cta_decision CTA Case No. 82598259 2015-05-27

AIR LIQUIDE PHILIPPINES, INC. v. COMMISSIONER OF INTERNAL REVENUE consolidated with CTA CASE NO. 8296

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY THIRD DIVISION AIR LIQUIDE PHILIPPINES, CTA Cases No. 8259 & 8296 INC., Members: Petitioner, BAUTISTA, Chairperson FABON-VICTORINO, and -versus- RINGPIS-LIBAN, ]]. COMMISSIONER OF Promulgated: INTERNAL REVENUE, Respondent. }{---------------------------------------------------------------------------------------------------){ DECISION RINGPIS-LIBAN, .L: Before the Court are consolidated Petitions for Review under Section 3(a)(2) of Rule 4 of the 2005 Revised Rules of the Court of Tax Appeals (RRCTA), as amended, and pursuant to Section 112(c) of the National Internal Revenue Code (Tax Code), for the refund/issuance of tax credit certificates for the excess and unutilized input value-added tax (VAT) accrued by the petitioner from its domestic purchases of goods and services attributable to VAT zero-rated sales for the first and second quarters of calendar year 2009 in the aggregate amount of P18,824,845.60, broken down as follows: CTACaseNo. Period Covered Input VAT Claim 8259 1st Quarter - 2009 p 10,303,119.231 8296 2nd Quarter - 2009 8,521 '726.372 p 18,824,845.60 Total Petitioner filed its Petition for Review seeking refund for the first quarter of 2009 on April 1, 2011, docketed as CTA Case No. 8259. Petitioner's Petition fofr 1 Petition for Review, CTA Case No. 8259, Docket, Vol. One, p. 15. 2 Petition for Review, CTA Case No. 8296, p. 15.

DECISION CTA CASE NOS. 8259 & 8296 Review for the second quarter of 2009 was filed on June 21, 2011, docketed as CTA Case No. 8296. These cases were ordered consolidated by this Court upon petitioner's motion on October 27, 2011. THE PARTIES The petitioner is a domestic corporation duly registered with and authorized by the Securities and Exchange Commission (SEC) to engage in the manufacture, production, purchase, wholesale, importation, marketing and dealing in general of all kinds of industrial, medical and specialty liquid gases, other chemicals and their residual components.3 Petitioner's principal place of business is currently at 12/F Ecotower Building, 32nd Avenue cor. 7th Street, Bonifacio Global City, Taguig City. The respondent is the duly-appointed Commissioner of the Bureau of Internal Revenue (BIR), vested with authority to, inter alia, decide refunds of internal revenue taxes, fees or other charges, penalties imposed in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the BIR, and holding office at the BIR National Office Building, Diliman, Quezon City. JURISDICTIONAL FACTS Section 112(A) of the Tax Code states that: "SEC. 112. Refunds or Tax Credits of Input Tax.- (A) Zero-Rated or Effectively Zero-Rated Sales.- Any VAT-registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax: x x x" As explicitly stated under Section 112(A), the application for tax credit certificate/refund of unutilized excess input VAT must be filed within two years after the close of the taxable quarter when the zero-rated or effectively zero-rated sales were made. In the instant case, the claims cover the first and second quarters of 2009 which closed on March 31, 2009 and June 30, 2009, respectively. Counting tw~ 3 Docket, pp. 1718.

DECISION CTA CASE NOS. 8259 & 8296 Page 3 of28 years from the said dates, petitioner had until March 31, 2011 and June 30, 2011, respectively, within which to file its administrative claims for refund/tax credit certificate. Evidently, petitioner's administrative claims for refund/tax credit certificate were seasonably filed within two years from the close of the taxable quarters, as shown below: CTACase Period Close of the Last Day to File Date of :filing of No. Covered Taxable Administrative Administrative 8259 1st Qtr - 2009 Quarter 8296 2nd Qtr - 2009 Claim Claim March 31, 2009 March 31, 2011 Nov. 5, 20104 Jan. 27, 2011 5 June 30, 2009 June 30, 2011 As to the timeliness of petitioner's judicial appeal, Section 112(C) of the Tax Code, as amended, provides as follows: "SEC. 112. Refunds or Tax Credits ofInput Tax.- x x x (C) Period within which Refund or Tax Credit of Input Taxes shall be Made.- In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application flled in accordance with Subsection (A) hereof. In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one hundred twenty day-period, appeal the decision or the unacted claim with the Court of Tax Appeals." The foregoing provision provides that the CIR has 120 days from the date of submission of complete documents in support of the application for refund/tax credit within which to grant or deny the claim. In case of full or partial denial by the CIR or the inability of the CIR to act on the claim within the 120-day period, the taxpayer may appeal with this Court within 30 days from receipt of the adverse decision or the expiration of the 120-day period without any action on the part of the CIR. Thus, applying Section 112(C) of the Tax Code, as amended, the following are the pertinent dates in petitioner's claim for refund/tax credit certificar;; 4 Exhibit "C". 5 Exhibit "TT".

DECISION CTA CASE NOS. 8259 & 8296 Page 4 of28 CTA Taxable Date of Filing End of 120 days End of 30 days Date of Filing Case Quarter of Administrative for the BIR from the of Judicial No. Claim 8259 2009 Claim Commissioner to expiration of the April1, 2011 8296 1st Quarter Nov. 5, 2010 decide on the 120 days 2nd Quarter Jan.27,2011 claim June 21, 2011 March 5, 2011 April4, 2011 May 27,2011 June 26, 2011 Clearly from the above, petitioner's judicial claims for the first and second quarters of 2009 were timely filed within the "120-30" day period required under Section 112(C) of the NIRC of 1997, as amended. The consolidated Petitions for Review are therefore well within the jurisdiction of the Court. FACTUAL ANTECEDENTS In the course of its operations, petitioner generates VATable, VAT-exempt, and VAT zero-rated sales by selling its products and rendering related services to various domestic entities, including corporations registered with the Philippine Economic Zone Authority (PEZA) under Republic Act (RA) No. 79166, as amended, with the Subic Bay Metropolitan Authority (SBMA) under RA 72277, as amended, and with the Board of Investments (BOI) under Executive Order (EO) No. 2268, with whom petitioner deals with pursuant to service agreements.9 For the first and second quarters of 2009, petitioner recorded its VATable, VAT-exempt, and VAT zero-rated sales in the following amounts: CY2009 VATable sales VAT-exempt VAT zero-rated TOTAL SALES sales sales First Quarter p 64,069,544.00 p 210,472,603.30 p 1,068,794.40 p 145,334,264.90 244,166,284.12 Second Quarter 83,724,354.42 1,263,093.64 159,178,836.06 p 454,638,887.42 TOTAL p 147,793,898.42 p 2,331,888.04 p 304,513,100.96 For the same period, petitioner recorded the following amounts of output VAT resulting from its VATable sales, pursuant to the Tax Code and Revenue Regulations (RR) No. 16-2005, as amended: CY2009 Output VAT recorded First Quarter p 7,688,345.28 10,046,922.53 Second Quarter p 17,735,267.81 TOTAL 6 Otherwise known as the "Special Economic Zone Act of 1995". 7 Otherwise known as the "Bases Conversion and Development Act of 1992". 8 Otherwise known as the "Omnibus Investments Code of 1987". 9 Exhibits "QQQ" through "RRRR".

DECISION CTA CASE NOS. 8259 & 8296 As a corporation transacting business in the Philippines, petitioner pays the VAT passed on to it by its suppliers for its domestic purchases of supplies and services, in addition to the VAT it pays for importing materials, thereby incurring input VAT pursuant to the Tax Code and RR No. 16-2005. Thus, for the first and second quarters of 2009, petitioner recorded the following amounts of input VAT: CY2009 Input VAT Input VAT Input VAT TOTAL First Quarter from domestic from domestic from INPUT VAT purchases of purchases of importation of p 14,346,414.91 ~oods services p 8,893,809.49 ~oods p 2,441,526.42 p 3,011,079.00 Second Quarter 1,963,791.28 9,334,403.67 1,773,381.10 13,071,576.05 TOTAL p 4,405,317.70 p 18,228,213.16 p 4,784,460.10 p 27,417,990.96 At the start of the flrst quarter of 2009, petitioner recorded an allowable input VAT in the amount of P184,190,750.03 which was comprised of input VAT carried over from previous quarters and deferred input VAT.10 By the end of the second quarter of 2009 (start of the third quarter of 2009), petitioner recorded an allowable input VAT in the amount of P191,908,928.75 which likewise was comprised of input VAT carried over from previous quarters and deferred input VAT. 11 Considering the availability of input VAT carried over from previous quarters, petitioner also carried-over the input VAT it incurred from the first and second quarters of 2009 to succeeding quarters, deducting them from any available output VAT, pursuant to the principle of "first in, flrst out" enunciated in RR No. 16-2005. By the third quarter of 2009, however, petitioner's carry-over input VAT had already grown considerably, and petitioner decided to claim the unutilized input VAT from the first quarter of 2009 as tax credit or for refund. Thus, petitioner indicated in its Amended Quarterly VAT Return for the third quarter of 2010 that it was claiming P10,303,119.23 for refund/tax credit, thereby taking out the amount from the bulk of input VAT to be carried-over to succeeding quarters. Also, by the fourth quarter of 2010, petitioner decided to claim the y unutilized input VAT from the second quarter of 2009 as tax credit or for refund by indicating in its Quarterly VAT Return for the fourth quarter of 201012 that 10 Exhibit "1". 11 Exhibit "J". 12 Exhibit "S".

DECISION CTA CASE NOS. 8259 & 8296 Page 6 of28 was claiming P8,521,726.37 for refund/tax credit, thereby taking out the amount from the bulk of input VAT to be carried-over to succeeding quarters. Combining both amounts, petitioner claims a total of P18,824,845.60 representing excess and unutilized input VAT from the first and second quarters of 2009 attributable to its VAT zero-rated sales. Pursuant to the Tax Code and prevailing BIR regulations, petitioner filed its administrative applications for issuance of tax credit certificate/refund of excess input tax for the first and second quarters of 2009, with the BIR's Large Taxpayers Audit and Investigation Division II (BIR-LTAID). The application for the first quarter of 2009 was filed with the BIR-LTAID on November 5, 2010, complete with supporting documents.13 The application for the second quarter of 2009 was filed with the BIR-LTAID on January 27, 2011, complete with supporting documents.14 After 120 days without action on respondent's part, petitioner elevated its claims for refund/tax credit to this Court via Petitions for Review. Its Petition for Review for its claim for the first quarter of 2009 was filed on April 1, 2011 and was docketed as CTA Case No. 8259. Its Petition for Review for its claim for the second quarter of 2009 was filed on June 21, 2011, and was docketed as CTA Case No. 8296. Respondent filed her Answer in CTA Case No. 8259 on May 27, 2011, after having sought extension to file the same. Her Answer in CTA Case No. 8296, on the other hand, was filed on July 21, 2011. Both cited the following Special and Affirmative Defenses: 1. A valid claim for refund should consist of the following: a. a written claim for refund filed by the taxpayer with the Commissioner of Internal Revenue which is a mandatory requirement. Without this requirement, the CIR is without any authority to refund15; b. the claim for refund must be a categorical demand for reimbursement; any 13 Exhibit "C". 14 Exhibit "TT". 15 Docket, p. 115.

DECISION CTA CASE NOS. 8259 & 8296 Page 7 of28 c. The claim for refund must be filed within two years from date of payment of the tax or penalty regardless of any supervening cause. In claims for refund, the thirty-day period to appeal should be within the two-year prescriptive period;16 2. It is incumbent upon petitioner to prove that the alleged claim for refund was filed within the prescriptive period provided under the law, rules, and jurisprudence; 3. Petitioner must prove that the input taxes allegedly paid by petitioner on its domestic purchases of non-capital goods and service, services rendered by non-residents and importation of non-capital goods for the first and second quarters of 2009 were attributable to its zero-rated sales and such have not been applied against any output tax and were not carried over in the succeeding taxable quarter or quarters; 4. Petitioner must prove that its domestic purchases of goods and services were made in the course of its trade or business, properly supported by VAT invoices and/or official receipts and other documents, such as subsidiary purchase journal, showing that it actually paid VAT in compliance with Sections 110(A)(2), 113(A) and 237 of the Tax Code, and in pursuance to Section 4.104.5(a) and (b) ofRR No. 7-95; 5. Petitioner must substantiate its claim for refund in accordance with RR No. 53-199817 which provides requirements in claims for refund involving excess or unutilized input VAT; 6. Petitioner's claim for refund is subject to administrative investigation/examination and pending closure of this investigation, no grant of refund may be given to petitioner based on the filed claim; and 7. A claim for refund partakes the nature of exemption from taxation and is thus, construed against the taxpayer and in favor of the State. Upon petitioner's motion, CTA Case No. 8296 was ordered consolidated with CTA Case No. 8259 in a Resolution issued on October 27, 2011r/' 16 ld. 17 Checklist of Documents to be Submitted by a Taxpayer upon Audit of his Tax Liabilities as well as of the Mandatory Reporting Requirements to be Prepared by a Revenue Officer, all of which Comprise a Complete Tax Docket.

DECISION CTA CASE NOS. 8259 & 8296 Page 8 of28 The Pre-trial Conference was held on July 12, 2012 wherein both petitioner and respondent agreed to file a joint stipulation of facts and issues. Both parties filed their Joint Stipulation of Facts and Issues on August 10, 2012. The Pre-Trial Order for these consolidated cases was issued on September 10, 2012, thereby terminating the pre-trial. Trial ensued thereafter. Petitioner presented its witnesses: 1) Leah R. Acasio, its Accounting Manager, who testified on matters in her sworn statement dated October 3, 201218; 2) Daisy C. Egpit, its Sales Administration Assistant Manager, who testified on matters in her sworn statement dated April 24, 2013; and 3) Emmanuel Y. Mendoza, the Independent CPA commissioned by the Court for the consolidated cases who testified on matters in his sworn statement dated May 27, 2013. On June 19, 2013, petitioner filed its Formal Offer of Evidence to which respondent filed her Comment on June 25,2013. After further proceedings and after having filed its Supplemental Formal Offer of Exhibits on November 5, 2013, petitioner formally rested its case on January 3, 2014. Respondent then manifested that she would not be presenting evidence. In a Resolution dated January 3, 2014, the parties were given time to file their respective memoranda. On February 28, 2014, respondent filed her Manifestation that she would be adopting the arguments raised in her Answers ftled on May 27, 2011, and July 21, 2011, in CTA Case No. 8259 and CTA Case No. 8296, respectively, as her Memorandum. Petitioner filed its Memorandum19 on March 11, 2014, together with a Motion to Admit the same for having been filed beyond the extended period allowed by the Court. This was granted in a Resolution dated May 19, 2014. Considering the petitioner's Memorandum and respondent's Manifestation, the case was then submitted for decision. ISSUES20 The parties stipulated that the sole issue to be resolved in this case is(v"" 18 Exhibit SSS. 19 Docket, pp. 1717-1743. 20 Joint Stipulation of Facts and Issue (JSFI), Stipulation of Issue, CTA Case No. 8259, Docket, Vol 2, p. 924.

DECISION CTA CASE NOS. 8259 & 8296 Page 9 of28 Whether petitioner is entitled to the refund or issuance of a tax credit certificate for its unutilized/excess input VAT payments for the 1st and 2nd Quarters of 2009 amounting to P18,824,845.60. APPLICABLE LAWS AND REGULATIONS The laws applicable to the case are the relevant provisions of the NIRC of 1997, as amended in 2005 by R.A. No. 9337, and as implemented by administrative issuances, notably Revenue Regulations 16-2005. DISCUSSION Petitioner's claim finds legal basis in Section 112(A) of the Tax Code, as amended, which provides: "SEC. 112.Refunds or Tax Credits ofInput Tax.- (A) Zero-rated or Effective!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 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, .ftnai!J, 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 nonzero-rated sales. XXX XXX XXX From the foregoing, in order to be entitled to a refund or tax credit of input tax due or paid attributable to zero-rated or effectively zero-rated sales, the following requisites must be complied with: a) the taxpayer is VAT-registered; b) the taxpayer is engaged in zero-rated or effectively zero-rated sales;)

DECISION CTA CASE NOS. 8259 & 8296 Page 10 of28 c) the input taxes are due or paid; d) the input taxes are not transitional input taxes; e) the input taxes have not been applied against output taxes during and in the succeeding quarters; f) the input taxes claimed are attributable to zero-rated or effectively zero-rated sales; g) for zero-rated sales under Sections 106(A)(2)(1) and (2); 106(B); and 108(B)(1) and (2), the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas; h) 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; and i) the claim is filed within two years after the close of the taxable quarter when such sales were made21 � We have already discussed the timeliness of petitioner's administrative claims in the "Jurisdictional Facts" portion of this Decision. We will now determine petitioner's compliance with the remaining requisites for refund of input VAT. It is undisputed that petitioner is registered with the BIR as a VAT entity under Certificate of Registration No. OCN 8RC000001963422� It is also duly registered with the SEC to engage in the manufacture, production, purchase, wholesale, importation, marketing and generally deal in all kinds of industrial, medical and specialty liquid gases, other chemicals and their residual components.23 For the first and second quarters of taxable year 2009, petitioner allegedly sold its products and rendered related services to entities registered with the PEZA, SBMA, and BOI. Petitioner posits that such sales of goods and related services, being considered export sales under RA No. 7916, RA No. 7227 and EO No. 226, are subject to zero percent (0%) VAT under Sections 106(A)(2)(a)(S) and 108(B)(3) of the NIRC of 1997, as amended. For easy reference, Sections 106(A)(2)(a)(S) and 108(B)(3) of the NIRC of 1997, as amended, are quoted herein below: "SEC. 106. Value-Added Tax on Sale ofGoods or Properties.- (A) Rate and Base of Tax. - There shall be levied, assessed and collected on every sale, barter or exchange of goods or properties, a / 21 Luzon Hydro Corporation vs. Commissioner of Internal Revenue, G.R. No. 188260, November 13, 2013. 22 JSFI, Stipulation of Facts, par. 4, CTA Case No. 8259, Docket, Vol. 2, p. 923. 23 JSFI, Stipulation of Facts, par. 3, CTA Case No. 8259, Docket, Vol. 2, p. 923.

DECISION CTA CASE NOS. 8259 & 8296 value added tax equivalent to ten percent (10%) of the gross selling price or gross value in money of the goods or properties sold, bartered or exchanged, such tax to be paid by the seller or transferor: Provided, That the President, upon the recommendation of the Secretary of Finance, shall, effective January 1, 2006, raise the rate of value-added tax to twelve percent (12%), after any of the following conditions has been satisfied: XXX XXX XXX (2) The following sales by VAT -registered persons shall be subject to zero percent (0%) rate: (a) Export Sales. -The term 'export sales' means: XXX XXX XXX (5) Those considered export sales under Executive Order No. 226, otherwise known as the Omnibus Investment Code of 1987, and other special laws; and XXX XXX XXX "SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties.- XXX XXX XXX (B) Transactions Subject to Zero Percent (0%) Rate. -The following services performed in the Philippines by VAT -registered persons shall be subject to zero percent (0�/o) rate: XXX XXX XXX "(3) Services rendered to persons or enttttes whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0�/o) rate; (Emphasis supplied) We agree with petitioner./

DECISION CTA CASE NOS. 8259 & 8296 Sales by a VAT-registered taxpayer from the customs territory to entities located in export processing zones are considered export sales under EO No. 226, otherwise known as the "Omnibus Investments Code of 1987", the relevant portions of which, read as follows: "ARTICLE 23. "Export Sales" shall mean the Philippine port F.O.B. value, determined from invoices, bills of lading, inward letters of credit, landing certificates, and other commercial documents, of exports products exported directly by a registered export producer or the net selling price of export products sold by a registered export producer to another export producer, or to an export trader that subsequently exports the same: Provided, That sales of export products to another producer or to an export trader shall only be deemed export sales when actually exported by the latter, as evidenced by landing certificates or similar commercial documents: Provided, further, That without actual exportation the following shall be considered constructively exported for purposes of this provision: (1) sales to bonded manufacturing warehouses of export- oriented manufacturers; (2) sales to export processing zones x x x" (Emphasis supplied) "ARTICLE 77. Tax Treatment of Merchandise in the Zone. - (1) Except as otherwise provided in this Code, foreign and domestic merchandise, raw materials, supplies, articles, equipment, machineries, spare parts and wares of every description, except those prohibited by law, brought into the zone to be sold, stored, broken up, repacked, assembled, installed, sorted, cleaned, graded, or otherwise processed, manipulated, manufactured, mixed with foreign or domestic merchandise whether directly or indirectly related in such activity, shall not be subject to customs and internal revenue laws and regulations nor to local tax ordinances, the provisions of law to the contrary notwithstanding. "(2) Merchandise purchased by a registered zone enterprise from the customs territory and subsequently brought into the zone, shall be considered as export sales and the exporter thereof shall be entitled to the benefits allowed by law for such transaction. x x x" (Emphasis supplied) Since petitioner's sales of goods to entities located in export processing zones fall within the definition of "export sales" under EO No. 226, such sales are export sales contemplated by Section 106(A)(2)(a)(S) of the Tax Code, as amended, that are subject to zero percent (0%) VAT.r/

DECISION CTA CASE NOS. 8259 & 8296 Page 13 of28 Moreover, RA No. 7916, otherwise known as "The Special Economic Zone Act of 1995", provides that ecozones are considered separate customs territory, and the business establishments operating within the ecozones are entitled to certain fiscal incentives. Sections 8 and 23 ofRA No. 7916 provide: "SECTION 8. ECOZONE to be Operated and Managed as Separate Customs Territory. - The ECOZONES shall be managed and operated by the PEZA as separate customs territory." XXX XXX XXX "SECTION 23. Fiscal Incentives. Business establishments operating within the ECOZONES shall be entitled to the fiscal incentives as provided for under Presidential Decree No. 66, the law creating the Export Processing Zone Authority, or those provided under Book VI of Executive Order No. 226, otherwise known as the Omnibus Investment Code of 1987." RA No. 7227, otherwise known as the "Bases Conversion and Development Act of 1992", provides a similar provision treating the Subic Special Economic Zone as a separate customs territory, thus: "SECTION 12. Subic Special Economic Zone.-- XXX XXX XXX (b) The Subic Special Economic Zone shall be operated and managed as a separate customs territory ensuring free flow or movement of goods and capital within, into and exported out of the Subic Special Economic Zone, as well as provide incentives such as tax and duty free importations of raw materials, capital and equipment. However, exportation or removal of goods from the territory of the Subic Special Economic Zone to the other parts of the Philippine territory shall be subject to customs duties and taxes under the Customs and Tariff Code and other relevant tax laws of the Philippines;" In Commissioner of Intemal Revenue vs. Toshiba Information Equipment (Phils.), Inc.,24 the Supreme Court explained in this wise}/ 24 G.R. No. 150154, August 9, 2005.

DECISION CTA CASE NOS. 8259 & 8296 Page 14 of28 "This Court agrees, however, that PEZA-registered enterprises, which would necessarily be located within ECOZONES, are VAT- exempt entities, not because of Section 24 of Rep. Act No. 7916, as amended, which imposes the five percent (5�/o) preferential tax rate on gross income of PEZA-registered enterprises, in lieu of all taxes; but, rather, because of Section 8 of the same statute which establishes the fiction that ECOZONES are foreign territory. XXX XXX XXX Section 8 of Rep. Act No. 7916, as amended, mandates that the PEZA shall manage and operate the ECOZONES as a separate customs territory; thus, creating the fiction that the ECOZONE is a foreign territory. As a result, sales made by a supplier in the Customs Territory to a purchaser in the ECOZONE shall be treated as an exportation from the Customs Territory. Conversely, sales made by a supplier from the ECOZONE to a purchaser in the Customs Territory shall be considered as an importation into the Customs Territory. Given the preceding discussion, what would be the VAT implication of sales made by a supplier from the Customs Territory to an ECOZONE enterprise? The Philippine VAT system adheres to the Cross Border Doctrine, according to which, no VAT shall be imposed to form part of the cost of goods destined for consumption outside of the territorial border of the taxing authority. Hence, actual export of goods and services from the Philippines to a foreign country must be free of VAT; while, those destined for use or consumption within the Philippines shall be imposed with ten percent (1 0%) VAT." (Emphasis supplied) Likewise, in Commissioner of Intemal Revenue vs. Sekisui ]ushi Philippines, Inc.,25 the Supreme Court held that: "Notably, while an ecozone is geographically within the Philippines, it is deemed a separate customs territory and is regarded in law as foreign soil. Sales by suppliers from outside the borders of the ecozone to this separate customs territory are deemed as exports and treated as export sales. These sales are zero-rated or subject to a tax rate of zero percent." (Emphasis supplied)/ 25 G.R. No. 149671, July 21, 2006.

DECISION CTA CASE NOS. 8259 & 8296 Page 15 of28 With respect to sales by a VAT-registered supplier to a BOI-registered manufacturer/producer, Section 4.106-5 ofRR No. 16-2005 provides: "SECTION 4.106-5. Zero-Rated Sales of Goods or Properties. A zero-rated sale of goods or properties (by a VAT -registered person) is a taxable transaction for VAT purposes, but shall not result in any output tax. However, the input tax on purchases of goods, properties or services, related to such zero-rated sale, shall be available as tax credit or refund in accordance with these Regulations. The following sales by VAT -registered persons shall be subject to zero percent (0%) rate: (a) Export sales.- 'Export Sales' shall mean: XXX XXX XXX (5) Transactions considered export sales under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987, and other special laws. Considered export sales under Executive Order No. 226 shall mean the Philippine port F.O.B. value determined from invoices, bills of lading, inward letters of credit, landing certificates, and other commercial documents, of export products exported direcdy by a registered export producer, or the net selling price of export products sold by a registered export producer to another export producer, or to an export trader that subsequently exports the same; Provided, That sales of export products to another producer or to an export trader shall only be deemed export sales when actually exported by the latter, as evidenced by landing certificates or similar commercial documents; Provided, further, That without actual exportation the following shall be considered constructively exported for purposes of these provisions: (1) sales to bonded manufacturing warehouses of export-oriented manufacturers; (2) sales to export processing zones; (3) sales to registered export traders operating bonded trading warehouses supplying raw materials in the manufacture of export products under guidelines to be set by the Board in consultation with the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC); (4) sales to diplomatic missions and other agencies and/or instrumentalities granted tax immunities, of locally manufactured, assembled or repacked products whether paid for in foreign currency or not)

DECISION CTA CASE NOS. 8259 & 8296 For purposes of zero-rating, the export sales of registered export traders shall include commission income. The exportation of goods on consignment shall not be deemed export sales until the export products consigned are in fact sold by the consignee; and Provided, ftnal!J, that sales of goods, properties or services made by a VAT-registered supplier to a HOI-registered manufacturer/producer whose products are 100o/o exported are considered export sales. A certification to this effect must be issued by the Board of Investment (BOI) which shall be good for one year unless subsequendy re-issued by the BOI." (Emphasis supplied) Clearly, sales of goods to entities located in ECOZONES and those manufacturers/producers registered with BOI whose products are 100% exported are considered "export sales" subject to zero percent (0%) VAT rate pursuant to Section 106(A)(2)(a)(S) of the Tax Code, as amended. Similarly, services rendered to entities registered with the PEZA and SBMA are subject to zero percent (0%) VAT rate pursuant to Section 108(B)(3) of the Tax Code, as amended. In its Quarterly VAT Returns for the first and second quarters of taxable year 2009, petitioner reflected the amount of P304,513,100.96 as zero-rated sales/receipts, detailed as follows: Exhibit Taxable Quarter Zero-Rated of2009 Sales /Receipts "I" p 145,334,264.90 1st Quarter "]" 2nd Quarter 159,178,836.06 Total p 304,513,100.96 To substantiate the aforestated zero-rated sales/receipts, pennoner presented the sales invoices26 it issued to its clients for the subject period of claim, Certification27 from PEZA dated November 26, 2010 attesting that the enterprises listed therein are registered with PEZA or were issued Certifications for 2009 VAT zero-rating, Certificates of Registration and Tax Exemption issued by SBMA on December 4, 2009 and March 5, 2009 to NIDEC Subic Philippines Corporation and HHIC-PHIL INC., respectively/8 Certification29 issued by BOI on November 17, 2010 confirming that Shinkozan Corporation and Mindanao Silicon Metal Corp. were endorsed to the BIR for VAT zero-rated transactions within the validity periods indicated therein and the repore0 of the Court-commissioned Independent Certified Public Accountant (ICPA)-,1 26Exhibits "XXX-1" to "XXX-3049". 27 Exhibit "UU". 28 Exhibits "WW-1" and "WW-2". 29 Exhibit "W". 30 Exhibit "d-1".

DECISION CTA CASE NOS. 8259 & 8296 However, only the reported zero-rated sales of goods in the amount of P147,412,764.25 is duly covered by PEZA and SBMA certifications, and VAT zero-rated sales invoices issued in accordance with Section 113(A)(1) and (B) in relation to Section 106(A)(2)(a)(5) of the Tax Code, as amended. Below is the breakdown of the amount ofP147,412,764.25: 1st Quarter 2nd Quarter Total Zero-Rated Sales/Receiptsper Returns p 145,334,264.90 p 159,178,836.06 p 304,513,100.96 Less: Disallowances p 65,137,478.55 p 70,127,430.89 p 135,264,909.44 Per !CPA's findings: Sales supported by invoices without the 1,556,385.22 - 1,556,385.22 word "zero-rated" printed on the invoices31 in violation of Section 9,014,165.90 151,812.31 9,165,978.21 113(B)(2)(c) of the NIRC of 1997, as 260,620.00 309,500.00 570,120.00 amended 1,361,774.56 Sales supported by invoices dated 1,200,730.44 3,524,473.99 2,562,505.00 outside the period of claim32 3, 7 64,984.30 7,289,458.29 Per this Court's further verification:33 Sales of goods to PEZA/SBMA- 293,999.79 396,980.76 690,980.55 registered entities not covered by the effectivity period or date of issuance of p 81,228,364.20 p 75,871,972.51 p 157,100,336.71 the PEZA/SBMA certification Sales of goods to entities with cancelled p 64,105,900.70 p 83,306,863.55 p 147,412,764.25 PEZA Registration Sale of goods to entities without VAT Zero-Rating Certification from PEZA Sale of goods to entities not registered with PEZA/SBMA Declared zero-rated rental income was not supported by VAT zero-rated official receipts (ORs) in violation of Section 113(A)(2) of the NIRC of 1997, as amended Total Disallowances Valid Zero-Rated Sales Consequendy, only the portion of the input VAT claim attributable to the valid zero-rated sales of P147,412,764.25 will be considered for refund. The rate to be applied is based on the valid zero-rated sales over the total amount of reported zero-rated sales/receipts, computed as follows: Taxable Year Exh. Total Valid Zero-Rated Ratio of Valid Zero- 2009 "I" Sales/Receipts per Rated Sales to Total Sales Sales/Receipts per 1st Quarter Returns p 64,105,900.70 p 210,472,603.30 Returns 30.458074% 31 Exhibit "05-1", Annex C-3. 32 Exhibit "05-1", Annex C-4. 33 See details in Annex A of this Decision.

DECISION CTA CASE NOS. 8259 & 8296 2nd Quarter "]" 244,166,284.12 83,306,863.55 34.118905% p 454,638,887.42 p 147,412,764.25 After having resolved that petlttoner had VAT zero-rated sales for the subject period of claim in the total amount of P147,412,764.25, we proceed to the determination of whether petitioner incurred input taxes in connection thereto. Petitioner submitted various suppliers' official receipts, invoices, BOC Import Entry Internal Revenue Declarations (IEIRDs) and other documents34 in support of the input taxes reflected in its Quarterly VAT Returns for the first and second quarters of 2009 in the aggregate sum of P27,417,990.96, broken down as follows: 1st Quarter 2nd Quarter Total Exhibit "I" p 175,963.40 Exhibit 'T' Purchase of Capital Goods not p 96,137.69 p 79,825.71 exceeding P1Million Purchase of Capital Goods 478,390.70 467,243.31 945,634.01 exceeding P1Million Domestic Purchase of Goods other 1,866,998.03 1,416,722.26 3,283,720.29 than Capital Goods Importation of Goods other than 3,011,079.00 1,773,381.10 4,784,460.10 Capital Goods 8,893,809.49 9,334,403.67 18,228,213.16 Domestic Purchase of Services p 14,346,414.91 p 13,071,576.05 p 27,417,990.96 Total Upon examination of the documents supporting petitioner's reported input VAT, the Court-commissioned ICPA firm, Mendoza Querida & Co, through its Partner, Mr. Emmanuel Y. Mendoza, noted the following findings 35 : Findings Services Goods Capital Importation Total Goods Exceeding PlMillion Properly Substantiated 1. Input VAT on domestic purchases and importation supported by documents such as VAT ORs and VAT invoices, BOC IEIRD, BOC ORs and Bank ORs (Annexes A-1, A-2, A-3, A- 11,A-12,A-13 andA-14 if Exhibit '05-1") a. First Quarter of 2009 p 8,733,076.06 p 959,314.77 p 308,561.45 p 2,221,486.00 p 12,222,438.28 34 Exhibits "UUU-1" to "UUU-2574" and "VVV-1" to "VVV-111". 35 Exhibit "d-1", pp. 4-5.

DECISION CTA CASE NOS. 8259 & 8296 b. Second Quarter of 2009 7,596,977.99 1,406,113.00 470,393.31 1,572,026.10 11,045,510.40 P2,365,427. 77 P778,954.76 P3,793,512.10 P23,267 ,948.68 Subtotal P16,330,054.05 - - - p 10,709.56 Other Findings - - - 1,492.10 1. Input VAT on domestic - - - - - 98,884.66 purchases of services 92,158.63 - - - supported by ORs with pre- 29,256.81 p 29,256.81 p 77,629.25 p 292,331.00 printed Non-VAT/NV - 1,417,163.08 924,115.10 - 1,718,686.92 (Annex A4 ofExhibit '0'- 101,931.97 25,969.00 - 25,969.00 1") p 10,709.56 - - a. First Quarter of 2009 - 567,962.53 - - - 187,758.99 b. Second Quarter of 2009 1,492.10 p 318,300.00 - P177,629.25 p 4,150,042.28 2. Input VAT on domestic P956,584.01 P4,111,812.10 P1,055,303.88 P27,417,990.96 purchases of services P3,420,731.65 supported by documents such as invoices, statement of accounts, statements of charges, billing statements and credit memos (Annex A- 5 ofExhibit 'v-'-1") a. First Quarter of 2009 98,884.66 b. Second Quarter of 2009 92,158.63 3. Input VAT on domestic purchases of goods supported by documents such as ORs (AnnexA-6 of Exhibit '05-1") a. FirstQuarter of 2009 - 4. Input VAT on domestic purchases and importation supported by documents dated outside the period of claim (Annexes A-7, A-8, A- 9 andA-16 ofExhibit '05-1") a. First Quarter of 2009 23,087.73 b. Second Quarter of 2009 1,616,754.95 5. Input VAT on importation wherein the amount of input VAT in supporting documents is lower than the amount of input VAT in schedule (Annex A -15 ofExhibit '05- 1") a. Second Quarter of 2009 - 6. Input VAT on domestic purchases and importation with no available supporting documents (Annexes A -10 andA-17 rifExhibit '05-1") a. First Quarter of 2009 - b: Second Quarter of 2009 - Subtotal p 1,843,087.63 TOTAL p 18,173,141.68

DECISION CTA CASE NOS. 8259 & 8296 Page 20 of28 Save for the amount of P25,969.00, the input taxes enumerated under the "Other Findings" shall be disallowed for not being properly substantiated by VAT invoices or official receipts in accordance with Sections 11 O(A) and 113(A) and (B) of the Tax Code, as amended, and as implemented by Sections 4.110-8 and 4.113-1 ofRR No. 16-2005, as amended. With regard to the input taxes of P25,969.00 (item no. 5) pertrurung to petitioner's importation wherein the input VAT per the supporting document is lower than the input VAT per schedule, only the difference in the amount of P250.00 shall be disallowed. Thus, of the P4,150,042.28 input taxes listed under the ICPA's "Other Findings", only the amount of P4,124,323.28 should be disallowed as computed below: Input Taxes listed under the ICPA's "Other Findings" p 4,150,042.28 Less: Input taxes on importation wherein the input VAT per 25,969.00 the supporting document is lower than the input VAT per schedule (Annex A-15 ofExhibit '05-1") 250.00 p 4,124,323.28 Add: Difference between the input taxes on importation as reflected per the supporting document and per schedule (Annex A -15 ofExhibit '05-1") Disallowed Input VAT per ICPA's findine;s In addition, input taxes in the amount of P8,951,549.21 36 detailed below, , shall likewise be disallowed: Findings 1st Quarter 2nd Quarter Total Input VAT on domestic purchases of p 802,423.62 p 1,762,443.30 p 2,564,866.92 services supported by VAT official receipts but the VAT was not separately indicated in 4,272.00 9,312.42 13,584.42 violation of Section 113(B)(2)(a) of the NIRC 1,554,736.94 1,766,183.32 3,320,920.26 of 1997, as amended. Input VAT on domestic purchases of goods - 10,037.00 10,037.00 (other than capital goods) supported by VAT 28,308.78 sales invoices but the VAT was not 28,308.78 - separately indicated in violation of Section 113(B)(2)(a) of the NIRC of 1997, as amended. Input VAT on domestic purchases of services supported by documents other than VAT official receipts in violation of Section 113(A)(2) of the NIRC of 1997, as amended. Input VAT on domestic purchases of goods (other than capital goods) supported by documents other than VAT sales invoices in violation of Section 113(A)(1) of the NIRC of 1997, as amended. Input VAT on domestic purchase of capital goods exceeding P1 million supported by documents other than VAT sales invoices in 36 See details in Annex B of this Decision.

DECISION CTA CASE NOS. 8259 & 8296 Page 21 of28 violation of Section 113(A)(1) of the NIRC 8,676.00 - 8,676.00 of 1997, as amended. 25,200.73 25,200.73 Input VAT on domestic purchase of services 998,347.10 supported by undated official receipt in 1,981,608.00 P4,546,323.14 2,979,955.10 violation of Section 113(B)(3) of the NIRC P4,405,226.07 P8,951,549.21 of 1997, as amended. Input VAT on domestic purchases of goods (other than capital goods) supported by sales invoices but are not dated within the period of claim. Input VAT on importation of goods (other than capital goods) supported only by BOC IEIRDs, which do not reflect an entry date and/or machine validation for the amount of customs duties and taxes paid in violation of Section 110(A)(1)(b) of the NIRC of 1997, as amended and Section 4.110-8(a)(1) ofRR No. 16-05, as amended. TOTAL Further, this Court observes that the ICPA accounted for the input tax on purchases of capital goods exceeding P1 million in the amount of P956,584.01 which is higher than the amount of P945,634.01 reflected in the petitioner's Quarterly VAT Returns, as shown below: 1st Quarter 2nd Quarter Total Input VAT on purchases of capital p 486,190.70 p 470,393.31 p 956,584.01 goods exceeding P1 million 478,390.70 467,243.31 945,634.01 Per ICPA report p 7,800.00 p 3,150.00 p 10,950.00 Per Quarterly VAT Returns Difference Moreover, this Court notes that petitioner's input VAT from purchase of capital goods exceeding P1 million as declared in its Quarterly VAT Returns in the amount of P478,390.70 and P467,243.31 were being claimed in full. Considering the previously disallowed input tax, only the balance (net of disallowances per ICPA report and per this Court's findings) in the respective amounts of P272,452.67 and P470,393.31 for the first and second quarters of 2009 remain in the petitioner's claim, computed as follows: Input VAT on purchase of capital goods 1st Quarter 2nd Quarter Total exceeding_ 1 million per VAT returns p 478,390.70 p 467,243.31 p 945,634.01 Less: Disallowances 177,629.25 - 177,629.25 Per ICPA findings 28,308.78 - 28,308.78 Per this Court's further verification p 272,452.67 p 467,243.31 p 739,695.98 Difference

DECISION CTA CASE NOS. 8259 & 8296 The amounts of P272,452.67 and P467,243.31 are broken down as follows: Exhibit Supplier's Name Invoice Date Input VAT First Quarter of 2009 1/9/2009 p 20,220.24 1/1/2009 1,326.43 january 2/5/2009 22,728.00 "UUU-1986" JM Brenton Industries 3/6/2009 2,142.85 2/27/2009 "UUU-1987" Samaritan Industrial Sales 3/3/2009 964.28 3/3/2009 50,460.00 March 3/3/2009 4,752.00 3/3/2009 5,940.00 "UUU-1988" Alliance Industrial Sales 3/11/2009 5,940.00 3/11/2009 16,680.00 "UUU-1989" Coren Dig!tal Prints 3/11/2009 20,400.00 3/18/2009 10,200.00 "UUU-1990" F&A Industrial Sales 3/18/2009 19,800.00 3/18/2009 5,760.00 "UUU-1991" Fairchild Process Controls 3/3/2009 12,948.00 3/12/2009 17,182.80 "UUU-1992" Fairchild Process Controls 3/23/2009 1,317.86 3/17/2009 8,940.00 "UUU-1993" Fairchild Process Controls 2/17/2009 2/19/2009 844.39 "UUU-1994" Fairchild Process Controls 2/25/2009 6,471.43 3/12/2009 1,670.76 "UUU-1995" Fairchild Process Controls 3/18/2009 2,154.60 3/18/2009 1,623.54 "UUU-1996" Fairchild Process Controls 2/24/2009 1,840.70 2/27/2009 "UUU-1997" Fairchild Process Controls 3/2/2009 832.26 2/26/2009 996.32 "UUU-1998" Fairchild Process Controls 3/7/2009 1,469.70 3/19/2009 2,119.28 "UUU-1999" Fairchild Process Controls 3/5/2009 1,851.46 2/2/2009 1,612.38 "UUU-2000" Fairchild Process Controls 2/16/2009 5,298.22 3,672.00 "UUU-2001" General Electric Phils., Inc. 2,260.72 10,032.48 "UUU-2002" Gilbilt Industrial Marketing p 272,452.70 "UUU-2003" Instrumentation & Control Specialist, Inc. "UUU-2004" MS]C Electrical & Construction S~ly "UUU-2005" Niagara Industrial Equipment Corp. "UUU-2006" RS Components Limited "UUU-2007" Samaritan Industrial Sales "UUU-2008" Samaritan Industrial Sales "UUU-2009" Samaritan Industrial Sales "UUU-2010" Samaritan Industrial Sales "UUU-2011" Top Rigid Industrial Safety Supply, Inc. "UUU-2012" Top Rigid Industrial Safety Supply, Inc. "UUU-2013" Top Rigid Industrial Safety Supply, Inc. "UUU-2014" Top Rigid Industrial Safety Supply, Inc. "UUU-2015" Top Rigid Industrial Safety Sl!Pply, Inc. "UUU-2016" T~ Rig!d Industrial Safety Supply, Inc. "UUU-2017" Windshear International Philippines, Inc. "UUU-2018" Xtreme Heat Industrial Sales "UUU-2019" Yokogawa Phils., Inc. Subtotal Second Quarter of 2009 May Fairchild Process Controls 5/5/2009 p 8,640.00 "UUU-2020" Fairchild Process Controls 5/7/2009 "UUU-2021" Gateronics Elec. Components & Inst. 5,640.00 Services 5/9/2009 "UUU-2022" Greenlee CP Electrical Corporation 5/18/2009 2,445.21 "UUU-2023" Greenlee CP Electrical Corporation 5/8/2009 3,320.10 "UUU-2024" 13,280.40

DECISION CTA CASE NOS. 8259 & 8296 "UUU-2025" K-Lite Systems Innovations, Inc. 5/8/2009 1,821.43 "UUU-2026" MH Poly Electromechs, Inc. 5/19/2009 3,307.20 "UUU-2027" Top Rigid Industrial Safety S'!l?!ili, Inc. 5/7/2009 1,612.38 "UUU-2028" Top Rigid Industrial Safety Supply, Inc. 5/7/2009 3,163.24 "UUU-2029" Tork Philippines, Inc. 4/3/2009 1,420.71 "UUU-2030" Victor Hardware 4/27/2009 1,123.71 "UUU-2031" Windshear International Phili_p_pines, Inc. 4/28/2009 66,651.97 "UUU-2032" Yokogawa Phils., Inc. 5/21/2009 51,752.40 "UUU-2033" Yokogawa Phils., Inc. 5/14/2009 119,188.05 June "UUU-2034" Accent Micro Technologies, Inc. 5/19/2009 3,210.32 "UUU-2035" Belfer International Company 5/28/2009 2,868.20 "UUU-2036" Computer Support Center, Inc. 5/11/2009 4,773.21 "UUU-2037" Contronics Computer Center, Inc. 5/25/2009 4,178.57 "UUU-2038" Fairchild Process Controls 5/25/2009 3,000.00 "UUU-2039" Fairchild Process Controls 5/25/2009 5,568.00 "UUU-2040" Fairchild Process Controls 5/27/2009 19,008.00 "UUU-2041" K-Lite Systems Innovations, Inc. 6/1/2009 1,821.43 "UUU-2042" MH Poly Electromechs, Inc. 5/30/2009 "UUU-2043" Platinum International Supply, Inc. 4/30/2009 900.00 "UUU-2044" Platinum International Supply, Inc. 5/28/2009 27,988.80 "UUU-2045" Platinum International Supply, Inc. 6/9/2009 31,206.00 "UUU-2046" RPV Electro Technology Phils. Corp. 6/4/2009 30,702.86 "UUU-2047" Samaritan Industrial Sales 5/14/2009 24,107.98 "UUU-2048" Samaritan Industrial Sales 6/23/2009 "UUU-2049" Samaritan Industrial Sales 6/23/2009 7,639.26 "UUU-2050" Samaritan Industrial Sales 6/25/2009 5,211.42 "UUU-2051" South Manila V&F, Inc. 6/1/2009 1,055.35 "UUU-2052" South Manila V&F, Inc. 6/22/2009 2,836.07 "UUU-2053" Top Rigid Industrial Safety Supply, Inc. 6/11/2009 3,679.02 "UUU-2054" Top Rigid Industrial Safety Supply, Inc. 6/15/2009 "UUU-2055" Zenith Wire & Conduit Inc. 3/21/2009 332.22 925.36 Subtotal 1,221.43 TOTAL 1,643.01 p 467,243.31 p 739,696.0137 Pursuant to Section 11 O(A) of the Tax Code, as amended, input VAT claim on capital goods purchases attributable to zero-rated sales may be claimed either in full during the month of acquisition, or spread over a period of time, depending on the aggregate acquisition cost of the capital goods in the calendar month. If the aggregate acquisition cost exceeds P1Million, the claim for input tax should be spread over 60 months or the estimated useful life of the capital goods, whichever is shorter. On the other hand, if aggregate acquisition cost does not exceed P1 Million, the total input taxes shall be allowed as credit/refund in the month of acquisition(~" 37 Difference of P0.03 (P739,696.01 minus P739,695.98) is due to rounding-off.

DECISION CTA CASE NOS. 8259 & 8296 Page 24 of28 Applying the provisions of Section 110(A) to the present case, out of the P739,695.98 input VAT incurred by petitioner on capital goods exceeding Pl million, only the amounts of P13,622.64 and P12,510.17 are creditable or refundable for the first and second quarters of taxable year 2009, computed as follows: Exhibit Input VAT Useful Monthly Allowable Input Tax Life (in Input Tax 1st Quarter 2nd Quarter Months)38 First Quarter of 2009 Credit 60 January 60 p 337.00 22.11 "UUU-1986" p 20,220.24 60 p 1,011.01 p 1,011.01 60 378.80 "UUU-1987" 1,326.43 60 35.71 66.32 66.32 60 16.07 March 60 841.00 60 79.20 "UUU-1988 22,728.00 60 99.00 378.80 1,136.40 60 99.00 "UUU-1989 2,142.85 60 35.71 107.14 60 278.00 "UUU-1990 964.28 60 340.00 16.07 48.21 60 170.00 "UUU-1991 50,460.00 60 330.00 841.00 2,523.00 60 96.00 "UUU-1992 4,752.00 60 215.80 79.20 237.60 60 286.38 "UUU-1993 5,940.00 60 99.00 297.00 60 21.96 "UUU-1994 5,940.00 60 149.00 99.00 297.00 60 "UUU-1995 16,680.00 60 14.07 278.00 834.00 60 107.86 "UUU-1996 20,400.00 60 27.85 340.00 1,020.00 60 35.91 "UUU-1997 10,200.00 60 27.06 170.00 510.00 60 30.68 "UUU-1998 19,800.00 60 13.87 330.00 990.00 60 16.61 "UUU-1999 5,760.00 60 24.50 96.00 288.00 60 35.32 "UUU-2000 12,948.00 60 30.86 215.80 647.40 60 26.87 "UUU-2001 17,182.80 88.30 286.38 859.14 61.20 "UUU-2002 1,317.86 37.68 21.96 65.89 167.21 "UUU-2003 8,940.00 149.00 447.00 "UUU-2004 844.39 14.07 42.22 "UUU-2005 6,471.43 107.86 323.57 "UUU-2006 1,670.76 27.85 83.54 "UUU-2007 2,154.60 35.91 107.73 "UUU-2008 1,623.54 27.06 81.18 "UUU-2009 1,840.70 30.68 92.04 "UUU-2010 832.26 13.87 41.61 "UUU-2011 996.32 16.61 49.82 "UUU-2012 1,469.70 24.50 73.49 "UUU-2013 2,119.28 35.32 105.96 "UUU-2014 1,851.46 30.86 92.57 "UUU-2015 1,612.38 26.87 80.62 "UUU-2016 5,298.22 88.30 264.91 "UUU-2017 3,672.00 61.20 183.60 "UUU-2018 2,260.72 37.68 113.04 "UUU-2019 10,032.48 167.21 501.62 Subtotal p 13,622.64 Second Quarter of 2009 38 EXhI'bI't 011 5 1", p. 6, par. 1. -

DECISION CTA CASE NOS. 8259 & 8296 May "UUU-2020 p 8,640.00 60 p 144.00 - p 288.00 94.00 "UUU-2021 5,640.00 60 40.75 - 188.00 55.34 "UUU-2022 2,445.21 60 - 81.51 221.34 "UUU-2023 3,320.10 60 30.36 - 110.67 55.12 "UUU-2024 13,280.40 60 26.87 - 442.68 52.72 "UUU-2025 1,821.43 60 23.68 - 60.71 18.73 "UUU-2026 3,307.20 60 - 110.24 1,110.87 "UUU-2027 1,612.38 60 862.54 - 53.75 "UUU-2028 3,163.24 60 1,986.47 - 105.44 "UUU-2029 1,420.71 60 53.51 - 47.36 47.80 "UUU-2030 1,123.71 60 79.55 - 37.46 69.64 "UUU-2031 66,651.97 60 50.00 - 2,221.73 92.80 "UUU-2032 51,752.40 60 316.80 - 1,725.08 30.36 "UUU-2033 119,188.05 60 15.00 - 3,972.94 466.48 June 520.10 511.71 "UUU-2034 3,210.32 60 401.80 - 53.51 127.32 "UUU-2035 2,868.20 60 86.86 - 47.80 17.59 "UUU-2036 4,773.21 60 47.27 - 79.55 61.32 "UUU-2037 4,178.57 60 5.54 - 69.64 15.42 "UUU-2038 3,000.00 60 20.36 - 50.00 27.38 "UUU-2039 5,568.00 60 - 92.80 "UUU-2040 19,008.00 60 - 316.80 "UUU-2041 1,821.43 60 - 30.36 "UUU-2042 900.00 60 - 15.00 "UUU-2043 27,988.80 60 - 466.48 "UUU-2044 31,206.00 60 - 520.10 "UUU-2045 30,702.86 60 - 511.71 "UUU-2046 24,107.98 60 - 401.80 "UUU-2047 7,639.26 60 - 127.32 "UUU-2048 5,211.42 60 - 86.86 "UUU-2049 1,055.35 60 - 17.59 "UUU-2050 2,836.07 60 - 47.27 "UUU-2051 3,679.02 60 - 61.32 "UUU-2052 332.22 60 - 5.54 "UUU-2053 925.36 60 - 15.42 "UUU-2054 1,221.43 60 - 20.36 "UUU-2055 1,643.01 60 - 27.38 Subtotal p 12,510.17 TOTAL p 26,132.80 Proceeding from the aforesaid disallowances, out of petitioner's reported input VAT of P27,417,990.96, only the amount of P13,628,555.30, as computed below, represents petitioner's valid input VAT: 1st Quarter 2nd Quarter Total p 14,346,414.91 Input VAT per Quarterly VAT Returns p 13,071,576.05 p 27,417,990.96 Less: Disallowances

DECISION CTA CASE NOS. 8259 & 8296 Page 26 of28 Per ICPA Findings p 2,123,976.64 p 2,000,346.64 p 4,124,323.28 Per this Court's further verification 4,405,226.07 Input VAT on Purchase of Capital 4,546,323.14 8,951,549.21 Goods exceeding P1 million 272,452.67 Less: Allowable Input Tax Credit 467,243.31 739,695.98 for the period of claim (13,622.64) (12,510.17) (26,132.81) Total Disallowances p 6,788,032.74 p 7,001,402.92 p 13,789,435.66 Substantiated Input VAT p 7,558,382.17 p 6,070,173.13 p 13,628,555.30 At this point, the Court took into consideration the output taxes reported by petitioner in its Quarterly VAT Returns for the first and second quarters of taxable year 2009 and compared the same with the foregoing substantiated input taxes, to wit: Output Tax 1st Quarter 2nd Quarter Total Less: Valid Input Tax p 7,688,345.28 39 p 10,046,922.53 40 p 17,735,267.81 Output Tax Still Due 7,558,382.17 6,070,173.13 13,628,555.30 p 129,963.11 p 3,976,749.40 p 4,106,712.51 As shown above, petitioner's properly substantiated input taxes for the first and second quarters of 2009 are not enough to cover its output taxes for the same period. While petitioner reflected in its Quarterly VAT Return for the first quarter of 2009, the amount of P181,171,453.0241 as "Input Tax Carried Over from Previous Quarter", this Court finds that petitioner failed to present VAT invoices or receipts to prove the existence of such amount. Hence, the input tax carry-over of P181,171,453.02 cannot be validly applied against petitioner's output tax pursuant to Section 110(A) in relation to Section 110(B) of the Tax Code, as amended, which states: "SEC. 110. Tax Credits.-- "A. Creditable Input 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: XXX XXX xxxrf' 39 Exhibit "1", line 158. 40 Exhibit "J", line 158. 41 Exhibit "1", line 20A.

DECISION CTA CASE NOS. 8259 & 8296 Page 27 of28 (B) Excess Output or Input Tax. - If at the end of any taxable quarter the output tax exceeds the input tax, the excess shall be paid by the Vat-registered person. If the input tax exceeds the output tax, the excess shall be carried over to the succeeding quarter or quarters." Considering that there is no excess input VAT which may be the subject of a claim for refund/tax credit certificate under Section 112(A) of the Tax Code, as amended, the instant claim must be denied. WHEREFORE, premises considered, the consolidated petitions are DENIED for lack of merit. SO ORDERED. ~.~-j -~ MA. BELEN M. RINGPIS-LIBAN Associate Justice WE CONCUR: . PABON-VICTORINO ATTESTATION I attest that the conclusions in the above decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. LOVE

DECISION CTA CASE NOS. 8259 & 8296 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 this Court. Presiding Justice

ANNEXA AIR LIQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8259 & 8296 DISALLOWED ZERO-RATED SALES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit Invoice Date Customer's Name Amount of Sales (in PhP) --~-----�-- 4 000.00 Sales of goods to PEZA/SBMA-registered entities not covered by the 4 000.00 39,000.00 1) effectivity period or date of issuance of the PEZA/SBMA certification 58 500.00 65 000.00 First Quarter of 2009 65 000.00 65 000.00 January Aichi Forging Company of Asia Inc. 78 000.00 Aichi Forging Company of Asia Inc. 71500.00 ~ Austria Microsystems (Phils) Inc. 32 500.00 Austria Microsystems (Phils) Inc. 19 500.00 "XXX-118 15-Jan-09 Austria Microsvstems (Phils) Inc. 39 000.00 Austria Microsystems (Phils) Inc. 39 000.00 -~---- "XXX-149 19-Jan-09 Austria Microsystems (Phils) Inc. 65 000.00 "XXX-1 05-Jan-09 Austria Microsystems (Phils) Inc. 26 000.00 Austria Microsystems (Phils) Inc. 10 000.00 "XXX-2 05-Jan-09 Austria Microsystems (Phils) Inc. 52 000.00 Austria Microsystems (Phils) Inc. "XXX-11 05-Jan-09 Austria Microsystems (Phils} Inc. 450.00 Austria Microsystems (Phils) Inc. 14 500.00 "XXX-12 05-Jan-09 Austria Microsystems (Phils) Inc. 11600.00 Austria Microsvstems (Phils) Inc. 17 000.00 "XXX-14 05-Jan-09 Austria Microsystems (Phils) Inc. 20,400.00 Austria Nicrosystems (Phils) Inc. 23,800.00 ---- "XXX-15 06-Jan-09 cam Mechatronic (Phils) Inc. 23,800.00 eastern Philippines Corporation 476,611.39 "XXX-45 08-Jan-09 eastern Philippines Corporation Cirtek Electronics Corporation 1,920.00 "XXX-46 08-Jan-09 Cirtek Electronics Corporation 18,000.00 Cirtek Electronics Corporation 15 000.00 "XXX-52 08-Jan-09 Cirtek Electronics Corporation 7,500.00 Cirtek Electronics Corporation 46 000.00 "XXX-59 09-Jan-09 Cirtek Electronics Corporation 15 000.00 Continental Temic Electronics (Phils) Inc. "XXX-60 09-Jan-09 Continental Temic Electronics (Phils) Inc. 7 500.00 Continental Temic Electronics (Phils) Inc. 7 500.00 "XXX-66 12-Jan-09 Continental Temic Electronics (Phils) Inc. 703,634.41 Continental Temic Electronics (Phils) Inc. 5100.00 "XXX-75 12-Jan-09 Continental Temic Electronics (Phils) Inc. 5 000.00 Continental Temic Electronics Phils) Inc. 19,800.00 "XXX-104 14-Jan-09 Continental Temic Electronics Phils) Inc. 55,500.00 Continental Temic Electronics Phils) Inc. 22,000.00 "XXX-109 14-Jan-09 Continental Temic Electronics (Phils) Inc. 16,000.00 Heraeus Electronic Materials Phils. Inc. 16,000.00 "XXX-321 31-Jan-09 Heraeus Electronic Materials Phils. Inc. 24,500.00 Heraeus Electronic Materials Phils. Inc. 16,000.00 "XXX-28 07-Jan-09 Hitachi Industrial Machinery Philippines Corp. 24,500.00 Hitachi Industrial Machinery Philippines Corp. 28,653.55 "XXX-141 19-Jan-09 Hitachi Industrial Machinery Philippines Corp. 27,803.89 Hitachi Industrial Machinery Philippines Corp. 23,775.83 ____ _._ "XXX-110 14-Jan-09 Hitachi Industrial Machinery Philippines Corp. 4,500.00 "XXX-150 19-Jan-09 Hoya Glass Disk Philippines, Inc. 4,500.00 Hoya Glass Disk Philippines, Inc. 4,980.00 "XXX-209 23-Jan-09 Hoya Glass Disk Philippines, Inc. 3,320.00 Ibiden Philippines Inc. 17,500.00 "XXX-280 30-Jan-09 Ibiden Philippines Inc. Iomni Precision Inc. 200.00 "XXX-308 31-Jan-09 Iomni Precision Inc. Ju-Young Electronics (Phils) Inc. "XXX-322 31-Jan-09 Ju-Younq Electronics (Phils) Inc. "XXX-56 08-Jan-09 "XXX-57 08-Jan-09 -~ "XXX-204 23-Jan-09 "XXX-247 28-Jan-09 "XXX-253 28-Jan-09 "XXX-279 30-Jan-09 "XXX-297 31-Jan-09 "XXX-309 31-Jan-09 "XXX-323 31-Jan-09 "XXX-324 31-Jan-09 - - - - "XXX-112 15-Jan-09 "XXX-120 16-Jan-09 "XXX-241 28-Jan-09 "XXX-9 05-Jan-09 "XXX-30 07-Jan-09 "XXX-67 12-Jan-09 "XXX-113 15-Jan-09 "XXX-142 19-Jan-09 "XXX-2268 12-Jan-09 ---� "XXX-2269 12-Jan-09 "XXX-2270 12-Jan-09 ~--~-- 05-Jan-09 -~ "XXX-8 15-Jan-09 "XXX-115 "XXX-72 12-Jan-09 "XXX-73 12-Jan-09 "XXX-212 23-Jan-09 "XXX-325 31-Jan-09

ANNEXA AIR LIQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8259 & 8296 DISALLOWED ZERO-RATED SALES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit Invoice Date Customer's Name Amount of Sales --- (in PhP) ----- "XXX-48 08-Jan-09 Kuy Corporation 6,300.00 --- "XXX-49 08-Jan-09 Kuy Corporation 16_1000.00 "XXX-155 20-Jan-09 Kuy Corporation 16,000.00 �---- "XXX-58 08-Jan-09 Kyocera Kinseki Philippines Inc. 10,800.00 "XXX-5 05-Jan-09 Littlefuse Phils Inc 25,695.00 --�- "XXX-68 12-Jan-09 Littlefuse Phils Inc 8,565.00 "XXX-114 15-Jan-09 Littlefuse Phils Inc 8,565.00 r-- "XXX-163 21-Jan-09 Littlefuse Phils Inc, 34,260.00 "XXX-218 26-Jan-09 Littlefuse Phils Inc, 8_1565.00 --- "XXX-40 07-Jan-09 Luzon Electronics Tehnology Inc 12,729.90 "XXX-133 16-Jan-09 Luzon Electronics Tehnology Inc 29,073.70 -- "XXX-235 26-Jan-09 Luzon Electronics Tehnology Inc 31,375.80 "XXX-63 09-Jan-09 Maeno Giken Inc 5,700.00 -- "XXX-91 12-Jan-09 Maeno Giken Inc, 5,700.00 "XXX-139 16-Jan-09 Maeno Giken Inc 5,700.00 "XXX-33 07-Jan-09 Masuda Philippines Inc 9,600.00 "XXX-55 08-Jan-09 Masuda Philippines Inc 9 600.00 "XXX-64 09-Jan-09 Masuda Philippines Inc, 28,800.00 "XXX-88 12-Jan-09 Masuda Philippines Inc, 19,200.00 "XXX-92 12-Jan-09 Masuda Philippines Inc, 9,600.00 "XXX-107 14-Jan-09 Masuda Philippines Inc, 9,600.00 "XXX-108 14-Jan-09 Masuda Philippines Inc 11,892.32 "XXX-111 14-Jan-09 Masuda Phii!J:>pines Inc, 9,600.00 "XXX-151 19-Jan-09 Masuda Philippines Inc 14,400.00 "XXX-51 08-Jan-09 MSM Manila Inc. 7,500.00 "XXX-74 12-Jan-09 MSM Manila Inc. 7 500.00 "XXX-65 12-Jan-09 Nidec Subic Philippines Corporation 49 335.05 "XXX-333 31-Jan-09 Nidec Subic Philippines Corporation 3,500.00 "XXX-24 06-Jan-09 NXP Semiconductors Cabuyao 7,500.00 "XXX-100 14-Jan-09 NXP Semiconductors Cabuyao 7 500.00 "XXX-158 20-Jan-09 NXP Semiconductors Cabuyao 7 500.00 "XXX-162 21-Jan-09 NXP Semiconductors Cabuyao 7 500.00 "XXX-193 23-Jan-09 NXP Semiconductors Cabuyao 4 000.00 "XXX-194 23-Jan-09 NXP Semiconductors Cabuy_ao 4 000.00 "XXX-195 23-Jan-09 NXP Semiconductors Cabuyao 1900.00 "XXX-271 29-Jan-09 NXP Semiconductors Cabuyao 7 500.00 "XXX-37 07-Jan-09 On Semiconductors Phils. 24 893.60 "XXX-42 07-Jan-09 On Semiconductors Phils. 49 227.02 "XXX-83 12-Jan-09 On Semiconductors Phils. 34 242.36 "XXX-128 16-Jan-09 On Semiconductors Phils. 60 633.92 "XXX-129 16-Jan-09 On Semiconductors Phils. 27 415.95 "XXX-140 16-Jan-09 On Semiconductors Phils. 70 586.15 "XXX-170 22-Jan-09 On Semiconductors Phils. 69 350.76 "XXX-171 22-Jan-09 On Semiconductors Phils. 75 717.27 "XXX-172 22-Jan-09 On Semiconductors Phils. 68_1852.35 "XXX-173 22-Jan-09 On Semiconductors Phils. 68,017.11 "XXX-174 22-Jan-09 On Semiconductors Phils. 172,160.81 "XXX-175 22-Jan-09 On Semiconductors Phils. 59,459.92 "XXX-176 22-Jan-09 On Semiconductors Phils. 77 958.94 "XXX-177 22-Jan-09 On Semiconductors Phils. 63,469.40 "XXX-178 22-Jan-09 On Semiconductors Phils. 59 244.86 "XXX-179 22-Jan-09 On Semiconductors Phils. 87_L006.13 "XXX-180 22-Jan-09 On Semiconductors Phils. 45 513.47 "XXX-232 26-Jan-09 On Semiconductors Phils. 27 894.39 "XXX-233 26-Jan-09 On Semiconductors Phils. 23 136.31 "XXX-262 28-Jan-09 On Semiconductors Phils. 68 895.71 "XXX-263 28-Jan-09 On Semiconductors Phils. 31937.59 "XXX-62 09-Jan-09 Orient Semiconductor Electronics Philippines 8 800.00 "XXX-99 13-Jan-09 Orient Semiconductor Electronics Philippines 4 500.00

ANNEXA AIR LIQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8259 & 8296 DISALLOWED ZERO-RATED SALES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit Invoice Date Customer's Name Amount of Sales (in PhP) "XXX-143 19-Jan-09 Orient Semiconductor Electronics Philippines 19-Jan-09 Orient Semiconductor Electronics Philippines 5,500.00 "XXX-144 31-Jan-09 Orient Semiconductor Electronics Philippines 5,500.00 31-Jan-09 Orient Semiconductor Electronics Philippines 324,167.46 "XXX-314 07-Jan-09 Philippine Toei Chemical Corporation 2,670.00 16-Jan-09 Philippine Toei Chemical Corporation 50,121.60 "XXX-330 06-Jan-09 Pricon Microelectronics Inc. 40,150.00 06-Jan-09 Pricon Microelectronics Inc. 19,670.93 "XXX-39 12-Jan-09 Pricon Microelectronics Inc. 37,967.14 12-Jan-09 Pricon Microelectronics Inc. 10,816.00 "XXX-132 12-Jan-09 Pricon Microelectronics Inc. 30,262.92 16-Jan-09 Pricon Microelectronics Inc. 24,569.23 "XXX-25 16-Jan-09 Pricon Microelectronics Inc. 43,780.97 16-Jan-09 Pricon Microelectronics Inc. 19,678.60 "XXX-26 23-Jan-09 Pricon Microelectronics Inc. 30,519.85 23-Jan-09 Pricon Microelectronics Inc. 26,162.48 "XXX-76 23-Jan-09 Pricon Microelectronics Inc. 18,406.51 26-Jan-09 Pricon Microelectronics Inc. 19,655.04 "XXX-77 26-Jan-09 Pricon Microelectronics Inc. 17 153.35 28-Jan-09 Pricon Microelectronics Inc. 15 623.66 "XXX-78 28-Jan-09 Pricon Microelectronics Inc. 23,420.78 28-Jan-09 Pricon Microelectronics Inc. 26,222.27 "XXX-123 31-Jan-09 Pricon Microelectronics Inc. 28,168.47 31-Jan-09 Pricon Microelectronics Inc. 14,741.90 "XXX-124 31-Jan-09 Pricon Microelectronics Inc. 15,256.14 31-Jan-09 PSI Technologies 16[889.60 "XXX-125 31-Jan-09 PSI Technologies 1,666,664.11 31-Jan-09 PSI Technologies 310,911.56 "XXX-183 31-Jan-09 PSI Technologies 16 947.36 05-Jan-09 Samsung Electro-Mechanics Philippine Corp. 228,789.36 "XXX-184 05-Jan-09 Samsung Electro-Mechanics Philippine Corp. 4,000.00 06-Jan-09 Samsung Electro-Mechanics Philippine Corp. 14,500.00 "XXX-185 06-Jan-09 Samsung Electro-Mechanics Philippine Corp. 14,500.00 07-Jan-09 Samsung Electro-Mechanics Philippine Corp. 39,914.77 "XXX-225 08-Jan-09 Samsung Electro-Mechanics Philippine Corp. 28,469.07 09-Jan-09 Samsung Electro-Mechanics Philippine Corp. 14 500.00 "XXX-226 12-Jan-09 Samsung Electro-Mechanics Philippine Corp. 14,500.00 13-Jan-09 Samsung Electro-Mechanics Philippine Corp. 39195.91 "XXX-245 13-Jan-09 Samsung Electro-Mechanics Philippine Corp. 14 630.00 13-Jan-09 Samsung Electro-Mechanics Philippine Corp. 4 000.00 "XXX-246 13-Jan-09 Sanritsu Great International Corp. 14 500.00 22-Jan-09 Sanritsu Great International Corp. 15 000.00 "XXX-258 22-Jan-09 Sanritsu Great International Corp. 2 850.00 23-Jan-09 Sanritsu Great International Corp. 1250.00 "XXX-283 07-Jan-09 Showa Aluminum Manufacturing Phils. 15 000.00 14-Jan-09 Showa Aluminum Manufacturing Phils. 20 800.00 "XXX-284 16-Jan-09 Showa Aluminum Manufacturing Phils. 16 000.00 16-Jan-09 Showa Aluminum Manufacturing Phils. 10,400.00 "XXX-285 05-Jan-09 YKY Parts Corporation 75 000.00 08-Jan-09 YKY Parts Corporation 31 000.00 "XXX-2278 20-Jan-09 YKY Parts Corporation 31000.00 06-Jan-09 Yutaka Manufacturing (Phils} Inc. 31000.00 "XXX-2285 06-Jan-09 Yutaka Manufacturing (Phils) Inc. 1342.00 12-Jan-09 Yutaka Manufacturing (Phils) Inc. 7 501.20 "XXX-2286 13-Jan-09 Yutaka Manufacturing (Phils) Inc. 224 024.30 16-Jan-09 Yutaka Manufacturing (Phils) Inc. 18 753.00 "XXX-2287 235 225.60 28-Feb-09 Cam Mechatronic (Phils) Inc. "XXX-10 02-Feb-09 Cirtek Electronics Corporation 450.00 25 000.00 "XXX-13 "XXX-16 "XXX-27 ----�� "XXX-44 "XXX-53 "XXX-61 "XXX-90 "XXX-96 "XXX-97 "XXX-98 "XXX-94 "XXX-164 "XXX-166 "XXX-186 "XXX-32 "XXX-106 "XXX-137 "XXX-138 "XXX-3 "XXX-47 "XXX-156 "XXX-18 "XXX-19 "XXX-85 "XXX-95 "XXX-136 February "XXX-671 "XXX-346

ANNEXA AIR LIQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8259 & 8296 DISALLOWED ZERO-RATED SALES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit Invoice Date Customer's Name Amount of Sales (in PhP) �- 06-Feb-09 Cirtek Electronics Corporation 16-Feb-09 Cirtek Electronics Corporation 23 800.00 "XXX-419 06-Feb-09 Continental Temic Electronics (Phils) Inc. 23,800.00 "XXX-502 06-Feb-09 Ju-Young Electronics (Phils) Inc. 15,000.00 "XXX-415 24-Feb-09 Ju-Young Electronics (Phils) Inc. 18,000.00 "XXX-416 28-Feb-09 Ju-Young Electronics (Phils) Inc. 18,000.00 "XXX-594 05-Feb-09 Kuy Corporation "XXX-676 09-Feb-09 Kuv Corporation 200.00 "XXX-395 11-Feb-09 Kuy Corporation 3,150.00 "XXX-424 02-Feb-09 Luzon Electronics Technology, Inc. 3,150.00 "XXX-445 05-Feb-09 Luzon Electronics Tehnology Inc 16,000.00 "XXX-2293 28-Feb-09 Nidec Subic Philippines Corporation 35,505.00 "XXX-406 02-Feb-09 Nidec Subic Philippines Corporation 39,614.20 "XXX-684 02-Feb-09 Orient Semiconductor Electronics Philippines 3,500.00 "XXX-2297 04-Feb-09 Orient Semiconductor Electronics Philippines 18 936.00 "XXX-348 09-Feb-09 Orient Semiconductor Electronics Philippines 24,000.00 "XXX-379 02-Feb-09 Philippine Toei Chemical Corporation 11,000.00 "XXX-427 05-Feb-09 Philippine Toei Chemical Corporation 11,000.00 "XXX-349 27-Feb-09 Philippine Toei Chemical Corporation 18,000.00 "XXX-403 02-Feb-09 Pricon Microelectronics_,_ Inc. 48,126.00 "XXX-631 02-Feb-09 PSI Technologies IncL 44,818.10 -----�--- "XXX-2296 02-Feb-09 PSI Technologies Inc, 28 404.00 "XXX-350 02-Feb-09 Tokyo Steel Philippines Corporation 9 000.00 "XXX-351 02-Feb-09 Tokyo Steel Philippines Corporation 8 100.00 "XXX-362 04-Feb-09 YKY Parts Corporation 25,500.00 "XXX-363 05-Feb-09 YKY Parts Corporation 6 300.00 "XXX-385 15 500.00 "XXX-394 02-Mar-09 Philippine Toei Chemical Corporation 15 500.00 March 02-Mar-09 Tokyo Steel Philippines Corporation 02-Mar-09 Tokyo Steel Philippines Corporation 18 000.00 ---- 04-Mar-09 Nidec Subic Philippines Corpc:>ration 25 500.00 04-Mar-09 Nidec Subic Philippines Corporation "XXX-701 06-Mar-09 Nidec Subic Philippines Corporation 6 300.00 "XXX-714 06-Mar-09 Nidec Subic Philippines Corporation 27 655.20 "XXX-715 09-Mar-09 Ju-YoungEiectronicsJPhils) Inc. 41375.00 "XXX-730 10-Mar-09 Nidec Subic Philippines Corporation 33 100.00 "XXX-731 10-Mar-09 Nidec Subic Philippines Corporation 13 827.60 "XXX-762 10-Mar-09 Nidec Subic Philippines Corporation 18 000.00 "XXX-763 10-Mar-09 Nidec Subic Philippines Corporation "XXX-790 10-Mar-09 Nidec Subic Philippines Corporation 2 200.00 "XXX-792 10-Mar-09 Nidec Subic Philippines Corporation 1100.00 11-Mar-09 Philippine Toei Chemical Corporation 1100.00 -- 31-Mar-09 Nidec Subic Philippines Corporation 2 200.00 02-Mar-09 Nidec Subic Philippines Corporation 1100.00 "XXX-793 2 200.00 "XXX-794 54 627.00 "XXX-795 3_,_500.00 19 464.80 -- 9,014,165.90 "XXX-796 25 500.00 "XXX-797 6 300.00 "XXX-811 3 500.00 "XXX-1081 19 368.80 "XXX-2324 Subtotal 3 500.00 19 481.60 Second Quarter of 2009 51685.51 April 01-Apr-09 Tokyo Steel Philippines Corporation 3 500.00 Tokyo Steel Philippines Corporation 18 976.40 -- Nidec Subic Philippines Corporation Nidec Si.Jbic Philippines Corporation "XXX-1118 Nidec Subic Philippines Corporation "XXX-1119 01-Apr-09 Nidec Subic Philippines Corporation "XXX-1450 30-Apr-09 Nidec Subic Philippines Corporation Nidec Subic Philippines Corporation "XXX-2356 01-Apr-09 Nidec Subic Philippines Corporation May --��- "XXX-1865 31-May-09 01-May-09 ---- "XXX-2391 June "XXX-1928 03-Jun-09 "XXX-2253 30-Jun-09 "XXX-2429 01-Jun-09

ANNEXA AIR LIQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8259 8t 8296 DISALLOWED ZERO-RATED SALES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit Invoice Date Customer's Name Amount of Sales (in PhP) February 20,000.00 "XXX-345 02-Feb-09 Bell Electronics Corporation 26,400.00 28-Feb-09 Bell Electronics Corporation 25,601.40 "XXX-639 28-Feb-09 Bell Electronics Corporation 28-Feb-09 Bell Electronics Corporation 480.00 "XXX-657 16-Feb-09 Fujielastomers Manila Corp. 26,120.53 05-Feb-09 MME Technologies Inc. 25,492.61 "XXX-670 09-Feb-09 MME Technologies Inc. 35,621.82 09-Feb-09 MME Technologies Inc. 13 697.84 "XXX-494 11-Feb-09 MME Technologies Inc. 10 048.61 16-Feb-09 MME Technologies Inc. 12 712.44 "XXX-401 16-Feb-09 MME Technologies Inc. 14 396.97 17-Feb-09 MME Technologies Inc. "XXX-431 20-Feb-09 MME Technologies Inc. 5 173.61 23-Feb-09 MME Technologies Inc. 30 069.91 "XXX-436 28-Feb-09 MME Technologies Inc. 18,122.91 28-Feb-09 MME Technologies Inc. 21,985.47 "XXX-458 28-Feb-09 MME Technologies Inc. 13,605.28 02-Feb-09 MME Technologies Inc. "XXX-501 300.00 02-Mar-09 Bell Electronics Corporation 23,670.00 "XXX-509 31-Mar-09 Bell Electronics Corporation 31-Mar-09 Bell Electronics Corporation 20,000.00 "XXX-523 09-Mar-09 Fujielastomers Manila Corp. 74,357.60 18-Mar-09 Fujielastomers Manila Corp. "XXX-542 18-Mar-09 Fujielastomers Manila Corp. 480.00 19-Mar-09 Fujielastomers Manila Corp. 63,099.34 "XXX-571 31-Mar-09 Fujielastomers Manila Corp. 30,000.00 05-Mar-09 MME Technologies Inc. .. 09-Mar-09 MME Technologies Inc. 900.00 10-Mar-09 MME Technologies Inc. 59,448.74 "XXX-641 12-Mar-09 MME Technologies Inc. 78 654.92 19-Mar-09 MME Technologies Inc. 27 041.17 "XXX-642 23-Mar-09 MME Technologies Inc. 11,042.85 30-Mar-09 MME Technologies Inc. 16 815.37 "XXX-679 31-Mar-09 MME Technologies Inc. 16,293.42 31-Mar-09 MME Technologies Inc. 11 563.24 .. 02-Mar-09 MME Technologies, Inc. 13,577.59 24,150.75 "XXX-2294 20,768.02 March 300.00 24 331.00 "XXX-697 1,200,730.44 "XXX-1055 20 000.00 24 488.08 "XXX-1067 480.00 ---- "XXX-781 76 389.96 "XXX-885 19 808.63 .. "XXX-886 26 510.24 31886.53 "XXX-896 18 325.19 22 694.10 "XXX-1040 12 914.98 31 739.24 "XXX-751 16 623.62 19 419.92 "XXX-774 24 667.11 19 103.11 "XXX-805 20 404.93 24 211.00 . "XXX-824 "XXX-898 "XXX-932 "XXX-1022 "XXX-1032 "XXX-1076 "XXX-2321 Subtotal SecondQuarterof2009 April "XXX-1101 01-Apr-09 Bell Electronics Corporation Bell Electronics Corporation "XXX-1421 30-Apr-09 Bell Electronics Corporation Fujielastomers Manila Corp. --~-��-� "XXX-1435 30-Apr-09 Fujielastomers Manila Corp. "XXX-1242 15-Apr-09 Fujielastomers Manila Corp. --- "XXX-1320 23-Apr-09 MME Technologies Inc, MME Technologies Inc "XXX-1394 29-Apr-09 MME Technologies Inc, MME Technologies Inc. "XXX-1265 17-A_I.)r-09 MME Technologies Inc. MME Technologies Inc. "XXX-1278 20-Apr-09 MME Technologies Inc. MME Technologies Inc. "XXX-1302 21-Apr-09 MME Technologies Inc. MME Technologies Inc. "XXX-1157 03-Apr-09 MME Technologies Inc. "XXX-1187 07-Apr-09 "XXX-1232 14-Apr-09 "XXX-1325 23-Apr-09 "XXX-1365 27-Apr-09 "XXX-1382 28-Apr-09 "XXX-1402 30-Apr-09 "XXX-2353 01-Apr-09

ANNEXA AIR LIQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8259 & 8296 DISALLOWED ZERO-RATED SALES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit Invoice Date Customer's Name Amount of Sales {in PhP) May 01-May-09 Bell Electronics Corporation "XXX-1468 31-May-09 Bell Electronics Corporation 20 000.00 "XXX-1837 31-May-09 Bell Electronics Corporation 33,241.43 "XXX-1852 13-May-09 Fujielastomers Manila CorJ:>. "XXX-1614 27-May-09 Fujielastomers Manila Corp. 480.00 "XXX-1776 06-May-09 MME Technologies Inc. 79,372.41 "XXX-1536 11-May-09 MME Technologies Inc. 82 214.11 "XXX-1591 13-May-09 MME TechnoiQQies Inc. 33 379.06 "XXX-1613 14-May-09 MME Technologies Inc. 25,307.10 "XXX-1626 18-May-09 MME Technologies Inc. 18,141.76 "XXX-1659 21-May-09 MME Technologies Inc. 15,043.08 "XXX-1712 25-May-09 MME Technologies Inc. 17,275.83 "XXX-1731 26-May-09 MME Technologies Inc. 28,929.16 "XXX-1761 29-May-09 MME Technologies Inc. 20,838.09 "XXX-1799 31-May-09 MME Technologies Inc. 8,522.28 "XXX-1820 01-May-09 MME Technologies Inc. 20,765.55 "XXX-2388 17,755.53 01-Jun-09 Bell Electronics Corporation 24 352.00 June 30-Jun-09 Bell Electronics Corporation "XXX-1878 30-Jun-09 Bell Electronics Corporation 20,000.00 "XXX-2225 11-Jun-09 Fujielastomers Manila Corp. 33,881.34 "XXX-2238 23-Jun-09 Fujielastomers Manila Corp. "XXX-2024 30-Jun-09 Fujielastomers Manila Corp. 480.00 "XXX-2133 03-Jun-09 MME Technologies Inc. 66,274.78 "XXX-2207 04-Jun-09 MME Technologies Inc. 72 168.48 "XXX-1926 09-Jun-09 MME Technologies Inc. 71199.94 "XXX-1945 10-Jun-09 MME Technologies Inc. 10 235.55 "XXX-1979 11-Jun-09 MME Technologies Inc. 21161.66 "XXX-1998 15-Jun-09 MME Technologies Inc. 20 089.68 "XXX-2026 16-Jun-09 MME Technologies Inc. 11,825.32 "XXX-2050 19-Jun-09 MME Technologies Inc. 22,180.73 "XXX-2063 26-Jun-09 MME Technologies Inc. 22,778.86 "XXX-2104 29-Jun-09 MME Technologies Inc. 10,809.11 "XXX-2162 29-Jun-09 MME Technologies Inc. 31,556.59 "XXX-2187 30-Jun-09 MME Technologies Inc. 31,543.98 "XXX-2193 30-Jun-09 MME Technologies Inc. 16 173.95 "XXX-2208 01-Jun-09 MME Technologies Inc. "XXX-2247 1,200.00 "XXX-2426 18,910.06 Subtotal 300.00 23 720.50 Total 1,361,774.56 2,562,505.00 11_ Sales of goods to entities not registered with PEZA/SBMA First Quarter of 2009 January "XXX-93 13-Jan-09 Team Pacific Corporation 12,000.00 Team Pacific Corporation 24 000.00 ''XXX-217 26-Jan-09 Team Pacific Corporation 245 424.00 Team Pacific Corporation 263 370.87 "XXX-281 31-Jan-09 TST Inc. 290 745.65 TSTinc. 69 000.00 "XXX-282 31-Jan-09 Team Pacific Corp. 12 398 447.08 Team Pacific Corp. 184 917.35 - "XXX-317 31-Jan-09 Team Pacific Corp. 145 976.08 Team Pacific Corp. (12 398 447.08' "XXX-338 31-Jan-09 Team Pacific Corporation 8 150.00 - - - "XXX-2276 31-Jan-09 "XXX-2279 31-Jan-09 "XXX-2280 31-Jan-09 "XXX-2291 31-Jan-09 February "XXX-358 02-Feb-09

ANNEXA AIR LIQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8259 & 8296 DISALLOWED ZERO-RATED SALES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 ---------r - - - - Exhibit Invoice Date Customer's Name Amount of Sales (in PhP) "XXX-359 02-Feb-09 Team Pacific Corporation 18 000.00 "XXX-393 05-Feb-09 Eurowood Products and Technique Mfg Corporation 11454.50 "XXX-584 24-Feb-09 Team Pacific Corporation 24,000.00 "XXX-634 28-Feb-09 Team Pacific Corporation 187 579.14 "XXX-635 28-Feb-09 Team Pacific Corporation 176,752.68 "XXX-668 28-Feb-09 TSTinc. 375,704.71 "XXX-689 28-Feb-09 TSTinc. 69_1_000.00 "XXX-691 28-Feb-09 TSTinc. "XXX-2308 28-Feb-09 Team Pacific Corporation (313.02) "XXX-2309 28-Feb-09 Team Pacific Corporation 144 846.44 "XXX-2298 02-Feb-09 TST Inc. 100 381.04 March 28 404.00 "XXX-710 02-Mar-09 Team Pacific Corporation "XXX-711 02-Mar-09 Team Pacific Corporation 8 150.00 "XXX-814 12-Mar-09 Team Pacific Corporation 18 000.00 "XXX-1037 31-Mar-09 Team Pacific Corporation 12,000.00 "XXX-1038 31-Mar-09 Team Pacific Corporation 234,603.18 "XXX-1065 31-Mar-09 TSTinc. 263 058.31 "XXX-1087 31-Mar-09 TSTinc. 431806.95 "XXX-2342 31-Mar-09 Team Pacific Corporation 57 000.00 "XXX-2343 31-Mar-09 Team Pacific Corporation 181812.86 "XXX-2325 02-Mar-09 TST Inc. 149 962.36 Subtotal 29 197.20 3,764,984.30 Second Quarter of 2009 Team Pacific Corporation 8,150.00 April Team Pacific Corporation 18 000.00 Team Pacific Corporation 204 784.58 "XXX-1114 01-Apr-09 Team Pacific Corporation 233 887.87 "XXX-1115 01-Apr-09 TSTinc. 424,350.75 "XXX-1406 30-Apr-09 TST Inc. 57 000.00 "XXX-1407 30-Apr-09 Team Pacific Corporation 159,666.77 "XXX-1432 30-Apr-09 Team Pacific Corporation 134,120.40 "XXX-1456 30-Apr-09 TST, Inc. 29,053.20 "XXX-2376 30-Apr-09 Ansul Incorporated (2,884.48) "XXX-2377 30-Apr-09 "XXX-2357 01-Apr-09 Team Pacific Corporation 8,150.00 "XXX-2385 29-Apr-09 Team Pacific Corporation 18,000.00 May PiliRinas Shell Petroleum Corp. 90,650.00 "XXX-1483 01-May-09 Team Pacific Corporation 24,000.00 "XXX-1484 01-May-09 Team Pacific Corporation 161,928.69 "XXX-1634 15-May-09 Team Pacific Corporation 177,768.50 "XXX-1638 18-May-09 TSTinc. 536,909.75 "XXX-1802 31-May-09 TSTinc. 57 000.00 "XXX-1803 31-May-09 Team Pacific Corporation 123 273.42 "XXX-1850 31-May-09 Team Pacific Corporation 99 517.96 "XXX-1871 31-May-09 TST, Inc. 29 222.40 "XXX-2414 31-May-09 Ansul Incorporated (349,933.87) "XXX-2415 31-May-09 "XXX-2392 01-May-09 Team Pacific Corporation 8,150.00 "XXX-2423 27-May-09 Team Pacific Corporation 18,000.00 June Team Pacific Corporation 176_(569.26 "XXX-1891 01-Jun-09 Team Pacific Corporation 173,666.15 "XXX-1892 01-Jun-09 TSTinc. 575 676.58 "XXX-2210 30-Jun-09 TSTinc. 66 000.00 "XXX-2211 30-Jun-09 Team Pacific Corporation 136 556.09 "XXX-2237 30-Jun-09 Team Pacific Corporation 98,775.37 "XXX-2259 30-Jun-09 TST, Inc. 28,464.60 "XXX-2452 30-Jun-09 "XXX-2453 30-Jun-09 "XXX-2430 01-Jun-09

ANNEXA AIR LIQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8259 &. 8296 DISALLOWED ZERO-RATED SALES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit Invoice Date Customer's Name Amount of Sales (in PhP) Subtotal 3,524,473.99 -~ 7,289,458.29 Total 1Declared zero-rated rental mcome was not supported by VAT zero-rated official receipts (Ors) in violation of Section 113(A)(2) of the NIRC of 5) 1997, as amended First Quarter of 2009 Kyocera Kinseki Philippines Inc. 1200.00 January Littlefuse Philippines Inc. 3 900.00 MSM Manila Inc. 2,500.00 "XXX-326 31-Jan-09 PASAR 7 400.00 "XXX-327 31-Jan-09 Samsung Electro-Mechanic Philippines 36 000.00 "XXX-329 31-Jan-09 On Semiconductor Phils. Inc. "XXX-331 31-Jan-09 Ibiden Philippines Inc. 100.00 "XXX-332 31-Jan-09 Tann Philippines 5 200.00 "XXX-334 31-Jan-09 Temic Automotive Philippines "XXX-335 31-Jan-09 Air Water Philippines Inc. 200.00 "XXX-336 31-Jan-09 69 000.00 "XXX-337 31-Jan-09 4 236.84 "XXX-2288 31-Jan-09 3,000.00 February 02-Feb-09 Fujitsu Ten Corp. of the Philippines 1,920.00 "XXX-352 28-Feb-09 Cirtek Electronics Corporation 5,500.00 "XXX-672 28-Feb-09 Continental Temic Electronics Phils. 5,000.00 "XXX-673 28-Feb-09 Continental Temic Electronics Phils. 5,000.00 "XXX-674 28-Feb-09 Heraeus Electronic Materials Phils. Inc. 1,200.00 "XXX-675 28-Feb-09 Kyocera Kinseki Philippines Inc. 3,900.00 "XXX-677 28-Feb-09 Littlefuse Philippines Inc. 2,140.00 "XXX-678 28-Feb-09 MSM Manila Inc. 2,670.00 "XXX-680 28-Feb-09 Orient Semiconductor Electronics 4,400.00 "XXX-681 28-Feb-09 PASAR 38 500.00 "XXX-682 28-Feb-09 Samsung Electro-Mechanic Philippines "XXX-683 28-Feb-09 On Semiconductor Phils. Inc. 100.00 "XXX-685 28-Feb-09 Ibiden Philippines Inc. 5 200.00 "XXX-686 28-Feb-09 Tann Philippines "XXX-687 28-Feb-09 Temic Automotive Philippines 200.00 "XXX-688 28-Feb-09 On Semiconductor Phils. Inc. 2,500.00 "XXX-690 28-Feb-09 Air Water Philippines, Inc. "XXX-2318 400.00 "~-- 02-Mar-09 PSI Technologies Inc. 4 341.24 ---~-- March 02-Mar-09 Samsung Electro-Mechanic Philippines "XXX-704 18-Mar-09 MSM Manila Inc. 3,000.00 -�- "XXX-706 18-Mar-09 Nidec Philippines Corporation 4 500.00 "XXX-875 31-Mar-09 Austria Microsystems Phils. Inc. 2,140.00 "XXX-884 31-Mar-09 cam Mechatronics (Phils) Inc. 8,000.00 "XXX-1066 31-Mar-09 Cirtek Electronics Corporation 2,500.00 "XXX-1068 31-Mar-09 Continental Temic Electronics Phils. "XXX-1069 31-Mar-09 Continental Temic Electronics Phils. 450.00 "XXX-1070 31-Mar-09 Heraeus Electronic Materials Phils. Inc. 2,020.00 "XXX-1071 31-Mar-09 Ju-Young Electronics Phils. Inc. 5 500.00 "XXX-1072 31-Mar-09 Kvocera Kinseki Philippines !nc. 5,000.00 "XXX-1073 31-Mar-09 Littlefuse Philippines Inc. 5,000.00 "XXX-1074 31-Mar-09 MSM Manila Inc. "XXX-1075 31-Mar-09 Orient Semiconductor Electronics 200.00 "XXX-1077 31-Mar-09 PASAR 1,650.00 "XXX-1078 31-Mar-09 Samsung Electro-Mechanic Philippines 3,600.00 "XXX-1079 31-Mar-09 On Semiconductor Phils. Inc. 2,140.00 "XXX-1080 2,670.00 "XXX-1082 7,800.00 38,500.00 100.00

ANNEXA AIR LIQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8259 8t 8296 DISALLOWED ZERO-RATED SALES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit Invoice Date Customer's Name Amount of Sales (in PhP) ~ "XXX-1083 31-Mar-09 Shinetsu Magnetic Phils. Inc. "XXX-1084 31-Mar-09 Ibiden Philippines Inc. 1000.00 -~~ "XXX-1085 31-Mar-09 Tann Philippines 7 800.00 "XXX-1086 31-Mar-09 Temic Automotive Philippines ---- "XXX-1088 31-Mar-09 On Semiconductor Phils. Inc. 200.00 "XXX-1092 18-Mar-09 MSM Manila Inc. 2 500.00 "XXX-1093 18-Mar-09 Analog Devices Gen. Trias "XXX-1098 25-Mar-09 Honda Parts Manufacturing Corp. 400.00 "XXX-1099 31-Mar-09 Honda Parts Manufacturing Corp. (2 500.00) "XXX-2350 31-Mar-09 Air Water Philippines, Inc. (2 520.00' Subtotal (216.00) Second Quarter of 2009 PSI Technologies Inc. (27 500.00) April CPL Packaging Inc. Austria Microsystems Phils. Inc. 4,357.71 "XXX-1108 01-Apr-09 cam Mechatronics (Phils) Inc. "XXX-1433 30-Apr-09 Cirtek Electronics Corporation 293,999.79 "XXX-1434 30-Apr-09 Continental Temic Electronics Phils. "XXX-1436 30-Apr-09 Continental Temic Electronics Phils. 3,000.00 "XXX-1437 30-Apr-09 Fastech Electronique Inc. 600.00 "XXX-1438 30-Apr-09 Heraeus Electronic Materials Phils. Inc. "XXX-1439 30-Apr-09 Honda Parts Manufacturing Corp. 15,000.00 "XXX-1440 30-Apr-09 Kvocera Kinseki Philippines Inc. 450.00 "XXX-1441 30-Apr-09 Littlefuse Philippines Inc. "XXX-1442 30-Apr-09 MSM Manila Inc. 2 020.00 "XXX-1443 30-Apr-09 Orient Semiconductor Electronics 5 700.00 "XXX-1444 30-Apr-09 PASAR "XXX-1445 30-Apr-09 AGC Flat Glass Phils. Inc. ~,000.00 "XXX-1446 30-Apr-09 Samsung Electro-Mechanic Philippines "XXX-1447 30-Apr-09 On Semiconductor Phils. Inc. 150.00 "XXX-1448 30-Apr-09 Shinetsu Magnetic Phils. Inc. 5 000.00 "XXX-1449 30-Apr-09 Ibiden Philippines Inc. "XXX-1451 30-Apr-09 Tann Philippines 900.00 "XXX-1452 30-Apr-09 Temic Automotive Philippines 1650.00 "XXX-1453 30-Apr-09 Ibiden Philippines Inc. 2 100.00 "XXX-1454 30-Apr-09 Air Water Philippines, Inc. 2 140.00 "XXX-1455 30-Apr-09 2 670.00 "XXX-1463 29-Apr-09 PSI Technologies Inc. 7 800.00 "XXX-2384 30-Apr-09 Tokyo Steel Philippines Corp. May Tokyo Steel Philippines Corp. 450.00 "XXX-1476 01-May-09 Ibiden Philippines Inc. 38 500.00 "XXX-1487 01-May-09 Austria Microsystems Phils. Inc. "XXX-1488 01-May-09 cam Mechatronics (Phils) Inc. 100.00 "XXX-1808 31-Mav-09 Cirtek Electronics Corporation 1000.00 "XXX-1851 31-May-09 Continental Temic Electronics Phils. 7 800.00 "XXX-1853 31-May-09 Continental Temic Electronics Phils. "XXX-1854 31-May-09 Heraeus Electronic Materials Phils. Inc. 200.00 "XXX-1855 31-May-09 Ionics EMS Inc. 2 500.00 "XXX-1856 31-May-09 Kvocera Kinseki Philippines Inc. (2 600.00) "XXX-1857 31-Mav-09 Littlefuse Philippines Inc. 4,383.72 "XXX-1858 31-May-09 MSM Manila Inc. "XXX-1859 31-Mav-09 On Semiconductor Phils. Inc. 3 000.00 "XXX-1860 31-May-09 Orient Semiconductor Electronics 12 750.00 "XXX-1861 31-May-09 PASAR "XXX-1862 31-Mav-09 On Semiconductor Phils. Inc. 6,300.00 "XXX-1863 31-May-09 Shinetsu Magnetic Phils. Inc. 5,200.00 "XXX-1864 31-May-09 Ibiden Philippines Inc. 15,000.00 "XXX-1866 31-May-09 "XXX-1867 31-Mav-09 450.00 "XXX-1868 31-Mav-09 2,260.00 4,900.00 5,000.00 5 000.00 15,000.00 1650.00 2,100.00 2 140.00 5 600.00 2 670.00 7 800.00 100.00 1000.00 5 200.00

ANNEXA AIR UQUIDE PHIUPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8259 & 8296 DISALLOWED ZERO-RATED SALES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit Invoice Date Customer's Name Amount of Sales (in PhP) "XXX-1869 31-May-09 Tann Philippines "XXX-1870 31-May-09 Temic Automotive Philippines 200.00 "XXX-1872 31-May-09 On Semiconductor Phils. Inc. 2,500.00 "XXX-1873 31-May-09 Samsun_g Electro-Mechanic Philippines "XXX-1875 31-May-09 Ibiden Philippines Inc. 400.00 "XXX-1876 31-May-09 Austria Microsystems Phils. Inc. 38,500.00 "XXX-2422 31-May-09 Air Water Philippines, Inc. (7,800.00) June (5,000.00) "XXX-1885 01-Jun-09 PSI Technologies Inc. 4 279.32 "XXX-1895 01-Jun-09 Tokyo Steel Philippines Corp. "XXX-1896 01-Jun-09 Tokyo Steel Philippines Corp. 3 000.00 "XXX-2239 30-Jun-09 cam Mechatronics (Phils) Inc. 12,750.00 "XXX-2240 30-Jun-09 Cirtek Electronics Corporation 6 300.00 "XXX-2241 30-Jun-09 Continental Temic Electronics Phils. "XXX-2242 30-Jun-09 Continental Temic Electronics Phils. 450.00 "XXX-2243 30-Jun-09 Heraeus Electronic Materials Phils. Inc. 2,260.00 "XXX-2244 30-Jun-09 Ionics EMS Inc. 5,500.00 "XXX-2245 30-Jun-09 Kyocera Kinseki Philippines Inc. 5 000.00 "XXX-2246 30-Jun-09 Littlefuse Philippines Inc. 5,000.00 "XXX-2248 30-Jun-09 MSM Manila Inc. 15 000.00 "XXX-2249 30-Jun-09 On Semiconductor Phils. Inc. 1,650.00 "XXX-2250 30-Jun-09 Orient Semiconductor Electronics 2 100.00 "XXX-2251 30-Jun-09 PASAR 2l140.00 "XXX-2252 30-Jun-09 Samsung Electro-Mechanic Philippines 28,000.00 "XXX-2254 30-Jun-09 On Semiconductor Phils. Inc. 2,670.00 "XXX-2255 30-Jun-09 Shinetsu Magnetic Phils. Inc. 7 800.00 "XXX-2256 30-Jun-09 Ibiden Philippines Inc. 38,500.00 "XXX-2257 30-Jun-09 Tann Philippines "XXX-2258 30-Jun-09 Temic Automotive Philippines 100.00 "XXX-2260 30-Jun-09 Automotive Interiors Corporation 1,000.00 "XXX-2262 30-Jun-09 On Semiconductor Phils. Inc. 5,200.00 "XXX-2460 30-Jun-09 Air Water Philippines, Inc. Subtotal 200.00 2,,500.00 2,400.00 400.00 4,347.72 396,980.76 Total 690,980.55 GRAND TOTAL - DISALLOWED ZERO-RATED SALES/RECEIPTS PER THIS COURT'S FURTHER VERIFICATION 20,279,042.05

AIR LIQUIDE PHILIPPINES, INC. ANNEXB -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8529 8t 8296 Input VAT ADDITIONAL INPUT VAT DISALLOWANCES PER THIS COURT'S FURTHER VERIFICATION (In PhP) FOR THE FIRST AND SECOND QUARTERS OF 2009 593.10 Exhibit OR/Invoice/IEIRD No. Supplier 587.82 160.71 1) Input VAT on domestic purchases of services supported by VAT official receipts 160.71 160.71 I(ORs) but the VAT was not separately indicated 160.71 160.71 First Quarter of 2009 160.71 689.38 January 689.38 689.38 "UUU-128 PKPOR000255941 Philippine Long Distance Telephone Co. 689.38 Philippine Long Distance Telephone Co. 160.71 "UUU-129 PKPOR000255941 Philippine Long Distance Telephone Co. 160.71 Philippine Long Distance Telephone Co. 160.71 "UUU-130 PKPOR000255941 Philippine Long Distance Telephone Co. 287.13 Philippine Long Distance Telephone Co. 960.00 "UUU-131 PKPOR000255941 Philippine Long Distance Telephone Co. 297.35 Philippine Lona Distance Teleohone Co. 166.09 "UUU-132 PKPOR000255941 Philiooine Lona Distance Teleohone Co. 177.01 Philiopine Lona Distance Telephone Co. 235.07 "UUU-133 PKPOR000255941 Philippine Long Distance Telephone Co. 534.04 Philippine Long Distance Telephone Co. 205.79 "UUU-134 PKPOR000255941 Philippine Long Distance Teleohone Co. 129.50 Philiooine Lona Distance Teleohone Co. 1,081.34 "UUU-135 PKPOR000255941 Philiopine Lona Distance Telephone Co. 156.54 Philippine Long Distance Telephone Co. 159.27 "UUU-136 PKPOR000255941 Philippine Long Distance Telephone Co. 967.60 Philippine Lona Distance Teleohone Co. 151.09 "UUU-137 PKPOR000255941 Philippine Lona Distance Telephone Co. 175.77 Philippine Long Distance Telephone Co. 151.09 "UUU-138 PKPOR000255941 Philippine Long Distance Telephone Co. 153.27 Philiooine Lona Distance Teleohone Co. 260.12 ---- "UUU-139 PKPOR000255941 Philiooine Lona Distance Teleohone Co. 194.04 Philippine Lona Distance Telephone Co. 431.52 "UUU-140 PKPOR000255941 Philippine Long Distance Telephone Co. 276.02 Philippine Long Distance Telephone Co. 660.16 "UUU-141 PKPOR000255941 Philippine Long Distance Teleohone Co. 186.54 Philiooine Lona Distance Teleohone Co. 151.09 "UUU-142 PKPOR000255941 Philippine Long Distance Telephone Co. 206.19 Philippine Long Distance Teleohone Co. 329.40 "UUU-143 PKPOR000255941 Philippine Lona Distance Teleohone Co. 157.63 Philippine Lona Distance Telephone Co. 207.84 "UUU-144 PKPOR000255941 Philippine Long Distance Telephone Co. 185.99 Philippine Long Distance Telephone Co. 151.09 "UUU-145 PKPOR000255941 Philippine Long Distance Telephone Co. 151.09 Philippine Long Distance Telephone Co. 358.28 "UUU-146 PKPOR000255941 Philippine Long Distance Telephone Co. 1 075.22 Philippine Long Distance Telephone Co. 565.17 "UUU-147 PKPOR000255941 Philippine Lona Distance Teleohone Co. 3 542.13 Philippine Lona Distance Telephone Co. 151.09 "UUU-148 PKPOR000255941 Philippine Long Distance Telephone Co. 152.59 Philippine Long Distance Telephone Co. 157.63 "UUU-149 PKPOR000258922 Philiooine Lona Distance Teleohone Co. 3 000.00 Philiooine Lonq Distance Teleohone Co. 3 336.04 "UUU-150 PKPOR000258922 Philippine Long Distance Teleohone Co. 266.79 Philippine Long Distance Teleohone Co. 1 723.14 "UUU-151 PKPOR000258922 Philippine Long Distance Telephone Co. Philippine Long Distance Telephone Co. page 1 of 11 "UUU-152 PKPOR000258922 Philippine Long Distance Telephone Co. Philiooine Lona Distance Teleohone Co. "UUU-153 PKPOR000255906-934 Philippine Lonq Distance Teleohone Co. Philippine Long Distance Telephone Co. "UUU-154 PKPOR000255906-934 Philippine Long Distance Telephone Co. Philippine Lonq Distance Telephone Co. "UUU-155 PKPOR000255906-934 Philippine Forklift Center Inc. Philippine Forklift Center Inc. "UUU-156 PKPOR000255906-934 Philiooine Forklift Center Inc. "UUU-157 PKPOR000255906-934 "UUU-158 PKPOR000255906-934 "UUU-159 PKPOR000255906-934 "UUU-160 PKPOR000255906-934 "UUU-161 PKPOR000255906-934 "UUU-162 PKPOR000255906-934 "UUU-163 PKPOR000255906-934 "UUU-164 PKPOR000255906-934 "UUU-165 PKPOR000255906-934 "UUU-166 PKPOR000255906-934 "UUU-167 PKPOR000255906-934 "UUU-168 PKPOR000255906-934 "UUU-169 PKPOR000255906-934 "UUU-170 PKPOR000255906-934 "UUU-171 PKPOR000255906-934 "UUU-172 PKPOR000255906-934 "UUU-173 PKPOR000255906-934 "UUU-174 PKPOR000255906-934 "UUU-175 PKPOR000255906-934 "UUU-176 PKPOR000255906-934 "UUU-177 PKPOR000255906-934 "UUU-178 PKPOR000255906-934 "UUU-179 PKPOR000255906-934 "UUU-180 PKPOR000255906-934 "UUU-181 PKPOR000255906-934 "UUU-182 29832 "UUU-183 29845 "UUU-184 29845

AIR LIQUIDE PHILIPPINES, INC. ANNEXB -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8529 & 8296 Input VAT ADDITIONAL INPUT VAT DISALLOWANCES PER THIS COURT'S FURTHER VERIFICATION (In PhP) FOR THE FIRST AND SECOND QUARTERS OF 2009 1,794.34 Exhibit OR/Invoice/IEIRD No. Supplier 595.23 876.37 "UUU-255 39141 Toyota Makati Inc. 175.36 "UUU-256 093128 Toyota Pasong Tamo "UUU-257 313314 Toyota Shaw Ortigas 2,093.62 "UUU-258 313314 Toyota Shaw Ortigas 15,475.50 "UUU-259 313314 Toyota Shaw Ortigas 14,382.00 "UUU-287 Comfac Corporation "UUU-297 3819 Fairchild Process Controls 1,042.68 "UUU-320 1930 Int'l Container Terminal Services Inc. 636.00 "UUU-325 AF#B37438/1248549 Teresita Malic Customs Broker "UUU-326 AF#B36113/1253525 Teresita Malic Customs Broker 2,441.58 "UUU-327 AF#B37438/1248549 Teresita Malic Customs Broker 636.00 February AF#B40238/1260168 "UUU-329" 427.20 f---- "UUU-332" 12783 Access Frontier Technologies Inc. 1,154.37 "UUU-404" 0951 Asiamark Const. & Sales Corp. "UUU-406" 395 Filipinas Inspection Inc. 732.60 "UUU-435" GlWRBD07032567 Globe Telecom 29,548.43 "UUU-442" 0104572 Manila Water Company 21,528.44 "UUU-443" 11721 Mirof Resources Inc. "UUU-444" 11721 Mirof Resources Inc. 195.78 "UUU-445" 11721 Mirof Resources Inc. 362.21 "UUU-446" 11721 Mirof Resources Inc. 723.99 "UUU-447" 11721 Mirof Resources Inc. 2,493.09 "UUU-448" 11721 Mirof Resources Inc. 1 019.21 "UUU-449" 11721 Mirof Resources Inc. 796.86 "UUU-459 11721 Mirof Resources Inc. 1 746.22 "UUU-460 PKPOR000267769 Philippine Long Distance Telephone Co. 236.06 "UUU-461 PKPOR000267769 Philippine Long Distance Telephone Co. 160.71 "UUU-462 PKPOR000267769 Philippine Long Distance Telephone Co. 160.71 "UUU-463 PKPOR000267769 Philippine Long Distance Telephone Co. 160.71 "UUU-464 PKPOR000267769 Philippine Long Distance Telephone Co. 160.71 "UUU-465 PKPOR000267769 Philippine Long Distance Telephone Co. 160.71 "UUU-466 PKPOR000267769 Philippine Long Distance Telephone Co. 160.71 "UUU-467 PKPOR000267769 Philippine Long Distance Telephone Co. 160.71 "UUU-468 PKPOR000267769 Philippine Long Distance Telephone Co. 689.38 "UUU-469 PKPOR000267769 Philippine Long Distance Telephone Co. 689.38 "UUU-470 PKPOR000267769 Philippine Long Distance Telephone Co. 689.38 "UUU-471 PKPOR000267769 Philippine Long Distance Telephone Co. 689.38 "UUU-472 PKPOR000267769 Philippine Long Distance Telephone Co. 160.71 "UUU-473 PKPOR000267769 PhilipQine Long Distance Telephone Co. 160.71 "UUU-474 PKPOR000267769 Philippine Long Distance Telephone Co. 160.71 "UUU-475 PKPOR000263831 Philippine Long Distance Telephone Co. 960.00 "UUU-476 PKPOR000263836 Philippine Long Distance Telephone Co. 156.54 "UUU-477 PKPOR000263838 Philippine Long Distance Telephone Co. 174.01 "UUU-478 PKPOR000263817 Philippine Long Distance Telephone Co. 555.99 "UUU-479 PKPOR000263826 Philippine Long Distance Telephone Co. 151.09 "UUU-480 PKPOR000263828 Philippine Long Distance Telephone Co. 153.27 "UUU-481 PKPOR000263827 Philippine Long Distance Telephone Co. 153.27 "UUU-482 PKPOR000263829 Philippine Long Distance Telephone Co. 221.40 "UUU-483 PKPOR000263830 Philippine Long Distance Tei~Qhone Co. 521.73 "UUU-484 PKPOR000263823 Philippine Long Distance Telephone Co. 183.00 "UUU-485 PKPOR000263825 Philippine Long Distance Telephone Co. 151.09 "UUU-486 PKPOR000263818 Philippine Long Distance Telephone Co. 151.00 "UUU-487 PKPOR000263824 Philippine Long Distance Telephone Co. 153.27 "UUU-488 PKPOR000263822 Philippine Long Distance Telephone Co. 997.69 "UUU-489 PKPOR000263820 Philippine Long Distance Telephone Co. 394.71 "UUU-490 PKPOR000263837 Philippine Long Distance Telephone Co. 3 163.71 "UUU-491 PKPOR000263819 Philippine Long Distance Tel~phone Co. 151.09 "UUU-492 PKPOR000263835 Philippine Long Distance Telephone Co. 270.13 "UUU-493 PKPOR000263821 Philippine Long Distance Telephone Co. 163.09 "UUU-494 PKPOR000263833 Philippine Long Distance Telephone Co. 3 000.00 "UUU-495 PKPOR000263832 Philippine Long Distance Telephone Co. 298.28 PKPOR000263839 Philippine Long Distance Telephone Co. 187.09 204.79

ANNEXB AIR LiQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8529 & 8296 ADDITIONAL INPUT VAT DISALLOWANCES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit OR/Invoice/IEIRD No. Supplier Input VAT (In PhP) -- "UUU-496 PKPOR000263834 Philippine Long Distance Telephone Co. --- "UUU-552 3751 Veolia Water Solutions & Technologies (Phils) Ir 10.50 -- "UUU-553 3912 964.29 "UUU-558 8703 Veolia Water Solutions & Technol~es_(Phil~ !r 1,285.71 ~--� "UUU-599 8,139.21 "UUU-600 PKPOR000263862 Yokogawa Phils. Inc. 334.59 --- "UUU-601 PKPOR000263862 Philippine Long Distance Tel~hone Co. 188.33 "UUU-602 PKPOR000263862 Philippine Long Distance Tel~one Co. 122.06 "UUU-603 PKPOR000263862 Philippine Long Distance Tel~one Co. 1,085.66 "UUU-604 PKPOR000263851 Philippine Long Distance Telephone Co. 151.09 "UUU-605 PKPOR000263856 Philippine Long Distance Telephone Co. 180.69 "UUU-606 PKPOR000263857 Philippine Long Distance Telephone Co. 369.84 "UUU-607 PKPOR000263858 Philippine Long Distance Telephone Co. 160.53 "UUU-608 PKPOR000263849 Philippine Long Distance Tel~hone Co. 188.04 "UUU-609 PKPOR000263852 Philippine Long Distance Tel~hone Co. 151.09 "UUU-610 PKPOR000263854 Philippine Long Distance Telephone Co. 234.68 "UUU-611 PKPOR000263853 Philippine Long Distance Telephone Co. 157.63 "UUU-612 PKPOR000263850 Philippine Long Distance Telephone Co. 175.09 "UUU-613 PKPOR000263855 Philippine Long Distance Telephone Co. 213.69 "UUU-614 PKPOR000263859 Philippine Long Distance Telephone Co. 227.65 "UUU-623 PKPOR000263860 Philippine Long Distance TeiE!Qhone Co. 190.43 "UUU-624 AF#B40239/1270768 Philippine Long Distance TeiE!Qhone Co. 417.02 "UUU-625 AF#B40239/1270768 cargohaus Inc. 417.57 "UUU-629 AF#B40237/1261857 cargohaus Inc. 761.87 "UUU-630 AF#B40237/1261857 645.87 "UUU-631 AF#B40239/1270768 cargohaus Inc. 650.49 "UUU-632 AF#B40239/1270768 Teresita Malic Customs Broker 650.55 "UUU-633 AF#B41927/1269463 Teresita Malic Customs Broker 754.23 March AF#B41985/1261859 Teresita Malic Customs Broker 120.00 "UUU-643 Teresita Malic Customs Broker "UUU-644 Fritz Logistics Phils. Inc. 16 800.00 "UUU-645 14 280.00 "UUU-646 5190 carry-All International Forwarders Inc. "UUU-647 5190 carry-All International Forwarders Inc. 1 368.00 "UUU-648 5190 carry-All International Forwarders Inc. 1140.00 "UUU-656 5190 Carry-All International Forwarders Inc. 1 482.00 "UUU-704 5190 carry-All International Forwarders Inc. 1482.00 "UUU-705 5190 carry-All International Forwarders Inc. 5 586.00 "UUU-710 5187 carry-All International Forwarders Inc. 27,000.00 "UUU-715 1287 Dumalaog Construction Inc. 14,400.00 "UUU-716 17983 F.F. Cruz & Company 4,416.00 "UUU-728 66727 General Electric Phils. Inc. "UUU-734 5916 J-10 Incorporated 144.00 "UUU-735 3028 JSS Integrated Services Inc. 2,871.00 "UUU-736 0104862 Manila Water Company 15,992.40 "UUU-737 12323 Marco Inc. "UUU-738 2678 MH Poly-Eiectromechs Inc. 696.43 "UUU-739 2670 MH Poly-Eiectromechs Inc. 2,520.00 "UUU-740 10923 Mirof Resources Inc. 6,000.00 "UUU-741 19024 Mirof Resources Inc. 1,530.91 "UUU-742 19024 Mirof Resources Inc. "UUU-744 11128 Mirof Resources Inc. 796.83 "UUU-745 11128 Mirof Resources Inc. 1 787.52 "UUU-746 11128 Mirof Resources Inc. 5 929.22 "UUU-747 40757 Nalco Philippines Inc. 1 946.30 "UUU-752 40757 Nalco Philippines Inc. 1 992.02 "UUU-753 5332 Newton Electrical EquiQ_ment Co. Inc. 11 507.36 "UUU-754 5332 Newton Electrical Equipment Co. Inc. 11 507.36 "UUU-755 PKPOR000274740 Philippine Long Distance Telephone Co. 2 639.04 "UUU-756 PKPOR000274741 Philippine Long Distance Telephone Co. 6 333.60 "UUU-757 PKPOR000274742 Philippine Long Distance Telephone Co. "UUU-758 PKPOR000274743 Philippine Long Distance Telf:!Phone Co. 160.71 PKPOR000274744 Philippine Long Distance Tel~hone Co. 160.71 PKPOR000274745 Philippine Long Distance Tel~hone Co. 160.71 PKPOR000274746 PhiliPPine Long Distance Telephone Co. 160.71 160.71 160.71 160.71

AIR LIQUIDE PHILIPPINES, INC. ANNEXB -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8529 & 8296 Input VAT ADDmONAL INPUT VAT DISALLOWANCES PER THIS COURT'S FURTHER VERIFICATION (In PhP) FOR THE FIRST AND SECOND QUARTERS OF 2009 689.38 Exhibit OR/Invoice/IEIRD No. Supplier 689.38 689.38 "UUU-759 PKPOR000274749 Philippine Long Distance Telephone Co. 689.38 "UUU-760 PKPOR000274750 Philippine Long Distance Telephone Co. 160.71 "UUU-761 PKPOR000274751 Philippine Long Distance Telephone Co. 354.03 "UUU-762 PKPOR000274752 Philippine Long Distance Telephone Co. 206.33 "UUU-763 PKPOR000274747 Philippine Long Distance Telephone Co. 117.98 "UUU-764 PKPOR000274713 Philippine Long Distance Telephone Co. 1,077.98 "UUU-765 PKPOR000274714 Philippine Long Distance Telephone Co. 160.71 "UUU-766 PKPOR000274715 Philippine Long Distance Telephone Co. 160.71 "UUU-767 PKPOR000274716 Philippine Long Distance Telephone Co. 156.54 "UUU-768 PKPOR000274748 PhilipJ)ine Long Distance Telephone Co. 166.93 "UUU-769 PKPOR000274753 Philippine Long Distance Telephone Co. 691.67 "UUU-770 PKPOR000274731 Philippine Long Distance Telephone Co. 154.93 "UUU-771 PKPOR000274732 Philippine Long Distance Telephone Co. 153.27 "UUU-772 PKPOR000274735 Philippine Long Distance Telephone Co. 151.09 "UUU-773 PKPOR000274733 Philippine Long Distance Telephone Co. 153.27 "UUU-774 PKPOR000274730 Philippine Long Distance Telephone Co. 231.76 "UUU-775 PKPOR000274703 Philippine Long Distance TeleJ)hone Co. 193.63 "UUU-776 PKPOR000274736 Philippine Long Distance Telephone Co. 1 998.29 "UUU-777 PKPOR000274735 Philippine Long Distance Telephone Co. 538.35 "UUU-778 PKPOR000274708 Philippine Long Distance Telephone Co. 684.58 "UUU-779 PKPOR000274709 Philippine Long Distance Telephone Co. 174.54 "UUU-780 PKPOR000274710 Philippine Long Distance Telephone Co. 151.09 "UUU-781 PKPOR000274727 Philippine Long Distance Telephone Co. 172.68 "UUU-782 PKPOR000274701 Philippine Long Distance Telephone Co. 353.82 "UUU-783 PKPOR000274704 Philippine Long Distance Telephone Co. 156.54 "UUU-784 PKPOR000274728 Philippine Long Distance Telephone Co. 346.40 "UUU-785 PKPOR000274707 Philippine Long Distance Telephone Co. 179.05 "UUU-786 PKPOR000274705 Philippine Long Distance Telephone Co. 151.09 "UUU-787 PKPOR000274702 Philippine Long Distance Telephone Co. 151.09 "UUU-788 PKPOR000274706 Philippine Long Distance Telephone Co. 286.84 "UUU-789 PKPOR000274717 Philippine Long Distance Telephone Co. 1 062.11 "UUU-790 PKPOR000274729 Philippine Long Distance Telephone Co. 493.83 "UUU-791 PKPOR000274718 Philippine Long Distance Telephone Co. 4 023.47 "UUU-792 PKPOR000274719 Philippine Long Distance Telephone Co. 151.09 "UUU-793 PKPOR000274720 Philippine Long Distance Telephone Co. 203.47 "UUU-794 PKPOR000274724 Philippine Long Distance Telephone Co. 163.08 "UUU-795 PKPOR000274726 Philippine Long Distance Telephone Co. 3 000.00 "UUU-796 PKPOR000274721 Philippine Long Distance Telephone Co. 246.47 "UUU-797 PKPOR000274722 Philippine Long Distance Telephone Co. 176.59 "UUU-798 PKPOR000274725 Philippine Long Distance Telephone Co. 255.79 "UUU-799 PKPOR000274739 Philippine Long Distance Telephone Co. 241.34 "UUU-800 PKPOR000274738 Philippine Long Distance Telephone Co. 175.23 "UUU-801 PKPOR000274737 Philippine Long Distance Telephone Co. 960.00 "UUU-802 PKPOR000274712 Philippine Long Distance Telephone Co. 1 356.61 "UUU-803 PKPOR000274711 Philippine Long Distance Telephone Co. 2,292.47 "UUU-804 PKPOR000278701 Philippine Long Distance Telephone Co. 2 347.78 "UUU-818 Prime Mover Business Solutions Inc. 2 156.68 "UUU-819 0417 Prime Mover Business Solutions Inc. 1,407.64 "UUU-820 0417 Prime Mover Business Solutions Inc. 2,293.25 "UUU-821 0417 Prime Mover Business Solutions Inc. 1479.40 "UUU-822 0417 Prime Mover Business Solutions Inc. 2 142.86 "UUU-823 0417 Prime Mover Business Solutions Inc. 4 392.86 "UUU-824 0436 Prime Mover Business Solutions Inc. 1 285.71 "UUU-825 0436 R&F Electrical Services 2 125.61 "UUU-826 0064 R.C. Aviles Engineering & Motor Works 803.57 "UUU-827 3352 R.C. Aviles Engineering & Motor Works 5 329.18 "UUU-828 3352 R.C. Aviles Engineering & Motor Works 3 575.08 "UUU-829 3352 R.C. Aviles Engineering & Motor Works 589.29 "UUU-830 3353 R.C. Aviles Engineering & Motor Works 2 650.18 "UUU-831 3353 R.C. Aviles Engineering_ & Motor Works "UUU-832 3301 R.C. Aviles Engineering & Motor Works page 4 of 11 "UUU-833 3301 R.C. Aviles Enqineerinq & Motor Works 3301

AIR LIQUIDE PHILIPPINES, INC. ANNEXB -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8529 & 8296 Input VAT ADDmONAL INPUT VAT DISALLOWANCES PER THIS COURT'S FURTHER VERIFICATION (In PhP) FOR THE FIRST AND SECOND QUARTERS OF 2009 166.28 Exhibit OR/Invoice/IEIRD No. Supplier 938.52 166.29 "UUU-834 1084 Ropen Engineering & Supplies 673.01 "UUU-835 1084 Ropen Engineering & Supplies 214.29 "UUU-836 1092 Ropen Engineering & Supplies 850.50 "UUU-837 1092 Ropen Engineering & Supplies 662.44 "UUU-838 1092 Ropen Engineering & Su!Jplies 257.14 "UUU-839 1092 Ropen Engineering & Supplies 300.00 "UUU-840 1092 Ropen Engineering & Supplies "UUU-841 1092 Ropen Engineering & Supplies 83.14 "UUU-842 1092 Ropen Engineering & Supplies 213.83 "UUU-843 1092 Ropen Engineering & Supplies 1170.60 "UUU-844 1092 Ropen Engineering & Supplies 1 918.00 "UUU-865 1281967 Airfreight 2100 Inc. 20 412.67 "UUU-866 1281967 Airfreight 2100 Inc. "UUU-867 1270661 Airfreight 2100 Inc. 72.00 "UUU-868 1281970 Airfreight 2100 Inc. 17 678.57 "UUU-869 0342 Claveria Construction Co. 26 250.67 "UUU-870 0366 Claveria Construction Co. 5 880.00 "UUU-871 1687 Fairchild Process Controls 9,720.00 "UUU-876 616 Leadsteel Fabricators 16,210.00 "UUU-877 620 Leadsteel Fabricators "UUU-879 3440 R.C. Aviles Engineering & Motor Works 1,594.82 "UUU-880 3434 R.C. Aviles Engineering & Motor Works 6 428.57 "UUU-881 3302 R.C. Aviles Engineering & Motor Works 1 820.36 "UUU-882 3362 R.C. Aviles Engineering & Motor Works 21428.57 "UUU-883 3362 R.C. Aviles Engineering & Motor Works (6 428.57) "UUU-884 3438 R.C. Aviles Engineering & Motor Works 6 495.84 "UUU-885 1090 Ropen Engineering & Supplies 1 853.62 "UUU-886 2338 Tork Philippines Inc. 32 764.10 "UUU-887 27296 U-Ocean Inc. 12 779.26 "UUU-891 512 Amther Cooling System Co. Inc. 6 669.59 "UUU-893 0244 BP Industrial Supplies and Services Inc. "UUU-894 0244 BP Industrial Supplies and Services Inc. 660.00 "UUU-895 1281778 Airfreight 2100 Inc. 1 071.43 "UUU-896 51133 C.B. Barangay Enterprises "UUU-904 0357 Claveria Construction Co. 282.60 "UUU-905 0337 Claveria Construction Co. 16 560.00 "UUU-906 0359 Claveria Construction Co. 3 337.50 "UUU-907 0359 Claveria Construction Co. 149 296.63 "UUU-908 0358 Claveria Construction Co. 3 908.57 "UUU-909 1666 Fairchild Process Controls 1 604.57 "UUU-910 1098 Ropen Engineering & Supplies 3 337.50 "UUU-911 52789 SKF Philippines Inc. 27 264.00 "UUU-932 AF#B50390/1281969 Teresita Malic Customs Broker 11 286.00 "UUU-933 AF#B49511/1281968 Teresita Malic Customs Broker 3 234.00 Subtotal 636.00 Second Quarter of 2009 1 461.71 802,423.62 April 1,608 790.26 "UUU-1019 781129401-b Manila Electric Company 2.18 Philippine Long Distance Telephone Co. "UUU-1033 PKPOR000285227 Philippine Long Distance Telephone Co. 160.71 Philippine Long Distance Telephone Co. 160.71 "UUU-1034 PKPOR000285245 Philippine Long Distance Telephone Co. 160.71 Philippine Long Distance Telephone Co. 160.71 "UUU-1035 PKPOR000285246 PhiliQpine Long Distance Telephone Co. 160.71 Philippine Long Distance Telephone Co. 160.71 "UUU-1036 PKPOR000285247 Philippine Long Distance Telephone Co. 160.71 Philippine Long Distance Telephone Co. 689.38 "UUU-1037 PKPOR000285248 Philippine Long Distance Telephone Co. 689.38 Philippine Long Distance Telephone Co. 689.38 "UUU-1038 PKPOR000285249 Philippine Long Distance Telephone Co. 689.38 Philippine Lono Distance Telephone Co. 160.71 "UUU-1039 PKPOR000285250 "UUU-1040 PKPOR000285251 "UUU-1041 PKPOR000285257 "UUU-1042 PKPOR000285254 "UUU-1043 PKPOR000285255 "UUU-1044 PKPOR000285256 "UUU-1045 PKPOR000285252

AIR LIQUIDE PHILIPPINES, INC. ANNEX B -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8529 & 8296 Input VAT ADDmONAL INPUT VAT DISALLOWANCES PER THIS COURT'S FURTHER VERIFICATION (In PhP) FOR THE FIRST AND SECOND QUARTERS OF 2009 412.71 Exhibit OR/Invoice/IEIRD No. Supplier 181.91 112.70 "UUU-1046 PKPOR000285217 Philippine Long Distance Telephone Co. 1,072.37 160.71 "UUU-1047 PKPOR000285218 Philippine Long Distance Telephone Co. 160.71 156.54 "UUU-1048 PKPOR000285219 Philippine Long Distance Telephone Co. 166.38 736.76 "UUU-1049 PKPOR000285220 Philippine Long Distance Telephone Co. 151.09 153.27 "UUU-1050 PKPOR000285253 Philippine Long Distance Telephone Co. 151.09 153.27 "UUU-1051 PKPOR000285258 Philippine Long Distance Telephone Co. 173.71 309.17 "UUU-1052 PKPOR000285209 Philippine Long Distance Telephone Co. 174.54 332.07 "UUU-1053 PKPOR000285236 Philippine Long Distance Telephone Co. 675.72 174.54 "UUU-1054 PKPOR000285238 Philippine Long Distance Telephone Co. 151.69 179.85 "UUU-1055 PKPOR000285237 Philippine Long Distance Telephone Co. 316.91 156.54 "UUU-1056 PKPOR000285234 Philippine Long Distance Telephone Co. 231.02 206.71 "UUU-1057 PKPOR000285208 Philippine Long Distance Telephone Co. 151.09 151.09 "UUU-1058 PKPOR000285240 Philippine Long Distance Telephone Co. 236.32 944.04 "UUU-1059 PKPOR000285239 Philippine Long Distance Telephone Co. 574.62 3,625.34 "UUU-1060 PKPOR000285212 Philippine Long Distance Telephone Co. 151.09 154.09 "UUU-1061 PKPOR000285205 Philippine Long Distance Telephone Co. 167.85 3 000.00 "UUU-1062 PKPOR000285214 Philippine Long Distance Telephone Co. 237.34 960.00 "UUU-1063 PKPOR000285231 Philippine Long Distance Telephone Co. 235.60 158.59 "UUU-1064 PKPOR000285213 Philippine Long Distance Telephone Co. 279.19 175.51 "UUU-1065 PKPOR000285207 Philippine Long Distance Telephone Co. 216.64 177.18 "UUU-1066 PKPOR000285232 Philippine Long Distance Telephone Co. 147.77 431.20 "UUU-1067 PKPOR000285211 Philippine Long Distance Telephone Co. 88.37 207.12 "UUU-1068 PKPOR000285235 Philippine Long Distance Telephone Co. 377.57 85.71 "UUU-1069 PKPOR000285206 Philippine Long Distance Telephone Co. 85.71 78.40 "UUU-1070 PKPOR000285210 Philippine Long Distance Telephone Co. 192.86 459.05 "UUU-1071 PKPOR000285221 Philippine Long Distance Telephone Co. 85.71 111.18 "UUU-1072 PKPOR000285230 Philippine Long Distance Telephone Co. 85.71 195.37 "UUU-1073 PKPOR000285222 Philippine Long Distance Telephone Co. 120.20 85.71 "UUU-1074 PKPOR000285223 Philippine Long Distance Telephone Co. 354.90 138.98 "UUU-1075 PKPOR000285224 Philippine Long Distance Telephone Co. 133.99 "UUU-1076 PKPOR000285228 Philippine Long Distance Telephone Co. page 6 of 11 "UUU-1077 PKPOR000285233 Philippine Long Distance Telephone Co. "UUU-1078 PKPOR000285225 Philippine Long Distance Telephone Co. "UUU-1079 PKPOR000285226 Philippine Long Distance Telephone Co. "UUU-1080 PKPOR000285229 Philippine Long Distance Telephone Co. "UUU-1081 PKPOR000285215 Philippine Long Distance Telephone Co. "UUU-1082 PKPOR000285241 Philippine Long Distance Telephone Co. "UUU-1083 PKPOR000285244 Philippine Long Distance Telephone Co. "UUU-1084 PKPOR000285243 Philippine Long Distance Telephone Co. "UUU-1085 PKPOR000285242 Philippine Long Distance Telephone Co. - "UUU-1086 PKPOR000285216 Philippine Long Distance Telephone Co. "UUU-1109 sbrchrOOOO 17891 Smart Communications Inc. "UUU-1110 sbrchrOOOO 17892 Smart Communications Inc. "UUU-1111 sbrchr000017892 Smart Communications Inc. "UUU-1112 sbrchr000017892 Smart Communications Inc. "UUU-1113 sbrchr000017892 Smart Communications Inc. "UUU-1114 sbrchr000017892 Smart Communications Inc. "UUU-1115 sbrchr000017892 Smart Communications Inc. "UUU-1116 sbrchr000017892 Smart Communications Inc. "UUU-1117 sbrchr000017892 Smart Communications Inc. "UUU-1118 sbrchr000017892 Smart Communications Inc. "UUU-1119 sbrchr000017893 Smart Communications Inc. "UUU-1120 sbrchr000017893 Smart Communications Inc. "UUU-1121 sbrchr000017893 Smart Communications Inc. "UUU-1122 sbrchr000017893 Smart Communications Inc. "UUU-1123 sbrchr000017893 Smart Communications Inc. "UUU-1124 sbrchrOOOO 17893 Smart Communications Inc. "UUU-1125 sbrchr000017893 Smart Communications Inc. "UUU-1126 sbrchr000017893 Smart Communications Inc. "UUU-1127 sbrchr000017893 Smart Communications Inc. "UUU-1128 sbrchr000017893 Smart Communications Inc. "UUU-1129 sbrchr000017893 Smart Communications Inc.

AIR LIQUIDE PHILIPPINES, INC. ANNEXB -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8529 & 8296 Input VAT ADDITIONAL INPUT VAT DISALLOWANCES PER THIS COURT'S FURTHER VERIFICATION (In PhP) FOR THE FIRST AND SECOND QUARTERS OF 2009 101.98 Exhibit OR/Invoice/IEIRD No. Supplier 53.57 212.14 "UUU-1130 sbrchr000017893 Smart Communications Inc. 212.14 "UUU-1131 sbrchr000017893 Smart Communications Inc. "UUU-1179 Smart Broadband Inc. 34.80 "UUU-1180 0009 Smart Broadband Inc. 2,996.97 May 0009 "UUU-1235 DHL Express (Phils) Corp. 34.80 "UUU-1237 1372548 DHL Express (Phils) Corp. 3,065.77 "UUU-1241 1309836 DHL Express (Phils} Corp. 1,700.21 "UUU-1242 1372549 DHL Express (Phils} Corp. 1 624.87 "UUU-1243 1372549 DHL Express (Phils) Corp. "UUU-1244 1372549 DHL Express (Phils) Corp. 589.29 "UUU-1248 1372549 E.M.I.S. Corporation 1 550.88 "UUU-1249 E.M.I.S. Corporation 3,252.89 "UUU-1250 5399 E.M.I.S. Corporation 2,425.42 "UUU-1251 5399 Eco Triangle Microsystems Co. Inc. 5,280.00 "UUU-1263 5399 Instrumentation & Control Specialist Inc. 22,899.02 "UUU-1271 10387 Manila Water Company "UUU-1289 10333 Philippine Long Distance Telephone Co. 160.71 "UUU-1290 0105709 Philippine Long Distance Telephone Co. 160.71 "UUU-1291 PKPOR000298111 Philippine Long Distance Telephone Co. 160.71 "UUU-1292 PKPOR000298111 Philippine Long Distance Telephone Co. 160.71 "UUU-1293 PKPOR000298111 Philippine Long Distance Telephone Co. 160.71 "UUU-1294 PKPOR000298111 Philippine Long Distance Telephone Co. 160.71 "UUU-1295 PKPOR000298111 Philippine Long Distance Telephone Co. 160.71 "UUU-1296 PKPOR000298111 Philippine Long Distance Telephone Co. 689.38 "UUU-1297 PKPOR000298111 Philippine Long Distance Telephone Co. 689.38 "UUU-1298 PKPOR000298111 Philippine Long Distance Telephone Co. 689.38 "UUU-1299 PKPOR000298111 Philippine Long Distance Telephone Co. 689.38 "UUU-1300 PKPOR000298111 Philippine Long Distance Telephone Co. 160.71 "UUU-1301 PKPOR000298111 Philippine Long Distance Telephone Co. 270.05 "UUU-1302 PKPOR000298111 Philippine Long Distance Telephone Co. 155.30 "UUU-1303 PKPOR000298111 Philippine Long Distance Telephone Co. 112.37 "UUU-1304 PKPOR000298111 Philippine Long Distance Telephone Co. 1 072.37 "UUU-1305 PKPOR000298111 Philippine Long Distance Telephone Co. 160.71 "UUU-1306 PKPOR000298111 Philippine Long Distance Telephone Co. 160.71 "UUU-1307 PKPOR000298111 Philippine Long Distance Telephone Co. 169.22 "UUU-1308 PKPOR000298111 Philippine Long Distance Telephone Co. 168.88 "UUU-1309 PKPOR000292517 Philippine Long Distance Telephone Co. 897.23 "UUU-1310 PKPOR000292518 Philippine Long Distance Telephone Co. 151.09 "UUU-1311 PKPOR000292520 Philippine Long Distance Telephone Co. 153.27 "UUU-1312 PKPOR000292519 Philippine Long Distance Telephone Co. 151.09 "UUU-1313 PKPOR000292522 Philippine Long Distance Telephone Co. 153.27 "UUU-1314 PKPOR000292493 Philippine Long Distance Telephone Co. 212.42 "UUU-1315 PKPOR000292516 Philippine long Distance Telephone Co. 231.68 "UUU-1316 PKPOR000292521 Philippine Long Distance Telephone Co. 174.54 "UUU-1317 PKPOR000292598 Philippine Long Distance Telephone Co. 260.13 "UUU-1318 PKPOR000292599 Philippine Long Distance Telephone Co. 523.27 "UUU-1319 PKPOR000292500 Philippine long Distance Telephone Co. 174.54 "UUU-1320 PKPOR000292513 Philippine Long Distance Telephone Co. 151.09 "UUU-1321 PKPOR000292591 Philippine Long Distance Telephone Co. 173.85 "UUU-1322 PKPOR000292594 Philippine Long Distance Telephone Co. 404.96 "UUU-1323 PKPOR000292514 Philippine Long Distance Telephone Co. 156.54 "UUU-1324 PKPOR000292597 Philippine long Distance Telephone Co. 230.07 "UUU-1325 PKPOR000292595 Philippine long Distance Telephone Co. 182.03 "UUU-1326 PKPOR000292592 Philippine long Distance Telephone Co. 151.09 "UUU-1327 PKPOR000292596 Philippine Long Distance Telephone Co. 151.09 "UUU-1328 PKPOR000292503 Philippine Long Distance Telephone Co. 181.91 "UUU-1329 PKPOR000292512 Philippine Long Distance Telephone Co. 1 229.75 "UUU-1330 PKPOR000292504 Philippine Long Distance Telephone Co. 637.08 "UUU-1331 PKPOR000292505 Philippine Long Distance Telephone Co. 4 055.64 "UUU-1332 PKPOR000292506 Philippine Long Distance Telephone Co. 151.09 "UUU-1333 PKPOR000292510 Philippine Long Distance Telephone Co. 169.09 PKPOR000292515 PKPOR000292507 page 7 of 11

AIR LIQUIDE PHILIPPINES, INC. ANNEXB -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8529 & 8296 Input VAT ADDITIONAL INPUT VAT DISALLOWANCES PER THIS COURT'S FURTHER VERIFICATION (In PhP) FOR THE FIRST AND SECOND QUARTERS OF 2009 161.99 -- Exhibit OR/Invoice/IEIRD No. Supplier 3 000.00 "UUU-1334 PKPOR000292508 Philippine Long Distance Telephone Co. 326.92 "UUU-1335 PKPOR000292511 Philippine Long Distance Telephone Co. 157.09 "UUU-1336 PKPOR00029250 1 Philippine Long Distance Telephone Co. 231.83 "UUU-1337 PKPOR000292524 Philippine Long Distance Telephone Co. 266.86 "UUU-1338 PKPOR000292523 Philippine Long Distance Telephone Co. 215.89 "UUU-1339 PKPOR000292502 Philippine Long Distance Telephone Co. 150.00 "UUU-1366 Top Rigid Industrial Safety Supply Inc. "UUU-1367 23756 Top Rigid Industrial Safety Supply Inc. 38 619.41 23757 1.50 June "UUU-1461 0105876 Manila Water Company 620.89 "UUU-1466 PKPOR000307341 Philippine Long Distance Telephone Co. 148.37 "UUU-1467 PKPOR000307331 Philippine Long Distance Telephone Co. 112.37 "UUU-1468 PKPOR000307332 Philippine Long Distance Telephone Co. 1,072.37 "UUU-1469 PKPOR000307333 Philippine Long Distance Telephone Co. 223.61 "UUU-1470 PKPOR000307334 Philippine Long Distance Telephone Co. 163.09 "UUU-1471 PKPOR000307349 Philippine Long Distance Telephone Co. 716.74 "UUU-1472 PKPOR000307350 Philippine Long Distance Telephone Co. 151.09 "UUU-1473 PKPOR000307352 Philippine Long Distance Telephone Co. 153.27 "UUU-1474 PKPOR000307351 Philippine Long Distance Telephone Co. 151.09 "UUU-1475 PKPOR000307346 Philippine Long Distance Telephone Co. 153.27 "UUU-1476 PKPOR000307335 Philippine Long Distance Telephone Co. 234.90 "UUU-1477 PKPOR000307354 Philippine Long Distance Telephone Co. 174.54 "UUU-1478 PKPOR000307353 Philippine Long Distance Telephone Co. 176.04 "UUU-1479 PKPOR000307326 Philippine Long Distance Telephone Co. 299.25 "UUU-1480 PKPOR000307327 Philippine Long Distance Telephone Co. 262.55 "UUU-1481 PKPOR000307328 Philippine Long Distance Telephone Co. 194.04 "UUU-1482 PKPOR000307345 Philippine Long Distance Telephone Co. 151.09 "UUU-1483 PKPOR000307346 Philippine Long Distance Telephone Co. 153.27 "UUU-1484 PKPOR000307322 Philippine Long Distance Telephone Co. 252.10 "UUU-1485 PKPOR000307348 Philippine Long Distance Telephone Co. 156.54 "UUU-1486 PKPOR000307325 Philippine Long Distance Telephone Co. 249.06 "UUU-1487 PKPOR000307323 Philippine Long Distance Telephone Co. 173.99 "UUU-1488 PKPOR0003073 Philippine Long Distance Telephone Co. 151.09 "UUU-1489 PKPOR0003073 Philippine Long Distance Telephone Co. 151.09 "UUU-1490 PKPOR0003073 Philippine Long Distance Telephone Co. 156.27 "UUU-1491 PKPOR0003073 Philippine Long Distance Telephone Co. 1,114.28 "UUU-1492 PKPOR0003073 PhiliQpine Long Distance Telephone Co. 443.77 "UUU-1493 PKPOR0003073 PhilipQine Long Distance Telephone Co. 5,014.61 "UUU-1494 PKPOR0003073 Philippine Long Distance Tel~hone Co. 151.09 "UUU-1495 PKPOR0003073 Philippine Long Distance Telephone Co. 208.09 "UUU-1496 PKPOR0003073 Philippine Long Distance Telephone Co. 167.33 "UUU-1497 PKPOR0003073 Philippine Long Distance Telephone Co. 3 000.00 "UUU-1498 PKPOR0003073 Philippine Long Distance Telephone Co. 309.71 "UUU-1499 PKPOR0003073 Philippine Long Distance Telephone Co. 240.19 "UUU-1500 PKPOR0003073 Philippine Long Distance Telephone Co. 194.73 "UUU-1501 PKPOR0003073 Philip!)ine Long Distance Telephone Co. 305.59 "UUU-1502 PKPOR0003073 Philippine Long Distance Telephone Co. 158.41 "UUU-1503 PKPOR0003073 Philippine Long Distance Telephone Co. 53.76 "UUU-1504 PKPOR0003073 Philippine Long Distance Telephone Co. 53.76 "UUU-1506 Philippine International Insurance Broker Inc. 53.76 "UUU-1507 43414 Philippine International Insurance Broker Inc. 60.00 "UUU-1508 43414 Philippine International Insurance Broker Inc. 1,338.11 "UUU-1509 43414 Philippine International Insurance Broker Inc. 225.94 "UUU-1536 43414 DHL Express (Phils) CorQ. 212.14 "UUU-1538 1372876 Philippine International Insurance Broker Inc. 636.48 "UUU-1544 43413 Smart Broadband Inc. 564.00 "UUU-1546 6455 Teresita Malic Customs Broker "UUU-1547 AF#4000001044/1306987 Teresita Malic Customs Broker ~762,443.30 AF#4000003548/1306985 Subtotal 2,564 866.92 Total

ANNEXB AIR LIQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8529 & 8296 ADDMONAL INPUT VAT DISALLOWANCES PER THIS COURT'S FURT-HER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit OR/Invoice/IEIRD No. Supplier Input VAT (In PhP) 2) Input VAT on domestic purchases of goods other than capital goods supported by VAT invoices but the VAT was not separately indicated First Quarter of 2009 6215 R.C. Aviles Engineering & Motor Works 3 890.57 January 3679 Realsan Enterprises Mf4 & Gen. Mdse. 150.00 231.43 "UUU-1563" 17079 Handog Industrial Gases Distributors Inc. "UUU-1565" 4,272.00 February "UUU-1592" 9,312.42 Subtotal 9,312.42 13,584.42 Second Quarter of 2009 May "UUU-1847" 1053 Resources Consolidated Int'l Tradil'lfl Inc. Subtotal Total 3) Input VAT on domestic purchases of services supported by documents other than VAT official receipts (ORs) First Quarter of 2009 January "UUU-120" 3119013515516 Manila Electric Compal'lY_ 1 545,398.77 Smart Broadband Inc. 212.14 "UUU-231" 52743 TNT Express WorldwidelPhil~ Inc. 1,638.27 February Smart Broadband Inc. 212.14 >------- "UUU-537" 060395 Smart Communications Inc. 192.95 Smart Communications Inc. 85.71 -- March Smart Communications Inc. -- Smart Communications Inc. 57.63 "UUU-845 BBECHR000000689 Smart Communications Inc. 256.36 ------- Smart Communications Inc. 85.71 - "UUU-846 SBECHR000012882 Smart Communications Inc. 160.21 Smart Communications Inc. 144.65 "UUU-847 SBECHR000012882 Smart Communications Inc. 135.72 Smart Communications Inc. 146.12 "UUU-848 SBECHR000012882 Smart Communications Inc. 244.40 Smart Communications Inc. 270.33 "UUU-849 SBECHR000012881 Smart Communications Inc. 192.86 Smart Communications Inc. 100.32 "UUU-850 SBECHR000012881 Smart Communications Inc. 129.98 Smart Communications Inc. 220.99 "UUU-851 SBECHR000012881 TNT Express Worldwide _(Philsl Inc. 173.87 TNT Express Worldwide (Phils) Inc. 685.08 "UUU-852 SBECHR000012881 TNT Express Worldwide (Phils) Inc. 55.66 TNT Express Worldwide_(Phils) Inc. 87.96 "UUU-853 SBECHR000012881 TNT Express WorldwideJPhils} Inc. 1 349.87 TNT Express Worldwide_(Philsl Inc. 45.96 "UUU-854 SBECHR000012881 TNT Express Worldwide_(Philsl Inc. 595.59 TNT Express Worldwide (Phils) Inc. 1,873.38 "UUU-855 SBECHR000012881 (15.69' Mary Jane B. Nebres 1,554,736.94 "UUU-856 SBECHR000012881 Mary Jane B. Nebres Smart Communications Inc. 847.06 "UUU-857 SBECHR000012881 847.06 267.68 "UUU-858 SBECHR000012881 "UUU-859 SBECHR000012881 "UUU-860 SBECHR000012881 "UUU-861 SBECHROOOO 12881 "UUU-862 060394 "UUU-863 060394 "UUU-864 060394 "UUU-912 060396 "UUU-913 060396 "UUU-914 060396 "UUU-915 060396 "UUU-916 060396 Subtotal Second Quarter of 2009 May "UUU-1272 237DMCE3 "UUU-1273 237DMCE3 "UUU-1415 SBECHR000021497

ANNEXB AIR LIQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8529 & 8296 ADDMONAL INPUT VAT DISALLOWANCES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit OR/Invoice/IEIRD No. Supplier Input VAT (In PhP) "UUU-1416 SBECHR000021497 Smart Communications Inc. "UUU-1417 SBECHR000021497 Smart Communications Inc. 85.71 "UUU-1418 SBECHR000021497 Smart Communications Inc. 199.00 "UUU-1419 SBECHR000021497 Smart Communications Inc. 192.86 "UUU-1420 SBECHR000021497 Smart Communications Inc. 102.90 "UUU-1421 SBECHR000021497 Smart Communications Inc. 85.71 "UUU-1422 SBECHR000021497 Smart Communications Inc. 604.42 "UUU-1423 SBECHR000021497 Smart Communications Inc. 253.68 "UUU-1424 SBECHR000021497 Smart Communications Inc. 671.74 "UUU-1425 SBECHR000021497 Smart Communications Inc. 163.33 "UUU-1426 SBECHR003024477 Smart Communications Inc. 117.90 "UUU-1427 SBECHR003024477 Smart Communications Inc. 540.58 "UUU-1428 SBECHR003024477 Smart Communications Inc. 85.71 "UUU-1429 SBECHR003024477 Smart Communications Inc. 127.74 "UUU-1430 SBECHR003024477 Smart Communications Inc. 85.71 "UUU-1431 SBECHR003024477 Smart Communications Inc. 86.25 "UUU-1432 SBECHR003024477 Smart Communications Inc. 192.86 "UUU-1433 SBECHR003024477 Smart Communications Inc. 224.77 "UUU-1434 SBECHR003024477 Smart Communications Inc. 449.06 "UUU-1435 SBECHR003024477 Smart Communications Inc. 220.08 "UUU-1436 SBECHR003024477 Smart Communications Inc. 102.11 June 127.68 "UUU-1459 0039378 Manila Electric Company Subtotal 1,759,501.72 1,766,183.32 Total 3,320,920.26 4) Input VAT on domestic purchases of goods supported by documents other than VAT invoices Second Quarter of 2009 May "UUU-1954" 6438 R.C. Aviles Engineering & Motor Works 4,650.11 R.C. Aviles Engineering & Motor Works 1,530.00 "UUU-1955" 6441 R.C. Aviles Engineering & Motor Works 3,856.89 10,037.00 "UUU-1956" 6453 25 800.00 Total 2 508.78 5) .Lnpu-.: VAl on ........,...,nlc pur or caplutl gooas lng P'l.MIIIIun 5Ut-ll""'' ..,.... 28,308.78 by documents other than VAT invoices First Quarter of 2009 1922 Fairchiled Process Controls January 7919 Officelux Interior "UUU-1984" "UUU-1985" Total 6) Input VAT on domestic purchase of services supported by undated official receipt First Quarter of 2009 1905 Fairchild Process Controls 8,676.00 January "UUU-296" 7) Input VAT on domestic purchases of goods other than capital goods supported by invoices not dated within the period of claim First Quarter of 2009 120720 Adecs International Corp. 543.21 January "UUU-1549"

ANNEXB AIR LIQUIDE PHILIPPINES, INC. -versus- COMMISSIONER OF INTERNAL REVENUE CTA CASE NOS. 8529 & 8296 ADDmONAL INPUT VAT DISALLOWANCES PER THIS COURT'S FURTHER VERIFICATION FOR THE FIRST AND SECOND QUARTERS OF 2009 Exhibit OR/InvoicejiEIRD No. Supplier Input VAT (In PhP) "UUU-1550" 120721 Adecs International Corp. "UUU-1551" 121603 Adecs International Corp. 2,286.98 "UUU-1556" 13742 Akkad Corporation 261.00 "UUU-1557" 13743 Akkad Corporation 964.29 "UUU-1560" 29463 Atom Chemical Company 803.57 February "UUU-1579" 806181 Atlas Copco (Philippines) Inc. 19 821.60 Total 520.08 25,200.73 8) Input VAT on importation of goods other than capital goods supported only by BOC IEIRDs which do not reflect an entry date and/or machine validation for the -- amount of customs duties and taxes paid - First Quarter of 2009 January "VW-59" 94951954 Bureau of Customs 82 211.00 "VW-60" 93138412 Bureau of Customs 88 453.00 "VW-61" 94957601 Bureau of Customs 693 425.00 February "VW-62" 94357787 Bureau of Customs 25 060.00 "VW-63" 94281336 Bureau of Customs 48 822.00 "VW-64" 94289632 Bureau of Customs 64 379.00 "VW-65" 94951875 Bureau of Customs 74 447.00 "VW-66" 95331923 Bureau of Customs 549 165.00 "VW-67" 94736713 Bureau of Customs 26 022.00 "VW-68" 94736591 Bureau of Customs 16 544.00 March "VW-69" 94951875 CA Logistics Corporation 21 427.00 "VW-72" 94951893 Bureau of Customs 73 131.00 "VW-73" 94951902 Bureau of Customs 74 170.00 "VW-74" 94951927 Bureau of Customs 85 931.00 "VW-75" 96040971 Bureau of Customs 58 421.00 Subtotal 1,981,608.00 Second Quarter of 2009 April "VW-76" 96537201 Bureau of Customs 22 336.00 Bureau of Customs 79 101.00 "VW-77" 96358017 Bureau of Customs 91 698.00 "VW-78" 96358044 Bureau of Customs 53,494.00 Bureau of Customs 70,809.00 May Bureau of Customs 95,524.00 Bureau of Customs 106,379.00 "VW-80" 97511802 Bureau of Customs 45,606.00 "VW-81" 96357965 Bureau of Customs 67 169.10 Bureau of Customs 76 706.00 "VW-82" 96357956 Bureau of Customs 90 506.00 Bureau of Customs 199 019.00 "VW-83" 96358001 9981347.10 June ---- "VW-85" 98255604 98255595 r-- "VW-86" 98255674 "VW-87" "VW-88" 98255656 "VW-89" 97513412 Subtotal Total 2,979,955.10 Grand Total -Additional Input VAT Disallowances Per This Court's Further Verifica 8,951,549.21

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