AIR LIQUIDE PHILIPPINES, INC. v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY First Division AIR LIQUIDE PHILIPPINES, CTA Case No. 8052 INC., Petitioner, Members: -versus- DEL ROSARIO, P.J., Chairperson, MANAHAN, and REYES-FAJARDO, JJ. Promulgated: COMMISSIONER OF INTERNAL REVENUE, .OCT 2. UQ21 -~ <,:oo r ~ Respondent. x- - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - x DECISION DEL ROSARIO, P.J.: This case involves a Petition for Review filed by petitioner Air Liquide Philippines, Inc. on March 30, 2010, praying for the refund or issuance of a tax credit certificate in the total amount of Twenty-One Million Four Hundred Sixty Thousand Four Hundred Thirty-One Pesos and Forty-Eight Centavos (P21,460,431.48) representing its alleged unutilized input Value-Added Tax (VAT) for the 1st quarter of 2008. THE PARTIES Petitioner Air Liquide Philippines, Inc. is registered with the Bureau of Internal Revenue (BIR) as a value-added tax (VAT) entity under Certificate of Registration Number OCN 9RC000057089, effective March 9, 2006.1 1 Par. 1.3, Stipulation of Facts, Joint Stipulation ofFacts & Issues (JSFI), Docket - Vol. II, p. 897~

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Respondent is the Commissioner of the BIR, with principal office at the sth Floor, BIR National Office Building, Agham Road, Diliman, Quezon City.2 He is vested with the power to decide tax cases, including claims for refunds and/or tax credits pursuant to Section 4 of 1997 National Internal Revenue Code (NIRC), as amended. 3 ANTECEDENTS On December 23, 2009, petitioner filed with the BIR- Revenue District Office No. 121, an application for tax credit/refunds of its unutilized input VAT for the pt Quarter of 2008.4 Alleging inaction on the part of respondent, petitioner filed a Petition for Review before the Court in Division on March 30, 2010,5 praying that the latter: (1) declare petitioner entitled to the issuance of a tax credit certificate in the total amount of P21,460,431.48, representing unutilized input VAT paid for the 1st quarter of 2008; and (2) order respondent to issue the tax credit certificate in favor of petitioner in the same amount. On May 20, 2010, respondent filed his Motion to Dismiss.6 Petitioner then posted its Comment/Opposition (To Motion to Dismiss dated 13 May 2010)on June 9, 2010.7 In the Resolution dated September 1, 2010,8 this Court granted respondent's Motion to Dismiss. On September 20, 2010, petitioner filed its Motion for Reconsideration (Re: Resolution dated 1 September 2010).9 2 Par. 1.1, Stipulation of Facts, JSFI, Docket- Vol. II, p. 897. 3 Par. 1.2, Stipulation of Facts, JSFI, Docket- Vol. II, p. 897. 4 Par. I0, Petition for Review (Docket - Vol. I, pp. 4 to 5) vis-a-vis Par. 2, Answer (Docket- Vol. II, p. 807). 5 Docket- Vol. I, pp. I to 13. 6 Docket - Vol. I, pp. 98 to I0I. 7 Docket- Vol. I, pp. 117 to 124. 159(j/ 8 Docket- Vol. I, pp. 129 to 140. 9 Docket- Vol. I, pp. 146 to

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Respondent then posted his Comment/Opposition To Petitioner's Motion for Reconsideration on October 14, 2010. 10 Thereafter, petitioner filed its Reply (Re: Respondent's Comment/Opposition to Petitioner's Motion for Reconsideration dated 13 October 2010) on October 29, 2010.U In the Resolution dated November 12, 2010/2 this Court denied petitioner's Motion for Reconsideration. Petitioner then filed a Petition for Review on December 6, 2010 before this Court En Banc. 13 The case was docketed as CTA EB No. 704. On February 27, 2012, this Court En Bane rendered a Decision,14 the dispositive portion of which reads: "WHEREFORE, on the basis of the foregoing considerations, the Petition for Review is DISMISSED. Accordingly, the Resolutions dated 1 September 2010 and 12 November 2010 of the Court in Division are hereby AFFIRMED. Petitioner's claim for refund in the amount of P21,460,431.48 is DENIED on the ground that the judicial claim for the first quarter of 2008 was prematurely filed. SO ORDERED." Dissatisfied, petitioner filed its Motion for Reconsideration (Decision of27 February) on March 23, 2012.15 In the Resolution dated June 28, 2012,16 this Court En Bane denied petitioner's Motion for Reconsideration as follows: 10 Docket- Vol. I, pp. 164 to 167. 11 Docket- Vol. I, pp. 169 to 176. 12 Docket- Vol. I, pp. 179 to 189. 13 Docket- Vol. I, pp. 190 to 212. 14 Docket- Vol. I, pp. 424 to 447. 15 Docket- Vol. I, pp. 455 to 470. 16 Docket- Vol. I, pp. 478 to 482. CJ'1

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue "WHEREFORE, finding no reversible error committed by this Court in the assailed Decision promulgated on February 27, 2012, petitioner's 'Motion for Reconsideration (Decision of 27 February)' is hereby DENIED for utter lack of merit. SO ORDERED." Petitioner then filed a Petition for Review on Certiorari before the Supreme Court on July 23, 2012Y The case was docketed as G.R. No. 202507. Subsequently, the Supreme Court issued a Resolution dated October 11, 201718 in G.R. No. 202507,19 entitled ':.4ir Liquide Philippines, Inc. vs. Commissioner of Internal Revenue'; remanding the case to this Court, and directing the latter to give course to petitioner's Petition for Review, and to conduct further proceedings. The dispositive portion of said Resolution reads: "WHEREFORE, the petition is GRANTED. The Decision dated February 27, 2012 and Resolution dated June 28, 2012 of the Court of Tax Appeals en bane in CTA EB Case No. 704 are REVERSED and SET ASIDE. The case is REMANDED to the Court of Tax Appeals, which is DIRECTED to give due course to petitioner Air Liquide Philippines, Inc.'s petition for review and conduct further proceedings. SO ORDERED." The aforesaid Resolution became final and executory on December 22, 2017 and was entered in the High Court's Book of Entries of Judgment. 20 Correspondingly, this Court En Bane, in CTA EB No. 704, issued the Resolution dated June 21, 2018/1 the dispositive portion of which reads: 17 Docket- Vol. I, pp. 490 to 536. 18 Docket- Vol. I, pp. 778 to 784. 19 Docket- Vol. I, pp. 778 to 784. 20 Docket- Vol. I, p. 787.ot)

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue "WHEREFORE, premises considered, the case 'Air Liquide Philippines, Inc. vs. Commissioner of Internal Revenue/ docketed as CTA case No. 8052 is REMANDED to the CTA Special First Division for further proceedings. SO ORDERED." Thus, this Court in Division issued the Resolution dated December 4, 2018/2 granting respondent a period of fifteen (15) days from notice, within which to file his Answer to the present Petition for Review, pursuant to the Summons dated April12, 2010. Respondent filed his Motion To Admit Answer (with Profuse Apology) on January 9, 2019/3 attaching therewith his Answer.24 Petitioner then filed a Comment (Re: BIR's Motion to Admit dated 08 January 2019) on February 8, 2019.25 In the Resolution dated March 11, 2019/6 the Court granted respondent's Motion To Admit Answer (with Profuse Apology), and admitted respondent's Answer to form part of the record of the case. The Pre-Trial Conference was set and held on May 9, 2019.27 Prior thereto, petitioner filed its Pre-Trial Brief posted on May 6, 2019/8 while Respondent's Pre-Trial Briefwas filed on May 8, 2019. 29 On May 17, 2019, the parties submitted their Joint Stipulation of Facts and Issues. 30 Subsequently, the Pre-Trial Order dated 21 Docket- Vol. I, pp. 797 to 800. 22 Docket- Vol. II, p. 802. 23 Docket- Vol. I, pp. 803 to 806. 24 Docket- Vol. I, pp. 807 to 810. 25 Docket- Vol. I, pp. 813 to 815. 26 Docket- Vol. I, pp. 820 to 822. 27 Notice ofPre-Trial Conference dated April4, 2019, Docket- Vol. II, pp. 825 to 826; Minutes of the hearing held on, and Order dated, May 9, 2019, Docket- Vol. II, pp. 857 to 859, and 861 to 862, respectively. 28 Docket- Vol. II, pp. 832 to 847. 29 Docket- Vol. II, pp. 854 to 856. 30 Docket- Vol. II, pp. 897 to 905. 01

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue August 30, 2019 was issued,31 wherein this Court, inter alia, deemed the termination of the Pre-Trial. During trial, petitioner presented its testimonial and documentary evidence. It offered the testimonies of the following individuals, namely: (1) Mr. Frederic Andre Girault,32 petitioner's Chief Financial Officer; and (2) Ms. Cindy C. Torralba,33 petitioner's Manager for Finance; and (3) Mr. Edward D. Roguel,34 Court- commissioned Independent Certified Public Accountant (ICPA).35 The ICPA Report was submitted, through registered mail, on October 31, 2019.36 During the hearing held on February 13, 2020, respondent's counsel manifested that she would no longer present any evidence. 37 Petitioner filed its Formal Offer of Evidence on February 18, 2020.38 Respondent then filed his Comment/Opposition {To Petitioner's Formal Offer of Evidence dated February 17, 2020) on March 9, 2020.39 In the Resolution dated July 30, 2020,40 the Court admitted petitioner's exhibits, exceptfor the following: 31 Docket- Vol. III, pp. 1442 to 1456. 32 Exhibit "P-77", Docket- Vol. II, pp. 1061 to 1069; Minutes of the hearing held on, and Order dated, September I0, 2019, Docket- Vol. III, pp. 1457 to 1461. 33 Exhibit "P-78", Docket - Vol. II, pp. 923 to 936; Minutes of the hearing held on, and Order dated, September 10, 2019, Docket- Vol. III, pp. 1457 to 1461. 34 Exhibit "P-81", Docket- Vol. Ill, pp 1609 to 1619; Minutes of the hearing held on, and Order dated, February 13, 2020, Docket- Vol. III, pp. 1622 to 1627; Oath of Commission dated October I, 2019, Docket- Vol. Ill, p. 1486. 35 Oath ofCommission dated October I, 2019, Docket- Vol. III, p. 1486; Minutes of the hearing held on, and Order dated, October I, 2019, Docket- Vol. Ill, pp. 1483 to 1485, and 1487 to 1488, respectively. 36 Exhibit "P-80", Docket- Vol. III, pp. 1509 to 1592. 37 Refer to the Minutes of the hearing held on, and Order dated, February 13, 2020, Docket- Vol. III, pp. 1622 to 1627. 38 Docket- Vol. III, pp. 1629 to 1646. 39 Docket- Vol. III, pp. 1653 to 1660. 40 Docket- Vol. III, pp. 1664 to 1667.CJ1

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue 1� Exhibits "P-1"I "P-6"I "P-11"I "P-11-a"I "P-13"f "P-13-a"I "P- 29"I "P-30"I "P-31"I "P-32"I "P-33"f "P-34"I "P-35"I "P-36"I "P-37" "P-38" "P-39" "P-41" "P-42" "P-43" "P-45" "P-'IIII f f 46"I "P-47"I "P-49"I "P-51"I "P-53"f "P-54"I "P-59"I "P-60"I '"P-61" "P-62" "P-63" "P-65" "P-66" "P-67" "P-68" "P-IfII I I 69"I "P-70"f "P-71"I "P-72"I "P-73"I and "P-75"I for failure to submit the duly-marked exhibits; 2" Exhibits "P-2"I "P-3"I "P-5"I "P-12"I "P-14"I "P-15"I "P-16"I "P-17'', "P-18"I "P-19"I "P-20"I "P-21"I "P-22"I "P-28"I "P- 40"I "P-44"I "P-48"I "P-50"I "P-52"I "P-55"I "P-56"I "P-57"I "P-58", "P-64", "P-74", "P-76" and submarkings, "P-26-24", "P-26-87", "P-82" and submarkingsI "P-86"I "P-87"I and "P- 88", for failure to present the originals for comparison; 3. Exhibit "P-4", for not being found in the records of the case and for not being identified; and 4. Exhibits "P-26-5", "P-26-6", "P-26-9", "P-26-11", "P-26-20", "P-26-138", "P-26-240", "P-26-247", "P-26-315", "P-26-322", "P-26-393"I "P-26-394"I "P-26-408"I "P-26-409"I "P-26-410"I "P-26-411"I "P-26-412"I "P-26-413"I "P-26-414"I "P-26-415"I "P-26-416", "P-26-417", "P-26-418", "P-26-419", "P-26-420", "P-26-421"I "P-26-422"I "P-26-423"I "P-26-424"I "P-26-425"I "P-26-426"I "P-26-427"I "P-26-428"I "P-26-429"I "P-26-430"I "P-26-431", "P-26-432", "P-26-433", "P-26-434", "P-26-435", "P-26-436"I "P-26-437"I "P-26-438"I "P-26-439"f "P-26-440"I "P-26-441"I "P-26-442"I "P-26-443"I "P-26-444"I "P-26-445"I "P-26-446", "P-26-447", "P-26-451", "P-26-453", "P-26-454", "P-26-455"I "P-26-490"I "P-26-502"I "P-26-507"I "P-26-512"I "P-26-522"I "P-26-528"I "P-26-530"I "P-26-546"I "P-26-556"I "P-26-564"I "P-26-575"I "P-26-576"f "P-26-579"I "P-26-580"I "P-26-581", "P-26-582", "P-26-631", "P-26-632", "P-26-633", "P-26-634", "P-26-635", "P-26-636", "P-26-637", "P-26-638", "P-26-643"I "P-26-646"I "P-26-649"I "P-26-653"I "P-26-655"I "P-26-656"I "P-26-685"I "P-26-701"I "P-26-761"I "P-26-762"I ot/ and "P-83" and submarkings, for not being found in the records of the case.

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Page 8 of60 Thus, on September 10, 2020, petitioner filed its Motion for Reconsideration (Re: Resolution dated 30 July 2020) on the denied exhibits.41 Respondent failed to file his comment thereon.42 In the Resolution dated February 23, 2021,43 the Court partially granted the said Motion for Reconsideration (Re: Resolution dated 30 Jul;�' 2 020' 1 of petitioner I and admitted Exhibits "P-1"I "P-2"I "P-3"I "P- / 5" "P-6" "P-11" "P-11-a" "P-13" "P-13-a" "P-26-5" "P-26-6" "P-'IIIII I I 26-9" "P-26-11" "P-26-20" "P-26-240" "P-26-247" "P-26-315" "P-'III I I 26-322", "P-26-502", "P-26-507", "P-26-556", "P-26-579", "P-26- 631"I "P-26-632"I "P-26-633"I "P-26-634"I "P-26-635"I "P-26-636"I "P-26-637", "P-26-638", "P-26-643", "P-26-646", "P-26-649", "P-26- 653"f "P-26-761"I "P-26-762"I "P-29"I "P-30"I "P-31"I "P-32"f "P-33"I "P-34"f "P-35"I "P-36"I "P-37"I "P-38"I "P-39"I "P-41"I "P-42"I "P-43"I "P-45"I "P-46"I "P-47"I "P-49"I "P-51"I "P-53"I "P-54"I "P-59"I "P-60"I "P-61"I "P-62"I "P-63"I "P-65"I "P-66"I "P-67"I "P-68"I "P-69"I "P-70"I "P-71 ", "P-72", "P-73", "P-75", and "P-83" and submarkings; but the following exhibits were still denied, for not being found in the records, to wit�� Exhibits "P-26-138"I "P-26-393"I "P-26-394"I "P-26- 408"I "P-26-409"I "P-26-410"I "P-26-411"I "P-26-412"I "P-26-413"I "P-26-414", "P-26-415", "P-26-416", "P-26-417", "P-26-418", "P-26- 419", "P-26-420", "P-26-421", "P-26-422", "P-26-423", "P-26-424", "P-26-425", "P-26-426"I "P-26-427"I "P-26-428"I "P-26-429"I "P-26- 430", "P-26-431", "P-26-432", "P-26-433", "P-26-434", "P-26-435", "P-26-436", "P-26-437"I "P-26-438"I "P-26-439"I "P-26-440"I "P-26- 441"I "P-26-442"I "P-26-443"I "P-26-444"I "P-26-445"I "P-26-446"I "P-26-447", "P-26-451"I "P-26-453"I "P-26-454"I "P-26-455"I "P-26- 490", "P-26-512", "P-26-522", "P-26-528", "P-26-530", "P-26-546", "P-26-564", "P-26-575"I "P-26-576"I "P-26-580"I "P-26-581"I "P-26- 582", "P-26-655", "P-26-656", "P-26-685", and "P-26-701". On May 21, 2021, petitioner filed its Memorandum,44 while the Memorandum of respondent was posted on May 15, 2021.45 41 Docket- Vol. III, pp. 1673 to 1677. 42 Records Verification dated October 21, 2020 issued by the Judicial Records Division of this Court, Docket- Vol. IV, p. 2161. 43 Docket- Vol. IV, pp. 2185 to 2188. 44 Docket- Vol. IV, pp. 2189 to 2210. 45 Docket- Vol. IV, pp. 2215 to 2222.(11

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue The case was considered submitted for decision on June 17, 2021.46 THE ISSUE As stipulated, the sole issue for the Court's determination is as follows: " ... Whether or not Petitioner is entitled to a refund/ tax credit of excess or unutilized input VAT payments for the first quarter of calendar year 2008 in the amount of Twenty-One Million Four Hundred Sixty Thousand Four Hundred Thirty-One Pesos and Forty-Eight Centavos (P21,460,431.48)."47 Petitioner's arguments: Petitioner argues that the administrative and judicial claims were seasonably filed; that it is a VAT-registered entity, and is engaged in VAT zero-rated sales; that it incurred and paid input VAT during the 1st quarter of 2008 from its domestic purchases of goods and services; that its input VAT for the 1st quarter of 2008 has not been applied against output taxes; and that its input VAT is directly attributable to its effectively zero-rated sales for the 1st quarter of 2008. Respondent's counter-arguments: Respondent counters that petitioner failed to prove that their sales of goods and services to Philippine Economic Zone Authority (PEZA)-registered enterprises qualified as effectively zero-rated sales; that the burden of proving entitlement to a refund lies with the claimant; and that the exhibits of petitioner should not be given any probative value for being hearsay evidence. 46 Resolution dated June 17, 2021, Docket- Vol. IV, p. 2230. 47 Stipulation of Issues, JSFI, Docket- Vol. II, p. 898. ()"/

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue THE COURT'S RULING The present Petition for Review is denied. Requisites for the grant of the refund or issuance of a tax credit certificate under the NIRC Section 112(A) and (C) of the NIRC of 1997, as amended by Republic Act No. 9337,48 provides as follows: "SEC. 112. Refunds or Tax Credits ofInput Tax. - (A) Zero-Rated or Effectively Zero-Rated Sales. - Any VAT-registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax: Provided, however, That in the case of zero-rated sales under Section 106(A)(2)(a)(1), (2) and (b) and Section 108(B)(1) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP): Provided, further, That where the taxpayer is engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt sale of goods of properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales: xxx. XXX XXX XXX 48 AN ACT AMENDING SECTIONS 27, 28, 34, 106, 107, 108, 109, 110, Ill, 112, 113, 114, 116, 117, 119, 121, 148, 151, 236, 237 AND 288 OF THE NATIONAL (!"] INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES.

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue (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 a tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsection (A) hereof. In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one hundred twenty day-period, appeal the decision or the unacted claim with the Court of Tax Appeals." Based on the foregoing provisions, jurisprudence has laid down nine (9) requisites which must be complied with by the taxpayer- claimant to successfully obtain a credit/refund of input VAT. Said requisites may be classified into certain categories, to wit: Timeliness of the filing of the administrative and judicial claims: 1. the claim is filed with the BIR within two years after the close of the taxable quarter when the sales were made;49 2. that in case of full or partial denial of the refund claim, or the failure on the part of the Commissioner to act on the said claim within a period of 120 days, the judicial claim is filed with this Court, within 30 days from receipt of the decision or after the expiration of the said 120-day period;50 49 Intel Technology Philippines. Inc. vs. Commissioner of Internal Revenue, G.R. No. 155732, April 27, 2007; San Roque Power Corporation vs. Commissioner of Internal Revenue, G.R. No. 180345, November 25, 2009; and AT&T Communications Services Philippines, Inc., G.R. No. 182364, August 3, 2010. ()1/ 50 Steag State Power, Inc. (Formerly State Power Development Corporation) vs. Commissioner of Internal Revenue, G.R. No. 205282, January 14, 2019; Rohm Apollo

DECISION CTA Case Nos. 8052 Air Liqwde Philippines, Inc. vs. Commissioner ofInternal Revenue With reference to the taxpayer's registration with the BIR: 3. the taxpayer is a VAT-registered person; 51 In relation to the taxpayer's output VAT: 4. the taxpayer is engaged in zero-rated or effectively zero-rated sales;52 5. for zero-rated sales under Sections 106(A)(2)(a)(l) and (2); 106(B); and 108(B)(l) and (2) of the NIRC of 1997, as amended, the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with BSP rules and regulations; 53 As regards the taxpayer's input VAT being refunded: 6. the input taxes are not transitional input taxes;54 7. the input taxes are due or paid; 55 8. the input taxes claimed are attributable to zero-rated or effectively zero-rated sales. However, where there are both zero-rated or effectively zero-rated sales and taxable or exempt sales, and the input taxes cannot be directly and entirely attributed to any of these sales, the input taxes shall be proportionately allocated on the basis of sales volume; 56 and 9. the input taxes have not been applied against output Semiconductor Philippines vs. Commissioner of Internal Revenue, G.R. No. 168950, January 14, 2015. 51 Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue, supra; San Roque Power Corporation vs. Commissioner of Internal Revenue, supra; and AT&T Communications Services Philippines, Inc., supra. 52 !d. 53 !d. 54 !d. 55 !d. 56 Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue, supra; and San Roque Power Corporation vs. Commissioner ofInternal Revenue, supraf:!/;

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue taxes during and in the succeeding quartersY On the basis of afore-enumerated requisites, the Court shall now determine whether petitioner is entitled to a refund or tax credit of input tax on VAT zero-rated sales. Petitioner's administrative and judicial claims were timely filed Anent the first requisite, this Court has already ruled that petitioner's administrative claim was seasonably filed on December 23, 2009, per its Resolution dated September 1, 2010.58 With regard to the second requisite, which is directly related to this Court's jurisdiction over the present Petition for Review, the Supreme Court has decreed that this Court has acquired jurisdiction over the case. In its Resolution dated October 11, 2017 rendered in G.R. No. 202507,59 the High Court ruled in this wise: "The CTA erred in ruling that the petitioner's judicial claim was prematurely filed. In dismissing the petition for review filed before the tax court, the CTA First Division imposed strict compliance with the 120+30-day periods applied in claims for refunds or tax credit of input tax, as required under Section 112 of the NIRC xxx. XXX XXX XXX In CIR v. San Roque Power Corporation,5� the Court indeed reiterated the need for parties to satisfy the foregoing provisions on the 120+30-day periods. Non- compliance therewith constitutes a violation of the doctrine of exhaustion of administrative remedies, which then renders the immediate filing of a CTA petition 57 Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue, supra; San Roque Power Corporation vs. Commissioner of Internal Revenue, supra; and AT&T Communications Services Philippines, Inc., supra. 58 Docket- Vol. I, pp. 129 to 140, at p. 134. 59 Docket- Vol. I, pp. 778 to 784. 60 703 Phil. 310 (2013)C1/

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue premature and without a cause of action. The CTA does not acquire jurisdiction over the petition; the dismissal of the petition becomes a necessary consequence. It should however be emphasized that in the same case of San Roque, the Court provided an exception to the general rule that mandates strict compliance, as it considered jurisprudence and a BIR issuance in effect prior to the Court's promulgation of its decision in Aichi. The Court clarified: [S]trict compliance with the 120+30[-]day periods is necessary for such a claim to prosper, whether before, during, or after the effectivity of the Atlas doctrine, except for the period from the issuance of BIR Ruling No. DA-489-03 on 10 December 2003 to 6 October 2010 when the Aichi doctrine was adopted, which again reinstated the 120+30[-]day periods as mandatory and jurisdictional. (Emphasis supplied) It is pertinent that the petitioner's administrative and judicial claims for its unutilized input VAT payments were filed on December 23, 2009 and March 30, 2009, respectively. The petition for review filed with the CTA was brought during the effectivity of BIR Ruling No. DA- 489-03, by which the BIR expressly declared that 'the taxpayer-claimant need not wait for the lapse of the 120- day period before it could seek judicial relief with the CTA by way of Petition for Review.' From the time BIR Ruling No. DA-489-03 was issued on December 10, 2003, taxpayers could rely on its provisions until the Court's issuance of its decision in Aichi on October 6, 2010, where the Court held that the 120+30-day periods in Section 112 of the NIRC are mandatory and jurisdictional. This doctrine was reiterated by the Court in the recent case of Visayas Geothermal Power Company v. Commissioner ofInternal Revenue. Given the circumstances, the petitioner's filing of the CTA petition on March 30. 2010. and 0'/

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue without waiting for the CIR's action on its administrative claim. was accePtable. The tax court validly acquired jurisdiction over the case; its ground for the dismissal of the petition was without legal basis." (Emphases and underscoring added) Clearly, petitioner has complied with the first and second requisites, i.e., that the administrative and judicial claims were both timely filed. Petitioner is a VAT-registered taxpayer As stipulated by the parties,61 petitioner is registered with the BIR as a VAT entity under Certificate of Registration Number OCN 9RC000057089. Thus, petitioner has likewise shown compliance with the third requisite. Petitioner had zero-rated sales during the 1st quarter of 2008, but only in the amount of 1'123,908,965.20 Anent the fourth requisite, the applicable provisions are Sections 106(A)(2)(a)(5) and 108(B)(3) of the NIRC of 1997, as amended, which respectively provide as follows: "SEC. 106. Value-added Tax on Sale of Goods or Properties. - (A) Rate and Base of Tax. - xxx XXX XXX XXX (2) The following sales by VAT-registered persons shall be subject to zero percent (0%) rate: rfJ 61 Par. 1.3, Stipulation of Facts, JSFI, Docket- Vol. II, p. 897.

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue (a) Export Sales. -The term 'export sales' means: XXX XXX XXX (5) Those considered export sales under Executive Order No. 226, otherwise known as the Omnibus Investment Code of 1987, and other special laws;" (Emphases added) "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: XXX XXX XXX (3) Services rendered to persons or entities whose exception under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate;" (Emphases added) Relative to the foregoing provisions, Sections 4.106-5 and 4.108-5 of Revenue Regulations (RR) No. 16-2005,62 as amended by RR No. 04-2007,63 which implements the aforecited provisions of the NIRC of 1997, as amended, also respectively provide as follows: "SEC. 4.106-5. Zero-Rated Sales of Goods or Properties. - xxx The following sales by VAT-registered persons shall be subject to zero percent (0%) rate: 62 SUBJECT: Consolidated Value-Added Tax Regulations of2005 63 SUBJECT: Amending Certain Provisions of Revenue Regulations No. 16-2005, As Amended, Otherwise Known as the Consolidated Value-Added Tax CYJ Regulations of 2005

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue (a) Export sales.- 'Export Sales'shall mean: XXX XXX XXX (5) Transactions considered export sales under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987, and other special laws. 'Considered export sales under Executive Order No. 226' shall mean the Philippine port F.O.B. value determined from invoices, bills of lading, inward letters of credit, landing certificates, and other commercial documents, of export products exported directly by a registered export producer, or the net selling price of export products sold by a registered export producer to another export producer, or to an export trader that subsequently exports the same; Provided, That sales of export products to another producer or to an export trader shall only be deemed export sales when actually exported by the latter, as evidenced by landing certificates or similar commercial documents; Provided, further, That pursuant to EO 226 and other special laws. even without actual exportation, the following shall be considered constructively exported: (1) sales to bonded manufacturing warehouses of export-oriented manufacturers; (2) sales to export processing zones pursuant to Republic Act CRAl Nos. 7916. as amended. 7903. 7922 and other similar export processing zones; (3) sale to enterprises duly registered and accredited with the Subic Bay Metropolitan Authority pursuant to RA 7227; (4) sales to registered export traders operating bonded trading warehouses supplying raw materials in the manufacture of export products under guidelines to be set by the Board in consultation with the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC); ill sales to diplomatic missions and other agencies and/or instrumentalities granted tax immunities, of locally manufactured, assembled or repacked products whether paid for in foreign currency or not." (Emphases added)

DECISION CTA Case Nos. 8052 Air Liqwde Philippines, Inc. vs. Commissioner ofInternal Revenue "SEC. 4.108-5. Zero-Rated Sale ofServices.- XXX XXX XXX (b) Transactions Subject to Zero Percent (0%) VAT Rate. - The following services performed in the Philippines by a VAT-registered person shall be subject to zero percent (0%) VAT rate: XXX XXX XXX (3) Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate;" (Emphases added) One of the special laws mentioned in the above prov1s1on, which specifically applies to this case, is Republic Act (RA) No. 7916, as amended by RA No. 8748, otherwise known as 'The Special Economic Zone Act of 1995'~ Sections 8 and 24 thereof respectively provide as follows: "SECTION 8. ECOZONE to be Operated and Managed as Separate Customs Territory. - The ECOZONE shall be managed and operated by the PEZA as separate customs territory. The PEZA is hereby vested with the authority to issue certificates of origin for products manufactured or processed in each ECOZONE in accordance with the prevailing rules of origin, and the pertinent regulations of the Department of Trade and Industry and/or the Department of Finance." (Emphases supplied) "SECTION 24. Exemption form National and Local Taxes. - Except for real property taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE. xxx." (Emphases supplied1fJ.

DECISION CfA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue On the basis of the aforecited provisions, since the Ecozone is viewed as a foreign territory by legal fiction, sales of goods and services made by a VAT-registered person in the Philippine customs territory to an entity registered and operating within the Ecozone are considered exports to a foreign country subject to zero percent (0%) VAT. This was elucidated by the Supreme Court in Commissioner of Internal Revenue vs. Toshiba Information Equipment (Phils.), Inc.,64 to wit: "This Court agrees, however, that PEZA-registered enterprises, which would necessarily be located within ECOZONES, are VAT-exempt entities, not because of Section 24 of Rep. Act No. 7916, as amended, which imposes the five percent (5%) preferential tax rate on gross income of PEZA-registered enterprises, in lieu of all taxes; but, rather, because of Section 8 of the same statute which establishes the fiction that ECOZONES are foreign territory. xxx An ECOZONE or a Special Economic Zone has been described as - ... [S]elected areas with highly developed or which have the potential to be developed into agro-industrial, industrial, tourist, recreational, commercial, banking, investment and financial centers whose metes and bounds arc fixed or delimited by Presidential Proclamations. An ECOZONE may contain any or all of the following: industrial estates (IEs), export processing zones (EPZs), free trade zones and tourist/ recreational centers. The national territory of the Philippines outside of the proclaimed borders of the ECOZONE shall be referred to as the Customs Territory. Section 8 of Rep. Act No. 7916, as amended, mandates that the PEZA shall manage and operate the ECOZONES as a separate customs territory; thus, creating 64 G.R. No. 150154, August 9, 2005. C11

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue the fiction that the ECOZONE is a foreign territory. As a result, sales made by a supplier in the Customs Territory to a purchaser in the ECOZONE shall be treated as an exportation from the Customs Territory. Conversely, sales made by a supplier from the ECOZONE to a purchaser in the Customs Territory shall be considered as an importation into the Customs Territory. Given the preceding discussion, what would be the VAT implication of sales made by a supplier from the Customs Territory to an ECOZONE enterprise? The Philippine VAT system adheres to the Cross Border Doctrine, according to which, no VAT shall be imposed to form part of the cost of goods destined for consumption outside of the territorial border of the taxing authority. Hence, actual export of goods and services from the Philippines to a foreign country must be free of VAT; while, those destined for use or consumption within the Philippines shall be imposed with ten percent (10%) VAT." (Emphases supplied) In other words, while an ecozone is geographically within the Philippines, it is deemed a separate customs territory and is regarded in law as foreign soil. Sales by suppliers from outside the borders of the ecozone to this separate customs territory are deemed exports and treated as export sales. These sales are zero-rated or subject to tax rate of zero percent.65 Based on Sections 106(A)(2)(a)(5) and 108(B)(3) of the NIRC of 1997, as amended, the following essential elements must be present in order for an export sale to qualify for VAT zero-rating under: 1. the sale was made by a VAT registered person; and 2. there was sale of goods or services to an entity entitled to incentives under Executive Order No. 226, 65 Commissioner of Internal Revenue vs. Sekisui Jushi Philippines, Inc., G.R. No. 149671, July 21, 2006.(j/

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue otherwise known as the Omnibus Investment Code of 1987 ("OIC"), and other special laws. As regards the first essential element, petitioner is a VAT- registered entity, as already established earlier. Relative to the second essential element, any VAT registered person claiming VAT zero-rated sales, such as petitioner, must present, among others, the following documents: 1. the sales invoice or official receipt as proof of sale of goods or services; and 2. any proof of the buyer's entitlement to tax incentives under other special laws (i.e., Certificates of Registration with the PEZA pursuant to RA No. 7916, as amended, for the pertinent period/taxable year). For the first type of document, in proving its zero-rated sales, petitioner must comply with the pertinent invoicing requirements, containing all the required information under Section 113(A) and (B) of the NIRC of 1997, as amended, to wit: "SEC. 113. Invoicing and Accounting Requirements for VAT-registered Persons. - (A) Invoicing Requirements. - A VAT-registered person shall issue: (1) A VAT invoice for every sale, barter or exchange of goods or properties; and (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: (Jf

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue (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: (a) The amount of the tax shall be shown as a separate item in the invoice or receipt; (b) If the sale is exempt from value-added tax, the term 'VAT-exempt sale' shall be written or printed prominently on the invoice or receipt; (c) If the sale is subject to zero percent (0%) value- added tax, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; (d) If the sale involves goods, properties or services some of which are subject to and some of which are VAT zero-rated or VAT-exempt, the invoice or receipt shall clearly indicate the break-down of the sale price between its taxable, exempt and zero-rated components, and the calculation of the value-added tax on each portion of the sale shall be shown on the invoice or receipt: Provided, That the seller may issue separate invoices or receipts for the taxable, exempt, and zero-rated components of the sale. (3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; and (4) In the case of sales in the amount of One thousand pesos (P1,000) or more where the sale or transfer is made to a VAT-registered person, the name, business style, if any, address and Taxpayer Identification Number (TIN) of the purchaser, customer or client." The foregoing provisions are further implemented by Section 4.113-1(A) and (B) of RR No. 16-05, as amended, to wit-(!//

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue "SEC. 4.113-1. Invoicing Requirements. - (A) A VAT-registered person shall issue:- (1) A VAT invoice for every sale, barter or exchange of goods or properties; and (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; (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: (a) The amount of tax shall be shown as a separate item in the invoice or receipt; (b) If the sale is exempt from VAT, the term 'VAT-exempt sale' shall be written or printed prominently on the invoice or receipt; (!1

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue (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; (d) If the sale involves goods, properties or services some of which are subject to and some of which are VAT zero-rated or VAT-exempt, the invoice or receipt shall clearly indicate the break- down of the sale price between its taxable, exempt and zero-rated components, and the calculation of the VAT on each portion of the sale shall be shown on the invoice or receipt. The seller has the option to issue separate invoices or receipts for the taxable, exempt, and zero-rated components of the sale. (3) In the case of sales in the amount of one thousand peso (P1,000.00) or more where the sale or transfer is made to a VAT-registered person, the name, business style, if any, address and TIN of the purchaser, customer or client, shall be indicated in addition to the information required in (1) and (2) of this Section." In addition to the above requirements, the invoices and official receipts must be duly registered with the BIR as prescribed under Section 237 in relation to Section 238 of the NIRC of 1997, as amended, to wit: "SEC. 237. Issuance of Receipts or Sales or Commercial Invoices. - All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at Twenty- five pesos (P25.00) or more, issue duly registered receipts or sales or commercial invoices, prepared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: xxx" "SEC. 238. Printing of Receipts or Sales or Commercial Invoices. - All persons who are engaged in business shall secure from the Bureau of Interna~

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Revenue an authority to print receipts or sales or commercial invoices before a printer can print the same. No authority to print receipts or sales or commercial invoices shall be granted unless the receipts or invoices to be printed are serially numbered and shall show, among other things, the name, business style, Taxpayer Identification Number (TIN) and business address of the person or entity to use the same, and such other information that may be required by rules and regulations to be promulgated by the Secretary of Finance, upon recommendation of the Commissioner." In Eastern Telecommunications Philippines, Inc. vs. Commissioner ofInternal Revenue}6 the Supreme Court held: "An applicant for a claim for tax refund or tax credit must not only prove entitlement to the claim but also compliance with all the documentary and evidentiary requirements. Consequently, the old CTA, as affirmed by the CTA en bane, correctly ruled that a claim for the refund of creditable input taxes must be evidenced by a VAT invoice or official receipt in accordance with Section 110(A)(1) of the NIRC. Sections 237 and 238 of the same Code as well as Section 4.108-1 of RR No. 7-95 provide for the invoicing requirements that all VAT-registered taxpayers should observe, such as: (a) the BIR Permit to Print; (b) the Tax Identification Number of the VAT-registered purchaser; and (c) the word 'zero-rated' imprinted thereon. Thus, the failure to indicate the words 'zero- rated' on the invoices and receipts issued by a taxpayer would result in the denial of the claim for refund or tax credit. xxx." (Emphasis added) Based on the foregoing jurisprudential pronouncements, it is vital for a taxpayer claiming tax refund/credit on its input taxes attributable to its zero-rated sales to prove that it had followed the invoicing requirements under the law. f11 66 G.R. No. 183531, March 25,2015.

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue In its Quarterly VAT Return for the 1st quarter of 2008,67 petitioner declared total sales amounting to P257,254,403.16, which included zero-rated sales/receipts of P199,197,257.57, as shown as follows: Vatable Sales/Receipts P57,054,748.75 Zero-Rated Sales/Receipts 199,197,257.57 Exempt Sales/Receipts Total Sales/Receipts 1,002,396.84 p 257,254,403.16 Petitioner submitted the invoices and official receipts in support of its declared zero-rated sales, which were sequentially enumerated in petitioner's Schedule of Zero-rated Sales.68 After examining the sum of the amounts in the said Schedule, this Court observes that there is a discrepancy in the amount of P235,556.93, which should be disallowed outright on the ground that the same is without supporting zero-rated invoice or official receipt, viz: Total Zero-Rated Sales per VAT Return Zero-Rated Sales for Total Zero-Rated Sales per Schedule the 1st Quarter of For the month of January 2008 (Exhibit "P-86") 2008 For the month of February 2008 (Exhibit "P-87") p 199,197,257.57 For the month of March 2008 (Exhibit "P-88") Total 69,967,257.15 Difference 68,398,247.35 60,596,196.14 p 198,961,700.64 p 235,556.93 Upon further examination of the invoices and official receipts supporting its claimed zero-rated sales, in addition to the above disallowance, the sales in the total amount of P42,541,710.08 should likewise be disallowed since the invoices related to the pertinent sale of goods are not stamped or printed with the phrase "zero-rated sales", and some of its sale of services are without supporting VAT "zero-rated" official receipts, the details of which are as follows: 67 Exhibit "P-9", Docket- Vol. III, pp. 1749 to 1750. 68 Exhibits "P-86" "P-87'' and "P-88" �~ ' '

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Amount of Sales Exhibit No. Date69 Supported by invoice not stamped/ )rinted with the phrase "zero-rated sales" Franke Foodservice Systems Phils Inc 1/3/2008 p 16,000.00 "P-23-42" Franke Foodservice Systems Phils Inc 1/3/2008 1,900.00 "P-23-43" Franke Foodservice Systems Phils Inc 1/8/2008 12,800.00 "P-23-108" Franke Foodservice Systems Phils Inc 1/8/2008 1,900.00 "P-23-109" Franke Foodservice Systems Phils Inc 1/10/2008 16,000.00 "P-23-162" Franke Foodservice Systems Phils Inc 1/10/2008 9,600.00 "P-23-163" Franke Foodservice Systems Phils Inc 1/11/2008 9,600.00 "P-23-203" Franke Foodservice Systems Phils Inc 1/14/2008 12,800.00 "P-23-221" Franke Foodservice Systems Phils Inc 1/21/2008 19,200.00 "P-23-344" Franke Foodservice Systems Phils Inc 1/21/2008 16,000.00 "P-23-345" Franke Foodservice Systems Phils Inc 1/21/2008 1,900.00 "P-23-346" Hitachi Global Storage Technologies 1/22/2008 54,683.02 "P-23-369" Philippines Franke Foodservice Systems Phils Inc 1/23/2008 950.00 "P-23-384" Franke Foodservice Systems Phils Inc 1/23/2008 12,800.00 "P-23-385" Franke Foodservice Systems Phils Inc 1/23/2008 950.00 "P-23-386" Franke Foodservice Systems Phils Inc 1/25/2008 12,800.00 "P-23-417" Franke Foodservice Systems Phils Inc 1/25/2008 9,600.00 "P-23-418" Franke Foodservice Systems Phils Inc 1/25/2008 13,200.00 "P-23-419" Franke Foodservice Systems Phils Inc 1/30/2008 9,600.00 "P-23-496" Franke Foodservice Systems Phils Inc 1/30/2008 16,000.00 "P-23-497" Franke Foodservice Systems Phils Inc 1/30/2008 2,850.00 "P-23-498" Hitachi Global Storage Technologies 1/30/2008 18,413.55 "P-23-505" Philippines AGC Flat Glass Phils., Inc. 1/31/2008 5,050,406.92 "P-23-552" AGC Flat Glass Phils., Inc. 1/31/2008 6,400,501.38 "P-23-553" Alplus-Sunpower Bldg.2 1/31/2008 1,617,915.53 "P-23-574" Imasen Philippine Manufacturing Corp 1/31/2008 140,930.00 "P-23-581" AGC Flat Glass Phils., Inc. 1/31/2008 518,541.72 "P-23-594" AGC Flat Glass Phils., Inc. 1/31/2008 200.00 "P-23-617" Alplus-Samsung C120 2/2/2008 203,130.00 "P-23-628" AGC Flat Glass Phils., Inc. 2/2/2008 58,855.70 "P-23-648" Franke Foodservice Systems Phils Inc 2/7/2008 16,000.00 "P-23-743" Franke Foodservice Systems Phils Inc 2/7/2008 12,800.00 "P-23-744" Franke Foodservice Systems Phils Inc 2/7/2008 950.00 "P-23-745" Franke Foodservice Systems Phils Inc 2/8/2008 22,400.00 "P-23-747" Franke Foodservice Systems Phils Inc 2/8/2008 1,900.00 "P-23-748" Franke Foodservice Systems Phils Inc 2/11/2008 12,800.00 "P-23-782" AMI Semiconductor Philippines, Inc. 2/12/2008 556,672.50 "P-23-803" Franke Foodservice Systems Phils Inc 2/13/2008 12,800.00 "P-23-832" Franke Foodservice Systems Phils Inc 2/13/2008 2,850.00 "P-23-833" Franke Foodservice Systems Phils Inc 2/18/2018 16,000.00 "P-23-881" ISPL (Phils.) Inc. 2/18/2018 45,600.00 "P-23-886" Franke Foodservice Systems Phils Inc 2/21/2008 9,600.00 "P-23-937" 69 Date format: Month/Day/Year CJt1

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Amount of Sales Exhibit No. Date69 Franke Foodservice Systems Phils Inc 2/21/2008 1,900.00 "P-23-938" Franke Foodservice Systems Phils Inc 2/22/2008 9,600.00 "P-23-957" Franke Foodservice Systems Phils Inc 2/22/2008 1,900.00 "P-23-958" ISPL Phils Inc 2/22/2008 45,600.00 "P-23-971" Fastech Electronique Inc 2/22/2008 5,000.00 "P-23-978" Franke Foodservice Systems Phils Inc 2/27/2008 19,200.00 "P-23-995" Franke Foodservice Systems Phils Inc 2/27/2008 9,600.00 "P-23-996" Franke Foodservice Systems Phils Inc 2/27/2008 3,200.00 "P-23-997" Franke Foodservice Systems Phils Inc 2/27/2008 19,800.00 "P-23-998" Franke Foodservice Systems Phils Inc 2/27/2008 19,800.00 "P-23-999" Franke Foodservice Systems Phils Inc 2/27/2008 1,900.00 "P-23-1000" Franke Foodservice Systems Phils Inc 2/27/2008 1,900.00 "P-23-1001" Franke Foodservice Systems Phils Inc 2/27/2008 2,400.00 "P-23-1002" ISPL Phils Inc 2/27/2008 45,600.00 "P-23-1003" AMI Semiconductor Philippines, Inc. 2/28/2008 185,557.50 "P-23-1016" AMI Semiconductor Philippines, Inc. 2/29/2008 43,045.00 "P-23-1116" AMI Semiconductor Philippines, Inc. 2/29/2008 5,104.00 "P-23-1117" AGC Flat Glass Phils., Inc. 2/29/2008 4,799,692.30 "P-23-1128" AGC Flat Glass Phils., Inc. 2/29/2008 5,715,507.38 "P-23-1129" Alplus-Sunpower Bldg 2 2/29/2008 1,039,574.72 "P-23-1143" Imasen Philippine Manufacturing Corp 2/29/2008 105,060.00 "P-23-1150" AGC Flat Glass Phils., Inc. 2/29/2008 425,776.75 "P-23-1162" Shi Mfg & Services (Phils) Inc 2/29/2008 222,383.60 "P-23-1164" AMI Semiconductor Philippines, Inc. 2/29/2008 "P-23-1170" AGC Flat Glass Phils., Inc. 2/29/2008 400.00 "P-23-1185" Alplus Samsung C120 3/1/2008 200.00 "P-23-1201" AGC Flat Glass Phils., Inc. 3/1/2008 201,800.00 "P-23-1220" Franke Foodservice Systems Phils Inc 3/3/2008 58,470.34 "P-23-1236" ISPL Phil Inc 3/3/2008 1,900.00 "P-23-1237" Franke Foodservice Systems Phils Inc 3/4/2008 45,600.00 "P-23-1278" ISPL Phil Inc 3/5/2008 9,600.00 "P-23-1285" Franke Foodservice Systems Phils Inc 3/5/2008 45,600.00 "P-23-1286" Franke Foodservice Systems Phils Inc 3/5/2008 1,600.00 "P-23-1293" Franke Foodservice Systems Phils Inc 3/6/2008 9,600.00 "P-23-1303" Franke Foodservice Systems Phils Inc 3/7/2008 1,600.00 "P-23-1323" Franke Foodservice Systems Phils Inc 3/7/2008 9,600.00 "P-23-1324" Franke Foodservice Systems Phils Inc 3/7/2008 6,400.00 "P-23-1325" Franke Foodservice Systems Phils Inc 3/7/2008 1,900.00 "P-23-1326" ISPL Phil Inc 3/10/2008 1,900.00 "P-23-1349" ISPL Phil Inc 3/10/2008 45,600.00 "P-23-1350" Franke Foodservice Systems Phils Inc 3/10/2008 45,600.00 "P-23-1351" Franke Foodservice Systems Phils Inc 3/10/2008 12,800.00 "P-23-1352" Franke Foodservice Systems Phils Inc 3/13/2008 9,600.00 "P-23-1422" Franke Foodservice Systems Phils Inc 3/13/2008 28,800.00 "P-23-1423" Franke Foodservice Systems Phils Inc 3/17/2008 1,900.00 "P-23-1460" Franke Foodservice Systems Phils Inc 3/17/2008 22,400.00 "P-23-1461" ISPL Phil Inc 3/17/2008 1,900.00 "P-23-1463" 45,600.00 C!J1

DECISION CfA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner of Internal Revenue Name of Customer Invoice Amount of Sales Exhibit No. Date69 "P-23-1508" ISPL Phil Inc 3/19/2008 45,600.00 "P-23-1509" "P-23-1549" ISPL Phil Inc 3/19/2008 45,600.00 "P-23-1550" "P-23-1551" Franke Foodservice Systems Phils Inc. 3/24/2008 16,000.00 "P-23-1552" "P-23-1553" Franke Foodservice Systems Phils Inc. 3/24/2008 16,000.00 "P-23-1554" "P-23-1605" Franke Foodservice Systems Phils Inc. 3/24/2008 9,600.00 "P-23-1606" "P-23-1607" Franke Foodservice Systems Phils Inc. 3/24/2008 1,200.00 "P-23-1610" "P-23-1657" Franke Foodservice Systems Phils Inc. 3/24/2008 800.00 "P-23-1658" "P- 23-1659" Franke Foodservice Systems Phils Inc. 3/24/2008 3,000.00 "P-23-1660" "P-23-1702" Franke Foodservice Systems Phils Inc. 3/27/2008 9,600.00 "P-23-1703" "P-23-1731" Franke Foodservice Systems Phils Inc. 3/27/2008 1,900.00 "P-23-1732" "P-23-1747" Franke Foodservice Systems Phils Inc. 3/27/2008 12,800.00 "P-23-1753" "P-23-1765" ISPL (Phils.) Inc. 3/27/2008 45,600.00 "P-23-1767" "P-23-1774" Franke Foodservice Systems Phils Inc. 3/31/2008 16,500.00 "P-23-1789" Franke Foodservice Systems Phils Inc. 3/31/2008 12,800.00 "P-23-27" "P-23-601" Franke Foodservice Systems Phils Inc. 3/31/2008 9,600.00 "P-23-603" "P-23-607" Franke Foodservice Systems Phils Inc. 3/31/2008 1,900.00 "P-23-608" "P-23-609" Shi Mfg. & Services (Phils.), Inc. 3/31/2008 6,500.00 "P-23-610" Shi Mfg. & Services (Phils. ), Inc. 3/31/2008 6,500.00 "P-23-612" AGC Flat Glass Phils. Inc. 3/31/2008 4,807,314.46 "P-23-614" "P-23-619" AGC Flat Glass Phils. Inc. 3/31/2008 5,903,710.89 "P-23-621" "P-23-622" Alplus-Sunpower Bldg. 2 3/31/2008 1,184,102.40 "P-23-623" "P-23-625" Imasen Philippine Manufacturing Corp. 3/31/2008 150,450.00 "P-23-649" "P-23-1167" AGC Flat Glass Phils. Inc. 3/31/2008 516,513.71 "P-23-1168" "P-23-1171" Shi Mfg. & Services (Phils.), Inc. 3/31/2008 843,849.54 AMI Semiconductor Philippines Inc. 3/31/2008 400.00 AGC Flat Glass Phils. Inc. 3/31/2008 200.00 Sub-total 41,977,912.91 Sales of service not supported by "zero-rated" official receipts Samsung Electro-Mechanic Philippines 1/2/2008 4,500.00 Amkor Technology Philippines Inc. 1/31/2008 36,400.00 Analog Devices Gen. Trias 1/31/2008 5,040.00 Cirtek Electronics Corporation 1/31/2008 2,050.00 Continental Temic Electronics Phils. 1/31/2008 4,200.00 Continental Temic Electronics Phils. 1/31/2008 2,500.00 Integrated Microelectronics Inc.- 1/31/2008 5,400.00 Isahava Kyocera Kinseki Philippines, Inc. 1/31/2008 1,650.00 MSM Manila Inc. 1/31/2008 5,000.00 ON Semiconductor Phils., Inc. 1/31/2008 700.00 Ibiden Philippines, Inc. 1/31/2008 5,200.00 TANN Philippines 1/31/2008 375.00 Temic Automotive Philippines 1/31/2008 2,500.00 Yutaka Manufacturing Philippines Inc 1/31/2008 12,500.00 Samsung Electro-Mechanic Philippines 2/2/2008 4,500.00 Air Water Philippines Inc 2/29/2008 3,632.40 Amkor Technology Philippines Inc 2/29/2008 36,400.00 Analog Devices Gen Trias 2/29/2008 5,040.00 (1')

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Amount of Sales Exhibit No. Date69 Austria Microsystems Phils Inc 212912008 2,500.00 "P-23-1172" 2,050.00 "P-23-1175" Cirtek Electronics Corporation 2/29/2008 4,000.00 "P-23-1176" 2,500.00 "P-23-1177" Continental Temic Electronics Phils 2/29/2008 Continental Temic Electronics Phils 2/29/2008 Integrated Microelectronics Inc - 2/29/2008 5,400.00 "P-23-1178" Isahaya Ju-Young Electronics Phils Inc 2/29/2008 200.00 "P-23-1179" 1,950.00 "P-23-1180" Kyocera Kinseki Philippines Inc 2/29/2008 3,300.00 "P-23-1181" 5,000.00 "P-23-1182" Littlefuse Philippines Inc 2/29/2008 2,670.00 "P-23-1183" 28,500.00 "P-23-1186" MSM Manila Inc 2/29/2008 "P-23-1188" 700.00 "P-23-1190" Orient Semiconductor Electronics 2/29/2008 5,200.00 "P-23-1191" "P-23-1192" Samsung Electro-Mechanic Philippines 2/29/2008 375.00 "P-23-1195" 2,500.00 "P-23-1221" ON Semiconductor Phils Inc 2/29/2008 7,500.00 "P-23-1494" 4,500.00 "P-23-1705" Ibiden Philippines Inc 2/29/2008 77,500.00 "P-23-1771" 152,301.65 "P-23-1772" TANN Philippines 2/29/2008 3,768.12 "P-23-1775" 36,400.00 "P-23-1778" Temic Automotive Philippines 2/29/2008 5,040.00 "P-23-1779" 2,410.00 "P-23-1780" Yutaka Manufacturing Philippines Inc 2/29/2008 6,000.00 2,500.00 Samsung Electro Mechanic Philippines 3/1/2008 Ionics Ems Inc. Plant 3 3/18/2008 NSG Micro Optics Phils., Inc. 3/31/2008 Air Water Philippines Inc. 3/31/2008 Amkor Technology Philippines Inc. 3/31/2008 Analog Devices Gen. Trias 3/31/2008 Cirtek Electronics Corporation 3/31/2008 Continental Temic Electronics Phils. 3/31/2008 Continental Temic Electronics Phils. 3/31/2008 Integrated Microelectronics Inc. - 3/31/2008 5,400.00 "P-23-1781" Isahava Ju-Young Electronics Phils. Inc. 3/31/2008 200.00 "P-23-1782" 1,500.00 "P-23-1783" Kyocera Kinseki Philippines Inc. 3/31/2008 3,600.00 "P-23-1784" 5,000.00 "P-23-1785" Littlefuse Philippines Inc. 3/31/2008 2,670.00 "P-23-1786" "P-23-1787" MSM Manila, Inc. 3/31/2008 800.00 "P-23-1790" 23,500.00 "P-23-1792" Orient Semiconductor Electronics 3/31/2008 "P-23-1794" 700.00 "P-23-1795" PASAR 3/31/2008 5,200.00 "P-23-1796" "P-23-1799" Samsung Electro-Mechanic Philippines 3/31/2008 375.00 2,500.00 ON Semiconductor Phils, Inc. 3/31/2008 10,000.00 Ibiden Philippines Inc. 3/31/2008 563,797.17 p 42,541,710.08 TANN Philippines 3/31/2008 Temic Automotive Philippines 3/31/2008 Yutaka Manufacturing Philippines Inc. 3/31/2008 Sub-total GRAND TOTAL Moreover, for the second type of document in proving zero- rated sales, it must further be established that petitioner's customers are indeed PEZA-registered entities subject to zero-rated VAT. C1l

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Relative thereto, petitioner submitted the Letter of the then PEZA Director General, Lilia B. De Lima dated November 30, 2010/0 confirming the issuance of VAT zero-rating certifications to the following clients of petitioner, to wit: 2008 VAT Zero Rating PEZA PEZA Reg. Date Reg. No. Date No. Enterprise No. Issued 04-35 17 May 2004 1 2PI MIRCROWAVE TECHNOLOGY 28 May 2007, - - 07-33 as amended 2 AGC FLAT GLASS PHILIPPINES, 2008-561 31 January INC. 04-17 on 29 June 2008 2007 3 AICHI FORGING COMPANY OF 2008-076 18 ASIA, INC. 03 March December 2004 2007 AIR LIQUIDE PIPELINE UTILmES 4 SERVICES (ALPLUS), INC. 99-045 15 March 06 2008-417 22 January Formerly Gateway Air Liquide 15 July 99 2008 Industrial Gas Co. Inc. 5 AIR WATER PHILIPPINES, INC. 02-055 23 October 2008-298 16 January 04-83 2002 2008 6 AMI SEMICONDUCTOR 95-132 2008-741 22 December 7 February 7 AMCOR ANAM ADVANCED 2004 - 2008 PACKING INC. 6 December - 1995 AMKOR TECHNOLOGY 8 PHILIPPINES, INC. 00-092 3 September 2008-284 15 January Formerly Amkor Technology 2003 2008 Philippines 9 AM PLUS TECHNOLOGIES INC. 07-13-L 9 August 2008-367 21 January 2007 2008 10 ANALOG DEVICES GE TRIAS, INC. 95-117 2008-018 12 06-10 6 November 2008-629 11 AUSTRIAMICROSYSTEM, INC. 1995 December BELL ELECTRONICS 2007 30 January 12 CORPORATION 2006 1 February CAM MECHATRONIC (PHILS.), 2008 13 INC. 00-058 7 July 2000 - - 14 CARDINAL MRI CENTER INC. 95-106 4 October 2008-1254 21 July 2008 - 1995 - - 95-113 - 15 CASTEM PHILIPPINES 2008-531 29 January CORPORATION 27 October 2008 1995,as amended on C1l 70 Exhibit "P-85".

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue 2008 VAT Zero Rating PEZA PEZA Reg. Date No. Enterprise Reg. No. Date No. Issued 25 June 2002 16 CEBU MICROELECTRONICS, INC. 93-40 23 August 2008-807 13 98-022 1993 2008-442 February 17 CIRTEK ELECTRONICS CORP. 04-70 2008-439 01-055 24 March 2008 18 CONTINENTAL TEMIC 1998 2008-1410 28 January ELECTRONICS INC. - 10 November - 2008 19 CPL PACKAGING, INC. 00-102 2004 23 January 79-04 20 CRL ENVIRONMENTAL 11 September 2008 CORPORATION - 2001, as 3 96-004 amended on September 17 July 2007 00-082 2008 03-065 - 01-063 - 97-026 21 EIGHTECH MANUFACTURING 94-28 19 December 2008-280 15 January CORPORATION 95-59 2000 2008-257 2008 22 ESSILOR MFG. PHILIPPINES, INC. 3 April 1979, - 11 January Formerly Bataan Optical, Inc. as amended 2008 23 EUROWOOD PRODUCTS AND on 25 - TECHNIQUE MFG CORPORATION January 1994 - 24 FASTECH ELECTRONIQUE, INC. 15 January 2008-762 8 February 96, as 2008 25 FRANKE FOODSERVICE SYSTEM 2008-027 PHILS., INC. amended on 2008-998 12 2 October 2008-025 December 26 FUJIELASTOMERS MANILA CORP. 1998 2008-105 16 October 2008-112 2007 27 FUJITSU TEN CORPORATION OF 2000 2008-342 THE PHILIPPINES - 1 September 28 HEREAUS ELECTRONIC 2003 12 MATERIALS PHILS., INC. December 29 October 29 HITACHI GLOBAL STORAGE 2001 2007 TECHNOLOGIES PHILS., CORP. 21 21 March 30 HITACHI INDUSTRIAL 1997 December MACHINERY PHILIPPINES CORP. 2007 11 May 1994 27 31 May 2008 December 2007 17 January 2008 C1l

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue 2008 VAT Zero Rating PEZA PEZA Reg. Date Reg. No. Date No. Enterprise No. Issued 97-010 6 February 31 HOYA GLASS DISK PHILIPPINES, 00-061 1997 2008-203 8 January INC. 96-114 2008 06-72 20 July 2000 27 94-59 11 January 32 IBIDEN PHILS., INC. 1996 2008-129 December 00-085 27 November 2007 00-039 2006 33 IMASEND PHILIPPINES MFG., 2008-159 2 January CORP. 05-01-IT 15 August 2008 1994,as 34 INTEGRATED FLOW SYSTEMS 96-068 amended on 2008-1294 24 July LLC. 07-14-IT 19 September 2008 91-044 35 INTEGRATED 96-108 2007 2008-266 14 January MICROELECTRONICS, INC. 96-091 2008 03-039 17 October 36 1-0MNI PRECISION, INC. 98-010 2000 2008-805 13 37 IONICS EMS, INC. 97-016 2008-083 February 38 IONICS EMS, INC. 17 April 2000 2008-084 93-02 2008 39 ISPL INC. 6 January 2008-816 19 2005 2008-291 40 JGC PHILIPPINES, INC. 2008-605 December 4 June 1996, 2008-324 2007 41 JU-YOUNG ELECTRONICS as amended 2008-099 19 (PHILS.). INC. 2008-592 on 1 July 2008-277 December 42 KATOLEC PHILIPPINES 2005 2008-007 2007 CORPORATION 2008-235 27 February 13 43 KEC-ASTRON PHILS., CORP. 2007 February 44 KEDICA PHILIPPINES 29 November 2008 CORPORATION 1991 15 January 45 KOMYO PHILIPPINE LOGISTIC 17 October 2008 SERVICE CORPORATION 1996 1 February 46 KYOCERA KINSEKI PHILS, INC. 2 August 2008 1996 47 LAGUNA ELECTRONICS, INC. 17 January 3 June 2003 2008 21 3 February 1998 December 2007 12 December 2007 31 January 2008 17 October 1998 15 January 2008 12 December 2007 10 January 2008 (JIJ

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue 2008 VAT Zero Rating PEZA PEZA Reg. Date No. Enterprise Reg. No. Date No. Issued LEXMARK RESEARCH & 14 DEVELOPMENT CORPORATION 48 01-009-IT 17 July 2001 2008-837 February 2008 49 LITTELFUSE PHILS., INC. 00-060 14 July 2000 2008-691 5 February 95-121 2008 01-051 14 November 50 LUZON ELECTRONICS 93-66 1995 2008-236 10 January TECHNOLOGY, INC. 2008 - 21 August 51 MAENO GIKEN, INC. 2001 2008-427 23 January 2008 28 December 52 MASUDA PHILIPPINES, INC. 1993 2008-265 14 January 2008 - 53 MINDANAO SILICON METAL - - CORPORATION 54 MITSUBA MANUFACTURING 99-081 23 December 2008-349 18 January BATANGAS CORPORATION 1999, as 2008 96-107 2008-694 55 MITSUBA PHILIPPINES CORP. 99-071 amended on 5 February 97-009 12 April 2007 - 2008 56 MME TECHNOLOGIES, INC. 2008-C-93 01-028 14 October 2008-384 - MSM MANILA, INC. 96-080 1996,as 2008-093 57 Formerly Precision Springs Manila 03-068 2008-207 21 January amended on 2008-231 2008 Incorporated 93-68 12 January 2008-109 20 58 NIDEC PHILIPPINES CORP. 1998 2008-0594 December 25 November 59 NIDEC PHILIPPINES CORP. 2007 1999 8 January 60 NIKKO MATERIALS PHILIPPINES, 29 January INC. 2008 1997, as 10 January 61 NSG MICRO OPTICS PHILS., INC. amended on 29 June 2004 2008 62 NT PHILIPPINES, INC. 21 20 December 2007 December 2007 4 April 2001 31 January 3 July 1996 2008 10 September ~ 2003 29 December 1993, as amended on 27 November 1996

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue 2008 VAT Zero Ratina PEZA PEZA Reg. Date Rea. No. Date No. Enterprise No. Issued 94-77 28 September 63 NXP SEMICONDUCTORS 1994, as 2008-476 28 January PHILIPPINES, INC. 07-36 2008 97-051 amended on 64 ON SEMICONDUCTOR PHILS., 96-102 3 January 2008-217 8 January INC. 82-40 2007 2008-232 2008 95-135 2008-950 65 OPTODEV, INC. 96-058 2 July 2007 2008-218 10 January 04-34 2008-1119 2008 66 ORIENT SEMICONDUCTOR 00-081 10 July 1997 29 ELECTRONICS PHILIPPINES, INC. 97-074 89-08 3 October February 67 PHILIPPINES ASSOCIATED 95-76 1996 2008 SMELTING & REFINING CORP. 81-07 23 September 9 January 68 PHILIPPINE TOEI CHEMICAL 1982 2008 CORPORATION 01-008 2 May 95-41 12 December 2008 99-048 1995 69 PRICON MICROELECTRONICS, 2008-672 4 February INC. 14 May 1996, 2008 as amended 70 PSI TECHNOLOGIES, INC. on 10 May 2008-1015 24 March 2008-170 2008 71 ROHM ELECTRONICS PHILS., INC. 2005 2008-138 2008-537 3 January 72 SAMSUNG ELECTRO-MECHANICS 17 May 2004 2008 PHILS., CORP. 2008-800 27 09 October 73 SAN TECHNOLOGY, INC. 2000 December 2007 74 SANRITSU GREAT 16 October INTERNATIONAL CORP. 1997 7 January 2008 03 February 1989 13 February 3 August 1995,as 2008 amended on 75 SHELL GAS EASTERN, INC. 26 July 2006 2008-0925 27 Formerly Shell Gas Phils., Inc. 23 September February 1981, as amended on 2008 29 March 76 SHI MANUFACTURING & 2008-254 11 January SERVICES (PHILS.), INC. 2007 2008-445 2008 26 January 2008-150 77 SHIDENGEN PHILIPPINES 28 January CORPORATION 2001 2008 28 78 SHIN-ETSU MAGNETIC PHILS., 6 April1995 INC. December OS August 2007 1999 ~

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue 2008 VAT Zero Rating PEZA PEZA Reg. Date Reg. No. Date No. Enterprise No. Issued - - 79 SHINKOZAN CORP. (MEGASTAMP) - - 96-007 15 January SHOWA ALUMINUM 1996 23 January 03-055 2008 80 MANUFACTURING PHILS., 2008-438 02-016 CORPORATION - SUNPOWER PHILIPPINES 20 October 28 January 28-0ct 2006 2008 81 MANUFACTURING LTD. (BRANCH 2008-457 05-52 OFFICE) 04-33 82 TANN PHILIPPINES 16 April 2002 2008-0252 11 January 01-010 2008 83 TEAL PACIFIC, LLC - - 97-036 - 84 TEAM PACIFIC CORP. 94-72 18 March - 2010 - 85 TECHNOL EIGHT PHILS. - 2008-043 CORPORATION 1 September 13 04-32 2005 2008-435 December 86 TEMIC AUTOMOTIVE (PHILS.), INC. 95-21 17 May 2004 2008-0451 2007 07-01-DM 23 January 87 TI (PHILIPPINES), INC. 1 March 2008-1032 Formerly Texas Instruments Clark 03-040 2001, as 2008-490 2008 amended on 88 TOKYO STEEAL PHILIPPINES - 07 June 2007 - 28 January CORP. 2008 94-31 07 May 1997 2008-215 89 TONG HSING ELECTRONICS 27 March (PHILIPPINES), INC. 19 September 2008-096 2008 1994 90 TST, INC. 2008-0614 28 January - 2008 91 VISHAY (PHILS.), INC. - 17 May 2004 - 92 WU KONG SINGAPORE PTE., LTD. 2008-394 17 February 8 January 93 YAMAHA MOTORS PHILS. INC. 1995 - 2008 20 94 YKY PARTS CORPORATION 5 September 2007 December 95 YOKOMAHA TIRE PHILIPPINES 2007 3 June 2003 96 YUTAKA MANUFACTURING 1 February (PHILIPPINES), INC. - 2008 23 May 1994 - 21 January 2008 Notably, in the said November 30, 2010 Letter of Director General De Lima, the PEZA indicated that the following entities are: (1) with no certification issued, (2) with cancelled certification, (3) r1/

DECISION CfA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue not PEZA-registered, (4) registered only in year 2010, or (5) not entitled to VAT zero-rating, to wit: 1. No Certification Issued: 2PI Microwave Technology Bell Electronics Corporation Fujielastomers Manila Corp. MME Technologies, Inc. 2. Cancelled dated July 11, 2002 (Taken over Amkor Tech): Amcor Anam Advanced Packing, Inc. 3. Not registered with PEZA: Cardinal MRI Center, Inc. CRL Environment! Corporation Eurowood Products and Technique Mfg Corporation Mindanao Silicon Metal Corporation Shinkozan Corp. (Megastamp) Teal Pacific, LLC TST, Inc. Yokohama Tire Philippines 4. Registered with PEZA only in 2010: Team Pacific Corp. 5. Not entitled to VAT zero-rating: Yamaha Motors Phils., Inc. Moreover, the following entities were neither listed in the November 30, 2010 Letter of Director General De Lima, nor have PEZA certification for VAT zero-rating, to wit: 1. Amkor Anam Technology-P1 2. Eightech Tectron Phils. Inc. 3. HHIC-Phil Inc. 4. Nidec Subic Philippines Corporation 5. Pilipinas Shell Petroleum Corp- Shell Gas Eas 6. PSI Technologies Laguna Inc 7. Tong Hsing 8. Walk-In Customers -- In view the above findings, the sales made to the foregoing entities in the total amount of P20,899,537.41 shall not be accorded ()'1 VAT zero-rating, detailed as follows:

DECISION CfA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Date71 Amount of Sales Exhibit No. 1. No Certification Issued by PEZA 2PI Microwave Technology Inc. 2/29/2008 p 400.00 "P-23-1184" 2PI Microwave Technology, Inc. 1/31/2008 400.00 "P-23-616" 2PI Microwave Technology Inc. 3/31/2008 400.00 "P-23-1788" Bell Electronics Corporation 1/2/2008 20,000.00 "P-23-10" Bell Electronics Corporation 1/31/2008 52,344.96 "P-23-576" Bell Electronics Corporation 1/31/2008 480.00 "P-23-605" Bell Electronics Corporation 2/2/2008 (2,250.00) "P-23-627" Bell Electronics Corporation 2/2/2008 20,000.00 "P-23-632" Bell Electronics Corporation 2/29/2008 3,600.00 "P-23-1115" Bell Electronics Corporation 2/29/2008 26,873.44 "P-23-1145" Bell Electronics Corporation 2/29/2008 480.00 "P-23-1173" Bell Electronics Corporation 3/1/2008 20,000.00 "P-23-1205" Bell Electronics Corporation 3/31/2008 37,355.02 "P-23-1749" Bell Electronics Corporation 3/31/2008 480.00 "P-23-1776" I Fujielastomers Manila Corp. 1/7/2008 45,839.74 "P-23-90" Fujielastomers Manila Corp. 1/15/2008 44,498.60 "P-23-254" Fujielastomers Manila Corp. 1/21/2008 53,459.32 "P-23-347" Fujielastomers Manila Corp. 1/25/2008 58,339.44 "P-23-436" Fujielastomers Manila Corp. 2/4/2008 88,626.25 "P-23-676" Fujielastomers Manila Corp. 2/8/2008 37,758.68 "P-23-770" Fujielastomers Manila Corp. 2/18/2018 64,561.26 "P-23-902" Fujielastomers Manila Corp. 2/28/2008 60,309.75 "P-23-1064" Fujielastomers Manila Corp. 2/29/2008 40,406.73 "P-23-1118" Fujielastomers Manila Corp. 3/7/2008 40,358.27 "P-23-1344" Fujielastomers Manila Corp. 3/13/2008 56,173.73 "P-23-1444" Fujielastomers Manila Corp. 3/26/2008 91,251.56 "P-23-1592" Fujielastomers Manila Corp. 3/31/2008 36,262.87 "P-23-1691" MME Technologies, Inc. 1/2/2008 20,705.50 "P-23-17" MME Technologies, Inc. 1/4/2008 16,750.11 "P-23-71" MME Technologies, Inc. 1/7/2008 18,276.31 "P-23-94" MME Technologies, Inc. 1/7/2008 16,313.18 "P-23-99" MME Technologies, Inc. 1/7/2008 22,503.52 "P-23-101" MME Technologies, Inc. 1/9/2008 18,336.50 "P-23-149" MME Technologies, Inc. 1/10/2008 13,945.88 "P-23-169" MME Technologies, Inc. 1/14/2008 31,895.50 "P-23-237" MME Technologies, Inc. 1/15/2008 20,746.18 "P-23-255" MME Technologies, Inc. 1/15/2008 12,589.20 "P-23-261" MME Technologies, Inc. 1/15/2008 10,294.96 "P-23-264" MME Technologies, Inc. 1/16/2008 21,780.72 "P-23-297" MME Technologies, Inc. 1/17/2008 11,884.34 "P-23-305" MME Technologies, Inc. 1/18/2019 19,316.05 "P-23-329" MME Technologies, Inc. 1/21/2008 18,764.85 "P-23-352" MME Technologies, Inc. 1/21/2008 9,381.71 "P-23-356" MME Technologies, Inc. 1/22/2008 4,025.19 "P-23-380" CJt1 71 Date format: Month/Day/Year

DECISION CfA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Amount of Sales Exhibit No. Date71 MME Technologies, Inc. 10,426.00 "P-23-394" MME Technologies, Inc. 1/23/2008 17,815.33 "P-23-434" MME Technologies, Inc. 1/25/2008 18,266.69 "P-23-437" MME Technologies, Inc. 1/25/2008 25,116.78 "P-23-457" MME Technologies, Inc. 1/28/2008 23,789.61 "P-23-461" MME Technologies, Inc. 1/28/2008 23,801.18 "P-23-464" MME Technologies, Inc. 1/28/2008 9,774.83 "P-23-483" MME Technologies, Inc. 1/29/2008 16,325.14 "P-23-506" MME Technologies, Inc. 1/30/2008 18,316.09 "P-23-527" MME Technologies, Inc. 1/31/2008 15,697.11 "P-23-540" MME Technologies, Inc. 1/31/2008 20,313.00 "P-23-639" MME Technologies, Inc. 2/2/2008 14,155.05 "P-23-675" MME Technologies, Inc. 2/4/2008 17,888.78 "P-23-680" MME Technologies, Inc. 2/4/2008 25,478.83 "P-23-681" MME Technologies, Inc. 2/4/2008 26,926.38 "P-23-699" MME Technologies, Inc. 2/5/2008 15,110.68 "P-23-728" MME Technologies, Inc. 2/6/2008 14,862.12 "P-23-765" MME Technologies, Inc. 2/8/2008 14,496.43 "P-23-771" MME Technologies, Inc. 2/8/2008 21,794.89 "P-23-793" MME Technologies, Inc. 2/11/2008 24,143.08 "P-23-799" MME Technologies, Inc. 2/11/2008 19,001.71 "P-23-815" MME Technologies, Inc. 2/12/2008 19,294.60 "P-23-844" MME Technologies, Inc. 2/13/2008 12,987.26 "P-23-893" MME Technologies, Inc. 2/18/2018 14,557.01 "P-23-897" MME Technologies, Inc. 2/18/2018 15,995.59 "P-23-903" MME Technologies, Inc. 2/18/2018 20,423.00 "P-23-905" MME Technologies, Inc. 2/18/2018 21,324.68 "P-23-907" MME Technologies Inc 2/18/2018 9,819.29 "P-23-946" MME Technologies Inc 2/21/2008 20,644.65 "P-23-948" MME Technologies Inc 2/21/2008 13,724.88 "P-23-1045" MME Technologies Inc 2/28/2008 15,700.62 "P-23-1056" MME Technologies Inc 2/28/2008 27,647.49 "P-23-1061" MME Technologies Inc 2/28/2008 15,317.64 "P-23-1065" MME Technologies Inc 2/28/2008 23,413.00 "P-23-1069" MME Technologies Inc 2/28/2008 14,292.20 "P-23-1072" MME Technologies Inc 2/28/2008 25,432.55 "P-23-1077" MME Technologies Inc 2/28/2008 "P-23-1105" MME Technologies Inc 2/29/2008 5,185.57 "P-23-1120" MME Technologies Inc 2/29/2008 19,255.21 "P-23-1211" MME Technologies Inc 3/1/2008 20,180.00 "P-23-1251" MME Technologies Inc 3/3/2008 15,194.27 "P-23-1254" MME Technologies Inc 3/3/2008 13,817.31 "P-23-1271" MME Technologies Inc 3/4/2008 13,866.06 "P-23-1294" MME Technologies Inc 3/5/2008 13,412.36 "P-23-1319" MME Technologies Inc 3/6/2008 13,784.68 "P-23-1345" MME Technologies Inc 3/7/2008 13,876.85 "P-23-1368" MME Technologies Inc 3/10/2008 15,972.84 "P-23-1370" 3/10/2008 17,909.58 (f1

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Exhibit No. Date71 Amount of Sales "P-23-1371" MME Technologies Inc 3/10/2008 17,958.20 "P-23-1391" "P-23-1417" MME Technologies Inc 3/11/2008 14,347.45 "P-23-1445" "P-23-1449" MME Technologies Inc 3/12/2008 21,225.23 "P-23-1467" "P-23-1469" MME Technologies Inc 3/13/2008 12,518.87 "P-23-1500" "P-23-1505" MME Technologies Inc 3/13/2008 15,215.85 "P-23-1532" "P-23-1557" MME Technologies Inc 3/17/2008 13,756.08 "P-23-1565" "P-23-1589" MME Technologies Inc 3/17/2008 17,508.01 "P-23-1594" "P-23-1625" MME Technologies Inc 3/19/2008 12,553.45 "P-23-1651" "P-23-1683" MME Technologies Inc 3/19/2008 22,652.11 "P-23-1690" "P-23-1695" MME Technologies Inc. 3/19/2008 17,036.76 "P-23-136" MME Technologies Inc. 3/24/2008 17,168.19 "P-23-775" "P-23-826" MME Technologies Inc. 3/24/2008 19,826.17 "P-23-851" "P-23-917" MME Technologies Inc. 3/26/2008 9,851.14 "P-23-1032" "P-23-1093" MME Technologies Inc. 3/26/2008 10,366.98 "P-23-1380" "P-23-1570" MME Technologies Inc. 3/27/2008 23,482.03 "P-23-1709" "P-23-1708" MME Technologies Inc. 3/28/2008 20,562.49 "P-23-367" MME Technologies, Inc. 3/31/2008 23,125.70 "P-23-368" "P-23-990" MME Technologies, Inc. 3/31/2008 27,208.48 "P-23-216" "P-23-298" MME Technologies, Inc. 3/31/2008 28,137.46 "P-23-487" "P-23-620" Sub-total 2,3S6,948.87 "P-23-1189" "P-23-1793" 2. Cancelled dated July 11, 2002 (Taken over Amkor Tech) "P-23-1112" "P-23-39" Amkor Anam Advanced Packaging, Inc-P3 1/9/2008 20,700.00 "P-23-599" Amkor Anam Advanced Packaging, Inc-P3 2/11/2008 13,800.00 <f1 "P-23-624" Amkor Anam Advanced Packaging, Inc-P3 2/13/2008 20,700.00 Amkor Anam Advanced Packaging, Inc-P3 2/13/2008 27,600.00 Amkor Anam Advanced Packaging Inc P3 2/19/2008 20,700.00 Amkor Anam Advanced Packaging Inc P3 2/28/2008 62,100.00 Amkor Anam Advanced Packaging Inc - P3 2/29/2008 6,900.00 Amkor Anam Advanced Packaging Inc 3/11/2008 20,700.00 Amkor Anam Advanced Packaging Inc. - P3 3/25/2008 34,500.00 Amkor Anam Advanced Packaging, Inc. - P1 3/31/2008 8,500.00 Amkor Anam Advanced Packaging, Inc. - P3 3/31/2008 20,700.00 Sub-total 2S6,900.00 3. Not registered with PEZA Cardinal MRI Center Inc. 1/22/2008 350,000.00 Cardinal MRI Center Inc. 1/22/2008 350,000.00 CRL Environmental Corporation 2/22/2008 34,400.00 Shinkozan Corp. (Megastamp) 1/11/2008 5,100.00 Shinkozan Corp. (Megastamp) 1/16/2008 5,100.00 Shinkozan Corp. (Megastamp) 1/29/2008 5,100.00 Shinkozan Corp. (Megastamp) 1/31/2008 3,000.00 Shinkozan Corp (Megastamp) 2/29/2008 3,000.00 Shinkozan Corp. (Megastamp) 3/31/2008 3,000.00 TEAL Pacific LLC 2/29/2008 1,493,320.00 TST Inc. {Tank B) 1/2/2008 24,846.60 TST, Inc. 1/31/2008 549,724.12 TST, Inc. 1/31/2008 32,200.00

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Exhibit No. Date71 Amount of Sales "P-23-660" TST Inc. (Tank B) 2/2/2008 24,375.60 "P-23-1166" "P-23-1194" TSTINC 2/29/2008 5i0,866.05 "P-23-i232" "P-23-i770" TSTINC 2/29/2008 32,200.00 "P-23-i798" "P-23-438" TST Inc Tank B 3/i/2008 24,2i6.00 "P-23-i234" "P-23-i533" TST Inc. 3/3i/2008 580,370.30 "P-23-33" TST Inc. 3/3i/2008 30,800.00 "P-23-34" "P-23-iOT" Yokohama Tire Philippines Inc. i/25/2008 423,605.00 "P-23-272" "P-23-550" Yokohama Tire Philippines Inc 3/i/2008 i90,000.00 "P-23-55i" "P-23-555" Yokohama Tire Philippines Inc. 3/i9/2008 32i,6i5.i8 "P-23-556" "P-23-654" Sub-total 4,996,838.8S "P-23-655" "P-23-667" 4. Registered with PEZA in 2010 only "P-23-668" "P-23-93i" Team Pacific Corporation i/2/2008 8,i50.00 "P-23-lliO" "P-23-i11i" Team Pacific Corporation i/2/2008 i8,000.00 "P-23-1124" "P-23-ii25" Team Pacific Corporation i/8/2008 i2,000.00 "P-23-i226" "P-23-i227" Team Pacific Corporation i/i6/2008 i2,000.00 "P-23-1196" "P-23-i699" Team Pacific Corporation i/3i/2008 265,4i9.42 "P-23-i70i" "P-23-i710" Team Pacific Corporation i/3i/2008 298,i82.24 "P-23-i727" "P-23-i728" Team Pacific Corporation i/3i/2008 i72,676.32 "P-23-4" Team Pacific Corporation i/3i/2008 i42,710.77 "P-23-66" "P-23-67" Team Pacific Corporation 2/2/2008 8,i50.00 "P-23-i35" "P-23-i87" Team Pacific Corporation 2/2/2008 i8,000.00 "P-23-206" "P-23-207" Team Pacific Corporation 2/4/2008 i2,000.00 "P-23-208" "P-23-248" Team Pacific Corporation 2/4/2008 i2,000.00 (Jt1 Team Pacific Corporation 2/2i/2008 i2,000.00 Team Pacific Corporation 2/29/2008 257,289.i5 Team Pacific Corp 2/29/2008 30i,737.6i Team Pacific Corporation 2/29/2008 i55,633.00 Team Pacific Corp 2/29/2008 i43,382.i3 Team Pacific Corporation 3/i/2008 8,i50.00 Team Pacific Corporation 3/i/2008 i8,000.00 Team Pacific Corporation 3/i8/2008 (i6,363.50) Team Pacific Corporation 3/3i/2008 211,730.i9 Team Pacific Corporation 3/3i/2008 269,856.49 Team Pacific Corporation 3/3i/2008 24,000.00 Team Pacific Corp. 3/3i/2008 14i,896.93 Team Pacific Corp. 3/3i/2008 133,023.85 Sub-total 2,639,624.60 s. Not enlisted in the PEZA confirmation letter/Not certified by PEZA Amkor Anam Technology-Pi i/29/2008 (33,750.00) Amkor Anam Technology-Pi i/4/2008 3,500.00 Amkor Anam Technology-Pi i/4/2008 i,500.00 Amkor Anam Technology-Pi i/9/2008 4i,400.00 Amkor Anam Technology-Pi i/11/2008 11,250.00 Amkor Anam Technology-Pi i/11/2008 6,000.00 Amkor Anam Technology-Pi i/11/2008 3,750.00 Amkor Anam Technology-Pi i/11/2008 3,750.00 Amkor Anam Technology-Pi i/i5/2008 7,500.00

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner of Internal Revenue Name of Customer Invoice Amount of Sales Exhibit No. Date71 Amkor Anam Technology-Pi 3,750.00 "P-23-249" Amkor Anam Technology-Pi i/i5/2008 7,500.00 "P-23-269" Amkor Anam Technology-Pi i/i6/2008 7,500.00 "P-23-270" Amkor Anam Technology-Pi i/i6/2008 7,500.00 "P-23-271" Amkor Anam Technology-P1 1/16/2008 7,500.00 "P- 23- 3 i 4 " Amkor Anam Technology-P1 1/18/2019 7,500.00 "P-23-320" Amkor Anam Technology-P1 1/18/2019 7,500.00 "P- 23- 3 2 7 " Amkor Anam Technology - Pi 1/18/20i9 7,500.00 "P-23-335" Amkor Anam Technology - P1 i/2i/2008 3,750.00 "P-23-390" Amkor Anam Technology - P1 1/23/2008 7,500.00 "P-23-407" Amkor Anam Technology-Pi 1/24/2008 1,500.00 "P-23-426" Amkor Anam Technology - P1 1/25/2008 8,500.00 "P-23-494" Amkor Anam Technology - Pi 1/30/2008 i3,800.00 "P-23-500" Amkor Anam Technology - P1 1/30/2008 48,300.00 "P-23-50i" Amkor Anam Technology - P1 i/30/2008 20,700.00 "P-23-502" Amkor Anam Technology-P1 1/30/2008 6,800.00 "P-23-530" Amkor Anam Technology-Pi 1/31/2008 8,500.00 "P-23-531" Amkor Anam Technology-P1 1/31/2008 8,500.00 "P-23-532" Amkor Anam Technology-P1 1/31/2008 8,500.00 "P-23-533" Amkor Anam Technology - Pi 1/31/2008 8,500.00 "P-23-672" Amkor Anam Technology - P1 2/4/2008 12,750.00 "P-23-673" Amkor Anam Technology - P1 2/4/2008 28,694.78 "P-23-719" Amkor Anam Technology - P1 2/6/2008 8,500.00 "P-23-720" Amkor Anam Technology - P1 2/6/2008 8,500.00 "P-23-758" Amkor Anam Technology - Pi 2/8/2008 8,500.00 "P-23-759" Amkor Anam Technology - Pi 2/8/2008 8,500.00 "P-23-784" Amkor Anam Technology - P1 2/11/2008 5,950.00 "P-23-785" Amkor Anam Techonology - P1 2/11/2008 8,500.00 "P-23-806" Amkor Anam Technology - P1 2/12/2008 69,000.00 "P-23-827" Amkor Anam Technology - P1 2/13/2008 8,500.00 "P-23-842" Amkor Anam Technology P1 2/i3/2008 i,700.00 "P-23-864" Amkor Anam Technology P1 2/i4/2018 i5,300.00 "P-23-865" Amkor Anam Technology - P1 2/14/20i8 8,500.00 "P-23-873" Amkor Anam Technology - P1 2/15/2018 8,500.00 "P-23-874" Amkor Anam Technology - P1 2/15/20i8 2,550.00 "P-23-882" Amkor Anam Technology - Pi 2/18/2018 5,950.00 "P-23-883" Amkor Anam Technology P1 2/i8/2018 8,500.00 "P- 23-914" Amkor Anam Technology P1 2/19/2008 11,900.00 "P- 23-915" Amkor Anam Technology P1 2/19/2008 8,500.00 "P-23-930" Amkor Anam Technology Pi 2/21/2008 4,250.00 "P-23-94i" Amkor Anam Technology P1 2/21/2008 8,500.00 "P-23-974" Amkor Anam Technology Pi 2/22/2008 8,500.00 "P-23-975" Amkor Anam Technology P1 2/22/2008 8,500.00 "P-23-1004" Amkor Anam Technology P1 2/27/2008 6,800.00 "P-23-1005" Amkor Anam Technology P1 2/27/2008 8,500.00 "P-23-1037" Amkor Anam Technology - P1 2/28/2008 5,950.00 "P-23-i087" Amkor Anam Technology - P1 2/29/2008 2,550.00 "P-23-i088" 2/29/2008 Cr1

DECISION CfA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Amount of Sales Exhibit No. Date71 Amkor Anam Technology - P1 8,500.00 "P-23-1089" Amkor Anam Technology - P1 2/29/2008 6,900.00 "P-23-1090" Amkor Anam Technology - P1 2/29/2008 62,100.00 "P-23-1091" Amkor Anam Technology P1 2/29/2008 9,350.00 "P-23-1261" Amkor Anam Technology P1 3/4/2008 7,650.00 "P-23-1280" Amkor Anam Technology P1 3/5/2008 5,950.00 "P-23-1281" Amkor Anam Technology P1 3/5/2008 69,000.00 "P-23-1282" Amkor Anam Technology P1 3/5/2008 69,000.00 "P-23-1304" Amkor Anam Technology P1 3/6/2008 8,500.00 "P-23-1305" Amkor Anam Technology P1 3/6/2008 8,500.00 "P-23-1334" Amkor Anam Technology P1 3/7/2008 8,500.00 "P-23-1335" Amkor Anam Technology P1 3/7/2008 8,500.00 "P-23-1343" Amkor Anam Technology P1 3/7/2008 8,500.00 "P-23-1362" Amkor Anam Technology P1 3/10/2008 8,500.00 "P-23-1378" Amkor Anam Technology P1 3/11/2008 5,100.00 "P-23-1379" Amkor Anam Technology P1 3/11/2008 8,500.00 "P-23-1407" Amkor Anam Technology P1 3/12/2008 4,250.00 "P-23-1408" Amkor Anam Technology P1 3/12/2008 4,250.00 "P-23-1409" Amkor Anam Technology P1 3/12/2008 8,500.00 "P-23-1435" Amkor Anam Technology P1 3/13/2008 8,500.00 "P-23-1436" Amkor Anam Technology P1 3/13/2008 4,250.00 "P-23-1437" Amkor Anam Technology P1 3/13/2008 4,250.00 "P-23-1438" Amkor Anam Technology P1 3/13/2008 8,500.00 "P-23-1482" Amkor Anam Technology P1 3/18/2008 8,500.00 "P-23-1483" Amkor Anam Technology P1 3/18/2008 8,500.00 "P-23-1484" Amkor Anam Technology P1 3/18/2008 8,500.00 "P-23-1485" Amkor Anam Technology P1 3/18/2008 8,500.00 "P-23-1486" Amkor Anam Technology P1 3/18/2008 8,500.00 "P-23-1487" Amkor Anam Technology P1 3/18/2008 8,500.00 "P-23-1512" Amkor Anam Technology - P1 3/19/2008 27,600.00 "P-23-1538" Amkor Anam Technology - P1 3/24/2008 8,500.00 "P-23-1541" Amkor Anam Technology - P1 3/24/2008 8,500.00 "P-23-1567" Amkor Anam Technology - P1 3/25/2008 8,500.00 "P-23-1578" Amkor Anam Technology - P1 3/26/2008 5,100.00 "P-23-1579" Amkor Anam Technology - P1 3/26/2008 8,500.00 "P-23-1612" Amkor Anam Technology - P1 3/27/2008 8,500.00 "P-23-1643" Amkor Anam Technology - P1 3/28/2008 8,500.00 "P-23-1644" Amkor Anam Technology - P1 3/28/2008 28,740.25 "P-23-1652" Amkor Anam Technology - P1 3/28/2008 8,500.00 "P-23-1663" Amkor Anam Technology - P1 3/31/2008 10,200.00 "P-23-1664" Eightech Tectron Phils., Inc. 3/31/2008 16,000.00 Eightech Tectron Phils., Inc. 1/7/2008 6,300.00 "P-23-76" Eightech Tectron Phils., Inc. 1/7/2008 3,150.00 "P-23-77" Eightech Tectron Phils., Inc. 1/7/2008 16,000.00 "P-23-78" Eightech Tectron Phils., Inc. 1/11/2008 22,300.00 "P-23-186" Eightech Tectron Phils., Inc. 1/18/2019 6,300.00 "P- 23- 3 2 8 " Eightech Tectron Phils., Inc. 1/29/2008 16,000.00 "P-23-471" 1/31/2008 "P-23-521" ()Q]

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Amount of Sales Exhibit No. Date71 Eightech Tectron Phils., Inc. 6,300.00 "P-23-749" Eightech Tectron Phils., Inc. 2/8/2008 16,000.00 "P-23-750" Eightech Tectron Phils., Inc. 2/8/2008 6,300.00 "P-23-880" Eightech Tectron Phils Inc 2/18/2018 16,000.00 "P-23-916" Eightech Tectron Phils Inc 2/19/2008 16,000.00 "P-23-936" Eightech Tectron Phils Inc 2/21/2008 6,300.00 "P-23-1086" Eightech Tectron Phils Inc 2/29/2008 16,000.00 "P-23-1257" Eightech Tectron Phils Inc 3/4/2008 16,000.00 "P-23-1360" Eightech Tectron Phils Inc 3/10/2008 6,300.00 "P-23-1377" Eightech Tectron Phils Inc 3/11/2008 6,300.00 "P-23-1453" Eightech Tectron Phils. Inc. 3/17/2008 16,000.00 "P-23-1568" Eightech Tectron Phils. Inc. 3/25/2008 6,300.00 "P-23-1580" HHIC-Phil Inc. 3/26/2008 (361,380.00) "P-23-1" HHIC-Phil Inc. 1/11/2008 4,672,038.30 "P-23-579" HHIC-Phil Inc. 1/31/2008 2,379,310.00 "P-23-1148" Nidec Subic Philippines Corp 2/29/2008 16,564.40 "P-23-29" Nidec Subic Philippines Corp 1/2/2008 35,021.43 "P-23-371" Nidec Subic Philippines Corp 1/22/2008 8,000.00 "P-23-383" Nidec Subic Philippines Corp 1/22/2008 3,500.00 "P-23-618" Nidec Subic Philippines Corp 1/31/2008 16,250.40 "P-23-651" Nidec Subic Philippines Corp 2/2/2008 41,524.73 "P-23-679" Nidec Subic Philippines Corp. 2/4/2008 45,475.01 "P-23-1018" Nidec Subic Philippines Corp 2/28/2008 3,500.00 "P-23-1187" Nidec Subic Philippines Corp 2/29/2008 16,144.00 "P-23-1223" Nidec Subic Philippines Corp 3/1/2008 43,284.41 "P-23-1468" Nidec Subic Philippines Corp 3/17/2008 201,600.00 "P-23-1514" Nidec Subic Philippines Corporation 3/19/2008 170,000.00 "P-23-1715" Nidec Subic Philippines Corporation 3/31/2008 3,500.00 "P-23-1791" Pilipinas Shell Petroleum Corp- Shell Gas Eas 3/31/2008 18,931.10 "P-23-375" PSI Technologies Laguna Inc. (USD) 1/22/2008 621,945.00 "P-23-593" PSI Technologies Laguna Inc (USD) 1/31/2008 552,124.80 "P-23-1161" PSI Technologies Laguna Inc 2/29/2008 6,000.00 "P-23-1219" PSI Technologies Laguna Inc. (USD) 3/1/2008 580,290.48 "P-23-1764" Tong Hsing 3/31/2008 12,500.00 "P-23-41" Tong Hsing_ 1/3/2008 12,500.00 "P-23-58" Tong Hsing 1/4/2008 25,000.00 "P-23-161" Tong Hsing 1/10/2008 25,000.00 "P-23-303" Tong Hsing 1/17/2008 12,500.00 "P-23-424" Tong Hsing 1/25/2008 12,500.00 "P-23-425" Tong Hsing_ 1/25/2008 12,500.00 "P-23-499" Tong Hsing 1/30/2008 25,000.00 "P-23-663" Tong Hsing 2/4/2008 12,500.00 "P-23-757" Tong Hsing 2/8/2008 12,500.00 "P-23-956" Tong Hsing 2/22/2008 12,500.00 "P-23-1033" Tong Hsing 2/28/2008 12,500.00 "P-23-1034" Tong Hsing 2/28/2008 1,400.00 "P-23-1193" Tong Hsing 2/29/2008 (1,568.00) "P-23-1197" 3/18/2008 Cl1

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Amount of Sales Exhibit No. Date71 Tong Hsing (1,400.00) "P-23-1198" Tong Hsing 3/18/2008 (1,400.00) "P-23-1199" Tong Hsing 3/18/2008 37,500.00 "P-23-1291" Tong Hsing 3/5/2008 12,500.00 "P-23-1490" Tong Hsing 3/18/2008 12,500.00 "P-23-1491" Tong Hsing 3/18/2008 "P-23-1495" Tong Hsing 3/18/2008 1,600.00 "P-23-1496" Tong Hsing 3/18/2008 1,600.00 "P-23-1497" Tong Hsing 3/18/2008 2,400.00 "P-23-1569" Tong Hsing 3/25/2008 25,000.00 "P-23-1797" Walk-In Customers 3/31/2008 1,400.00 "P-23-1704" 3/31/2008 10,684.00 Sub-total Grand Total 10,649,225.09 p 20,899,537.41 In addition, the sales in the total amount of Pl1,611,487.95 generated by petitioner from its PEZA-registered customers prior to the issuance of their respective PEZA certifications, as presented below, shall also be disallowed for VAT zero-rating, to wit: Name of Customer Invoice Date72 Amount of Sales Exhibit No. PEZA Certificate for VAT-zero rating was issued only on January 31, 2008 AGC Flat Glass Phils., Inc. 1/2/2008 p 59,992.94 "P-23-26" PEZA Certificate for VAT-zero rating was issued only on Februal"' 1, 2008 Austria Microsystems Phils. Inc 1/4/2008 21,000.00 "P-23-52" Austria Microsystems Phils. Inc 1/8/2008 28,000.00 "P-23-103'' Austria Microsystems Phils. Inc 1/8/2008 14,000.00 "P-23-104" Austria Microsystems Phils. Inc 1/8/2008 21,000.00 "P-23-118" Austria Microsystems Phils. Inc 1/8/2008 21,000.00 "P-23-119" Austria Microsystems Phils. Inc 1/8/2008 35,000.00 "P-23-120" Austria Microsystems Phils. Inc 1/8/2008 28,000.00 "P-23-121" Austria Microsystems Phils. Inc 1/10/2008 42,000.00 "P-23-150" Austria Microsystems Phils. Inc 1/10/2008 14,000.00 "P-23-151" Austria Microsystems Phils. Inc 1/10/2008 21,000.00 "P-23-152" Austria Microsystems Phils. Inc 1/10/2008 14,000.00 "P-23-153" Austria Microsystems Phils. Inc 1/11/2008 14,000.00 "P-23-178" Austria Microsystems Phils. Inc 1/11/2008 7,000.00 "P-23-179" Austria Microsystems Phils. Inc 1/11/2008 7,000.00 "P-23-180" Austria Microsystems Phils. Inc 1/14/2008 14,000.00 "P-23-227" Austria Microsystems Phils. Inc 1/14/2008 14,000.00 "P-23-228" Austria Microsystems Phils. Inc 1/15/2008 28,000.00 "P-23-242" Austria Microsystems Phils. Inc 1/16/2008 21,000.00 "P-23-274" Austria Microsystems Phils. Inc 1/16/2008 7,000.00 "P-23-275" 72 Date format: Month/Day/Year ~

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Amount of Sales Exhibit No. Date72 Austria Microsystems Phils. Inc 1/16/2008 14,000.00 "P-23-276" Austria Microsystems Phils. Inc 1/16/2008 14,000.00 "P-23-277" Austria Microsystems Phils. Inc 1/18/2019 14,000.00 "P-23-311" Austria Microsvstems Phils. Inc 1/18/2019 14,000.00 "P-23-312" Austria Microsystems Phils. Inc 1/18/2019 21,000.00 "P-23-317" Austria Microsystems Phils. Inc 1/18/2019 7,000.00 "P-23-318" Austria Microsystems Phils. Inc 1/18/2019 14,000.00 "P-23-325" Austria Microsystems Phils. Inc 1/31/2008 35,000.00 "P-23-522" Austria Microsystems Phils. Inc 1/31/2008 5,000.00 "P-23-604" PEZA Certificate for VAT-zero rating was issued only on July 21, 2008 Cam Mechatronics (Phils) Inc 1/23/2008 12,500.00 "P-23-397" Cam Mechatronics (Phils) Inc 1/31/2008 600.00 "P-23-606" CAM MECHATRONICS (PHILS) INC 2/29/2008 600.00 "P-23-1174" Cam Mechatronics (Phils) Inc. 3/31/2008 600.00 "P-23-1777" PEZA Certificate for VAT-zero rating was issued only on January 29, 2008 Castem Philippines Corporation 1/4/2008 11,600.00 "P-23-64" Castem Philippines Corporation 1/11/2008 14,500.00 "P-23-195" Castem Philippines Corporation 1/16/2008 14,500.00 "P-23-284" Castem Philippines Corporation 1/23/2008 14,500.00 "P-23-392" PEZA Certificate for VAT-zero rating was issued only on January 28, 2008 Cirtek Electronics Corporation 1/2/2008 25,000.00 "P-23-11" Cirtek Electronics Corporation 1/8/2008 5,590.00 "P-23-129" Cirtek Electronics Corporation 1/15/2008 5,590.00 "P-23-268" PEZA Certificate for VAT-zero rating was issued only on January 23, 2008 Continental Temic Electronics Phils. 1/2/2008 46,587.37 "P-23-12" Continental Temic Electronics Phils. 1/11/2008 1,500.00 "P-23-212" Continental Temic Electronics Phils. 1/16/2008 42,500.00 "P-23-293" Continental Temic Electronics Phils. 1/17/2008 7,500.00 "P-23-304" PEZA Certificate for VAT-zero rating was issued only on September 3, 2008 CPL Packaging, Inc. 1/29/2008 1,900.00 "P-23-489" CPL Packaging, Inc. 1/31/2008 800.00 "P-23-602" CPL Packaging, Inc. 2/29/2008 800.00 "P-23-1169" CPL Packaging Inc. 3/31/2008 800.00 "P-23-1773" PEZA Certificate for VAT-zero rating was issued only on February 8, 2008 Fastech Electronique, Inc 1/8/2008 2,850.00 "P-23-128" PEZA Certificate for VAT-zero rating was issued only on January 8, 2008 Hoya Glass Disk Philippines, Inc. 1/2/2008 24,846.60 "P-23-18" PEZA Certificate for VAT-zero rating was issued only on Februar 13, 2008 ISPL (Phil.) Inc. (Formerly ATEC) 1/2/2008 37,000.00 "P-23-9" ISPL (Phil.) Inc. (Formerly ATEC) 1/7/2008 45,600.00 "P-23-75" ISPL (Phils.) Inc. 1/11/2008 45,600.00 "P-23-181" ISPL (Phils.) Inc. 1/15/2008 45,600.00 "P-23-250" ISPL (Phils.) Inc. 1/24/2008 45,600.00 "P-23-408" ISPL (Phils.) Inc. 1/24/2008 45,600.00 "P-23-409" ISPL (Phils.) Inc. 1/31/2008 91,200.00 "P-23-515" ISPL (Phils.) Inc. (Formerly ATEC) 1/31/2008 650,395.23 "P-23-575" ISPL (Phil.) Inc. (Formerly ATEC) 2/2/2008 37,000.00 "P-23-631" (fll

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Date72 Amount of Sales Exhibit No. ISPL (Phils.) Inc. 2/6/2008 45,600.00 "P-23-726" ISPL (Phils.) Inc. 2/11/2008 91,200.00 "P-23-786" PEZA Certificate for VAT-zero rating was issued onlv on February 1, 2008 Ju-Young Electronics Phils., Inc. 1/31/2008 200.00 "P-23-611" PEZA Certificate for VAT-zero rating was issued only on January 17, 2008 Katolec Phils. Corp 1/2/2008 37,269.90 "P-23-15" PEZA Certificate for VAT-zero rating was issued only on January 15, 2008 Komyo Phil. Logistics Service Corp. 1/3/2008 6,144.80 "P-23-47" Komyo Phil. Logistics Service Corp. 1/7/2008 9,217.20 "P-23-79" Komyo Phil. Logistics Service Corp. 1/10/2008 9,217.20 "P-23-160" PEZA Certificate for VAT-zero rating was issued only on Februa11 5, 2008 Littelfuse Philippines, Inc. 1/7/2008 23,700.00 "P-23-80" Littelfuse Philippines, Inc. 1/7/2008 15,800.00 "P-23-81" Littelfuse Philippines, Inc. 1/10/2008 39,500.00 "P-23-157" Littelfuse Philippines, Inc. 1/14/2008 15,800.00 "P-23-219" Littelfuse Philippines, Inc. 1/21/2008 15,800.00 "P-23-338" Littelfuse Philippines, Inc. 1/24/2008 15,800.00 "P-23-403" Littelfuse Philippines, Inc. 1/24/2008 15,800.00 "P-23-404" Littelfuse Philippines, Inc. 1/24/2008 7,900.00 "P-23-412" Littelfuse Philippines, Inc. 1/31/2008 47,400.00 "P-23-514" Littelfuse Philippines, Inc. 1/31/2008 3,300.00 "P-23-613" PEZA Certificate for VAT-zero rating was issued only on January 10, 2008 Luzon Electronics Technology, Inc 1/2/2008 31,058.25 "P-23-16" PEZA Certificate for VAT-zero rating was issued only on January 23, 2008 Maeno Giken, Inc. 1/4/2008 5,700.00 "P-23-72" Maeno Giken, Inc. 1/10/2008 9,120.00 "P-23-170" Maeno Giken, Inc. 1/11/2008 5,700.00 "P-23-213" Maeno Giken, Inc. 1/15/2008 5,700.00 "P-23-265" Maeno Giken, Inc. 1/15/2008 8,420.00 "P-23-267" Maeno Giken, Inc. 1/18/2019 5,700.00 "P-23-333" Maeno Giken, Inc. 1/22/2008 5,700.00 "P-23-373" PEZA Certificate for VAT-zero rating was issued only on January 14, 2008 Masuda Philippines, Inc. 1/4/2008 29,730.80 "P-23-73" Masuda Philippines, Inc. 1/4/2008 24,000.00 "P-23-74" Masuda Philippines, Inc. 1/8/2008 20,811.56 "P-23-125" Masuda Philippines, Inc. 1/10/2008 14,400.00 "P-23-166" Masuda Philippines, Inc. 1/10/2008 14,865.40 "P-23-167" Masuda Philippines, Inc. 1/11/2008 19,200.00 "P-23-214" Masuda Philippines, Inc. 1/11/2008 17,838.48 "P-23-215" Masuda Philippines, Inc. 1/11/2008 23,784.64 "P-23-217" PEZA Certificate for VAT-zero rating was issued only on January 21, 2008 MSM Manila Inc. 1/4/2008 7,500.00 "P-23-53" MSM Manila Inc. 1/18/2019 7,500.00 "P-23-309" MSM Manila Inc. 1/18/2019 7,500.00 "P-23-310" PEZA Certificate for VAT-zero rating was issued only on January 28, 2008 NXP Semiconductors Philippines Inc. 1/4/2008 18,000.00 "P-23-65" NXP Semiconductors Philippines Inc. 1/7/2008 24,000.00 "P-23-85" (11

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Date72 Amount of Sales Exhibit No. NXP Semiconductors Philippines Inc. 1/7/2008 18,000.00 "P-23-86" NXP Semiconductors Philippines Inc. 1/7/2008 12,000.00 "P-23-87" NXP Semiconductors Philippines Inc. 1/8/2008 24,000.00 "P-23-112" NXP Semiconductors Philippines Inc. 1/8/2008 12,000.00 "P-23-113" NXP Semiconductors Philippines Inc. 1/9/2008 2,600.00 "P-23-131" NXP Semiconductors Philippines Inc. 1/9/2008 24,000.00 "P-23-132" NXP Semiconductors Philippines Inc. 1/9/2008 12,000.00 "P-23-133" NXP Semiconductors Philippines Inc. 1/9/2008 6,000.00 "P-23-134" NXP Semiconductors Philippines Inc. 1/11/2008 1,300.00 "P-23-183" NXP Semiconductors Philippines Inc. 1/11/2008 24,000.00 "P-23-184" NXP Semiconductors Philippines Inc. 1/11/2008 24,000.00 "P-23-191" NXP Semiconductors Philippines Inc. 1/11/2008 18,000.00 "P-23-192" NXP Semiconductors Philippines Inc. 1/11/2008 12,000.00 "P-23-193" NXP Semiconductors Philippines Inc. 1/11/2008 6,000.00 "P-23-194" NXP Semiconductors Philippines Inc. 1/11/2008 24,000.00 "P-23-199" NXP Semiconductors Philippines Inc. 1/11/2008 18,000.00 "P-23-200" NXP Semiconductors Philippines Inc. 1/11/2008 12,000.00 "P-23-201" NXP Semiconductors Philippines Inc. 1/11/2008 6,000.00 "P-23-202" NXP Semiconductors Philippines Inc. 1/11/2008 6,000.00 "P-23-209" NXP Semiconductors Philippines Inc. 1/14/2008 18,000.00 "P-23-222" NXP Semiconductors Philippines Inc. 1/14/2008 12,000.00 "P-23-223" NXP Semiconductors Philippines Inc. 1/14/2008 6,000.00 "P-23-224" NXP Semiconductors Philippines Inc. 1/14/2008 6,000.00 "P-23-225" NXP Semiconductors Philippines Inc. 1/21/2008 4,000.00 "P-23-343" NXP Semiconductors Philippines Inc. 1/24/2008 3,900.00 "P-23-401" NXP Semiconductors Philippines Inc. 1/25/2008 12,000.00 "P-23-420" NXP Semiconductors Philippines Inc. 1/25/2008 12,000.00 "P-23-421" NXP Semiconductors Philippines Inc. 1/25/2008 24,000.00 "P-23-422" PEZA Certificate for VAT-zero rating was issued only on January 8, 2008 ON Semiconductor Phils., Inc. 1/2/2008 798,000.00 "P-23-30" ON Semiconductor Phils., Inc. 1/2/2008 65,000.00 "P-23-31" ON Semiconductor Phils., Inc. 1/3/2008 90,403.01 "P-23-48" ON Semiconductor Phils., Inc. 1/3/2008 37,935.61 "P-23-50" ON Semiconductor Phils., Inc. 1/4/2008 67,348.77 "P-23-69" ON Semiconductor Phils., Inc. 1/7/2008 37,646.86 "P-23-89" ON Semiconductor Phils., Inc. 1/7/2008 36,755.83 "P-23-91" ON Semiconductor Phils., Inc. 1/7/2008 69,392.83 "P-23-92" PEZA Certificate for VAT-zero rating was issued only on Februar 29, 2008 Orient Semiconductor Electronics 1/2/2008 24,000.00 "P-23-19" Orient Semiconductor Electronics 1/16/2008 11,000.00 "P-23-273" Orient Semiconductor Electronics 1/24/2008 3,500.00 "P-23-405" Orient Semiconductor Electronics 1/31/2008 379,432.62 "P-23-589" Orient Semiconductor Electronics 1/31/2008 2,670.00 "P-23-615" Orient Semiconductor Electronics 2/2/2008 24,000.00 "P-23-641" Orient Semiconductor Electronics 2/5/2008 11,000.00 "P-23-707" Orient Semiconductor Electronics 2/6/2008 3,500.00 "P-23-721" Orient Semiconductor Electronics 2/14/2018 11,000.00 "P-23-855" ~

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Date72 Amount of Sales Exhibit No. Orient Semiconductor Electronics 2/21/2008 16,500.00 "P-23-939" Orient Semiconductor Electronics 2/27/2008 11,000.00 "P-23-993" PEZA Certificate for VAT-zero rating was issued only on May 2, 2008 Philippine Toei Chemical Corporation 1/2/2008 18,000.00 "P-23-20" Philippine Toei Chemical Corporation 1/31/2008 206,762.30 "P-23-590" Philippine Toei Chemical Corporation 2/2/2008 18,000.00 "P-23-642" Philippine Toei Chemical Corporation 2/29/2008 146,639.20 "P-23-1158" Philippine Toei Chemical Corporation 3/1/2008 18,000.00 "P-23-1214" Philippine Toei Chemical Corporation 3/31/2008 183,250.00 "P-23-1761" PEZA Certificate for VAT-zero rating was issued only on Februar 4, 2008 Pricon Microelectronics, Inc. 1/2/2008 24,846.60 "P-23-21" Pricon Microelectronics, Inc. 1/3/2008 26,695.84 "P-23-51" Pricon Microelectronics, Inc. 1/4/2008 27,128.63 "P-23-70" Pricon Microelectronics, Inc. 1/7/2008 29,159.98 "P-23-97" Pricon Microelectronics, Inc. 1/7/2008 30,758.15 "P-23-98" Pricon Microelectronics, Inc. 1/8/2008 36,029.92 "P-23-126" Pricon Microelectronics, Inc. 1/9/2008 33,440.44 "P-23-145" Pricon Microelectronics, Inc. 1/10/2008 41,172.57 "P-23-175" Pricon Microelectronics, Inc. 1/14/2008 39,886.58 "P-23-233" Pricon Microelectronics, Inc. 1/14/2008 35,983.95 "P-23-235" Pricon Microelectronics, Inc. 1/15/2008 27,276.40 "P-23-258" Pricon Microelectronics, Inc. 1/15/2008 29,235.75 "P-23-263" Pricon Microelectronics, Inc. 1/16/2008 30,137.48 "P-23-294" Pricon Microelectronics, Inc. 1/17/2008 36,018.19 "P-23-308" Pricon Microelectronics, Inc. 1/21/2008 58,670.73 "P-23-351" Pricon Microelectronics, Inc. 1/21/2008 39,504.58 "P-23-355" Pricon Microelectronics, Inc. 1/22/2008 27,611.85 "P-23-377" ' Pricon Microelectronics, Inc. 1/25/2008 28,842.03 "P-23-427" Pricon Microelectronics, Inc. 1/25/2008 54,977.64 "P-23-428" Pricon Microelectronics, Inc. 1/28/2008 28,567.78 "P-23-455" Pricon Microelectronics, Inc. 1/28/2008 29,652.28 "P-23-460" Pricon Microelectronics, Inc. 1/29/2008 36,700.64 "P-23-482" Pricon Microelectronics, Inc. 1/30/2008 34,698.33 "P-23-507" Pricon Microelectronics, Inc. 1/31/2008 29,809.88 "P-23-526" Pricon Microelectronics, Inc. 1/31/2008 41,670.26 "P-23-537" Pricon Microelectronics, Inc. 2/2/2008 24,375.60 "P-23-643" PEZA Certificate for VAT-zero rating was issued onlv on March 24, 2008 PSI Technologies Inc. 1/2/2008 9,000.00 "P-23-22" PSI Technologies Inc. 1/2/2008 8,100.00 "P-23-23" PSI Technologies Inc. 1/2/2008 3,000.00 "P-23-24" PSI Technologies Inc. 1/2/2008 6,000.00 "P-23-25" PSI Technologies Inc. 1/31/2008 1,657,609.03 "P-23-554" PSI Technologies Inc. 1/31/2008 498,185.26 "P-23-591" PSI Technologies Inc. 1/31/2008 21,951.00 "P-23-592" PSI Technologies Inc. 2/2/2008 9,000.00 "P-23-644" PSI Technologies Inc. 2/2/2008 8,100.00 "P-23-645" PSI Technologies Inc. 2/2/2008 3,000.00 "P-23-646" f!]

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Date72 Amount of Sales Exhibit No. PSI Technologies Inc. 2/2/2008 6,000.00 "P-23-647" PSI Technologies (USD) 2/29/2008 521,967.81 "P-23-1159" PSI Technologies Inc 2/29/2008 1,656,415.97 "P-23-1123" I PSI Technologies Inc 2/29/2008 21,794.40 "P-23-1160" ' PSI Technologies Inc 3/1/2008 9,000.00 "P-23-1216" PSI Technologies Inc 3/1/2008 8,100.00 "P-23-1217" PSI Technologies Inc 3/1/2008 3,000.00 "P-23-1218" PEZA Certificate for VAT-zero rating was issued only on Februal" 13, 2008 Sanritsu Great International 1/4/2008 15,000.00 "P-23-56" Sanritsu Great International 1/4/2008 6,000.00 "P-23-57" Sanritsu Great International 1/17/2008 6,000.00 "P-23-300" Sanritsu Great International 1/22/2008 15,000.00 "P-23-374" Sanritsu Great International 2/5/2008 15,000.00 "P-23-690" Sanritsu Great International 2/5/2008 2,850.00 "P-23-691" PEZA Certificate for VAT-zero rating was issued only on January 11, 2008 Shi Mfg. & Services (Phils.), Inc. 1/2/2008 18,700.00 "P-23-32" Shi Mfg. & Services (Phils.), Inc. 1/10/2008 6,500.00 "P-23-173" PEZA Certificate for VAT-zero rating was issued only on January 28, 2008 Shindengen Philippiens Corp. 1/8/2008 10,340.00 "P-23-130" Shindengen Philippiens Corp. 1/16/2008 10,340.00 "P-23-299" PEZA Certificate for VAT-zero rating was issued only on January 23, 2008 Showa Aluminum Mfg., Phils. C Corp 1/8/2008 26,000.00 "P-23-123" Showa Aluminum Mfg., Phils. C Corp 1/10/2008 20,800.00 "P-23-172" Showa Aluminum Mfg., Phils. C Corp 1/11/2008 39,000.00 "P-23-211" Showa Aluminum Mfg., Phils. C Corp 1/16/2008 65,000.00 "P-23-292" Showa Aluminum Mfg., Phils. C Corp 1/18/2008 20,800.00 "P-23-334" Showa Aluminum Mfg., Phils. C Corp 1/22/2008 16,000.00 "P-23-370" PEZA Certificate for VAT-zero rating was issued only on January 23 2008 Temic Automotive Philippines 1/2/2008 14,000.00 "P-23-35" PEZA Certificate for VAT-zero rating was issued only on March 27, 2008 Tokyo Steel Philippines Corp 1/2/2008 38,250.00 "P-23-37" Tokyo Steel Philippines Corp 1/2/2008 6,300.00 "P-23-38 Tokyo Steel Philippines Corp 2/2/2008 38,250.00 "P-23-658" Tokyo Steel Philippines Corp 2/2/2008 6,300.00 "P-23-659" Tokyo Steel Philippines Corp 3/1/2008 38,250.00 "P-23-1230" Tokyo Steel Philippines Corp 3/1/2008 6,300.00 "P-23-1231" PEZA Certificate for VAT-zero rating was issued only on January 8, 2008 Vishay Philippines Inc. 1/2/2008 13,500.00 "P-23-40" PEZA Certificate for VAT-zero rating was issued only on Februar 1, 2008 YKY Parts Corporation 1/8/2008 31,000.00 "P-23-116" YKY Parts Corporation 1/8/2008 31,000.00 "P-23-117" YKY Parts Corporation 1/11/2008 31,000.00 "P-23-204" YKY Parts Corporation 1/11/2008 31,000.00 "P-23-205" YKY Parts Corporation 1/16/2008 31,000.00 "P-23-278" YKY Parts Corporation 1/18/2019 31,000.00 "P-23-313" YKY Parts Corporation 1/21/2008 31,000.00 "P-23-336" YKY Parts Corporation 1/21/2008 31,000.00 "P-23-337" rfl

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Name of Customer Invoice Date72 Amount of Sales Exhibit No. YKY Parts Corporation 1/25/2008 31,000.00 "P-23-413" YKY Parts Corporation 1/25/2008 31,000.00 "P-23-414" PEZA Certificate for VAT-zero rating was issued only on Januarv 21, 2008 Yutaka Manufacturing Philippines Inc 1/4/2008 17,600.00 "P-23-62" Yutaka Manufacturing Philippines Inc 1/4/2008 17,600.00 "P-23-63" Yutaka Manufacturing Philippines Inc 1/4/2008 6,710.00 "P-23-68" Yutaka Manufacturing Philippines Inc 1/7/2008 26,400.00 "P-23-82" Yutaka Manufacturing Philippines Inc 1/7/2008 3,355.00 "P-23-83" Yutaka Manufacturing Philippines Inc 1/8/2008 26,400.00 "P-23-114" Yutaka Manufacturing Philippines Inc 1/9/2008 17,600.00 "P-23-137" Yutaka Manufacturing Philippines Inc 1/9/2008 8,800.00 "P-23-138" Yutaka Manufacturing Philippines Inc 1/10/2008 17,600.00 "P-23-164" Yutaka Manufacturing Philippines Inc 1/11/2008 17,600.00 "P-23-188" Yutaka Manufacturing Philippines Inc 1/11/2008 8,800.00 "P-23-189" Yutaka Manufacturing Philippines Inc 1/11/2008 17,600.00 "P-23-198" Yutaka Manufacturing Philippines Inc 1/14/2008 26,400.00 "P-23-220" Yutaka Manufacturing Philippines Inc 1/15/2008 17,600.00 "P-23-251" Yutaka Manufacturing Philippines Inc 1/16/2008 8,800.00 "P-23-279" Yutaka Manufacturing Philippines Inc 1/16/2008 17,600.00 "P-23-280" Yutaka Manufacturing Philippines Inc 1/16/2008 8,800.00 "P-23-281" Yutaka Manufacturing Philippines Inc 1/18/2019 26,400.00 "P-23-315" Yutaka Manufacturing Philippines Inc 1/18/2019 17,600.00 "P-23-324" TOTAL p 11,611,487.95 In sum, out of the total declared zero-rated sales of P199,197,257.57 in the 1st quarter of 2008, the Court finds that only the amount of P123,908,965.20 are valid zero-rated sales, computed as follows: Zero-rated Sales declared per Quarterly VAT Return p 199,197,257.57 Less: Disallowances 1. Zero-rated Sales without supporting documents (Difference between the amount declared and the total amount per scheduleJ 235.556.93 2. Sales not duly supported by VAT "zero- rated" sales invoices and official receipts 42,541,710.08 3. Sales related to entities not certified by PEZA as entitled for VAT zero-rating 20,899,537.41 4. Sales generated prior to the issuance of the PEZA certification for VAT zero-rating 11.611.487.95 Total Disallowances 75.288.292.37 Valid zero-rated sales p 123,908,965.20 cf/

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Such being the case, petitioner complied with the fourth requisite to successfully obtain a credit/refund of input VAT, but only insofar as the amount of P123,908,965.20, representing its zero- rated sales for the 1st quarter of 2008, is concerned. For the fifth requisite, the same is not applicable to petitioner, since the basis for its VAT zero-rating is Sections 106(A)(2)(a)(5) and 108(B)(3) of the NIRC of 1997, as amended, as earlier shown, and not Sections 106(A)(2)(a)(1) and (2); 106(B); and 108(B)(1) and (2) thereof. Thus, petitioner need not comply with the said requisite. The input taxes being claimed are not transitional input taxes The present claim in the total amount of P21,460,431.48 pertains to the input VAT incurred from domestic purchases and importation of goods and services during the 1st quarter of 2008. The said amount is broken down as follows: Particulars Input VAT Purchases of Capital Goods not exceeding ~!Million Purchases of Capital Goods exceeding ~!Million ~ 75,779.54 Domestic Purchase of Goods other than Capital Goods Importation of Goods other than Capital Goods 404,880.13 Domestic Purchase of Services Total 6,970,808.31 2,843,716.00 11 165 247.50 p 21,460,431.48 The above input taxes apparently are not transitional input taxes, as referred to under Section 111(A) of the NIRC of 1997, as amended, to wit: "SEC. 111. Transitional/Presumptive Input Tax Credits.- (A) Transitional Input Tax Credits. - A person who becomes liable to value-added tax or any person who elects to be a VAT-registered person shall, subject to the filing of an inventory according to rules and regulations prescribed by the Secretary of Finance, upon recommendation of the Commissioner, be allowed input cr1

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue tax on his beginning inventory of goods, materials and supplies equivalent for two percent (2%) of the value of such inventory or the actual value-added tax paid on such goods, materials and supplies, whichever is higher, which shall be creditable against the output tax." Transitional input tax credit operates to benefit newly VAT- registered persons, whether or not they previously paid taxes in the acquisitions of their beginning inventory of goods, materials and supplies. During the period of transition from non-VAT to VAT status, the transitional input tax credit serves to alleviate the impact of the VAT on the taxpayer.73 Since the input taxes being claimed are not transitional input VAT, petitioner thus complied with the sixth requisite. Petitioner's input VAT was due or paid, but only in the amount ofP440,570.35 In support of the input VAT claim of P21,460,431.48, petitioner submitted various invoices, official receipts, import entry and internal revenue declarations and Bureau of Customs Confirmation74 which were examined by the ICPA. Apropos, in the same way that there must be compliance with the invoicing requirements for its zero-rated sales, petitioner must likewise show compliance therewith as regards its purchases. Petitioner's compliance with all the VAT invoicing requirements is required to be able to file a claim for input taxes attributable to zero- rated sales.75 The invoicing and substantiation requirements should be followed because it is the only way to determine the veracity of the taxpayer's claims.76 More importantly, it must be emphasized 73 Fort Bonifacio Development Corporation vs. Commissioner ofInternal Revenue, G.R. Nos. 158885 and 170680, April 2, 2008. 74 Exhibits "P-26" and its submarkings, and "P-27" and its submarkings. 75 JRA Philippines, Inc. vs. Commissioner ofInternal Revenue, G.R. No. 171307, August 28,2013. &) 76 Nippon Express (Philippines) Corporation vs. Commissioner ofInternal Revenue, G.R. No.l91495,July23,2018.

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue that compliance with all the VAT invoicing requirements provided by tax laws and regulations is mandatory.77 Out of the P21,460,431.48, the ICPA noted that the total input VAT of P20,711,373.7978 is supported by documents, but with the following noted exceptions, to wit: Noted Exceptions Input VAT Exhibit Certain local purchases of goods and services p 1,499,193.55 "P-26A" A were not supported by VAT invoices and ORs "P-26B" Certain invoices and official receipts without 82,559.75 "P-26C" B original copies 4,032,389.28 "P-260" Certain invoices and official receipts did not 26,729.02 "P-26E" c show the TIN of the Company 2,847,809.98 "P-26F" Certain invoices and official receipts did not 138,697.17 "P-26G" D show the correct address of the Company "P-26H"�I "P- 171,605.34 Certain invoices and official receipts were 27H" dated outside the year and period of claim or "P-261"�I E did not indicate any date at all "P-271" Certain invoices and official receipts did not F separately indicate the VAT "P-26J" Certain invoices and official receipts with alterations on the required information (i.e., date, TIN and address) pursuant to Section 4.113(B) of RR No. 16-2005 were without countersignature by an authorized G representative of the supplier H No supporting documents 10,174,518.97 Amount claimed is higher than the amount I per documents 1,735,330.57 Over-claimed input VAT from purchase of capital goods exceeding 1M for the month of J March 2008 2,540.17 Total 1'20,711,373.80 The Court finds the ICPA findings on the input VAT with noted exceptions proper. Thus, the total amount of P20,711,373.80 should already be disallowed for not being properly substantiated by VAT invoices and official receipts as prescribed under Sections llO(A) and 77 Eastern Telecommunications Philippines, Inc. vs. Commissioner of Internal Revenue, G.R. No. 183531, March 25, 2015. 78 With P0.01 difference due to rounding off.~

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue 113(A) and (B), 237 and 238 of the NIRC, as amended, in relation to Sections 4.110-2, 4.110-8 and 4.113-1 of RR No. 16-05, as amended. In addition, upon verification of the remaining input VAT of P749,057.69 (P21,460,431.48 less P20,711,373.79), the Court notes a discrepancy of P17,337.48. This discrepancy should be disallowed as well from petitioner's claim on the ground that the same is likewise without proper supporting document, to wit: Particulars Input VAT Exhibit Input VAT with no noted exception per ICPA Report p 749 057.69 Compared aqainst amount shown per Exhibit: 618,585.21 "P-26K" Input VAT on Purchases of Goods and Services 113,135.00 "P-27K" Importation of Goods other than Capital Goods 731 720.21 Total Difference p 17,337.48 Upon further examination of the documents supporting the input VAT with no noted exceptions under Exhibits "P-26K" and "P- 27K", the Court observes that included therein was a purchase of capital goods in the amount of P2,426,413.92 where the corresponding input VAT of P291,169.67 was claimed by petitioner. However, the supporting sales invoice revealed that the amount of purchase was only P185.00, with P19.82 input VAT. Thus, the difference of P291,149.85, as computed below, should likewise be disallowed, viz.: Details Amount of Input VAT Purchase Superior Gas & Equipment Co., Inc. (Net of VAT) Sales Invoice No. 605707 Date: January 9, 2008 Per Schedule p 2,426 413.92 P291169.67 (Exhibit "P-26K") Per Sales Invoice 185.00 19.82 (Exhibit "P-26-7") P2,426,228.92 P291,149.85 Difference Correspondingly, out of the total input VAT claim of P21,460,431.48 for the 1st quarter of 2008, only the amount of P440,570.35, as computed below, represents petitioner's valid input VAT for the same period:Cf/

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Total Input VAT claim for refund/TCC p 21,460,431.48 Less: Disallowances 20,711,373.80 Per ICPA Report Per this Court's further verification 17,337.48 a. Difference between the total amount of input 291,149.85 VAT with no noted exception per ICPA report 21,019,861.13 against the total sum as shown in Exhibits "P26K" tt 440,570.35 and "P-27K" b. Difference between the amount per Schedule (Exhibit "P-26") and the amount actually reflected in the supporting Sales Invoice (Exhibit "P-26-7") Total Disallowances Valid Input VAT Such being the case, for the purpose of the seventh requisite to successfully obtain a credit/refund of input VAT (i.e., that the input VAT was due or paid), petitioner has complied therewith, but only in the amount of P440,570.35. A portion of petitioner's valid input taxes due or paid may be attributed to its zero-rated or effectively zero-rated sales To reiterate, the eight requisite is to the effect that the input taxes claimed are attributable to zero-rated or effectively zero-rated sales. However, where there are both zero-rated or effectively zero- rated sales and taxable or exempt sales, and the input taxes cannot be directly and entirely attributed to any of these sales, the input taxes shall be proportionately allocated on the basis of sales volume. Considering that petitioner is engaged in taxable sales subject to zero percent (0%), and twelve percent (12%) rates, as well as exempt sales, and its input VAT cannot be directly or entirely attributed to any of the transactions, this Court shall allocate the valid input VAT proportionately on the basis of the volume of its sales. Thus, the following computations: \!11

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Zero-Rated Sales per Quarterly VAT Return p 199,197,257.57 Divided by the Reported Total Sales per Quarterly VAT Return Multiplied by Total Valid Input VAT p 257,254,403.16 Valid input VAT allocated to total zero-rated sales p 440,570.35 p 341,142.48 Taxable Sales subject to 12% VAT per Quarterly VAT Return Divided by the Reported Total Sales per Quarterly VAT Return p 57,054,748.75 Multiplied by Total Valid Input VAT Valid input VAT allocated to total sales subject to 12% VAT p 257,254,403.16 p 440,570.35 Exempt Sales per Quarterly VAT Return p 97,711.18 Divided by the Reported Total Sales per Quarterly VAT Return Multiplied b}lTotal Valid Input VAT p 1,002,396.84 Valid input VAT allocated to total exempt sales p 257,254,403.16 p 440,570.35 p 1,716.69 Correspondingly, for purposes of, and with regard to petitioner's compliance with, the eighth requisite, only the amount of P341,142.48 represents valid input VAT attributable to petitioner's total reported zero-rated sales. Petitioner had no unutilized input taxes available for refund Having settled that petitioner had valid input VAT attributable to its zero-rated sales, this Court shall now determine whether the same was not applied against its output VAT liability during the subject quarter, and in the succeeding quarters, relative to the ninth requisite for the successful prosecution of an input VAT refund claim. For the 1st quarter of 2008, petitioner has output VAT liability in the amount of P6,846,569.85. 79 Since petitioner's valid input VAT allocated to sales subject to the 12% VAT in the amount of P97,711.18 is not enough to cover the said output VAT liability, the output VAT still due against petitioner is computed as follows: Output VAT p 6,846,569.85 Input VAT allocated to VATable sales 97,711.18 Output VAT still due p 6,748,858.67 all 79 Exhibit "P-9", Line 198.

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue The valid input VAT attributable to total reported zero-rated sales shall then be utilized against the said remaining output VAT liability of petitioner. Apparently, the input VAT attributable to zero-rated sales of P341,142.48 is lower than the net output VAT payable of P6,748,858.67. Consequently, petitioner still has a net output VAT due of P6,407,716.19, as shown below: Output VAT still due p 6,748,858.67 Input VAT allocated to zero-rated sales 341,142.48 Net Output VAT still due p 6,407,716.19 Although petitioner's Quarterly VAT Return for the pt quarter of 2008 reflected the amount of Pl31,225,119.8580 as ''Input Tax Carried Over from Previous Period', petitioner failed to substantiate the same, and thus, cannot be used to pay the net output VAT still due of P6,407,716.19. In this connection, it must be emphasized that in cases filed before this Court, which are litigated de novo, party-litigants must prove every minute aspect of their case.81 Verily, in claiming excess or unutilized input VAT from zero- rated transactions, it is the excess over the output VAT which should be refunded to the taxpayer or credited against other internal revenue taxes. Hence, it is important for the taxpayer to prove that it has enough prior year's excess input VAT credits to cover its output VAT liability for a particular period. Failing which, the ''Input Tax Carried Over from Previous Period' cannot be used to pay, or applied against, the output VAT. 80 Exhibit "P-9" (Line 20A). 81 Edison (Bataan) Cogeneration Corporation vs. Commissioner of Internal Revenue, etseq., G.R. Nos. 201665 and 201668, August 30, 2017; Commissioner of Internal Revenue vs. Philippine National Bank, G.R. No. 180290, September 29, 2014; Commissioner of Internal Revenue vs. United Salvage and Towage (Phils.), Inc., G.R. No. 197515, July 2, 2014; Dizon vs. Court of Tax Appeals, et al., G.R. No. 140944, April 30, 2008; Atlas Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue, G.R. No. 145526, March 16, 2007; and Commissioner of Internal Revenue vs. Manila Mining Corporation, G.R. No. 153204, August 31, 2005. C1J

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue Consequently, petitioner cannot be said to have fulfilled the ninth requisite. More importantly, considering that there is no excess input VAT which may be the subject of a claim for refund or tax credit certificate under Section 112(A) of the NIRC of 1997, as amended, the present claim must necessarily fail. Well-settled is the rule that tax refunds are in the nature of tax exemptions. As such, they are regarded as derogation of sovereign authority and to be construed strictissimi juris against the person or entity claiming the refund.82 The claimant has the burden of proof to establish the factual basis of his or her claim for tax credit or refund.83 Petitioner, unfortunately, failed to discharge this burden. WHEREFORE, in light of the foregoing considerations, the Petition for Review filed by Air Liquide Philippines, Inc. on March 30, 2010, praying for the refund or issuance of a tax credit certificate in the total amount of Twenty-One Million Four Hundred Sixty Thousand Four Hundred Thirty-One Pesos and Forty-Eight Centavos (P21,460,431.48) representing its alleged unutilized input Value- Added Tax (VAT) for the 1st quarter of 2008 is hereby DENIED for lack of merit. SO ORDERED. ROMAN G. DE[ ROSARIO Presiding Justice 82 Commissioner ofInternal Revenue vs. S.C. Johnson & Son, Inc., G.R. No 127105, June 25, 1999. 83 Citibank NA. vs. Court of Appeals and the Commissioner of Internal Revenue, G.R. No. 107434, October 10, 1997.

DECISION CTA Case Nos. 8052 Air Liquide Philippines, Inc. vs. Commissioner ofInternal Revenue WE CONCUR: ~~-;:./.&.. - 4 r. �~ 2-M ~-'f~ CATHERINE T. MANAHAN MARIAN IVYIF. RE~S-FAfARDO Associate Justice Associate Justice CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, 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's Division. ROMAN G. DEL ROSARIO Presiding Justice