returns, the output VAT still due against petitioner is P13,844,356.40, computed as follows: Output VAT f" 16,694,717.51 Valid Input VAT Allocated to Taxable Sales 2,850,361.11 Subject to 12% VAT p 13,844,356.40 Output VAT Still Due The valid input VAT attributable to zero-rated sales in the amount of P71, 170,546.20 shall then be utilized to offset the balance of the output tax due in the amount of P13,844,356.40. Thus, there is excess valid input VAT attributable to total reported zero-rated sales o~

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 P57,326, 189.80. This amount shall be further allocated based on the valid zero-rated sales of P3,017,038,914.02, out of the total reported or declared zero-rated sales of P3,473,747,474.52, computed below: Valid Input VAT Allocated to Reported Zero- rated Sales p 71.170,546.20 I 13,844,356.40 . Ou_tput VAT Still Due � � - - ... Excess Valid Input VAT Allocated to 57.326.1~980 I Reported Zero-rated Sales Divided by Total Reported Zero-rated Sales 3,473,747,474.52 Multiplied by Total Valid Zero-rated Sales 3,017,038,914.02 Valid Input VAT Attributable to Valid p 49,789,268.42 Zero-rated Sales In summary, petitioner has sufficiently proven that it is entitled to a total VAT refund of P49,789,268.42 or an additional amount of P43,345,278.54, as shown below: 'Amount of refund granted in the assailed p 6,443,989.88 Decision 43,345,278.54 Additional refundable amount per this Amended Decision p 49,789,268.42 Total Valid Input VAT attributable to valid - - - - - ... zero-rated sales - � - - - - .. In view of the foregoing, as petitioner was able to discharge its burden for its entitlement to a refund in the total amount of P49,789,268.42, representing its excess and unutilized input VAT attributable to zero-rated sales for the first to fourth quarters of CY 2014, the Court finds no reason not to grant the same to petitioner. WHEREFORE, premises considered, the exhibits offered 1n petitioner's Supplemental Formal Offer of Evidence filed on November 4, 2021 are ADMITTED. Petitioner's Motion for Reconsideration (Re: Decision dated October 7, 2020) filed on October 28, 2020 is PARTIALLY GRANTED. Accordingly, the Decision of this Court dated October 7, 2020 is MODIFIED. Respondent Commissioner of Internal Revenue is hereby ORDERED TO REFUND OR ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner Chevron Holdings, Inc. in the amooot of P49,789,268.42, cepce,eotlog the lattec'' exoe" ao~

Amended Decision Chevron Holdings, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9266 unutilized input VAT attributable to zero-rated sales for the four quarters of calendar year 2014. SO ORDERED. Presiding Justice WE CONCUR: (NO PART) MARIAN IVY F. REYES-FAJARDO C~ .1:.- Associate Justice CATHERINE T. MA AHAN Associate Justice CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, it is hereby certified that the conclusions in the above amended decision were reached in consultation before the case was assigned to the writer of the opinion of the Court. ROMAN G. DEL ROSARIO Presiding Justice