NIPPON EXPRESS PHILIPPINES CORPORATION v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS Quezon City Sbecia! Second Division j NIPPON EXPRESS PHILIPPINES CTA CASE NO. 11111 CORPORATION, Members: Petitioner, RINGPIS-LIBAN, P.J. & Chairperson -versus- MODESTO-SAN PEDRO, and FERRER-FLORES, Jl. COMMISSIONER OF INTERNAL REVENUE, Promulgated: Respondent. 0 x---------------------------------------------------------------------------------~-r.c;~~-;2S,, DECISION RINGPIS-LIBAN,[: The present Petitionfor Review filed on March 28, 2023, prays for the refund in the amount of P12,797,188.46, allegedly representing petitioner's unutilized input value-added tax (VAT) for the period October 1, 2020, to December 31, 2020. 1 THE PARTIES Petitioner Nippon Express Philippines Corporation is a corporation duly organized and existing under the laws of the Philippines.2 It is registered with the Bureau of Internal Revenue (BIR) as a VAT taxpayer, under Taxpayer Identification Number (TIN) 004-669-434-00000, with registered address at Lot 85A & B Avocado Road FTI Complex East Service Road Western Bicutan 1630 Taguig City.3 1 Summary of the Case, Pre-Trial Order dated February 19, 2024, Docket- Vol. I, p. 340. 2 Exhibits "P-1" and "P-2", Docket- Vol. I, pp. 478 to 492. 3 Exhibit "P-3", Docket- Vol. I, pp. 493 to 495.

DECISION CTA CASE NO. 11111 Respondent is the Commissioner of the BIR, vested by law to enforce and implement the provisions of the National Internal Revenue Code (NIRC), as amended, as well as related statutes and their implementing rules and regulations. Respondent holds office at the BIR National Office Building.4 THE FACTS On December 21,2022, petitioner filed before the BIR-VAT Credit Audit Division (VCAD) an Application for Refund of Unutilized Input Tax Related to Zero- rated Sales For the period October 1, 2020 to December 31, 2020 dated December 20, 2022,5 together with an Applicationfor Tax Credits/ Refunds (BIR Form No. 1914),6 in the total amount ofP12,797,188.46, representing excess unutilized creditable input VAT for the period from October 1, 2020 to December 31, 2020.7 The Tax Verification Notice No. TVN201800190975 dated December 21, 2022,8 was issued to petitioner, authorizing Revenue Officers Michele]. Alonzo- Bucayu and Marjorie C. Dioso to verify petitioner's supporting documents and/or pertinent records relative to the claim for VAT refund covering the period October 1 to December 31, 2020.9 On March 3, 2023, petitioner received the VAT Refund Notice dated February 14, 2022,10 signed by Assistant Commissioner for Assessment Service, Maria Luisa I. Belen, stating that petitioner's application for VAT refund for the period from October 1, 2020 to December 31, 2020 is denied for lack of legal and factual bases;11 and that petitioner has the "judicial remedy to appeal with the Court of Tax Appeals (CTA) within thirty (30) days upon receipt of the decision on the administrative application with the BIR pursuant to Section 112(C) of the NIRC of 1997, as amended by Republic Act No. 10963."12 4 Par. A.l., Joint Stipulation of Facts and Issues {JSFI), Docket- Vol. I, p. 317. 5 Exhibit "P-26", BIR Records {Exhibit "R-5"), pp. 281 to 303. 6 Exhibit "P-25", BIR Records {Exhibit "R-5"), p. 304. 7 Refer to pars. 2.1 and 4.7 to 4.8, Petition for Review, vis-a-vis par. 3, Answer (Re: Petitioner's Petition for Review dated 27 March 2023}, Docket- Vol. I, pp. 2 and 6, and 240 to 241, respectively. 8 Exhibits "P-28" and "R-1", BIR Records {Exhibit "R-5"), p. 308. 9 Par. 4.9, Petition for Review, vis-a-vis par. 3, Answer (Re: Petitioner's Petition for Review dated 27 March 2023}, Docket- Vol. I, pp. 6 and 240 to 241, respectively. 10 Exhibits "P-29" and "R-4" to "R-4-A", BIR Records {Exhibit "R-5"), pp. 425 to 453. 11 Par. 4.11, Petition for Review, vis-a-vis par. 3, Answer (Re: Petitioner's Petition for Review dated 27 March 2023}, Docket- Vol. I, pp. 6 and 240 to 241, respectively. 12 Par. 2.3, Petition for Review, vis-a-vis par. 3, Answer (Re: Petitioner's Petition for Review dated 27 March 2023}, Docket- Vol. I, pp. 2 and 240 to 241, respectively.

DECISION CTA CASE NO. 11111 PROCEEDINGS BEFORE THIS COURT As earlier stated, the Petition for Review was flied on March 28, 2023Y On June 27, 2023, respondent filed his Answer (Re: Petitioner's Petition for Review dated 27 March 2023),14 interposing the following special and affirmative defenses, to wit: (1) it is an established fact that a decision by the Commissioner of Internal Revenue has already been rendered and in such case, the Supreme Court has held that the duty of the Court is now limited in determining whether the decision is proper; (2) petitioner is not entitled to the VAT refund; (3) the claim for tax refund must be denied due to petitioner's failure to comply with the requirements pursuant to Section 112(A) of the Tax Code, as amended; (4) petitioner failed to comply with the invoicing requirements under Section 113 of the Tax Code, as amended; (4) the Petition must be dismissed for failure of petitioner to substantiate its administrative claim for refund; and (5) tax refunds are strictly construed against the taxpayer and in favor of the government. Respondent transmitted the BIR Records of this case on June 27, 2023, consisting of one (1) folder. 15 The Pre-Trial Conference was set and held on October 3, 2023.16 Prior thereto, petitioner's Pre-Trial Brief was filed on August 15, 2023, 17 while the Amended Respondent's Pre-Trial Briefwas submitted on October 2, 2023.18 On October 27, 2023, the parties submitted their Joint Stipulation of Fads and Issues, 19 which was admitted and approved by the Court in its Resolution dated November 15, 2023,20 thereby deeming the termination of the Pre-Trial. The Pre-Trial Order dated February 19, 2024 was then issued.21 Trial then ensued, with both parties presenting and offering their respective testimonial and documentary evidence. 13 Docket- Vol. I, pp. 1-D to 57, and 87 to 88 (for the Corporate Secretary's Certificate). 14 Docket- Vol. I, pp. 240 to 260. 15 Respondent's Compliance dated June 26, 2023, Docket- Vol. I, pp. 235 to 237. 16 Notice of Pre-Trial Conference dated July 5, 2023, Docket- Vol. I, pp. 272 to 273; Minutes of the hearing held on, and Order dated, October 3, 2023, Docket- Vol. I, pp. 300 to 302. 17 Docket- Vol. I, pp. 274 to 286. 18 Docket- Vol. I, pp. 294 to 297. 19 Docket- Vol. I, pp. 317 to 328. 20 Docket- Vol. I, p. 330. 21 Docket- Vol. I, pp. 340 to 345.

DECISION CTA CASE NO. 11111 Petitioner offered the testimonies of the following individuals, namely: (1) Ms. Elizabeth D. Quingquing,22 petitioner's Finance Manager; and (2) Mr. Neil U. Sison,23 the Court-commissioned Independent Certified Public Accountant (ICP_A-). 24 The Amended and Final Report of the ICPA was submitted on May 6, 2024.25 On July 31, 2024, petitioner flied its Formal Offer of Evidence,26 to which respondent flied his Comment Re: Petitioner's Formal Offer ofEvidence on August 8, 2024_27 In the Resolution dated September 23, 2024,28 the Court admitted all of petitioner's offered exhibits. For his part, respondent presented the testimony of Revenue Officer III Michele J. Alonzo-Bucayu.29 On October 9, 2024, respondent flied his Formal Offer rif Evidence, 30 to which petitioner flied its Comment and Opposition (To the Respondent's Formal Offer of Evidence) on October 17, 2024.31 In the Resolution dated November 29, 2024,32 the Court admitted all of respondent's offered exhibits. In the meantime, respondent filed his Memorandum, 33 while petitioner submitted its Memorandum on January 28, 2025.34 The case was considered submitted for decision on February 6, 2025.35 22 Exhibit "P-30", Docket- Vol. I, pp. 91 to 116, and 224 (for the Attestation); Minutes of the hearing held on, and Order dated, February 29, 2024, Docket- Vol. I, pp. 361, and 363 to 364, respectively. 23 Exhibits "P-134", Docket- Vol. I, pp. 430 to 455, and 429 (for the Attestation); Minutes of the hearing held on, and Order dated, July 11, 2024, Docket- Vol. I, pp. 459 to 461. 24 Oath of Commission dated February 29, 2024, Docket- Vol. I, p. 362; Minutes of the hearing held on, and Order dated, February 29, 2024, Docket- Vol. I, pp. 361, and 363 to 364, respectively. 25 Exhibit "P-133", Docket- Vol. I, pp. 392 to 414. 26 Docket- Vol. I, pp. 465 to 476. 27 Docket- Vol. I, pp. 497 to 499. 28 Docket- Vol. I, pp. 503 to 504. 29 Exhibit "R-6", Docket- Vol. I, pp. 265 to 271; Minutes of hearing held on September 24, 2024, Docket- Vol. I, p. 505. 30 Docket- Vol. I, pp. 508 to 512. 31 Docket- Vol. I, pp. 516 to 517. 32 Docket- Vol. II, p. 521. 33 Docket- Vol. II, pp. 523 to 546. 34 Docket- Vol. II, pp. 550 to 613. 35 Minute Resolution dated February 6, 2025, Docket- Vol. II, p. _ .

DECISION CTA CASE NO. 11111 THE ISSUES The parties submit the following issues for this Court's resolution: ''PETITIONER: WHETHER OR NOT THE PETITIONER IS ENTITLED FOR TAX REFUND IN THE AMOUNT OF TWELVE MILLION SEVEN HUNDRED NINETY-SEVEN THOUSAND ONE HUNDRED EIGHTY-EIGHT PESOS AND FORTY-SIX CENTAVOS (PHP12, 797 ,188.46) REPRESENTING PETITIONER'S EXCESS AND UNUTILIZED INPUT VALUE ADDED TAX (VAT) ALLOCABLE TO ITS VAT ZERO- RATED SALES FOR THE PERIOD OCTOBER 1, 2020 TO DECEMBER 31, 2020 RESPONDENT: WHETHER OR NOT THE ADMINISTRATIVE DECISION, SERVED TO PETITIONER, ON DENYING THE CLAIM FOR REFUND BASED ON THE EVIDENCE PRESENTED BEFORE THE BUREAU OF INTERNAL REVENUE IS PROPER"36 THE ARGUMENTS OF THE PARTIES Petitioner claims that it is a VAT-registered taxpayer whose sales are entitled to VAT zero-rating; that its sales of services other than processing, manufacturing or repacking of goods were rendered to a non-resident foreign corporation, and paid for in acceptable foreign currency; that payment is made through offsetting; that freight revenue is attributable to export sales; that it has sales to economic zones or separate customs territories, Philippine Economic Zone Authority (PEZA) registered entities, Bases Conversion and Development Act, and Board of Investment (BOI) registered enterprise; that it has sales of service to Asian Development Bank (j-\DB), Consular Office ofJapan/Embassy ofJapan, and Philippine Amusement and Gaming Corporation (PAGCOR); that petitioner had unutilized and unapplied input tax credits for the period from 36 Par. B, JSFI, Docket- Vol. I, pp. 317 to 318.

DECISION CTA CASE NO. 11111 October 1, 2020 to December 31, 2020 allocable to its zero-rated sales in the aggregate amount of P12,797,188.46; that petitioner timely filed its administrative claim within the two (2)-year prescriptive period; that petitioner seasonably filed this Petition for Review with the Court against the decision of the authorized representative of the respondent under Section 112(C) of the Tax Code; and that petitioner should have been granted refund of P12,797,188.46 for the period October 1, 2020 to December 31, 2020. Respondent contends that it is an established fact that when a decision has already been rendered by respondent, the duty of the Court, as held by the Supreme Court, is now limited in determining whether the decision is proper; that the decisions of administrative body are given weight especially so if based on substantial evidence; that the Petition must be dismissed for failure of petitioner to substantiate its administrative claim for refund; that petitioner is not entitled to the VAT refund; and that tax refunds are strictly construed against the taxpayer and in favor of the government. THE RULING OF THE COURT The present Petition for Review must be denied for lack of merit. Requisites under the law for the refund or issuance of tax credit certificate ofinput VAT. Section 112 of the NIRC of 1997, as last amended by Republic Act (RA) No. 10963,37 provides, in part, as follows: "SEC. 112. Refunds or Tax Credits ofInput Tax.- (A) Zero-Rated or EJ!ective!J 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 37 AN ACT AMENDING SECTIONS 5, 6, 24, 25, 27, 31, 32, 33, 34, 51, 52, 56, 57, 58, 74, 79, 84, 86, 90, 91, 97, 99, 100, 101, 106, 107, 108, 109, 110, 112, 114, 116, 127, 128, 129, 145, 148, 149, 151, 155, 171, 174, 175, 177, 178, 179, 180, 181, 182, 183, 186, 188, 189, 190, 191, 192, 193, 194, 195, 196, 197, 232, 236, 237, 249, 254, 264, 269, AND 288; CREATING NEW SECTIONS 51-A, 148-A, 150-A, 150-B, 237-A, 264-A, 264-B, AND 265-A; AND REPEALING SECTIONS 35, 62, AND 89; ALL UNDER REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES.

DECISION CTA CASE NO. 11111 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 or properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales: Provided, finaljy, That for a person making sales that are zero- rated under Section 108(B)(6), the input taxes shall be allocated ratably between his zero-rated and non-zero-rated sales. XXX XXX XXX (C) Period within which Refund ofInput Taxes shall be Made.- In proper cases, the Commissioner shall grant a refund for creditable input taxes within ninety (90) days from the date of submission of the official receipts or invoices and other documents in support of the application filed in accordance with Subsections (A) and (B) hereof: Provided, That should the Commissioner find that the grant of refund is not proper, the Commissioner must state in writing the legal and factual basis for the denial. In case of full or partial denial of the claim for tax refund, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim, appeal the decision with the Court of Tax Appeals: Provided, however, That failure on the part of any official, agent, or employee of the BIR to act on the application within the ninety (90)-day period shall be punishable under Section 269 of this Code." Based on the foregoing provision, jurisprudence has laid down certain requisites which the taxpayer-applicant must comply with to successfully obtain a credit/refund of input VAT. Said requisites may be classified into certain categories as follows: As to the timeliness of the filing of the administrative and judicial claims: 1. the refund claim is filed with the BIR within two (2) years after

DECISION CTA CASE NO. 11111 the close of the taxable quarter when the sales were made;38 2. in case of full or partial denial of the refund claim rendered within a period of ninety (90) days from the date of submission of the official receipts (ORs) or invoices and other documents in support of the application, the judicial claim shall be filed with this Court within thirty (30) days from receipt of the decision;39 With reference to the taxpayer's registration with the BIR: 3. the taxpayer is a VAT-registered person;40 In relation to the taxpayer's output VAT: 4. the taxpayer is engaged in zero-rated or effectively zero-rated sales;41 5. for zero-rated sales under Section 106(A)(2)(a)(1), (2) and (b) and Section 108(B)(1) and (2),42 the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with the Bangko Sentral ng Pilipinas (BSP) rules and regulations;43 As regards the taxpayer's input VAT being refunded: 6. the input taxes are not transitional input taxes;44 7. the input taxes are due or paid;45 38 Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue, G.R. No. 166732, 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. vs. Commissioner of Internal Revenue, G.R. No. 182364, August 3, 2010. 39 Refer to Energy Development Corporation vs. Commissioner of Internal Revenue, G.R. No. 203367, March 17, 2021; Commissioner of Internal Revenue vs. CE Casecnan Water and Energy Company, Inc., G.R. No. 212727, February 1, 2023; and Commissioner of Internal Revenue vs. Vestas Services Philippines, Inc., G.R. No. 255085, March 29, 2023. 40 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. vs. Commissioner of Internal Revenue, supra. 411d. 42 Under RA No. 10963, Section 106{A)(2)(a)(2) was renumbered to Section 106{A)(2)(a)(3) while Section 106{A)(2)(b) was deleted. However, there was no corresponding amendment to the subsections cited in Section 112{A) of the NIRC of 1997, as amended. 43 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., vs. Commissioner of Internal Revenue, supra. 441d. 451d.

DECISION CTA CASE NO. 11111 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 attributable to any of these sales, the input taxes shall be proportionately allocated on the basis of sales volume;46 and 9. the input taxes have not been applied against output taxes during and in the succeeding quarters.47 Relative to the jottrth and seventh requisites, 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. 48 The invoicing and substantiation requirements should be followed because it is the only way to determine the veracity of the taxpayer's claims.49 lYfore importantly, it must be emphasized that compliance with all the VAT invoicing requirements provided by tax laws and regulations is mandatory. 50 To be clear, Section 113 of the Tax Code, as amended by RA No. 9337,51 provides the VAT invoicing requirements under the law, to wit: "SEC. 113. Invoicing and Accottnting Reqttirements for VAT- registered Persons. - (A) Invoicing Reqttirements. - A VAT-registered person shall 1ssue: (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. 46 Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue, supra; and San Roque Power Corporation vs. Commissioner of Internal Revenue, supra. 47 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. vs. Commissioner of Internal Revenue, supra. 48 J.R.A. Philippines, Inc. vs. Commissioner of Internal Revenue, G.R. No. 171307, August 28, 2013. 49 Nippon Express {Philippines) Corporation vs. Commissioner of Internal Revenue, G.R. No. 191495, July 23, 2018. 50 Eastern Telecommunications Philippines, Inc. vs. Commissioner of Internal Revenue, G.R. No. 183531, March 25, 2015. 51 AN ACT AMENDING SECTIONS 27, 28, 34, 106, 107, 108, 109, 110, 111, 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 NO. 11111 (B) Information Contained in the VAT Invoite or VAT Offitial Rueipt. - The following information shall be indicated in the VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person, followed by his Taxpayer's Identification Number (TIN); (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax: Provided, That: (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. XXX XXX xxx." (Emphases added)

DECISION CTA CASE NO. 11111 Implementing the foregoing provision, Section 4.113-1 of Revenue Regulations (RR) No. 16-200552 provides as follows: "SEC. 4.113-1. Invoicing Requirements. - (A) A VAT-registeredperson 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 o/Jicial 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; 52 SUBJECT: Consolidated Value-Added Tax Regulations of 2005.

DECISION CTA CASE NO. 11111 (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, sales invoices (Sis) and ORs must be duly registered with the BIR as prescribed under Section 237, in relation to Section 238, of the NIRC of 1997, as amended by RA No. No. 10963, to wit: "SEC. 237. Issuance ofReceipts or Sales or Commercial Invoices.- (A) Issuance.- All persons subject to an internal revenue tax shall, at the point of each sale and transfer of merchandise or for services rendered valued at One hundred pesos (P100) or more, issue duly registered receipts or sale or commercial invoices, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: Provided, however, That where the receipt is issued to cover payment made as rentals, commissions, compensation or fees, receipts or invoices shall be issued which shall show the name, business style, if any, and address of the purchaser, customer or client: Provided, further, That where the purchaser is a VAT-registered person, in addition to the information herein required, the invoice or receipt shall further show the Taxpayer Identification Number (TIN) of the purchaser. XXX XXX xxx" (Emphasis added)

DECISION CTA CASE NO. 11111 "SEC. 238. Printing oJReceiptJ or SaleJ or Commercial InvoiceJ.- All persons who are engaged in business shall secure from the Bureau of Internal 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. XXX XXX XXX. " Furthermore, it must be emphasized that in cases flled before this Court, which are litigated de novo, party-litigants must prove every minute aspect of their case. 53 Thus, it behooves petitioner to show compliance with each of the foregoing requisites and invoicing requirements. Petitioner's administrative and judicial claims for refund/credit were timely filed. The firJt requisite provided in Section 112(A) of the NIRC of 1997, as amended, pertains to the filing of the administrative claim for tax credit or refund of input VAT before the BIR, within two (2) years after the close of the taxable quarter when the zero-rated sales or effectively zero-rated sales were made. The present claim covers the 4rh quarter of taxable year 2020. Counting two (2) years from the close of the said quarter, particularly, December 31,2020, the last day to file an administrative claim for refund of excess or unutilized input VAT was on December 31, 2022. Thus, the filing of petitioner's Application for Rejttnd ofUntttilized Inpttt Tax Related to Zero-rated SaleJ For the period October 1, 2020 53 Edison (Bataan) Cogeneration Corporation vs. Commissioner of Internal Revenue, et seq., 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, eta/., 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.

DECISION CTA CASE NO. 11111 to December 31, 2020,54 together with its Application for Tax Credits/Refunds (BIR Form No. 1914),55 was timely made within the two (2)-year prescriptive period. As for the second requisite, the same necessitates that the judicial claim must have been flied within thirty (30) days from receipt of respondent's decision or after the expiration of the ninety (90)-day period from the date of submission of the ORs or Sis and other documents in support of the application for refund under Section 112(C) of the NIRC of 1997, as amended by RA No. 10963. Counting ninety (90) days from petitioner's submission of its administrative claim on December 21, 2022, respondent had until March 21, 2023 to act on the said claim. Thus, respondent's VAT Rijimd Notice dated February 14, 2022,56 informing petitioner that its application for VAT refund was denied for lack of factual and legal bases, was issued well-within the ninety (90)- day period. Petitioner received the said VAT Refund Notice from respondent on March 3, 2023. Counting thirty (30) days therefrom, petitioner had until April 3, 202357 to file its judicial claim for refund. Therefore, the filing of the present Petition on Review on J\!Iarch 28, 202358 was likewise timely made. Such being the case, the Court finds that petitioner complied with the above-stated first and second requisites. Petitioner is a VAT-registered entity. Anent the third requisite, it is undisputed that petitioner is a VAT- registered person/ entity, with TIN 004-669-434-00000, as evidenced by BIR Certificate of Registration No. OCN 125RC20240000001634.59 Thus, there is no question that petitioner showed compliance with the said requisite. Petitioner is able to partially establish that it was engaged in zero- rated sales or effectively zero-rated 54 Exhibit "P-26", BIR Records (Exhibit "R-5"), pp. 281 to 303. 55 Exhibit "P-25", BIR Records (Exhibit "R-5"), p. 304. 56 Exhibits "P-29" and "R-4" to "R-4-A'', BIR Records (Exhibit "R-5"), pp. 425 to 453. 57 April 2, 2023 fell on a Sunday. 58 Docket- Vol. I, pp. 1-D to 57, and 87 to 88 (for the Corporate Secretary's Certificate). 59 Exhibit "P-3", Docket- Vol. I, pp. 493 to 495.

DECISION CTA CASE NO. 11111 sales during the 4th quarter of the taxable year 2020. The fourth and fifth requisites require that the taxpayer be engaged in zero- rated or effectively zero-rated sales and for zero-rated sales under Sections 106(A)(2)(a)(1), (2) and (b),60 and 108(B)(1) and (2) of the Tax Code, as amended, the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with BSP rules and regulations. In its amendedQuarterfy Value-Added Tax Return (BIR Form No. 2550-Q) for the 4th quarter of 2020,61 petitioner reported total sales of P1 ,585,966,198.44, detailed as follows: VATable sales p 788,822,879.41 Zero-rated sales 797,143,319.03 Total P1,585,966,198.44 Petitioner's zero-rated sales are categorized as follows: 62 Nature Total Sale to PEZA, AFAB, SBMA, and CDC p 372,214,061.27 Sale to NRFCs Sale to BOI 423,529,303.58 Sale to ADB, DFA, Consular Office ofJapan/Embassy ofJapan 378,331.68 Interbranch Sales 751,772.66 VATable Sales 281,115.97 Difference between QVAT and Schedules (10,481.48) TOTAL 784.65) p 797,143,319.03 Petitioner claims that its freight services to (i) Entities registered with PEZA, BOI, Clark Development Corporation (CDC), Subic Bay Metropolitan Authority (SBMA) and Freeport Area of Bataan (FAB); (ii) ADB; (iii) Consular Office ofJapan/Embassy ofJapan; and (iv) PAGCOR are effectively zero-rated sales,63 pursuant to Section 108(B)(3) of the Tax Code, as amended.64 60 Under RA No. 10963, Section 106{A}(2}(a)(2) was renumbered to Section 106{A}(2}(a)(3) while Section 106{A)(2)(b) was deleted. However, there was no corresponding amendment to the subsections cited in Section 112{A) of the NIRC of 1997, as amended. 61 Exhibit "P-17-1", Docket- Vol. I, pp. 152 to 153. 62 Item 9, Findings and Observation, Exhibit "P-133", Docket- Vol. I, p. 400. 63 Q&A No. 17, Exhibit "P-30", Docket- Vol. I, p. 94. 64 Par. 5.35, petitioner's Memorandum, Docket- Vol. II, p. 569.

DECISION CTA CASE NO. 11111 In order for sales to these entities to qualify as effectively zero-rated, and in addition to the essential element that the sale was made by a VAT registered person, it is imperative that the seller must prove that its customers are entities whose exemption is under special laws or international agreements to which the Philippines is a signatory, e.g., PEZA-,BOI-, CDC-, SBMA-, or FAB-registered. In this case, petitioner submitted 237 certifications issued by PEZA pertaining to its customers.65 Examination by the Court shows that the validity of the certifications are for the year 2020, except for the certifications for Cebu Mold Technology, Inc., Kenko Tokina Slik Corporation, and Philippines Kenko Corporation, which are valid for July to December 2020. 66 Nevertheless, the Court finds the same to be in order as they still cover petitioner's claim for the 4th quarter of 2020. As for petitioner's sales to BOI, CDC, SBMA, FAB, ADB, the Consular Office of Japan/Embassy of Japan, and PAGCOR, the Court notes that no documentary evidence was presented by petitioner that could prove that its sales to the said entities qualify as zero-rated sales. Thus, petitioner's sales thereon cannot be considered zero-rated sales in the claim for refund. For petitioner's services to non-resident foreign corporations (NRFCs),67 the same may be subject to zero percent (0%) VAT, pursuant to Section 108(B)(2) of the NIRC of 1997, as amended by RA No. 10963, which provides: "SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties. - XXX XXX XXX (B) Transactions Suf?ject to Zero Percent (0%) Rate. - The following services performed in the Philippines by VAT-registered persons shall be subject to zero percent (0%) rate: (1) Processing, manufacturing or repacking of goods for other persons doing business outside the Philippines which goods are subsequently exported, where the services are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP); 65 Exhibits "P-54" to "P-54-237", USB (Exhibit "P-133-2"). 66 Exhibits "P-54-218" to "P-54-220", USB (Exhibit "P-133-2"}. 67 Exhibit "P-55", USB (Exhibit "P-133-2"}.

DECISION CTA CASE NO. 11111 (2) Services other than those mentioned in the preceding paragraph, rendered to a person engaged in business conducted outside the Philippines or to a nonresident person not engaged in business who is outside the Philippines when the services are performed, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP);" Based on the foregoing provision, certain essential elements must be present for a sale or supply of services to be subject to the VAT rate of zero percent (0%) under Section 108(B)(2) of the NIRC of 1997, as amended by RA No. 10963, to wit: 1. The services fall under any of the categories under Section 108(B)(2),68 or simply, the services rendered should be other than ''processin~ mamtjadttring or repackinggoods",IJ9 2. The service must be performed in the Philippines70 by a VAT- registered person; 3. The recipient of the services is a foreign corporation, and the said corporation is doing business ozttside the Philippines, or is a nonresident person not engaged in business who is otttside the Philippines when the services were performed/1 and 4. The payment for such services should be in acceptable foreign currency accounted for in accordance with BSP rules. 72 The ICPA reported that only :P790,001,169.25 of petitioner's zero-rated sales complied with the invoicing requirements:73 68 Commissioner of Internal Revenue vs. American Express International, Inc. (Philippine Branch), G.R. No. 152609, June 29, 2005. 69 Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc., G.R. No. 153205, January 22, 2007. �7 Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc., supra; Commissioner of Internal Revenue vs. American Express International, Inc. (Philippine Branch}, supra. 71 Site/ Philippines Corporation {Formerly Clientlogic Phils. Inc.) vs. Commissioner of Internal Revenue, G.R. No. 201326, February 8, 2017; Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc., supra; Accenture, Inc. vs. Commissioner of Internal Revenue, G.R. No. 190102, July 11, 2012. 72 Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc., supra; Commissioner of Internal Revenue vs. American Express International, Inc. (Philippine Branch}, supra. 73 Exhibit "P-133", Docket- Vol. I, at p. 401.

DECISION CTA CASE NO. 11111 Exhibit Reference I Description Valid Invalid I Total P-60 Zero-rated sales of service properly 597,493,175.9~ I I P 597,493,175.98 substantiated by VAT ORs which complied with inv01cmg requirements P-61 I Zero-rated sales of service supported 26,132,360.73 1 26,132,360.73 by altered VAT ORs but are countersigned by the same person who signed the VAT ORs. P-62 Zero-rated sales of services 18,797,640.97 1 18,797,640.97 supported by altered VAT ORs but countersigned by Petitioner's authorized representative as evidenced by Petitioner's Certificate of Authorized Representatives Exhibit P-36). P-63 Zero-rated sales of service properly 2,835,182.32 P 9,318.60 2,844,500.92 substantiated by VAT ORs which complied with invoicmg requirements with Reconciling Items P-64 I Zero-rated sales of service properly 51,022,422.46 1 1 51,022,422.46 substantiated by VAT ORs which complied with inv01cmg requirements where Billings < ORs (WHICHEVER IS LOWER) P-70 I Zero-rated sales of service properly 19,733,795.87 1 407,641.56 1 20,141,437.43 substantiated by VAT ORs which complied with invo1e1ng requirements where ORs < Billings (WHICHEVER IS LOWER) P-72 Zero-rated sales of senrice properly 82,296,008.94 82,296,008.94 substantiated by VAT ORs which complied with inv01cmg requirements with Foreign Exchange Difference P-102 Zero-rated sales of service properly 1,390,368.88 1,390,368.88 substantiated by VAT ORs which compiled with inv01cmg requirements (Unreconciled) P-103 Zero-rated sales of services 272,058.29 272,058.29 supported by altered VAT ORs with countersign but not among the list of Petitioner's Authorized Representatives. P-65 Out-of-Period zero-rated sales 361,311.00 361,311.00 265,075.54 265,075.54 P-66 Unreadable zero-rated sales 3,000.00 3,000.00 P-67 Zero-rated sales supported with cancelled official receipts

DECISION CTA CASE NO. 11111 P-68 Zero-rated sales supported with no 8,053.49 8,053.49 P-69 2,498,822.30 2,498,822.30 P-82 OR date P-71 1,926,500.12 1,926,500.12 Invalid zero-rated sales due to non- -8,308,633.3 7 -8,308,633.3 7 compliance to lilvOlcmg -784.65 -784.65 requirements p 790,001,169.25 P7 ,142,149.78 P797,143,319.03 Zero-rated sales supported by altered VAT ORs but with incorrect customer details Unsupported zero-rated sales deductions Unverified amount TOTAL The Court agrees with the invalidity of the above-stated zero-rated sales. Thus, from the valid zero-rated sales per ICPA findings, the Court examined petitioner's compliance with the above-stated provisions of Section 108(B)(2) and (3) of the NIRC of 1997, as amended. Petitioner satisfactorily met the first and second essential elements. For the subject period of claim, petitioner rendered forwarding services in the Philippines as evidenced by the various BillingStatements74 issued by petitioner to its non-resident foreign customers. Clearly, these services fall within the scope of "services other than processing, manufacturing or repacking ofgoods" contemplated by the afore-mentioned provision. For the third essential element, petitioner submitted Certifications of Non- Registration ofCompatry issued by the Securities and Exchange Commission (SEC) and articles of foreign incorporation of its foreign clients.75 Examination of the subject documents reveals that petitioner failed to submit the articles of foreign incorporation of several NRFCs. In order to be considered as a non-resident foreign corporation doing business outside the Philippines, each entity must be supported, at the very least, by both a Certification of Non-Registration of Corporation/Partnership issued by the SEC, and proof of incorporation/registration in a foreign country (e.g., Articles/Certificate of Incorporation/Registration and/or Tax Residence Certificate). The Philippine SEC's Cettijication of Non-Registration of Corporation/ Partnership establishes that the recipient of the service has no registered business in the Philippines, and that it is not engaged in trade or business within the Philippines, while the certificate/articles of incorporation/association will prove that the said recipient of the service is 74 Exhibits "P-58-1 to "P-58-1313, USB (Exhibit "P-133-2"). 75 Exhibits "P-55" to "P-55-55", USB (Exhibit "P-133-2").

DECISION CTA CASE NO. 11111 indeed foreign. The said documents have been consistently required by this Court, for purposes of the said third essential element. In Commissioner ofInternal Revenue vs. Deutsche Knowledge Services Pte. Ltd./6 the Supreme Court affirmed the necessity of presenting the said documents in this wise: "For purposes of zero-rating under Section 108(B)(2) of the Tax Code, the claimant must establish the two components of a client's NRFC status, viz.: (1) that their client was established under the laws of a country not the Philippines or, simply, is not a domestic corporation; and (2) that it is not engaged in trade or business in the Philippines. To be sure, there must be sufficient proof of both of these components: showing not only that the clients are foreign corporations, but also are not doing business in the Philippines. XXX XXX XXX To recall, the CTA found that the SEC Certification of Non- Registration of Company and Authenticated Articles of Association and/or Certificates of Registration/Good Standing/Incorporation sufficiently established the NRFC status of 11 of DKS's affiliates clients. The Court upholds these findings. The Court accords the CTA's factual findings with utmost respect, if not finality, because the Court recognizes that it has necessarily developed an expertise on tax matters. Significantly, both the CTA Division and CTA En Bane gave credence to the aforementioned documents as sufficient proof of NRFC status. The Court shall not disturb its findings without any showing of grave abuse of discretion considering that the members of the tax court are in the best position to analyze the documents presented by the parties. In any case, after a judicious review of the records, the Court still do not find any reason to deviate from the court a quo's findings. To the Court's mind, the SEC Certifications of Non- Registration show that these affiliates are foreign corporations. On the other hand, the articles of association/certificates of incorporation stating that these affiliates are registered to operate in their respective home 76 G.R. No. 234445, July 15, 2020.

DECISION CTA CASE NO. 11111 countries, outside the Philippines are prima facie evidence that their clients are not engaged in trade or business in the Philippines." (Emphases added) Hence, petitioner's sales to NRFCs without SEC Certification of Non- Registration and foreign certificates/articles of incorporation/association shall be disallowed from the declared zero-rated sales. Examination of petitioner's schedule of zero-rated sales shows that the total amount ofP90,429,669.59 pertains to sales to entities without certifications from PEZA, BOI, CDC, SBMA, FAB, ADB, the Consular Office of Japan/Embassy of Japan, and PAGCOR, and sales to NRFCs without SEC Certificates of Non-Registration and/ or foreign certificates/articles of i n c o r p o r a t i o n / association: Exhibit No. Customer Amount P-60-10 ACCUFORMINC p 6,534.06 P-60-255 AIKAWA PHILIPPINES INC 4,025.00 P-60-416 AJATOCOLTD 20,500.00 P-60-1023 ALMEX TECH INC 27,137.40 P-60-885 ALMEX TECH INC 29,500.36 P-60-1180 ALMEX TECHNOLOGIES PHILIPPINES INC 73,934.79 P-60-1024 AN CORPORATION 55,250.26 P-60-1181 AN CORPORATION 40,948.17 P-60-886 AN CORPORATION 50,607.84 P-60-450 AN CORPORATION 6,630.55 P-60-724 AN CORPORATION 18,546.56 P-60-833 AN CORPORATION 14,506.88 P-60-469 ASIAN DEVELOPMENT BANK 60,000.00 P-60-818 ASIAN DEVELOPMENT BANK 16,200.00 P-60-1028 AXENT WOOD CORPORATION 599.31 P-60-1184 AXENT WOOD CORPORATION 2,096.41 P-60-142 BIONORMILZER NUTRACEUTICAL CORP 5,920.92 P-60-1325 CANON INC 2,483.91 P-60-473 CANON INC 55,358.13 P-60-1032 CASIO COMPUTER CO LTD 134,332.53 P-60-1188 CASIO COMPUTER CO LTD 20,347.20 P-60-891 CASIO COMPUTER CO LTD 70,030.18 P-60-800 CASIO COMPUTER CO LTD 47,080.87 P-60-1033 CASTEM PHILIPPINE CORPORATION 2,071.24 P-60-1189 CASTEM PHILIPPINE CORPOR_ATION 371.48 P-60-892 CASTEM PHILIPPINE CORPORATION 2,166.57 P-60-342 CASTEM PHILIPPINE CORPORATION 12,160.66 P-60-794 CASTEM PHILIPPINE CORPORATION 24,461.29 P-60-3 CEBU LOGITEM INC 63,230.00 P-60-42 CEBU LOGITEM INC 80,150.00 P-60-94 CEBU LOGITEM INC 68,230.00 --

DECISION CTA CASE NO. 11111 P-60-895 CENAPRO CHEMICAL CORPORATION 2,149.49 P-60-13 CENAPRO CHEMICAL CORPORATION 31,645.67 P-60-486 CHANGHONG TECHNOLOGY PHL CORP 38,500.00 P-60-582 CHIYODA INTEGRE PHILS CORP P-60-713 CHIYODA INTEGRE PHILS CORP 5,321.80 P-60-359 CITIZEN SYSTEMS JAPAN CO LTD 26,593.60 P-60-572 CITIZEN SYSTEMS JAPAN CO LTD 118,700.00 P-60-789 CITIZEN SYSTEMS JAPAN CO LTD 121,145.00 P-60-421 35,049.25 P-60-307 CJ LOGISTICS CORPORATION P-60-308 457.76 P-60-441 CONCENTRIX CVG PHILIPPINES INC 102,750.00 P-60-690 CONCENTRIX CVG PHILIPPINES INC P-60-385 CONCENTRIX CVG PHILIPPINES INC 56,100.00 CONCENTRIX CVG PHILIPPINES INC 23,000.00 P-60-730 CRESTEC PHILIPPINES INC 800.00 P-60-899 CRESTEC PHILS INC 1,400.00 ! P-60-750 CRESTEC PHILS INC 1,689.19 P-60-1338 CRESTEC PHILS INC CO KOUFU P-60-104 PACKAGING CORP 3.10 DAIWA SEIKO PHILS CORP P-60-8 DUCKIL KOREA INCORPORATED 1,453.50 P-60-80 DUCKIL KOREA INCORPORATED 51,187.88 P-60-586 DUCKIL KOREA INCORPORATED P-60-594 ELEMATEC ANGELES INC 3,450.00 P-60-714 ELEMATEC ANGELES INC 3,450.00 P-60-715 ELEMATEC ANGELES INC 3,450.00 P-60-393 ELEMATEC ANGELES INC 7,627.94 P-60-906 ELEMATEC ANGELES INC 47,500.00 P-60-1049 F2 GLOBAL LOGISTICS PHILS INC 46,100.00 P-60-1203 FREITAN GLOBAL LOGISTICS SP 10,150.13 P-60-908 FREITAN GLOBAL LOGISTICS SP 18,300.00 P-60-403 FREITAN GLOBAL LOGISTICS SP 170,258.71 P-60-568 FRPJHKCORP 1,832.52 P-60-863 FRPJHKCORP 6,231.30 P-60-1050 FRPJHKCORP 5,321.51 P-60-909 FRP JHK CORPORATION 81,916.00 P-60-735 FRP JHK CORPORATION 68,919.00 P-60-913 FUJI PLASTIC INDUSTRY PHILS INC 113,242.00 P-60-583 FUJIFILM PHILIPPINES INC 2,755.89 P-60-1056 GF MICRO OPTICS PHILS INC 3,053.92 P-60-127 GOJI INDUSTRY PHILS CORP 10,255.35 P-60-415 GOJI INDUSTRY PHILS CORP 8,343.74 P-60-790 GOOD CENTURY PHILIPPINES INC 4,100.00 P-60-801 GOOD CENTURY PHILIPPINES INC 1,083.00 P-60-1359 GOOD CENTURY PHILIPPINES INC 5,843.64 P-60-407 HANSA CREATION INCHANSA BLDG 373,684.85 P-60-564 HAYAKAWACOMPONENTTECHINC 616,715.70 P-60-811 HAYAKAWACOMPONENTTECHINC 360,693.49 P-60-680 HAYAKAWACOMPONENTTECHINC 7,500.00 P-60-1061 HIBLOW PHILIPPINES INC 26,800.00 P-60-530 HRD SINGAPORE PTE LTD 12,400.00 HRD SINGAPORE PTE LTD 26,100.00 4,500.00 5,030.75 3,335.97

DECISION CTA CASE NO. 11111 P-60-1062 INSULAR BOTANICALS INTL INC 1,538.76 P-60-9 INTEGRATED FLOW SYSTEMS IFS 49,300.00 P-60-147 IWATANI PHILIPPINES INC 24,750.00 P-60-487 IWATANI PHILIPPINES INC 64,250.00 P-60-488 IWATANI PHILIPPINES INC 7,148.84 P-60-414 KAIFA TECHNOLOGY PHILIPPINES INC 1,000.00 P-60-459 KANEPACKAGE PHILIPPINE INC 5,089.35 1 P-60-765 KANEPACKAGE PHILIPPINE INC 5,053.65 P-60-437 KKM WORKSINC 4,100.00 P-60-763 KKM WORKSINC 4,100.00 P-60-783 KODO PHILIPPINES INC 3,700.00 P-60-314 KORYO SUBIC INC 4,396.91 P-60-709 KORYO SUBIC INC 22,795.11 P-60-751 KORYO SUBIC INC 7,746.40 P-60-189 LINTEC PHILIPPINES PEZA INC 23,500.00 P-60-52 MACTAN APPARELS INCORPORATED 3,000.00 P-60-57 MACTAN APPARELS INCORPORATED 3,000.00 P-60-95 MACTAN APPARELS INCORPORATED 3,000.00 P-60-98 MACTAN APPARELS INCORPORATED 3,000.00 ! P-60-54 MARKET GLOBAL CEBU INDUSTRIES INC 3,685.00 P-60-55 MARKET GLOBAL CEBU INDUSTRIES INC 3,630.00 P-60-418 MATSUI MFG S PTE LTD 19,687.67 P-60-332 MEKTEC CORPORATION SIN PTE LTD 13,123.80 P-60-826 MEKTEC CORPORATION SIN PTE LTD 55,878.76 P-60-1229 MITSUBISHI MOTORS PHILS CORP 1,591.32 P-60-936 MITSUBISHI MOTORS PHILS CORP 10,136.21 P-60-664 MITSUBISHI MOTORS PHILS CORP 18,000.00 P-60-1080 MITSUMI ELECTRIC CO LTD 38,563.69 P-60-1230 MITSUMI ELECTRIC CO LTD 1,130,613.43 P-60-937 MITSUMI ELECTRIC CO LTD 588,368.63 P-60-1081 MITSUMI PHILIPPINES INC 265,650.55 P-60-1231 MITSUMI PHILIPPINES INC 55,746.49 P-60-938 MITSUMI PHILIPPINES INC 80,544.77 P-60-607 MITSUMI PHILIPPINES INC 271,283.10 P-60-718 lvHTSUMI PHILIPPINES INC 130,192.27 P-60-766 MITSUMI PHILIPPINES INC 1,015,792.48 P-60-939 MOBILIA PRODUCTS INC 829.52 P-60-1082 MR YUKI SHINOHARA 182.99 P-60-1233 MR YUKI SHINOHARA 177,848.25 P-60-1234 MS. SACHIKO OHSAKI 2,838.54 P-60-1084 Ni\IGAI GOMU PHILIPPINES CORP 9,370.04 P-60-1237 NAIGAI GOMU PHILIPPINES CORP 20,404.12 P-60-230 NAIGAI GOMU PHILIPPINES CORP 31,166.00 P-60-231 NAIGAI GOMU PHILIPPINES CORP 31,157.60 P-60-232 NAIGAI GOMU PHILIPPINES CORP 31,178.60 P-60-521 NAIGAI GOMU PHILIPPINES CORP 31,115.60 P-60-526 Ni\NOX PHILIPPINES INC 2,621 ,896.15 P-60-1087 NBC PHILIPPINES CAR TECH CORP 40,081.80 P-60-1240 NBC PHILIPPINES CAR TECH CORP 14,826.53 P-60-422 NBC PHILS CAR TECHNOLOGY 18,866.70 P-60-1089 NEPCORD - -- 26,390.03 -��- ~ --~~ -~ -~~ -~ -~ -~

DECISION CTA CASE NO. 11111 P-60-1243 NEPC ORD 50,542.16 P-60-944 NEPCORD 204,183.78 P-60-1244 NICERA PHILIPPINES INC 210,605.57 P-60-945 NICERA PHILIPPINES INC P-60-322 NICERA PHILIPPINES INC 41,411.14 P-60-399 NICERA PHILIPPINES INC 96,742.62 P-60-476 NICERA PHILIPPINES INC 85,314.92 P-60-576 NICERA PHILIPPINES INC 33,313.93 P-60-717 NICERA PHILIPPINES INC 13,377.37 P-60-773 NICERA PHILIPPINES INC P-60-840 NIDEC SUBIC PHILS CORP 9,991.60 P-60-1092 NIDEC SUBIC PHILS CORP 16,374.20 P-60-1247 NIDEC SUBIC PHILS CORP 57,096.41 P-60-947 NIDEC SUBIC PHILS CORP 20,838.87 P-60-439 NIDEC SUBIC PHILS CORP 183,957.49 P-60-742 NIDEC SUBIC PHILS CORP P-60-1093 NIHON GARTER PHILIPPINES INC 5,775.88 P-60-1248 NIHON GARTER PHILIPPINES INC 37,250.00 P-60-948 NIHON GARTER PHILIPPINES INC 48,059.75 P-60-657 NIHON GARTER PHILIPPINES INC 17,825.81 P-60-1323 NIPPON EXPRESS BANGLADESH LTD 68,933.31 P-60-1096 NIPPON EXPRESS BELGIUM NV P-60-1252 NIPPON EXPRESS BELGIUM NV 4,825.59 P-60-1098 NIPPON EXPRESS CANADA LTD 5,392.11 P-60-952 NIPPON EXPRESS CANADA LTD 31,278.40 P-60-875 NIPPON EXPRESS CANADA LTD 1,311,351.45 P-60-1173 NIPPON EXPRESS CANADA LTD 612,007.24 NIPPON EXPRESS CHINACO LTD QINGDAO 537,199.41 P-60-1088 BR 330,633.74 NIPPON EXPRESS CHIN1\CO LTD QINGDAO 103,616.60 P-60-1241 BR 203,580.87 NIPPON EXPRESS CHINACO LTD QINGDAO P-60-942 BR 4,219.38 P-60-1101 NIPPON EXPRESS CO LTD AIR FRE P-60-1255 NIPPON EXPRESS CO LTD AIR FRE 7,553.96 P-60-955 NIPPON EXPRESS CO LTD AIR FRE P-60-956 NIPPON EXPRESS CO LTD KOBE 16,975.69 P-60-1103 NIPPON EXPRESS DE MEXICO SA DE CV 35,746.87 P-60-1256 NIPPON EXPRESS DE MEXICO SA DE CV 63,116.26 P-60-958 NIPPON EXPRESS DE MEXICO SA DE CV 65,747.17 P-60-1105 NIPPON EXPRESS DO BRASIL LTDA P-60-1258 NIPPON EXPRESS DO BRASIL LTDA 2,738.39 P-60-960 NIPPON EXPRESS DO BRASIL LTDA 947,176.81 P-60-1259 NIPPON EXPRESS FRANCE MOROCCO 347,260.96 P-60-961 NIPPON EXPRESS FRANCE MOROCCO 443,820.07 NIPPON EXPRESS GLOBAL LOGISTICS P-60-1176 4,424.44 SHANGHAI CO LTD 8,770.59 P-60-880 NIPPON EXPRESS GLOBAL LOGISTICS 6,810.83 1,056,502.13 P-60-1356 SHANGHAI CO LTD 100,961.25 P-60-1107 NIPPON EXPRESS GUANGZHOU CO LTD NIPPON EXPRESS INDIA PRIVATE 74,663.85 155,597.59 686,773.37 458,410.29

DECISION CTA CASE NO. 11111 P-60-1261 NIPPON EXPRESS INDIA PRIVATE 723,775.73 P-60-963 NIPPON EXPRESS INDIA PRIVATE 1,086,853.41 P-60-964 NIPPON EXPRESS ISTANBUL GLOBAL P-60-1322 NIPPON EXPRESS ISTANBUL GLOBAL 121,916.88 P-60-1361 NIPPON EXPRESS ISTANBUL GLOBAL 46,366.96 P-60-1110 NIPPON EXPRESS NEC LOGISTICS 470,417.14 P-60-1264 NIPPON EXPRESS NEC LOGISTICS 369,209.93 P-60-966 NIPPON EXPRESS NEC LOGISTICS 206,670.33 P-60-1111 NIPPON EXPRESS NEDERLAND BV 593,946.26 P-60-1265 NIPPON EXPRESS NEDERLAND BV 4,421,865.78 P-60-967 NIPPON EXPRESS NEDERLAND BV 4,006,025.18 P-60-1112 NIPPON EXPRESS PHILIPPINES CORP 4,099,760.48 P-60-1266 NIPPON EXPRESS PHILIPPINES CORP 42,756.80 P-60-1267 NIPPON EXPRESS SCHWEIZAG 133.44 P-60-968 NIPPON EXPRESS SCHWEIZAG 5,017.19 P-60-1169 NIPPON EXPRESS SHANGHAI CO LTD 2,988.40 P-60-969 NIPPON EXPRESS SHANGHAI CO LTD P-60-970 NIPPON EXPRESS SHENZHEN CO LTD 166,038.84 P-60-1117 NIPPON MICROMETAL CORP PHILS 231.32 P-60-1275 NIPPON MICROMETAL CORP PHILS P-60-321 NIPPON MICROMETAL CORP PHILS 1,705.00 P-60-345 NIPPON MICROMETAL CORP PHILS 11,536.96 P-60-431 NIPPON MICROMETAL CORP PHILS 30,751.32 P-60-590 NIPPON MICROMETAL CORP PHILS 81,473.49 P-60-696 NIPPON MICROMETAL CORP PHILS 23,500.00 P-60-712 NIPPON MICROMETAL CORP PHILS 86,158.77 P-60-795 NIPPON MICROMETAL CORP PHILS 52,474.75 P-60-1353 NIPPON SUPER PRECISION PHILS CORP 41,760.00 P-60-641 NIPPON SUPER PRECISION PHILS CORP 65,145.10 P-60-1170 NITTSU LOGISTICS THAILAND CO LTD 63,060.00 P-60-1119 NITTSU LOGISTICS THAILAND CO 81,000.00 P-60-1277 NITTSU LOGISTICS THAILAND CO 47,000.00 P-60-977 NITTSU LOGISTICS THAILAND CO 1'728,006.89 P-60-1177 NITTSU LOGISTICS THAILAND CO LTD 14,599.75 P-60-882 NITTSU LOGISTICS THAILAND CO LTD P-60-802 NITTSU NEC LOGISTICS LTD 8,932.52 P-60-978 NKC CONVEYORS PHILS CORP 16,797.46 P-60-115 NKC CONVEYORS PHILS CORP 1,491,156.75 P-60-17 NKC CONVEYORS PHILS CORP 2,900,972.78 P-60-575 NMB MINEBEA THAI LTD 290,898.40 P-60-470 NMBMINEBEA THAI LTD P-60-1279 NOMURA SECURITIES PHILS 99.74 P-60-32 ONNIGI PHILIPPINES INC 65,177.51 P-60-1124 OPTICAL TECHNOLOGY SPECIALISTS 221,138.09 P-60-983 OPTICAL TECHNOLOGY SPECIALISTS 735,429.03 P-60-101 OPTICAL TECHNOLOGY SPECIALISTS 336,253.99 P-60-1336 OPTICAL TECHNOLOGY SPECIALISTS 41,275.92 P-60-46 OPTICAL TECHNOLOGY SPECIALISTS 47,000.00 P-60-711 PANASONIC INDL DEVICES SALES ASIA 80,080.25 P-60-786 PANASONIC INDL DEVICES SALES ASIA 47,276.75 P-60-1126 PANASONIC INDL DEVICES SALES EUROPE 23,267.94 21,240.49 61,118.36 37,693.20 214,820.49 314,564.84

DECISION CTA CASE NO. 11111 P-60-1284 PANASONIC INDL DEVICES SALES EUROPE 428,375.88 P-60-984 380,898.95 PANASONIC INDL DEVICES SALES EUROPE P-60-264 43,706.60 PANASONIC INDUSTRIAL DEVICES SALES P-60-358 37,668.54 P-60-689 ASIA 300.00 P-60-49 PANASONIC INDUSTRIAL DEVICES SALES 4,939.00 P-60-76 ASIA 4,828.00 P-60-284 11,000.00 P-60-285 PANASONIC MFG PHILS CORP 12,000.00 P-60-686 11,000.00 PHILIPPINE LONG DISTANCE TEL 11,000.00 I 4,097.62 COMPANY 3,700.00 I P-60-687 32,193.00 I P-60-263 PHILIPPINE LONG DISTANCE TEL 20,353.45 20,841.95 P-60-734 COMPANY 17,495.85 P-60-490 44,966.00 P-60-1347 PHILIPPINE MATSUDEN INC 396,718.74 P-60-137 175,139.87 P-60-138 PHILIPPINE MATSUDEN INC 144,733.96 P-60-140 416,475.68 P-60-1289 PHILIPPINE MATSUDEN INC 31,313.71 P-60-991 49,288.26 P-60-1171 PHILIPPINE MATSUDEN INC 22,514.86 P-60-1178 139,999.76 P-60-883 PHILIPPINE SANYU CORPORATION 232,278.00 P-60-199 27,413.00 P-60-663 PHILIPPINE SANYU CORPORATION 209,110.40 P-60-669 39,785.85 P-60-135 PILIPINAS KYOHRITSU INC 102,481.88 P-60-139 145,570.00 P-60-220 PISHON CLARK PHILIPPINES INC 208,668.16 P-60-1140 39,896.40 P-60-554 PISHON CLARK PHILIPPINES INC 26,598.36 P-60-559 92,113.15 P-60-700 PISHON CLARK PHILIPPINES INC 333,022.82 P-60-796 11,005.86 P-60-797 PISHON CLARK PHILIPPINES INC 11,919.16 P-60-798 10,657.00 P-60-804 PMFTC INC 797,724.03 P-60-343 P-60-344 PT NIPPON EXPRESS INDONESIA 9,402.27 P-60-347 102,875.07 P-60-1142 PT NIPPON EXPRESS INDONESIA 96,107.22 P-60-1298 P-60-999 PT NIPPON EXPRESS INDONESIA 5,826.00 P-60-784 8,393.15 P-60-731 PT NIPPON EXPRESS INDONESIA P-60-1000 434.53 ~\MCARTECHNOLOGYINC ~-60-1144 ------ RAMCARTECHNOLOGYINC ~\MCARTECHNOLOGYINC SAMBON P AND E PHILS CORP SAMBON PANDE PHILS CORP SANKO GOSEI PHILIPPINES INC SANYO DENKI PHILIPPINES INC SANYO DENKI PHILIPPINES INC SANYO DENKI PHILIPPINES INC SANYO DENKI PHILIPPINES INC SANYO DENKI PHILIPPINES INC SANYO DENKI PHILIPPINES INC SANYO DENKI PHILIPPINES INC SANYO DENKI PHILIPPINES INC SANYO DENKI PHILS INC SANYO DENKI PHILS INC SANYO DENKI PHILS INC SCHLEMMER PHILIPPINES INC SCHLEMMER PHILIPPINES INC SCHLEMMER PHILIPPINES INC SCHLEMMER PHILIPPINES INC SERCOMM PHILIPPINES INC SEWING LIVE MACTAN CEBU INC SEWING LIVE MACTAN CEBU INC ----- ----

DECISION CTA CASE NO. 11111 P-60-14 SEWING LIVE MACTAN CEBU INC --- P-60-2 SEWING LIVE MACTAN CEBU INC P-60-48 SEWING LIVE MACTAN CEBU INC 10,420.00 P-60-65 SEWING LIVE MACTAN CEBU INC 13,483.56 P-60-47 SMART COMMUNICATIONSINC 3,851.99 P-60-1149 SMK ELECTRONICS PHILS CORP 4,991.50 P-60-316 SMK ELECTRONICS PHILS CORP 4,845.00 P-60-396 SMK ELECTRONICS PHILS CORP 91,732.67 I P-60-397 SMK ELECTRONICS PHILS CORP � P-60-579 SMK ELECTRONICS PHILS CORP 9,726.00 P-60-585 SMK ELECTRONICS PHILS CORP 30,654.58 P-60-771 SMK ELECTRONICS PHILS CORP 163,154.75 P-60-772 SMK ELECTRONICS PHILS CORP 73,238.00 P-60-1003 SOUHATSU CEBU MFG INC 34,469.90 136,070.00 P-60-1303 SOUHATSU CEBU MFG INC 47,258.67 13,012.72 P-60-84 SOUHATSU CEBU MFG INC P-60-419 STEPAN PHILIPPINES 19,734.45' P-60-723 STMICROELECTRONICS PTE LTD P-60-1150 SUMINAC PHILIPPINES INC 41,307.76 P-60-279 SUMINAC PHILIPPINES INC 70,039.07 P-60-682 SUMINAC PHILIPPINES INC 50,077.91 P-60-187 SUNMEC CORPORATION P-60-62 SURFACE TECHNOLOGY INTL PHILS 494.40 P-60-1005 TAKETORA PHILIPPINES INC 19,184.00 P-60-1152 TAKETORA PHILIPPINES INC 38,571.75 P-60-20 TAMIYA CHUO PHILIPPINES INC 96,025.71 P-60-21 TAMIYA CHUO PHILIPPINES INC P-60-93 TAMIYA CHUO PHILIPPINES INC 1,600.00 P-60-1007 TEIJIN FRONTIER CO LTD 3,879.50 P-60-1154 TEIJIN FRONTIER CO LTD 4,133.84 P-60-420 TEIJIN FRONTIER CO LTD 20,730.00 P-60-695 TEIJIN FRONTIER CO LTD 28,730.00 P-60-235 TESCOM PHILIPPINES INC 27,730.00 P-60-236 TESCOM PHILIPPINES INC 1,029.86 P-60-237 TESCOM PHILIPPINES INC 2,183.66 P-60-238 TESCOM PHILIPPINES INC 113,620.96 P-60-513 TESCOM PHILIPPINES INC 45,541.60 P-60-391 TEXAS INSTRUMENTS INC 11,500.00 P-60-1156 THE JAPAN FOUNDATION MANILA 11,500.00 P-60-125 TIMEX PHILIPPINES INC 12,500.00 P-60-51 TIMEX PHILIPPINES INC 14,500.00 P-60-183 TMP LOGISTICS INC 19,750.00 P-60-1010 TOKAI ENGEl CO LTD 1,400.00 P-60-1157 TOI<AI ENGEl CO LTD 6,690.64 P-60-1308 TOI<AI ENGEl CO LTD 3,000.00 P-60-754 TOI<AI ENGEl CO LTD 3,000.00 P-60-448 TOI<AI ENGEl COLTD 7,196.54 P-60-1011 TOKAI PRECISION PHILIPPINES INC 25,069.57 P-60-1158 TOI<AI PRECISION PHILIPPINES INC 15,450.94 P-60-1012 TOSHIBA LOGISTICS JAPAN 10,710.95 P-60-1159 TOSHIBA LOGISTICS JAPAN 10,288.44 9,250.78 19.80 248.81 136,303.98 773,154.95

DECISION CTA CASE NO. 11111 P-60-1310 TOSHIBA LOGISTICS JAPAN 719,974.70 P-60-471 TOSHIBA LOGISTICS JAPAN 475,582.06 P-60-694 TOSHIBA LOGISTICS JAPAN P-60-817 TOSHIBA LOGISTICS JAPAN 53,239.72 P-60-1162 TRENDY PLASTIC MFG INC 200,204.53 P-60-460 TRENDY PLASTIC MFG INC P-60-464 TRENDY PLASTIC MFG INC 38,291.71 P-60-849 TRENDY PLASTIC MFG INC 73,187.05 P-60-867 TRENDY PLASTIC MFG INC 66,749.01 P-60-555 TRENDY PLASTIC MFG INC P-60-702 TRENDY PLASTIC MFG INC 6,175.92 P-60-703 TRENDY PLASTIC MFG INC 13,929.60 P-60-704 TRENDY PLASTIC MFG INC 61,519.76 P-60-1315 VERTEX ONE APPAREL PHIL SINC 13,595.00 31,583.48 P-60-1019 W HYDROCOLLOIDS INC 33,288.12 P-60-1316 W HYDROCOLLOIDS INC 1,369.41 P-60-1358 WALLEM INNOVATIVE SOLUTIONS P-60-136 WALLEM INNOVATIVE SOLUTIONS 55.21 P-60-336 WISTRON INFOCOMM PHILS CORP P-60-440 WISTRON INFOCOMM PHILS CORP 2,251.23 P-60-741 WISTRON INFOCOMM PHILS CORP 9,701.00 P-60-821 WISTRON INFOCOMM PHILS CORP 21,803.98 Yt\SAKA PHIL INTL CORP 11,100.00 P-60-31 YOKOHAMA TIRE PHILIPPINES INC 18,500.00 P-60-197 YOKOHAMA TIRE PHILIPPINES INC 7,400.00 P-60-198 YOKOHAMA TIRE PHILIPPINES INC 7,400.00 P-60-273 YOKOHAMA TIRE PHILIPPINES INC 43,300.00 P-60-370 YOKOHAMA TIRE PHILIPPINES INC 1,253,000.00 P-60-376 YOKOHAMA TIRE PHILIPPINES INC 253,800.00 P-60-430 YOKOHAMA TIRE PHILIPPINES INC 567,600.00 P-60-523 YOKOHAMA TIRE PHILIPPINES INC 297,500.00 P-60-533 YOKOHAMA TIRE PHILIPPINES INC 1 ,493, 700.00 P-60-661 YOKOHAMA TIRE PHILIPPINES INC 2,435.00 P-60-666 ZAMA PRECISION INDUSTRY 87,800.00 P-60-426 380,800.00 1 '7 40,700.00 TOTAL 817,000.00 2,436.54 p 61,247,368.84 Exhibit No. Customer Amount P-61-71 ASIAN DEVELOPMENT BANK P-61-42 CALCOMP PRECISION PHILIPPINES p 182,307.01 P-61-51 CASIO COMPUTER CO LTD P-61-35 FREITAN GLOBAL LOGISTICS SP 1,400.00 P-61-16 MOBILIA PRODUCTS INC P-61-25 MOBILIA PRODUCTS INC 25,532.21 P-61-44 NANOX PHILIPPINES INC NIPPON EXPRESS NEC LOGISTIC 10,225.23 P-61-66 SINGAPORE PTE LTD PHILS BERANCH PHILSTAR HOSIERY INC 6,090.75 P-61-68 SMK ELECTRONICS PHILS CORP P-61-52 SOUHATSU CEBU MFG INC 13,552.23 P-61-13 WALLEM INNOVATIVE SOLUTIONS P-61-36 2,367,108.17 1,053,631.99 11,736.70 21,809.00 27,293.54 4,834.00

DECISION CTA CASE NO. 11111 P-61-43 YOKOHAMA TIRE PHILIPPINES INC 859,200.00 TOTAL I P 4,584,720.83 Exhibit No. Customer Amount P-62-187 P-62-23 ACBEL POLYTECH PHILIPPINES INC p 4,196.75 P-62-489 P-62-266 ALLIANCE MANSOLS INC 1,400.00 P-62-205 P-62-316 ALLIANCE MANSOLS INC 1,400.00 P-62-140 P-62-354 ALMEX TECH INC 18,797.92 P-62-355 P-62-449 ALMEXTECHINC 20,746.36 P-62-476 P-62-477 AMERICAN POWER COVERSION CORP 1,400.00 P-62-478 P-62-486 AMKOR TECH PHILS P1P2 INC 1,400.00 P-62-59 P-62-260 AMKOR TECH PHILS P1P2 INC 1,400.00 P-62-46 P-62-69 AMKOR TECH PHILS P1P2 INC 1,400.00 P-62-253 P-62-115 AMKOR TECH PHILS P1P2 INC 1,400.00 P-62-87 1,400.00 P-62-279 AMKOR TECH PHILS P1 P2 INC P-62-353 P-62-58 AMKOR TECH PHILS P1P2 INC 1,400.00 P-62-1 01 P-62-119 AMKOR TECH PHILS P1P2 INC 1,400.00 I P-62-21 P-62-248 AMKOR TECH PHILS P1P2 INC 1,400.00 P-62-327 P-62-360 AMKOR TECH PHILS P1 P2 INC 1,400.00 P-62-361 P-62-425 ANDA POWER CORPORATION 3,762.25 P-62-490 P-62-338 APOLLO TRADING AND MFG CORP 4,279.25 P-62-338 P-62-471 ARTESYN EMBEDED TECHNOLOGIES 1,400.00 P-62-299 P-62-84 ASIAN DEVELOPMENT BANK 132,714.45 P-62-194 P-62-174 CRESTEC PHILIPPINES INC 1,400.00 P-62-482 P-62-100 CRESTEC PHILIPPINES INC 1,400.00 P-62-168 P-62-31 CYPRESS SEMICONDUCTOR 1,400.00 P-62-37 P-62-38 CYPRESS SEMICONDUCTOR 1,400.00 CYPRESS SEMICONDUCTOR 1,400.00 DEKOKRAFT INC 3,877.45 DYSON ELECTRONICS PTE LTD 1,400.00 DYSON ELECTRONICS PTE LTD 1,400.00 DYSON ELECTRONICS PTE LTD 1,400.00 DYSON ELECTRONICS PTE LTD 1,400.00 DYSON ELECTRONICS PTE LTD 1,400.00 DYSON ELECTRONICS PTE LTD 1,400.00 DYSON ELECTRONICS PTE LTD 1,400.00 DYSON ELECTRONICS PTE LTD 1,400.00 EATON INDUSTRIES PHILIPPINES 54,090.15 EATON INDUSTRIES PHILIPPINES 129,968.21 ENTEL HK PHILIPPINES 1,400.00 F TECH SAND F PHILIPPINES INC 3,804.50 F TECH S AND F PHILIPPINES INC 3,830.50 FTECH SAND F PHILIPPINES INC 3,817.50 FUJINAME PHILIPPINES INC 5,201.75 GLOBAL MARINE SYSTEMS LIMITED 1,400.00 IM DIGITAL PHIL INC 1,400.00 IM DIGITAL PHIL INC 1,400.00 IM DIGITAL PHIL INC 1,400.00 IM DIGITAL PHIL INC 1,400.00 IM DIGITAL PHIL INC - -- 1,400.00 -

DECISION CTA CASE NO. 11111 P-62-44 IM DIGITAL PHIL INC 1,400.00 P-62-448 IM DIGITAL PHIL INC 1,400.00 P-62-45 IM DIGITAL PHIL INC 1,400.00 P-62-457 IM DIGITAL PHIL INC 1,400.00 P-62-53 IM DIGITAL PHIL INC 1,400.00 P-62-64 IM DIGITAL PHIL INC 1,400.00 P-62-65 IM DIGITAL PHIL INC 1,400.00 P-62-73 IM DIGITAL PHIL INC 1,400.00 P-62-75 IM DIGITAL PHIL INC 1,400.00 P-62-76 IM DIGITAL PHIL INC 1,400.00 P-62-77 IM DIGITAL PHIL INC 1,400.00 IM DIGITAL PHIL INC 1,400.00 I IM DIGITAL PHIL INC 1,400.00 JT INTERNATIONAL ASIA PHILS INC 1,400.00 P-62-78 P-62-99 LES GANTS PHILIPPINES INC 7,936.89 P-62-192 LES GANTS PHILIPPINES INC 7,217.02 I P-62-225 MEKTEC CORPORATION SIN PTE LTD 35,736.24 MITSUBOSHI PHILIPPINES 41,554.27 P-62-88 MITSUMI PHILIPPINES INC P-62-179 MORIROKU PHILIPPINES INC 8,101.28 P-62-405 NANOX PHILIPPINES INC 1,400.00 P-62-81 NEXPERIA PHILIPPINES INC 2,599,221.51 P-62-481 NEXPERIA PHILIPPINES INC 1,400.00 P-62-340 NEXPERIA PHILIPPINES INC 1,400.00 P-62-221 NIPPON EXPRESS CANADA LTD 1,400.00 P-62-83 NIPPON EXPRESS ITALIA SRL 36,013.66 P-62-289 OPTICAL TECHNOLOGY SPECIALISTS 8,634.64 P-62-469 PANASONIC INDUSTRIAL DEVICES SALES 23,597.63 P-62-264 ASIA P-62-416 PANASONIC INDUSTRIAL DEVICES SALES I ASIA P-62-149 PHIL ADVANCED PROCESSING TECH INC 41,754.80 PHIL AMUSEMENT AND GAMING CORP P-62-173 PHILIPPINE ADVANCED PROCESSING 124,825.11 P-62-334 PHILIPPINE ADVANCED PROCESSING 1,400.00 P-62-80 3,032.50 P-62-62 TECHNOLOGY INC 1,400.00 PHILIPPINE MATSUDEN INC P-62-382 PHILIPPINE SANYU CORPORATION 11,720.93 PHILS ADVANCED PROCESSING P-62-123 TECHNOLOGY INC 10,000.00 P-62-255 PHILS ADVANCED PROCESSING 4,069.44 TECHNOLOGY INC P-62-163 PHILS ADVANCED PROCESSING 9,642.00 TECHNOLOGY INC P-62-300 PHILS ADVANCED PROCESSING 17,314.44 TECHNOLOGY INC P-62-488 PHILS ADVANCED PROCESSING 3,025.00 TECHNOLOGY INC P-62-52 PHILSTAR HOSIERY INC 3,032.50 PHILSTAR HOSIERY INC P-62-85 PHILSTAR HOSIERY INC 3,040.00 P-62-262 53,118.50 P-62-263 3,282.97 P-62-348 7,508.63 --

DECISION CTA CASE NO. 11111 P-62-349 PHILSTAR HOSIERY INC -- P-62-350 PHILSTAR HOSIERY INC P-62-379 PHILSTAR HOSIERY INC 4,509.62 P-62-380 PHILSTAR HOSIERY INC 13,073.50 P-62-387 PHILSTAR HOSIERY INC 25,599.00 P-62-408 PHILSTAR HOSIERY INC 10,205.48 P-62-438 PHILSTAR HOSIERY INC 30,662.85 P-62-283 PINNACLE SUPPLY CHAIN INC 77,177.50 P-62-351 PINNACLE SUPPLY CHAIN INC P-62-352 PINNACLE SUPPLY CHAIN INC 4,677.99 P-62-378 PINNACLE SUPPLY CHAIN INC 1,400.00 P-62-470 PINNACLE SUPPLY CHAIN INC 1,400.00 P-62-491 PINNACLE SUPPLY CHAIN INC 1,400.00 P-62-494 PINNACLE SUPPLY CHAIN INC 1,400.00 1,400.00 P-62-304 PONDEROSA LEATHER GOODS COINC 1,400.00 1,400.00 P-62-19 PREMIER KNITTING CORPORATION P-62-126 RAMCARTECHNOLOGYINC 11,189.50 P-62-456 RAMCARTECHNOLOGYINC P-62-233 SAMPO MOLDING AND ASSEMBLY IND 3,278.60 SAMSUNG SDS GLOBAL SCL PHILIPPINES CO 20,121.84 P-62-107 LTD 40,767.10 SAMSUNG SDS GLOBAL SCL PHILIPPINES CO P-62-108 LTD 3,843.50 SAMSUNG SDS GLOBAL SCL PHILIPPINES CO P-62-26 LTD 1,400.00 SAMSUNG SDS GLOBAL SCL PHILIPPINES CO P-62-169 LTD INC 1,400.00 P-62-421 SANKO GOSEI PHILIPPINES INC P-62-428 SANKO GOSEI PHILIPPINES INC 1,400.00 P-62-472 SANKO GOSEI PHILIPPINESINC P-62-252 SANYO DENKI PHILIPPINES INC 1,400.00 P-62-188 SATO PHILIPPINES AIDC SOLUTIONS INC 3,037.50 P-62-463 SDE PHILIPPINES CORP 3,032.50 P-62-122 SERCOMM PHILIPPINES INC 1,400.00 P-62-364 SILVERFOILTUBES INTERNATIONAL INC 6,412.10 P-62-151 SMK ELECTRONICS PHILS CORP 4,492.40 P-62-97 SMK ELECTRONICS PHILS CORP 1,400.00 P-62-34 TAIYO PLASTIC CORP OF THE PHIL 5,750.00 P-62-29 TEXAS INSTRUMENTS INC 3,022.50 P-62-93 TEXAS INSTRUMENTS INC 54,798.25 P-62-10 TMP LOGISTICS INC 41,713.00 P-62-11 TMP LOGISTICS INC 186,460.40 P-62-124 TMP LOGISTICS INC 1,400.00 P-62-125 TMP LOGISTICS INC 1,400.00 P-62-273 TMP LOGISTICS INC 4,319.73 P-62-455 TMP LOGISTICS INC 2,881.52 TOKAI ELECTRONICS PHILIPPINES INC 1,436.95 P-62-9 TOMS MANUFACTURING CORP 18,720.84 P-62-404 W HYDRO COLLOIDS INC 6,957.95 P-62-98 WINCESS INC 5,743.54 WU KONG SINGAPORE PTE LTD 20,413.37 P-62-6 132,094.60 P-62-433 16,287.27 4,500.00 8,862.00

DECISION CTA CASE NO. 11111 P-62-51 WU KONG SINGAPORE PTE LTD 4,886.90 P-62-157 2,465.00 P-62-227 YOKOHAMA TIRE PHILIPPINES INC 2,427.50 P-62-298 2,417.50 P-62-347 YOKOHAMA TIRE PHILIPPINES INC 8,639.75 I P-62-496 2,425.00 P-62-79 YOKOHAMA TIRE PHILIPPINES INC 2,432.50 P-62-158 2,427.78 P-62-401 YOKOHAMA TIRE PHILIPPINES INC 2,425.27 P-62-402 2,425.05 P-62-450 YOKOHAMA TIRE PHILIPPINES INC 2,538.26 4,359,220.41 YOKOHA:NIA TIRE PHILIPPINES INC ZAMA PRECISION INDUSTRY ZAMA PRECISION INDUSTRY ZAMA PRECISION INDUSTRY ZAMA PRECISION INDUSTRY -- TOTAL p --- - Exhibit No. Customer Amount P-63-3 NIPPON EXPRESS NEC LOGISTIC P-63-10 SINGAPORE PTE LTD PHILS BRANCH p 593,762.73 TOKAI ELECTRONICS PHILSINC 6,435.52 TOTAL p 60(),198.25 - - Exhibit No. Customer Amount I P-64-18 CONCENTRIX DAKSH SERVICES PHIL CORP P-64-1 p 2,000.00 . P-64-2 CONSULAR OFFICE OF JAPANCEBU P-64-20 CONSULAR OFFICE OF JAPANCEBU 11,440.00 P-64-69 MITSUMI ELECTRIC CO LTD P-64-12 MITSUMI ELECTRIC CO LTD 11,240.00 P-64-13 MITSUMI PHILIPPINES INC P-64-28 MITSUMI PHILIPPINES INC 513,535.23 P-64-22 MITSUMI PHILIPPINES INC P-64-71 NIPPON EXPRESS DE MEXICO SA DE 498,796.05 P-64-70 NIPPON EXPRESS DE MEXICO SA DE P-64-40 NIPPON EXPRESS FRANCE MOROCCO 423,912.98 P-64-61 NIPPON EXPRESS FRANCE SA P-64-73 NIPPON EXPRESS FRANCE SA 656,329.12 P-64-62 NIPPON EXPRESS ISTANBUL GLOBAL P-64-63 NIPPON EXPRESS ITALIA SRL 491,208.32 P-64-64 NIPPON EXPRESS NEDERLAND BV P-64-72 NIPPON EXPRESS SCHWEIZ AG 667,774.45 P-64-55 NIPPON EXPRESS SHENZHEN CO LTD P-64-42 SCHLEMMER PHILIPPINES INC 617,831.53 SEWING LIVE MACTAN CEBU INC - 92,069.38 TOTAL 6,329.40 4,542.47 34,915.96 14,553.00 1,785,926.98 4,587.73 26,895.25 39,392.46 12,668.38 p 5,915,948.69 Exhibit No. Customer Amount P-70-8 P-70-7 NIPPON EXPRESS NEC LOGISTIC p 769,349.90 SINGAPORE PTE LTD PHILIPPINE BRANCH TOKAI ELECTRONICS PHILIPPINES INC 46,260.87 p 815,610.77 ----- -- TOTAL Exhibit No. I Customer Amount P-72-1 I ELEMATEC ANGELES INC p 1,558.16

DECISION CTA CASE NO. 11111 P-72-19 EMBASSY OF JAPAN 139,104.00 P-72-30 P-72-13 NIPPON EXPRESS BELGIUM NV 977,387.35 P-72-44 P-72-31 NIPPON EXPRESS CHINA CO LTD 2,231,577.94 P-72-24 P-72-41 NIPPON EXPRESS CHINA CO LTD 2,009,363.80 P-72-38 P-72-6 NIPPON EXPRESS CHINA CO LTD 1,904,073.17 P-72-39 P-72-20 NIPPON EXPRESS DE MEXICO SA DE 316,206.42 P-72-21 P-72-7 NIPPON EXPRESS DE MEXICO SA DE 276,620.05 P-72-26 NIPPON EXPRESS DO BRASIL LTD 12,727.02 P-72-8 NIPPON EXPRESS FRANCE SA 2,716.06 P-72-9 P-72-27 NIPPON EXPRESS INDIA PRIVATE 198,816.30 P-72-22 P-72-18 NIPPON EXPRESS INDIA PRIVATE LIMITED 641,492.21 P-72-2 P-72-42 NIPPON EXPRESS INDIA PVT LTD 290,683.51 NIPPON EXPRESS ITALIA SRA 3,101.58 NIPPON EXPRESS NEDERLAND BV 1,632,838.82 NIPPON EXPRESS NEDEIU~1\ND BV 1,913,470.00 NIPPON EXPRESS SCHWEIZ 4,487.18 NIPPON EXPRESS SCHWEIZ AG 4,442.84 PANASONIC INDUSTRIAL DEVICES EUROPE 134,600.59 STMICROELECTRONICS INC 139,540.54 STMICROELECTRONICS PTE LTD 24,369.16 TEIJIN FRONTIER CO LTD 47,425.10 TOTAL p 12,906,601.80 GRAND TOTAL_~ 90,429,669.~ Anent the fourth essential element, petitioner submitted to the Court certifications from Mizuho Bank, Ltd., MUFG Bank, Ltd., and RCBC77 to prove that payment for petitioner's services to its NRFC clients are in acceptable foreign currency and accounted for in accordance with BSP rules. Examination of the remaining zero-rated sales shows that payments to petitioner's sales to the following NRFCs in the aggregate amount of P228,924,808.80 are not in acceptable foreign currency as evidenced by the ORs issued by petitioner which are denominated in Philippine peso (PhP), to wit: EXHIBIT CUSTOMER AMOUNT No. NIPPON EXPRESS AUSTRALIA PTY LIMITED NIPPON EXPRESS CAMBODIA CO LTD p 82,610.74 P-60-950 NIPPON EXPRESS CHINA CO LTD P-60-951 NIPPON EXPRESS CO LTD 618.12 P-60-953 NIPPON EXPRESS DE ESPANA SA P-60-954 NIPPON EXPRESS DEUTSCHLAND 33,125.16 P-60-957 NIPPON EXPRESS HK CO LTD P-60-959 NIPPON EXPRESS KOREA CO LTD 61,272,519.48 P-60-962 NIPPON EXPRESS SIN PTE LTD P-60-965 309,299.79 ' -P�-6�0-�97-1 - 8,049,861.35 2,689,254.42 540,749.40 391,445.15 77 Exhibits "P-56-1" to "P-56-3", USB (Exhibit "P-133-2").

DECISION CTA CASE NO. 11111 P-60-972 NIPPON EXPRESS SOUTH ASIA AND 1,334,512.28 P-60-973 OCEANIA PTE LTD 1,502,370.77 P-60-974 NIPPON EXPRESS TAIWAN CO LTD 2,889,483.10 P-60-975 NIPPON EXPRESS THAILAND CO LTD P-60-992 NIPPON EXPRESS VIETNAM CO LTD 476,509.79 P-60-1095 PT NITTSU LEMO INDONESIA 13,423.03 I P-60-1097 NIPPON EXPRESS AUSTRALIA PTY P-60-1099 NIPPON EXPRESS CAMBODIA CO LTD 1,557,738.34 , P-60-1100 NIPPON EXPRESS CHINA CO LTD 0.20 P-60-1102 NIPPON EXPRESS CO LTD 1 P-60-1104 NIPPON EXPRESS DE ESPANA SA 424,892.20 I P-60-1106 NIPPON EXPRESS DEUTSCHLAND 38,388,686.86 P-60-1108 NIPPON EXPRESS HK CO LTD P-60-1109 NIPPON EXPRESS KOREA CO LTD 31,449.84 P-60-1113 NIPPON EXPRESS IviALAYSIA SDN 7,503,924.73 P-60-1114 NIPPON EXPRESS TAIWAN CO LTD 2,833,261.42 P-60-1115 NIPPON EXPRESS THAILAND CO LTD P-60-1116 NIPPON EXPRESS USA INC 632,819.42 P-60-1133 NIPPON EXPRESS VIETNAM CO LTD P-60-1251 PT NITTSU LEMO INDONESIA 142,397.17 P-60-1253 NIPPON EXPRESS AUSTRALIA PTY P-60-1254 NIPPON EXPRESS CHINA CO LTD 288,406.52 P-60-1257 NIPPON EXPRESS CO LTD 6,762,581.04 P-60-1260 NIPPON EXPRESS DEUTSCHLAND 1,748,745.50 P-60-1262 NIPPON EXPRESS HK CO LTD P-60-1263 NIPPON EXPRESS KOREA CO LTD 399,576.74 P-60-1268 NIPPON EXPRESS MALAYSIA SDN 32,594.01 NIPPON EXPRESS SIN PTE LTD 711,078.57 P-60-1269 NIPPON EXPRESS SOUTH ASIA AND 107,130.31 P-60-1270 OCEANIA PTE LTD 51,455,045.79 P-60-1271 NIPPON EXPRESS TAIWAN CO LTD 9,485,378.08 P-60-1272 NIPPON EXPRESS THAILAND CO LTD 2,677,989.92 P-60-1273 NIPPON EXPRESS UK LTD 1,064,117.90 P-60-1274 NIPPON EXPRESS USA INC 132,278.58 P-60-1290 NIPPON EXPRESS VIETNAM CO LTD 1,016,485.00 PT NITTSU LEMO INDONESIA 1,696,953.09 TOTAL 2,541,388.42 8,333,400.96 132,272.14 8,772,230.25 462,117.53 4,085.69 P228,924,808.80 The rest of petitioner's sales to NRFCs are traced to the certifications of inward remittances submitted, and upon review thereof, the Court found the following: 1. A sale to Panasonic Industrial Devices Sales (l\1) SDN BHD in the amount of $109.2878 was allegedly remitted through RCBC on December 1, 2020 with Bank Credit Memo No. S01227725, 78 Exhibit "P-60-845", USB (Exhibit "P-133-2").

DECISION CTA CASE NO. 11111 but the said reference cannot be found in the RCBC Certification dated April 12, 2022/9 2. There are discrepancies in the amount remitted and the amount per OR for sales to Rohm Semiconductor Singapore Pte Ltd without reconciliation or accounting for the difference: MUFG Bank Certificate of Inward Remittance (Exhibit "P-56-2") OR OR Amount Remittance Difference Exhibit No. (US$) (US$) 389.87 Reference No. Amount (US$) 74.18 P-60-628 214.68 40.32 P-60-1326 544.61 697TTP24396300 464.05 105.96 P-60-472 697TTP24522200 255.00 697TTP24263100 650.57 3. Payment for several sales to NRFCs were allegedly remitted but all came from the same remitter (Nippon Express Co. Ltd.) per bank certifications: Exhibit Customer Sales No. P-56-2 MUFG Bank, Ltd. -Ref' No. 697ITP24242700 P-60-874 Nippon Express Australia $ 5,485.79 p 269,790.21 P-60-881 2,601.39 127,176.28 P-60-1174 Nippon Express Korea 10,773.73 529,264.94 P-60-876 Nippon Express M SDN BHD 5,066.78 i P-60-877 35,170.53 P-60-878 Nippon Express MALAYSIA SDN 252,033.90 ' P-60-879 7,738.24 5,785,984.91 P-60-884 BHD 11,156.25 P-64-21 378,854.80 Nippon Express South Asia and Oceania 82.11 554,295.99 P-72-14 234,525.39 P-72-15 NiiPon Express Thai Co Ltd 4,060.84 P-72-16 11,613,441.18 P-72-17 Nippon Express Vietnam Co PT NITTSU LEMO INDONESIA Nippon Express Co. Ltd. NIPPON EXPRESS HK COMPANY LIMITED 32,469.27 1,597,011.82 32,946.84 1,639 '772.32 NIPPON EXPRESS SIN PTE LTD 29,547.28 1 ,445, 733.55 64,008.79 3,131,140.56 NIPPON EXPRESS TAIWAN CORP 471,572.39 p 27,328,561.30 NIPPON EXPRESS USA INC Sub-Total $ P-56-2 MUFG Bank, Ltd.- Ref No. 697ITP24368900 P-60-1167 Nippon Express South Asia and Oceania $ 25,652.00 p P-60-1168 Nippon Express Vietnam Co 24,842.70 P-60-1172 PT NITTSU LEMO INDONESIA 1,251,604.40 P-62-468 Nippon Express Australia Pty 31.31 1,234,199.39 P-64-41 NIPPON EXPRESS M SDN BHD 3,996.62 _ Y-7_2-37 NIPPON EXPRESS CO LTD 7,792.37 1,533.49 391,882.97 194,852.85 382,927.48 19,293,512.53 79 Exhibit "P-56-3", USB (Exhibit "P-133-2").

DECISION CTA CASE NO. 11111 P-72-32 NIPPON EXPRESS HK CO LTD 39,224.65 1,915,495.68 P-72-35 NIPPON EXPRESS KOREA CO LTD 3,751.55 182,211.48 . P-72-51 NIPPON EXPRESS SIN PTE LTD 36,867.87 1,807,540.52 NIPPON EXPRESS TAIWAN CO P-72-33 LTD 28,798.07 1,399,469.52 P-72-34 NIPPON EXPRESS THAI CO LTD 12,019.64 583,802.36 P-72-36 NIPPON EXPRESS USA INC 115,374.30 690,234.05 5,608,727.42 Sub-Total $ p 33,855,877.12 P-56-2 MUFG Bank, Ltd.- Ref No. 977ITP244947000 21,034.00 r 43.22 P-60-1175 Nippon Express South Asia and Oceania $ 1,022,890.90 P-60-1179 PT NITTSU LEMO INDONESIA 2,308.09 2,110.92 P-64-66 Nippon Express Australia Pty 8,536.87 111,970.97 P-64-67 NIPPON EXPRESS SIN PTE LTD 78,962.22 417,996.23 332,539.87 P-64-68 NIPPON EXPRESS USA INC 3,835,535.71 P-72-50 Nippon Express Co. Ltd. 42,110.67 16,213,148.68 P-72-45 NIPPON EXPRESS HK CO LTD 3,360.14 2,054,186.31 P-72-49 NIPPON EXPRESS KOREA CO LTD 163,043.75 NIPPON EXPRESS TAIWAN CO P-72-46 LTD 30,572.39 1,483,904.60 P-72-47 NIPPON EXPRESS THAI CO LTD 21,085.35 1,022,822.05 P-72-48 NIPPON EXPRESS VIETNAM CO 18,343.23 558,896.05 900,415.93 Sub-Total $ p 27,228,026.05 P-56-2 MUFG Bank, Ltd.- Ref No. 697ITP24365500 P-61-70 Nippon Express Co. Ltd. $ 325,359.51 r 15,818,026.99 Sub-Total $ 325,359.51 p 15,818,026.99 P-56-2 MUFG Bank, Ltd. -Ref No. 697ITP24494800 32,960.75 r 1,758.33 P-64-60 NIPPON EXPRESS DEUTSCHLAND $ 1,954.74 1,599,768.84 P-64-65 NIPPON EXPRESS UK LTD P-72-43 NIPPON EXPRESS DE ESPANA SA 36,673.82 85,414.64 Sub-Total $ 96,116.25 p 1,781,299.73 P-56-1 Mizttho Bank, Ltd.- Ref No. IIT789100321 P-72-4 NIPPON EXPRESS CO LTD $ 31,390.30 r 31,390.30 Sub-Total $ 1,589,638.19 p 1,589,638.19 P-56-1 Jvfizubo Bank, Ltd. -Ref No. ITT789110305 P-72-23 NIPPON EXPRESS CO LTD $ 25,562.86 r 25,562.86 Sub-Total $ 1,244,874.27 p 1,244,874.27 P-56-2 MUFG Bank, Ltd. -Ref No. 697TTP24242800 P-72-11 NIPPON EXPRESS DE ESPANA $ 1,293.97 r 65,059.16 P-72-5 NIPPON EXPRESS DEUTSCHLAND GMBH -� --- 26,825.36 1,310,619.01

DECISION CTA CASE NO. 11111 P-72-10 NIPPON EXPRESS UK LTD 1,535.37 75,130.78 P-72-12 NV NIPPON EXPRESS 22,189.46 1,096,170.48 51,844.16 p 2,546,979.43 Sub-Total $ P-56-2 MUFG Bank, Ltd.- Ref No. 697TTP24369000 P-72-29 P-72-25 NIPPON EXPRESS DE ESPANA $ 760.94 p 37,960.03 P-72-28 40,749.86 NIPPON EXPRESS DEUTSCHLAND 1,978,923. 70 845.31 NIPPON EXPRESS UK LTD 42,356.11 41,104.79 2,233,889.25 Sub-Total $ p 2,057 '988.52 TOTAL $ P113,451,271.60 The Court notes that petitioner or the ICPA did not provide a breakdown and corresponding ORs of the remittances received by petitioner. However, upon further examination by the Court of the ORs supporting petitioner's zero-rated sales (including the previously-mentioned foreign currency denominated sales to NRFCs), several zero-rated sales are disallowed due to failure to indicate the nature of services provided, which is in violation of the invoicing requirements pursuant to previously quoted Section 113(B)(3) of the NIRC of 1997, as amended. Further, scrutiny of the ORs issued by petitioner shows that the space in the document intended for the nature of the service provided is either: a) blank; b) indicates "services for the month of. .. " only; c) indicates "various invoices" but the invoice numbers are not specified; or d) indicates the invoice number(s), but the attached invoice(s) do not match, or no invoice is attached at all. Thus, the total amount ofP390,715,825.75 should be disallowed, broken down as follows: Exhibit No. Customer Amount P-60-1 MURAMOTO AUDIOVISUAL PHILS IHC P-60-4 PILIPINAS KAO INC p 214,320.95 P-60-6 PHILIPPINE MAKOTO CORPORATION 3,000.00 P-60-7 NKC MFG PHILS CORP 17,180.95 P-60-11 MAKOTO METAL TECHNOLOGY INC 93,642.98 P-60-12 FUNAI ELECTRIC CEBU INC 26,044.44 P-60-18 PHILIPPINE IINO CO 94,660.06 P-60-19 CEBU MITSUMI INC 47,808.34 P-60-22 TAIYO YUDEN PHILIPPINES INC P-60-25 QUEST DENTAL MATERIAL CORP 1,976,812.90 609,911.32 177,020.56

DECISION CTA CASE NO. 11111 P-60-26 ATOMED CEBU INC 84,405.70 PHILIPPINE KENKO CORPORATION 119,076.33 I 21,596.92 490,945.74 P-60-27 598,275.46 203,593.99 P-60-29 MATLUSTER CORPORATION 21,211.73 P-60-30 YAMASHIN CEBU FILTER MFG CORP 320,674.31 30,756.53 P-60-33 TAIYO YUDEN PHILIPPINES INC 21,252.77 P-60-34 MSMCEBUINC 1,740.00 P-60-36 INA MICRO OPTO CORPORATION 52,710.80 37,362.88 P-60-37 TAIYO YUDEN PHILIPPINES INC 133,764.65 P-60-38 CEBU IWAKAMI CORPORATION 3,230.00 P-60-41 AUTOLIV CEBU SAFETY MFG INC 69,060.68 43,738.86 P-60-45 CEBU TOYO CORPORATION 70,158.89 14,836.33 P-60-56 PHILIPPINE IINO CO 112,794.18 597,609.43 P-60-60 FUNAI ELECTRIC CEBU INC 66,908.11 337,020.91 P-60-64 PHILIPPINE IINO CO 187,109.33 1,670,034.27 P-60-66 DRAiv\ PHILIPPINES INC 661,802.65 42,912.26 P-60-69 DAITOH PRECISION INC 111,164.74 40,463.60 P-60-72 MINOURA PHILIPPINES CORP 66,194.12 30,456.90 P-60-73 MINOURA PHILIPPINES CORP 12,999.11 49,559.94 P-60-74 MATLUSTER CORPORATION 8,000.00 P-60-75 QUEST DENTAL MATERIAL CORP 36,320.00 72,022.95 P-60-77 YA1v1ASHIN CEBU FILTER MFG CORP 39,918.06 78,099.77 P-60-81 MAKOTO METAL TECHNOLOGY INC 13,630.00 27,049.04 P-60-83 TAIYO YUDEN PHILIPPINES INC 49,684.19 100,526.13 P-60-85 MURAMOTO AUDIOVISUAL PHILS INC 1,748.52 P-60-86 CEBU MITSUMI INC 76,784.37 34,275.60 P-60-87 TAIYO YUDEN PHILIPPINES INC 97,528.60 P-60-88 ATOMED CEBU INC 51,109.40 232,602.40 P-60-89 PHILIPPINE IINO CO 546,070.44 21,873.48 P-60-90 CEBU IWAKAMI CORPORATION P-60-91 PHILIPPINE IINO CO P-60-92 TAMIYA PHILIPPINES INC P-60-96 PHILIPPINE MAKOTO CORPORATION P-60-99 PHILIPPINE KENKO CORPORATION P-60-100 CEBU SHINSEI CORPORATION P-60-102 FUNAI ELECTRIC CEBU INC P-60-107 MINOURA PHILIPPINES CORP P-60-108 MINOURA PHILIPPINES CORP P-60-109 QUEST DENTAL MATERIAL CORP P-60-110 CEBU TOYO CORPORATION P-60-111 MATLUSTER CORPORATION P-60-112 MAKOTO METAL TECHNOLOGY INC P-60-113 TOYOFLEX CEBU CORPORATION P-60-114 PHILUNION FROZEN FOODS INC P-60-116 DAITOH PRECISION INC P-60-118 FUNAI ELECTRIC CEBU INC P-60-119 ATOMED CEBU INC KYOCERA DOCUMENT SOLUTIONS DEVT P-60-120 PHILS INC P-60-122 TAIYO YUDEN PHILIPPINES INC P-60-123 TAIYO YUDEN PHILIPPINES INC P-60-124 INA MICRO OPTO CORPORATION --

DECISION CTA CASE NO. 11111 P-60-129 NKC MFG PHILS CORP 52,910.71 P-60-130 TAMIYA PHILIPPINES INC 2,530.00 : P-60-131 NKC MFG PHILS CORP 154,981.13 P-60-132 RICOH IMAGING PRODUCTS PHILS 151,640.88 P-60-133 YAMASHIN CEBU FILTER MFG CORP 525,078.30 CEBU MITSUMI INC 1,553,413.07 I JMSHEALTHCAREPHLINC 54,885.94 VACUUMTECH PHILIPPINES INC 140,622.66 I P-60-134 BRIDGESTONE PRECISION MOLDING PHILS P-60-141 INC 521,641.38 P-60-146 FUTABA CORP OF THE PHILS 744,231.74 ENSYU TAKERU RUBBER INDUSTRIES INC 31,004.83 P-60-148 ENSYU TAKERU RUBBER INDUSTRIES INC 30,810.05 P-60-149 IRON WORKS NORTH BEARD PHILS INC P-60-153 PHILINAK INDUSTRIES INC 57,618.81 P-60-154 MARUICHI PHILIPPINES STEEL TUBE INC 136,921.30 P-60-156 ENSYU TAKERU RUBBER INDUSTRIES INC 30,000.00 P-60-158 ENSYU TAKERU RUBBER INDUSTRIES INC 31,395.63 I P-60-159 ENSYU TAKERU RUBBER INDUSTRIES INC 31,199.60 i P-60-160 HITACHI CABLE PHILIPPINESINC P-60-161 OB KOGYO PHILIPPINES INC 30,978.70 P-60-162 KAND KMOLDING INC 1,021,652.09 1 P-60-164 ENSYU TAKERU RUBBER INDUSTRIES INC P-60-165 ENSYU TAKERU RUBBER INDUSTRIES INC 20,961.34 P-60-166 ENSYU TAKERU RUBBER INDUSTRIES INC 30,900.00 . P-60-167 PHILINAK INDUSTRIES INC 29,500.00 P-60-170 PHILINAK INDUSTRIES INC 30,389.33 P-60-171 PHILINAK INDUSTRIES INC 31,183.93 P-60-172 HITACHI CABLE PHILS INC 88,670.50 P-60-173 K AND K MOLDING PHILIPPINES INC 139,130.54 P-60-174 ASTEC POWER PHILS INC 16,500.00 P-60-176 KATOLEC PHILIPPINES CORP 217,581.29 P-60-178 DENSO TEN PHILIPPINES CORP 12,600.00 P-60-179 LAGUNA METTS CORPORATION P-60-182 TS TECH TRIM PHILS INC 2,500.00 P-60-185 DENSO TEN PHILIPPINES CORP 723,050.00 P-60-188 DENSO TEN PHILIPPINES CORP 345,639.00 P-60-190 LAGUNA METTS CORPORATION 472,069.52 P-60-191 KEYENCE PHILIPPINES INC P-60-192 NEP LOGISTICS INC 33,159.75 P-60-193 ONDA GROUP OF COMPANIES INC 643,735.05 P-60-196 NEP LOGISTICS INC 431,162.05 P-60-200 NIDEC SANKYO PHILIPPINES CORP 485,693.80 P-60-201 OHGITANI PHILIPPINES INC P-60-203 NITTO DENKO PHILIPPINES CORP 56,298.12 P-60-204 NIDEC PHILIPPINES CORPORATION 3,456.60 P-60-206 DENSO TEN PHILIPPINES CORP 54,536.47 P-60-208 PHILIPPINE MANUFACTURING CO OF 50,559.66 P-60-209 MURATA INC P-60-210 ONDA GROUP OF COMPANIES INC 457,342.09 WU KONG SINGAPORE PTE LTD 17,500.00 P-60-212 P-60-213 --- 477,449.55 P-60-214 92,918.52 3,479.00 2,130,519.17 35,080.43 7,836.06

DECISION CTA CASE NO. 11111 P-60-215 WU KONG SINGAPORE PTE LTD 3,812.90 P-60-216 27,375.82 P-60-217 HOUSE TECHNOLOGY INDUSTRIES PTE LTD 171,684.31 P-60-221 148,752.18 P-60-226 ASIAN TRANSMISSION CORPORATION P-60-229 3,000.00 P-60-243 VACUUMTECH PHILIPPINES INC 10,800.00 P-60-244 116,606.37 P-60-247 MELTEC PHILIPPINES CORPORATION 122,182.33 P-60-252 72,500.00 P-60-253 VACUUMTECH PHILIPPINES INC 779,876.00 P-60-254 P-60-257 JUNTEC CORPORATION 5,016.63 I P-60-258 11,674.27 P-60-259 JUNTEC CORPORATION 44,600.00 P-60-261 639,758.95 VACUUMTECH PHILIPPINES INC 182,126.00 P-60-265 70,303.31 P-60-266 JMSHEALTHCAREPHLINC P-60-267 398,496.68 P-60-268 VAREX IMAGING PHILIPPINES INC 40,680.00 P-60-269 172,212.38 P-60-270 SHIMADZU PHILIPPINES MFG INC 21,490.00 P-60-271 JAE PHILIPPINES INC 109,827.35 P-60-272 100,887.54 P-60-275 JAE PHILIPPINES INC 17,460.00 P-60-276 JAE PHILIPPINES INC P-60-277 347,072.65 P-60-280 FUJIFILM OPTICS PHILS INC 66,827.47 P-60-281 P-60-283 CONTINENTAL TEMIC ELECTRONIC PHILS 684,387.55 P-60-287 411,833.27 P-60-291 INC P-60-292 74,400.00 P-60-298 ON SEMICONDUCTOR PHILS INC 8,831.39 P-60-299 3,500.00 P-60-300 FUTABA CORP OF THE PHILS 180,606.76 P-60-301 265,936.61 P-60-303 TEMIC AUTOMOTIVE PHILS INC 761,100.00 P-60-304 5,200.00 P-60-306 CAC PHILIPPINES INC 10,381.61 P-60-309 290,164.83 P-60-313 CAC PHILIPPINES INC 122,478.50 P-60-323 7,946.62 P-60-325 TEMIC AUTOMOTIVE PHILS INC 15,789.78 P-60-326 706,054.23 P-60-327 CONTINENTAL TEMIC ELECTRONIC PHILS 192,488.36 P-60-328 734,566.68 P-60-329 INC 479,339.95 40,628.39 NISSHO PRECISION PHILS INC 128,203.00 226,797.75 CONTINENTAL TEMIC ELECTRONIC PHILS 607,020.36 846,034.54 INC ENOMOTO PHILIPPINE MFTNG INC YUMEX PHILIPPINES CORP SANNO PHILIPPINES MFG CORP USHIO PHILIPPINES INC LAGUNA METTS CORPORATION DENSO TEN PHILIPPINES CORP KATOLEC PHILIPPINES CORP PHILIPPINE HKR INC MSPECIALTY PRINTING PHILS INC JOYSON SAFETY SYSTEMS PHILS CORP JOYSON SAFETY SYSTEMS PHILS CORP ALIBATA LIMITED ALIBATA LIMITED DENSO TEN PHILIPPINES CORP YAMAICHI SEIKO PHILIPPINES INC TY COMPOSITE INTERNATIONAL CORP MOLEX INTEG PRODUCTS PHIL INC MARUBUN ARROW PHILS INC JAE PHILIPPINES INC HAYAKAWA ELECTRONIC PHILS INC ROHM ELECTRONICS PHILIPINES INC ROHM ELECTRONICS PHILIPINES INC -- - -

DECISION CTA CASE NO. 11111 P-60-330 BLD ELECTRONICS PHILS INC 108,056.65 P-60-331 EDS MANUFACTURING INC 19,855.66 P-60-333 ELEMATEC PHILIPPINES INC 6,317.34 P-60-334 ELEMATEC PHILIPPINES INC 114,363.00 P-60-339 NAKASHIMA PHILIPPINES CORP P-60-341 FURUKAWA ELECTAUTOPARTS PHILS INC 273,281.51 P-60-349 LAGUNA AUTO PARTS MFG CORP 5,400.00 P-60-350 FUNAI ELECTRIC PHILIPPINES INC P-60-351 FUNAI ELECTRIC PHILIPPINES INC 120,562.38 P-60-352 FUJITSU DIE TECH CORP PHILS 261,100.00 P-60-354 BROTHER INDUSTRIES PHILS INC 605,667.50 P-60-355 BROTHER INDUSTRIES PHILS INC 830,724.07 P-60-356 BROTHER INDUSTRIES PHILS INC 1,296,950.00 P-60-357 EATON INDUSTRIES PHILIPPINES BRANCH 2,208,326.70 1,417,717.30 P-60-360 TERUMO PHILIPPINES CORP 438,520.49 I P-60-361 LAGUNA AUTO PARTS MFG CORP 1,304,982.59 P-60-365 YOZURI PHILIPPINES INC P-60-366 MINEBEA PHILIPPINES INC 165,472.95 P-60-367 JX NIPPON MINING AND METALS PHILS INC 118,485.66 P-60-368 TEMIC AUTOMOTIVE PHILS INC 160,563.39 P-60-369 CAC PHILIPPINES INC 133,691.48 P-60-371 SHINETSU MAGNETICS PHILS CONTINENTAL TEMIC ELECTRONIC PHILS 10,000.00 P-60-372 INC 80,674.45 P-60-373 ON SEMICONDUCTOR PHILS INC 2,465,697.35 P-60-374 KEYENCE PHILIPPINES INC P-60-375 TEMIC AUTOMOTIVE PHILS INC 1,145,455.62 CONTINENTAL TEMIC ELECTRONIC PHILS 190,670.00 P-60-377 INC 54,214.18 P-60-378 CANON BUSINESS MACHINES PHILS INC 83,240.00 ! CONTINENTAL TEMIC ELECTRONIC PHILS P-60-379 INC 620,346.35 P-60-380 FUTABA CORP OF THE PHILS 31,472.14 P-60-381 ON SEMICONDUCTOR PHILS INC P-60-386 ISUZU AUTO PARTS MFG CORP 242,634.60 P-60-394 NAGASE PHILS INT L SERVICES CORP 168,572.63 P-60-395 STMICROELECTRONICS INC P-60-398 ARKRAY INDUSTRY WEST INC 3,390.00 P-60-400 EATON INDUSTRIES PHILIPPINES BRANCH 8,858.46 P-60-401 PANASONIC INDUSTRIAL DEVICES PHILS INC 167,785.12 P-60-405 MITSUBA PHILIPPINES CORP 253,218.28 P-60-406 FUNAI ELECTRIC PHILIPPINES INC 1,147,514.40 P-60-408 FUNAI ELECTRIC PHILIPPINES INC 195,547.44 P-60-410 COVAC PHILIPPINES INC 243,334.81 P-60-411 COVAC PHILIPPINES INC 18,915.26 P-60-412 FUNAI ELECTRIC PHILIPPINES INC 250,700.00 P-60-423 COVAC PHILIPPINES INC 227,300.00 P-60-425 SIIX LOGISTICS PHILS INC 6,391.02 P-60-427 YUSEN LOGISTICS CENTER INC 106,065.22 P-60-434 SAN TECHNOLOGY INCORPORATED 309,200.00 P-60-438 FUJI ELECTRIC PI-:-IILIPPI!'JES_INC 38,165.09 38,000.00 4,916.25 163,095.16 264,508.41

DECISION CTA CASE NO. 11111 P-60-443 SUMI PHILIPPINES WIRING SYSTEMS CORP 129,120.40 P-60-447 HARADA AUTOMOTIVE ANTENNA PHIL 36,672.78 P-60-449 TOSHIBA INFO EQUIP PHILS INC 3,474.29 P-60-451 TERUMO PHILIPPINES CORP 431,019.93 P-60-452 MURATA ELECTRONICS PHILS INC 102,021.71 P-60-455 EPSON PRECISION PHILIPPINES INC 1,141,617.42 P-60-456 TDK PHILIPPINES CORPORATION 497,336.30 P-60-458 EDS MANUFACTURING INC 24,570.63 P-60-462 EPSON PRECISION PHILIPPINES INC 25,827,930.15 P-60-463 EHS LENS PHILIPPINES INC 788,069.91 P-60-465 F TECH PHILIPIINES MFG INC 548,261.34 P-60-467 FTECH PHILIPPINES MFG INC 362,671.06 P-60-468 FUJITSU DIE TECH CORP PHILS 169,745.97 ROHM SEMICONDUCTOR SINGAPORES PTE P-60-472 26,850.00 P-60-474 LTD 7,425.00 I P-60-475 P-60-479 FUJI ELECTRIC PHILIPPINES INC 245,017.50 JAE PHILIPPINES INC 40,691.27 I P-60-480 ELEMATEC PHILIPPINES INC P-60-481 PANASONIC INDUSTRIAL DEVICES PHILS 211,008.16 P-60-482 CORP 217,884.02 P-60-484 VACUUMTECH PHILIPPINES INC 123,000.00 P-60-485 TOYOTA TSUSHO PHILS CORP 175,420.75 P-60-491 JMSHEALTHCAREPHLINC 193,646.56 P-60-496 ASIAN TRANSMISSION CORPORATION P-60-499 NISSIN PRECISION PHILS CORP 19,376.89 P-60-501 JMSHEALTHCAREPHLINC 364,223.25 P-60-510 ARI<RAY INDUSTRY WEST INC P-60-511 VACUUMTECH PHILIPPINES INC 17,245.90 P-60-512 HKT PHILIPPINES INC 202,392.15 P-60-514 VACUUMTECH PHILIPPINES INC 36,407.55 P-60-515 JMSHEALTHCAREPHLINC 133,600.00 P-60-518 FUJIMOLD PHILIPPINES INC 215,600.00 P-60-519 TOYOTA TSUSHO PHILIPPINES CORP P-60-522 VACUUMTECH PHILIPPINES INC 19,180.20 P-60-524 JUNTEC CORPORATION 20,500.00 KEYENCE PHILIPPINES INC 3,200.00 P-60-525 CAC PHILIPPINES INC 117,140.63 P-60-527 CONTINENTAL TEMIC ELECTRONIC PHILS 80,512.30 P-60-528 INC 113,035.00 P-60-529 PV TECH PTE LTD P-60-531 SCAD SERVICES S PTE LTD 577,301.20 P-60-532 WU KONG SINGAPORE PTE LTD 2,912.45 P-60-534 SHINETSU l\1AGNETICS PHILS INC 15,248.58 P-60-538 NISSHO PRECISION PHILS INC 4,650.83 P-60-539 VISHAY PHILIPPINES INC P-60-540 KAND KMOLDING INCORPORATED 2,991,878.53 P-60-541 MARUICHI PHILIPPINES STEEL TUBE INC 101,874.92 P-60-543 PHILINAK INDUSTRIES INC 5,327.30 P-60-544 PHILINAK INDUSTRIES INC 66,600.00 HITACHI CABLE PHILS INC 54,000.00 ENSYU TAKERU RUBBER INDUSTRIES INC 112,468.32 106,675.50 315,655.36 31,210.05

DECISION CTA CASE NO. 11111 P-60-550 IRON WORKS NORTH BEARD PHILS INC 2o,4oo.oo I P-60-553 OB KOGYO PHILIPPINES INC 106,961.86 I P-60-556 COVAC PHILIPPINES INC 36,965.22 P-60-557 FUJITSU DIE TECH CORP PHILS 427,736.37 P-60-558 NISSEN PHILIPPINES INC P-60-561 BROTHER INDUSTRIES PHILS INC 58,200.00 P-60-562 FUNAI ELECTRIC PHILIPPINES INC 1,957,034.57 P-60-565 TY COMPOSITE INTERNATIONAL CORP P-60-566 MINEBEA PHILIPPINES INC 337,529.45 P-60-567 SIIX EMS PHILIPPINES INC 577,420.18 P-60-569 FUNAI ELECTRIC PHILIPPINES INC 135,637.32 P-60-571 EATON INDUSTRIES PHILIPPINES LLC 97,817.29 P-60-573 MANILA AMC MACHINERY CORP 300,400.00 P-60-574 OGINO PHILIPPINES CORP 3,684.75 P-60-587 ROHM ELECTRONICS PHILIPPINES INC 25,610.06 18,738.20 P-60-588 FUJIFILM OPTICS PHILS INC P-60-589 FUJIFILM OPTICS PHILS INC 973,714.27 P-60-591 HAYAKAWA ELECTRONIC PHILS INC P-60-592 SONION PHILIPPINES INC 378,660.78 P-60-593 SONION PHILIPPINES INC 180,647.46 P-60-595 ARI<RAY INDUSTRY WEST INC P-60-597 IONICS EMS INC 6,095.58 P-60-598 SAN TECHNOLOGY INC 54,786.10 P-60-599 EATON INDUSTRIES PHILIPPINES LLC 15,480.90 P-60-602 FURUKAWA AUTOMOTIVE SYSTEM PHILS INC 928,316.17 P-60-604 TERUMO PHILIPPINES CORP 11,500.00 P-60-605 ROHM ELECTRONICS PHILIPPINES INC 458,705.03 P-60-606 EPSON PRECISION PHILIPPINES INC 188,513.17 ARKRAY INDUSTRY ON BEHALF OF ARKRAY 1,350,707.02 P-60-608 366,871.01 GLOBAL BUSINESS INC 739,721.35 P-60-613 NEP LOGISTICS INC 1,134,289.70 P-60-614 NEP LOGISTICS INC P-60-615 NEP LOGISTICS INC 34,819.95 P-60-617 NIDEC PHILIPPINES CORPORATION P-60-626 SENJU SOLDER PHILS INC 519,156.00 P-60-627 KATOLEC PHILIPPINES CORP 226,793.85 ROHM SEMICONDUCTOR SINGAPORE PTE 1,852,254.90 P-60-628 LTD P-60-630 OHTSUKA POLYTECH PHILS INC 55,844.00 P-60-631 YAZAKITORRESMFGINC 4,650.00 P-60-632 KURODA ELECTRIC PHILS INC 744,600.00 P-60-635 JOYSON SAFETY SYSTEMS PHILS CORP P-60-638 DENSO TEN PHILIPPINES CORP 19,000.00 P-60-640 JOYSON SAFETY SYSTEMS PHILS CORP 84,912.51 P-60-644 ISUZU AUTO PARTS MFG CORP 29,150.25 P-60-645 TOSHIBA INFO EQUIP PHILS INC 5,000.00 P-60-647 TS TECH TRIM PHILS INC 162,000.00 P-60-648 DENSO TEN PHILIPPINES CORP 227,567.82 P-60-649 PHILIPPINE HKR INC 396,312.00 HONDA TRADING PHILIPPINES CORP 273,732.75 P-60-654 ECOZONE CORP 800,494.00 98,366.00 734,974.85 31,900.00 529,310.07

DECISION CTA CASE NO. 11111 P-60-655 GOSHI PHILIPPINES INC 312,232.95 P-60-658 KEYENCE PHILIPPINES INC 121,847.62 P-60-659 HOUSE TECHNOLOGY INDUSTRIES PTE LTD 20,158.40 P-60-660 SCAD SERVICES S PTE LTD 21,826.37 P-60-662 PHILIPPINE BATTERIES INC 33,000.00 P-60-665 CANON BUSINESS MACHINES PHILS INC 6,743,325.42 P-60-667 CANON BUSINESS MACHINES PHILS INC 205,126.89 i P-60-668 PHILIPPINE BATTERIES INC 285,452.50 P-60-670 ON SEMICONDUCTOR PHILS INC 146,683.99 P-60-672 CAC PHILIPPINES INC 38,790.00 P-60-673 SHINETSU MAGNETICS PHILS 2,841,809.40 P-60-675 PHILIPPINE NAGANO SEIKO INC P-60-677 PHILIPPINE NAGANO SEIKO INC 1,971.68 P-60-679 SHOWA ALUMINUM MFG PHILS CORP 10,233.75 249,597.31 P-60-688 SHOWA ALUMINUM MFG PHILS CORP 223,207.90 I P-60-691 BROTHER INDUSTRIES PHILS INC P-60-692 FUNAI ELECTRIC PHILIPPINES INC 3,185,200.35 P-60-693 TERUMO PHILIPPINES CORP 245,819.10 BROTHER INDUSTRIES PHILS INC I P-60-697 FTECH PHILIPPINES MFG INC 1,053,964.87 P-60-698 EPSON PRECISION PHILIPPINES INC 2,101,901.26 P-60-699 YOZURI PHILIPPINES INC P-60-701 EHS LENS PHILIPPINES INC 271,567.44 P-60-705 BROTHER INDUSTRIES PHILS INC 28,682,834.73 P-60-706 FUJITSU DIE TECH CORP PHILS P-60-707 FUJIFILM OPTICS PHILS INC 195,910.00 P-60-710 JAE PHILIPPINES INC 871,128.44 P-60-719 HAYAKAWA ELECTRONIC PHILSINC 3,149,662.00 P-60-720 JAE PHILIPPINES INC 247,465.43 P-60-721 JAE PHILIPPINES INC 76,134.82 P-60-722 TDK PHILIPPINES CORPORATION 119,444.50 P-60-725 FUJI ELECTRIC PHILIPPINES INC 347,179.40 P-60-726 NAKASHIMA PHILIPPINES CORP 479,305.00 P-60-727 HARADA AUTOMOTIVE ANTENNA PHIL 760,989.84 P-60-728 NIDEC SANKYO PHILIPPINES CORP 253,462.80 P-60-729 SUMITRONICS PHILIPPINES INC 230,162.73 P-60-733 SUMI PHILIPPINES WIRING SYSTEMS CORP 310,583.33 P-60-739 FUJI ELECTRIC PHILIPPINES INC P-60-740 CITIZEN FINEDEVICE PHILS CORP 51,013.44 P-60-743 MARUBUN ARROW PHILS INC 232,107.88 P-60-745 FTECH SAND F PHILIPPINES INC P-60-746 LAGUNA AUTO PARTS MFG CORP 8,600.00 P-60-748 SUMI PHILIPPINES WIRING SYSTEMS CORP 121,000.00 P-60-752 FUJITSU DIE TECH CORP PHILS P-60-755 HAYAKAWA ELECTRONIC PHILS INC 6,075.00 P-60-757 PANASONIC INDL DEVICES SALES PHILS 167,500.22 CORP P-60-760 ROHM ELECTRONICS PHILIPPINES INC 44,426.79 P-60-761 ROHM ELECTRONICS PHILIPPINES INC 5,621.00 P-60-762 TDK PHILIPPINES CORPORATION P-60-767 FURUKAWA ELECT AUTOPARTS PHILS INC 161,204.67 P-60-768 23,000.00 749,358.56 326,200.00 169,492.18 1,004,684.77 512,604.02 128,375.67 4,725.QQ_

DECISION CTA CASE NO. 11111 P-60-769 FURUKAWA ELECT AUTOPARTS PHILS INC 156,219.80 P-60-770 MOLEX INTEG PRODUCTS PHIL INC 302,078.12 PHILIPPINE MANUFACTURING CO OF P-60-777 MURATA INC 657,671.34 P-60-780 DENSO PHILIPPINES CORPORATION 723,711.41 P-60-781 NISSHO PRECISION PHILS INC 41,657.26 CONTINENTAL TEMIC ELECTRONIC PHILS P-60-782 INC 177,262.39 P-60-785 EATON INDUSTRIES PHILIPPINES 478,068.48 P-60-787 TERUMO PHILIPPINES CORP 1,173,702.44 1 P-60-788 OGINO PHILIPPINES CORP PANASONIC INDL DEVICES SALES M SDN 40,789.65 P-60-791 BHD P-60-792 TSUKIDEN ELECTRONICS PHILS INC 74,140.00 87,783.82 P-60-799 EPSON PRECISION PHILIPPINES PHILS INC 30,204,263.81 P-60-803 PANASONIC INDL DEVICES SALES PHILS P-60-805 CORP 50,312.40 P-60-806 FUNAI ELECTRIC PHILIPPINES INC 330,363.05 P-60-807 FUNAI ELECTRIC PHILIPPINES INC 609,492.50 P-60-808 FUNAI ELECTRIC PHILIPPINES INC 130,600.00 P-60-815 FUNAI ELECTRIC PHILIPPINES INC 810,525.31 P-60-819 MIRAI PHILIPPINES CORP 183,602.19 P-60-822 TY COMPOSITE INTERNATIONAL CORP 374,409.98 P-60-823 SUMI PHILIPPINES WIRING SYSTEMS CORP P-60-828 SAN TECHNOLOGY INC 93,225.00 P-60-829 NAGASE PHILS INTL SERVICES CORP 259,404.62 P-60-830 JAE PHILIPPINES INC 111,670.00 P-60-831 FUJI ELECTRIC PHILIPPINES INC 788,896.65 P-60-832 YAZAKITORRESMFGINC 177,156.18 P-60-834 CITIZEN FINEDEVICE PHILS CORP P-60-835 ARKRAY INDUSTRY WEST INC 64,405.05 P-60-836 MARUBUNARROW PHILS INC 46,147.19 P-60-838 FUJI ELECTRIC PHILIPPINES INC 447,031.88 P-60-839 MURATA ELECTRONICS PHILS INC 33,143.16 P-60-841 NAK.ASHIMA PHILIPPINES CORP HARADA AUTOMOTIVE ANTENNA PHIL 4,500.00 P-60-842 FURUKAWA AUTOMOTIVE SYSTEM LIIVIA 137,657.76 P-60-843 PHILS INC 386,229.95 P-60-844 STMICROELECTRONICS INC P-60-847 STMICROELECTRONICS INC 77,276.73 P-60-848 TERUMO PHILIPPINES CORP P-60-850 EPSON PRECISION PHILIPPINES PHILS INC 1,431,752.74 P-60-852 MITSUBA PHILIPPINES CORP 252,769.09 P-60-853 ISUZU AUTO PARTS MFG CORP 519.89 P-60-854 NIDEC PHILIPPINES CORPORATION 187,682.45 P-60-855 DENSO TEN PHILIPPINES CORP P-60-856 DENSO TEN PHILIPPINES CORP 2,013,483.19 P-60-857 NIDEC SANKYO PHILIPPINES CORP 3,950.00 P-60-858 KOLEN PHILIPPINES INC L_ P-60-859 JX NIPPON MINING AND METALS PHILSINC 561,507.46 BROTHER INDUSTRIES PHILS INC 89,564.72 174,839.58 171,715.00 284,969.57 50,926.41 287,416.53 322,889.77

DECISION CTA CASE NO. 11111 P-60-860 BROTHER INDUSTRIES PHILS INC 1,871,749.83 P-60-861 BROTHER INDUSTRIES PHJLS INC 5,306,867.94 P-60-862 EHS LENS PHILIPPINES INC P-60-864 DYNAPACAND MALINTA 904,454.57 P-60-865 SIIX LOGISTICS PHILS INC 213,605.80 P-60-873 P IMES CORPORATION 103,244.08 I P-60-874 NIPPON EXPRESS AUSTRALIA PTY LIMITED 1,573,082.57 P-60-876 NIPPON EXPRESS MALAYSIA SDN BHD 269,790.21 NIPPON EXPRESS SOUTH ASIA AND OCEANA 252,033.90 I P-60-877 PTE LTD P-60-878 NIPPON EXPRESS THAI CO LTD 1,731,628.64 P-60-879 NIPPON EXPRESS VIETNAM CO 378,854.80 P-60-881 NIPPON EXPRESS KOREA CO LTD 554,295.99 P-60-884 PT NITTSU LEMO INDONESIA 127,176.28 4,060.84 P-60-1167 NIPPON EXPRESS SOUTH ASIA AND OCEANIA P-60-1168 1,251,604.40 P-60-1172 PTE LTD 1 ,234,199.39 P-60-1174 NIPPON EXPRESS VIETNAM CO PT NITTSU LEMO INDONESIA 1,533.49 1 P-60-1175 NIPPON EXPRESS M SDN BHD 529,264.94 NIPPON EXPRESS SOUTH ASIA OCEANIA PTE P-60-1179 1,022,890.90 P-60-1324 LTD 2,110.92 4,831.00 P-60-1326 PT NITTSU LEMO INDONESIA P-60-1327 NIPPON EXPRESS CO LTD 10,500.00 P-60-1328 ROHM SEMICONDUCTOR SINGAPORE PTE 129,423.95 P-60-1329 LTD P-60-1330 NEP LOGISTICS INC 2,739.00 P-60-1331 CEBU MOLD TECHNOLOGY INC 12,894.00 NEP LOGISTICS INC 199,107.73 P-60-1332 DENSO TEN PHILIPPINES CORP P-60-1333 ALIBATA LIMITED 7,400.00 P-60-1334 HONDA TRADING PHILIPPINES ECOZONE P-60-1335 CORP 416,686.40 P-60-1337 MICROTOP PHILIPPINES INC 8,732.18 P-60-1339 NEP LOGISTICS INC 300.00 P-60-1340 FATEC CORPORATION P-60-1341 MINOURA PHILIPPINES CORP 32,504.49 P-60-1342 LAGUNA METTS CORPORATION 101,624.71 P-60-1343 SENSHU ELECTRIC PHILIPPINES 107,863.32 P-60-1344 NIKJ<:.OSHI PHILIPPINES CORP 27,250.00 P-60-1345 MSPECIALTY PRINTING PHILS INC P-60-1351 MSPECIALTY PRINTING PHILS INC 16,336.39 P-60-1352 ONDA GROUP OF COMPANIES INC 5,920.22 YOZURI PHILIPPINES INC 16,494.10 P-60-1354 GLOBAL MOCOM TRANSCENDING INC P-60-1355 TOSHIBA INFO EQUIP PHILS INC 82,178.41 HONDA TRADING PHILIPPINES ECOZONE 250,836.57 CORP TOSHIBA INFO EQUIP PHILS INC 43,472.10 1,004,943.34 Total 892,735.34 3,367,217.54 P233,587 ,069.43

DECISION CTA CASE NO. 11111 Exhibit No. Customer Amount P-61-1 MINOURA PHILIPPINES CORP P-61-2 CEBU MICRO ELECTRONICS INC p 7,074.74 P-61-3 DAITOH PRECISION INC P-61-4 TOYOFLEX CEBU CORPORATION 15,112.32 P-61-5 CEBU SHINSEI CORPORATION P-61-7 DRAKA PHILIPPINES INC 307,874.59 P-61-8 MINOURA PHILIPPINES CORP P-61-9 MINOURA PHILIPPINES CORP 234,632.64 P-61-10 RICOH IMAGING PRODUCTS PHILS P-61-11 MAKOTO METAL TECHNOLOGY INC 26,971.08 P-61-12 NKC MFG PHILS CORP P-61-14 MURAMOTO AUDIOVISUAL PHILS IHC 2,032.00 P-61-17 PHILIPPINE MAKOTO CORPORATION 60,591.69 P-61-18 PHILIPPINE KENKO CORPORATION 71,280.03 P-61-21 RICOH IMAGING PRODUCTS PHILS P-61-22 MSM CEBU INC 222,460.73 P-61-23 l\!IAKOTO METAL TECHNOLOGY INC P-61-24 PHILIPPINE KENKO CORPORATION 55,507.66 P-61-26 INA MICRO OPTO CORPORATION P-61-27 CEBU MICRO ELECTRONICS INC 73,239.75 P-61-29 TAIYO YUDEN PHILIPPINES INC P-61-31 MSM CEBU INC 383,677.25 P-61-33 PHILIPPINE KENKO CORPORATION P-61-34 MU~\MOTO AUDIO VISUAL PHILS INC 38,835.05 P-61-37 PHILINAK INDUSTRIES INC P-61-39 SCAD SERVICES S PTE LTD 104,028.71 P-61-47 DENSO TEN PHILIPPINES CORP P-61-48 NIKKOSHI PHILIPPINES CORP 139,016.55 P-61-53 FUTABA CORP OF THE PHILS P-61-54 YAMAICHI SEIKO PHILIPPINES INC 130,081.19 P-61-56 ALIBATA LIMITED P-61-57 ENOMOTO PHILIPPINE MFTNG INC 117,573.19 P-61-59 CAC PHILIPPINES INC P-61-61 JX NIPPON MINING AND METALS PHILS INC 80,512.74 P-61-63 ELEMATEC PHILIPPINES INC P-61-64 TOYOTA AISIN PHILIPPINES INC 21,265.74 P-61-70 NIPPON EXPRESS CO LTD P-61-72 FUTABA CORP OF THE PHILS 41,499.12 Total 140,890.01 147,326.08 111,776.20 279,867.55 103,565.31 11,622.98 298,607.90 69,557.12 280,313.83 209,032.34 11,873.24 232,582.15 18,477.31 634,814.36 49,067.79 154,337.24 15,818,026.99 99,414.46 p 20,804,419.63 Exhibit No. Customer Amount P-62-1 PRICON MICROELECTRONICS INC P-62-2 SENJU SOLDER PHILS INC p 6,714.45 P-62-5 IT1-\.BASHI SEliG PHILIPPINES INC P-62-7 SANNO PHILS MANUFACTURING CORP 84,050.72 P-62-8 ENSYU TAKERU RUBBER INDUSTRIES INC P-62-17 KINPO ELECTRONICS PHIL INC 22,678.69 P-62-24 LAGUNA AUTO PARTS MFG CORP P-62-32 TEMIC AUTOMOTIVE PHILS INC 5,577.69 30,409.43 1,400.00 168,649.13 55,370.00

DECISION CTA CASE NO. 11111 P-62-33 EMD TECHNOLOGIES PHILIPPINES INC 575,158.62 P-62-56 NITTO DENKO PHILIPPINES CORP 3,446.00 P-62-60 YUSEN LOGISTICS CENTER INC 11,178.07 P-62-61 NIDEC PRECISION PHILS CORP 1,400.00 P-62-63 HKT PHILIPPINES INC 3,032.50 P-62-86 GREENPHILS INC 10,078.46 P-62-96 YUSEN LOGISTICS CENTER INC 14,079.18 Total p 993,222.94 Exhibit No. Customer Amount ISUZU AUTO PARTS MFG CORP P-63-2 JOYSON SAFETY SYSTEMS PHILS CORP p 83,635.60 P-63-4 BROTHER INDUSTRIES PHILS INC P-63-6 BROTHER INDUSTRIES PHILS INC 67,820.27 P-63-7 MIYASAKA POLYMER PHILS INC P-63-8 Total 1,840,715.74 204,485.03 11,277.99 p 2,207,934.63 Exhibit No. Customer Amount P-64-5 FIRST SUMIDEN CIRCUITS INC p 37,298.73 P-64-6 CANON BUSINESS MACHINES PHILS INC P-64-8 JMSHEALTHCAREPHLINC 7,239,661.63 CONTINENTAL TEMIC ELECTRONIC PHILS 187,000.00 P-64-10 INC P-64-11 P IMES CORPORATION 183,953.88 P-64-14 DENSO PHILIPPINES CORPORATION 149,941.40 . P-64-15 FIRST SUMIDEN CIRCUITS INC 2,112,494.50 P-64-16 FUTABA CORP OF THE PHILS 67,829.05 FURUKAWA AUTOMOTIVE SYSTEM LIMA 757,381.95 P-64-17 PHILIPPINES INC 1,430,078.81 P-64-19 FUJIFILM OPTICS PHILS INC P-64-21 NIPPON EXPRESS CO LTD 282,657.85 P-64-23 SCAD SERVICES S PTE LTD 11,613,441.18 P-64-26 KEYENCE PHILIPPINES INC P-64-27 CAC PHILIPPINES INC 27,918.80 PHILIPPINE MANUFACTURING CO OF 38,516.58 P-64-29 MURATA INC 648,044.90 P-64-30 TEMIC AUTOMOTIVE PHILS INC P-64-31 NITTO DENKO PHILIPPINES CORP 960,589.28 P-64-32 TEMIC AUTOMOTIVE PHILS INC 34,480.00 P-64-33 FIRST SUMIDEN CIRCUITS INC 126,532.09 P-64-34 DENSO PHILIPPINES CORPORATION 50,335.00 P-64-35 MOLEX INTEG PRODUCTS PHIL INC 108,440.79 P-64-36 OGINO PHILIPPINES CORP P-64-37 TDK PHILIPPINES CORPORATION 3,145,308.77 P-64-38 DAIKYO INTERNATIONAL PHILS INC 1,157,881.07 P-64-39 P IMES CORPORATION P-64-41 NIPPON EXPRESS M SDN BHD 109,500.00 P-64-44 ON SEMICONDUCTOR PHILS INC 452,377.57 P-64-45 JOYSON SAFETY SYSTEMS PHILS CORP P-64-46 DENSO TEN PHILIPPINES CORP 5,049.69 73,911.74 382,927.48 238,798.44 233,384.32 402,881.77

DECISION CTA CASE NO. 11111 P-64-48 STT PHILIPPINES INC 92,607.00 P-64-49 KEYENCE PHILIPPINES INC 82,989.39 P-64-50 ELEMATEC PHILIPPINES INC 163,890.00 P-64-51 PRICON MICRO ELECTRONICS INC 17,433.90 P-64-52 NITTO DENKO PHILIPPINES CORP 225,923.49 P-64-53 DENSO PHILIPPINES CORPORATION 2,755,861.89 P-64-54 FIRST SUMIDEN CIRCUITS INC 198,552.83 P-64-56 TOSHIBA INFO EQUIP PHILS INC 1,704,748.80 P-64-57 MANILA AMC MACHINERY CORP 207,575.00 P-64-58 MINEBEA PHILIPPINES INC 298,756.66 P-64-59 P IMES CORPORATION 91,838.26 P-64-60 NIPPON EXPRESS DEUTSCHLAND 1,599,768.84 P-64-65 NIPPON EXPRESS UK LTD 87,665.71 P-64-66 NIPPON EXPRESS AUSTRALIA PTY LTD 111,970.97 P-64-67 NIPPON EXPRESS SIN PTE LTD 417,996.23 P-64-68 NIPPON EXPRESS USA INC 3,835,535.71 P-64-74 TOSHIBA INFO EQUIP PHILS INC 354,746.35 P-64-75 TOSHIBA INFO EQUIP PHILS INC 79,267.02 Total ----- P44,585,745.32 --~ Amount Exhibit No. Customer p 394,399.13 P-70-1 ON SEMICONDUCTOR PHILS INC P-70-3 71,566.41 DENSO TEN PHILIPPINES CORP P-70-4 BRIDGESTONE PRECISION MOLDING PHILS 37,309.41 P-70-5 INC 369,617.44 P-70-9 SENJU SOLDER PHILS INC P-70-10 PHILIPPINE IINO CO 50,400.00 P-70-11 DENSO TEN PHILIPPINES CORP 839,284.30 P-70-12 DENSO TEN PHILIPPINES CORP 264,424.78 P-70-13 OGINO PHILIPPINES CORP 292,300.00 P-70-14 MOLEX INTEG PRODUCTS PHIL INC 116,057.16 P-70-15 JOYSON SAFETY SYSTEMS PHILS CORP 192,972.45 P-70-16 FUJIFILM OPTICS PHILS INC 538,316.03 NIPPON EXPRESS CO LTD 15,981,379.55 Total P19,148,026.66 Exhibit No. Customer Amount P-72-3 TDK PHILIPPINES CORPORATION p 475,754.09 P-72-4 NIPPON EXPRESS CO LTD P-72-5 NIPPON EXPRESS DEUTSCHLAND GMBH 1,589,638.19 P-72-10 NIPPON EXPRESS UK LTD 1,310,619.01 P-72-11 NIPPON EXPRESS DE ESPANA P-72-12 NV NIPPON EXPRESS 75,130.78 P-72-14 NIPPON EXPRESS HK COMPANY LIMITED 65,059.16 P-72-15 NIPPON EXPRESS SIN PTE LTD 1,096,170.48 P-72-16 NIPPON EXPRESS TAIWAN CORP 1,597,011.82 P-72-17 NIPPON EXPRESS USA INC 1,639 '772.32 P-72-23 NIPPON EXPRESS CO LTD 1,445,733.55 P-72-25 NIPPON EXPRESS DEUTSCHLAND 3,131,140.56 P-72-28 NIPPON EXPRESS UK LTD 1,244,874.27 1,978,923. 70 41,104.79

DECISION CTA CASE NO. 11111 P-72-29 NIPPON EXPRESS DE ESPANA SA 37,960.03 P-72-32 NIPPON EXPRESS HK CO LTD 1,915,495.68 P-72-33 NIPPON EXPRESS TAIWAN CO LTD 1,399,469.52 P-72-34 NIPPON EXPRESS THAI CO LTD P-72-35 NIPPON EXPRESS KOREA CO LTD 583,802.36 P-72-36 NIPPON EXPRESS USA INC 182,211.48 P-72-37 NIPPON EXPRESS CO LTD 5,608,727.42 P-72-40 YAZAKITORRESMFGINC 19,293,512.53 P-72-43 NIPPON EXPRESS DE ESPANA SA 85,607.32 P-72-45 NIPPON EXPRESS HK CO LTD 96,116.25 P-72-46 NIPPON EXPRESS TAIWAN CO LTD 2,054,186.31 P-72-47 NIPPON EXPRESS THAI CO LTD 1,483,904.60 P-72-48 NIPPON EXPRESS VIETNAM CO 1,022,822.05 P-72-49 NIPPON EXPRESS KOREA CO LTD 900,415.93 163,043.75 P-72-50 NIPPON EXPRESS CO LTD 16,213,148.68 P-72-51 NIPPON EXPRESS SIN PTE LTD P-72-52 JAE PHILIPPINES INC 1,807,540.52 850,509.99 Total Grand Total p 69,389,407.14 P390,715,825.75 In sum, petitioner's valid zero-rated sales amount to P79,930,865.11, computed as follows: Total zero-rated sales per Quarterly VAT Return p 797,143,319.03 7,142,149.78 Less: Disallowances per ICPA 790,001,169.25 Valid zero-rated sales per ICPA findings p 90,429,669.59 Less: Additional disallowances per Court findings: 228,924,808.80 Sales to entities without certifications from 390,715,825.75 p 79,930,865.11 government agencies and/or Certificate of Foreign Incorporation Sales to NRFCs not denominated in foreign currency Sales supported by ORs with no nature of services indicated Valid and properly substantiated zero-rated sales The input taxes being claimed are not transitional input taxes. Petitioner declared a total ofP107,455,934.24 allowable input taxes for the 4rh quarter of taxable year 2020, detailed as follows: 80 Input tax deferred on capital goods exceeding P1Million from r 5,994,094.39 80 Exhibit "P-17-1 ",Docket- Vol. I, pp. 152 to 153.

DECISION CTA CASE NO. 11111 Current transactions: 1,560,665.10 Purchase of Capital Goods exceeding P1Million 3,027,833.97 Domestic Purchases of goods other than capital goods 103,490,112.20 Domestic Purchases of services p 114,072,705.66 Total Available input tax Less: Input tax on capital goods exceeding P1Million deferred for 6,616,771.42 P107 ,455,934.24 the succeeding period Total Allowable input tax The above input taxes do not appear to be transitional input taxes, as understood 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 the rules and regulations prescribed by the Secretary of Finance, upon recommendation of the Commissioner, be allowed input tax on his beginning inventory of goods, materials and supplies equivalent to 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.81 Since there is no showing that the above-stated input VAT are transitional input VAT, petitioner has complied with the sixth requisite for the grant of an input VAT refund. The input taxes are due or paid. Anent the seventh requisite, it is extremely important that the input taxes claimed for refund are properly supported to prove that the same are actually 81 Fort Bonifacio Development Corporation vs. Commissioner of Internal Revenue, eta/., et seq., G.R. Nos. 158885 and 170680, April 2, 2009.

DECISION CTA CASE NO. 11111 due or paid in accordance with Section 11 O(A) of the NIRC of 1997, as amended by RA No. 10963, which provides that: "SEC. 110. Tax Credits.- (A) Creditable Inpttt Tax. - (1) Any input tax evidenced by a VAT invoice or official receipt issued in accordance with Section 113 hereof on the following transactions shall be creditable against the output tax: (a) Purchase or importation of goods: 1. For sale; or 11. For conversion into or intended to form part of a finished product for sale including packaging materials; or 111. For use as supplies in the course of business; or 1v. For use as materials supplied in the sale of service; or v. For use in trade or business for which deduction for depreciation or amortization is allowed under this Code. (b) Purchase of services on which a value-added tax has actually been paid. (2) The input tax on domestic purchase or importation of goods or properties by a VAT-registered person shall be creditable: (a) To the purchaser upon consummation of sale and on importation of goods or properties; and (b) To the importer upon payment of the value-added tax prior to the release of the goods from the custody of the Bureau of Customs. Provided, That the input tax on goods purchased or imported in a calendar month for use in trade or business for which deduction for depreciation is allowed under this Code, shall be spread evenly over the month of acquisition and the fifty-nine (59) succeeding months if the aggregate acquisition cost for such goods,

DECISION CTA CASE NO. 11111 excluding the VAT component thereof, exceeds One million pesos (Pl,OOO,OOO): Provided, however, That if the estimated useful life of the capital good is less than five (5) years, as used for depreciation purposes, then the input VAT shall be spread over such a shorter period: Provided, further, That the amortization of the input VAT shall only be allowed until December 31, 2021 after which taxpayers with unutilized input VAT on capital goods purchased or imported shall be allowed to apply the same as scheduled until fully utilized. Provided,jinal!J, That in the case of purchase of services, lease or use of properties, the input tax shall be creditable to the purchaser, lessee or licensee upon payment of the compensation, rental, royalty or fee." The above provisions are implemented by Sections 4.110-1 to 4.110-3 of RR No. 16-2005, as amended by RR No. 13-2018, which provides as follows: "SECTION 4.110-1. Credits For Input Tax. - 'Input tax! means the VAT due on or paid by a VAT-registered person on importation of goods or local purchases of goods, properties, or services, including lease or use of properties, in the course of his trade or business. It shall also include the transitional input tax and the presumptive input tax determined in accordance with Sec. 111 of the Tax Code. It includes input taxes which can be directly attributed to transactions subject to the VAT plus a ratable portion of any input tax which cannot be directly attributed to either the taxable or exempt activity. Any input tax on the following transactions evidenced by a VAT invoice or official receipt issued by a VAT-registered person in accordance with Sees. 113 and 237 of the Tax Code shall be creditable against the output tax: (a) Purchase or importation of goods (1) For sale; or (2) For conversion into or intended to form part of a finished product for sale, including packaging materials; or (3) For use as supplies in the course of business; or

DECISION CTA CASE NO. 11111 (4) For use as raw materials supplied in the sale of serv1ces; or (5) For use in trade or business for which deduction for depreciation or amortization is allowed under the Tax Code, (b) Purchase of real properties for which a VAT has actually been paid; (c) Purchase of services in which a VAT has actually been paid; (d) Transactions 'deemed sale' under Sec. 106 (B) of the Tax Code; (e) Transitional input tax allowed under Sec. 4.111-1 (a) of these Regulations; (f) Presumptive input tax allowed under Sec. 4.111-1 (b) of these Regulations; (g) Transitional input tax credits allowed under the transitory and other provisions of these Regulations. SECTION 4.110-2. Persons Who Can Avail of the Input Tax Credit. - The input tax credit on importation of goods or local purchases of goods, properties or services by a VAT-registered person shall be creditable: (a) To the importer upon payment of VAT prior to the release of goods from customs custody; (b) To the purchaser of the domestic goods or properties upon consummation of the sale; or (c) To the purchaser of services or the lessee or licensee upon payment of the compensation, rental, royalty or fee. SECTION 4.110-3. Claim for Input Tax on Depreciable Goods. - Where a VAT-registered person purchases or imports capital goods, which are depreciable assets for income tax purposes, the aggregate acquisition cost of which (exclusive of VAT) in a calendar month exceeds One Million pesos (P1,000,000.00), regardless of

DECISION CTA CASE NO. 11111 the acquisition cost of each capital good, shall be claimed as credit against output tax in the following manner: (a) If the estimated useful life of a capital good is five (5) years or more - The input tax shall be spread evenly over a period of sixty (60) months and the claim for input tax credit will commence in the calendar month when the capital good is acquired. The total input taxes on purchases or importations of this type of capital goods shall be divided by 60 and the quotient will be the amount to be claimed monthly. (b) If the estimated useful life of a capital good is less than five (5) years - The input tax shall be spread evenly on a monthly basis by dividing the input tax by the actual number of months comprising the estimated useful life of the capital good. The claim for input tax credit shall commence in the calendar month that the capital goods were acquired. \'Vhere the aggregate acquisition cost (exclusive of VA1) of the existing or finished depreciable capital goods purchased or imported during any calendar month does not exceed One million pesos (P 1,000,000.00), the total input taxes will be allowable as credit against output tax in the month of acquisition. Capital goods or properties refers to goods or properties with estimated useful life greater than one (1) year and which are treated as depreciable assets under Sec. 34(F) of the Tax Code, used directly or indirectly in the production or sale of taxable goods or services. The aggregate acquisition cost of depreciable assets in any calendar month refers to the total price, excluding the VAT, agreed upon for one or more assets acquired and not on the payments actually made during the calendar month. Thus, an asset acquired on installment for an acquisition cost of more than P1 ,000,000.00, excluding the VAT, will be subject to the amortization of input tax despite the fact that the monthly payments/installments may not exceed P1,000,000.00. XXX XXX XXX (c) The amortization of the input VAT shall only be allowed until December 31, 2021 after which taxpayers with unutilized input VAT on capital goods purchased or imported shall be allowed

DECISION CTA CASE NO. 11111 to apply the same as scheduled until fully utilized: Provided, That in the case of purchase of services, lease or use of properties, the input tax shall be creditable to the purchaser, lessee or licensee upon payment of the compensation, rental, royalty or fee." Meanwhile, Section 4.110-8 of RR No. 16-2005 provides for the substantiation requirements of input tax credits, as follows: "SECTION 4.110-8. Substantiation ofInput Tax Credits. - (a) Input taxes for the importation of goods or the domestic purchase of goods, properties or services is made in the course of trade or business, whether such input taxes shall be credited against zero-rated sale, non-zero-rated sales, or subjected to the 5% Final Withholding VAT, must be substantiated and supported by the following documents, and must be reported in the information returns required to be submitted to the Bureau: (1) For the importation of goods - import entry or other equivalent document showing actual payment of VAT on the imported goods. (2) For the domestic purchase of goods and properties - invoice showing the information required under Sees. 113 and 237 of the Tax Code. (3) For the purchase of real property -public instrument i.e., deed of absolute sale, deed of conditional sale, contract/agreement to sell, etc., together with VAT invoice issued by the seller. (4) For the purchase of services- official receipt showing the information required under Sees. 113 and 237 of the Tax Code. A cash register machine tape issued to a registered buyer shall constitute valid proof of substantiation of tax credit only if it shows the information required under Sees. 113 and 237 of the Tax Code. (b) Transitional input tax shall be supported by an inventory of goods as shown in a detailed list to be submitted to the BIR.

DECISION CTA CASE NO. 11111 (c) Input tax on 'deemed sale' transactions shall be substantiated with the invoice required under Sec. 4.113-2 of these Regulations. (d) Input tax from payments made to non-residents (such as for services, rentals and royalties) shall be supported by a copy of the Monthly Remittance Return of Value Added Tax Withheld (BIR Form 1600) filed by the resident payor in behalf of the non- resident evidencing remittance of VAT due which was withheld by the payor. (e) Advance VAT on sugar shall be supported by the Payment Order showing payment of the advance VAT." Thus, petitioner must not only present the supporting documents prescribed under Section 4.110-8 of RR No. 16-2005, but more importantly, these documents must comply with the invoicing requirements of Sections 113(A) and (B), 237 and 238 of the NIRC of 1997, as implemented by Section 4.113-1(A) and (B) ofRR No. 16-2005. Accordingly, petitioner submitted VAT invoices and ORs to support its input taxes from domestic purchases of goods and services for the 4rh quarter of taxable year 2020, which were examined and verified by the ICPA. The latter found that input taxes from domestic purchases of goods and services in the amount of P5,317,631.57 should be disallowed for failure to comply with the substantiation and invoicing requirements set forth in the Tax Code, as amended, and corresponding regulations, to wit:82 Exhibit Description Valid Invalid Total No. "P-73" Domestic purchase of goods and p 39,047,979.10 p - I serv!Ces properly substantiated "P-7 4" by VAT Invoices/VAT Ors 43,574,449.28 - p 39,047,979.10 which complied with the "P-75" invoicing requirements. - 43,574,449.28 Domestic purchases of goods and services supported by altered 2,337.91 VAT Invoices/VAT Ors, countersigned by the same person who signed the VAT Invoices/0 Rs Domestic purchase of goods and 2,337.91 servKes properly substantiated by VAT Invoices/ VAT ORs 82 Exhibit "P-133", Docket- Vol. I, at pp. 403 to 404.

DECISION CTA CASE NO. 11111 with less than one thousand total receipts Domestic purchase of goods and set-vices properly substantiated by altered VAT Invoices/ VAT ORs countersigned by the "P-7 6" suppliers' authorized 16,279,028.38 16,279,028.38 "P-87'' 1,290,593.68 1,493,500.68 "P-128" representative, as evidenced by 236,196.89 236,196.89 "P-129" 8,808.76 8,808.76 "P-130" the certification of authorized 181,735.67 181,735.67 "P-131" 198,395.64 198,395.64 "P-132" representative of the suppliers 380,789.05 380,789.05 "P-90" 77,963.86 (Exhibit P-57) Domestic purchase of goods and set-vices wherein the amount of 202,907.00 77,963.86 VAT clairned is not equal to the amount ofVAT per documents Domestic purchases of goods and services supported by valid invoices and ORs which complied with the inv01cmg requirements with MINOR alterations on NAME Domestic purchases of goods and services supported by valid invoices and ORs which complied with the inv01cmg requirements with MINOR alterations on TIN Domestic purchases of goods and set-vices supported by valid invoices and ORs which complied with the inv01cmg requirements with MINOR alterations on ADDRESS Domestic purchases of goods and set-vices supported by valid invoices and ORs which complied with the inv01cmg requirements with MINOR alterations on BUSINESS STYLE Domestic purchases of goods and set-vices supported by valid invoices and ORs which complied with the inv01cmg requirements with MINOR alterations on AMOUNT Domestic purchase of goods and set-vices substantiated by altered VAT Invoices/VAT ORs but without countersign.

DECISION CTA CASE NO. 11111 "P-77" Domestic purchase of goods and - 169,550.87 169,550.87 "P-78" services substantiated by VAT "P-79" Invoices/VAT ORs not within - 74,116.24 74,116.241 "P-80" the taxable quarter/year subject "P-81" for audit. - 2,704,608.62 ! "P-83" Domestic purchase of goods and "P-84" serv1ces substantiated by 2,704,608.62 "P-85" unreadable VAT Invoices/VAT "P-86" ORs - 414,461.58 414,461.58 "P-88" Unsupported domestic purchase of goods and services - 370,257.46 370,257.46 "P-89" Domestic purchase of goods and "P-91" services substantiated by VAT - 184,647.95 184,647.95 Invoices/VAT ORs with Invalid or Outdated authority to print - 4,430.67 4,430.67 (ATP) or no BIR Permit. Domestic purchase of goods and - 3,169.40 3,169.40 services substantiated by VAT 596.04 Invoices/VAT ORs but the VAT - 596.04 is not separately indicated in the 4,500.00 face of the Invoice or ORs. - 4,500.00 Domestic purchase of goods and services substantiated by VAT - 46,043.24 46,043.24 Invoices/ VAT ORs but without TIN of the Petitioner. - 453,382.42 453,382.42 Domestic purchase of goods and services substantiated by VAT Invoices/ VAT ORs but without address of the Petitioner Domestic purchase of goods and services substantiated by VAT Invoices/ V1\T ORs but without/incorrect name of the Petitioner Domestic purchase of goods and services substantiated by VAT Invoices/ VAT ORs but unsupported by official receipt Domestic purchase of goods and services substantiated by VAT Invoices/VAT ORs but no OR date Domestic purchase of goods and services substantiated by altered VAT Invoices/VAT ORs countersigned by someone not in the list provided based on the Certification of authorized representative of the suppliers. Domestic purchase of goods and services substantiated by VAT

DECISION CTA CASE NO. 11111 Invoices/VAT ORs with Incorrect TIN of the Petitioner. Domestic purchase of goods and "P-92" sel"Vices substantiated by VAT - 101,025.91 101,025.91 Invoices/VAT ORs but with no 9,266.31 9,266.31 business style of the petitioner 496,704.00 496,704.00 P5,317,631.57 P106,517,945.93 Domestic purchase of goods and "P-93" sel"Vices substantiated by VAT - Invoices/VAT ORs but with incorrect business style Domestic purchase of goods and sel"Vices substantiated by VAT "P-94" Invoices/VAT ORs but with - incorrect TIN of supplier per schedule TOTAL _P101,200,314.36 -- -~ -- --- -- - For petitioner's input taxes from purchases of capital goods exceeding P1 million, the ICPA reported that out of the �937,988.0783 allowable input taxes, only P374,168.08 is valid, thus: 84 Exhibit Description Valid Invalid Total I No. Purchase of Capital Goods >1M p 368,919.27 p - p 368,919.27 "P-9 5" properly substantiated by VAT Invoices which complied with the lllVOlClllg 5,248.81 I "P-96" requirements. I Purchase of Capital Goods >1M - "P-107'' properly substantiated by VAT Invoices - - 5,248.81 "P-1 06" which complied with the lllVOlClllg - "P-1 01" requirements. - 28,651.54 28,651.54 "P-1 OS" Purchase of Capital Goods >1M wherein the amount of VAT claimed is 2,276.79 2,276.79 not equal to the amount of VAT per 3,360.04 3,360.04 documents. Purchase of Capital Goods >1M 3,318.25 3,318.25 substantiated by OR/Invoice without business style Purchase of Capital Goods >1M substantiated by OR/Invoice with invalid ATP Domestic Purchase of Capital Goods >1M wherein VAT is not separately indicated in the face of the Invoice or ORs. 83 Exhibit "P-133", Docket- Vol. I, at p. 403. 84 Exhibit "P-133", Docket- Vol. I, at pp. 405 to 406.

DECISION CTA CASE NO. 11111 "P-1 00" Missing/unsupported purchase of - 395,834.63 395,834.63 "P-1 04" 32,484.09 32,484.09 Capital Goods >1M - "P-98" 34,488.09 34,488.09 Purchase of Capital Goods >1M with - "P-99" 14,006.79 14,006.79 "P-1 08" incorrect TIN of the Petitioner. - "P-97" 10,823.04 10,823.04 "P-1 09" Purchase of Capital Goods >1M - 36,274.51 36,274.51 - substantiated by altered VAT 2,298.22 2,298.22 - 3.99 3.99 OR/Invoice countersigned but the - p 563,819.98 p 937,988.06 person was not ascertained to be an p 374,168.08 authorized representative of the supplier Purchase of Capital Goods >1M substantiated by altered VAT OR/Invoice countersigned but without signature of authorized representative Purchase of Capital Goods >1M not qualified as capital goods Unreadable purchase of Capital Goods >1M Incorrect TIN of supplier RoundinJ!, off difference TOTAL ----- The Court finds that input taxes found invalid by the ICPA should be disallowed for the reasons stated. Further, based on ICPA's findings, the total valid and substantiated input taxes for the 4rh quarter of 2020 amount to P101,574,482.44, computed as follows: Current Transactions: p 3,027,833.97 p 101,200,314.36 103,490,112.20 Input taxes from domestic purchases of goods 374,168.08 p 106,517,946.17 P101,574,482.44 Input taxes from domestic purchases of services 5,317,631.57 Total input taxes from current transactions 0.24 Less: Disallowances by the ICPA p 1,560,665.10 Difference between VAT Returns and total amount verified 5,994,094.39 by the ICPA (P106,517,946.17less P106,517,945.93) (6,616,771.42) Input taxes from domestic purchase of capital goods exceeding P1 p 937,988.07 million: Deferred input taxes on capital goods exceeding P1 million from 563,819.98 previous quarter Input taxes on capital goods exceeding P1 million deferred to 0.01 succeeding quarter Total input taxes from domestic purchase of capital goods exceeding P1 million Less: Disallowances by the ICPA Difference between VAT Returns and total amount verified by the ICPA (P937,988.07less P937,988.06) Valid and properly substantiated input taxes

DECISION CTA CASE NO. 11111 The input taxes claimed are attributable to zero-rated or effectively zero-rated sales. For the eighth requisite, since petitioner had both taxable and zero-rated sales for the 4th quarter of taxable year 2020 and the input taxes cannot be directly and entirely attributable to any of these sales, the substantiated input taxes shall be proportionately allocated on the basis of sales volume, thus: Total zero-rated sales Amount Percentage Valid Input Tax Total VATable sales p 797,143,319.03 50.26% 1 Total Sales Allocation 788,822,879.41 49.74% p 51,051,334.87 I 50,523,147.57 P1,585,966,198.44 100.00% P101,574,482.44 I However, only a portion of petitioner's zero-rated sales is found to be valid and properly substantiated. Thus, the valid input taxes are further allocated accordingly: Valid zero-rated sales Amount Percentage Valid Input Tax Invalid zero-rated sales 10.03% Allocation Total zero-rated sales p 79,930,865.11 89.97% p 5,120,448.89 ------- 717,212,453.92 100.00% 45,930,885.98 p _797 ,143,319.03 p 51,051,334.87 ~- Based on the foregoing, petitioner's total substantiated input taxes attributable to petitioner's valid zero-rated sales is P5,120,448.89. With this determination of petitioner's input taxes attributable to its zero-rated sales, the eighth requisite is complied with. There was no "excess" unutilized input tax that may be claimed for refund. With regard to the ninth requisite, petitioner reported output taxes from its taxable sales for the 4th quarter of taxable year 2020 in the amount of P94,658,745.53. 85 85 Line 15B, Exhibit "P-17-1", Docket- Vol. I, p. 152.

DECISION CTA CASE NO. 11111 It is worthy to note that in the case of Chevron Holdings, Inc. (Former!J Caltex Asia Limited) vs. Commissioner of Internal Revenue,86 the Supreme Court En Bane ruled: "Thus, the input tax attributable to zero-rated sales may, at the option of the VAT-registered taxpayer, be: (1) charged against output tax from regular 12% VAT-able sales, and any unutilized or 'excess' input tax may be claimed for refund of the issuance of tax credit certificate; or (2) claimed for refund or tax credit in its entirety. It must be stressed that the remedies of charging the input tax against the output tax and applying for a refund or tax credit are alternative and cumulative. Furthermore, the option is vested with the taxpayer-claimant. xxx" (Emphases and ttnderscoring added) Petitioner computed its claim for refund in the aggregate amount of P12,797,188.46 by offsetting its output tax from taxable sales with its available input taxes for the 4rh quarter of taxable year 2020, as shown hereafter:87 Total Allowable input tax p 107,455,933.99 Less: Output tax U nutilized Input Tax per VAT return 94,658,745.53- p 12,797,188.46 It should be noted that the foregoing computation is based on its amended VAT Return for the subject taxable quarter.88 Clearly, petitioner opted to claim for refund its unutilized or "excess" input tax, which is the amount after charging the input tax allocated to zero-rated sales against its output tax. Following the same computation, it turns out that petitioner has no unutilized or excess valid and substantiated input taxes left to claim for refund as the output tax due exceeds the valid input taxes: Valid input tax allocated to VATable sales p 50,523,147.57 Less: Output tax due 94,658,7 45.53 Output tax still due Valid input taxes allocated to valid zero-rated sales p (44,135,597.96) Excess/unutilized input taxes (Output tax still due) 5,120,448.89 p (39,015,149.08) 86 G.R. No. 215159, July 5, 2022. 87 Par. 3.6, petitioner's Memorandum Docket- Vol. II, p. 554. 88 Exhibit "P-17-1", Docket- Vol. I, pp. 152 to 153.

DECISION CTA CASE NO. 11111 Considering the foregoing, petitioner's claim for refund in the amount of P12,797,188.46, allegedly representing unutilized input VAT for the period October 1, 2020 to December 31,2020, must fail. Such being the case, the Court will not endeavor to proceed in determining whether or not the ninth requisite has been complied with. ACCORDINGLY, in light of the foregoing considerations, the present Petition for Review is DENIED for lack of merit. SO ORDERED. ~. ~)--- MA. BELEN M. RINGPIS-LIBAN Presiding Justice WE CONCUR: MARIARO On Official Business CORAZON G. FERRER-FLORES AJJociate juJtice ,r

DECISION CTA CASE NO. 11111 CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, and the Division Chairperson's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court. ~~~ - , - - MA. BELEN M. RINGPIS-LIBAN Presiding Justice