CTA Case No. 4657 (Decision)

�.. �-~� ,' REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS UUEZON CITV ANSCOR UABEDOHN SECUfU TIES.. INC., P e t i t ionet~" -� - s - ver~s�J C.l".A. CASE NOS. 4657 and 4785 COMMISSIONER OF INTERNAL REVENUE .. Pr�omu l gated : Respondent. JAN 30 1996 .. � K- - - - - - - - - - - - - - - - - - - - - - - - - - - K DECISION This refers to the consolidated claims f ot' t��e Fund of Anscor Hagedorn Securities, lnc. in the amounts of pI.' ;:::'3'3, J; 13. 93 (for CTA Case No. 4657> ~nd P752', lt 19. 49 � (for CTA Case No. 47851 as erroneously paid value added taMes for the years 1989 and 19901 respectively. ~ .. 0~ alleged in tts petitions for review, are as narrated hereinafter. Common to both cao:;es ar�e the allegations: (L) that rJet i. t; 1 oner� is l ucensed t:woket'/dealer� of secut'ities n~ndet��ing sey�v ices to resident and non-resident investors; pPf; 1t t�J'le-t� "'buys" shc"lt�es of o:;tocks in favor of its non- clt.ents, the latt;el" i nwal''d l y for�e tgn 167

'�"-r , I DECISION - C.T.A. Case Nos. 4657 and 4785 - z- c ,_,,-,��enc y as payment the plwchased securities, t ogethet~ with commission; and when pet i t i one,~ " s e 1 1 s " s h a,~ e s of stocks in favor of its non- client. s, petitioner remits the in equivalent foreign currency, net of its commissions; and (3) that. said services of petitioner being paid for in acceptable "inwardly" remitted to the Philippines and accounted for in accordance with Bank ,~u] es and regulations, the sa�e VAT In both cases, t.oo, petitioner regularly filed its years 1989 and 1990 and services. RllPgedly., includPd in ~.aid sales. .incomE' v:hich should bE' subjPct of VAT and not to which ~t had rFgularly paid. F ot�� the prepared hereundpr a in tabulated of the details of th!? VAT t�etr.wns fi)E'd by petitione�~ fm~ the> years involve>d :!n the 168

DECISION - C.T.A. Case Nos. 4657 and 4785 -3 Details of VRT Returns filed for 1989 <CTA Case No. 4657> 6rt5o5o Sitln l('l C.��i 5-si on Jocotr �PHr!Jrd ltiltr of of Srnkr5o Wl1 J'lilid JocJudrd in Erronnu~Jy Fihng ... llrcJarrd Gress Sit) r5o � J'aid JA1 Wll rrtvm �� Jim9ary t.o Jl ~, J~, 961.03 Jl 313,130.93 Jll' 987' 358.00 Jl J80,UB. '9�. IJpri) co, 1983 tfarth, 1989 IJpriJ ... 7, 7~7,055.78 U..."f.019.~0 J, 9Z8,0&7.A 115,278.30 July 1'9, 1989 Jmr, 1989 July h J3,37L,390.55 I, J77,3U..71 5,428,~.(,5 493,4�.3.13 lkt. 20, 1989 Srpt.rabtr, 1989 " l\:1. rtt>Tr t.o 9,1~707.41 825,491. ~ ~. 948,932. J5 ~9.90Z.~ Jom. 13, 1!.1'90 Oecnhfr, l'JB'J lob) AloUJJt. bri�g dai�rd as rrfUIIdabJr liT ta� crrditabJr JII 1 Z9'91 313. 93 Details of VAT Returns filed for 1990 <CTA Case No. 4785) .U.tarter Gro-.-. Sale-. IOJ C.11i'O'Sion lnctte lfllleJfd Date of Covered of Sen"icu YAf paid lncllllled in Erronee�-.lr filing ~1..-ed Gra-.-. S.le-. Paid ~f WU ret""' Janury to p 6..586,ll6.~ p S'Jl,~l~ Pl, 8')1t 8JS. 60 PlGJ, U'J. 60 AprillO, l'J1Q 33Z. 109.0& l, 050, 663. 79 186.423.97 July CO, J99(1 ltlrt:h, l'nO Z,4&9,405.95 Ort. C:2, 19'30 284,000.34 m, 309. �.�: Jom. 21, 19'91 PpriJ h 4,001,88b.75 l8&,5Z7.CO 838,709.37 76!246..30 Jur~r, 1990 July h 3, ""-\ OC"...Z. 31 Srpt.rmr, 1990 Ortttbrr to Z, IZ3, 589. 9l Deceaber, l'nO Total Alount bring cJaiard as rrfundabJr or ta� crrditabJr Having realized it coMMitted an error in subjecting its commission income to 10~ VAT, petittoner filed written claims for refund with the B. I.R. F Ol" CH-1 Case N~. 4657 it filed its administrative claim on Septe~ber ---�-������------���------- co�mission income incl~ded 4Co~putPd by ~~ltiplying in gross sales by 1 /11� 168

�� DECISION - C.T.R. Case Nos. 4657 and 4785 - .It - 18, 1331. For CTA Case No. 4785, its c] a:i m .,,as filed on September 25, 1991. Not having been granted in the administrative level, petitioner appealed it. 5 two claim 5 to this Court on October 18, 1991 and Apt~il 13, 1992, t~espectively. Answer for CTA Case No. 4657 was filed by respondent 1992. In i t , t~espondent ad�itted ther filing of VAT re-turns by pe-titioner, ther payment of the net VAT thert~eon, to verification from BlR Accounting Division, ther filing by petitionet�� of a claim for refund with re-spondent, and that the latt!?t~ has not granted the former's claim for re-fund. of ther alle-gations were specifically denied f Ol~ lack of knowledge sufficient to belief as to the truth By way of and affirmative defPnses, ~-espondent further stated that: 1. Petitioner's claim is st i 11 pe-ndinq investigation and consideration; � 2. lt failed to substantiate by proper documents the alleged zero rated transaction upon which it anchors its claim for refund; . �~ 3. lt has also failed to show that the ta)(PS paid were erroneously or illegally collected; 4. It has not likewise shown that the taMes bering sought to ber refunded were actually remitted to respondent and even assuming they were remitted, the presu111ption is that they 170

DECISION - C.T.A. Case Nos. 4657 and 4785 -s- were t~ece i ved by t~espondent i n accot~dance with 1 aw; and 5. It failed to show that it had strictly complied with the provisions of Section 204 of the Tax Code in relation to Section 230 thereof. A claim for refund is in the nature of an exemption which is construed strictly against the claimant <Raisin, Inc. vs. Auditor General, 25 SCRA 254). For CTA No. 4785, answer was filed by respondent on September 18, 1992. In it, respondent admitted only the allegations in paragraphs 1 and 2 of the petition, which perta1n to the legal capacity of petitioner to sue and ... ..:. that of respondent to be sued. He practically denied all the aliegations for lack of knowledge and information sufficient to form a belief as to the truth thereof. The ~~1� allegation which he denied for being mere opinion and unfounded conclusion of fact and/or law, was that the commission income derived in buying and selling shares in the name of it5 non-resident clients, qualify as a zero- rated transaction pursuant to Section 102 (a) <2> of the> Tax Code. As his special and affirmative defenses, respondent alleged the following: 1. Petitionet~ has failed to state any cause of action under Section 204 of the Tax Code, that, is it failed to show on the face of its petition that the collection of the amount of P752,419.49 is illegal and erroneous as against the legal presumption that the co l 1 e c t i on t h e t~ e o f i s 1 a wf u 1 and t~ e g ttl a r ; 171

~.�� DECISION - C.T.A. Case Nos. 4657 and 4785 6- ' 2. Provisions on tax refund construed strictly against the taxpayer as are in the nature of tax exemption; 3. In an action for refund, the taxpayer has the burden to ~how that the taxes paid were erroneously or illegally paid and failure to do so is fatal to the action for refund; and 4. The claim f ol~ l~efund is still undel~ investigation. In one of the hearings conducted, specifically on 1993, counsel for petitioner verbally moved for the consolidation of the instant cases as they involve the same parties and issues. The consolidation was granted and this was confirmed by the Co~-.wt in its l~esoll.tt.ion of July 5, 1993 ( pp. 152 and CTA I recot�ds). pendency of these cases~ the claim for~ r��efund covet�ed by CTA Case No. 4&57 was favorably acted upon by respondent. The latter issued to petitionel~ twc� <.:::) TaH Credit Certificates <TCC> with the following details: Dat.e of A�ottnt SN No. Issuance .. . 1.> 00197& Sept. 24, 1993 P&l3,187.08 <Exh. ~ Sept. 24, 1993 P330,179.00 c; ' Resp.; p. 220, CTA rec. ) 2. ) 001977 <Exh. "3"' Resp.; p. 221, Ibid. > Tot3l Amount TaK Credited P'343,366.08 172

L DECISION - C.T.A. Case Nos. 4657 and 4785 - 7- The total amount of tax credit granted to petitioner was only P943,3GG.08 as the amount of P355,947.85 representing payments for~ the first and second quarters of 1983 was denied on thE> ground of pt~esct~ i pt ion <E)(h. "1-E," Resp.; p. 219, supt~a.>. petitioner's claim for The e)(am1ner who inve' stigated t~efund, submitted a report on his findings. portion of which is quoted hereunder: ")()()( With the foregoing it appears that the commissions earned by subjPct ta)(payer in the pursuit of its stock brokeragE> services to non- resident investor clients are subjPct to thE> VAT at zero pPrcPnt and, thprpfor�>, therE> was indPed an erronpous paymPnt of thE> VAT in so far as thesE> commissions are concerned. Be it noted though that the claim for tax credit with resoect to the undue payments for the ouarters ended March 31 and June 30, L989 were filed beyond the two-year reylementary period mandated by Section 230 of thE> Tax Code, as amended. Accordingly, the amount of P355,947.B5, reprPsenting undue payments for thE> first and spcond quarters of 1989 must be deniPd on account of prescription, thereby leaving a creditable amount of only P343,3GG.08. It may bE> noted, too, that the et~t~oneo>.~sly paid VRT was cha~ged to thE> Taxps and Licenses expensE> account and was dPpuct. Pd from income in t aMpayp}-' s 1383 incomE> taM t~ettn~ns. Thus, a cot~rection of taxpayer's 1989 income tax liability is in order. All told, taHpayer may recover the r1 e t. a mc1 u n t nf only PG13,187.08, arrived at follows: f-:lmount claimed P1,23'3,313.'93 355,347.85 Dech�ct - Claim filed beyond the two-year period 173

DECISION - C.T.A. Case Nos. 4657 and 4785 - 8- f Creditable amount 943,3&6.08 Less Income tax effect of the 330,179.00 erroneous VAT payment Net tax credit p 613,187.08 In the light of the fot�egoing, it is respectfully caused to be recommended that the following be Inc.- issued to Anscor-Hagedorn Securities, 1. An Assessment Notice for P330, 179,00, representing 1989 deficiency income taM, with a notation that the sa�e will be paid by a tax credit certificate to be issued f or the p '-W p o s e ; 2. A TaM Ct~edit Cet~tificate <TCC> fot~ P330,179.00 to be used in payment for the 1989 inco11e tax deficiency described in Item I above; and 3. Another TCC in the amount of P613,187.08, representing net credit for erroneous VAT payments in 1989, all pursuant to Section 102 (a) <2> in ,~elation to Section 230 of the National I n t e r n a l R e v en ~� e Cod e , as a�ended.'' (Undet~scot~ing suppliPd; PP� c' 1 8, c.� 19, .... CTA �~eco�~d s > From the above, respondent's examiner rPckoned the two-year prescriptive period from the dates of payment, as mandated by Sect1on 230 of the Tax Code. On th1s point, the Court begs to disagree. Section 230 not apply to the instant case. It should be Section 106 <b> of the Tax Code, which is the proper applicable law as the case involves claim fo~ refund of VAT based on or~ effect:ively zero-rated sa 1 e. The law �� provides: 174

DECISION - C.T.A. Case Nos. 4657 � and 4785 - 9- "Section tOG. Refunds of input ta.~�. <a> E)(pOt"t Sales. - )( )( )(. <b> Zero-rated or effectively z�ro-rated sales. Any person, e)(cept those covered by paragraph <a> above, whose sales are zero-rated or are effectively zero-rated may, within two y_ga.rs after the close of the quarter� when such sales were made, apply for the issuance of a taM credit certificate or refund of the input ta:~es attt"ibt.tt.able to such sales to the eMteTlt that such input ta)( has not been appliPd against output ta)(. )( )( )( " <Un d e t" s cor i n g s up p 1 i e d ) � Applying the foregoing to the case at bar, the two- year prescriptive period for payments made during the April 1, 1989 and end on March 30, 19'31. The claim was filed with the B. I. R. on September~ 18, the petition for review was filed with this Court on Octobet� 18' 1'3'31. Both claims were filed obviously beyond the two-year prescriptive period, hence, prescribed. For payments covered during the second quarter of to June, 1'38'3, the two-year prescriptive period, began on July l, Given the sa.�e dates of filing the claims as Septe111bet" 18, 19'31 and October� 18, 1gg 1, de f i n i t e l y, said claims for the sPcond o�Ja~�t.et' wer�e filed aftet~ the Pltpir~y date of the pr�escr�tptive period, and therefore, have also prescrtbed. 175

DECISION - C.T.A. Case Nos. 4657 and 4785 - 10 - The two-year prescriptive pet~ i od fot~ the quarter payments was from October 1, 1989 to September 31, 1gg 1. For this group of payments, the administrative claim was timely filed with the B.l.R. on September 18, 1991. However, the claim was filed judicially on October 18, 1991 which was beyond September 31' 1991' the deadline of the prescriptive period. similar to the first of payments, the succeeding payments for the third quarter also prescribed. Only the payments for the fourth quarter did not prescribe. For the dates of filing the claims, were well within the two-year period from January 1' 1990 to DecembP.r 31, 1992. On account of the Court's findings, the claim pet~t ai ni ng to the third quarter should have been denied dt..1e to However, for the reason that tax certificates have already been issued by the respondent, long before this case has been submitted for decision, the Court will not such findings of the respondent. Respondent may voluntarily and legally pay the third quarter claim inasmuch as the administrative claim for refund was filed on time. !P v1ew of the fact, that petitioner's claim for tax crPrlit ~n rrA Case No. 4657, has been acted upon by thP 176

�., 'I � IJCCISION - t:. T. n. Case Nos. ~'�6~il and ~'f785 - 11 - the merits of th~ said will be passed upon by this Court. The issues to be r~solved are: l. Whether or not petitioner�s co~nissio~ inco~e qualify for the zero rate of VAl; � and Whether or not the require~ents for clai~s for refund have been co~pli~d with by p e t i t i one�~ .. The applicable law relative to the f i ,.. s t i s s \1 e is �section 102. Value - added ta� on sale of services. (aJ Rate and base taH There shall be levied~ assessed and collected., a value-added ~a� Pq�.ti�.. ale-nt to 10 pet~cpnt of gt~oss l~PcPipt.-:. derived' by any person engaged in the salE' of services. ~ " ~ Provided that the- following sales by ~4T registerPd persons shall be subjPct to 0%: C2J Sprv~ces other than tho5~ mention~d in the preceding sub-paragraph, th~ considPration for which is paid for in acce-ptable fore-ign currPncy which is ~e~itted irwla,~ct!y to the Philippines and acco'.mtl:"d fr_p-- in accordance with thP rules and re-gulations of the- Central Bank of thP Philippines. T r� o �.1 a J 1 f y for zero percent <OSJ r-iltP of VAT 2 of 102 177

DECISION - C.T.A. Ca~e Nos. 4657 and 4785 - 12 - 1 l"h;p C:[t~r�!'�idl~r�at.i~H� for thF �r:.;pr�yj,t:e lo paid fDr in acceptable foreign curren~y; 2. The fcr~ign ~urrFncy i s inwardly to t.hP PhilippinE's; and 3. Th;p rp~jttance ~ust be acc~unt~d fov in accon:Jance ~o-1ith the .-..tles and 1��eguJations of the Central Bank of the Philippines. what hrtppenpd in CTA Ca;;.e cl ai 111. sub~itted a written find1ngs shp thP "M~M Jn support of its sub~ittPd copiPs of the following and proof of pay111ent of 2.' CPntra) Bank licenses a~~ STP {5Pc�.u��:itiP5 TransrH:�tion Division) ap,:n~o'�.i'\1 of f (ll,~~j gn i nvFst !!"lent s:; 3. J Bar~~ CJ"'Fdit adviCF5 rPllllit.t.a:nces of proceeds of foreign 4.J Application to p~rchase doJ lars/forPign c�.w,~ency with app��{,\'al t�v th.=-� ~oreign OperatiDn and Jn~est"ent DFpRrtnPnt n& the CPntral Bank; and 5. ) "'P"'os on P'�""cha::-Ps of f f<I"F i gn ,~e~~nittances t o non- residFnt investors. <Exh.. t'"A"" ~ p. 4 l ' c 1 A ,.. F c. t was confirmed by the invp;.tiqat.:lnq 178

DECISION - C.T.A. Case Nos. 4657 and 4785 - 13 - t. f'!:.t. if i ed in Cr:oa.wt. l !'."�,. 1394 a:. DPt it. :i onpr' !:� witness (pp. 7-9~ T.S.N. Hearing of 3-15-34). Thii.IS: 0. Ma' an, 1"' 1 1 be- aore spe-cific now. Do yo .., . o�~ have you ena1111ined thp claim for refund of petitioner corporation Anscor Hagedorn Se-curities,. Inc. for value-added t. an in 19'90? A. Yes. 0. Now, in the ena�ination of petitioner's clai� for refund, has it co�p1ied with the docu�Pntary require�ents of the Bm��pau? n. Yes. 0. And in their co�pJiance with the docu�entary require�ents, they have sub�itted the necPssary docu�ents? far as �Y report :is COT:l:'PJ''OPd, they have sub�itted all t.hs: require~e-nts. Only one !s s t i l l unsub�:it.ted which i=� the" docu~entary sta�p t.;;\>1 on increase on capital st. e�= k f lP"� lt.he yPar 1390. 0. For 1990 c1ai� for refund, would it be accur�atP to state th~t they have sub�itted thPir value-added t.a" ,~et. urn? A. Yes. D. For the four quarter of 1930~ (.J. Would ~t be also accurate t~� st.at.e that thPy also have =��.�b~ i t t ed 179

DEClSlON -- C.T.n. Case Nos. 4657 and 4785 - 1.t, - the~r application for fer� t.he- per�iod 1'990? 0. Would it be also accurate to statF that the-y have- also sub~itted the confir�ation l~ec�>ipt and proof of pay�e-nts of val�.H."-adde-tll t.an f cw 13'30'? A. it was. all attached t~n the U. Have they also sub~itted to you, Madan~ the Central Bank Lice-nses and Se-cm�itie-s Transaction Division approval of foreign il nve;.t lf�>nt c' A. Ye'S. To S\lppcwt. cl ai "'' pe-tit i one-�� s~.�bw:itte-d and following e-~h:ibits as i t s E"'hib:its. NaturP np.>�; ''A-I'" and "A-2'" MP�orandua RPport To prov� that t~� BJR has ''A-J"' dat t?d 3 NovP�bp,-� l '993 app�� ttvPd pPt it i onpr' s c�]ai � fen�� VAT .-~hmd! fttr 1'390 i!l lhP smr of J:l(.7'3,080.80 Sign.abJ.f'eo; of BlR VAT To pl�o�n~ that after� "� EKa:minet� d!!!l..J f1UTII! II!' !fa.. i '!11.a': ;_on of and StPp'!~'V i. 'i 01'' G. 8. petIt i.cr>"~r'' s c!.;o ie <J.I'ld .Jav u::r- 'iiJ.btrl S"i i !'ff!1 IJf all 'ch,;;cl.\'lH'n~�;, the .~;-;i.gn~d BIR officer"i r@co~~e~ds t~~ a~proval uf p~t; t f; l\:H'\Il;:P"~ 'i ~:LJ.l~ f'e ft!f1!d in t~'!" 'i',JJ!J Pb. r=. Q'!J~i. e1: 180

,... DECISION - C.T.R. Ca~e No~. 4657 and 4785 15- EHhibits Nat.urP PurposP "B" to BJR R~vpnup Offjcpr's - sa�P as EHhibits "'Arr to "B-2" VAT Audit Rl"ptn~t "A-3" ''C"' t 0 B1R ,:hlthPdty tP issuP - sa�eo as EHhibjts ~A" "C-2"' and "B'' and sub�arldngs VAT cr~Pdi t h~l'hmd To provP that pr.>titionPr "C" VAT ,~ptm~ns J���� fi lPd :its VAT rPt m�n f ot~ CCTA 1 ��~� qua,~t Pr of 1'3'90 q~�;:n~tp,~, 1990 To provP that pPt it i om1T R~-cord, p. Gl paid thP VAT :i np�.1t tax f OJ~ J ��~ q~.lin~t Pt� 1'9'90 "D" Conf i n�at ion RPCPipt To provr.> that pPt it i omn~ No. B193JOJ17 CCTA fi]Pd its VAT t�tttm~n for Rfcon:.t, p. 7; To J.WDYP that pe-tit i POPJ~ paid thp VAT input tax "E'" VAT RPt \Wn ,_,.,. q~�artPJ� To p~~ovp that t:�Ptitiomn~ 1990 CCTA RPC'OJ~d, f i 1Pd it-;. VAT ,-pt m�n f ot~ 3~'"., Q\la���t. trr 1'9'9(1 p. 8) To prove that DFtitionPr "F"' Conf i ,~.at ion RPCPipt paid tt-l~~ VAl 1 :r:,:nrt tax hw 3"'"' t:P.li:WtFl" 13''90 NP. 20319341 CClA lo pn.lve- that p~�>titionPr Rl"C[Wl:.f, P� 9) f i 1 f�o j t ;. VAT r('t~n-n fo1~ "6'1' WH R!?t. m~n 3"".,. Q\tat��t Pr To provP that pPtitionPr 199(, tCTA RPcord, paid tt-. f. VAT J n pt.lt t ax f tw 4�"" m�ar t fT 13'3'0 p. 101 To prove that c]ai� for "H'' Conf i r~�at ion RPCPipt refund on pPtiti~npr VAT for 13'90 was. f i 1 Pd with No. 2(,87.39 �CTA the- BJR on SFpte-�bpr~ c'f,, Rn:(trd, p. 11) l '93�) . ] .. VAT Rpturn 4~~ quartPr 1'990 u:.TA RPcttr�d, p. l C.'.l ''J" C.onf i raat i c:m Nt~. B2l3'91835 Re-ct1nf, p. 1.3) "H" CJai� for RPfund datPd 25 Se-pt.PIIIIbPJ~ 1931 (3 pagpsJ lCTA rr.>cords, pp. 1~~-1 t�)

DECISION - C.T.A. Case Nos. 4657 and 4785 16 - Nature Purpose "l~-l'' Att~ch�Pnt of K (zpro To ~how pFtitiooPr's nttP - sahs) tCTA Rt>cord., p. J ~) zf:'ro-,~atP sal p~ fo�~ 1'990 (p. 39-40., CTA ,~pcords) 1-Jith all the foregoing docu�entary and testi�onial evidE"nce., petit i ont:T has s1.�bstant i ally r:wove�n that its coll!'lllission inco~e qualified for the zero rate of VAT. The t.tweP (3) Section 102{a) of the lax Code~ have bPen net satisfactorily by petitioner. i !:� !:�\I e de a 1 s on prescription~ applying Section lO&CbJ of the TaM Code, the reckoning of thP two- period starts after the close of the quarter when such sales were ~ade. For the first quarter of 1990 payments~ the two-year � period began on April 1, 1390 and ended The clai~ was filed with the B. [.R. on September 25, 1391, while the petition was filed with this Court on Apri 1 13, 19'92. The filing .,,ith the B.J.R. wa~. well ..,ith:in the two the filing of the judicial claim was clearly beyond March 30, 1332. thP amount of � 182

DECISION - C.T.R. Ca5e No5. 4657 and 4785 - 17 - The pe-riod few the- sPcond! quartPr pay~ents. was fro� July 1, 1990 to JunP 30, t 9'92. Obvio~l!:-ly, both the filing of claif'l' the judicial clai~ t-I�'T'�' not o�.tt ~� i dP � the third qu~rter did not also two-yPar prescriotivP period >l a ;:. o nO'"'""c,_t."-.=:o.=t::.�:'<,_,,_��_ _.,_1~�-1"--"'3'""3::...:0 and t h e end wa:. on SPpte1111ber 31, !. '3'32. .�_:::_t"._:",., 1'39 t, date of fiLing the B. 1. R. ~ and A;:n~ i 1 13~ of fi] ing with Court, were definitely within the two-year period. For payments dated during the- fourth quarter, thE' i ,.. two-year prescriptive PPriod was fro� January 1, 1991 to S~pf::el!'l!bet� 15, 1'3'31 a.nd within the rPason that paymPnts few the fi��st. 1990 have al y��eady of P2,897,835.50 rPpresenting com�ission f�~o!IR non- will be enc]udedi in thl? of the all!ol\.mt to frdlow:ing the co�putatirtn {p. 42. CTP report dated Novembpr 3, 1993 <EJ.thibit 183

- DEClSlON - C.T.A. Ca~e No~. 4657 and 4785 - 18 - on] y the- .:n�c~>.mt of P415,64l.2l ~ay be granted to petitioner. is done as fDllows: Co~~ission income fro~ s.a]p Of c!;.�>J"'YiCPS P1 f,. 031, 84':"�. 00 LPss: zero-rated conwission income 2,.,,cf q�.1art. e�~ P2,. 0~�0,. E�&3. 73 2, 483,. 40::�. 95 .3.,-�d Qlltart e��� 4~ ,..., q�.1ar�t. eJ"' 833,70'9.37 ::., 378, 77~~ � Co~mis~ion inco~e subject to 10~ VRT P 1o, E�S3, o&::�� 8'9 Mu1tip1y by {VRT is not billed separately in the i nYoi ce l ~ I,..,_.,,___ __ vnr due p 'J68, 46(�. 54 Less: VAT PayMents l ��~� quar�t ~"��� p 531,4&5.14 322, 10'9. Of� 2"cJ qlll.:n~t PJ"' 284,000.34 18�.,527.20 3>-�cf quart Pt"' 4~'"" q�.�a���t Pr 1 � 384, 1 o L- 7 4 Tntal ~mount of p 415, &41. 2l refundable output ta~ WUEREFORE11 in view of all the the petition covered b~� CTA Case No. 4657 is heot�eby DlSI11SSED. The clai.!lll h.a.s. .ah�eady been f.a.VI.H�.a.bly ~:l.cted upqn by re~pondent, by i~suing to petitioner taK credit tn the t 0 t .:a.l .=J.IIIIOIJO t of P'J4.J, 36.6. 08. The of P355,947.8S was disallowed �:>n account of b)' CTR Case- No. 4785 i 5 hPl"'Pby of P415,64l.2l, as 184

DEClSION - C.T.R. Case Nos. 4657 and 4785 - 19 - :in said SO ORDERED. (~tg. .. Q~ WE CONCUR: ERNESTO D. ACOSTA p,��eo =� l tl! i ng _l Hdge I CERTIFICATION 1 hereby ceortify that this deocisiDn was reachPd ln accordance with SPction 13~ Rrticle V1l 1 of thF Constitution. e,,__c:;� U). ~ ERNESTO D. ACOSTA p,~p!;. i ding _lm1yP Co~t.wt of T a"� A;:tpE';rt 1 ?:� 185