MANULIFE DATA SERVICES, INC. v. COMMISSIONER OF INTERNAL REVENUE (Consolidated with 8513, 8560 & 8611)

REPUBLIC OF THE PHILIPPINES Court ofTax A ppeals QUEZON CITY Third Division MANULIFE DATA SERVICES, INC., CTA CASE NO. 8482 Pe t i tio ner, - versus - COMMISSIONER OF INTERNAL REVENUE, Respondent. X ------------------------------------------------------------ X MANULIFE DATA SERVICES, INC., CTA CASE NO. 8513 Pe t itioner, - versus - COMMISSIONER OF INTERNAL REVENUE, Respondent. X ------------------------------------------------------------ X MANULIFE DATA SERVICES, INC., CTA CASE NO. 8560 Pe titioner, - versus - COMMISSIONER OF INTERNAL REVENUE, Responden t . X ------------------------------------------------------------ X MANULIFE DATA SERVICES, INC., CTA CASE NO. 8611 Pe ti tioner, - versus - Members: BAUTISTA, Chairperson FARON-VICTORINO, and RINGPIS-LIBAN, JL COMMISSIONER OF INTERNAL REVENUE, Promulgated: Respondent. -PR 1 g /017 X --------------------------------------------------------------~---~~-~~~~:~----- X DECIS IO N I

DECISION CTA CASE NOS. 8482,8513,8560 & 8611 Page2of42 BAUTISTA,]: The Case Before the Court are four (4) consolidated Petitions for Review1 filed by petitioner, Manulife Data Services, Inc., on April 30, 2012, July 6, 2012, October 22, 2012 and February 12, 2013, for Court of Tax Appeals ("CTA") Case Nos. 8482, 8513, 8560 and 8611, respectively, pursuant to Section 7(a)(2)2 of Republic Act rRA") No. 11253, as amended by RA No. 92824 and RA No. 95035� The Petitions for Review seek for the Court to render judgment: 1. Granting petitioner the refund or the issuance of tax credit certificates ("TCC"), and ordering respondent to refund or to issue TCCs, in the total amount Php31,163,939.20 representing excess and unutilized input value-added tax ("VAT"), broken down as follows: a. Php11,997,999.50 for the first quarter of calendar year ("CY") 2010;6 b. Php10,304,630.58 for the second quarter of CY 2010;7 c. Php4,124,167.60 for the third quarter of CY 2010;8 and 1 Records, CTA Case No. 8482, Vol. 1, Petition for Review ("PFR"), pp. 6-87, with annexes; Records, CTA Case No. 8513, PFR, pp. 10-100, with annexes; Records, CTA Case No. 8560, PFR, pp. 7-84, with annexes; Records, CTA Case No. 8611, PFR, pp. 8-92, with annexes. 2 "Sec. 7. Jurisdiction. - The Court of Tax Appeals shall exercise: (a) Exclusive appellate jurisdiction to review by appeal, as herein provided. XXX XXX XXX (2)Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relations thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue, where the National Internal Revenue Code provides a specific period of action, in which case the inaction shall be deemed a denial; XXX XXX xxx" 3 An Act Creating the Court of Tax Appeals, as Amended. 4 An Act Expanding the Jurisdiction of the Court of Tax Appeals (CTA), Elevating its Rank to the Level of a Collegiate Court with Special Jurisdiction and Enlarging its Membership, Amending for the Purpose Certain Sections of Republic Act No. 1125, as amended, Otherwise Known as the Law Creating the Court of Tax Appeals, and for Other Purposes. s An Act Enlarging the Organizational Structure of the Court of Tax Appeals, Amending for the Purpose Certain Sections of the Law Creating the Court of Tax Appeals, and for Other Purposes. 6 Records, CTA Case No. 8482, Vol. 1, PFR, Prayer, p. 17. 7 Id., CTA Case No. 8513, PFR, Prayer, p. 21. rl

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 3 of42 d. Php4,737,141.52 for the fourth quarter of CY 2010.9 2. In the alternative, allowing petitioner to present evidence to prove its entitlement to the refund or the issuance of the TCCs sought, and ordering respondent to refund or to issue TCCs in the above-stated amounts.lo The Parties Petitioner is a foreign corporation duly registered with, and authorized by, the Securities and Exchange Commission ("SEC") to operate as a Regional Operating Headquarter ("ROHQ") under SEC Certificate of Registration No. FS20060350511.12 It is engaged in the business of providing qualifying services to its affiliates and related parties in the Asia-Pacific Region and in other foreign markets.13 Petitioner is a VAT-registered entity with Taxpayer Identification Number ("TIN") 244-027-271-000 and was issued BIR Certificate of Registration Nos. 3RC000042162614 and 3RC000033082415 by BIR Revenue District ("RD") Nos. 38 and 39, respectively.16 Sometime in January 2009, petitioner transferred its registered address to Manulife Building, UP North Science and Technology Park, Commonwealth Avenue, Diliman, Quezon City.17 Respondent Commissioner of Internal Revenue (" CIR") is the duly appointed Commissioner of the BIR, who is empowered by law to decide tax cases, including claims for refunds or tax credits. The Facts 8 Records, CTA Case No. 8560, PFR, Prayer, p. 16. 9 Id., CTA Case No. 8611, PFR, Prayer, p. 15. 10 Records, CTA Case No. 8482, Vol. 1, PFR, Prayer, p. 18; Records, CTA Case No. 8513, PFR, Prayer, pp. 21-22; Records, CTA Case No. 8560, PFR, Prayer, p. 16; Records, CTA Case No. 8611, PFR, Prayer, p.15. 11 Exhibit Folder No.1, Exhibit "P-38," p. 1. 12 Records, CTA Case No. 8482, Vol. 3, Consolidated Joint Stipulation of Facts and Issue ("JSFI"), p. 1095. 13 Id. 14 Exhibit Folder No.1, Exhibit "P-39-a," p. 1. 1s Id., Exhibit "P-39," p. 1. 16 Records, CTA Case No. 8482, Vol. 3, Consolidated JSFI, p. 1095. ( 17 Id. at 1095-1096.

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page4 o�42 Petitioner entered into a Business Processing Services AgreementlB ("BPSA") with Manulife (International) Limited ("MIL") effective April 10, 2006, wherein petitioner undertook to provide administrative and such other business processing outsourcing ("BPO") services19 to MIL. On October 25, 2007, petitioner entered into a Services Agreement20 ("SA") with John Hancock Life Insurance Company (U.S.A.) ("JHLIC"), which was deemed to have commenced on May 1, 200621. The SA covers the performance of administrative, information technology, reports, support, and other services as JHLIC deems necessary in the conduct of its operations or the operations of one or more of its affiliates.22 On May 1, 2006, petitioner entered into a Master Administrative Services Agreement ("MASA") with The Manufacturers Life Insurance Company23 ("TMLIC"), wherein it undertook to provide administrative and such other services24. On April23, 2010, petitioner entered into a Service Agreement25 with Manulife Insurance Berhad ("MIB"), wherein petitioner undertook to provide MIB with certain administrative and other BPO services26, including a health services call center.27 MIL, JHLIC, TMLIC and MIB shall collectively be referred to as "clients;" and the corresponding BPSA with MIL, SA with JHLIC, MASA with TMLIC, and SA with MIB, shall collectively be referred to as "Service Agreements" or "SAs." CTA Case No. 8482 (First Quarter of CY 2010) 18 Exhibit Folder No. 1, Exhibit "P-43," Business Processing Services Agreement ("BPSA"), pp. 1-16. 19 Id., Exhibit "P-43-b," BPSA, Article 1, p. 1. 20 Id., Exhibit "P-44," JHLIC Services Agreement ("SA"), pp. 1-15. 21 Id., Exhibit "P-45-b," Addendum to the SA dated as of October 25, 2007, p. 1. 22 Id., Exhibit "P-44-b," SA, Article 1, p. 2. 23 Id., Exhibit "P-46," Master Administrative Services Agreement ("MASA"), pp. 1-14. 24 Exhibit Folder No.1, Exhibit "P-46-b," MASA, Article 1, p. 2. 2s Id., Exhibit "P-52," MIB SA, pp. 1-16. 26 Id., Exhibit "P-52," MIB SA, Whereas Clauses 4 and 5, p. 1. 27 Id., Exhibit "P-52-e," Schedule 1, Services and Service Levels, A. Health Services Call Centre ("HSCC"), p. 1. (

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 5 o�42 Petitioner filed its Quarterly VAT Declaration (BIR Form No. 2550-Q)28 for the first quarter of CY 2010 Oanuary to March) on April 23, 2010, showing an overpayment of Php34,307,534.3629. Petitioner reflected VATable zero-rated sales amounting to Php276,172,047.363o. On December 6, 2011, petitioner filed with Revenue District Office ("RDO") No. 38 an Application for Refund/Tax Credit of Excess and Unutilized Input VAT31 for the first quarter of 2010 in the amount of Php11,997,999.50, together with BIR Form No. 1914 asking specifically for the issuance of a TCC32. Claiming inaction on the part of respondent,33on April30, 2012, petitioner filed a Petition for Review34, docketed as CTA Case No. 8482, which was raffled to the CTA Third Division. On June 5, 2012, the Court issued a Summons35 addressed to respondent, with an order to file an Answer. On June 25, 2012, respondent filed a Motion for Extension of Time to File Answer36, which was granted by the Court in a Resolution37 dated July 2, 2012. On July 26, 2012, respondent filed an Answer3s, wherein he raised the following special and affirmative defenses: (1) that petitioner failed to show that it filed an application for tax refund/TCC with RDO No. 38; (2) that its application for tax refund/TCC is subject to administrative investigation/examination by the BIR; (3) that taxes paid and collected are presumed to have been paid in accordance with law and regulations, hence, not refundable; (4) that it is incumbent upon the taxpayer to prove compliance with Sections 112, 113 and 114 of the 1997 National Internal Revenue Code, as amended ("1997 NIRC"); and (5) that claims for 28 Exhibit Folder No. 2, Exhibit "P-1701," Quarterly VAT Return for the First Quarter, pp. 1-2. 29 Id., Line 29, p. 1. 30 Id., Line 17, p. 1. 31 Id., Exhibit "P-1700," Administrative Claim for Refund for the First Quarter, pp. 1-3. 32 Id., Exhibit "P-1700," Administrative Claim for Refund for the First Quarter, Annex, BIR Form No. 1914, p. 1. 33 Records, CTA Case No. 8482, Vol. 3, PFR, p. 2. 34 Id., Vol. 1, PFR, pp. 6-87, with annexes. / 35 Id., Vol. 1, p. 88. 36 Id. at 90-91. 37 Id. at 93. 38 Id., Answer, pp. 94-97.

DECISION CTA CASE NOS. 8482,8513,8560 & 8611 Page 6 o�42 refund are strictly construed against the taxpayer, as it partakes the nature of a tax exemption. On July 27, 2012, the Court issued a Notice of Pre-trial Conference39, setting the case for pre-trial on August 23, 2012. Thereafter, respondent and petitioner filed their Pre-trial Briefs on August 17, 201240 and August 22, 201241, respectively. On August 13, 2012, petitioner filed by registered mail its Reply (Re: Answer dated 26 July 2012)42. Due to the pending Motion for Consolidation in CTA Case No. 8513, the pre-trial conference was reset to September 6, 2012.43 CTA Case No. 8513 (Second Quarter of CY 2010) On July 26, 2010, petitioner filed its Quarterly VAT Return (BIR Form No. 2550-Q)44 for the second quarter (April to June) of CY 2010 showing an overpayment of Php39,391,537.4945. It reflected zero- rated sales amounting to Php301,265,898.7546. On February 17, 2012, BIR RDO No. 38 received petitioner's Application for Refund/Tax Credit of Excess and Unutilized Input VAT47 for the second quarter of 2010, amounting to Php10, 304,630.58, together with BIR Form No. 191448. Claiming inaction on the part of respondent,49 on July 6, 2012, petitioner filed a Petition for Reviewso, docketed as CTA Case No. 8513, which was raffled to the CTA Third Division. 39 Records, CTA Case No. 8482, Vol. 1, p. 98. 40 Id. at 99-101. 41 Id. at 102-121. 42 Id., Reply (Re: Answer dated 26 July 2012), pp. 122- 137, with annexes. 43 Id., Vol. 1, p. 139. 44 Exhibit Folder No. 1, Exhibit "P-18," Quarterly VAT Return for the Second Quarter, pp. 1-2. 45 Id., Line 29, p. 1. 46 Id., Line 17, p. 1. 47 Exhibit Folder No. 2, Exhibit "P-1719," Administrative Claim for Refund for the Second Quarter, pp. 1-3. 48 Id., Annex, BIR Form No. 1914, p. 1. 49 Records, CTA Case No. 8482, Vol. 3, PFR, p. 2. so Id., CTA Case No. 8513, PFR, pp. 10-100, with annexes. (

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 7 of42 On July 17, 2012, the Court issued a Summons51 addressed to respondent, with an order to file an Answer. On July 20, 2012, respondent filed an Answer52, wherein he raised the following special and affirmative defenses: (1) that pursuant to Section 112(A) and (C) of the 1997 NIRC, and the ruling of the Supreme Court in Commissioner of Internal Revenue v. Aichi Forging Company of Asia, Inc., petitioner's claim for refund for the second quarter VAT input taxes have already prescribed; (2) that the judicial claim for refund was filed outside the two (2)-year prescriptive period, reckoning from the close of the taxable quarter when the sales were made; and (3) that tax refunds and tax credits are construed strictly against the taxpayer. On July 23, 2012, the Court issued a Notice of Pre-trial Conference53 scheduled on August 23, 2012. On August 3, 2012, petitioner filed a Motion for Consolidation54, stating that CTA Case No. 8482 involves the same parties and affects closely related subject matters as CTA Case No. 8513, hence, the two (2) cases must be consolidated and jointly tried in order to serve the best interests of the parties, and to expeditiously settle the issues involved. Respondent filed his Pre-trial Brief55 on August 10, 2012. Petitioner filed by registered mail its Reply (Re: Answer dated 20 July 2012)56 on August 6, 2012; and its Pre-trial Brief57 on August 22,2012. Due to the pending Motion for Consolidation, the Pre-trial Conference was reset to September 6, 2012.58 r 51 Records, CTA Case No. 8513, p. 106. 52 Id., Answer, pp. 101-105. 53 Id. at 107. 54 Id. at 109-129. 55 Id. at 130-134. 56 Id., Reply (Re: Answer dated 20 July 2012), pp. 137-147. 57 Records, CTA Case No. 8513, pp. 149-167. 58 Id. at 168.

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 8 of42 The Motion for Consolidation was granted by the Court during the hearing held on August 23, 201259. Consequently, the pre-trial conference set for that day for CTA Case Nos. 8482 and 8513 was cancelled and reset to September 6, 2012.60 These were confirmed in a Resolution61 dated September 4, 2012. Consolidated CTA Case Nos. 8482 and 8513 (First and Second Quarters of CY 2010) During the hearing on September 6, 2012, the parties manifested that they are amenable to the filing of their respective consolidated Pre-trial Briefs for CTA Case Nos. 8482 and 8513.62 They were then granted fifteen (15) days or until September 21, 2012 to file their respective consolidated Pre-trial Briefs.63 Meanwhile, pre-trial conference was reset to October 4, 2012.64 Petitioner filed, by registered mail, its Consolidated Pre-trial Brief65 on September 21, 2012; while respondent filed his Consolidated Respondent's Pre-trial Brief66 on October 1, 2012. During the hearing on October 4, 2012, the Court granted the parties a period of twenty (20) days or until October 24, 2012, to submit their Joint Stipulation of Facts and Issues ("JSFI").67 On October 24, 2012, petitioner filed a Motion for Extension6s, which was granted by the Court in a Resolution69 dated November 5, 2012. Thereafter, the parties filed their Consolidated JSFF0 on November 7,2012. On November 13, 2012, the Court issued a Pre-trial Order71 � On even date, petitioner filed an Urgent Motion (To Postpone 59 Records, CTA Case No. 8513, p. 168. 60 Id. 61 Id. at 170. 62 Records, CTA Case Nos. 8482 & 8513, Vol. 1, Minutes of Hearing dated September 6, 2012, p. 140. 63 Id. 64 Id. 6s Id., Vol. 1, pp. 145-168. 66 Id. at 142-144. 67 Records, CTA Case Nos. 8482 & 8513, Vol. 1, Minutes of Hearing dated October 4, 2012, p. 170; Records, CTA Case Nos. 8482 & 8513, Vol. 1, p. 175. 68 Records, CTA Case Nos. 8482 & 8513, Vol. 1, pp. 176-179. 69 Id. at 181. 70 Id., Vol. 1, Consolidated JSFI, pp. 186-190; the parties filed a "Joint Stipulation of Facts and Issue." 71 Id., Pre-Trial Order ("PTO"), pp. 197-205. (ll

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 9of42 Presentation of Evidence and to Set Additional Commissioner's Hearing)n, which was granted73 by the Court during the hearing on November 15, 2012. The initial presentation of evidence for petitioner was reset to December 12, 2012.74 On December 11, 2012, petitioner filed its Compliance7s, with attached Sworn Statement of its Accounting Specialist, Ms. Agnes N. Neria76 ("Ms. Neria"). Ms. Neria testified that for the first and second quarters of CY 2010, petitioner rendered services to three (3) foreign clients- MIL, JHLIC, and TMLIC- and that those services were paid for in United States ("US") Dollars remitted inwardly to its US Dollar Citibank Account; and that petitioner did not generate domestic sales of services for that period.77 Ms. Neria expalined that petitioner had unutilized input VAT for the first and second quarters of CY 2010; that Applications for Refund/Tax Credit of Input VAT was filed before RDO NO. 38 on December 6, 2011 and February 17, 2012, respectively; and that the BIR did not release any decision regarding their claims.78 During the December 12, 2012 hearing, petitioner presented Ms. Neria, who was set to be cross-examined on January 17,2013.79 On January 14, 2013, respondent filed an Urgent Motion to Reset Hearing8o, which was granted81 by the Court during the January 17, 2013 hearing. Accordingly, the scheduled cross- examination of Ms. Neria was reset to February 18,2013.82 On February 13, 2013, petitioner filed an Urgent Motion (To Postpone Presentation of Evidence)83, this was granted by the Court during the February 14, 201384 hearing. Accordingly, the February 18, 2013 and March 18, 2013 settings fixed in the Pre-trial Order in CTA 72 Records, CTA Case Nos. 8482 & 8513, Vol. 1, pp. 209-213. 73 Id., Minutes of Hearing dated November 15, 2012, p. 215. 74 Id. 7s Id., Vol. 1, pp. 229-232. 76 Records, CTA Case Nos. 8482 & 8513, Vol. 1, Sworn Statement of Ms. Agnes N. Neria (To Questions Propounded by Atty. Man;l Karen Ang G. Go), pp. 233-248; Exhibit Folder No. 2, Exhibit "P-1718," Sworn Statement of Ms. Agnes N. Neria (To Questions Propounded by Atty. Man;l Karen Ang G. Go), pp. 1-16. 77 Exhibit Folder No. 2, Exhibit "P-1718," Sworn Statement of Ms. Agnes N. Neria (To Questions Propounded by Atty. Maryl Karen Ang G. Go), pp. 1-16. 78 Id. 79 Records, CTA Case Nos. 8482 & 8513, Vol. 1, Minutes of Hearing dated December 12, 2012, p. 249. 80 Id., Vol. 1, pp. 250-254, with annex. 81 Id., Minutes of Hearing dated Januan; 17, 2013, p. 255. 82 Id. 83 Id., Vol. 1, pp. 261-264. 84 Records, CTA Case Nos. 8482 & 8513, Vol. 1, Minutes of Hearing dated Februan; 14, 2013, p. 266. ~

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 10 o�42 Case Nos. 8482 and 8513 are cancelled. The Pre-trial Conference for CTA Case No. 8560 set on February 14, 2013 was cancelled and reset to April 4, 2013, due to the parties' failure to file their respective pre- trial briefs. CTA Case No. 8560 (Third Quarter of CY 2010) On October 22, 2010, petitioner filed its Quarterly VAT Return (BIR Form No. 2550-Q)SS for the third quarter (July to September) of CY 2010 showing an overpayment of Php43,646,090.8986. Petitioner reflected zero-rated sales only amounting to Php302,356,407.1287. On May 25, 2012, RDO No. 38 received petitioner's Application for Refund/Tax Credit of Excess and Unutilized Input VAT88 dated May 22, 2012 for the refund of excess and unutilized input VAT for the third quarter of CY 2010 amounting to Php4,124,167.60. Attached thereto is BIR Form No. 191489. Alleging inaction by respondent on its claim for refund,90 petitioner filed a Petition for Review91 on October 22, 2012, docketed as CTA Case No. 8560, and was raffled to the CTA Third Division. The corresponding Summons92 was issued on November 9,2012. On November 28, 2012, respondent filed his Motion for Extension of Time to File Answer93, which was granted94 by the Court on December 4, 2012. On December 28, 2012, respondent filed an Answer95, wherein he raised the following special and affirmative defenses: (1) that petitioner's claim for tax refund or TCC is subject to the BIR's administrative investigation/ examination; (2) that taxes paid and 85 Exhibit Folder No.1, Exhibit "P-19," Quarterly VAT Return for the Third Quarter, pp. 1-2. 86 Id., Line 29, p. 1. 87 Id., Line 17, p. 1. 88 Exhibit Folder No.2, Exhibit "P-1719," Administrative Claim for Refund for the Third Quarter, pp. 1- 3. 89 Exhibit Folder No. 1, Exhibit "P-1," Administrative Claim for Refund for the Third Quarter, Annex, BIR Form No. 1914, p. 1. 90 Records, CTA Case No. 8482, Vol. 3, PFR, p. 2. 91 Id, CTA Case No. 8560, PFR, pp. 7-84, with annexes. rl n Id. at p. 85. 93 Id. at 89-90. 94 Id. at 92. 95 Id., Answer, pp. 93-97.

DECISION CTA CASE NOS. 8482,8513,8560 & 8611 Page 11 of42 collected are presumed to have been paid in accordance with law, rules and regulations, and the burden to prove otherwise is incumbent upon petitioner; (3) that petitioner must prove its entitlement to a claim for refund; and (4) that plain allegations without any evidentiary document to support petitioner's claim will not justify its application for tax refund. He also argues that a tax credit or refund, like a tax exemption, is strictly construed against the taxpayer. Meanwhile, the Court issued a Notice of Pre-trial Conference96 on January 2, 2013, setting the case for pre-trial on February 14, 2013. On January 10, 2013, petitioner filed a Motion for Consolidation97, praying that CTA Case No. 8560 be consolidated with CTA Case No. 8482, considering that the cases involve the same parties, a common question of law, and almost identical evidence. This was granted by the Court in its Resolution9s dated January 25, 2013. CTA Case No. 8611 (Fourth Quarter of CY 2010) On January 25, 2011, petitioner filed its Quarterly VAT Return99 (BIR Form No. 2550-Q) for the fourth quarter (October to December) of CY 2010 showing an overpayment of Php48,383,225.401oo. Later, on January 31, 2011, petitioner filed its Amended Quarterly VAT Returnlol (BIR Form No. 2550-Q) for the fourth quarter of CY 2010 showing an overpayment of Php44,298,194.911D2, and reporting zero- rated sales only in the total amount of Php311,871,631.5PD3� On September 17, 2012, RDO No. 38 received petitioner's Application for Refund/Tax Credit of Excess and Unutilized Input VAT1D4 dated September 11, 2012 for the refund of excess and unutilized input VAT for the fourth quarter of 2010, amounting to 96 Records, CTA Case No. 8560, p. 98. 97 Id. at99-103. 98 Id. at 106-107. 99 Exhibit Folder No.1, Exhibit "P-21," Quarterly VAT Return for the Fourth Quarter, pp. 1-2. 1oo Id., Line 29, p. 1. 1o1 Id., Exhibit "P-20," Amended Quarterly VAT Return for the Fourth Quarter, p. 1-2. 102 Id., Line 29, p. 1. 103 Id., Line 17, p. 1. 104 Id., Exhibit "P-2," Administrative Claim for Refund for the Fourth Quarter, p. 1-3. (

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 12of42 Php4,737,141.52, together with BIR Form No. 1914105 asking specifically for a tax refund. Alleging inaction by respondent on its claim for refund,l06 petitioner filed a Petition for Review107 on February 12, 2013, docketed as CTA Case No. 8611, which was raffled to the CTA Second Division. The corresponding Summonslos was issued on February 20, 2013. On March 7, 2013, respondent filed his Motion for Extension of Time to File Answer1o9, which was granted in an Orderno dated March 8, 2013. On April 5, 2013, respondent filed an Answer111 raising the following special and affirmative defenses: (1) that petitioner's claim for the issuance of a TCC is subject to administrative investigation or examination; (2) that taxes paid and collected are presumed to have been paid in accordance with law and regulations, hence, not refundable; (3) that the taxpayer must prove compliance with Sections 112, 113 and 114 of the 1997 NIRC; and (4) that petitioner should prove the legal basis for its claim. Respondent also argues that claims for refund are strictly construed against the taxpayer as the same partakes the nature of tax exemption. On April 8, 2013, the CTA Second Division issued a Notice of Pre-trial Conference112, setting the case for pre-trial on May 23, 2013. On April23, 2013, petitioner filed a Motion for Consolidation113, praying that the case be consolidated with CTA Case No. 8482, pending before the CTA Third Division, considering that the two (2) cases involve the same parties, a common question of law, and almost identical evidence to be presented. 105 Exhibit Folder No. 1, Exhibit "P-2," Administrative Claim for Refund for the Fourth Quarter, Annex, BIR Form No. 1914, p. 1. 106 Records, CTA Case No. 8482, Vol. 3, PFR, p. 2. 107 Id., CTA Case No. 8611, PFR, pp. 8-92, with annexes. ( 1os Id. at 93. 109 Id. at 94-95. 11o Id. at 97. m Id., Answer, pp. 98-100. 112 Records, CTA Case No. 8611, p. 101. 113 Id. at 102-112, with annex.

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 13of42 On May 16, 2013, petitioner filed its Urgent Motion (To Postpone Pre-trial Conference)114. On May 17, 2013, the CTA Second Division promulgated a Resolution115 granting the Motion for Consolidation and cancelling the pre-trial conference set on May 23,2013. Consolidated CTA Case Nos. 8482, 8513, 8560 and 8611 (First, Second, Third, and Fourth Quarters of CY 2010) On April 2, 2013, in view of Administrative Circular No. 01-2013 dated March 26, 2013, the Court issued an Order116 cancelling the pre- trial conference scheduled on April4, 2013 and resetting the same to May 9, 2013. On May 4, 2013, petitioner filed its Pre-trial Brie�117; while Respondent's Pre-trial Brief118 was filed on May 8, 2013. During the hearing on May 9, 2013, counsel for petitioner manifested that they filed a Motion to Consolidate CTA Case No. 8611 pending before the CTA Second Division with CTA Case Nos. 8482, 8513 and 8560; there being no objection from counsel for respondent, the Court was constrained to cancel the hearing and reset the pre-trial for CTA Case No. 8560 to June 27, 2013.119 The parties were then ordered to submit their respective consolidated pre-trial briefs to include CTA Case No. 8611_120 On June 5, 2013, the CTA Third Division promulgated a Resolution121 confirming the consolidation of CTA Case No. 8611 with CTA Case No. 8482. The consolidated cases were set for pre-trial conference on June 27, 2013.122 ( 114 Records, CTA Case No. 8611, pp. 159-162. ns Id. at 158. 116 Id., CTA Case Nos. 8482, 8513 & 8560, Vol. 1, p. 270. 117 Id. at 278-292. 11s Id. at 293-294. 119 Id., Minutes of Hearing dated May 9, 2013, p. 295. 120 Id. 121 Id., Vol. 1, p. 339. 122 Id.

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 14of42 On June 21, 2013, petitioner filed an Urgent Motion (To Postpone Pre-trial Conference)123; which was granted by the Court in its Order124 dated June 24, 2013 and pre-trial was reset for the last time on August 8, 2013. The presentation of evidence for petitioner set on July 8, 2013 was cancelled_125 On August 6, 2013 respondent filed his Consolidated Respondent's Pre-trial Brief126; while petitioner filed its Consolidated Pre-trial Brie�127 on August 7, 2013. During the hearing held on August 8, 2013, the Court ordered the parties to submit their JSFI, which shall include their respective lists of documentary evidence and witnesses, within a period of twenty (20) days or until August 28, 2013.128 On August 27, 2013, petitioner filed a Motion for Extension129, praying for an additional period of ten (10) days from August 28, 2013 or until September 7, 2013 to submit the Consolidated JSFI. The Court granted the Motion for Extension in its Order13o dated August 28,2013. On September 9, 2013, the parties filed their Consolidated JSFI131. On September 10, 2013, petitioner filed an Urgent Motion (To Postpone Presentation of Evidence and to Set Additional Commissioner's Hearing)132 ("Urgent Motion to Postpone"), and a Motion to Commission an Independent Certified Public Accountant133 ("ICPA"). I 123 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 1, pp. 340-343. 124 Id. at 344. 12s Id. at 347. 126 Id. at 353-355. 127 Id. at 356-381. 128 Id., Vol. 2, Minutes of hearing dated August 8, 2013, p. 1077. 129 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 3, pp. 1084-1088. 130 Id. at 1089. 131 Id., Consolidated JSFI, pp. 1095-1101. 132 Id., Vol. 3, pp. 1102-1106. 133 Id. at 1108-1123, with annex.

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 15 of42 On September 11, 2013, the Court issued an Order134 granting the Urgent Motion to Postpone and setting the commissioning of the ICPA on September 16,2013. The Court issued a Pre-trial Order135 on September 13, 2013. On September 16, 2013, the Court commissioned Ms. Katherine 0. Constantino ("Ms. Constantino") as the ICPA, who then took her oath and undertook to submit the ICPA Report within thirty (30) days or until October 16, 2013.136 On October 16, 2013, petitioner filed an Urgent Motion (For Extension to File Consolidated Independent Certified Public Accountant's Report)137, which was granted138 by the Court. On even date, Ms. Constantino submitted the ICPA Report139 together with the annexes pertinent to petitioner's claim. Due to the suspension of work in the Court, the initial presentation of evidence for petitioner scheduled on October 14, 2013 was reset to November 11, 2013.140 On October 31, 2013, petitioner filed an Urgent Motion (For Extension to File Consolidated Independent Certified Public Accountant's Report)141; and the same was granted by the Court in its Resolution142 dated November 7, 2013. On November 11, 2013, Ms. Constantino submitted to the Court the Amended ICPA Report143; and petitioner filed another Urgent 134 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 3, p. 1124. 135 Id., PTO, pp. 1127-1137. 136 Id., Vol. 3, Minutes of Hearing dated September 16, 2013, pp. 1138-1139. 137 Id., Vol. 3, pp. 1154-1158. 138 Id. at 1337. 139 Id., ICPA Report on the Results of the Procedures Performed Relative to the Claim for Refund/fax Credit Representing Excess Input Value Added Tax (VAT) for the Period JanuanJ 2, 2010 to December 31, 2010 ("ICPA Report"), pp. 1160-1336. 140 Id., Vol. 3, p. 1339. 141 Id. at 1340-1344. 142 Id. at 1446-1447. 143 Id., Exhibit "P-60," Amended ICPA Report on the Results of the Procedures Performed Relative to the Claim for Refund/fax Credit Representing Excess Input Value Added Tax (VAT) for the Period January 2, 2010 to December 31, 2010, pp. 1449-1712; Box of Evidence 1, Exhibit "P-60," Amended ICPA Report on the Results of the Procedures Performed Relative to the Claim for Refund/Tax Credit Representing Excess r Input Value Added Tax (VAT) for the Period JanuanJ 2, 2010 to December 31, 2010, pp. 1-28, with annexes.

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 16of42 Motion (To Postpone Presentation of Petitioner's Evidence)144. The initial presentation of evidence for petitioner was reset to December 2, 2013145. During the December 2, 2013 hearing, petitioner presented Ms. Neria and Ms. Constantino_146 Ms. Neria testified, via her Supplemental Sworn Statement147, that the case involves petitioner's claim for refund by way of issuance of a TCC for unutilized input VAT for the first to fourth quarters of 2010; and that the claim is based on the excess and unutilized input VAT incurred by petitioner in CY 2010. She also testified that petitioner is an ROHQ and as such, it is only allowed to render qualifying support services to affiliates, subsidiaries or branches; that petitioner's zero-rated sale of services were rendered to its non- registered foreign clients doing business outside the Philippines; and that those services were paid for in US Dollars remitted inwardly to petitioner's US Dollar account. She also stated that petitioner filed an Application for Refund/Tax Credit of Input Vat for the Third and Fourth Quarters of CY 2010 on May 25, 2012 and September 17, 2012, respectively; and that no action was taken by the BIR on their application. Ms. Constantino testified via her Sworn Statement148 that she was commissioned by the Court as the ICPA for these consolidated cases; that she was tasked to verify and issue a report on the examination, evaluation and substantiation of the amount of input VAT being claimed by petitioner for the first to fourth quarters of CY 2010; and that she submitted to the Court an Amended ICPA Report containing the results of the procedures performed relative to petitioner's claim. Cross-examination of Misses Neria and Constantino, and the presentation of further evidence for petitioner were set on January 13, 144 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 3, pp. 1715-1719. ( 145 Id., Minutes of Hearing dated November 11, 2013, p. 1713. 146 Id., Vol. 4, Minutes of Hearing dated December 2, 2013, p. 2403. 147 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vols. 1 & 2, Supplemental Sworn Statement of Ms. Agnes N. Neria, pp. 495-523; Exhibit Folder No.2, Exhibit "P-1693,"Supplemental Sworn Statement of Ms. Agnes N. Neria, pp. 1-26. 148 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 4, Sworn Statement of Katherine 0. Constantino in Lieu of Direct Testimony, pp. 2378-2402; Exhibit Folder No.2, Exhibit "P-1694," Sworn Statement of Katherine 0. Constantino in Lieu of Direct Testimony, pp. 1-24.

DECISION CIA CASE NOS. 8482,8513,8560 & 8611 Page17 o�42 2014.149 However, on January 8, 2014, petitioner filed an Urgent Motion to Reset Hearing (From 13 January 2014 to 27 January 2014)150. This was denied by the Court during the hearing on January 13, 2014 and the presentation of further evidence for petitioner was deemed waived.151 Consequently, petitioner was granted a period of ten (10) days from January 13, 2014 or until January 23, 2014 to file its Formal Offer of Evidence ("FOE"), and five (5) days from January 13, 2014 or until January 18, 2014, to file a Motion for Reconsideration of the Order denying its Motion to Reset Hearing.152 Meanwhile, the initial presentation of evidence for respondent was set on February 24, 2014.153 On January 17, 2014, petitioner filed a Motion for Reconsideration [Re: Order issued on January 13, 2014 denying petitioner's "Urgent Motion to Reset Hearing (From January 23, 2014 to January 27, 2014)" ("Motion for Reconsideration") and deeming petitioner to have waived its presentation of evidence)154. Due to the pendency of the Motion for Reconsideration, the initial presentation of evidence for respondent set on February 24, 2014 was cancelled.155 On March 4, 2014, the Court denied the Motion for Reconsideration.156 Thereafter, on March 26, 2014, the Court promulgated a Resolution157 granting petitioner ten (10) days from notice to file its FOE. On April 11, 2014, petitioner filed by registered mail a Motion for Additional Time to File Formal Offer of Exhibits158; which was granted through an Order159 dated April24, 2014. On April 24, 2014, petitioner filed its FOE16o, offering Exhibits "P-1," "P-1a," "P-2," "P-2a," "P-3" to "P-15," "P-16a" to "P-16t," "P- 17a" to "P-17o," "P-18," "P-18a," "P-18b," "P-19," "P-19a," "P-19b," "P-20," "P-20a," "P-20b," "P-21," "P-21a," "P-21b," "P-22," "P-22a," "P-22b," "P-23," "P-23a," "P-23b," "P-24," "P-24a," "P-24b," "P-25," 149 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 4, Minutes of Hearing dated December 2, 2013, p. 2403 150 Id., Vol. 5, pp. 2405-2412, with annexes. / 151 Id., Minutes of Hearing dated JanuanJ 13, 2014, p. 2414. 152 Id. 153 Id. 154 Id. at 2415-2423. 155 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, p. 2432. 156 Id. at 2434-2437. 157 Id. at 2439. 158 Id. at 2440-2443. 159 Id. at 2444. 160 Id., Formal Offer of Exhibits ("FOE"), pp. 2445-2476.

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 18 of42 "P-25a," "P-25b," "P-26," "P-26a," "P-26b," "P-27," "P-27a," "P-27b," "P-28," "P-28a," "P-28b," "P-29," "P-29a," "P-29b," "P-30," "P-30a," "P-30b," "P-31," "P-31a," "P-31b," "P-32," "P-32a," "P-32b," "P-33," "P-33a," "P-33b," "P-34," "P-34a," "P-34b," "P-35," "P-35a," "P-35b," "P-38," "P-38a" to "P-38d," "P-39," "P-39a" to "P-39e," "P-40," "P- 40a," "P-41," "P-41a" to "P-41c," "P-42," "P-43," "P..,.43a" to "P-43g," "P-44," "P-44a" to "P-44e," "P-45," "P-45a" to "P-45c," "P-46," "P- 46a" to "P-46e," "P-47," "P-47a," "P-48," "P-48a," "P-49" to "P-52," "P-52a" to "P-52e," "P-53," "P-53a" to "P-53f," "P-55," "P-55a," "P- 56," "P-57," "P-57a" to "P-57c," "P-58" "P-59," "P-59a," "P-60," "P- 61" to "P-251," "P-61a" to "P-251a," "P-252" to "P-610," "P-252a" to "P-610a," "P-611" to "P-674," "P-611a" to "P-674a," "P-675" to "P- 684," "P-675a" to "P-684a," "P-685," "P-686," "P-687" to "P-720," "P- 722" to "P-739," "P-722a" to "P-739a," "P-740" to "P-945," "P-761a" to "P-945a," "P-946" to "P-1194," "P-946a" to "P-1194a," "P-1195" to "P- 1427," "P-1195a" to "P-1427a," "P-1428" to "P-1688," "P-1428a" to "P- 1688a," "P-1680b" to "P-1688b" "P-1689" to "P-1692," "P-1693," "P- 1693a," "P-1694," "P-1694a," "P-1700" ("F-1"), "P-1700a" ("F-1-a"), "P-1700b" ("F-1-b"), "P-1701" ("G-1"), "P-1701a" ("G-1-a"), "P- 1701b" (" G-1-b"), "P-1702" ("H-1"), "P-1703" ("H-1-c"), "P-1704" ("H-1-d"), "P-1705" ("H-1-e"), "P-1706" ("H-2"), "P-1707" ("H-2-c"), "P-1708" ("H-2-d"), "P-1709" ("H-2-e"), "P-1710" ("I-1-a"), "P-1710a" ("I-1-a-1"), "P-1710b" ("I-1-a-2"), "P-1711" ("I-1-b"), "P-1711a" ("I-1- b-1"), "P-1711b" ("I-1-b-2"), "P-1712" ("I-1-c"), "P-1712a" ("I-1-c-1"), "P-1712b" ("I-1-c-2"), "P-1713" ("I-2-a"), "P-1713" ("I-2-a"), "P-1713a" ("I-2-a-1"), "P-1713b" ("I-2-a-2"), "P-1714" ("I-2-b"), "P-1714a" ("I-2- b-1"), "P-1714b" ("I-2-b-2"), "P-1715b" ("J-1-b"), "P-1715c" ("J-1-c"), "P-1715d" ("J-1-d"), "P-1715e" ("J-1-e"), "P-1715f" ("J-1-f"), "P- 1715g" ("J-1-g"), "P-1715h" ("J-1-h"), "P-1715i" ("J-1-I"), "P-1715j" ("J-1-j"), "P-1715k" ("J-1-k"), "P-17151" ("J-1-1"), "P-1715m" ("J-1-m"), "P-1715n" ("J-1-n"), "P-1715o" ("J-1-o"), "P-1715p" ("J-1-p"), "P- 1715q" ("J-1-q"), "P-1715r" ("J-1-r"), "P-1715s" ("J-1-s"), "P-1715t" ("J-1-t"), "P-1715u" ("J-1-u"), "P-1715v" ("J-1-v"), "P-1715w" ("J-1- w"), "P-1715x" ("J-1-x"), "P-1716b" ("J-2-b"), "P-1716c" ("J-2-c"), "P- 1716d" ("J-2-d"), "P-1716e" ("J-2-e"), "P-1716f" ("J-2-f"), "P-1716g" ("J-2-g"), "P-1716h" ("J-2-h"), "P-1716i" ("J-2-I"), "P-1716j" ("J-2-j"), "P-1716k" ("J-2-k"), "P-17161" ("J-2-1"), "P-1716m" ("J-2-m"), "P- 1716n" ("J-2-n"), "P-1716o" ("J-2-o"), "P-1716p" ("J-2-p"), "P-1716q" ("J-2-q"), "P-1716r" ("J-2-r"), "P-1716s" ("J-2-s"), "P-1716t" ("J-2-t"), "P-1716u" ("J-2-u"), "P-1716v" ("J-2-v"), "P-1718" ("0-1"), "P-1718a" (" 0-1-a"), "P-1719" ("F-2"), "P-1719a" ("F-2-a"), "P-1719b" ("F-2-b"), "P-1720" ("I-2-c"), "P-1720a" ("I-2-c-1"), "P-1720b" ("I-2-c-2"), and "P-1721," as evidence for petitioner, for their respective stated (

DECISION CTA CASE NOS. 8482,8513,8560 & 8611 Page 19 o�42 purposes, and as part of the testimonies of the witnesses presented during trial. On July 4, 2014, the Court resolved161 to admit all of petitioner's exhibits, save for the following: 1. Exhibit "P-23," for failure to correspond to the document marked; 2. Exhibits "P-28," "P-28a," "P-28b," "P-29," "P-29a," "P- 29b," "P-42," "P-61" to "P-251," "P-61a" to "P-251a," "P-252" to "P- 610," "P-252a" to "P-610a," "P-611" to "P-674," "P-611a" to "P-674a," "P-698" to "P-702," "P-715," "P-1700" ("F-1"), "P-1700a" ("F-1-a"), "P-1700b" ("F-1-b"), "P-1719" ("F-2"), "P-1719a" ("F-2-a"), "P-1719b" ("F-2-b"), and "P-1720" ("I-2-c"), for not being identified during trial; 3. Exhibits "P-1702" ("H-1") and "P-1706" ("H-2") for failure of petitioner to submit the originals for comparison; 4. Exhibits "P-12," "P-32," "P-32a," "P-32b," and "P-59a," for not being found in the records; 5. Exhibits "P-722" to "P-739," "P-722a" to "P-739a," "P-740" to "P-757," and "P-1721," for not being identified during trial and for failure of petitioner to submit the originals for comparison; and 6. Exhibits "P-1720a" ("I-2-c-1") and "P-1720b" ("I-2-c-2") for not being identified during trial and for not being found in the records. On July 25, 2014, petitioner filed, by registered mail, a Motion for Partial Reconsideration (Re: Resolution dated July 4, 2014, With Prayer for Reopening of Trial)162. On July 31, 2014, petitioner filed an Urgent Motion to Postpone (To Present Respondent's Evidence)163, which was granted by the Court in Resolution164 dated August 6, 2014. ( 161 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, pp. 2479-2481. 162 Id. at 2499-2506. 163 Id. at 2485-2497, with annexes.

DECISION CIA CASE NOS. 8482,8513,8560 & 8611 Page 20 of42 On October 1, 2014, the Court resolved to grant petitioner's Motion for Partial Reconsideration, thus allowing it to recall its witnesses, Misses Neria and Constantino.165 After petitioner's Urgent Motion to Reset Hearing (From 6 November 2014 to 8 December 2014)166 was granted167, petitioner filed a Motion to Recall a Witness168 on February 27, 2015, praying that it be allowed to recall witness Ms. Lourdes Rosario V. Mantaring ("Ms. Mantaring") and to submit a Supplemental FOE. On March 4, 2015, petitioner filed its Compliance169, with attached Supplemental Sworn Statement of Ms. Agnes N. Neria (To Questions Propounded by Atty. Juan Miguel D. Tuason)170 and Supplemental Sworn Statement of Katherine 0. Constantino in Lieu of Direct Testimonyln. On March 9, 2015, petitioner presented its recalled witnesses, Misses Neria and Constantino.172 Meanwhile, its Motion to Recall Witness was granted173, thus, Ms. Mantaring was presented as a witness on May 25, 2015_174 In her testimony via Sworn Statement of Ms. Lourdes Rosario V. Mantaring17s, Ms. Mantaring stated that she is the Vice President and General Manager of petitioner since July 2011; that petitioner is an ROHQ and it is licensed to engage in the business of providing qualifying services to its affiliates and related parties in the Asia- Pacific and in other markets; and that in 2010, petitioner rendered 164 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, p. 2508. 165 Id. at 2511-2514. 166 Id. at 2515-2519. 167 Id. at 2521. 168 Id. at 2536-2539. 169 Id. at 2542-2544. 170 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, Exhibit "P-1722," Supplemental Sworn Statement ofMs. Agnes N. Neria (To Questions Propounded by Atty. Juan Miguel D. Tuason), pp. 2545- 2551. 171 Id., Exhibit "P-1723," Supplemental Sworn Statement of Katherine 0. Constantino in Lieu of Direct Testimony, pp. 2552-2556. 172 Id., Minutes of Hearing dated March 9, 2015, p. 2508. 173 Id., Vol. 5, pp. 2574-2575. 174 Id., Minutes of Hearing dated May 25, 2015, p. 2580. 175 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 1, Sworn Statement of Ms. Lourdes Rosario V. Mantaring, pp. 384-402; Exhibit Folder No. 2, Exhibit "P-1721," Sworn Statement of Ms. Lourdes Rosario V. Mantaring, pp. 1-18. (

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 21 of42 services to five (5) non-resident foreign corporations doing business outside the Philippines. Ms. Mantaring explained that petitioner has a long-standing standard procedure in providing its services to its foreign affiliates; that the foreign client engages petitioner for it to handle the clients' business processes; that petitioner and the foreign client will execute two (2) agreements, the Master Services Agreement ("MSA") and the Service Level Agreement ("SLA"); that there are instances when more than one SLA will be executed depending on the business process transitioned to petitioner; and that there are currently four (4) SAs entered into by petitioner, i.e., with MIL, with JHLIC, with TMLIC and with MIB. She explained further that petitioner bills its clients monthly, based on the number of days that a project team worked on a particular project. On May 29, 2015, petitioner filed a Supplemental Formal Offer of Evidence176, offering Exhibits "P-1722," "P-1722a," "P-1723," "P- 1723a," "P-23," "P-28," "P-29," "P-29a," "P-29b," "P-32," "P-32a," "P- 32b," "P-59," "P-59a," "P-61" to "P-251," "P-61a" to "P-251a," "P-252" to "P-610," "P-252a" to "P-610a," "P-611" to "P-674," "P-611a" to "P- 674a," "P-698" to "P-720," "P-722" to "P-739," "P-722a" to "P-739a," "P-740" to "P-791," "P-1700" ("F-1"), "P-1719" ("F-2"), "P-1720" ("1-2- c"), "P-1720a" ("1-2-c-1"), "P-1720b" ("1-2-c-2") and "P-1721," as evidence for petitioner, for their respective stated purposes, and as part of the testimonies of the witnesses presented during trial. On July 6, 2015, the Court resolved177to admit all of petitioner's exhibits, save for Exhibits "P-32" and "P-32a" for failure to present the originals for comparison; Exhibit "P-32b"for failure to present the original and for failure to correspond with the description in the Supplemental FOE; Exhibit "P-59a," for failure to submit the duly marked exhibit; and Exhibits "P-64a," "P-141a," "P-145a," "P-182a," "P-227a" "P-239a" "P-596a" "P-597a" "P-629a" to "P-631a" "P-'IIII 670a," "P-673a," "P-724a," "P-727a," "P-737a," and "P-738a," for not being found in the records. On July 6, 2015, counsel for petitioner manifested that he just received the Resolution dated July 6, 2015, considering that some exhibits were denied, he moved for time to file a motion for .,1 I 176 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, p. 2581-2591. 177 Id. at 2643-2644.

DECISION CTA CASE NOS. 8482,8513,8560 & 8611 Page 22of42 reconsideration, thus, the Court gave him five (5) days to file the same.178 Meanwhile, the initial presentation of evidence for respondent was reset to September 7, 2015_179 On July 13, 2015, petitioner filed, by registered mail, its Motion (For Reconsideration and to Reopen Trial for Reception of Additional Evidence)18o. The Court resolved to grant181 the Motion for Reception of Additional Evidence on September 2, 2015, and a commissioner's hearing was set on September 22, 2015. Meanwhile, the initial presentation of evidence for respondent set on September 7, 2015 was cancelled and reset.182 On September 8, 2015, petitioner filed another Supplemental Formal Offer of Evidence183 for Exhibit "P-32-b;" which was denied184 by the Court on December 8, 2015. In the same Resolution, petitioner's Motion for Reconsideration was likewise denied_185 On December 18, 2015, petitioner filed a Motion (To Admit Marked Exhibits and Supplemental Formal Offer of Exhibits)186. This was partially granted by the Court in a Resolution187 dated February 24, 2016, admitting Exhibits "P-32," "P-32a," "P-32b," "P-64a," "P- 227," "P-227a," "P-239a," "P-596a," "P-597a," "P-670," "P-670a," "P- 727a," and "P-737a," and denying Exhibit "P-141a" for not being found in the records. During the March 7, 2016 hearing, counsel for respondent manifested that there is no report yet from the BIR examiners; hence, the initial presentation of evidence for respondent was reset to May 30, 2016.188 On May 30, 2016, counsel for respondent made a manifestation that he has no evidence to present; thus, the parties were granted 178 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, Minutes of Hearing dated July 6, 2015, p. 2645. 179 Id. 180 Id. at 2668-2683, with annexes. r/ 181 Id. at 2887-2889. 182 Id. at 2887-2889. 183 Id. at 2690-2695. 184 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, pp. 2708-2709. 185 Id. 186 Id. at 2710-2719. 187 Id. at 2748-2750. 188 Id., Minutes of Hearing dated March 7, 2016, p. 2751.

DECISION CTA CASE NOS. 8482,8513,8560 & 8611 Page 23 o�42 thirty (30) days or until June 29, 2016, to submit their respective memoranda.189 With the filing of petitioner's Memorandum19o on June 28, 2016, and the issuance of two (2) Records Verification Reports191 stating that respondent failed to file his Memorandum, the Court resolved192 to submit the instant consolidated cases for decision; hence this Decision. The Issue193 WHETHER PETITIONER IS ENTITLED TO ITS CLAIM FOR A REFUND OR ISSUANCE OF A TCC FOR ITS UNUTILIZED OR EXCESS INPUT VAT PAYMENTS FOR THE FIRST TO FOURTH QUARTERS OF 2010. Petitioner's Arguments194 Petitioner contends that as a duly registered ROHQ, it performs qualifying services to its affiliates, subsidiaries, or branches in the Asia-Pacific Region and in other foreign markets; and that as an ROHQ, it is engaged in transactions subject to VAT zero-rating. Petitioner asserts that its clients are entities duly organized and registered abroad; that it has submitted evidence to prove that the services it rendered, while performed in the Philippines, were for the exclusive benefit of its clients which are non-resident foreign corporations not doing business in the Philippines; that the services rendered to its non-resident foreign corporations are pursuant to SAs entered into with them on various dates; and that its clients pay in US Dollars that are inwardly remitted to petitioner's account. Respondent's Counter-Arguments19S 189 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, Minutes of Hearing dated May 30, 2016, p. 2752. 190 Id., Memorandum, pp. 2758-2777. 191 Id., Vol. 5, pp. 2778-2779. 192 Id. at 2781. I 193 Id., Vol. 3, PTO, p. 1130. 194 Id., Vol. 5, Memorandum, pp. 2767-2775. 195 Records, CTA Case No. 8482, Answer, p. 95; Records, CTA Case No. 8513, Answer, pp. 102-104; Records, CTA Case No. 8560, Answer, pp. 93-96; Records, CTA Case No. 8611, Answer, pp. 98-99.

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 24of42 Anent petitioner's claim for refund or TCC for the first quarter of CY 2010, respondent claims that petitioner failed to show that it filed an application therefor with RDO No. 38. With regard the claim for the second quarter of CY 2010, respondent avers that such has already prescribed; that the judicial claim for refund was filed outside the two (2)-year prescriptive period reckoned from the close of the taxable quarter when the sales were made, pursuant to Section 112(A) and (C) of the 1997 NIRC, and the ruling of the Supreme Court in Commissioner of Internal Revenue v. Aichi Forging Company ofAsia, Inc. Respondent also avers that petitioner's application for tax refund or TCC is subject to administrative investigation or examination by the BIR; that taxes paid and collected are presumed to have been paid in accordance with law and regulations, hence, not refundable; that it is incumbent upon the taxpayer to prove compliance with the pertinent provisions of the 1997 NIRC, particularly with Sections 112, 113 and 114; and that claims for refund are strictly construed against the taxpayer as it partakes the nature of a tax exemption. The Ruling of the Court The Court has jurisdiction over the instant consolidated cases. The Court must first determine whether it has jurisdiction over the case at bar. Anent the timeliness of filing the administrative and judicial claims for refund, Section 112(A) of the 1997 NIRC provides as follows: 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 /

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 25 of42 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. 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 Subsections (A) and (B) 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. XXX XXX xxx196 Corollary, Section 4.112-1(d) of RR No. 16-2005197 states the following: Sec. 4.112-1. Claims for Refund/Tax Credit Certificate of Input Tax. XXX XXX XXX 196 Underscoring ours. 197 Consolidated Value-Added Tax Regulations of2005, effective November 1, 2005. (

DECISION CTA CASE NOS. 8482,8513,8560 & 8611 Page 26 o�42 (d) Period within which refund or tax credit certificate/refund ofinput taxes shall be made In proper cases, the Commissioner of Internal Revenue shall grant a tax credit certificate/refund 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 subparagraph (a) above. In case of full or partial denial of the claim for tax credit certificate/ refund as decided by the Commissioner of Internal Revenue, the taxpayer may appeal to the Court of Tax Appeals (CTA) within thirty (30) days from the receipt of said denial, otherwise the decision shall become final. However, if no action on the claim for tax credit certificate/refund has been taken by the Commissioner of Internal Revenue after the one hundred twenty (120) day period from the date of submission of the application with complete documents, the taxpayer may appeal to the CTA within 30 days from the lapse of the 120-day period.198 Based on Section 112(A) of the 1997 NIRC, petitioner had two (2) years from the close of the taxable quarters when the sales were made to file its administrative claims. Further, Section 112(C) of the 1997 NIRC, in relation to RR No. 16-2005, grants petitioner one hundred twenty (120) days, from the date of submission of the complete documents in support of the administrative claim for refund, to file its judicial claim with the CTA. Applying the foregoing, the Court arrived at the following table: QTR. END OF ADMIN CLAIM ADMIN CLAIM END OF 120 DAYS JUDICIAL CLAIM JUDICIAL CLAIM TAXABLE QTR. DUE DATE FILED DUE DATE FILED First March 31, 2010 April4, 2012 May4,2012 Second March 31, 2012 December 6, 2011199 June 16, 2012 Julyl6, 2012 April30, 2012200 Third June 30,2010 June 30, 2012 February17, 2012201 September 22, 2012 July 6, 2012202 Fourth September30,2010 September30,2012 January 15, 2013 October 22, 2012 October 22, 2012204 December 31, 2010 December 31, 2012 May 25, 20122o3 February 14, 2013 February 12, 20132o6 September 17, 20122os 198 Underscoring ours. 199 Exhibit Folder No.2, Exhibit "P-1700," Administrative Claim for Refund for the First Quarter, pp. 1- 3. 200 Records, CTA Case No. 8482, Vol. 1, PFR, pp. 6-87, with annexes. 201 Exhibit Folder No.2, Exhibit "P-1719," Administrative Claim for Refund for the Second Quarter, pp. 1-3. 202 Records, CTA Case No. 8513, PFR, pp. 10-100, with annexes. 203 Exhibit Folder No.2, Exhibit "P-1719," Administrative Claim for Refund for the Third Quarter, pp. 1- 3. 204 Records, CTA Case No. 8560, PFR, pp. 7-84, with annexes. 205 Exhibit Folder No. 1, Exhibit "P-2," Administrative Claim for Refund for the Fourth Quarter, p. 1-3. 206 Records, CTA Case No. 8611, PFR, pp. 8-92, with annexes. I

DECISION CTA CASE NOS. 8482,8513,8560 & 8611 Page 27 of42 There is no merit to respondent's claim that petitioner failed to show that it filed an application for tax refund or TCC with RDO No. 38 for the first quarter of CY 2010. Based on the records, petitioner submitted Exhibit "P-1700," which clearly bears the stamp "Received" by BIR RDO No. 38, with the date December 6, 2011 and a counter- signature under the name of a certain"Aileen Alban." Respondent also posits that the claim for the second quarter of CY 2010 has already prescribed, and that the judicial claim for refund was filed outside the two (2)-year prescriptive period reckoned from the close of the taxable quarter when the sales were made. The Court does not agree. In the recent case of Silicon Philippines, Inc. (Formerly Intel Philippines Manufacturing, Inc.) v. Commissioner of Internal Revenue207, the Supreme Court ruled that:zos Upon the filing of an administrative claim, respondent is given a period of 120 days within which to (1) grant a refund or issue the tax credit certificate for creditable input taxes, or (2) make a full or partial denial of the claim for a tax refund or tax credit. Failure on the part of respondent to act on the application within the 120-day period shall be deemed a denial. Note that the 120-day period begins to run from the date of submission of complete documents supporting the administrative claim. If there is no evidence showing that the taxpayer was required to submit - or actually submitted - additional documents after the filing of the administrative claim, it is presumed that the complete documents accompanied the claim when it was filed.209 In the instant case, petitioner had until March 31, 2012, June 30, 2012, September 30, 2012 and December 31, 2012, respectively, within which to file its administrative claims for all the quarters of CY 2010. Therefore, its Applications for Tax Credits/Refunds with the BIR were timely filed on December 6, 2011, February 17, 2012, May 25, 2012, and September 17, 2012, respectively. ( 207 G.R. No. 182737, March 2, 2016. 20s Underscoring ours. 209 Underscoring ours.

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 28 of42 Anent the timeliness of the judicial claim for refund, records disclose that the BIR did nothing after petitioner filed its application for tax refund or TCC. This was also attested to by Ms. Neria in her sworn statement. In Rohm Apollo Semiconductor Philippines v. Commissioner of Internal Revenue210, the Supreme Court reminded taxpayers that when the one hundred twenty (120)-day period lapses and there is inaction on the part of the CIR, they must no longer wait for it to come up with a decision thereafter. The CIR's inaction is the decision itself. It is already a denial of the refund claim. Thus, the taxpayer must file an appeal within thirty (30) days from the lapse of the one hundred twenty (120)-day waiting period, this period is mandatory and jurisdictional. As enunciated by the Supreme Court in Commissioner of Internal Revenue v. San Roque Power Corporation, et al.211, strict compliance with the mandatory 120+30-day period is necessary for a claim for tax refund or credit. As can be seen from the table above, petitioner had until May 4, 2012, July 16, 2012, October 22, 2012, and February 14, 2013 within which to file its judicial claims for refund. Records show that the instant Petitions for Review were filed on April30, 2012, July 6, 2012, October 22, 2012 and February 12, 2013, well within the periods provided by law. Finding that both the administrative and judicial claims for refund were filed on time, the Court has jurisdiction over the consolidated cases. Petitioner is entitled to the claim for refund, albeit at a reduced amount. In the application of the foregoing legal provisions, certain requisites have been jurisprudentially developed which a taxpayer- applicant must comply with to successfully obtain a credit or a refund of excess input VAT. The said requisites are: 21o G.R. No. 168950, January 14, 2015. 211 G.R. Nos. 187485, 196113, and 197156, October 8, 2013,690 SCRA 336. r

DECISION CTA CASE NOS. 8482,8513,8560 & 8611 Page 29 o�42 1. the claim is filed with the CIR within two (2) years after the close of the taxable quarter when the sales were made;212 2. in case of full or partial denial of the refund claim, or the failure on the part of the CIR to act on the said claim within a period of 120 days, the judicial claim has been filed with the Court, within thirty (30) days from receipt of the decision or after the expiration of the said one hundred and twenty (120)-day period;213 3. the taxpayer is VAT-registered;214 4. the taxpayer is engaged in zero-rated or effectively zero- rated sales;215 5. for zero-rated sales under Sections 106(A)(2)(a)(l), (2) and (b), and 108(B)(l) and (2), the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with BSP rules and regulations;216 6. the input taxes are due or paid;217 7. the input taxes are not transitional input taxes;218 8. the input taxes claimed are attributable to zero-rated or effectively zero-rated sales;219 9. where there are both zero-rated or effectively zero-rated sales and taxable or exempt sales, and the input taxes cannot be 212 Intel Technology Philippines, Inc. v. Commissioner of Internal Revenue, G.R. No. 166732, April 27, 2007, 522 SCRA 657; San Roque Power Corporation v. Commissioner of Internal Revenue, G.R. No. 180345, November 25, 2009, 605 SCRA 536; AT&T Communications Services Philippines, Inc. v. Commissioner of Internal Revenue, G.R. No. 182364, August 3, 2010, 626 SCRA 567. 213 Rohm Apollo Semiconductor Philippines v. Commissioner of Internal Revenue, G.R. No. 168950, January 14, 2015. 214 Supra note 212. ~ mw 216 Id. 217 Id. 21s Id. 219 Id.

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 30of42 directly and entirely attributable to any of these sales, the input taxes shall be proportionately allocated on the basis of sales volume;zzo and 10. the input taxes have not been applied against output taxes during and in the succeeding quarters.22l As discussed above, petitioner was able to prove compliance with the first and second requisites. Petitioner also complied with the third requisite by presenting its Certificate of Registration222 issued by the B1R with Taxpayer's Identification No. 244-027-271-000, indicating that it is subject to VAT. The fourth and fifth requisites require that the taxpayer is engaged in zero-rated or effectively zero-rated sales. Under Sections 106(A)(2)(a)(l) and (2), 106(B) and lOB(B)(l) and (2) of the 1997 NIRC, as amended by RA No. 9337, zero-rated sales transactions should be made in acceptable foreign currency exchange and duly accounted for in accordance with BSP rules and regulations. In its Quarterly VAT Returns for CY 2010, petitioner reflected a total amount of Php1,191,665,714.74 zero-rated sales/receipts, broken down as follows: EXHIBIT PERIOD COVERED ZERO-RATED (2010) P-1701 SALES/RECEIPTS P-18 FirstQuarter P-19 Second Quarter Php 276)72,047.361 P-34 Third Quarter _!_OT ~_1_ Fourth Quarter 301,265,898,.75 ____ _ __ 302,356A07.12 311,871,361.51 I PHP __1,191,665,?14.74 Petitioner alleges that the above-stated zero-rated sales or receipts pertains to its sales of services to its foreign affiliates who are all engaged in business conducted outside the Philippines, and which services were paid for in US Dollars inwardly remitted to the Philippines and accounted for in accordance with the rules and 220 Supra note 212. ( 221 Id. 222 Exhibit Folder No.1, Exhibit "P-39," p. 1.

DECISION CTA CASE NOS. 8482, 8513,8560 & 8611 Page 31 of42 regulations of the BSP; hence, qualify for VAT zero-rating under Section 108(B)(2)223 of the 1997 NIRC. The Court refers to the case of Commissioner of Internal Revenue v. Burmeister and Wain Scandinavian Contractor Mindanao, Inc.224, which provides that in order for the supply of services to be VAT zero-rated under Section 108(B)(2) of the 1997 NIRC, as amended by RA No. 9337, the following requisites must be met: 1. the services by a VAT-registered person must be other than processing, manufacturing or repacking of goods; 2. the payment for such services must be in acceptable foreign currency accounted for in accordance with the BSP rules and regulations; and 3. the recipient of such services is doing business outside the Philippines. Based on the records, petitioner is a multinational company organized and existing under the laws of Barbados and had established an ROHQ in the Philippines, as evidenced by SEC Certificate of Registration225 and License No. FS200603505226. Pursuant to the SAs227 entered into between petitioner and its clients, petitioner provides its clients with administrative and BPO services, information technology, reports and support services and other services including but not limited to, business processing, data processing, data entry, data imaging and call center services. These services clearly fall within the scope of "services other than 223 "SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties. - XXX XXX XXX (B) Transactions Subject to Zero Percent (0%) Rate. -The following services performed in the Philippines by VAT-registered persons shall be subject to zero percent (0%) rate: (1) xxx; (2) Services other than those mentioned in the preceding paragraph rendered to a person engaged in business conducted outside the Philippines or to a nonresident person not engaged in business who is outside the Philippines when the services are performed, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP)." 224 G.R. No. 153205, January 22, 2007, 512 SCRA 124. 225 Exhibit Folder No. 1, Exhibit "P-38," p. 1. 226 Id., Exhibit "P-38-a," p. 1. r 227 Id., Exhibits "P-43," "P-44," "P-45," "P-46," & "P-52,"pp.1-11, 1-15,1,1-14,1-16.

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 32of42 processing, manufacturing or repacking of goods," thus proving that petitioner complied with the first requisite. Anent the second requisite, Sections 113(A)(2), (B)(l), (2)(c) and (3) of the 1997 NIRC, as implemented by Sections 4.113-1(A)(2), (B)(l) and (2)(c) of RR No. 16-2005, provides that a VAT taxpayer shall, for every lease of goods or properties and for every sale, barter or exchange of services, issue a VAT official receipt which must contain the following information: Sections 113(A)(2), (B)(l), (2)(c) and (3) of the 1997 NIRC SEC. 113. Invoicing and Accounting Requirements for VAT- Registered Persons. - (A) Invoicing Requirements. - A VAT-registered person shall issue: XXX XXX XXX (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. (B) Information Contained in the VAT Invoice or VAT Official Receipt. - The following information shall be indicated in the VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT- registered person, followed by his Taxpayer's Identification Number (TIN); (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value- added tax: Provided, That: XXX XXX XXX (c) If the sale is subject to zero percent (0%) value-added tax, the term 'zero-rated sale' shall be written (

DECISION CTA CASE NOS. 8482,8513,8560 & 8611 Page33 of42 or printed prominently on the invoice or receipt; XXX XXX XXX (3)The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; and Sections 4.113-1(A)(2), (B)(l) and (2)(c) ofRR No. 16-2005 SECTION 4.113-1. Invoicing Requirements.- (A) A VAT-registered person shall issue:- XXX XXX XXX (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. Only VAT-registered persons are required to print their TIN followed by the word 'VAT' in their invoice or official receipts. Said documents shall be considered as a 'VAT Invoice' or VAT official receipt. All purchases covered by invoices/receipts other than VAT invoice/VAT Official Receipt shall not give rise to any input tax. VAT invoice/ official receipt shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of his accounting records. (B) Information contained in VAT invoice or VAT official receipt. -The following information shall be indicated in VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT- registered person, followed by his TIN; (

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 34of42 (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the VAT; Provided, That: XXX XXX XXX (c) If the sale is subject to zero percent (0%) VAT, the term 'zero- rated sale' shall be written or printed prominently on the invoice or receipt; Based on the foregoing provisions, the foreign currency remittances referred to under Section 108(B)(2) of the 1997 NIRC must likewise be supported by VAT zero-rated official receipts. To prove that it rendered services to its foreign affiliates and was paid in US Dollars duly accounted for in accordance with the rules and regulations of the BSP for the four quarters of CY 2010, petitioner presented VAT zero-rated official receipts22s, VAT zero- rated invoices229, Schedule of Sales23o, Citibank Customer's Advice - Incoming Foreign Payment231, and Schedule of Sales and Bank Credit Memo232, which were examined by the Court-commissioned ICPA, Ms. Constantino. In the Amended ICPA Report233 dated November 8, 2013, Ms. Constantino presented the monthly zero-rated sales, as follows: MONTH JHLIC MIL MLIC ELLIOT AND MIB MANULIFESG TOTAL PAGE LTD. PTE. LTD. january February Php 24,978,184.21 Php 6,732,553.79 Php 55,508,948.42 Php - Php 624,174.69 Php - Php 87,843,861.11 March 25,676,759.59 - 90,077,455.05 6,746,528.35 57,654,167.11 - 28,616,551.51 6,771,031.24 59,946,814.76 1,209,036.57 - 96,543,434.08 April 30,741,712.02 6,950,478.80 59,631,498.48 1,220,736.34 98,544,425.64 May 29,387,911.01 7,171,597.11 62,704,143.76 99,885,410.09 - 621,758.22 june 29,288,711.33 7,255,328.15 63,786,986.47 239,961.71 - 100,570,987.65 July 28,984,043.93 7,181,486.58 65,702,863.97 569,412.43 102,437,806.92 August 38,514,801.65 7,270,174.46 55,497,262.24 555,690.66 101,837,929.01 September 27,731,821.69 7,233,381.52 62,577,689.36 October 29,063,093.33 7,448,289.70 65,426,221.21 - 544,323.07 98,087,215.64 November 29,030,625.80 7,515,236.75 65,912,723.30 533,929.67 - 102,471,533.90 535,736.11 - 102,994,321.96 December 30,485,628.64 7,714,573.41 68,029,746.28 540,523.52 7,827.99 106,778,299.84 228 Boxes of Evidence 1 and 2, Exhibits "P-722," to "P-1688." 229 Id., Exhibits "P-722-A," to "P-1688-B." 230 Exhibit Folder No.1, Exhibits "P-10" to "P-15," pp. 1-18. 231 Exhibit Folder No.1, Exhibits "P16-a" to "P-17-o," pp. 1-35; Exhibit Folder No.2, Exhibits "P-1715- b" to "P-1716-v," pp. 1-44, 232 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, "P-1720," p. 2637; Exhibit Folder No.2, Exhibits "P-1710" to "P-1714," "P-1720" pp. 1-5, 1. 233 Box of Evidence 1, Exhibit "P-60," Amended ICPA Report on the Results of the Procedures Performed Relative to the Claim for Refund/fax Credit Representing Excess Input Value Added Tax (VAT) for the Period Januan; 2, 2010 to December 31, 2010, Annex 3. r

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page35 of42 TOTAL I PHP 352,499,844.71 I PHP 85,990,659.85 I PHP 742,379,065.34 I PHP 1,209,036.57 I PHP 5,986,246.43 PHP 7,827.99 PHP 1,188,072,680.89 Less: Zero-rated Sales per VAT Return Php 276,172,047.36 Php 1,191,665,714.74 1st Quarter (Exhibit "P-1701") 301,265,898.75 PHP (3,593,033.85) 2nd Quarter (Exhibit "P-18") 302,356,407.12 3rd Quarter (Exhibit "P-19") 311,871,361.51 4th Quarter (Exhibit "P-34") DIFFERENCE Petitioner alleges that the reason for the variance of the amount per schedule and per VAT returns is the different foreign exchange rates used.234 In this connection, the Court will use the amount of Php1,188,072,680.89 as the reference for zero-rated sales. The Court agrees with the findings of the ICPA that zero-rated sales amounting to Php15,028,541.19 (Php5,930,234.31 plus Php9,098,306.88) should be disallowed for not being properly supported with official receipts, broken down as follows: DETAILS AMOUNTS Zero-rated sales/receipts properly supported ORs 1st Quarter ("P-60," Annex 135) Php 272,853,594.85 292,607,070.35 2nd Quarter ("P-60," Annex 136) 298,324,217.18 309,259,257.33 3rd Quarter ("P-60," Annex 137) 4th Quarter ("P-60," Annex 138) Php 1,173,044,139.71 Zero-rated sales/receipts supported by ORs in the name of the Customer's Department 1st Quarter ("P-60," Annex 139) Php 1,209,03657 1,364,893.94 2nd Quarter ("P-60," Annex 140) 826,174.66 3rd Quarter ("P-60," Annex 141) 2,530,129.14 Php 4th Quarter ("P-60," Annex 142) 5,930,234.31 Zero-rated sales/ receipts without supporting documents 1st Quarter ("P-60," Annex 143) Php 402,118.82 5,028,859.10 2nd Quarter ("P-60," Annex 144) 3,212,559.72 3rd Quarter ("P-60," Annex 145) 454,769.24 4th Quarter ("P-60," Annex 146) Php 9,098,306.88 I PHP 1,188,072,680.89 TOTAL ---- --- From the summary of zero-rated sales23s, it can be seen that for the period January to December 2010, petitioner serviced six (6) customers which are allegedly non-resident foreign companies doing business outside the Philippines. To comply with the third requisite, a "non-resident foreign corporation doing business outside the Philippines" for the purpose of proving zero-rated sales in a claim for refund of input VAT, each entity must be supported, at the very least, by both (1) SEC Certificate 234 Box of Evidence 1, Exhibit "P-60," Amended !CPA Report on the Results of the Procedures Performed Relative to the Claim for Refund/Tax Credit Representing Excess Input Value Added Tax (VAT) for the Period Januan; 2, 2010 to December 31, 2010, Exhibit "P-60," par. 4., p. 7, 235 Id., Annex 3, pp. 1-5. r

DECISION CTA CASE NOS. 8482,8513,8560 & 8611 Page36of42 of Non-Registration of Corporation/Partnership, and (2) Certificate/ Articles of Foreign Incorporation/Association/Registration. A perusal of the documents presented reveals that petitioner presented both documents for JHLIC and MIL only, viz.: ENTITY SEC CERTIFICATE ARTICLES OF ! OF NON-REGISTRATION JHLIC INCORPORATION MIL P-48 TMLIC P-47 P-56 Elliot and Page Limited None MIB None P-55 Manulife Singapore Pte. Ltd. P-51 P-59 None None None None From the aforementioned, only sales from JHLIC and MIL are considered zero-rated amounting to Php435,358,091.85 (See Annex 1 for details). However, this amount is further reduced to Php397,157,889.80 because there were out-of-period sales amounting to Php38,200,202.05 incurred in the fourth quarter of the claim period, broken down as follows: EXHIBIT CUSTOMER OR OR DATE AMOUNT NUMBER P-1434 Manulife International Ltd 1/31/11 Php 2,050,711.68 P-1435 Manulife International Ltd 01988 1/31/11 PHP 4,090,387.02 P-1436 Manulife International Ltd 01989 1/31/11 1,573,474.70 P-1650 John Hancock Life Insurance Company 01990 1/31/11 P-1651 John Hancock Life Insurance Company 02017 1/31/11 222,088.14 P-1652 John Hancock Life Insurance Company 02018 1/31/11 268,373.74 P-1653 John Hancock Life Insurance Company 02024 1/31/11 116,861.90 P-1654 John Hancock Life Insurance Company 02025 1/31/11 642,232.08 P-1655 John Hancock Life Insurance Company 02031 1/31/11 1,657,258.32 P-1656 John Hancock Life Insurance Company 02032 1/31/11 11,131,569.71 P-1657 John Hancock Life Insurance Company 02033 1/31/11 726,070.18 P-1658 John Hancock Life Insurance Company 02034 1/31/11 105,518.86 P-1659 John Hancock Life Insurance Company 02035 1/31/11 1,091,067.10 P-1660 John Hancock Life Insurance Company 02036 1/31/11 537,643.38 P-1661 John Hancock Life Insurance Company 02037 1/31/11 1,362,263.86 P-1662 John Hancock Life Insurance Company 02038 1/31/11 668,050.05 P-1663 John Hancock Life Insurance Company 02039 1/31/11 390,419.89 P-1664 John Hancock Life Insurance Company 02040 1/31/11 795,345.90 P-1665 John Hancock Life Insurance Company 02046 1/31/11 320,043.07 P-1666 John Hancock Life Insurance Company 02047 1/31/11 260,279.92 ! P-1667 John Hancock Life Insurance Company 02051 1/31/11 818,168.18 P-1668 John Hancock Life Insurance Company 02058 1/31/11 173,996.68 I P-1669 John Hancock Life Insurance Company 02059 1/31/11 569,800.29 P-1670/P-1671 John Hancock Life Insurance Company 02064 1/31/11 766,222.92 P-1672 to P-1674 John Hancock Life Insurance Company 02015/02016 1/31/11 1,250,398.59 P-1675/P-1676 John Hancock Life Insurance Co. 02026to 02028 1/31/11 4,996,557.74 TOTAL 02029/02030 1,615,398.15 38,200,202.05 Consequently, only the portion of the input VAT claim attributable to the substantiated zero-receipts will be considered for refund using the following rate: (

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page37 of42 VALID ZERO- DECLARED ZERO- RATE I CY2010 RATED SALES RATED SALES {A/BX100l j 1st Quarter (A) (Bl 36.04% 2nd Quarter I 3rd Quarter Php 99,521,608.69 Php 276,172,047.36 4th Quarter 35.31% 106,380,886.11 301,265,898.75 39.18% 23.34% I 118,456,124.05 302,356,407.12 72,799,270.95 311,871,361.51 Having found that petitioner had VAT zero-rated receipts for the subject period of claim, the Court shall proceed to determine whether petitioner complied with the sixth to tenth requisites. Petitioner claimed a total amount of Php26,044,804.70 unutilized excess input VAT arising from its amortization of input VAT on purchases of capital goods exceeding Phpl Million, domestic purchases of goods not exceeding Phpl Million, domestic purchases of goods other than capital goods, and domestic purchases of services for the said period, computed as follows: PARTICULARS 1ST QUARTER 2ND QUARTER 3RDQUARTER 4TH QUARTER Input tax deferred on cap. Goods EXH. "P-1701" EXH. "P-18" EXH. "P-19" EXH. "P-34" exceeding 1M from Prev. Qtr. Php 22,991,003.97 Php 22,228,368.51 Php 21,647,325.88 Php 19,641,525.94 I Input tax on cap. Goods exceeding 1M deferred to succeeding period 22,228,368.51 21,627,689.75 19,659,881.44 18,266,771.54 Amortization Php 762,635.46 Php 600,678.76 Php 1,987,444.44 Php 1,374,754.40 I Input tax on cap. Goods NOT exceeding 1M 256,679.82 669,390.73 437,696.67 385,766.42 1,155,080.26 1,396,537.50 611,822.47 Input tax on cap. Goods exceeding 1M - Input tax on Goods 197,576.84 137,654.20 130,385.80 160,705.35 Input tax on services 9,626,027.13 2,279,741.94 1,699,026.49 2,221,431.08 TOTAL Php 11,997,999.51 Php 5,084,003.13 Php 4,254,553.40 Php 4,754,479.72 Less: Output Tax 46,231.05 - - - TOTAL Php 11,951,768.46 Php 5,084,003.13 Php 4,254,553.40 Php 4,754,479.72 GRAND TOTAL PHP 26,044,804.70 In support of its input VAT claim, petitioner submitted various suppliers' invoices and official receipts236, which were examined by the ICPA. The below table contains the ICPA's findings, which where then classified by the Court into valid and invalid, viz.: PARTICULARS VALID INVALID REFERENCE EXH. "P-60" Purchases of goods other than capital goods Php 294,450.38 1. Input ldx claimed on purchases of goods which are properly Annex 4 subsldntiated for VAT purposes: 82,121.37 Annex 4 a. Properly supported by TIN VAT invoice b. Properly supported by VAT REG TIN invoice ( 2. Input ldx claimed on domestic purchases of goods other than capital goods supported by invoices not dated within the quarter but within the period of claim: 236 Box of Evidence 1, Exhibits "P-61" to "P-684a."

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 38of42 a. VAT REG TIN invoice 26,053.00 108,425.53 Annex 4 b. TIN VAT invoice 25,742.12 543.86 Annex4 Annex 4 3. Input tdx claimed on domestic purchases of services erroneously classified 940.68 10,367.68 Annex4 as purchase of goods properly supported by VAT REG TIN official receipts. 26,785.71 14,078.14 Annex 4 10,818.57 Annex4 4. Input tax claimed on domestic purchases of goods other than capitdl goods 441.96 14,726.30 Annex4 supported by TIN VAT invoice with signature on the altered Petitioner1S name. Php Annex 4 7,253.85 5. Input tax claimed on domestic purchases of goods other than capital goods I 2.186,299.58 1,787.69 Annex4 supported by VAT REG TIN invoices with signature on the altered input VAT amount. 1,785.71 5,310,641.15 Annex 4 6. Input tax claimed on domestic purchases of goods other than capital goods 103,975.15 Annex 4 supported by VAT registered invoices dated outside the period of claim. 869,590.36 Annex 4 Annex 4 7. Input tax claimed on domestic purchases of goods other than capital 5,321,146.13 Annex4 goods supported by TIN VAT invoice with incorrect Petitioner's TIN. 38,418.07 105,214.29 8. Input tax claimed on domestic purchases of goods other than capital 251,980.38 goods supported by VAT registered invoices without Petitioner's TIN indicated therein. Php 9. Input tax claimed on domestic purchases of goods other than capital goods supported by I VAT registered invoices but the amount of VAT is not shown separately in the invoice. 10. Input tax claimed on domestic purchases of goods other than capital goods supported by VAT registered invoices but the TIN is handwritten on a printed invoice. 11. Input tax claimed on domestic purchases of goods other than capital goods supported by Statement of Account. 12.lnput tax claimed on domestic purchases of services erroneously classified as purchase of goods supported by collection receipts with comment of "not valid as source of input tax.'' 13. Input tax claimed on domestic purchases of goods other than capital goods supported by TIN VAT invoices with alteration in the input VAT amount. 14. Input tax claimed on domestic purchases of goods other than capital goods with no supporting documents. Purchases of Services 1. Input tax claimed on purchases of services which are properly substantiated for VAT purposes: a. Properly supported by VAT REG TIN official receipts I Php I Annex 38 b. Properly supported by TIN VAT official receipts Annex 38 2. Input tax claimed on domestic purchases of services supported by official receipts not dated within the quarter but within the period of claim: a. VAT REG TIN official receipts Annex 38 Annex 38 b. TIN VAT official receipts Annex 38 Annex 38 3. Input tax claimed on domestic purchases of services supported by TIN VAT Annex 38 Annex 38 official receipts with signature on the handwritten Petitioner's TIN. Annex 38 4. Input tax claimed on domestic purchases of services supported by VAT registered official receipts with Petitioner's address shown in the related invoice/SOA. 5. Input tax claimed on domestic purchases of goods erroneously classified as purchase of services properly supported by VAT registered sales invoice. 6. Input tax claimed on domestic purchases of services supported by VAT registered official receipts with signature on the altered input VAT amount. 7. Input tax claimed on domestic purchases of services supported by VAT REG TIN official receipts with signature on the altered Petitioner's address. 37,250.38 8. Input tax claimed on domestic purchases of services supported by official receipts dated outside the period of claim: a. VAT REG TIN official receipts 25,673.23 Annex 38 68,718.42 Annex 38 b. TIN VAT official receipts 29,810.40 Annex 38 2,611.97 Annex 38 9. Input tax claimed on domestic purchases of services supported by VAT REG TIN 4,932.00 Annex 38 19,484.57 Annex 38 official receipts without date indicated therein. 20,094.51 Annex 38 2,720.40 Annex 38 10. Input tax claimed on domestic purchases of services supported by VAT REG TIN 8,541.00 Annex 38 official receipts with altered date. 8,035.71 Annex 38 90,690.58 Annex 38 11. Input tax claimed on domestic purchases of services supported by VAT REG TIN 9,668.84 Annex 38 14,787.68 official receipts with altered Petitioner's name. Annex 38 1,013,649.59 Annex 38 12. Input tax claimed on domestic purchases of services supported by VAT REG TIN 205,385.44 Annex 38 23,582.15 Annex 38 official receipts with incorrect Petitioner's TIN. 45,740.16 Annex 38 8,960.67 Annex 38 13. Input tax claimed on domestic purchases of servicessupported by VAT registered official receipts with altered Petitioner's TIN. 14. Input tax claimed on domestic purchases of services supported by VAT REG TIN official receipt with TIN of the Petitioner handwritten on a printed official receipt. 15. Input tax claimed on domestic purchases of services supported by VAT REG TIN official receipts with altered Petitioner's address. 16. Input tax claimed on domestic purchases of services supported by official receipts without BIR authority to print. 17. Input tax claimed on domestic purchases of services supported by VAT registered official receipt but the amount of VAT is not shown separately in the receipt 18. Input L:lx claimed on domestic purchases of services supported by l:dpe receipts. 19. Input tax claimed on domestic purchases of services supported by VAT registered official receipts but amount of VAT is different from amount per schedule. 20. Input tax claimed on domestic purchases of services supported by VAT registered official receipts with "VAT Exempt Sale" indicated in the official receipt. 21. Input tax claimed on domestic purchases of services supported by collection receipts. 22. Input tax claimed on domestic purchases of services supported by VAT registered official receipts with comment of "not valid as source of input l:dx." 23. Input tax claimed on domestic purchases of services supported by VAT REG TIN official receipt with alteration in the amounts. 24. Input tax claimed on domestic purchases of services with no supporting documents. Purchases of capital goods not exceeding 1 million Php I 1,175,572.44 I Annex 97 1. Input tax claimed on purchases of capital goods not exceeding 1 million 325,721.01 Annex 97 which are properly substantiated for VAT purposes: I 127,297.73 I a. Properly supported by TIN VAT invoices and official receipts 92,123.50 I I Annex 97 b. Properly supported by VAT REG TIN invoices and official receipts 18,358.20 I I Annex 97 2. Input tax duimed on dom�>stic pun�hus�>s of cupital goods not excePdinp; 1 million supported by Php I Annex 97 5,629.28 I Annex 97 TIN VAT invoices not dated within the quarter but within the period of claim. 2,235.95 I Annex 97 3. Input tax claimed on domestic purch. of cap goods not exceeding 1 million supported by VAT 2,595.54 I Annex 97 REG TIN invoices and ORs with Petitioner's address shown in the related invoice/OR. 4. Input tax claimed on domestic purchases of capital goods not exceeding 1 million supported by VAT REG TIN official receipts with signature on the altered input VAT amount. 5. Input tax claimed on domestic purchases of capital goods not exceeding 1 million supported by TIN VAT invoice but without Petitioner's TIN. 6. Input tax claimed on domestic purchases of capital goods not exceeding 1 million supported by VAT REG TIN invoice with Petitioner's TIN handwritten on a printed invoice. 7. Input tax claimed on domestic purchases of capital goods not exceeding 1 million supported by photocopied TIN VAT invoice. Purchases of capital goods exceeding 1 million 1. Input tax claimed on purchase of capital goods exceeding 1 million which are substantiated for VAT purposes: a. Properly supported by VAT REG TIN invoices Php 198,717.291 I Annex 114 (

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 39of42 b. Properly supported by TIN VAT invoices 2,008,362.27 502,357.14 Annex 114 2. Input tax clainwd on purchilsf' of rilpit,ll goods l'Xn>eding lmillion supporlt>d hy VAT rcr,istNed 454,003.53 2,322,942.94 Annex 114 Php Annex 114 invoices dnd official receipts not dated within the quarter but within the period of claim. 3. Input tax claimed on purchase of capital goods exceeding 1 million supported by VAT PHP 19,043,956.30 PHP registered invoices and official receipts dated outside the period of claim. TOTAL With regard to the amortization of input VAT on purchases of capital goods exceeding Php1 million for the prior period, petitioner submitted official receipts and invoices237 supporting prior period purchases, quarterly schedule of amortization for the CY 2010238 and the lapsing schedule239. Pursuant to Section 110(A)(2) of the 1997 NIRC, input VAT claims on capital goods purchases attributable to zero-rated sales may be claimed either in full during the month of acquisition, or spread over a period of time, depending on the aggregate acquisition cost of the capital goods in the calendar month. If the aggregate acquisition cost exceeds Php1 Million, the claim for input tax should be spread over sixty (60) months or the estimated useful life of the capital goods, whichever is shorter. An evaluation and study of the schedules presented show that only the amortizations for the CY 2010 were claimed by petitioner. Further review of the ICPA Report, together with the documents supporting the said amounts, reveal that input taxes amounting to Php1,700,873.78, in addition to Php2,341,301.14, should be disallowed for not being properly substantiated by VAT invoices or official receipts as prescribed under Sections 110(A), 113(A), 113(B), 237, and 238 of the 1997 NIRC, in relation to Sections 4.110-1, 4.110-8, and 4.113-1 of RR No. 16-2005, as amended. Below is the breakdown of the amount of Php1,700,873.78, to wit: EXHIBIT REGISTERED NAME OF SUPPLIER INPUT TAX REASON FOR EXCEPTION P-64 1st Quarter Php 576.64 Handwritten VAT amount in a computerized invoice P-270 FILES ENTERPRISES MFG CORP. PHP 141,891.42 With noted alteration/ addition in the supporting EDUARDO G. TOLOSA 300.00 OR without countersignature of the P-407 PROFILES ASIA PACIFIC INC. 19,026.21 P-408 SUPERIOR MAINT. SERVICES INC. 41,845.06 authorized representative of the supplier P-652 A Great Year Industries Corporation Manila 203,639.33 VAT not separately indicated Sub-Totallst Quarter Incorrect VAT amount Out of period invoice 2nd Quarter 237 Box of Evidence 1, Exhibits "P-722" to "P-739a." 238 Exhibit Folder No.2, Exhibit "P-1701," Quarterly VAT Return for the First Quarter, Annexes, pp. 1- 4; Exhibit Folder No. 1, Exhibit "P-18," Quarterly VAT Return for the Second Quarter, Annexes, pp. 1- 4; Exhibit Folder No. 1, Exhibit "P-19," Quarterly VAT Return for the Third Quarter, Annexes, pp. 1-3. 239 Records, CTA Case Nos. 8482, 8513, 8560 & 8611, Vol. 5, Exhibit "P-702," pp. 2601-2615. (

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page40of42 P-298 PICC Php 96,428.57 VAT not separately indicated P-622 TOTAL VENTURES INC. PHP 2,678.57 Supported by pre-printed TAN VAT invoice P-622 TOTAL VENTURES INC. 78,214.29 then stamped with TIN VAT Supported by pre-printed TAN VAT invoice P-624 HOFFSMAN SYSTEMATIC DESIGNS, INC. 3,126.72 P-625 HOFFSMAN SYSTEMATIC DESIGNS, INC. 18,760.32 then stamped with TIN VAT P-668 A CWC INDUSTRIES INC. Out of period invoice P-668 B CWC INDUSTRIES INC. 2,622.60 Out of period invoice Sub-Total 2nd Quarter 15,735.60 Out of period invoice 217,566.67 Out of period invoice P-314 3rdQuarter Php 948.20 Over claimed input VAT P-323 MAXICARE HEALTHCARE CORP. PHP 4,607.14 Stamped dated OR while all other FMR CORPORATION P-323 details are handwritten. FMR CORPORATION 1,071.43 Stamped dated OR while all other P-324 FMR CORPORATION details are handwritten. P-334 3,996.43 Stamped dated OR while all other P-335 STANDARD INSURANCE CO., INC. P-336 STANDARD INSURANCE CO., INC. 15,768.72 details are handwritten. P-395 UPS DELBROS INT'L EXPRESS LTD. INC 18,952.77 Incomplete OR date. (without the "Year") EDUPRO, INC. 1,402.55 Incomplete OR date. (without the "Year") 9,750.00 Official receipt not readable With noted alteration/addition in the supporting OR without countersignature of the authorized representative of the supplier I P-398 EDUPRO, INC. 14,250.00 With noted alteration/ addition in the supporting OR without countersignature of the P-402 UP NORTH PROPERTY HOLDINGS, INC 70,552.57 authorized representative of the supplier P-403 UP NORTH PROPERTY HOLDINGS, INC 780,451.66 Official Receipt not readable P-421 AL NAVARRO CASSEROLS FOOD SERVICES 14,625.00 Official Receipt not readable P-422 PICC VAT not separately indicated Sub-Total 3rd Quarter 540.38 VAT not separately indicated 936,916.85 P-211 4th Quarter Php 26,785.71 Invoice without authorized signature P-212 PRO- BAG INDUSTRIES PHP 441.96 Signature on the alteration in the invoice is not MFC BISTRO FOODS CORPORATION P-372 133,725.83 the same with the authorized signature P-373 UP NORTH PROPERTY HOLDINGS, INC 552.33 Official Receipt not readable P-404 SUPERIOR MAINTENANCE SERVICES INC. OR dated outside the period of claim BO LE ASSOCIATES PHILIPPINES, INC. 6,741.43 With noted alteration/addition in the supporting P-406 UP NORTH PROPERTY HOLDINGS, INC 151,708.17 OR without countersignature of the P-640 HOFFSMAN SYSTEMATIC DESIGNS, INC. 22,795.50 Sub-Total 4th Quarter 342,750.93 authorized representative of the supplier Official Receipt not readable Out of period invoice GRAND TOTAL -�--- PHP 1,700,873.78 -��-��-- -- Hence, out of the Php26,044,804.70 input VAT claim on purchases of capital goods not exceeding Phpl million, amortizatison of input VAT on purchases of capital goods exceeding Phpl million, domestic purchases of goods other than capital goods and domestic purchases of services, only the amount of Php17,343,082.52 represents petitioner's substantiated input VAT. From this amount, only input VAT amounting to Php6,017,575.05 is attributable to petitioner's zero-rated sales, computed as follows: REFERENCE 1ST 2ND 3RD 4TH TOTAL Annex4-1.a 78,439.31 Php Annex 4 -1.b Php 66,218.48 Php 103,536.06 Php 15,270.67 46,256.53 Php 294,450.38 Annex4- 2.a 20,906.94 15,490.96 Annex 4- 2.b 22,484.43 3,403.41 8,517.02 23,459.33 82,121.37 Annex4- 3 428.57 158.40 Annex4-4 - - 7,158.63 26,053.00 Annex4- 5 - - - - 16,796.53 25,742.12 - - 782.28 940.68 - 26,785.71 26,785.71 - 441.96 441.96 I

CTA CASE NOS. 8482, 8513, 8560 8611 Annexl MANULIFE DATA SERVICES, INC. Amount ZERO RATED SALES Php1,753,565.53 Exhibit Customer OR Number OR Date 3,861,121.87 1,117,866.39 1st Quarter Manulife (International) Ltd 01134 2/26/10 3,669,688.10 P-761 Manulife (International) Ltd 01135 2/26/10 1,208,243.58 P-762 Manulife (International) Ltd 01136 2/26/10 1,868,596.67 P-763 Manulife (International) Ltd 01201 3/30/10 1,957,800.75 P-764 Manulife (International) Ltd 01202 3/30/10 3,655,936.05 P-765 Manulife (International) Ltd 01211 3/30/10 1,157,294.44 P-766 Manulife (International) Ltd 01273 4/30/10 232,185.22 P-767 Manulife (International) Ltd 01274 4/30/10 1,532,866.10 P-768 Manulife (International) Ltd 01275 4/30/10 P-769 John Hancock Life Insurance Co. 01153 2/26/10 10,380,146.32 P-894 John Hancock Life Insurance Co. 01163 2/26/10 480,239.13 P-895 John Hancock Life Insurance Co. 01164 2/26/10 949,448.26 P-896 John Hancock Life Insurance Co. 01165 2/26/10 608,103.43 P-897 John Hancock Life Insurance Co. 01166 2/26/10 P-898 John Hancock Life Insurance Co. 01167 2/26/10 1,192,518.92 P-899 John Hancock Life Insurance Co. 01168 2/26/10 451,471.27 P-900 John Hancock Life Insurance Co. 01169 2/26/10 813,155.17 P-901 John Hancock Life Insurance Co. 01170 2/26/10 386,974.91 P-902 John Hancock Life Insurance Co. 01174 2/26/10 204,543.93 P-903 John Hancock Life Insurance Co. 01175 2/26/10 654,793.32 P-904 John Hancock Life Insurance Co. 01179 2/26/10 60,810.48 P-905 John Hancock Life Insurance Co. 01184 2/26/10 60,810.48 P-906 John Hancock Life Insurance Co. 01189 2/26/10 150,179.81 P-907 John Hancock Life Insurance Co. 01190 2/26/10 P-908 John Hancock Life Insurance Co. 01151/01152 2/26/10 1,078,002.22 P-909/P-910 John Hancock Life Insurance Co. 01158-01160 2/26/10 4,607,494.39 P-911/P-912/P-913 John Hancock Life Insurance Co. 01161/01162 2/26/10 1,134,440.85 P-914/P-915 John Hancock Life Insurance Co. 01222 3/30/10 P-916 John Hancock Life Insurance Co. 01232 3/30/10 233,437.46 P-917 John Hancock Life Insurance Co. 01233 3/30/10 1,527,096.19 P-918 John Hancock Life Insurance Co. 01234 3/30/10 10,702,814.29 P-919 John Hancock Life Insurance Co. 01235 3/30/10 P-920 John Hancock Life Insurance Co. 01236 3/30/10 551,687.88 P-921 John Hancock Life Insurance Co. 01237 3/30/10 963,363.00 P-922 John Hancock Life Insurance Co. 01238 3/30/10 611,383.09 P-923 John Hancock Life Insurance Co. 01239 3/30/10 1,187,841.57 P-924 John Hancock Life Insurance Co. 01243 3/30/10 400,091.28 P-925 John Hancock Life Insurance Co. 01244 3/30/10 953,472.35 P-926 John Hancock Life Insurance Co. 01248 3/30/10 389,061.97 P-927 John Hancock Life Insurance Co. 01255 3/30/10 205,647.09 P-928 John Hancock Life Insurance Co. 01261 3/30/10 658,021.61 P-929 John Hancock Life Insurance Co. 01262 3/30/10 P-930 John Hancock Life Insurance Co. 01268 3/30/10 61,138.45 P-931 John Hancock Life Insurance Co. 01220/01221 3/30/10 61,138.45 P-932/P-933 John Hancock Life Insurance Co. 01227-01229 3/30/10 150,989.77 P-934/P-935/P-936 John Hancock Life Insurance Co. 01230/01231 3/30/10 421,095.49 P-937/P-938 John Hancock Life Insurance Co. 01295 4/30/10 1,059,243.69 P-939 John Hancock Life Insurance Co. 01305 4/30/10 4,486,878.89 P-940 John Hancock Life Insurance Co. 01306 4/30/10 1,052,357.08 P-941 John Hancock Life Insurance Co. 01307 4/30/10 232,332.30 P-942 John Hancock Life Insurance Co. 01308 4/30/10 1,811,220.73 P-943 John Hancock Life Insurance Co. 01309 4/30/10 10,883,711.75 P-944 John Hancock Life Insurance Co. 01310 4/30/10 782,655.94 P-945 John Hancock Life Insurance Co. 01311 4/30/10 978,138.94 P-946 John Hancock Life Insurance Co. 01312 4/30/10 603,687.38 P-947 John Hancock Life Insurance Co. 01313 4/30/10 1,482,802.81 P-948 388,168.87 521,812.22 810,963.07 (

CTA CASE NOS. 8482, 8513, 8560 8611 Annex1 MANULIFE DATA SERVICES, INC. Amount ZERO RATED SALES 384,164.70 Exhibit Customer OR Number OR Date 226,601.41 721,519.23 P-949 John Hancock Life Insurance Co. 01317 4/30/10 41,420.22 P-950 John Hancock Life Insurance Co. 01318 4/30/10 268,157.37 P-951 John Hancock Life Insurance Co. 01322 4/30/10 344,472.11 P-952 John Hancock Life Insurance Co. 01327 4/30/10 530,560.99 P-953 John Hancock Life Insurance Co. 01334 4/30/10 1,168,958.24 P-954 John Hancock Life Insurance Co. 01337 4/30/10 4,578,183.79 P-955 John Hancock Life Insurance Co. 01343 4/30/10 1,526,823.62 P-956/P-957 John Hancock Life Insurance Co. 01293/01294 4/30/10 330,195.83 P-958/P-959 /P-960 John Hancock Life Insurance Co. 01300-01302 4/30/10 99,521,608.69 P-961/P-962 John Hancock Life Insurance Co. 01303/01304 4/30/10 P-963/P-964 John Hancock Life Insurance Co. 01331/01332 4/30/10 1,914,685.24 Sub-total 1st Quarter 3,805,842.30 2nd Quarter 01347 5/28/10 1,229,951.26 P-965 Manulife International Ltd 01348 5/28/10 2,091,825.71 P-966 Manulife International Ltd 01349 5/28/10 3,720,218.86 P-967 Manulife International Ltd 01421 5/28/10 1,331,821.12 P-968 Manulife (International) Ltd 01422 5/28/10 P-969 Manulife (International) Ltd 01423 5/28/10 27,731.42 P-970 Manulife (International) Ltd 01448 6/30/10 2,003,578.86 P-971 Manulife (International) Ltd 01496 7/30/10 3,857,661.42 P-972 Manulife International Ltd 01497 7/30/10 1,394,087.88 P-973 Manulife International Ltd 01498 7/30/10 P-974 Manulife International Ltd 01394 5/28/10 132,992.07 P-993 John Hancock Life Insurance Co. 01395 5/28/10 2,429,848.82 P-994 John Hancock Life Insurance Co. 01369 5/28/10 P-1111 John Hancock Life Insurance Co. 01370 5/28/10 225,339.62 P-1112 John Hancock Life Insurance Co. 01380 5/28/10 117,781.31 P-1113 John Hancock Life Insurance Co. 01381 5/28/10 1,691,561.07 P-1114 John Hancock Life Insurance Co. 01382 5/28/10 10,562,345.99 P-1115 John Hancock Life Insurance Co. 01383 5/28/10 760,144.87 P-1116 John Hancock Life Insurance Co. 01384 5/28/10 1,160,473.35 P-1117 John Hancock Life Insurance Co. 01385 5/28/10 588,905.20 P-1118 John Hancock Life Insurance Co. 01386 5/28/10 1,571,594.18 P-1119 John Hancock Life Insurance Co. 01387 5/28/10 601,884.46 P-1120 John Hancock Life Insurance Co. 01388 5/28/10 509,034.87 P-1121 John Hancock Life Insurance Co. 01392 5/28/10 807,697.00 P-1122 John Hancock Life Insurance Co. 01393 5/28/10 479,119.39 P-1123 John Hancock Life Insurance Co. 01397 5/28/10 264,115.12 P-1124 John Hancock Life Insurance Co. 01402 5/28/10 632,962.28 P-1125 John Hancock Life Insurance Co. 01406 5/28/10 P-1126 John Hancock Life Insurance Co. 01411 5/28/10 59,693.19 P-1127 John Hancock Life Insurance Co. 01417 5/28/10 148,153.34 P-1128 John Hancock Life Insurance Co. 01367/01368 5/28/10 642,440.25 P-1129/P-1130 John Hancock Life Insurance Co. 01375-01377 5/28/10 287,139.92 P-1131/P-1132/P-1133 John Hancock Life Insurance Co. 01378/01379 5/28/10 1,249,110.95 P-1134/P-1135 John Hancock Life Insurance Co. 01443 6/30/10 4,311,610.85 P-1136 John Hancock Life Insurance Co. 01444 6/30/10 1,507,763.91 P-1137 John Hancock Life Insurance Co. 01453 6/30/10 230,424.63 P-1138 John Hancock Life Insurance Co. 01454 6/30/10 204,560.54 P-1139 John Hancock Life Insurance Co. 01455 6/30/10 1,637,638.48 P-1140 John Hancock Life Insurance Co. 01456 6/30/10 10,853,355.67 P-1141 John Hancock Life Insurance Co. 01457 6/30/10 915,388.29 P-1142 John Hancock Life Insurance Co. 01458 6/30/10 1,076,119.07 P-1143 John Hancock Life Insurance Co. 01459 6/30/10 603,492.35 P-1144 John Hancock Life Insurance Co. 01460 6/30/10 1,706,535.96 P-1145 John Hancock Life Insurance Co. 01461 6/30/10 640,068.41 P-1146 John Hancock Life Insurance Co. 521,643.64 825,171.49 I

CTA CASE NOS. 8482, 8513, 8560 8611 Annexl Amount MANULIFE DATA SERVICES, INC. ZERO RATED SALES 519,139.84 270,657.24 Exhibit Customer OR Number OR Date 656,581.62 61,171.79 P-1147 John Hancock Life Insurance Co. 01466 6/30/10 149,041.04 P-1148 John Hancock Life Insurance Co. 01467 6/30/10 658,353.47 P-1149 John Hancock Life Insurance Co. 01471 6/30/10 470,556.51 P-1150 John Hancock Life Insurance Co. 01476 6/30/10 1,422,809.16 P-1151 John Hancock Life Insurance Co. 01480 6/30/10 1,550,349.49 P-1152 John Hancock Life Insurance Co. 01481 6/30/10 234,554.98 P-1153 John Hancock Life Insurance Co. 01492 6/30/10 274,883.42 P-1154/P-1155 John Hancock Life Insurance Co. 01441/01442 6/30/10 1,614,247.74 P-1156/P-1157 John Hancock Life Insurance Co. 01451/01452 6/30/10 10,785,885.67 P-1158 John Hancock Life Insurance Co. 01518 7/30/10 905,706.33 P-1159 John Hancock Life Insurance Co. 01519 7/30/10 924,593.08 P-1160 John Hancock Life Insurance Co. 01530 7/30/10 597,163.16 P-1161 John Hancock Life Insurance Co. 01531 7/30/10 1,723,745.79 P-1162 John Hancock Life Insurance Co. 01532 7/30/10 650,790.09 P-1163 John Hancock Life Insurance Co. 01533 7/30/10 528,728.51 P-1164 John Hancock Life Insurance Co. 01534 7/30/10 836,726.14 P-1165 John Hancock Life Insurance Co. 01535 7/30/10 528,779.91 P-1166 John Hancock Life Insurance Co. 01536 7/30/10 274,333.25 P-1167 John Hancock Life Insurance Co. 01537 7/30/10 657,446.27 P-1168 John Hancock Life Insurance Co. 01538 7/30/10 62,002.61 P-1169 John Hancock Life Insurance Co. 01543 7/30/10 273,369.07 P-1170 John Hancock Life Insurance Co. 01544 7/30/10 664,261.77 P-1171 John Hancock Life Insurance Co. 01548 7/30/10 344,467.96 P-1172 John Hancock Life Insurance Co. 01552 7/30/10 1,424,071.97 P-1173 John Hancock Life Insurance Co. 01556 7/30/10 4,409,874.83 P-1174 John Hancock Life Insurance Co. 01557 7/30/10 1,573,078.77 P-1175 John Hancock Life Insurance Co. 01563 7/30/10 106,380,886.11 P-1176/P-1177 John Hancock Life Insurance Co. 01516/01517 7/30/10 P-1178/P-1179/P-1180 John Hancock Life Insurance Co. 01525-01527 7/30/10 1,985,649.72 P-1181/P-1182 John Hancock Life Insurance Co. 01528/01529 7/30/10 3,739,910.90 Sub-total 2nd Quarter 1,455,925.96 3rd Quarter 01573 8/31/10 1,955,943.09 P-1186 Manulife (International) Ltd 01574 8/31/10 3,941,224.23 P-1187 Manulife (International) Ltd 01575 8/31/10 1,373,007.14 P-1188 Manulife (International) Ltd 01653 9/30/10 1,915,525.21 P-1189 Manulife (International) Ltd 01654 9/30/10 3,996,106.67 P-1190 Manulife (International) Ltd 01655 9/30/10 1,321,749.64 P-1191 Manulife (International) Ltd 01732 10/30/10 P-1192 Manulife International Ltd 01733 10/30/10 233,941.24 P-1193 Manulife International Ltd 01734 10/30/10 122,274.57 P-1194 Manulife International Ltd 01598 8/31/10 114,770.63 P-1340 John Hancock Life Insurance Co. 01599 8/31/10 1,662,019.95 P-1341 John Hancock Life Insurance Co. 01605 8/31/10 10,486,464.39 P-1342 John Hancock Life Insurance Co. 01612 8/31/10 790,606.42 P-1343 John Hancock Life Insurance Co. 01613 8/31/10 111,158.44 P-1344 John Hancock Life Insurance Co. 01614 8/31/10 867,001.99 P-1345 John Hancock Life Insurance Co. 01615 8/31/10 611,371.45 P-1346 John Hancock Life Insurance Co. 01616 8/31/10 1,776,794.75 P-1347 John Hancock Life Insurance Co. 01617 8/31/10 732,727.69 P-1348 John Hancock Life Insurance Co. 01618 8/31/10 528,454.13 P-1349 John Hancock Life Insurance Co. 01619 8/31/10 833,688.33 P-1350 John Hancock Life Insurance Co. 01620 8/31/10 623,156.40 P-1351 John Hancock Life Insurance Co. 01621 8/31/10 274,190.89 P-1352 John Hancock Life Insurance Co. 01626 8/31/10 657,115.75 P-1353 John Hancock Life Insurance Co. 01627 8/31/10 P-1354 John Hancock Life Insurance Co. 01631 8/31/10 ;I P-1355 John Hancock Life Insurance Co.

CTA CASE NOS. 8482, 8513, 8560 8611 Annex1 MANULIFE DATA SERVICES, INC. Amount ZERO RATED SALES 115,715.80 Exhibit Customer OR Number OR Date 1,158,551.64 P-1356 John Hancock Life Insurance Co. 01632 8/~J/10 266,146.79 P-1357 John Hancock Life Insurance Co. 01633 166,308.59 01634 8/31/10 657,854.02 P-1358 John Hancock Life Insurance Co. 01638 8/31/10 368,820.49 01639 8/31/10 1,441,774.84 P-1359 John Hancock Life Insurance Co. 01644 8/31/10 4,365,220.55 01596/01597 8/31/10 1,558,328.42 P-1360 John Hancock Life Insurance Co. 01607-01609 8/31/10 227,807.71 01610/01611 8/31/10 119,327.98 P-1361 John Hancock Life Insurance Co. 01681 8/31/10 120,141.06 01682 9/30/10 1,603,400.44 P-1362/P-1363 John Hancock Life Insurance Co. 01688 9/30/10 10,039,762.08 01695 9/30/10 759,358.14 P-1364/P-1365/P-1366 John Hancock Life Insurance Co. 01696 9/30/10 108,479.73 01697 9/30/10 724,000.62 P-1367/P-1368 John Hancock Life Insurance Co. 01698 9/30/10 597,064.95 01699 9/30/10 1,546,536.59 P-1369 John Hancock Life Insurance Co. 01700 9/30/10 696,421.52 01701 9/30/10 463,914.23 P-1370 John Hancock Life Insurance Co. 01702 9/30/10 782,315.80 01703 9/30/10 488,381.05 P-1371 John Hancock Life Insurance Co. 01704 9/30/10 252,379.78 01709 9/30/10 713,101.33 P-1372 John Hancock Life Insurance Co. 01710 9/30/10 151,709.65 01714 9/30/10 650,876.60 P-1373 John Hancock Life Insurance Co. 01721 9/30/10 619,981.96 01722 9/30/10 1,287,949.88 P-1374 John Hancock Life Insurance Co. 01727 9/30/10 4,286,037.68 01679/01680 9/30/10 1,531,092.66 P-1375 John Hancock Life Insurance Co. 01690-01692 9/30/10 10,744,760.20 01693/01694 9/30/10 223,147.52 P-1376 John Hancock Life Insurance Co. 01705-01708 9/30/10 116,886.92 01762 9/30/10 117,683.37 P-1377 John Hancock Life Insurance Co. 01763 10/30/10 1,579,968.99 01769 10/30/10 9,855,506.47 P-1378 John Hancock Life Insurance Co. 01776 10/30/10 743,824.18 01777 10/30/10 106,260.60 P-1379 John Hancock Life Insurance Co. 01778 10/30/10 1,047,723.10 01779 10/30/10 549,810.12 P-1380 John Hancock Life Insurance Co. 01780 10/30/10 1,422,449.29 01781 10/30/10 638,920.63 P-1381 John Hancock Life Insurance Co. 01782 10/30/10 433,207.26 01783 10/30/10 796,954.48 P-1382 John Hancock Life Insurance Co. 01784 10/30/10 498,747.48 01785 10/30/10 262,109.53 P-1383 John Hancock Life Insurance Co. 01791 10/30/10 632,504.40 01984 10/30/10 146,969.48 P-1384 John Hancock Life Insurance Co. 01796 10/30/10 637,561.81 01803 10/30/10 473,181.64 P-1385 John Hancock Life Insurance Co. 01804 10/30/10 1,280,439.89 01809 10/30/10 4,613,864.92 P-1386 John Hancock Life Insurance Co. 01760/01761 10/30/10 1,554,099.62 01771-01773 10/30/10 118,456,124.05 P-1387 John Hancock Life Insurance Co. 01774/01775 10/30/10 10/30/10 2,061,744.30 P-1388/P-1389 John Hancock Life Insurance Co. I P-1390/P-1391/P-1392 John Hancock Life Insurance Co. P-1393/P-1394 John Hancock Life Insurance Co. P-1395/P-1396/P-1397/P- John Hancock Life Insurance Co. P-1399 John Hancock Life Insurance Co. P-1400 John Hancock Life Insurance Co. P-1401 John Hancock Life Insurance Co. P-1402 John Hancock Life Insurance Co. P-1403 John Hancock Life Insurance Co. P-1404 John Hancock Life Insurance Co. P-1405 John Hancock Life Insurance Co. P-1406 John Hancock Life Insurance Co. P-1407 John Hancock Life Insurance Co. P-1408 John Hancock Life Insurance Co. P-1409 John Hancock Life Insurance Co. P-1410 John Hancock Life Insurance Co. P-1411 John Hancock Life Insurance Co. P-1412 John Hancock Life Insurance Co. P-1413 John Hancock Life Insurance Co. P-1414 John Hancock Life Insurance Co. P-1415 John Hancock Life Insurance Co. P-1416 John Hancock Life Insurance Co. P-1417 John Hancock Life Insurance Co. P-1418/P-1419 John Hancock Life Insurance Co. P-1420/P-1421/P-1422 John Hancock Life Insurance Co. P-1423/P-1424 John Hancock Life Insurance Co. Sub-total3rd Quarter 4th Quarter P-1428 Manulife International Ltd 01816 11/30/10

CTA CASE NOS. 8482, 8513, 8560 8611 Annexl Amount MANULIFE DATA SERVICES, INC. ZERO RATED SALES 4,012,337.39 1,374,208.01 Exhibit Customer OR Number OR Date 1,968,463.84 3,986,274.18 P-1429 Manulife International Ltd 01817 11/30/10 1,560,498.72 P-1430 Manulife International Ltd 01818 11/30/10 2,050,711.68 P-1431 Manulife International Ltd 01900 12/30/10 4,090,387.02 P-1432 Manulife International Ltd 01901 12/30/10 1,573,474.70 P-1433 Manulife International Ltd 01902 12/30/10 P-1434 Manulife International Ltd 01988 1/31/11 219,363.26 P-1435 Manulife International Ltd 01989 1/31/11 114,655.06 P-1436 Manulife International Ltd 01990 1/31/11 115,436.30 P-1599 John Hancock Life Insurance Co. 01847 11/30/10 1,701,085.84 P-1600 John Hancock Life Insurance Co. 01848 11/30/10 10,233,168.18 P-1601 John Hancock Life Insurance Co. 01854 11/30/10 730,833.69 P-1602 John Hancock Life Insurance Co. 01861 11/30/10 104,231.64 P-1603 John Hancock Life Insurance Co. 01862 11/30/10 1,186,368.93 P-1604 John Hancock Life Insurance Co. 01863 11/30/10 518,676.47 P-1605 John Hancock Life Insurance Co. 01864 11/30/10 1,398,352.98 P-1606 John Hancock Life Insurance Co. 01865 11/30/10 730,991.24 P-1607 John Hancock Life Insurance Co. 01866 11/30/10 385,657.15 P-1608 John Hancock Life Insurance Co. 01867 11/30/10 781,737.29 P-1609 John Hancock Life Insurance Co. 01868 11/30/10 476,040.95 P-1610 John Hancock Life Insurance Co. 01869 11/30/10 257,104.77 P-1611 John Hancock Life Insurance Co. 01870 11/30/10 720,698.46 P-1612 John Hancock Life Insurance Co. 01876 11/30/10 144,171.03 P-1613 John Hancock Life Insurance Co. 01877 11/30/10 626,501.79 P-1614 John Hancock Life Insurance Co. 01881 11/30/10 579,041.27 P-1615 John Hancock Life Insurance Co. 01888 11/30/10 1,332,548.60 P-1616 John Hancock Life Insurance Co. 01889 11/30/10 5,206,433.61 P-1617 John Hancock Life Insurance Co. 01894 11/30/10 1,499,994.82 P-1618/P-1619 John Hancock Life Insurance Co. 01845/01846 11/30/10 220,642.39 P-1620/P-1621/P-1622 John Hancock Life Insurance Co. 01856-01858 11/30/10 186,619.85 P-1623/P-1624 John Hancock Life Insurance Co. 01859/01860 11/30/10 115,826.86 P-1625 John Hancock Life Insurance Co. 01931 12/30/10 1,653,185.03 P-1626 John Hancock Life Insurance Co. 01932 12/30/10 10,890,341.25 P-1627 John Hancock Life Insurance Co. 01938 12/30/10 709,239.93 P-1628 John Hancock Life Insurance Co. 01945 12/30/10 104,600.40 P-1629 John Hancock Life Insurance Co. 01946 12/30/10 1,108,551.02 P-1630 John Hancock Life Insurance Co. 01947 12/30/10 511,623.99 P-1631 John Hancock Life Insurance Co. 01948 12/30/10 1,371,301.21 P-1632 John Hancock Life Insurance Co. 01949 12/30/10 683,657.16 P-1633 John Hancock Life Insurance Co. 01950 12/30/10 386,961.95 P-1634 John Hancock Life Insurance Co. 01951 12/30/10 743,113.96 P-1635 John Hancock Life Insurance Co. 01952 12/30/10 319,525.26 P-1636 John Hancock Life Insurance Co. 01953 12/30/10 741,679.02 P-1637 John Hancock Life Insurance Co. 01954 12/30/10 143,762.57 P-1638 John Hancock Life Insurance Co. 01960 12/30/10 597,622.50 P-1639 John Hancock Life Insurance Co. 01964 12/30/10 543,385.03 P-1640 John Hancock Life Insurance Co. 01971 12/30/10 1,330,959.31 P-1641 John Hancock Life Insurance Co. 01972 12/30/10 4,860,569.01 P-1642 John Hancock Life Insurance Co. 01977 12/30/10 1,549,483.48 P-1643/P-1644 John Hancock Life Insurance Co. 01929/01930 12/30/10 222,088.14 P-1645 /P-1646/P-1647 John Hancock Life Insurance Co. 01940-01942 12/30/10 268,373.74 P-1648/P-1649 John Hancock Life Insurance Co. 01943101944 12/30/10 116,861.90 P-1650 John Hancock Life Insurance Co. 02017 642,232.08 P-1651 John Hancock Life Insurance Co. 02018 1/31/11 1,657,258.32 P-1652 John Hancock Life Insurance Co. 02024 1/31/11 11,131,569.71 P-1653 John Hancock Life Insurance Co. 02025 1/31/11 P-1654 John Hancock Life Insurance Co. 02031 1/31/11 I P-1655 John Hancock Life Insurance Co. 02032 1/31/11 1/31/11

CTA CASE NOS. 8482, 8513, 8560 8611 Annexl MANULIFE DATA SERVICES, INC. ZERO RATED SALES Exhibit Customer OR Number OR Date Amount P-1656 John Hancock Life Insurance Co. 02033 1/31/11 726,070.18 P-1657 John Hancock Life Insurance Co. 02034 1/31/11 105,518.86 P-1658 John Hancock Life Insurance Co. 02035 1/31/11 1,091,067.10 P-1659 John Hancock Life Insurance Co. 02036 1/31/11 537,643.38 P-1660 John Hancock Life Insurance Co. 02037 1/31/11 1,362,263.86 P-1661 John Hancock Life Insurance Co. 02038 1/31/11 668,050.05 P-1662 John Hancock Life Insurance Co. 02039 1/31/11 390,419.89 P-1663 John Hancock Life Insurance Co. 02040 1/31/11 795,345.90 P-1664 John Hancock Life Insurance Co. 02046 1/31/11 320,043.07 P-1665 John Hancock Life Insurance Co. 02047 1/31/11 260,279.92 P-1666 John Hancock Life Insurance Co. 02051 1/31/11 818,168.18 P-1667 John Hancock Life Insurance Co. 02058 1/31/11 173,996.68 P-1668 John Hancock Life Insurance Co. 02059 1/31/11 569,800.29 P-1669 John Hancock Life Insurance Co. 02064 1/31/11 766,222.92 P-1670 /P-1671 John Hancock Life Insurance Co. 02015/02016 1/31/11 1,250,398.59 P-1672/P-1673/P-1674 John Hancock Life Insurance Co. 02026-02028 1/31/11 4,996,557.74 P-1675/P-1676 John Hancock Life Insurance Co. 02029/02030 1/31/11 1,615,398.15 Sub-total 4th Quarter 110,999,473.00 GRAND TOTAL Php435,358,091.85 (

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page41 of42 Annex 38 -1a 419,824.24 823,608.15 380,220.16 562,647.03 2,186,299.58 Annex 38 -1b 3,610,911.02 1,177,941.16 209,334.79 5,310,641.15 Annex 38 -2a 312,454.18 Annex 38 -2b 21,967.13 55,434.06 26,573.96 - 103,975.15 Annex 38-3 - 528.00 - 869,590.36 i Annex38 -4 869,062.36 674.14 - 5,321,146.13 Annex38 -5 5,320,471.99 - 38,418.07 Annex 38-6 20,406.94 8,206.92 - 105,214.29 4,500.00 9,804.21 251,980.38 Annex 97 -1a - 100,714.29 1,175,572.43 Annex 97 -1b - - 251,980.38 325,721.01 Annex 97-2 - 328,673.03 127,297.73 Annex 97-3 158,101.24 - 54,642.86 92,123.50 Annex 97-4 83,547.09 337,871.49 350,926.67 18,358.20 Annex 114 -1a - 4,846.51 2,450.53 198,717.29 Annex 114 -1b 10,200.00 182,684.55 - - 2,008,362.28 Annex 114-2 124,847.20 - 454,003.53 - 81,923.50 19,043,956.30 TOTAL - - 198,717.29 Per Court's - 18,358.20 413,105.19 1,700,873.78 I Exception 652,723.12 - Substantiated - - ! Input VAT - - Php 10,391,355.68 Php 942,533.97 2,243,946.36 Php 17,343,082.52 Percentage 454,003.53 - TOTAL 203,639.33 6,017,575.05 4,258,936.88 Php 2,149,717.38 Php Php 10,187,716.35 Php 217,566.67 936,916.85 342,750.93 36.04% 4,041,370.21 Php 1,212,800.53 Php 1,901,195.43 Php PHP 3,671,652.97 PHP 39.18% 23.34% 35.31% PHP PHP PHP . 475,175.25 443,739.01 1,427,007.8~ Even though the claimed input VAT was carried over by petitioner in its succeeding VAT Returns/Declaration, the same remained unutilized until it was deducted as "VAT Refund/TCC Claimed" in its Quarterly VAT Returns240 or Monthly VAT Declaration241, thus, preventing the carry-over or application of the claimed input VAT in the next taxable periods. WHEREFORE, premises considered, the consolidated Petitions for Review are hereby PARTIALLY GRANTED. Respondent is hereby ORDERED to REFUND or to ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner in the reduced amount of SIX MILLION SEVENTEEN THOUSAND FIVE HUNDRED SEVENTY FIVE AND 5/100 PESOS (Php6,017,575.05) representing excess and unutilized input VAT for the four (4) quarters of CY 2010. SO ORDERED. f. LOVELL BAUTISTA Associate Justice 240 Exhibit Folder No. 1, Exhibit "P-26," Line 230 for the First Quarter of 2010, p. 1; Exhibit Folder No. 1, Exhibit "P-30," Line 230 for the Third Quarter of2010, p. 1. 241 Exhibit Folder No.1, Exhibit "P-28," Line 200 for the Second Quarter of2010, p. 1; Exhibit Folder No. 1, Exhibit "P-35," Line 200 for the Fourth Quarter of2010, p. 1.

DECISION CTA CASE NOS. 8482, 8513, 8560 & 8611 Page 42of42 WE CONCUR: . FABON-VICTORINO Q!\.(. ~ ~- ~.: MA. BELEN M. RINGPIS-LIBAN Associate Justice ATTESTATION I attest that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. LOVELL~. BAUTISTA Asso1::te Justice Chairperson CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, and the Division Chairperson's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court. Presiding Justice