PERCEPTION GAMING, INC., v. BUREAU OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES Court ofTax Appeals QUEZON CITY Third Division PERCEPTION GAMING, INC., CTA Case No. 8509 Petitioner, Members: -versus- BAUTISTA, Chairperson, FABON-VICTORINO, and RINGPIS-LIBAN, JJ. COMMISSIONER OF Promulgated: INTERNAL REVENUE, Respondent. MAY 11 2015 x-------------------------------------------------~--L~~~~-~-:~~-------------x AMENDED DECISION BAUTISTA, ]. For resolution is petitioner's "Motion for Reconsideration (RE: Decision Dated November 12, 2014)" filed by registered mail on November 28, 2014, without any comment from respondent despite notice thereof. On November 12, 2014, the Court promulgated a Decision, the dispositive portion thereto reads: "WHEREFORE, in view of the foregoing, the Petition for Review is hereby DENIED for lack of jurisdiction. SO ORDERED." I L

AMENDED DECISION CTA Case No. 8509 Page2of13 Petitioner's Arguments Petitioner asserts that it is entitled to an input VAT in the total amount of Two Million Four Hundred Fifty-Eight Thousand Four Hundred Eighty-Six Pesos and Twenty Centavos (PhP2,458,486.20) and an output VAT in the total amount of Six Million Five Hundred Ninety Thousand Seven Hundred Eighty Pesos and Sixty-Five Centavos (PhP6,590,780.65) on its sale of services to the Philippine Amusement and Gaming Corporation ("PAGCOR") and to entities authorized by PAGCOR to operate gaming centers ("PAGCOR-Authorized Bingo Operators") for the 2nd to 4th quarters of calendar year ("CY") 2010 and the 1st to 4th quarters of CY 2011, as provided in Section 13(2) of Presidential Decree ("PD") No. 1869, as amended by Republic Act ("RA") No. 9487 (hereinafter referred to as the "PAGCOR Charter"). Petitioner further asserts that it timely filed its claim for input and output VAT in compliance with Sections 112 (A) and (C)1; and Section 1 "SEC. 112. Refunds or Tax Credits of Input Tax. - (A) Zero-Rated or Effectively Zero-Rated Sales.- Any VAT-registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax: Provided, however, That in the case of zero-rated sales under Section 106(A)(2)(a)(1), (2) and (b) and Section 108 (B)(1) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP): Provided, further, That where the taxpayer is engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt sale of goods of properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales: Provided, finally, That for a person making sales that are zero-rated under Section 108 (B)(6), the input taxes shall be allocated ratably between his zero-rated and non-zero-rated sales. XXX XXX XXX (C) Period within which Refund or Tax Credit of Input Taxes shall be Made. - In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsection (A) hereof. In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one hundred twenty day-period, appeal the decision or the unacted claim with the Court of Tax Appeals."

AMENDED DECISION CIA Case No. 8509 Page 3of13 2292 of the 1997 National Internal Revenue Code, as amended ("Tax Code"), respectively. Ruling of the Court The issues raised by petitioner boils down to the single issue of whether petitioner is entitled to refund on its output VAT payments and input VAT for the 2nd to 4th quarters of CY 2010 and the 1st to 4th quarters of CY 2011 for the sale of service it made to PAGCOR and PAGCOR- Authorized Bingo Operators. Section 13(2) of the PAGCOR Charter provides that tax exemptions granted to PAGCOR, "shall inure" to its authorized game operators ("Operators"), and other entities providing facilities and rendering services to PAGCOR and Operators. The Court quotes: "Section 13. Exemptions. - XXX XXX XXX (2) Income and other taxes. - (a) Franchise Holder: No tax of any kind or form, income or otherwise, as well as fees, charges or levies of whatever nature, whether National or Local, shall be assessed and collected under this Franchise from the Corporation; nor shall any form of tax or charge attach in any way to the earnings of the Corporation, except a Franchise Tax of five (5%) percent of the gross revenue or earnings derived by the Corporation from its operation under this Franchise. Such tax shall be due and payable quarterly to the National Government and shall be in lieu of all kinds of taxes, levies, fees or assessments of any kind, nature or description, levied, 2 "SEC. 229. Recovery of Tax Erroneously or Illegally Collected. - no suit or proceeding shall be maintained in any court for the recovery of any national internal revenue tax hereafter alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, of any sum alleged to have been excessively or in any manner wrongfully collected without authority, or of any sum alleged to have been excessively or in any manner wrongfully collected, until a claim for refund or credit has been duly filed with the Commissioner; but such suit or proceeding may be maintained, whether or not such tax, penalty, or sum has been paid under protest or duress. I In any case, no such suit or proceeding shall be filed after the expiration of two (2) years from the date of payment of the tax or penalty regardless of any supervening cause that may arise after payment: Provided, however, That the Commissioner may, even without a written claim therefor, refund or credit any tax, where on the face of the return upon which payment was made, such payment appears clearly to have been erroneously paid."

AMENDED DECISION CTA Case No. 8509 Page4of13 established or collected by any municipal, provincial, or national government authority. (b) Others: The exemptions herein granted for earnings derived from the operations conducted under the franchise specifically from the payment of any tax, income or otherwise, as well as any form of charges, fees or levies, shall inure to the benefit of and extend to corporation(s), association(s), agency(ies), or individual(s) with whom the Corporation or operator has any contractual relationship in connection with the operations of the casino(s) authorized to be conducted under this Franchise and to those receiving compensation or other remuneration from the Corporation or operator as a result of essential facilities furnished and/or technical services rendered to the Corporation or operator. The fee or remuneration of foreign entertainers contracted by the Corporation or operator in pursuance of this provision shall be free of any tax." (Emphases ours) From the above-quoted Section of the PAGCOR Charter, three (3) entities shall enjoy exemption from taxes, viz: 1. The Corporation, or PAGCOR; 2. Corporation(s), association(s), agency(ies), or individual(s) with whom the Corporation or Operator has any contractual relationship in connection with the operations of the casino(s) authorized to be conducted under the PAGCOR Charter; and 3. Those receiving compensation or other remuneration from the Corporation or Operator as a result of essential facilities furnished and/or technical services rendered to the Corporation or operator. It is thus apparent from the foregoing enumeration that the tax- exempt status of PAGCOR extends to other entities with whom PAGCOR or Operator has any contractual relationship in connection J with the former's operations of the casino(s) authorized to be conduc ted under the (~ Charter.

AMENDED DECISION CTA Case No. 8509 PageS of13 In the present case, petitioner has leased gaming machines and furnished technical services to PAGCOR and Operators4� On the said transactions, petitioner alleges that it paid 12% output VAT. However, based on the PAGCOR Charter, the said transaction should have been subjected to zero percent (0%) VAT. Thus, petitioner is claiming a refund or an issuance of a TCC on the alleged erroneous payment of output VAT. In order to be entitled to refund, of its erroneously paid output VAT, petitioner must show that it timely filed its administrative and judicial claims and that it made the corresponding payments thereon pursuant to Sections 204(C) and 229 of the Tax Code. Sections 204 (C) and 229 of the Tax Code are reproduced below: "SECTION 204. Authority of the Commissioner to Compromise, Abate and Refund or Credit Taxes. - The Commissioner may - XXX XXX XXX (C) Credit or refund taxes erroneously or illegally received or penalties imposed without authority, refund the value of internal revenue stamps when they are returned in good condition by the purchaser, and, in his discretion, redeem or change unused stamps that have been rendered unfit for use and refund their value upon proof of destruction. No credit or refund of taxes or penalties shall be allowed unless the taxpayer files in writing with the Commissioner a claim for credit or refund within two (2) years after the payment of the tax or penalty: Provided, however, that a return filed showing an Emphasis ours. Testimony of Ms. Rona Magsakay (Exhibit "XX"): "Q9: Ms. Witness, you mentioned that PGI supplies gaming equipment to PAGCOR-operated gaming venues and various Gaming Operators. What is your basis for saying this? A9: PGI was issued Certificates of Registration by PAGCOR stating that PGI is a registered supplierI distributorI manufacturerI contractor of PAGCOR. Moreover, under several Memoranda of Agreement and Lease and Technical Support Agreements, PGI undertook to supply several Gaming Operators with Electronic Bingo gaming machines to be used in their casino operations. PGI likewise undertook to provide technica( assistance to PAGCOR and the Gaming Operators to ensure the efficient functioning of the gaming machines."

AMENDED DECISION CTA Case No. 8509 Page 6 of13 overpayment shall be considered as a written claim for credit or refund." (Emphasis ours) "SECTION 229. Recovery of Tax Erroneously or Illegally Collected. - No suit or proceeding shall be maintained in any court for the recovery of any national internal revenue tax hereafter alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to have been excessively or in any manner wrongfully collected, until a claim for refund or credit has been duly filed with the Commissioner; but such suit or proceeding may be maintained, whether or not such tax, penalty, or sum has been paid under protest or duress. In any case, no such suit or proceeding shall be filed after the expiration of two (2) years from the date of payment of the tax or penalty regardless of any supervening cause that may arise after payment: Provided, however, That the Commissioner may, even without a written claim therefor, refund or credit any tax, where on the face of the return upon which payment was made, such payment appears clearly to have been erroneously paid." (Emphasis ours) Pursuant to the above-quoted Sections, a taxpayer has to file both the administrative and judicial claims for refund of erroneously paid taxes within 2 years from the date of payment of tax. Employing the two- year prescriptive period under Sections 204 (C) and 229 of the Tax Code, below are the material dates when petitioner filed its administrative and judicial claims: Period Date of End of Two Date of Filing of Date Filing of Payment Year Administrative Judicial Claim Claim for Refund for Refund 2nd Quarter July 20, 2010 Prescriptive CY 2010 Period June 27, 2012 June 28, 2012 3rd Quarter October 26, CY 2010 2010 July 20, 2012 4th Quarter January 25, CY 2010 2011 October 26, 2012 1st Quarter May 20,2011 CY 2011 January 25, 2013 2nd Quarter July 25, 2011 CY 2011 May 20,2013 July 25, 2013

AMENDED DECISION CIA Case No. 8509 Page7 of13 3rd Quarter October 19, October 19, 2013 CY2011 2011 January 20, 2014 4th Quarter January 20, CY 2011 2012 Evidently, the above table demonstrates that petitioner timely filed its administrative and judicial claim, in accordance with Sections 204(C) and 229 of the Tax Code. The Court shall now proceed to determine the refundable amount of erroneous payment of output VAT. For the 2nd to 4th quarters of CY 2010 and the 1st to 4th quarters of CY 2011, petitioner made the following output VAT payments on the sale of service toPAGCOR and PAGCOR-Authorized Bingo Operators in the total amount of Two Million Nine Hundred Fifty-Seven Thousand Thirteen Pesos and Eleven Centavos (PhP2,957,013.11), as follows: Period Output VAT Payment 2nd Quarter PhP427,240.20i CY 2010 835,726.18ii 3rd Quarter 711,436.74iii CY 2010 641,458.35iv 4th Quarter 341,151.64v CY 2010 1st Quarter PhP2,957,013.11 CY 2011 2nd Quarter CY 2011 TOTAL Section llO(B) of the Tax Code states that "if at the end of any taxable quarter the output tax exceeds the input tax, the excess shall be paid by the VAT-registered person. If the input tax exceeds the output tax, the excess shall be carried over to the succeeding quarter or quarter xxx" Clearly from the foregoing, there is a need to determine the correct output VAT after charging the input VAT from the output VAT and if there is an excess input VAT after charging the output VAT, the excess input VAT shall be carried over to the succeeding quarter. In the present case, to determine the "correct output VAT" for the j quarter, the erroneously paid 12% VAT relating to effectively zero-rated (Y sales of services to PAGCOR and Operators shall be deducted from the

AMENDED DECISION CfA Case No. 8509 Page 8 of13 output VAT declared per Quarterly VAT returns for the 2nd to 4th quarters of CY 2010 and the 1st to 4th quarters of CY 2011. Thereafter, the computed"correct output VAT" shall be reduced by the Creditable Input Taxes for the same period, namely: (a) input tax carried over from the previous period; (b) domestic purchases of services for the same period; and (c) domestic purchases of goods for the same period to determine the Net VAT Payable or Overpayment for the quarter. The Net VAT Payable or Overpayment for the quarter shall then be reduced by the VAT payments from the first two (2) months of each quarter to determine the correct Quarterly VAT Payable, to wit: For Calendar Year 2010 For the vear ended December 31, 2010 Second Quarter Third Quarter Fourth Quarter Output Tax (per Quarterly VAT Return) 649,146.4714 860,065.2215 938,488.3716 Less: Erroneously paid Output Tax for Zero-Rated Transactions 427,240.20 835,726.18 711,436.74 Correct Output Tax for the period 221,906.27 24,339.04 227,051.63 Less: - 112,249.53 621,633.55 Input Tax Carried Over from 94,353.02 95,286.55 23,445.17 Previous Period 1,561.77 683.14 302.69 Domestic Purchases of Services for the periodt7 Domestic Purchases of Goods for the periodtS Total Creditable Input Tax 25,006.94 207,285.69 717,222.79 196,899.33 (182,946.65) _(490,171.16) Net VAT Payable Less: Tax Credits (Monthly VAT 309,148.86 438,686.90 477,016.42 Payments- previous two months) (112,249.53) (621,633.55) (967,187.58) (Monthly VAT Return) Total Amount PayablP/(Overpayment) For Calendar Year 2011 For the year ended December 31, 2011 Output Tax (per Quarterly VAT Return) Second Third Fourth First Quarter Quarter Quarter Quarter 967,011.5122 1,042,374.8223 982,998.0024 1,171,446.0525 14 Id., pages 1109-1110. 1s Id., pages 1118-1119. 16 Id., pages 1124-1125. 17 Input Tax is less than input taxes declared per VAT returns for failure to comply with the invoicing requirements as provided in Section 113 of the Tax Code. ;; 18 Input Tax is less than input taxes declared per VAT returns for failure to comply with the invoicing requirements as provided in Section 113 of the Tax Code. 22 Id., pages 1128-1129. 23 Id., pages 1133-1134. 24 Id., pages 1136-1137. 25Id., pages 1128-1129.

AMENDED DECISION CTA Case No. 8509 Page9 of13 Less: Erroneously paid Output Tax for - - Zero-Rated Transactions 641,458.35 341,151.64 1,171,446.05 Correct Output Tax for the period 325,553.16 701,223.18 982,998.00 767,631.10 54,125.36 Less: 967,187.58 1,227,970.79 1,164,706.72 Input Tax Carried Over from 95,578.08 587.04 1,655.36 78,467.14 35,268.44 822,343.50 Previous Period 349,102.55 Domestic Purchases of Services for 600.00 3,818.99 591,149.12 the period26 (242,046.57) Domestic Purchases of Goods for the period27 Total Creditable Input Tax 1,064,421.02 1,307,037.93 1,203,794.15 Net VAT Payable (738,867.86) (605,814.75) (220,796.15) Less: Tax Credits (Monthly VAT Payments- previous two months) 489,102.93 558,891.97 546,834.95 (Monthly VAT Return) Total Amount Payable/(Overpayment) (1,227,970.79) (1,164,706.72) (767,631.10) However, since petitioner made VAT payments for the 2nd to 4th quarters of CY 2010 and the 1st to 4th quarters of CY 2011, it is imperative that the Court deducts the VAT Payments for each quarter to ascertain the amount petitioner is entitled for refund or issuance of TCC, as shown below: For Calendar Year 2010 For the year ended December 31, 2010 Output Tax (per Quarterly VAT Return) Second Quarter Third Quarter Fourth Quarter Less: Erroneously paid Output Tax for Zero-Rated Transactions 649,146.47 860,065.22 938,488.37 Correct Output Tax for the period 427,240.20 835,726.18 711,436.74 Less: 221,906.27 24,339.04 227,051.63 Input Tax Carried Over from Previous Period - 294,973.05 991,186.80 94,353.02 95,286.55 Domestic Purchases of Services for 23,445.17 the period32 1,561.77 683.14 302.69 25,006.94 390,009.21 1,086,776.04 Domestic Purchases of Goods for 196,899.33 (365,670.0_ (859,724.41) the period33 309,148.86 438,686.90 477,016.42 Total Creditable Input Tax 182,723.52 186,829.73 300,801.46 Net VAT Payable Less: Tax Credits Monthly VAT Payments - previous two months (Monthly VAT Return) VAT Paid for the Quarter 26 Input Tax is less than input taxes declared per VAT returns for failure to comply with the invoicing requirements as provided in Section 113 of the Tax Code. 27 Input Tax is less than input taxes declared per VAT returns for failure to comply with the invoicing" I requirements as provided in Section 113 of the Tax Code. fV I~ 32 Same Note as 21. 33 Same Note as 22.

AMENDED DECISION CfA Case No. 8509 Page10 of13 For Calendar Year 2011 For the_year ended December 31,2011 Fourth First Quarter Second Quarter Third Quarter Quarter Output Tax (Quarterly VAT Return) 967,011.51 1,042,374.82 982,998.00 1,171,446.05 Less: Erroneously paid Output Tax 641,458.35 341,151.64 for Zero-Rated Transactions - - Correct Output Tax for the period 325,553.16 701,223.18 982,998.00 1,171,446.05 Less: 1,637,542.29 2,214,623.72 2,490,876.79 2,402,883.24 Input Tax Carried Over from 95,578.08 78,467.14 1,655.36 600.00 35,268.44 54,125.36 Previous Period Domestic Purchases of 3,818.99 587.04 Services for the period34 Domestic Purchases of Goods for the period3S Total Creditable Input Tax 1,734,775.73 2,293,690.86 2,529'964.22 2,457,595.64 Net VAT Payable _(1,409,222.5Z)_ {_1,592,467.68) _{1,546,966.2~ _{1,286,149.59} 489,102.93 558,891.97 Less: Tax Credits 546,834.95 591,149.12 Monthly VAT Payments - previous two months (Monthly VAT Return) VAT Paid for the Quarter 316,298.22 339,517.14 309,082.07 (893,039.05) Total Amount (2,214,623.72) (2,490,876.79) (2,402,883.24) (984,259.66) Payable,/(Overpayment) From the above table, petitioner may rightfully claim the Total Amount Payable or Overpayment reflected in the 4th quarter of CY 2011, or the amount of Nine Hundred Eighty-Four Thousand Two Hundred Fifty-Nine Pesos and Ninety-Nine Centavos (PhP984,259.99). Consequently, petitioner is entitled to a VAT refund or TCC in favor of petitioner in the amount of PhP984,259.99, representing erroneously paid VAT Payable for the 2nd to 4th quarters of CY 2010 and the 1st to 4th quarters of CY 2011. WHEREFORE, the "Motion for Reconsideration" is hereby PARTIALLY GRANTED. Accordingly, respondent is hereby ORDERED to refund or issue a tax credit certificate in favor of petitioner in the reduced amount of PhP984,259.99, representing erroneously paid VAT Payable for the 2nd to 4th quarters of CY 2010 and the 1st to 4th _) quarters of CY 2011. ( SO ORDERED. 34 Same Note as 30. 35 Same Note as 31.

AMENDED DECISION CfA Case No. 8509 Page12 of13 Bingo PinoyI Kingluck Amusement 323,284.00 34,637.57 542,019.00 58,073.46 145 and Games, Inc. 1,058,325.00 113,391.96 14,522.89 May-10 147 Bingo Pinoy - Fields 135,546.30 25,718.28 149 Bingo Pinoy - Dau Mabalacat 240,746.72 14,417.57 134,563.14 28,422.32 152 All Points Leisure Corp. 265,275.00 103,415.79 154 Market Bingo 965,214.00 34,640.36 323,310.00 155 All Points Leisure Corp. PhP427,240.20 Jun-10 161 Bingo Pinoy - Fields Output Tax per Exhibit 163 Bingo Pinoy - Dau Mabalacat "D" 166 Bingo Pinoy-Kingluck Marilao 2,005.71 Properly Substantiated Zero Rated Sales for Second Quarter 938.57 of 2010 1,877.14 ii 25,464.12 18,369.96 Month OR Name of Buyer per OR OR Amount 131,788.18 Number (inclusive of 60,203.57 30,921.75 162 Bingo Pinoy - Dau Mabalacat VAT) 18,720.00 938.57 164 Bingo Pinoy - Fields 938.57 8,760.00 19,478.46 Jul-10 165 Bingo Pinoy - Kingluck Marilao 17,520.00 128,418.75 Aug-10 BPC Management Group Inc. - 57,226.71 237,669.48 37,733.36 171 NEPA 171,452.70 173 All Points Leisure Corp. 1,230,023.00 18,866.06 178 Bing_o Pinoy-Dau Mabalacat 561,900.00 179 Bingo Pinoy-Fields 288,603.00 20,629.87 180 Kingluck Amusement- Marilao 51,971.89 168 All Points Leisure Corp. 8,760.00 41,324.68 170 Market Bingo 8,760.00 122,299.29 185 All Points Leisure Corp. 181,795.68 186 Bingo Pinoy-Dau Mabalacat 1,198,575.00 27,219.96 188 Bingo Pinoy- Fields 534,116.00 189 Kingluck Amusement & Games Inc. 352,178.00 22,949.83 14,161.18 BPC Management Group, Inc. - 176,083.26 193 Navotas PhP835,726.18 192,545.43 BPC Management Group, Inc. - 485,071.00 Output Tax 195 NEPA 385,697.00 per Exhibit 1,141,460.00 203 Bingo Pinoy- Fields "D" 254,052.99 2,815.71 204 Kingluck Amusement- Marilao 3,754.29 214,198.02 Sep-10 206 Bingo Pinoy- Dau Mabalacat 132,171.00 938.57 BPC Management Group Inc. - 209 QMart BPC Management Group, Inc. - 211 Navotas 218 All Points Leisure Corp. Properly Substantiated Zero Rated Sales for Third Quarter of 2010 iii OR Name of Buyer per OR OR Amount Number (inclusive of Month 205 Bingo Pinoy- Fields VAT)_ Oct-10 26,280.00 208 Bingo Pinoy- Dau Mabalacat 35,040.00 BPC Management Group Inc. - 8,760.00 210 QMart

AMENDED DECISION CIA Case No. 8509 Page 13 of13 BPC Management Group, Inc. - 17,520.00 1,877.14 212 Navotas 116,542.08 12,486.64 601,332.00 64,428.43 220 All Points Leisure Cor�. 1,122,800.00 120,300.00 372,486.00 39,909.21 227 Bingo Pinoy- Fields 1,054,034.00 112,932.21 667,151.00 71,480.46 229 Bingo Pinoy- Dau Mabalacat 347,906.00 37,275.64 1,877.14 231 Kingluck Amusement & Games Inc. 17,520.00 54,559.71 509,224.00 62,565.32 241 Bingo Pinoy- Dau Mabalacat 583,943.00 119,250.32 1,113,003.00 Nov-10 244 Bingo Pinoy- Fields 17,520.00 4,985.95 245 Kingluck Amusement Games & Inc. PhP711,436.74 247 Kingluck Amusement Games & Inc. Output Tax per Exhibit 253 Kingluck Amusement & Games Inc. "D" Dec-10 255 Bingo Pinoy Corp. - Fields 53,654.79 1,877.14 258 Bingo Pinoy Corp. - Dau 101,830.93 1,877.14 259 Bingo Pino_y Cor_g. - Dau 114,441.86 Properly Substantiated Zero Rated Sales for Fourth Quarter 56,570.14 of 2010 1,877.14 58,351.04 iv 123,272.36 53,322.32 Month OR Name of Buyer per OR OR Amount 70,629.21 Number (inclusive of 1,877.14 1,877.14 265 Bin_go Pinoy_- Fields VAT) 500,778.00 PhP641,458.35 Jan-11 266 Bingo Pinoy - Fields 17,520.00 Output Tax 268 Bingo Pinoy - Dau 950,422.00 per Exhibit "D" 17,520.00 Feb-11 286 Binoy Pinoy - Dau 1,068,124.00 92,799.00 288 Binoy_Pinoy - Dau 527,988.00 62,696.57 289 Bingo Pinoy - Fields 17,520.00 291 Bingo Pinoy - Fields 544,609.68 64,446.86 292 Kingluck Amusement & Games Inc. 1,877.14 1,150,542.00 1,877.14 Mar-11 304 Binoy Pinoy Corp. - Dau 497,675.00 59,506.29 306 Bingo Pinoy - Fields 659,206.00 308 Kingluck Amusement & Games Inc. 17,520.00 57,948.64 17,520.00 333 Bingo Pinoy Corp. - Fields PhP341,151.64 334 Bingo Pinoy Corp. - Dau I PhP2,957,013.11 Properly Substantiated Zero Rated Sales for First Quarter of2011 v Month OR Name of Buyer per OR OR Amount Number (inclusive of 329 Bingo Pinoy Corp. - Dau VATJ 866,124.00 Apr-11 331 Bingo Pinoy Corp. - Fields 585,168.00 Kingluck Amusement & Games 601,504.00 335 Inc. 17,520.00 17,520.00 May-11 361 Bingo Pinoy Corp. - Dau 555,392.00 364 Bingo Pinoy Corp. - Fields 540,854.00 362 Bingo Pinoy Corp. - Fields Jun-11 Kingluck Amusement & Games 365 Inc. Properly Substantiated Zero Rated Sales for Second Quarter of2011 TOTAL Properly Substantiated Zero Rated Sales for Second Quarter of 2010 to the First Quarter of 2011

AMENDED DECISION CTA Case No. 8509 Pagell of13 Qp.... ~ ~~-- MA. BELEN M. RINGPIS-LIBAN Associate Justice ATTESTATION I attest 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's Division LOVELL Associ te Justice Chai erson CERTIFICATION Pursuant to Section 13 of Article VIII of the Constitution, and the Division Chairperson's Attestation, 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's Division. Presiding Justice Month OR Name of Buyer per OR OR Amount Output Tax Number (inclusive of per Exhibit VAT) "D"