CTA Case No. 5783 (Decision)

REPUBLIC OF THE PHILIPPI-NES COURT OF TAX APPEALS QUEZON CITY STARPACK PHILIPPINES CORPORATION, Petitioner, -versus- COMMISSIONER OF INTERNAL REVENUE, Promulgated Respondent. MAY 25 2001 /-;;)Oi j J ri:: ~/~ X- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - X DECISION These consolidated cases elevated before Us by way of Petition for Review involve a claim for refund or tax credit in the total amount of TWENTY SEVEN MILLION NINETY FOUR THOUSAND FIVE HUNDRED TEN PESOS (P27,094,51 0.00) representing the alleged excess and unutilized creditable withholding taxes for the taxable year 1996. The facts of the case as adduced from the Parties' Joint Stipulation of Facts are as follows : 1.1 Petitioner formerly known as AR Packaging Corporation is a domestic corporation duly authorized to engage in business in the Philippines, with business address at Felix Manalo St., Punta, Sta Ana, Manila. 2.1 Petitioner is registered with the BIR with TIN No. 002-201-113 and adopts a calendar year from January 1 to December 31 for purposes of keeping its books of accounts and for filing its annual income tax returns . . , A, .! .J �:1 I

DECISION- CTA Case Nos. 5783 & 5784 Page 2 3.1 After respondent counsel examined Petitioner's Income Tax Return for the taxable period ended December 31, 1996, it is jointly stipulated that on April 15, 1997 Petitioner duly filed, with the BIR its Corporate Annual Income Tax Return for taxable year ending December 31, 1996 3.1.1 A copy of Petitioner's income tax return for the taxable period ended December 31, 1996 is hereto attached and made an integral part hereof as Exhibit "A". 4.1 After respondent counsel examined Petitioner's income tax return for the taxable period ended December 31, 1997, it is jointly stipulated that on April 15, 1998, petitioner C..uly filed with the BIR its Corporate Annual Income Tax Return for the taxable year ending December 31, 1997. 4.1.1 A copy of petitioner's income tax return for the taxable period ended December 31, 1997 is hereto attached and made an integral part hereof as Exhibit �:s". 5.1 In Petitioner's Annual Corporate Income Tax Return for the calendar year ending December 31, 1997, Petitioner manifested its intention to be refunded the amount of P25,300,639.72. 6.1 Petitioner opted to carry over to the next taxable year, 1998, that portion of its 1996 excess creditable withholding tax in the amount of Pl ,793,470.00, representing excess creditable withholding tax for its sale of packaging materials to various buyers. 7.1 Petitioner filed a formal written claim for refund with the BIR for the following: a. The amount ofP25,300,639.72 representing unutilized and unapplied creditable income taxes withheld at source on the sale of petitioner's real properties, Petitioner filed a written claim for refund with the BIRon August 20, 1998. b. The amount of Pl,793,470.00 representing unutilized and unapplied creditable withholding income taxes withheld at source on the sale of petitioner's packaging materials to various customers for the 1996 taxable year, Petitioner filed with the BIR a formal written claim for refund on December 28, 1998. l)4 u

DECISION- CTA Case Nos. 5783 & 5784 Page 3 8.1 As of the pre-trial conference last June 23, 1999, Respondent's BIR has not acted finally on any of Petitioner's administrative claim for refund . (Parties' Joint Stipulation of Facts and Issues, CTA Docketpp.92-94) Records would show that on April 14,1999, Petitioner filed before this Court a Petition for Review docketed as CTA Case No. 5783 involving a claim for refund and/or issuance of tax credit in the amount of P 1,793,470.00 representing Petitioner's unutilized and unapplied creditable income taxes withheld at source from its sale of packaging materials to various customers for the 1996 taxable year. On that same day of April 14, 1999, Petitioner filed before this Court a Petition for Review docketed as CTA Case No. 5784 involving a claim for refund and I or issuance of tax credit in the amount of I P25,300,640.00 representing Petitioner's unutilized and unapplied creditable income taxes withheld at source from its sale of real properties for the 1996 taxable year. On May 3,1999, Respondent filed two (2) separate answers to the two (2) Petitions for Review and raised the following Special and Affirmative Defenses, both answers containing similar contents, thus: 1. Assuming but not admitting that Petitioner filed an application for refund of unapplied creditable withholding tax, the same in (sic) subject to administrative investigation and resolution; 2. Taxes are presumed to have been collected in accordance with law. Hence, Petitioner must prove that the taxes sought to be refunded were erroneously and illegally collected; 3. Petitioner must show that it has complied with the provisions of Section 69 of the Tax Reform act of 1997;

DECISION- CTA Case Nos. 5783 & 5784 Page 4 4. Claims for refund of taxes are construed strictly against claimants, the same being in the nature of an exemption from taxation (Manila Electric Company vs. Commissioner of Internal Revenue) As CTA Case No. 5783 and CTA Case No. 5n4 involve the same parties and involve substantially common questions of facts and law, Petitioner moved for the consolidation of the two aforesaid cases. The Court granted said Motion for Consolidation during the hearing held on May 27,1999 followed by a confirming Resolution dated May 31 , 1999. In order to substantiate its claim for refund, Petitioner presented the following documentary evidence: I. Corporation/Partnership Annual Income, Tax Return for calendar year 1996 (Exhibit A); 2. Corporation/Partnership Annual Income Tax Return for Calendar year 1997 (Exhibit B); 3. Corporation/Partnership Annual Income Tax Return for Calendar Year 1998 (Exhibit C); 4. Various Certificate of Creditable Taxes withheld at Source for the taxable year 1996 (Exhibit D to 0); 5. Schedule of Petitioner's Partial Application of the 1996 CWTR in payment for its income tax due per company's. ITR (Exhibit P); 6. Certified True Copy of the Original Certification issued by the BIR certifying the fact of remittance of the amount withheld from the income payment made to Petitioner (Exhibit Q); 7. Letter requesting the BIR to lend Petitioner the original of the Certificates of CWT issued by various payors. (Exhibit S); 8. Report and Supplemental Report of the Commissioned Independent Auditor (Exhibits I and V);

DECISION- CTA Case Nos. 5783 & 5784 Page 5 9. Summary of Creditable Withholding Taxes for the 151, 211d, 3rd and 4111 Quarterof1996 (Exhibits U-1-1 to U-IV-71); 10. Subsidiary Sales list (Exhibits W-1 to w-140) Respondent, on the other hand, did not present any testimonial or documentary evidence. The tssues to be resolved by this Court as adduced from the Parties' Joint Stipulation of Facts and Issues are as follows : 1. Whether or not Petitioner incurred unutilized and unapplied withholding tax for taxable year 1996 on the sale of packaging materials and its real properties in the amount of P1,793,870.00 and P25,300,640.00, respectively; 2. Whether or not the withholding agents of Petitioner withheld and remitted the subject unutilized and unapplied creditable withholding tax; and 3. Whether or not the excess 1996 creditable withholding taxes being claimed as refund by Petitioner have, in fact, remained unapplied and unutilized in the succeeding taxable year, 1998. In asseverating its claim for refund, Petitioner mainly draws its legal strength in Section 69 of the Tax Code, which we quote as follows: "Section 69. Final Adjustment Return. - Every corporation liable to tax under Section 24 shall file a final adjust',nent return covering the total taxable income for the preceding calendar or fiscal year. If the sum of the quarterly tax payments made during the said taxable year is not equal to the total tax due on the entire taxable income of that year the corporation shall either:

'� DECISION- CTA Case Nos. 5783 & 5784 Page 6 a. pay the excess tax still due; b. be refunded the excess amount paid, as the case may be; In case the corporation is entitled to the refund of the excess estimated quarterly income taxes paid, the refundable amount shown on its final adjustment return may be credited against the estimated quarterly income tax liabilities for the taxable quarters of the succeeding taxable year." As the first and third issues are interrelated, we deem it proper to resolve these issues altogether. On the basis of the evidence presented to this Court, we are convinced that Petitioner incurred unutilized and unapplied withholding tax for taxable year 1996. It can be inferred from Petitioner's 1996 Annual Income Tax return that for taxable year 1996, P~titioner incurred a net operating loss of P.107,019,790.00 (Exh. A-1). It has a total creditable tax withheld of P33,384,332.00 arising from its sale of real properties and packaging materials (Exh. A-2) which remained unapplied because Petitioner was in a net loss position. Petitioner opted to apply its 1996 excess tax credit to the income tax liability of the succeeding taxable year. Enumerated hereinbelow are the summanes of Petitioner's 1996 expanded withholding taxes, which were attached to the quarterly and annual income tax returns and duly received by the Bureau's authorized collecting agent: WITHHOLDING AGENT TAX WITHHELD 15r QUARTER (Exh. U-1-1) p 194,791 .10 Nestle Phils.,(Bulacan) Pilipinas Shell 52,340.81 Caltex (Phils) Manly Plastics, Inc. 1,608.90 Sterling Products Bayer Phils., Inc. 12,550.03 Universal Food Corporation 14,681.61 32,348.43 6,380.49

DECISION- 225,939 .22 CTA Case Nos. 5783 & 5784 2,567 .02 Page 7 5,128.23 7,038 .25 Eveready Battery Co. Glaxo Wellcome 20,799 .39 Rhone-Poulenc 5,847 .20 Rhone-Poulenc Van Melle 189,323.65 Warner Lambert Phil., Inc. 29,167 .92 Nestle Phils., (Bulacan) 3,746 .29 Wrigley Philippines 4,906 .51 Sarimanok Feeds Co. M.Y. San Biscuits 157,322.43 California Mfg. Co. 5,755 .51 Pure Foods Corp. p 972,242.99 Subtotal p 22,637 .26 2ND QUARTER (Exh. U-11-1) Bayer Philippines 104,133.96 California Mfg. Co. Caltex (Phils) 795 .02 Ciba-Geigy (Phils) Eveready Battery Co. Phils 11,570.93 Food Industries, Inc. Foodworld Mfg. Corp. 77,375.41 Genpacco, Inc. Griffith Lab. (Phils) 9,885 .02 Hizon Laboratories Hoechst Philippines 13,441 .09 Metrolab Industries Nestle Philippines 32,501 .58 Organon (Philippnes) Oriental Tin Can & Metal 34,208.55 Phil. Cocoa Corporation Purefoods Corp. 4,224 .20 Reliable Industries RFM Corporation 873 . 11 Rhone Poulenc Rhone Poulenc 21,583 .26 Schering-Piough Corp. Unilever Philippines 620 ,796.37 United Laboratories Universal Food Corporation 9,528 .59 Warner Lambert Phil. Wrigley Philippines 34,331 .02 SUBTOTAL 15,551 .11 3RD QUARTER (Exh. U-111-1) 26,165 .84 Bristol Myers California Mfg. Co. 5,529.45 Caltex (Philippines) 9,152 .26 7,622 . 14 5,346 .93 975.65 104,401 .09 122,500.35 7,019.44 49,107 .79 16,941.44 p 1 ,368,198.86 5,354 .58 49,524 . 15 1,750.80 I.J.0�- 0

DECISION- CTA Case Nos. 5783 & 5784 Page 8 Eveready Battery Co. 104 ,397 .25 Genpacco, Inc. 8,290.49 Hoechst Philippines, Inc. 1,483.84 Nestle Philippines Nestle Philippines 389 ,041 .99 Nestle Philippines 301,793 .70 Nestle Philippines 450,318 . 19 Oriental Tin Can & Metal 635,661 .89 Phimco Industries Reliable Industries 3,747 .69 RFM Corporation 4,587.16 Rhone Poulenc 2,915 .71 Rhone Poulenc 6,226 .05 Sarimanok Feeds 7,063.18 Schering-Piough 1,559 .07 The Boots Co. 3 ,036 .68 The Boots Co. 3,111 .36 The Boots Co. 3,993 .95 Unilever Philippines 5 ,508 .89 United Laboratories 1,620.39 Universal Food Corporation 94,923 .73 Warner Lambert Phil. 125,762.30 3,678 . 18 SUBTOTAL 77 ,178.13 4TH QUARTER (Exh. U-IV-1 & U-IV-2) p 2,292,529.35 Bayer Philippines ------~~--------- Bayer Philippines Boehringer lngelheim p 10 ,374 .27 Bristol Myers California Mfg . Co. 5,539 .77 Caltex (Philippines) Ciba -Geigy 13,547.71 Coca-Cola Bottlers Coca-Cola Bottlers 55 ,378.44 Del Monte Philippines, Inc. Eveready Battery Co. 222 ,255.84 Food Industries Inc. Food Industries Inc. 133.20 Genpacco, Inc. Gourmet Farms 6,058 .93 Griffith Lab. Griffith Lab. 12,088.02 Griffith Lab. Griffith Lab. 8,478 .90 Griffith Lab. Henkel Philippines 166.09 Kimberly Clark Phils. Kraft Foods Philippines 120,684.87 Kraft Foods Philippines 8,170 .91 11,021 .83 24,818 .34 8,400.45 5,892 .75 4,419.76 6,636 .07 9,037 .17 8,246.00 7,774.14 1,395.00 76 ,365 .78 46,799 .55 . i-:'" . t ' J "i

DECISION- 95,861.25 CTA Case Nos. 5783 & 5784 102,015.81 Page 9 12,559.42 Kraft Foods Philippines 14,601 .60 Kraft Foods Philippines 10 ,063 .64 La Tondena Distillers La Tondena Distillers 621.41 La Tondena Distillers 2,454 .55 Lapu-Lapu Packaging Corp. 2,764 .18 M.Y. San Biscuits, Inc. 1,314 .54 M.Y. San Biscuits, Inc. 2,591 .07 Manly Plastics, Inc. 238,345 .25 Manly Plastics, Inc. 228,299 .76 Nestle Philippines 602,098 .78 Nestle Philippines 715,664 .18 Nestle Philippines 165,118.34 Nestle Philippines 7,431 .50 Nestle Philippines 22,399 .96 Organon (Philippines) 1,554.12 Oriental Tin Can & Metal 53,231 .36 Phimco Industries 1,789.43 Pilipinas Shell 14,193.77 Phil. Cocoa Corp. 9,459 .99 Phil. Cocoa Corp. 8,893 .96 Purefoods Corp. 22,632.41 Purefoods Corp. 6,547 .00 Purefoods Corp. 2,911 .39 RFM Corp. 7,498 .79 Rhone Poulenc 4 ,279 .88 Rhone Poulenc 2,892 .65 Saisho Onkyo, Inc. 1,502 .95 Schering Plough 27,153 .93 Schering Plough 8,743 .57 SMC Juice, Inc. 8,035,188 .37 SMC Juice, Inc. 17,265,451 .35 Steniel Carton Systems Corp. 90,138 .33 Steniel Manufacturing 101,778.72 Unilever Philippines 6,480 .10 United Laboratories 7,952 .05 Universal Foods Corp. 8,101 .73 Univet Agricultural Products 9,093.32 Univet Agricultural Products 3,562 .90 Univet Agricultural Products 34,727 .20 Sarimanok Feeds Co. 31,380 .18 Van Melle Phils. 75,188 .09 Van Melle Phils. Warner Lambert Phil. 11 ' 144.07 Wrigley Philippines p 28,751,360.64 SUBTOTAL ----~~--~--------- TOTAL p 33,384,331.84 ====~==~======

DECISION- CTA Case Nos. 5783 & 5784 Page 10 For taxable year 1997, Petitioner had a taxable income ofP19,325,895.00 with a corresponding tax due of P6,764,063.00. In the same taxable year 1997 Petitioner had total tax credits/payments ofP42,871,782.00 broken down as follows: Prior year's excess tax credit (1996) P33,384,332.00 1997 Tax credits/payments 9,487,450.00 Total Tax Credits/Payments P42.871.782.00 Petitioner applied the amount of P6,764,063.00 corresponding to its 1996 tax credit to the 1997 income tax liability leaving an excess tax credit of P36,107,719.00. Out of the amount of P36, 107,719.00, only the sum of P25,300,640.00 which is the tax withheld from Petitioner' s sale of real properties was opted by Petitioner to be refunded while the balance ofP10,807,079.00 was opted to be applied to the income tax liability of the succeeding taxable year. For taxable year 1998, the records show that Petitioner did not carry over the whole amount ofP10,807,079.00, but declared only the amount ofP9,013,609.00 as prior year's excess credit because it chose to refund the difference ofPl,793,469.00. ' Below is the list of 1996 creditable withholding taxes subject of the instant petition. (a) From sale of real properties WITHHOLDING AGENT EXHIBIT INCOME TAX PAYMENT WITHHELD Steniel Mfg .Corp. N 230,206,018.00 p 17,265,451.35 Steniel Cartons 0 107,135,845.00 8,035,188 .37 I .-:- t-J� �,,1 v '

DECISION- CTA Case Nos. 5783 & 5784 Page II SUBTOTAL 337,341 ,863.00 p 25,300,639.72 (b) From sale of packaging materials INCOME TAX PAYMENT WITHHELD WITHHOLDING AGENT EXHIBIT Anflocar's, Inc. K 918 ,252 .00 p 9,182.52 Saisho Onkyo, Inc. D 427 ,987 .91 4,279.88 Anflocar's, Inc. L 9 4 3 , 0 1 9 .0 0 9,430.19 Eveready Battery Co. E 12 ,0 6 8 , 4 8 7 .0 0 120,684 .8 7 Flexo Mfg . Corp. No certificate 536 ,2 7 2 .72 5,362.72 Henkel Phils. F 7 7 7 ,414 .9 9 7,774.14 Kraft Foods Phils. G 7 ,6 3 6 ,578 .0 0 76,365.78 Nestle Phils. Alabang H 23,834 ,525.00 2 3 8 , 3 4 5 .2 5 Nestle Phils. Cabuyao 60,209 ,878 .00 6 0 2 ,0 9 8 .7 8 Nestle Phils. Cagayan J 71 ,566,418.00 7 1 5 ,6 6 4 . 1 8 Republic Chemical Ind . M 4 2 8 , 172 .00 4 ,281 .72 SUBTOTAL 179,347,00� :.62 p 1,793,470.03 TOTAL 516,688,867.62 p 27,094,109.75 Thus, from the foregoing di scussion, it appears that the total refundable amount still due the Petitioner is P27,094,109.75. However, before making such a conclusive stance, it is imperative for the Court to make a circumspect examination of all the pertinent documents in the light of the three basic requirements for the refund of excess creditable withholding taxes, to wit: 1) That the claim for refund was filed within two years as prescribed under Section 230 (now Section 229) of the Tax Code; 2) That the income upon which the taxes were withheld were included in the return of the recipient; 3) That the fact of withholding is established by a copy of a statement (BIR Form 1743.1) duly issued by the payor (withholding agent) to the payee showing the amount paid and the amount of tax withheld therefrom. I,__, J.~� 'J�)

DECISION- CTA Case Nos. 5783 & 5784 Page 12 (Section I 0, Rev. Reg 6-85; Citytrust Finance Corporation vs The Honorable Commissioner of Internal Revenue, CTA Case No. 4I34, November 11, I99I ; Affirmed by the Court ofAppeals in CityTrust Finance Corporation vs. Commissioner of Internal Revenue, CA GR SP No. 28239, March 14,I994; and City Trust Finance Corporation vs. Commissioner of Internal Revenue, CTA Case No. 4046, February 24, I993, affirmed by the Court ofAppeals in Commissioner ofInternal Revenue vs. Citytrust Finance Corporation and the Court of Tax Appeals, C A G.R. SP No. 3II04, April I8,I994.) These aforementioned requirements were affirmed by the Supreme Court in the case of Citiban){, N.A. vs. Court of Tax Appeals and Commissioner of Internal Revenue, 280 SCRA 459. As to Petitioner's compliance with the first requisite, we answer m the affirmative. Well settled is the rule that the two-year prescriptive period from which a claim for refund is counted commences to run not from the time the corporation files and pays its quarterly tax return but from the date the final adjustment return is filed after the end of the taxable year (Commissioner vs. TMX Sales, Inc., 205 SCRA 184) which in this case is April 15 ,1997 (Exhibit A) . It could be gleaned from the records submitted that Petitioner filed its formal claim fvr refund with the BIR on the following dates: a. On August 20,1998 , Petitioner filed a written claim for refund with the BIR for the amount of P25,300,639.72 representing unutilized and unapplied creditable income taxes withheld at source on the sale of petitioner's real properties.(Joint Stipulation of Facts, Item no 7.1 (a), CTA Docket p.93); b. On December 28,1998, Petitioner filed with the BIR a formal claim for refund for the amount of PI ,793,470.00 representing unutilized and unapplied creditable withholding income taxes withheld at source on the sale of petitioner's packaging materials to various customers for the 1996 taxable year (Joint Stipulation of Facts, Item no. 7.1(b), CTA Docket p.93).

DECISION- CTA Case Nos. 5783 & 5784 Page I3 The pertinent Petitions for Review for the above �claims were both filed with this Court on April 14, 2001. Thus, counting from the reckoning period to which the two- year prescriptive period begins to run, it is clear that the action undertaken by the Petitioner was filed on time. Anent the second basic requirement, this Court noticed some minor inadvertence committed by the Petitioner. A cross reference of all the pertinent documents submitted revealed that Petitioner failed to prove that all of the income reflected in the Certificate of Income Tax Withheld at Source were part of the income declared in the Petitioner's Annual income tax return. The independent CPA noted in his report, that Petitioner had a higher income per certificates than what was declared in their sales book. The difference was due to the fact that Petitioner' s sales in prior years (e.g. 1994, 1995) were recorded as income in those years but were collected only in 1996 and subjected by the customers/clients to the expanded withholding taxes in the latter year (Exh. V). This Court disallowed the taxes withheld on Petitioner's income for taxable year 1995 for its failure to show that the income payments pertaining thereto were previously reported in its 1995 income tax return. Petitioner did not present its 1995 income tax return, hence this Court is not in a position to determine what part of the 1995 income subjected to the withholding tax was actually declared in Petitioner's tax return. This disallowance finds support in the case of ANSCOR INSURANCE BROKERS, INC. vs. COMMISSIONER OF INTERNAL REVENUE, CTA Case No. 5753, promulgated on January 8, 2001, where this Court ruled, thus:

DECISION- CTA Case Nos. 5783 & 5784 Page 14 "This Court believes, however, that while the discrepancy in Petitioner's 1996 gross income may have been brought about by a "timing difference" where the withholding agent(s) withheld and issued the corresponding certificates after Petitioner has alr~ady accrued and reported the income in its annual income tax return, Petitioner should have proven such fact by documentary evidence. The testimony made by Ms. Mia Cabotage should have been corroborated by documents such as the 1995 annual income tax return, reconciliation schedule showing the income amounts reported in 1995 which were subjected to withholding in 1995 and 1996, invoices/receipts or any other document that would clearly show that the discrepancy was already reported in Petitioner's 1995 ITR but the withholding of the corresponding tax was made in 1996" This Court also excluded the following certificates 111 the final computation because they pertain to the taxable year 1995 (see Annex A). Income Payment Tax withheld Bayer Philippines (Exh. U-1-7) P3,234,843 .00 p 32,348.43 1,608 .90 Caltex Philippines (Exh.U-1-4) 160,890.00 2,567.02 4,224.20 Glaxo Wellcome (Exh. U-I-1 0) 256,702.00 12,550.03 Hizon Laboratories (Exh.U-II-19) 422,420.00 194,791.10 52,340.81 Manly Plastics, Inc. (Exh U-1-5) 1,255,002.62 8,619.32 Nestle Phils. Bulacan (Exh. U-1-2) 19,479,110.00 5,128.23 7,038.25 Pilipinas Shell Pet. Corp (Exh U-1-3) 5,234,080.76 P321 .216.29 Purefoods Corp. (Exh. U-11-32) 861 ,932.00 Rhone-Poulenc-Agrochem(Exh.U-1-11) 511,823.47 Rhone-Poulenc-Rorer (Exh U-1-12) 703,825.00 T0 TAL P32. 121.628.85 This Court likewise noticed that the tax withheld by Sarimanok Feeds Co. was included in the list of Petitioner's expanded withholding taxes and declared in the income tax return as tax credit but the income was not included in Petitioner's sales list. Since this rans counter to the basic requisites laid down by law, the amount of P3,746.29 which

DECISION- CTA Case Nos. 5783 & 5784 Page 15 corresponds to the Creditable Withholding Tax of Sarimanok Feeds Co. was likewise disallowed. However, the Court allowed the refund of taxes withheld ansmg from the \ sale/exchange of motor vehicle (Exh. U-11-17) in the amount of P5,333.61 because Petitioner was able to show that the income was declared in the annual income tax return and was part of the list of creditable withholding taxes sought to be refunded. As to the third requisite, Petitioner was able to prove its receipt of rental income and income from its sales of packaging materials and its payments of corresponding taxes withheld therefrom when it presented the various Certificates of Income Tax Withheld at Source-BIR form Nos. 1743-750, 2307, 1743 .1 (Exhs. U-I-2 to U-1-20, U-11-2 to U-11-47, U-III-2 to U-111-26 and U-IV-3 to U-IV-71). However, a scrutiny of the documents presented in evidence which includes the 1996 Annual Income Tax Return (Exh. A), 1997 Annual Income Tax Return (Exh. B), 1998 Annual Income Tax Return (Exh. C), the reports of the independent CPA (Exhs. S & V), the list of expanded withholding taxes (Exhs. U-I-1, U-11-1, U-III-1, U-IV-1 & U- IV-2), the various Certificates of Income Tax Withheld at Source (Exhs. D to 0, U-I-2 to U-1-20, U-II-2 to U-11-47, U-III-2 to U-III-26 and U-IV-3 to U-IV-71) and the Subsidiary Sales List (Exhs. W 1/ 140 to W-140/140) reveals that some ofthe taxes withheld which is being sought for refund by Petitioner were not in~luded in the list of expanded withholding taxes attached to the quarterly and annual income tax returns in the amount ofP33,384,3 32.00, thus:

DECISION- CTA Case Nos. 5783 & 5784 Page 16 WITHHOLDING INCOME TAX AGENT PAYMENT WITHHELD Anflocar's, Inc. P 918,252.00 p 9,182 .52 943 ,019 .00 9,430.19 Anflocar's, Inc. 536,272 .72 5,362 .72 428,172 .00 4,281 .72 Flexo Mfg. Corp. 2,825,715.72 p 28,257.15 Republic Chemical Ind. Total P The Court is of the impression therefore that the above taxes were not originally part of the claim for refund . It was also observed that these taxes were not included in the summaries of expanded withholding taxes attached to the returns, hence, it can be concluded that the income payments were not declared in the income tax returns. Petitioner likewise failed to present the Certificate of Income Tax Withheld at Source of Rhone Poulenc-Rorer in the amount of P534,693 .00, therefore, we are inclined 0 to disallow said amount (See Annex A, page 4 of 5). Going back to the second stipulated main issue of whether or not the taxes withheld were remitted to the respondent's bureau, this Court in the case entitled SAN MIGUEL PROPERTIES vs. COMMISSIONER OF INTERNAL REVENUE, CTA Case No. 5621, dated August 06, 1999, ruled in this wise: "All that is required by law and/or implementing regulations to show proof of withholding is the presentation of the statements of tax withheld at source (BIR Forml743.1), showing the income received and the amount of tax withheld therefrom and that tt.�"! income was included to form part of Petitioner's gross income as stated in its income tax return. The reason for this is simple. The withholding agent is not within the control of the payee-taxpayer but is considered an agent of the Commissioner of Internal Revenue. The withholding agent merely holds the amount in trust for the government (Commissioner of Internal Revenue vs. Citytrust Banking Corporation, CA-GR SP No . 26839, July 31, 1992)." I� I ~ ., ') J (_.

DECISION- CTA Case Nos. 5783 & 5784 Page 17 In sum, this Court grants Petitioner' s claim for n;fund but in a reduced amount of P25,926, 184.49, computed as follows: Allowable Expanded Withholding Taxes for 1996 ~-,r, (a) From sales of real properties (Exhs . N & 0) P25 ,300,639.72 7,384,274": 16 \ -� ' I .....-=- (b) From sales of packaging materials (Annex t}-) 5,333.61 -;:K (c) From sale/exchange of motor vehicle (Exhs. U-11-17) P32,690,247.49 1' / 6,764,063.00 Total P25.926, 184.49 Less : Tax Credit Applied to the 1997 Income Tax Liability Amount Refundable WHEREFORE, in view of all the foregoing, tl1e instant Petition for Review is hereby PARTIALLY GRANTED. Respondent is hereby ORDERED to REFUND, or in the alternative, ISSUE a Tax Credit Certificate in the reduced amount of TWENTY FIVE MILLION NINE HUNDRED TWENTY SIX THOUSAND ONE HUNDRED EIGHTY FOUR AND 491100 PESOS (P25,926,184.49.00) in favor of the Petitioner, representing the unutilized withholding tax credits for the year ended December 31 ,1996. SO ORDERED. I CONCUR: ~~ Ls; ,� Cz-A- ERNEsTo D. ACOSTA Presiding Judge

r DECISION - CTA Case Nos. 5783 & 5784 Page 18 CERTIFICATION I hereby certify that the above decision was reached after due consultation with the members of the Court of Tax Appeals in accordance with Section 13, Article VIII of the Constitution. ~- LJ? -~ ERNESTO D. ACOSTA Presiding Judge

STARPACK PHILIPPINE CORPORATION vs. COMMISSIONER OF INTERNAL REVENUE ANNEXA SUMMARY OF COURT'S DISALLOWANCES ON PETITIONER'S 19961NCOME TAXES WITHHELD ON SALES OF PACKAGING MATERIALS WITHHOLDING YEAR INCOME PER INCOME PER TAX DISALLOWANCES INCOME TAX AGENT EXHIBIT COVERED BOOKS CERTIFICATE WITHHELD ~ ~ f Q TOTAL PAYMENT WITHHELD Bayer Phil ippines 3,249 ,896 .39 p p 7,089 ,973 .00 p 70,899.73 p 3,234,843 .00 p 605 ,233.61 p p 3,840 ,076.61 p 3,249 .896 .39 p 32.498 .96 Bayer Philippines Bayer Philippines U�l-7 1 99 5 3 ,234 ,843 .00 32,348.43 Bayer Philippines U- 11 -2 1996 96,735.00 967.35 Bayer Philippines U- 11-3 1996 Bayer Philippines U-IV-3 1996 2,166,991 .00 21 .669.91 U-IV-4 1996 1.037.427 .0 0 10.374.27 553.9n.oo 5,539.77 Boehringer lngelheim U�IV-5 1996 1,036,141.46 1,354,771 .00 13,547 .71 318 .629.54 318 ,629.54 1,036 , 141.46 10,361.41 6.073 ,302 .00 60 ,733.02 Bri stol Myers Squibb Phils. 6 ,547 ,702 .27 6,073,302 .00 6 0 ,733 .02 529 ,296.69 Bristol Myers U- 11 1�2 1996 535.458 .00 5.354.58 1996 5 .537 ,844 .00 55,378.44 Bristol Myers U�IV-6 California Manufacturing Corp. 52 ,929 ,669 .42 53 ,323 ,638 .0 0 533 ,236.38 393 ,968.58 393,968 .58 52 ,929 ,669.42 Calrtomia Mfg. Co. U-1- 19 1996 15 .732.243.00 157,322.43 1996 10,413,396.00 104.133.96 Calrtomia Mfg. Co. U-11-4 1996 49 ,524 .15 1996 4 .952,415.00 222,255.84 Calrtomia Mfg. Co. U-111-3 22 .225 ,584 .00 Calrtomia Mfg. Co. U- IV - 7 Caltex (Philippines). Inc. 267 ,636 .36 4 2 8 ,792 .00 4,287 .92 160 ,890 .00 265.64 161 ,155.64 267 ,636.36 2,676 .36 Caltex (Phils) U-1-4 1995 160,890.00 1,608 .90 Caltex (Phils) U- 11-5 1996 79 .502 .00 795.02 Cattex (Phils) U-111 -4 1996 Caltex (Phils) U-IV-8 1996 175 ,080 .00 1.750 .60 13,320.00 133.20 Ciba Geigy 2,049,245 .01 1,762, 986.00 17,629.86 1,762.986 .00 17,629.86 C iba-Geig y U-11-6 1996 125.083.00 1,250.83 Cib a- G ei g y U- 11 -7 1996 1,032,010.00 10,320.10 C iba-Geig y U-IV-9 1996 605.893.00 6.058.93 Coca-Cola Bottlers Phils. 2,056 ,698.15 2,262 ,361 .48 2"�.566.92 205,66;1 : 3 205 ,663.33 2.056,698.15 - 20,566 .92 4,336 ,697.96 Coca-Cola Bottlers U-IV-10 1996 1.329 ,662 .48 12.088.02 166.09 Coca-Cola Bottlers U-IV- 11 1996 932 ,679 .0 0 8,478.90 872,181 .84 485,029 .77 . Del Monte Philippines U-IV-12 1996 49 ,563.55 16,609.00 166.09 16 ,609 .00 48,502,977 .04 48 ,502 ,977.04 Eveready Battery Co. Phil. 1996 52 ,839 ,675 .00 528,396 .75 4,336 ,697.96 Eveready Battery ~o. 1996 U�l-9 1996 22 .598 .200 .00 225,939.22 1996 7,737.541 .00 77,375.41 Eveready Battery Co. U-11-8 1 0,439.725 .00 104,397.25 Eveready Battery Co. U-111-5 12 .068 ,487 .00 120,684 .87 Eveready Battery Co. U-IV-13 Food Industries inc. 2,035 ,590.91 2 .907 ,772 .7 5 29 ,077.76 872,181 .84 2,035 ,590.91 20 ,355.91 1,344,109.09 441 .909.10 Food Industries. Inc. U - 11 - 9 1996 546 ,590 .91 4.4 19.10 1,344,109.00 13.441 .09 Food Industries. Inc. U�ll-1 0 1996 817,090.9 1 5,465.92 5,731, 993.24 57 ,319.93 Fcod Industries Inc. U-IV-1 4 1996 8,1 70.91 Food Industries Inc. U-IV-15 1996 1,102,1 81 .83 11 .021.83 1 of 5 Foodworld Mfg. U-11�1 1 1996 1,344,109 .00 13,441 .09 Gen Pacco 5,731 ,993.24 6,561 ,041 .00 65,610 .41 829 ,047.76 829,047 .76 Genpacco, Inc. U-11-12 1996 3 ,250 , 158 .62 32,501 .58 (.:~_~, 0 Genpacco, Inc. U�lll-6 1996 829,049.07 8,290.49 Genpacco. Inc. U-IV-1 6 1996 2.481 ,834.64 24.818.34

~~ :j ~ W ITHHOLDING YEAR INCOME PER INCOME PER TAX D I SA LL OWANCES INCOME TAX AGENT EXHIBIT COVERED BOOKS CERTIFICATE W ITHHELD 349 ,299 . 11 ~ � f Q TO TA L PAYM EN T WITHHELD 840,529 .87 256,7 02 .00 2,567 .02 Glaxo W ellcome U-1-10 1995 5,779,984 .27 2,567 ,025 .00 2,567,025 .00 84 0,045 .00 8,400.45 Gourmet Farms. Inc. U-IV-17 1996 548,324 .09 840 ,045 .0 0 8,400 .45 484 ,767 .09 6 ,310 ,669 .00 63 , 106 .69 Griffith Lab. 1,236,746 .71 290.238.00 2 .902 .38 530 ,684 .73 530 ,684 .73 5,779 ,984 .27 57,799 .84 115,092 .89 475,148.00 4.751 .48 Griffith Lab. U-11-13 1996 25,678,257 .05 17,408 .77 Griffith Lab. U-11-14 1996 1.740,877.00 3.104.13 Griffith Lab. U-11- 15 1996 15,951 .999.21 310 ,413 .00 708 .18 Griffith Lab. U-11-16 1996 70 ,818 .00 5,892 .75 Griffith Lab. U-11-18 1996 1,223,042 .07 589 ,275.00 4.419 .76 Griffith Lab. U-IV-18 1996 2,512,844 .73 441,976 .00 6.636.07 Griffith Lab. U-IV-19 1996 663,607 .00 9.037 .17 Griffith Lab. U-IV-20 1996 112,056 ,255.96 903 ,717 .00 8.246.00 Griffith Lab. U-IV-21 1996 824 .600.00 63,106.69 Griffith Lab. U-IV-22 1996 6.310.669.00 7,774 .14 �~nkel Phils.. Inc. U-IV-23 1996 777,41 4.99 229,090.90 229,090 .90 548,324 .09 5,483 .24 4,224 .20 422.420.00 235 ,695 .00 Hizon Laboratories U-11-19 1995 422 ,42 0 .00 422 ,420.00 2,356.95 2,356 .95 Hoechst U-11-20 1996 235,695.00 873.11 1,150.93 Hoechst Philippines U-111-7 1996 87,311 .46 256 ,782 .57 Hoechst Philippines 148,383.88 1.483.64 Kimberly-Clark Phils. U-IV-24 1996 139,500.00 1,395.00 24 ,407 .11 24,407.11 115,092 .89 6,425,981 .95 6,425 .981 .95 25.678 ,257 .05 Kraft Foods Phils. 32 ,104,239.00 321 ,042 .39 U-IV-25 1996 7,636 ,578 .00 76 .365 .78 Kraft Foods Philippines U-IV-26 1996 4,679 ,955 .00 46 ,799 .55 Kratt Foods Philippines U-IV-27 1996 9,586 ,125 .00 95.861 .25 Kraft Foods Philippines U-IV-28 1996 10,201 ,581 .00 102,015.81 Kraft Foods Philippines 3,722,466.00 37 .224.66 La Tondena Distillers, Inc. 1,255.941 .82 12.559.42 3,722 ,466 .00 37 ,224 .66 1,460,160.00 14.601 .60 10,125.24 La Tondena Distillers U-IV-29 1996 1.006.363 .64 10.063 .64 1996 La Tondena Distillers U-IV-30 1996 62,141.00 621.41 La Tondena Distillers U-IV-31 1,012,523 .57 10,125.24 490 .650 .88 4.906.51 La pu Lapu Packaging U-IV-32 1996 245 ,454 .55 2.454 .55 62.141 .00 62,141 .00 276,418.14 2,764 .18 1,255,002.62 � Y. San Biscuits 1,012,523 .57 .-1 .Y. San Biscuits 1,645 ,562 .60 16,455.64 2,158,326.00 M.Y. San Biscuits U-1-18 1996 1.255 ,002 .62 12,550.03 U-IV-33 1996 1.314.54 . M.Y. San Biscuits U-IV-34 1996 131 .453.45 2.591 .07 259,106.73 Manly Plastics, Inc. 21 ,583 .26 1.255 ,002.62 390,560.18 3 ,905 .60 2,158,326.00 6 ,964 .57 Manly Plastics. Inc. U-1-5 1995 696.457 .00 14.618 .69 Manly Plastics. Inc. U-IV-35 1996 Manly Plastics, Inc. U-IV-36 1996 1,461 ,869.00 1,098 ,114.81 203 ,944 .71 Metro Laboratories U-11-21 1996 109,811,421 .00 266,782.86 2,158.326 .00 Metrolab Industries U-11-22 1996 20.394,471 .00 389,041 .99 109,811.421 .00 Metrolab Industries 26.678,226.00 238,345 .25 38 ,904 ,199 .00 Nestle Phils., Alabang 23 .834 .525 .00 1,098,114.21 Nestle Philippines. Alabang Nestle Philippines, Alabang U-11-23 1996 Nestle Philippines, Alabang U-11-24 1996 Ne.stle Philippines. Alabang U-111-8 1996 U-IV-37 1996 2 of 5

! ,q, WITHHOLDING YEAR INCOME t>ER INCOME PER TAX i) I s A L L 0 WAN c E s INCOME TAX AGENT EXHIBIT COVERED BOOKS CERTIFICATE W ITHHELD PAYMENT WITHHELD 83 ,080,331.08 ~ .!! � Q TOTAL 106,427,701.00 1,064,277.01 83,080,331 .08 830 ,803 .31 Nestle Phils ., Bulacan 167,876 ,116.07 19,479,110.00 3,868,259 .92 23,347,369 .92 179,360,634 .18 19,479.110.00 194.791 .10 1,052,416 .97 Nestle Philippines, Bulacan u-1-2 1995 18,932 ,365.00 189 ,323 .65 1,351 ,326 .07 Nestle Philippines. Bulacan U-1-15 1996 40 ,868 , 170.23 15,006 ,880 .0 0 150 ,068 .80 Nestle Philippines, Bulacan U-11-25 1996 1' 166,062.38 30 ,179,370 .0 0 301 ,793 70 165,118.34 Nestle Philippines. Bulacan U-111-9 1996 5,909 ,394.26 22,829 ,976.00 228 .299 .76 11 ,660.62 Nestle Philippines. Bulacan U-IV-38 1996 59 ,093.94 27 , 66'~194 . 27 105,241 ,697.00 1,052,416.97 Nestle Phils., Cabuyao 105,241 ,697 .00 . 1,554.12 5,235 ,033.46 45,031 ,819.00 450 ,318 . 19 Nestle Philippines. Cabuyao U-111-10 1996 3,191 ,844 .20 60 ,209,878.00 602,098.78 52,350 .33 Nestle Philippines, Cabuyao U-IV-39 1996 31 ,918.44 1'160,212 .00 135,132,607 .00 1,351 ,326 .07 Nestle Phils., Cagayan 135,132,607.00 8,445.16 63 ,566,189.00 635.661 .89 Nestle Philippines. Cagayan U-111-11 1996 71 ,566,418.00 715 ,664 . 18 Nestle Philippines. Cagayan 1996 U-IV~O 16,511 ,834 .00 165,118.34 Nestle Phils., Lipa U-IV~1 1996 1,696,009.00 16,960.09 16,511 ,834.00 1 ' 166,062.38 Jrganon Philippines 902 ,755.00 9 ,027 .55 50 , 104 .00 479 ,842.62 529,946 .62 50,104.00 501.04 Organon (Philippnes) U-11-26 1996 Organon (Phil ippnes) U-11-27 1995 743 ,150.00 7,431 .50 Organon (Philippnes) 1996 U-IV~2 6,047 ,867.00 60 ,478 .67 1996 Oriental Tin Can Mfg. Co. 1996 1,070,661 .05 10.708:61 138,472 .74 138,472.74 5,909 ,394.26 1996 2.362 ,241 .26 23 .622 .41 Oriental Tin Can & Metal u-11-28 1996 Oriental Tin Can & Metal U-11-29 374 ,769.06 3,747 .69 Oriental Tin Can & Metal U-111- 12 2 .239 .996 .13 22 .399 .96 Oriental Tin Can & Metal U-IV~3 3,153 ,431 .00 31 ,534 .31 Philippine Cocoa Corp. 756 ,907.08 6.874 .98 3,153,431 .00 3,153,431 .00 963 ,144 .64 8 ,676 . 13 Phil. Cocoa Corp. U-11-30 1996 189,010 .44 1,789.43 -. 458 ,716 .00 458 ,716 .00 155,412 .00 Phil. Cocoa Corp. U-11-31 1996 1,561 ,313.95 14,193.77 5,235 ,033 .46 Phil. Cocoa Corp. 1996 3,191,844.20 Phil. Cocoa Corp. U-IV~ 6 1996 614,128.00 6,141 .28 U- IV~7 Phimco Ind., Inc. 1996 458 ,716 .00 4,587 . 16 Phimco Industries U-111-1 3 1996 155,41'2 .00 1,554 .12 Phimco Industries U-IV~ 10,557,216.71 105 ,572 .71 Pilipinas Shell Petroleum Corp. 5,234 ,080.76 52.340.81 5,234 ,080.76 88 ,1 02.49 5,322 , 183.25 5.323,135.95 53,231 .36 'lipinas Shell U-1-3 1995 1996 7,291 ,671 .00 72 ,916 .71 �iipinas Shell U-IV~5 575,551 .00 5.755 .51 Purefoods Corporation 861 ,932.00 8,619.32 861 ,932 .00 3,237 ,894 .80 4,099 ,826 .80 956 ,505.00 9.565.05 Pure Foods Corp. U+20 1996 Purefoods Corp. 1995 797 ,047.00 7,970.47 - Purefoods Corp. U~l-32 1996 945 ,999 .00 9,459 .99 889 ,396.00 8.893.96 U-11-33 2.263,241 .00 22 .632 .41 Purefoods Corp. U-11-34 1996 844 ,516 .00 8,445 .16 Puretoods Corp. U-IV~8 1996 Purefoods Corp. U-IV~9 1996 552 ,945.00 5.529.45 Purefoods Corp. U-IV-50 1996 291 .571 .00 2 .915 .71 Reliable Industries, Inc. 844 ,516 .0 0 Reliable Industries U-11-35 1996 Reliable Industries U-111-14 1996 3 of 5

W IThHOLDI NG YEAR INCOME PER INCOME PER TAX D IS AL L O W ANCES INCOME TA X AGENT EXHIBIT COVERED BOOKS CERTI FI CATE WI TH HELD PAYMENT WITH HELD ~ !! f. Q TOTAL 2,192,531.00 21 ,925.31 Republic Flour Mills Corp. 3 ,827,559.33 2 ,192,531 .00 21 ,925.31 833,651 .00 6,336 .51 RFM Corp. U-11-36 1996 81 ,575.00 815 .75 1996 622 ,604 .52 6.226.05 RFM Corp. U-11-37 1996 654,710.00 6 ,547 .00 1996 RFM Corp. U-111-15 RFM Corp. U-IV-51 Rhone Poulenc-Agrochem 2 ,775,293.25 3 ,178,280 .00 31 ,782 .80 512 ,823.47 512 ,823.47 2 ,665,456 .53 26 ,654 .57 512,823.47 5,126.23 Rhone�Poule nc-Ag rochem U-1-11 1995 762 ,213 .19 7,622.14 1996 706 .317 .25 7,063.18 Rhone Poulenc-Agrochem U-11-36 1996 155,907 .37 1,559.07 1996 291 ,139.08 2,911 .39 Rhone Poulenc-Agrochem U-111-16 1996 749 ,879 .37 7,498 .79 1996 Rhone Poulenc-Agrochem U-111-17 Rhone Poulenc-Agrochem U-IV-52 Rhone Poulenc-Agrochem U-IV-53 Rhone Poulenc-Rorer 6 ,822,982.59 1 ,238 ,518 .00 12,385.18 534 ,693 .00 703 ,825.00 1,238,518.00 703,825.00 7,038.25 Rhone Poulenc-Rorer U-t-12 1995 534 .693 .00 5.346.93 427,987 .91 Rhone Poulenc-Rorer No Certificate 374 ,629 .09 Saisho Onkyo, Inc. U-IV-54 1996 427,987 .91 4 ,279.88 427 ,988 .00 14,042.23 Sarimanok Feeds Co . U-1-17 1996 374 ,629.09 3 ,746 .29 374,629 .09 Schering Corporation 834 ,218 .77 848 ,261 .00 8 , 4 8 2 .61 14 ,042 .23 834 ,218 .77 8 ,342.19 97 .565 .24 975 .65 Schering-Piough U-11-40 1996 311.135.77 Schering-Piough U-111-19 1996 289 .265 .96 3,111 .36 Schering Plough U-IV-55 1996 150.295.15 2,892 .65 Schering Plough U-IV-56 1996 1.502.95 SMC Inc. 4 ,761 ,261 .82 3,589 ,750.00 35 ,897 .50 3 ,589 ,750 .00 35 ,897 .50 2.715 .393 .00 27 ,153 .93 8 ,517 .77 SMC Juice, Inc. U-IV-57 1996 874,357 .00 8.743.57 851,776 .60 SMC Juice, Inc. U-IV-58 1996 1 ,056 ,899 .73 10 ,569 .00 Sterling Phils . U-1-6 1996 851 ,776.60 1,468,161 .00 1 4 ,6 8 1 . 6 1 616 ,384.40 616,384 .40 289 ,463 .08 35c . ~22 . 63 The Bcr'.: Co . 1,056,899 .73 1,412,322 .36 11 , 123.23 355,422.63 399.394 .54 3,993 .95 The Boots Co. U-111-20 1996 550 ,889 .27 5.508 .89 The Boots Co. U-111-21 1996 462 .038 .55 1,620.39 The Boots Co. U-111-22 1996 Unilever Philippines 30 ,840,873.45 28,946,309.41 289 ,463 .08 28 ,946 ,309.41 3.206 ,993 .72 32 .069 .93 Unilever Philippines U-11-41 1996 7.233,109.08 72,331 .09 Unilever Philippines U-11-42 1996 9,492.388 .89 94 ,923 .73 Unilever Philippines U-111-23 1996 9 ,013 ,637 .72 90,138.33 Unilever Philippines U-IV-61 1996 United Laboratories 31 ,203 ,832.71 35,004 , 148. 19 350 ,041 .37 3 ,800,315.48 3 ,800,315.48 31 ,203 ,832 .71 312,038.33 6.052 ,706 .22 60 .527 .07 United Laboratories U-11-43 1996 4.197 .327 .20 41 ,973.26 United Laboratories U-11-44 1996 12.576,229.17 125.762 .30 United Laboratories U-111-24 1996 10. 177 .885 .60 101 .776.72 United Laboratories U-IV-62 1996 Universal Food Corporation 2 ,355,819.45 2,355 ,820.65 23 ,558.21 1.20 1.20 2 ,355,819.45 23,558.19 638.049.00 6.360.49 Universal Food Corp U-~8 1996 701 ,944.36 7,019.44 1996 367 .818 .19 3.678.18 Universal Food Corp. U-1~5 1996 648 .009.10 6,480.10 1996 Universal Food Corp. U-111-25 Universa! Food Corp. U-IV-63 j t) 0 4 of 5

I WITHHOLDING YEAR INCOME PER INCOME PER TAX D I s A L L 0 WAN c E s INCOME TAX AGENT EXHIBIT COVERED BOOK CERTIFICATE WITHHELD 971 ,976 .59 ~ � � Q TOTAL PAYMENT WITHHELD Univet Agricultural Products 12,732,356 .29 2,514,709.52 25,147.10 1,542 ,732 .93 1,542,732.93 971 ,976 .59 9,719 .77 Univet Agricultural Products U-IV-64 1996 24,276,449 .00 795.204.54 7,952.05 1996 810,173.25 8,101 .73 Univet Agricu~ural Products U-IV-65 1996 7,940 ,336 .03 909,331 .73 9,093.32 Univet Agricu~ural Products U-IV-66 939,341 ,793.68 p Van Melle Phils ., Inc. 8,690,677.00 86,906 .77 8,690,677.00 86 ,906 .77 Van Melle U-1-13 1996 2,079,939.00 20,799.39 Van Melle U-IV-66 1996 3,472,720 .00 34 ,727 .20 Van Melle U-IV-69 1996 3,138,018 .00 31 ,380.18 Warner Lambert Phil. 20,732,121 .00 207,321.21 20,732,121 .00 207,321 .21 Wamer Lambert Phil. U-1-14 1996 584 .720 .00 5,847.20 Warner Lambert Phil. U�ll-'16 1996 4 ,910,779.00 49 ,107 .79 Warner Lambert Phil. U-111-26 1996 7.717 ,813 .00 77 ,-178 ,13 Warner Lambert Phil. U-IV-70 1996 7,518 ,609 .00 75,188.09 Wrigkey Philippines 4,725,344 .62 47,253.45 4,725,344 .62 47 ,253.45 Wrigley Philippines U-1-16 1996 2,916.793.93 29 ,167 .94 Wrigley Philippines U-11-'17 1996 1,694 ,143 .04 16,941 .43 Wrigley Philippines U-IV-7 1 1996 114 ,407 .65 1.144.08 TOTAL p 806,307,774.96 p 8,058,022.13 p 534,693.00 p 34,482,055.85 p 35,089,839.48 p 458,716.00 p 70,565,304.24 p 738,427,422.81 p 7,384 , 274 .1 6 A Not supported by a Certificate of Income Tax Withheld at Source B Year covered is 1995 C Not declared as part of the 1996 income in the income tax return D Not included as part of the total tax withheld of P33,384,331 .84 ; l) ~ 5 of 5