ARMADILLO HOLDINGS, INC. v. COMMISSIONER OF INTERNAL REVENUE

Republic of the Philippines COURT OF TAX APPEALS Quezon City FIRST DIVISION ARMADILLO HOLDINGS, INC., CTA Case No. 8323 Petitioner, For: Assessment -versus- Members: COMMISSIONER OF DEL ROSARIO, PJ, Chairperson INTERNAL REVENUE, UY, and MINDARO-GRULLA, JJ. Respondent. MINDARO-GRULLA, !_.: This resolves the Petition For Review filed by Armadillo Holdings, Inc., as petitioner, against the Commissioner of Internal Revenue (CIR), as respondent, for the Court in Division, pursuant to Section 7 (a) (1) of Republic Act (RA) No. 1125, An Act Creating the Court of Tax Appeals, as am e n ded 1 as well as Rule 4, Section 3 (a) (1), in relation to , Rule 8, Section 4(a), of the Revised Rules of the Court of Tax Appeals (RRCTAf.( 1 Sec. 7. Jurisdiction. - The CTA shall exercise: (a) Exclusive appellate jurisdiction to review by appeal, as herein provided: XXX XXX (1) Decisions of the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue; XXX XXX 2 Rule 4. Sec. 3. Cases within the jurisdiction of the Court in Division. - The Court in Division shall exercise: (a) Exclusive original over or appellate jurisdiction to review by appeal the following: XXX XXX

CTA Case No. 8323 Page 2 Armadillo Holdings, Inc. vs. CIR DECISION Petitioner seeks the cancellation of Assessment Notice Nos. IT-LA1048-07-11-0179, VT-LA1048-07-11-0179, and WE-LA1048-07-11-0179 assessing Armadillo Holdings, Inc. in the total amount of Twenty-Nine Million Seven Hundred Thirty Thousand Five Hundred Sixty-Three and 80/100 Pesos (P29, 730,563.80), allegedly representing its deficiency taxes for taxable year 2007. Petitioner Armadillo Holdings, Inc. is a domestic corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with principal office at 770 E. Rodriguez Extension, Malibay, Pasay City. It is primarily engaged in the business of investing funds in commercial, industrial, financial, and real estate management enterprises as well as in other corporation, foreign and domestic, within the limits provided by law. 3 Respondent Commissioner of Internal Revenue is the chief of the Bureau of Internal Revenue (BIR), the government agency officially responsible for the assessment and collection of all national internal revenue taxes, fees and charges and the enforcement of all forfeitures, penalties and fines connected with such taxes. She holds office at the BIR National Office Building, Agham Road, Diliman, Quezon City.(. (1) Decisions of the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue; XXX XXX Rule 8. Sec. 4. Where to appeal; mode of appeal. - (a) An Appeal from a decision or ruling or the inaction of the Commissioner of Internal Revenue on disputed assessments or claim for refund of internal revenue taxes erroneously or illegally collected; the decision or ruling of the Commissioner of Customs, the Secretary of Finance, the Secretary of Trade & Industry, the Secretary of Agriculture, and the Regional Trial Court in the exercise of their original jurisdiction, shall be taken to the Court by filing before it a petition for review as provided in Rule 42 of the Rules of Court. The Court in Division shall act on the appeal. 3 Par. 1, Stipulation of Facts, Joint Stipulation of Facts and Simplification of Issues (JSFI), Docket, p. 154.

CTA Case No. 8323 Page 3 Armadillo Holdings, Inc. vs. CIR DECISION Respondent issued Letter of Authority (LOA) No. 2007- 000010484 on July 29, 2008, authorizing Revenue Officer Marilan Dela Cruz under the supervision of Group Supervisor Rebecca Victoria Martinez of Revenue District Office (RDO) No. 51 - Revenue Region No. 8 to examine petitioner's internal revenue taxes for the period from January 1, 2007 to December 31, 2007.5 Respondent issued a Revalidation/Reassignment Notice6 on May 25, 2009, informing petitioner that a newly assigned revenue examiner, Revenue Officer Liza C. Dimaya, is replacing Revenue Officer Marilan Dela Cruz to continue the examination of petitioner's taxes for the taxable year 2007. 7 After the Revenue Officer conducted her examination on the records of petitioner, which included the duly filed tax returns, books and other accounting records of petitioner, she submitted her Post Reporting Notice dated October 12, 2009 that found petitioner liable for alleged deficiency internal revenue taxes for the taxable year 2007 in the total amount of P40,226,827.33, including increments, to wit: 8 TAX TYPE BASIC INTEREST COMPROMISE TOTAL PENALTY Income Tax p 17,248 695.16 p 5 174 608.55 p 25 000.00 p 22 448 303.71 Value-added Tax 13,150 758.38 4 602 765.38 25,000.00 17 778,523.62 TOTAL P40,226,827 .33 Petitioner received an undated Revised Post Reporting Notice9 of respondent on December 16, 2010 with the revised assessment of the deficiency internal revenue taxes in the amount of P28,958,752.86, including increments, as follows: 10C 4 Exhibit "B". 5 Par. 3, Stipulation of Facts, JSFSI, Docket, p . 155. 6 Exhibit "C". 7 Par. 4, Stipulation of Facts, JSFSI, Docket, p. 155. 8 Par. 5, Stipulation of Facts, JSFSI, Docket, p. 155. 9 Exhibit "E". 10 Par. 6, Stipulation of Facts, JSFSI, Docket, p. 156.

CTA Case No. 8323 Page 4 Armadillo Holdings, Inc. vs. CIR DECISION TAX TYPE BASIC SURCHARGE INTEREST TOTAL Income Tax p 14 153,782.11 - p 7 507 321.14 p 21 661 103.25 Value-added Tax 4 612,365.10 - 2 651162.21 7 263 527.31 Expanded Withholdinq Tax 34,122.30 - - 34,122.30 TOTAL P28,958,752.86 Despite the series of informal discussions on the position of herein petitioner on the above-mentioned assessments, respondent still issued a Preliminary Assessment Notice11 (PAN) dated December 28, 2010 with alleged deficiency taxes, inclusive of interest and compromise penalties in the total amount of P29,339,106.63, broken down as follows: 12 TAX TYPE BASIC SURCHARGE INTEREST TOTAL - Income Tax p 14 153 782.11 - p 7 77!t_763.54 p 21 932,545 .65 Value-added Tax 4 612 365.10 2 73~618.53 - ~351,983.68 Expanded 34,122.30 20,455.00 Withholding Tax 54, 577 .30 TOTAL P29,339,106.63 On January 14, 2011, respondent issued a Formal Assessment Notice13 (FAN) and Assessment Notices, reiterating the deficiency internal revenue taxes contained in the PAN, but in the total amount of P29,730,563.80. On February 18, 2011, petitioner submitted its administrative protest14 together with supporting documents in the hope of reconciling the questioned figures indicated in the FAN. On March 24, 2011, petitioner received a letter15 from respondent dated March 21, 2011, informing petitioner that by reason of its protest to the FAN, the docket of the case is being forwarded to RDO No. 51-Pasay City for further evaluation and necessary action. 1 ~C 11 Exhibit "F". 12 Par. 7, Stipulation of Facts, JSFSI, Docket, p. 156. 13 Exhibit " G" . 14 Exhibit " K". 15 Exhibit " L". 16 Par. 8, Stipulation of Facts, JSFSI, Docket, p. 157.

CTA Case No. 8323 Page 5 Armadillo Holdings, Inc. vs. CIR DECISION As a result of forwarding the case to ROO No. 51, a letter dated April 1, 2011 was issued by respondent to notify petitioner of the designation and reassignment of Revenue Officer Narissa B. Ty to continue the examination of petitioner's records. 17 On July 21, 2011, petitioner received a Final Decision on Disputed Assessmentl8 (FDDA) dated July 18, 2011 from respondent, through Mr. Jaime B. Santiago, Regional Director of Revenue Region No. 8, denying petitioner's protest letter dated February 18, 2011. 19 Respondent explained that petitioner "failed to withhold taxes part of its salaries and wages in the total amount of P1,331,450.31 and should be disallowed as a deduction from gross income by merely comparing the salaries and wages per ITR and alphalist," computed as follows: 20 Salaries and Waqes per ITR p 55 374 798.44 Salaries and Wages per 54,043,348.13 Alpha list Difference P1,331,450.31 Respondent likewise alleged that "petitioner failed to reflect sources of funds amounting to P20,880,331.95 which is construed as undeclared revenue by mere assumptions and by simply comparing the income payments per Income Tax Return (ITR)/Financial Statements (FS) with the Alphalist, without looking into the nature of each transaction," as follows: 21 Total Income Payments per ITR/FS p 10,197,031.90 Total income Payments per Alphalist 31,077 363.85 Unaccounted Income Payment (P20,880,331.9S) Respondent added that "input tax carried forward to from succeeding quarter from fourth quarter of 2007 in the amount of P364,863.29 should be deducted from the ( 17 Par. 9, Stipulation of Facts, JSFSI, Docket, p. 157. 18 Exhibit " A". 19 Par. 10, Stipulation of Facts, JSFSI, Docket, p.157. 20 Par. 14, Stipulation of Facts, JSFSI, Docket, p. 158. 21 Pa r . 15, Stipulation of Facts, JSFSI, Docket, p. 159.

CTA Case No. 8323 Page 6 Armadillo Holdings, Inc. vs. CIR DECISION allowable tax credit considering that the said amount has been forwarded to the succeeding period."22 On August 22, 2011, petitioner filed the instant Petition for Review with the Court of Tax Appeals. In response, respondent filed her Answer23 on September 26, 2011, stating the following special and affirmative defenses: "3) The assessments in question were made and issued in accordance with law, rules and regulations; 4) The Preliminary Assessment Notice dated December 28, 2010 was received by the Petitioner on December 29, 2010; 5) Under Section 228 of the Tax Code of 1997, as implemented by Revenue Regulations No. 12-99, assessment notice may be protested administratively by filing a request of reconsideration or reinvestigation, in such form and manner as may be prescribed by implementing rules and regulations, within thirty (30) days from receipt of the assessment, otherwise the assessment shall become final, executory and demandable; 6) The petitioner failed to file a valid protest within thirty (30) days from receipt of the assessments, thus, the assessments have long become final, executory and demandable; 7) Petitioner's letter dated February 18, 2011 cannot be considered as a valid protest since it cannot be considered as one disputing the assessments because Petitioner failed to substantiate their claim that the deficiency assessments are contrary to law. First, Petitioner did not actually contest the assessments because it failed to state in its February,C 22 Par. 16, Stipulation of Facts, JSFSI, Docket, p. 159. 23 Docket, pp. 128-131.

CTA Case No. 8323 Page 7 Armadillo Holdings, Inc. vs. CIR DECISION 18, 2011 letter the facts, the applicable law, rules and regulations, or jurisprudence on which its protest is based. Second, Petitioner failed to submit/present the documents in support of its protest. Petitioner should have submitted relevant documents in support of its protest, pursuant to Section 6(b) of Revenue Regulations No. 12-85. Since petitioner did not submit documents in support of its protest, the assessment against it for taxable year 2007 had become final, executory and demandable, pursuant to Section 3.1.5 of Revenue Regulations No. 12-99, which provides: 'The taxpayer shall submit the required documents in support of his protest within sixty (60) days from date of filing of his letter of protest, otherwise, the assessment shall become final, executory and demandable', and Section 228 of the NIRC of 1997, as amended, which provides: 'Within sixty (60) days from filing of the protest, all relevant supporting documents shall have been submitted; otherwise the assessment shall become final'. Hence, the assessment has become final, executory and demandable; 8) Assuming without admitting that a valid protest has been filed by herein Petitioner, nevertheless, the subject assessments had already become final, executory and demandable for failure of the Petitioner to submit the required documents in support of their protest within sixty (60) days from filing of the letter of protest pursuant to Section 228 of the Tax Code as implemented by Revenue Regulation No. 12-99; 9) The Assessment Notice dated January 14, 2011 and Final Decision on Disputed Assessment dated July 18, 2011 clearly show compliance with the requirements under Section 228 of the NIRC as implemented by Revenue Regulations No. 12-99. Petitioner was duly informed of the facts, applicable law, rules and regulations on which the assessment was based ;t. /

CTA Case No. 8323 Page 8 Armadillo Holdings, Inc. vs. CIR DECISION 10) Assessments are prima facie presumed correct and made in good faith. The taxpayer has the duty of proving otherwise. In the absence of proof of any irregularities in the performance of official duties, an assessment will not be disturbed. (Aban, Law of Basic Taxation in the Philippines, 1st Edition, p. 109); 11) Finally, Petitioner should be reminded that taxes are important because it is the lifeblood of the government and so should be calculated without unnecessary hindrance (Commissioner vs. Algue, Inc. L-28896, 17 February 1988). Taxes are enforced proportional contribution from persons and property levied by the state, thus, no one is considered entitled to recover that which he must give up to another - Non videtur quisquam id capere quod ei necesse est alii restitutere." On September 28, 2011, the Court issued a Notice of Pre-Trial Conference24 set on October 27, 2011. On October 21, 2011, petitioner filed its Pre-Trial Brief25 ; while respondent filed her Pre-Trial Brief26 on October 24, 2011. Thereafter, the parties filed their Joint Stipulation of Facts and Simplification of Issues27 on November 24, 2011, which the Court approved in its November 28, 2011 Resolution. 28 In the same Resolution, the Court declared the pre-trial terminated. Petitioner filed a Motion to Commission an Independent Certified Public Accountant29 on March 21, 2012, praying for the appointment of Ms. Ofelia Flores of OCF Business Consulting as an Independent Certified Public Accountant (CPA) pursuant to CTA Circular No. 1-95, as amended by CTA Circular No. 10-97 and the Revised Rules of the Court of Tax Appeals. During the hearing held on March 29, 2012, the Court granted petitioner's motion and directed the .c 24 Docket, p. 134. 25 Docket, pp. 135-145. 26 Docket, pp. 146- 148. 27 Docket, pp. 154-161. 28 Docket, p. 163. 29 Docket, pp. 224-227.

CTA Case No. 8323 Page 9 Armadillo Holdings, Inc. vs. CIR DECISION Independent CPA to submit her report within forty-five (45) days or until May 13, 2012. The Independent CPA submitted the Independent CPA Report on May 29, 2012, and then her Final Amended Independent CPA Report30 on September 17, 2012. Petitioner filed its Formal Offer of Evidence31 on December 4, 2012, offering Exhibits "A" to "DDDD-1", inclusive of sub-markings. In response, respondent filed her Comment (To Petitioner's Formal Offer of Evidence) 32 on December 13, 2012, stating that she has no objection to the admission of said exhibits. Acting thereon, the Court issued a Resolution 33 on January 22, 2013, admitting most of the exhibits offered except Exhibits "F"I "K"I "EI-1"I "GV-2"I "NN", "NN-1", and "NN-2". Petitioner filed a Manifestation with Motion for Partial Reconsideration 34 on February 5, 2013, praying that the Court would reconsider and admit Exhibits "K", "NN", "NN- 1", and "NN-2". The Court granted petitioner's motion for reconsideration in its Resolution 35 dated March 4, 2013. Petitioner's documentary exhibits are as follows: Exhibits Description A Final Decision on Disputed Assessment B Letter of Authority c Revalidation/Reassignment Notice dated May 25, 2009 D Letter from RDO dated October 12, 2009 E Copy of the Notice from RDO G Formal Assessment Notice dated January 14, 2011..( 30 Exhibits "CCCC" and "CCCC-1". 31 Docket, pp. 310-359. 32 Docket, p. 361. 33 Docket, pp. 365-367. 34 Docket, pp. 369-373. 35 Docket, pp. 422-423.

CTA Case No. 8323 Page 10 Armadillo Holdings, Inc. vs. CIR DECISION H Assessment Notice for the Income Tax I J Assessment Notice for the Value Added Tax K Assessment Notice for the Expanded Withholding Tax L Copy of the letter dated February 18, 2010 in N reply to the Formal Assessment Notice 0 Letter of BIR dated March 21, 2011 AA Letter of BIR granting Certificate of Exemption BB to Market Place Christian Church Multi-Purpose Cooperative CC Tentative Financial Statement DD Quarterly Value-Added Tax Return for the 1st EE quarter of 2007 FF Quarterly Value-Added Tax Return for the 2nd FF-1 quarter of 2007 JJ KK Quarterly Value-Added Tax Return for the 3rd quarter LL LL-1 Quarterly Value-Added Tax Return for the 4th LL-2 quarter MM MM-1 Amended Quarterly Value-Added Tax Return for MM-2 the 4th quarter NN Affidavit of Ms. Eleanor B. Grande dated January 9, 2012 Signature of Ms. Eleanor B. Grande Tentative Trial Balance Original Income Tax Return (date filed: April 15, 2008) Supporting documents for retirement of employees Maida S. Briones - Cash Voucher #776 Check Request Form Computation of Retirement Pay Lito L. Aldecoa - Cash Voucher #789 Check Request Form Computation of Retirement Pay Evelyn Cacayan - Cash Voucher #806C

CTA Case No. 8323 Page 11 Armadillo Holdings, Inc. vs. CIR DECISION NN-1 Official Receipt No. 2514 NN-2 Computation of Retirement Pay 00 Lydia Nuguit - Cash Voucher #818 00-1 Check Request Form 00-2 Computation of Retirement Pay PP Summary of Accounts Receivable - Shared Expenses PP-1 Summary of Payment to Channel Card PP-2 Convergence (Channel Card PP-3 Batch Entry No. 12729-1 Convergence) QQ Official Receipt # 2025 QQ-1 Sales Invoice # 2058 RR Summary of Income Payments to GPP RR-1 Batch Entry Number 11425-1 ss O.R.#0254 SS-1 Batch Entry Number 11372-1 O.R.#0253 TT TT-l Batch Entry Number 11329-1 O.R.#1520 uu Batch Entry Number 11449-1 UU-1 O.R.#1565 vv Batch Entry Number 11953-1 O.R.#1771 VV-1 Batch Entry Number 12055-1 ww O.R.#l759 WW-1 Batch Entry Number 12263-1 O.R.#l860 XX XX-1 Batch Entry Number 12565-1 O.R.#2005 yy YY-1 Batch Entry Number 13012-1 O.R.#2248 zz Batch Entry Number 13013-1 ZZ-1 O.R.#2249 AB Summary of Income Payments to GPP AB-1 Batch Entry Number 13231-1 O.R.#2351(

CTA Case No. 8323 Page 12 Armadillo Holdings, Inc. vs. CIR DECISION AC Batch Entry Number 13513-1 AC-1 O.R.#2488 AD Batch Entry Number 13595-1 AD-1 O.R.#2519 AE Batch Entry Number 14020-1 AE-1 O.R.#2674 AF Batch Entry Number 11275-1 AF- 1 O.R.#l603 AG Batch Entry Number 11618-1 AG-1 O.R.#l604 AH Batch Entry Number 11804-1 AH-1 O.R.#l616 AI Batch Entry Number 12135-1 AI-l O.R.#l756 AJ Batch Entry Number 12450-1 AJ-1 O.R.#l755 AK Batch Entry Number 12650-1 AK-1 O.R.#l757 AL Batch Entry Number 12817-1 AL-l O.R.#l791 AM Batch Entry Number 12910-1 AM-1 O.R.#l792 AN Batch Entry Number 113318-1 AN-1 O.R.#l915 AO Batch Entry Number 13582-1 A0-1 O.R.#l946 AP Batch Entry Number 13807-1 AP-1 O.R.#l944 AQ Batch Entry Number 13907-1 AQ-1 O.R.#l945 AR Summary of Income Payments to Atty. AR-1 Lambino related to AHI's subsidiaries AS Batch Entry Number 12209-1 AS-1 O.R.#Ol52 Batch Entry Number 12523-1 O.R.#Ol55(

CTA Case No. 8323 Page 13 Armadillo Holdings, Inc. vs. CIR DECISION AT Batch Entry Number 13169-1 AT-1 O.R.#0507 AU Promissory Notes AV AW PN# 10570325001 AX PN# 10570325002 PN# 10570325003 AY PN# 514755 AZ Real Estate Mortgage BC PN# 10880001905 BD BE Promissory Notes BF BG PN#: 10850015022 BH PN#: 10850015043 BI PN#: 10850014993 BJ PN#: 10850014969 BK PN#: 10850014890 PN#: 10850014756 BL PN#: 1088001891 BM PN#: 10880001886 BN PN#: 10880001910 BO BP Summary of Certificate of Creditable BQ Tax Withheld at Source for Taxable BR Year BS BT Abiathar Corporation Kairos Property Holdings BU Princetown Inn Corporation BV Ithiel Corporation (Sub-Contractor) Ithiel Corporation (Consultants Gross Income) BW Quiapo Tourist Development Corp. Clean Living, Inc. BX King's Development Legend Hotels International Corporation BY Cubao Legend Hotels International Corp. BZ Legend Hotels International Corporation Cuneta BZ-1 Legend Hotels International Corporation Pasay Legend Hotels International Corporation Caloocan Legend Hotels International Corporation Bacia ran AR Insurance Agency, Inc., (Batch Entry Number 12870-1) Official Receipt No. 4'78 7<

CTA Case No. 8323 Page 14 Armadillo Holdings, Inc. vs. CIR DECISION CD John Clement Consultants, Inc. - Batch Entry Number 12419 CD-1 O.R. #97416 CE Anti-Virus software to C.S. Holdings (Batch Entry 12344-1) CE-1 Official Receipt 1200 CE-2 Sales Invoice 1586 CF Personnel Management Association of the Philippines (Batch Entry Number 11242-1) CF-1 Check Request Form CF-2 Statement of Account CG Philippine Institute for Supply Management Inc. (Batch Entry Number 12895-1) CG-1 Check Request Form CH Governor's Place Condominium Association, Incorporated (Batch Entry Number 12296-1) CH-1 Official Receipt #25851 CH-2 Statement of Account No. 14909 CI Batch Number 13447-1 CI-1 O.R. #174 CJ Batch Entry Number 11227-1 CJ-1 Official Receipt No. 07644 CK Batch Entry Number 11694-1 CK-1 Official Receipt No. 08422 CL Batch Entry Number 12276-1 CL-1 Official Receipt No. 09003 CM Batch Entry Number 13613-1 CM-1 Official Receipt No. 10951 CN Summary of Income Payments for CN-1 Interest Expense - BPI CO Batch Entry Number 11541-1 CO-l Check Request Form CP Batch Entry Number 11542-1 CP-1 Check Request Form CQ Batch Entry Number 11566-1 CQ-1 Check Request Form CR Batch Entry Number 11704-1 Check Request Form Batch Entry Number 11705-1,(

CTA Case No. 8323 Page 15 Armadillo Holdings, Inc. vs. CIR DECISION CR-1 Check Request Form cs Batch Entry Number 11706-1 Check Request Form CS-1 Batch Entry Number 12021-1 CT Check Request Form CT-1 Batch Entry Number 12022-1 cu Check Request Form CU-1 Batch Entry Number 12056-1 Check Request Form cv Batch Entry Number 12064-1 CV-1 Check Request Form cw Batch Entry Number 12266-1 Check Request Form CW-1 Batch Entry Number 12267-1 ex Check Request form CX-1 Batch Entry Number 12268-1 Check Request Form CY CY-1 Summary of Income Payments for Interest Expense- BPI cz Batch Entry Number 12269-1 CZ-1 Check Request Form DE Batch Entry Number 12402-1 DE-l Check Request Form OF Batch Entry Number 12403-1 DF-1 Check Request Form DG Batch Entry Number 12404-1 DG-1 Check Request Form DH Batch Entry Number 12405-1 DH-1 Check Request Form DI Batch Entry Number 12671-1 DI -1 Check Request Form OJ Batch Entry Number 12672-1 DJ-1 Check Request Form OK Batch Entry Number 12673-1 DK-1 Check Request Form DL Batch Entry Number 12674-1( DL-1 OM

CTA Case No. 8323 Page 16 Armadillo Holdings, Inc. vs. CIR DECISION DM-1 Check Request Form DN Batch Entry Number 12885-1 DN-1 Check Request Form DO Batch Entry Number 12886-1 DO-l Check Request Form DP Batch Entry Number 12887-1 DP-1 Check Request Form DQ Batch Entry Number 12888-1 DQ-1 Check Request Form DR Batch Entry Number 13160-1 DR-1 Check Request Form DS Batch Entry Number 13161-1 DS-1 Check Request Form DT Batch Entry Number 13162-1 DT-1 Check Request Form DU Batch Entry Number 13189-1 DU-1 Check Request Form DV Batch Entry Number 13418-1 DV-1 Check Request Form DW Batch Entry Number 13419-1 DW-1 Check Request Form DX Batch Entry Number 13420-1 DX-1 Check Request Form DY Batch Entry Number 13421-1 DY-1 Check Request Form DZ Batch Entry Number 13626-1 DZ-1 Check Request Form EF Summary of Income Payments for EF-1 Interest Expense- BPI EG Batch Entry Number 13627-1 EG-1 Check Request Form EH Batch Entry Number 13628-1 EH-1 Check Request Form EI Batch Entry Number 13629-1 Check Request Form Batch Entry Number 13853-lC

CTA Case No. 8323 Page 17 Armadillo Holdings, Inc. vs. CIR DECISION EJ Batch Entry Number 13855-1 EJ-1 Check Request Form EK Batch Entry Number 13881-1 EK-1 Check Request Form EL Batch Entry Number 13882-1 EL-l Check Request Form EM Batch Entry Number 11232-1 EM-1 Check Request Form EM-2 Official Receipt No. 148812 EN Batch Entry Number 11233-1 EN-1 Official Receipt No. 148643 EN-2 Check Request Form EO Batch Entry Number 11234-1 E0-1 Check Request Form E0-2 Official Receipt No. 148644 EP Batch Entry Number 11244-1 EP-1 Official Receipt No. 148783 EP-2 Check Request Form EQ Batch Entry Number 11245-1 EQ-1 Check Request Form EQ-2 Official Receipt No. 148820 ER Batch Entry Number 11254-1 ER-1 Official Receipt No. 148835 ER-2 Check Request Form ES Batch Entry Number 11255-1 ES-1 Official Receipt No. 148834 ES-2 Check Request Form ET Batch Entry Number 11256-1 ET-1 Official Receipt No. 148841 ET-2 Check Request Form EU Batch Entry Number 11257-1 EU-1 Check Request Form EU-2 Official Receipt No. 148908 EV Batch Entry Number 11438-1 EV-1 Check Request Form EV-2 Official Receipt No. 148995 EW Batch Entry Number 11439-1 EW-1 Official Receipt No. 148996 EW-2 Check Request Form C.

CTA Case No. 8323 Page 18 Armadillo Holdings, Inc. vs. CIR DECISION EX Batch Entry Number 11440-1 EX-1 Check Request Form EX-2 Official Receipt No. 150216 EY Batch Entry Number 11441-1 EY-1 Official Receipt No. 150158 EY-2 Check Request Form EZ Batch Entry Number 11442-1 EZ-1 Official Receipt No. 150076 EZ-2 Check Request Form FG Summary of Income Payments for FG-1 Interest Expense - Robinsons Bank FG-2 Batch Entry Number 11443-1 FH Check Request Form FH-1 Official Receipt No. 150070 FH-2 Batch Entry Number 11444-1 FI Check Request Form FI -1 Official Receipt No. 150053 FI-2 Batch Entry Number 11445-1 FJ Check Request Form FJ-1 Official Receipt No. 150117 FJ-2 Batch Entry Number 11446-1 FK Check Request Form FK-1 Official Receipt No. 150211 FK-2 Batch Entry Number 11447-1 FL Check Request Form FL-1 Official Receipt No. 150052 FL-2 Batch Entry Number 11654-1 FM Check Request Form FM-1 Official Receipt No. 150353 FM-2 Batch Entry Number 11655-1 FN Check Request Form FN-1 Official Receipt No. 150402 FN-2 Batch Entry Number 11656-1 FO Check Request Form F0-1 Official Receipt No. 150143 F0-2 Batch Entry Number 11657-1 Official Receipt No. 150234 Check Request Form Summary of Income Payments for Interest Expense - Robinsons Ban~<e

CTA Case No. 8323 Page 19 Armadillo Holdings, Inc. vs. CIR DECISION FR Batch Entry Number 11658-1 FR-1 Check Request Form FR-2 Official Receipt No. 150407 FS Batch Entry Number 11659-1 FS-1 Official Receipt No. 150135 FS Check Request Form FT Batch Entry Number 11660-1 FT-1 Check Request Form FT-2 Official Receipt No. 150235 FU Batch Entry Number 11661-1 FU-1 Check Request Form FU-2 Official Receipt No. 150232 FV Batch Entry Number 11662-1 FV Official Receipt No. 150231 FV-2 Check Request Form FW Batch Entry Number 11663-1 FW Official Receipt No. 150414 FW-2 Check Request Form FX Batch Entry Number 11948-1 FX-1 Check Request Form FX-2 Official Receipt No. 150471 FY Batch Entry Number 11949-1 FY-1 Check Request Form FY-2 Official Receipt No. 150470 FZ Batch Entry Number 11950-1 FZ-1 Official Receipt No. 150469 FZ-2 Check Request Form GH Summary of Income Payments for GH-1 Interest Expense - Robinsons Bank GH-2 Batch Entry Number 11951-1 GI Official Receipt No. 150475 GI-l Check Request Form GI-2 Batch Entry Number 11959-1 GJ Official Receipt No. 150489 GJ-1 Check Request Form GJ-2 Batch Entry Number 11960-1 GK Official Receipt No. 150499 GK-1 Check Request Form Batch Entry No. 11961-1 Check Request For

CTA Case No. 8323 Page 20 Armadillo Holdings, Inc. vs. CIR DECISION GK-2 Official Receipt No. 150486 GL Batch Entry No. 11962-1 GL-1 Check Request Form GL-2 Official Receipt No. 150490 GM Batch Entry Number 11963-1 GM-1 Official Receipt No. 150381 GM-2 Check Request Form GN Batch Entry Number 11964-1 GN-1 Check Request Form GN-2 Official Receipt No. 150349 GO Batch Entry Number 12176-1 G0-1 Official Receipt No. 153268 G0-2 Check Request Form GP Batch Entry Number 12177-1 GP-1 Official Receipt No. 153269 GP-2 Check Request Form GQ Batch Entry Number 12178-1 GQ-1 Check Request Form GQ-2 Official Receipt No. 153271 GR Batch Entry Number 12179-1 GR-1 Check Request Form GR-2 Official Receipt No. 153219 GS Batch Entry Number 12180-1 GS-1 Official Receipt No. 153174 GS-2 Check Request Form GT Batch Entry Number 12181-1 GT-1 Official Receipt No. 153228 GT-2 Check Request Form GU Batch Entry Number 12182-1 GU-1 Official Receipt No. 153224 GU-2 Check Request Form GV Batch Entry Number 12183-1 GV-1 Official Receipt No. 153296 GW Batch Entry Number 12184-1 GW-1 Official Receipt No. 153225 GW-2 Check Request Form GX Batch Entry Number 12185-1 GX-1 Check Request Form GX-2 Official Receipt No. 153135 GY Batch Entry Number 12435-1{

CTA Case No. 8323 Page 21 Armadillo Holdings, Inc. vs. CIR DECISION GY-1 Official Receipt No. 153465 GY-2 Check Request Form GZ Batch Entry Number 12436-1 GW-1 Official Receipt No. 153462 GW-2 Check Request Form HI Summary of Income Payments for HI-1 Interest Expense - Robinsons Bank HI-2 Batch Entry Number 12437-1 HJ Official Receipt No. 153463 HJ-1 Check Request Form HJ-2 Batch Entry Number 12438-1 HK Official Receipt No. 153464 HK-1 Check Request Form � HK-2 Batch Entry Number 12470-1 HL Check Request Form Official Receipt No. 153480 HM HM-1 Batch Entry Number 12471-1 HM-2 Batch Entry Number 12472-1 HN Official Receipt No. 153494 HN-1 Check Request Form HN-2 Batch Entry Number 12473-1 HO Check Request Form H0-1 Official Receipt No. 153488 H0-2 Batch Entry Number 12474-1 HP Official Receipt No. 153466 HP-1 Check Request Form HP-2 Batch Entry Number 12475-1 HQ Official Receipt No. 154815 HQ-1 Check Request Form HQ-2 Batch Entry Number 12640-1 HR Check Request Form HR-1 Official Receipt HR-2 Batch Entry Number 12641-1 HS Official Receipt HS-1 Check Request Form HS-2 Batch Entry Number 12642-1 HT Official Receipt No. 155001 Check Request Form Batch Entry Number 12643-1(

CTA Case No. 8323 Page 22 Armadillo Holdings, Inc. vs. CIR DECISION HT-1 Check Request Form HT-2 Official Receipt No. 154966 HU Batch Entry Number 12665-1 HU-1 Check Request Form HU-2 Official Receipt HV Batch Entry Number 12666-1 HV-1 Check Request Form HV-2 Official Receipt No. 155127 HW Batch Entry Number 12667-1 HW-1 Check Request Form HW-2 Official Receipt No. 155127 HX Batch Entry Number 12668-1 HX-1 Official Receipt No. 155057 HX-2 Check Request Form HY Batch Entry Number 12669-1 HY-1 Check Request Form HY-2 Official Receipt No. 155019 HZ Batch Entry Number 12670-1 HZ-1 Check Request Form HZ-2 Official Receipt No. 155031 IJ Summary of Income Payments for IJ-1 Interest Expense - Robinsons Bank IJ-2 Batch Entry Number 12872-1 IK Official Receipt No. 155190 IK-1 Check Request Form IL Batch Entry Number 12873-1 IL-l Official Receipt No. 155189 IL-2 Batch Entry Number 12874-1 IM Official Receipt No. 155049 IM-1 Check Request Form IM-2 Batch Entry Number 12875-1 IN Check Request Form IN-1 Official Receipt No. 155198 IN-2 Batch Entry Number 12879-1 IO Check Request Form I0-1 Official Receipt No. 155301 I0-2 Batch Entry Number 12880-1 IP Check Request Form Official Receipt No. 155362 Batch Entry Number 12881-1(

CTA Case No. 8323 Page 23 Armadillo Holdings, Inc. vs. CIR DECISION IP-1 Official Receipt No. 155306 IP-2 Check Request Form IQ Batch Entry Number 12882-1 IQ-1 Check Request Form IQ-2 Official Receipt No. 155305 IR Batch Entry Number 12883-1 IR-1 Check Request Form IR-2 Official Receipt No. 155371 IS Batch Entry Number 12884-1 IS-1 Check Request Form IS-2 Official Receipt No. 155394 IT Batch Entry Number 13093-1 IT-1 Check Request Form IT-2 Official Receipt No. 155479 IU Batch Entry Number 13094-1 IU-1 Official Receipt No. 155480 IU-2 Check Request Form IV Batch Entry Number 13095-1 IV-1 Official Receipt No. 155481 IV-2 Check Request Form IW Batch Entry Number 13096-1 IW-1 Official Receipt No. 155494 IW-2 Check Request Form IX Batch Entry Number 13149-1 IX-1 Official Receipt No. 155564 IX-2 Check Request Form IY Batch Entry Number 13163-1 IY-1 Check Request Form IY-2 Official Receipt No. 155574 IZ Batch Entry Number 13164-1 IZ-1 Check Request Form IZ-2 Official Receipt No. 155575 JK Summary of Income Payments for JK-1 Interest Expense - Robinsons Bank JK-2 Batch Entry Number 13165-1 JL Check Request Form JL-1 Official Receipt No. 155613 JL-2 Batch Entry Number 13166-1 Check Request Form Official Receipt No. 155625(

CTA Case No. 8323 Page 24 Armadillo Holdings, Inc. vs. CIR DECISION JM Batch Entry Number 13167-1 JM-1 Official Receipt No. 155646 JM-2 Check Request Form JN Batch Entry Number 13349-1 JN-1 Official Receipt No. 155811 JN-2 Check Request Form JO Batch Entry Number 13350-1 J0-1 Check Request Form J0-2 Official Receipt No. 155812 JP Batch Entry Number 13351-1 JP-1 Check Request Form JP-2 Official Receipt No. 155815 JQ Batch Entry Number 13352-1 JQ- 1 Check Request Form JQ-2 Official Receipt No. 155827 JP Batch Entry Number 13384-1 JP-1 Official Receipt No. 155782 JP-2 Check Request Form JQ Batch Entry Number 13427-1 JQ-1 Check Request Form JQ-2 Official Receipt No. 155851 JR Batch Entry Number 13428-1 JR-1 Check Request Form JR-2 Official Receipt No. 155846 JS Batch Entry Number 13429-1 JS-1 Official Receipt No. 155847 JS-2 Check Request Form JT Batch Entry Number 13430-1 JT-1 Official Receipt No. 155957 JT-2 Check Request Form JU Batch Entry Number 13431-1 JU-1 Official Receipt No. 155917 JU-2 Check Request Form JV Batch Entry Number 13561-1 JV-1 Official Receipt No. 155933 JV-2 Check Request Form JW Batch Entry Number 13562-1 JW-1 Check Request Form JW-2 Official Receipt No. 155934 JX Batch Entry Number 13563-1 JX-1 Check Request Form '

CTA Case No. 8323 Page 25 Armadillo Holdings, Inc. vs. CIR DECISION JX-2 Official Receipt No. 155941 JY Batch Entry Number 13564-1 JY-1 Official Receipt No. 155942 JY-2 Check Request Form JZ Batch Entry Number 13587-1 JZ-1 Official Receipt No. 163859 JZ-2 Check Request Form KL Summary of Income Payments for KL-1 Interest Expense - Robinsons Bank KL-2 Batch Entry Number 13588-1 KM Check Request Form KM-1 Official Receipt No. 157032 KM-2 Batch Entry Number 13589-1 KN Check Request Form KN-1 Official Receipt No. 157011 KN-2 Batch Entry Number 13590-1 KO Official Receipt No. 157017 K0-1 Check Request Form K0-2 Batch Entry Number 13591-1 KP Check Request Form KP-1 Official Receipt No. 157039 KP-2 Batch Entry Number 13592-1 KQ Official Receipt No. 155962 KQ-1 Check Request Form KQ-2 Batch Entry Number 13793-1 KR Check Request Form KR-1 Official Receipt No. 155993 KR-2 Batch Entry Number 13794-1 KS Official Receipt No. 155994 KS-1 Check Request Form KS-2 Batch Entry Number 13795-1 KT Check Request Form KT-1 Official Receipt No. 155992 KT-2 Batch Entry Number 13796-1 KU Official Receipt No. 157106 KU-1 Check Request Form KU-2 Batch Entry Number 13861-1 KV Official Receipt No. 156005 Check Request Form Batch Entry Number 13862-1

CTA Case No. 8323 Page 26 Armadillo Holdings, Inc. vs. CIR DECISION KV-1 Check Request Form KV-2 Official Receipt No. 156009 KW Batch Entry Number 13863-1 KW-1 Check Request Form KW-2 Official Receipt No. 157149 KX Batch Entry Number 13864-1 KX-1 Check Request Form KX-2 Official Receipt No. 156008 KY Batch Entry Number 13865-1 KY-1 Check Request Form KY-2 Official Receipt No. 156059 KZ Batch Entry Number 13866-1 KZ-1 Check Request Form LM Summary of AHI's Interest Expense LM-1 Batch Number 11437 LN Check Request Form LN-1 Batch Number 11653 LO Check Request Form L0-1 Batch Number 11971 LP Check Request Form LP-1 Batch Number 12113 LQ Check Request Form LQ-1 Batch Number 12188 LR Check Request Form LR-1 Batch Number 12401 LS Check Request Form LS-1 Batch Number 12624 LT Check Request Form LT-1 Batch Number 12896 LU Check Request Form LU-1 Batch Number 13108 LV Check Request Form LV-1 Batch Number 13411 LW Check Request Form LW-1 Batch Number 13625 LX Check Request Form Batch Number 13839(

CTA Case No. 8323 Page 27 Armadillo Holdings, Inc. vs. CIR DECISION LX-1 Check Request Form LY Summary of Repairs and Maintenance LY-1 Accounted subjected to 1�/o WHT for LY-2 the taxable year 2007 LZ Batch Entry Number 11967 LZ-1 O.R. No. 766 Sales Invoice No. 1679 *MN MN-1 Batch Entry Number 11966 Sales Invoice No. 1522 *MO MO-l *Summary of Repairs and Maintenance M0-2 Accounted subjected to 1�/o WHT for the taxable year 2007 MP MP-1 Batch Entry Number 11681 MP-2 O.R. No. 6307 MP-3 MP-4 Batch Entry Number 12625 MP-5 O.R. No. 1410 MP-6 Sales Invoice No. 1540 MP-7 Batch Number 12659 *MQ Batch Entry Number 12659-1 MQ-1 Sales Invoice # 3441 Batch Entry Number 12659-3 MR Batch Entry Number 12659-4 MR-1 O.R. # 2646 Sales Invoice No. 3435 *MS Sales Invoice No. 3441 MS-1 Batch Entry Number 13306 MT O.R. # 21076 MT-1 Batch Entry Number 12524 *MU O.R. # 174274 MU-1 Batch Entry Number 12132 *MV O.R. # 1367 MV-1 Batch Entry Number 12324 *MW O.R. # 173910 MW-1 Batch Entry Number 13817 O.R. # 13124 Batch Entry Number 13732 O.R. # 13064 Batch Entry Number 13407 O.R. # 12783

CTA Case No. 8323 Page 28 Armadillo Holdings, Inc. vs. CIR DECISION *MX Batch Entry Number 13224 MX-1 O.R. # 12771 *MY Batch Entry Number 12841 MY-1 O.R. # 12855 *MZ Batch Entry Number 11885 MZ-1 O.R. # 12436 *NO Batch Entry Number 11647 O.R. # 13975 N0-1 Batch Entry Number 11902 NP S.I. # 3238 NP-1 Batch Entry Number 12521 NQ O.R. # 2622 NQ-1 Batch Entry Number 11575 NR O.R. # 2480 NR-1 Batch Entry Number 13965 NS O.R. # 2791 NS-1 Batch Entry Number 13964 NT S.I. # 3711 NT-1 Batch Entry Number 13903 NU O.R. # 2783 NU-l Batch Entry Number 13805 NV O.R. # 2778 NV-1 Batch Entry Number 13813 NW S.I. # 3707 NW-1 Batch Entry Number 13661 NX O.R. #2755 NX-1 Batch Entry Number 13566 NY O.R. # 2751 NY-1 Batch Entry Number 12999 NZ O.R. # 2690 NZ-1 Supporting documents for Input VAT OP OP-1 Batch Entry Number 13311 S.I. # 3594 OQ OQ-1 Batch Entry Number 13310 O.R. # 2720 OR Batch Entry Number 13127.(

CTA Case No. 8323 Page 29 Armadillo Holdings, Inc. vs. CIR DECISION OR-1 O.R. # 2708 OS Batch Entry Number 13338 OS-1 O.R. # 2723 OT Batch Entry Number 13065 OT-1 O.R. # 2711 ou Batch Entry Number 12914 O.R. # 2683 OU-1 Batch Entry Number 12915 ov S.I. # 3509 OV-1 Batch Entry Number 12645 O.R. # 2640 ow Batch Entry Number 12204 OW-l O.R. # 2582 ox Batch Entry Number 11763 O.R. # 2510 OX-1 Batch Entry Number 11334 OY O.R. # 2451 OY-1 Supporting documents for Input VAT oz Batch Entry Number 11282 OZ-1 S.I. # 3085 PQ Batch Entry Number 13668 PQ-1 O.R. # 655 PR Batch Entry Number 13435 PR-1 O.R. # 649 PS Batch Entry Number 13367 PS-1 O.R. # 12814 PT Batch Entry Number 11243 PT-1 O.R. # 1098 PU Batch Entry Number 13998 PU-1 O.R. # 79361 PV Batch Entry Number 13328 PV-1 O.R. # 155962 PW Batch Entry Number 13172 PW-1 O.R. # 23955 PX Batch Entry Number 11968 PX-1 O.R. # 55746(' PY PY-1

CTA Case No. 8323 Page 30 Armadillo Holdings, Inc. vs. CIR DECISION PZ Batch Entry Number 13308 PZ-1 O.R. # 54075 QR Supporting documents for Input VAT QR-1 Batch Entry Number 13967 QS O.R. # 14464 QS-1 Batch Entry Number 14139 QT S.I. # 28274 QT-1 Batch Entry Number 12773 QU O.R. # 13762 QU-1 Batch Entry Number 13537 *QV O.R. # 14215 QV-1 Batch Entry Number 12313 QW O.R. # 0735 QW-1 Batch Entry Number 13226 QX O.R. # 0862 QX-1 Batch Entry Number 12335 QY O.R. # 3135 QY-1 Batch Entry Number 11692 QZ O.R. # 21838 QZ-1 Batch Entry Number 11855-2 RU S.I. # 72632 RU-1 Supporting documents (Summary of *RV Accounts Receivable - Shared Expenses) RV-1 Batch Entry Number 13743 *RW O.R. # 066 RW-1 Batch Entry Number 13846 *RX Official Receipt RX-1 Batch Entry Number 14043 RY O.R. # 59704 RY-1 Batch Entry Number 13908 *RZ S.I. # 0051 RZ-1 Batch Entry Number 13969 Official Receipt No. 0055 Batch Entry Number 13847 O.R. # 358~

CTA Case No. 8323 Page 31 Armadillo Holdings, Inc. vs. CIR DECISION ST Supporting documents (Summary of ST-1 Accounts Receivable - Shared Expenses) su Batch Entry Number 13850 O.R. # 16463 SU-1 Batch Entry Number 13848 sv O.R. # 16468 SV- 1 Batch Entry Number 13845 O.R. # 16469 sw Batch Entry Number 14039 SW- 1 Batch Entry Number 14039-1 SW-2 Batch Entry Number 14039-2 SW-3 O.R. # 16472 sx Batch Entry Number 14497 O.R. # 16491 SX-1 Batch Entry Number 13128 SY O.R. # 4438 SY-1 Batch Entry Number 14041 sz 5.1. # 23833 SZ-1 Summary of Accounts Receivable - Shared Expenses TU TU - 1 Batch Entry Number 14040 Sales Invoice (SI) 23835 TV TV-1 Batch Entry Number 14038 O.R. # 77074 TW TW-1 Batch Entry Number 14036 O.R. # 77073 TX TX-1 Batch Entry Number 14042 O.R. # 98042 TY TY-1 Batch Entry Number 14045 O.R. # 0799 TZ TZ-1 Batch Entry Number 14047 5.1. # 9446 UV UV-1 Summary of Accounts Receivable - Shared Expenses UW Batch Entry Number 14044 O.R. No. 7383 Batch Entry Number 14037(

CTA Case No. 8323 Page 32 Armadillo Holdings, Inc. vs. CIR DECISION UW-1 O.R. No. 40628 ux Batch Entry Number 11335 O.R. No. 5704 UX-1 Batch Entry Number 13363 UY S.I. No. 42241 UY-1 Batch Entry Number 12709 uz CWT Cash Liquidation Form UZ-1 UZ-2 Batch Entry Number 14046 O.R. No. 22143 vw Batch Entry Number 13565 VW-1 O.R. No. 4629 vx Batch Entry Number 13834 O.R. No. 2806 VX-1 Batch Entry Number 13833 VY O.R. No. 2736 VY- 1 Batch Entry Number 13303 vz O.R. # 377208 VZ-1 Batch Entry Number 13849 O.R. # 0228 wx Batch Entry Number 13663 WX-1 S.I. # 3643 WY Batch Entry Number 11333 WY-1 S.I. # 3083 wz John Clement Consultants, Inc. - Batch Entry Number 11828-1 WZ-1 O.R. # 96559 XY Summary of payments for increase in XY- 1 Property, Plant and Equipment xz Batch Entry Number 13402 Sales Invoice No. 31607 XZ-1 Batch Entry Number 11373 YZ Official Receipt No. 2809 YZ-1 Sales Invoice 4009 AAA Batch Entry Number 12072 AAA-1 Official Receipt No. 1318 AAA-2 Sales Invoice # 14354C AAB AAB-1 AAB-2

CTA Case No. 8323 Page 33 Armadillo Holdings, Inc. vs. CIR DECISION AAC Batch Entry Number 12300 AAC-1 Billing Statement AAC-2 Sales Invoice SE121458 AAD Batch Entry Number 12358 AAD-1 Official Receipt No. 5924 AAD-2 Sales Invoice No. 15077184 AAE Batch Entry Number 12518 AAE-1 Official Receipt No. 65924 AAF Batch Entry Number 12597 AAF-1 O.R. # 6658 AAG Batch Entry Number 12544 AAG-1 Official Receipt No. 4313 AAG-2 Sales Invoice # 1695 AAG-3 Delivery Receipt/Sales Invoice # 3748 AAH Batch Entry Number 13145 AAH-1 O.R. # 40655 AAI Batch Entry Number 13265 AAI-1 Official Receipt No. 6720 AAI-2 Sales Invoice # 15100456 AAJ Batch Entry Number 12889 AAJ-1 Invoice # 123914 AAJ-2 Billing Statement AAK Batch Entry Number 13309 AAK- 1 Official Receipt No. 6729 AAK-2 Sales Invoice #15100067 AAL Batch Entry Number 13456 AAL-1 O.R. # 14467 AAM Batch Entry Number 13454 AAM-1 Official Receipt No. 11650 AAM-2 Sales Invoice # 15370 AAN Batch Entry Number 13811 AAN-1 Official Receipt No. 1529 AAN - 2 Sales Invoice # 1722 AAO Batch Entry Number 11398 AA0-1 Official Receipt No. 3895 AA0-2 Sales Invoice No. 1363 AAP Batch Entry Number 11422 AAP-1 Official Receipt No. 3859 AAP-2 Sales Invoice # 1304 AAQ Batch Entry Number 11593~

CTA Case No. 8323 Page 34 Armadillo Holdings, Inc. vs. CIR DECISION AAQ-1 Official Receipt No. 4222 AAQ-2 Sales Invoice # 1422 AAR Batch Entry Number 11594 AAR-1 Official Receipt No. 4223 AAR-2 Sales Invoice # 1420 AAS Batch Entry Number 11595 AAS-1 Official Receipt No. 4221 AAS-2 Sales Invoice # 1379 AAT Batch Entry Number 11620 AAT-1 Official Receipt No. 1728 AAU Batch Entry Number 11670 AAU-1 Official Receipt No. 3930 AAU-2 Sales Invoice # 1486 AAV Batch Entry Number 11892 AAV-1 Official Receipt No. 3931 AAV-2 Sales Invoice # 1380 AAW Batch Entry Number 11981 AAW-1 Official Receipt No. 3979 AAW-2 Sales Invoice No. 1558 AAX Batch Entry Number 11982 AAX-1 Official Receipt No. 3980 AAX-2 Sales Invoice No. 1557 AAY Batch Entry Number 11980 AAY-1 Official Receipt No. 3978 AAY-2 Sales Invoice # 1572 AAZ Batch Entry Number 12147 AAZ-1 Official Receipt No. 4012 AAZ-2 Sales Invoice # 1610 BBA Summary of payments for increase in BBA-1 Property, Plant and Equipment BBB Batch Entry Number 12203 BBB Official Receipt No. 1785 BBB-2 Batch Entry Number 12334 BBC Official Receipt No. 4039 BBC-1 Sales Invoice # 1458 BBC-2 Batch Entry Number 12545 BBD Official Receipt No. 4327 BBD-1 Sales Invoice # 1725 Batch Entry Number 12613 Official Receipt No. 4383(

CTA Case No. 8323 Page 35 Armadillo Holdings, Inc. vs. CIR DECISION BBD-2 Sales Invoice # 1847 BBE Batch Entry Number 12639 BBE-1 Official Receipt No. 374105 BBE-2 Sales Invoice# 210015617 BBF Batch Entry Number 12704 BBF-1 Official Receipt No. 4382 BBF-2 Sales Invoice # 1754 BBG Batch Entry Number 12920 BBG-1 Official Receipt No. 4465 BBG-2 Sales Invoice # 1882 BBH Batch Entry Number 12871 BBH-1 O.R. # 4466 BBH - 2 Sales Invoice # 1873 BBI Batch Entry Number 13056 BBI-1 Official Receipt No. 4517 BBI-2 Sales Invoice # 1913 BBJ Batch Entry Number 13075 BBJ-1 Official Receipt No. 4543 BBJ-2 Sales Invoice # 1953 BBK Batch Entry Number 13307 BBK-1 Official Receipt No. 4605 BBK-2 Sales Invoice # 1988 BBL Batch Entry Number 13341 BBL-1 Official Receipt No. 1471 BBL-2 Sales Invoice # 1614 BBM Batch Entry Number 13342 BBM-1 Official Receipt No. 1458 BBM - 2 Sales Invoice # 1635 BBN Batch Entry Number 13400 BBN-1 Official Receipt No. 1506 BBN-2 Sales Invoice # 1654 BBO Batch Entry Number 13453 BB0-1 Official Receipt No. 1478 BB0-2 Sales Invoice # 1624 BBP Batch Entry Number 12950 BBP-1 PR 01432 BBQ Batch Entry Number 13600 BBQ-1 O.R. # 11625 BBR Batch Entry Number 13736 BBR-1 O.R. # 12016 ,

CTA Case No. 8323 Page 36 Armadillo Holdings, Inc. vs. CIR DECISION BBS Batch Entry Number 13729 BBS-1 Official Receipt No. 1554 BBS-2 Sales Invoice # 1681 BBT Batch Entry Number 13728 BBT-1 Official Receipt No. 1553 BBT-2 Sales Invoice # 1682 BBU Vehicle Sales Invoice # 3277 BBV Batch Entry Number 12795 BBV-1 Deed of Absolute Sale **BBW Batch Entry Number 12913 BBW-1 O.R. # 20458499 BBX Vehicle Sales Invoice # 039320 BBX-1 Promissory Note #001-026461-8 BBY Promissory Note # 1502240866 BBY-1 Vehicle Delivery Receipt 0035897 BBZ Batch Entry Number 12142 BBZ-1 O.R. # 6519 BBZ-2 Sales Invoice 13612 CCA Summary of payments for increase in CCA-1 Property, Plant and Equipment CCA-2 Batch Entry Number 12948 CCB Official Receipt No. 6818 CCB-1 Sales Invoice # 136763 CCB-2 Batch Entry Number 11547 CCC Official Receipt No. 2478 CCC-1 Sales Invoice # 3143 CCC-2 Batch Entry Number 12410 CCD Official Receipt No. 2606 CCD-1 Sales Invoice # 3278 CCE Batch Entry Number 13343 CCE-1 Official Receipt No. 7538 CCE-2 Batch Entry Number 13534 CCF O.R. # 0334 CCG Sales Invoice # 0119 Official Receipts supporting documents for input VAT O.R. # 15243 O.R. # 15075

CTA Case No. 8323 Page 37 Armadillo Holdings, Inc. vs. CIR DECISION CCH O.R. # 14460 CCI O.R. # 14495 CCJ O.R. # 14313 CCK O.R. # 14344 CCL O.R. # 14228 CCM O.R. # 14132 CCN O.R. # 14118 ceo o.R. # 13971 CCP O.R. # 13961 CCQ O.R. # 13856 CCR O.R. # 11189 CCS O.R. # 13533 CCT O.R. # 13438 CCU O.R. # 13418 CCV O.R. # 13380 CCW O.R. # 13148 CCX O.R. # 12976 CCY O.R. # 13108 CCZ O.R. # 12966 DDA O.R. # 12868 DDB O.R. # 12636 DOC O.R. # 12611 DOD O.R. # 0023 DOE O.R. # 0024 DDF O.R. # 0076 DOG O.R. # 0077 DOH O.R. # 20474 DDI O.R. # 23503 DDJ O.R. # 24209 DDK O.R. # 7591 DOL O.R. # 4539 DDM O.R. # 4659 DON O.R. # 4660 DDO O.R. # 4862 DDP O.R. # 4186 DDQ O.R. # 4408 DDR O.R. # 4407 DDS O.R. # 4023 DDT O.R. # 3930 DDU O.R. # 3939 DDV O.R. # 3859 DOW O.R. # 3805 DDX O.R. # 253254 DDY O.R. # 251155 DDZ O.R. # 36648 EEA O.R. # 1585 EEB O.R. # 33262 EEC O.R. # 33726 EED O.R. # 240 EEE O.R. # 236 EEF O.R. # SI # 299 EEG O.R. # 233 EEH O.R. # 232 # 230 ~~ EEI O.R.

CTA Case No. 8323 Page 38 Armadillo Holdings, Inc. vs. CIR DECISION EEJ O.R. # 229 EEK O.R. # 217 EEL O.R. # 216 EEM O.R. # 227 EEN O.R. # 221 EEO O.R. # 211 EEP O.R. # 209 EEQ O.R. # 208 EER O.R. # 204 EES O.R. # 357365 EET O.R. # 344673 EEU O.R. # 377205 EEV ANSONS OFFICIAL RECEIPT DATED 11/16/07 EEW O.R. # 22460 EEX O.R. # 22367 EEY O.R. # 0371 (TAMSONS ENTERPRISES INC.) EEZ O.R. # 289478 FFA O.R. # 2021 (RSBA) FFB O.R. # 1993 (RSBA) FFC O.R. # 21891 FFD Supporting documents for Summary FFD-1 of Accounted Supplies Expenses FFD-2 Batch No. 13665 FFE OR# 27272 FFE-1 SI # 40786 FFE-2 Batch No. 13066 FFF OR# 26326 FFF-1 SI # 39669 FFF-2 Batch No. 12357 FFG OR# 25631 FFG-1 SI # 38130 FFG-2 Batch No. 12312 FFH OR# 25429 FFH-1 SI # 37920 FFH-2 Batch No. 12590 FFI OR# 25760 FFI-1 SI # 38449 FFJ Batch No. 12312 OR# 25429 Supporting document for Summary of Accounted Supplies Expenses Batch No. 140014C

CTA Case No. 8323 Page 39 Armadillo Holdings, Inc. vs. CIR DECISION FFJ-1 SI # 97160 FFK Batch No. 13765 FFK- 1 O.R. # 78703 FFL Batch No . 13553 FFL-1 O.R. # 77275 FFM Batch No. 13312 FFM-1 O.R. # 77115 FFN Batch No. 13074 FFN-1 O.R. # 75737 FFO Batch No. 12842 FF0-1 O.R. # 74889 FFP Batch No. 12416 FFP-1 O.R. # 75081 FFQ Batch No. 12850 FFQ-1 O.R. # 75106 FFR Batch No. 12139 FFR-1 O.R. # 73958 FFS Batch No. 12194 FFS-1 O.R. # 73956 FFT Batch No. 11778 FFT-1 O.R. # 73008 FFU Batch No. 11889 FFU-1 O.R. # 73052 FFV Batch No. 11888 FFV-1 O.R. # 73009 FFW Batch No. 11423 FFW-1 O.R. # 72211 FFX Batch No. 11401 FFX-1 O.R. # 71248 FFY Batch No. 11230 FFY-1 O.R. # 71609 FFZ Batch No. 13554 FFZ-1 O.R. # 77870 GGA Summary of Accounted Supplies Expense GGA-1 Batch No. 12424 OR. # 76602 "

CTA Case No. 8323 Page 40 Armadillo Holdings, Inc. vs. CIR DECISION GGA-2 SI # 116456 GGB Batch No. 12840 GGB S.I. # 117249 GGC Batch No. 12612 GGC-1 O.R. # 76947 GGC-2 SI # 116885 GGD Batch No. 13063 GGD-1 O.R. # 77446 GGD-2 SI # 117606 GGE Batch No. 12369 GGE-1 O.R. # 76603 GGE-2 SI # 116372 GGF Batch No. 11835 GGF-1 O.R. # 76167 GGF-2 SI # 115731 GGG Batch No. 11891 GGG-1 O.R. # 75799 GGG-2 SI # 114995 GGH Batch No. 11671 GGH-1 O.R. # 75794 GGH-2 SI # 115437 GGI Batch No. 11592 GGI-1 O.R. # 75760 GGJ Batch No. 11684 GGJ-1 S.I. # 114996 GGK Batch No. 11263 GGK-1 O.R. # 75412 GGK-2 SI # 114618 GGL Batch No. 12843 GGL-1 O.R. # 365799 GGM Batch No. 12918 GGM-1 O.R. # 359939 GGN Batch No. 13304 GGN-1 O.R. # 372724 GGO Batch No. 13535 GG0-1 O.R. # 375514 GGP Batch No. 13599 GGP-1 O.R. # 375513{

CTA Case No. 8323 Page 41 Armadillo Holdings, Inc. vs. CIR DECISION GGQ Batch No. 13764 GGQ-1 PR 00000009 GGR Batch No. 13763 GGR-1 SI # 310041080 GGS Batch No. 13762 GGS-1 SI # 310041145 GGT Batch No. 13972 GGT-1 SI # 310042647 GGU Batch No. 13971 GGU-1 SI # 310042696 GGU-2 OR# 376145 GGU-3 OR# 376140 GGV Batch No. 14000 GGV-1 O.R. # 376141 GGW Batch No. 11277 GGW-1 O.R. # 26937 GGX Batch No. 11399 GGX-1 O.R. # 27139 GGY Batch No. 11779 GGY-1 O.R. # 27331 GGZ Batch No. 12140 GGZ-1 O.R. # 28058 HHA Summary of Accounted Supplies HHA-1 Expense HHB Batch No. 12426 HHB-1 O.R. # 28314 HHC Batch No. 12865 HHC-1 O.R. # 28833 HHD Batch No. 13362 HHD-1 O.R. # 29536 HHE Batch No. 13313 HHE-1 O.R. # 29535 HHF Batch No. 13742 HHF-1 O.R. # 298... HHG Batch No. 13448 O.R. # 41975 Batch No. 13109(

CTA Case No. 8323 Page 42 Armadillo Holdings, Inc. vs. CIR DECISION HHG-1 O.R. # 42135 HHH Batch No. 12273 HHH-1 O.R. # 40377 HHI Batch No. 11841 HHI-1 O.R. # 39887 HHJ Batch No. 12849 HHJ-1 O.R. # 14644 HHK Batch No. 12615 HHK-1 Official Receipt in the amount of P3,880.05 HHL Batch No. 12636 HHM Batch No. 12417 HHM-1 Official Receipt in the amount of P7,918.66 HHN Batch No. 12543 HHO Batch No. 12388 HH0-1 Official Receipt in the amount of P1,774.02 HHP Batch No. 12141 HHP- 1 Official Receipt in the amount of P7,537.09 HHQ Batch No. 12070 HHQ-1 O.R. # 11379 HHR Batch No. 12103 HHR-1 O.R. # 10800 HHS Batch No. 11711 HHS-1 O.R. # 10719 HHT Batch No. 11651 HHT-1 O.R. # 10715 HHU Batch No. 11765 HHU-1 O.R. # 13189 HHV Batch No. 11545 HHV-1 O.R. # 9991 HHW Batch No. 11424 HHW-1 S.I. # 12698 HHX Batch No. 11400 HHX-1 O.R. # 9328 HHY Batch No. 13841 HHY-1 O.R. # 38633 (.

CTA �Case No. 8323 Page 43 Armadillo Holdings, Inc. vs. CIR DECISION HHZ Batch No. 13536 HHZ-1 O.R. # 37627 IIA Summary of Accounted Supplies Expense IIA-1 Batch No. 12774 IIB O.R. # 35664 IIB-1 Batch No. 12272 IIC O.R. # 35145 IIC-1 Batch No. 11862 IID O.R. # 33013 IID-1 Batch No. 11397 IIE O.R. # 31746 IIE-1 IIE-2 Supporting documents for input VAT IIF Batch No. 12540 IIF-1 O.R. # 6762 51 # 60127 IIG IIG-1 Batch No. 11672 IIG-2 51 # 1487 IIH Batch No. 13016 IIH-1 O.R. # 4519 51 # 1910 III III-1 Batch No. 13727 51 # 1686 IIJ IIJ-1 Batch No. 12260 O.R. # 4036 IIK IIK-1 Batch No. 11764 O.R. # 3932 IIL IIL-1 Batch No. 12703 O.R. # 60836 IIM IIM-1 Batch No. 12648 O.R. # 60136 IIN IIN-1 Batch No. 11796 O.R. # 59323 IIO II0-1 Batch No. 11797 5.1. # 66475 Batch No. 11576 O.R. # 58906(

CTA Case No. 8323 Page 44 Armadillo Holdings, Inc. vs. CIR DECISION IIP Batch No. 12046 IIP-1 O.R. # 4704 IIQ Batch No. 13583 IIQ-1 O.R. # 021030 IIR Batch No. 11986 IIR-1 O.R. # 016892 IIS Batch No. 13667-1 IIS-1 Batch No. 13667-2 IIS-2 O.R. # 021029 IIT Batch No. 13228 IIT-1 O.R. # 020405 IIU Batch No. 12109 IIU-1 O.R. # 025994 IIV Batch No. 12137-1 IIV-1 Batch No. 12137-2 IIV-2 O.R. # 18150 IIW Batch No. 11985 IIW-1 O.R. # 017379 IIX Batch No. 11984 IIX-1 O.R. # 017380 IIY Batch No. 11887 IIY-1 O.R. # 017381 IIZ Batch No. 11979 IIZ-1 O.R. # 016893 JJA Supporting documents for input VAT JJA-1 Batch No. 11843 JJB O.R. # 016890 JJB-1 Batch No. 11842 JJC O.R. # 016891 JJD Batch No. 11762 JJD-1 Batch No. 11676 JJE O.R. # 016858 JJE-1 Batch No. 11680 JJF O.R. # 016859 JJF-1 Batch No. 11677 O.R. # 024955( '

CTA Case No. 8323 Page 45 Armadillo Holdings, Inc. vs. CIR DECISION JJG Batch No. 11405 JJG-1 O.R. # 015960 JJH Batch No. 13970 JJH-1 O.R. # 5420 JJI Batch No. 13733 JJI-1 O.R. # 67219 JJJ Batch No. 12949 JJJ-1 O.R. # 64245 JJK Batch No. 13408 JJK-1 O.R. # 0206 JJL Batch No. 12146 JJL-1 S.I. # 2122 JJM Batch No. 12772 JJM-1 O.R. # 40916 JJN Batch No. 12775 JJN-1 S.I. # 61914 JJO Batch No. 11834 JJ0-1 Charge Invoice # 13557 JJP Batch No. 10527 JJP-1 S.I. # 20809 *JJQ Batch No. 13058 JJQ-1 O.R. # 364142 *JJR Batch No. 13071 JJR-1 S.I. # 310035674 *JJS Batch No. 13761 JJS-1 O.R. # 373571 JJT Supporting documents for input VAT JJU JJV O.R. #246836 JJW O.R. #252053 JJX O.R. #254439 JJY O.R. #257603 JJZ O.R. #258657 KKA Acct./Billing No. 44995492-4 KKB Acct./Billing No. 31367102-51 KKC Acct./Billing No. 31367803-51 KKD Acct./Billing No. 40238476-24 KKE Acct./Billing No. 31368818-51 KKF Acct./Billing No. 31366807-51 Acct./Billing No. 31366734-51 Acct./Billing No. 40235078-24C

CTA Case No. 8323 Page 46 Armadillo Holdings, Inc. vs. CIR DECISION KKG Acct./Billing No. 40235108-24 KKH Acct./Billing No. 31367013-51 KKI Acct./Billing No. 31368702-51 KKJ Acct./Billing No. 31367153-51 KKK Acct./Billing No. 31367544-51 KKL Acct./Billing No. 31366416-51 KKM Acct./Billing No. 31368621-51 KKN Acct./Billing No. 41450126-20 KKO Acct./Billing No. 31369423-51 KKP Acct./Billing No. 31366335-51 KKQ Acct./Billing No. 41450193-20 KKR Acct./Billing No. 31366602-51 KKS Acct./Billing No. 31365142-51 KKT Acct./Billing No. 31369555-51 KKU Acct./Billing No. 41450142-20 KKV Acct./Billing No. 31366661-51 KKW Acct./Billing No. 37474865-35 KKX Acct./Billing No. 31366408-51 KKY Acct./Billing No. 31369377-51 KKZ Acct./Billing No. 31366765-51 LLA Supporting documents for input VAT LLB LLC Acct./Billing No. 31364316-51 LLD Acct./Billing No. 31367234-51 LLE Acct./Billing No. 31367315-51 LLF Acct./Billing No. 44355507-6 LLG Acct./Billing No. 31368818-50 LLH Acct./Billing No. 31368702-50 LLI Acct./Billing No. 31367102-50 LU Acct./Billing No. 31367013-50 LLK Acct./Billing No. 44995492-3 LLL Acct./Billing No. 31367234-50 LLM Acct./Billing No. 31369555-50 LLN Acct./Billing No. 41450193-19 LLO Acct./Billing No. 31368621-50 LLP Acct./Billing No. 31367544-50 LLQ Acct./Billing No. 31367803-50 LLR Acct./Billing No. 31364316-50 LLS Acct./Billing No. 31367765-50 LLT Acct./Billing No. 31366661-50 LLU Acct./Billing No. 37474865-34 LLV Acct./Billing No. 31366807-50 LLW Acct./Billing No. 31366602-50 LLX Acct./Billing No. 31366734-50 LLY Acct./Billing No. 31369377-50 LLZ Acct./Billing No. 40235108-23 Acct./Billing No. 31366416-50 MMA Acct./Billing No. 31367315-50 MMB Supporting documents for input VAT Acct./Billing No. 31365142-50 Acct./Billing No. 31366408-50C

CTA Case No. 8323 Page 47 Armadillo Holdings, Inc. vs. CIR DECISION MMC Acct./Billing No. 41450142-19 MMD Acct./Billing No. 31366335-50 MME Acct./Billing No. 31365916-50 MMF Acct./Billing No. 40238476-23 MMG Acct./Billing No. 31367153-50 MMH Acct./Billing No. 44355507-5 MMI Acct./Billing No. 41450126-19 MMJ Acct./Billing No. 31369423-50 MMK Acct./Billing No. 31365142-49 MML Acct./Billing No. 31361315-49 MMM Acct./Billing No. 40235108-22 MMN Acct./Billing No. 44995492-2 MMO Acct./Billing No. 31369377-49 MMP Acct./Billing No. 31367102-49 MMQ Acct./Billing No. 41450193-18 MMR Acct./Billing No. 31366807-49 MMS Acct./Billing No. 31367803-49 MMT Acct./Billing No. 31366661-49 MMU Acct./Billing No. 31367765-49 MMV Acct./Billing No. 37474865-33 MMW Acct./Billing No. 41450142-18 MMX Acct./Billing No. 40238476-22 MMY Acct./Billing No. 31367153-49 MMZ Acct./Billing No. 31368818-49 NNA Supporting documents for input VAT NNB NNC Acct./Billing No. 44355507-4 NND Acct./Billing No. 31365916-49 NNE Acct./Billing No. 31361544-49 NNF Acct./Billing No. 31364316-49 NNG Acct./Billing No . 31366734-49 NNH Acct./Billing No. 31369423-49 NNI Acct./Billing No. 31366408-49 NNJ Acct./Billing No. 31366335-49 NNK Acct./Billing No. 41450126-18 NNL Acct./Billing No. 31367013-49 NNM Acct./Billing No. 31369555-49 NNN Acct./Billing No. 31368621-49 NNO Acct./Billing No. 31368702 -49 NNP Acct./Billing No. 31366602-49 NNQ Acct./Billing No. 31366416-49 NNR Acct./Billing No. 31367234-49 NNS Acct./Billing No. 31367544-47 NNT Acct./Billing No. 31367102-47 NNU Acct./Billing No. 31369555-47 NNV Acct./Billing No. 31367315-47 NNW Acct./Billing No. 31368621-47 NNX Acct./Billing No. 31364316-47 NNY Acct./Billing No. 31368702-47 NNZ Acct./Billing No. 44995492-1 Acct./Billing No. 31365916-47 Acct./Billing No. 40235108-20(

CTA Case No. 8323 Page 48 Armadillo Holdings, Inc. vs. CIR DECISION OOA Supporting documents for input VAT OOB OOC Acct./Billing No. 31366408-47 OOD Acct./Billing No. 31365142-47 OOE Acct./Billing No. 31366416-47 OOF Acct./Billing No. 40238476-20 OOG Acct./Billing No. 37474865-31 OOH Acct./Billing No. 31367013-47 OOI Acct./Billing No. 31367544-48 OOJ Acct./Billing No. 31366335-48 OOK Acct./Billing No. 31369423-47 OOL Acct./Billing No. 31366335-47 OOM Acct./Billing No. 31369377-47 OON Acct./Billing No. 31366602-47 000 Acct./Billing No. 31367803-47 OOP Acct./Billing No. 31366807-47 OOQ Acct./Billing No. 31367234-47 OOR Acct./Billing No. 41450142-16 005 Acct./Billing No. 41450126-16 OOT Acct./Billing No. 41450193-16 OOU Acct./Billing No. 31367153-47 OOV Acct./Billing No. 31366734-47 OOW Acct./Billing No. 31366661-47 OOX Acct./Billing No. 31368818-47 OOY Acct./Billing No. 31367013-48 OOZ Acct./Billing No. 31366734-48 Acct./Billing No. 31365916-48 PPA Acct./Billing No. 31364316-48 PPB PPC Supporting documents for input VAT PPD PPE Acct./Billing No. 31367102-48 PPF Acct./Billing No. 37474865-32 PPG Acct./Billing No. 31368702-48 PPH Acct./Billing No. 31366416-48 PPI Acct./Billing No. 31367153-48 PPJ Acct./Billing No. 31367315-48 PPK Acct./Billing No. 40235108-21 PPL Acct./Billing No. 31366807-48 PPM Acct./Billing No. 31366602-48 PPN Acct./Billing No. 31367234-48 PPO Acct./Billing No. 31363423-48 PPP Acct./Billing No. 31365142-48 PPQ Acct./Billing No. 40238476-21 PPR Acct./Billing No. 41450193-17 PPS Acct./Billing No. 31366661-48 PPT Acct./Billing No. 41450142-17 PPU Acct./Billing No. 31366408-48 PPV Acct./Billing No. 31368621-48 PPW Acct./Billing No. 31367765-48 Acct./Billing No. 31369555-48 Acct./Billing No. 31367803-48 Acct./Billing No. 31369377-48 Acct./Billing No. 41450126-17(

CTA Case No. 8323 Page 49 Armadillo Holdings, Inc. vs. CIR DECISION PPX Acct./Billing No. 44355507-3 PPY Acct./Billing No. 31368818-48 PPZ Acct./Billing No. 31367544-52 QQA Supporting documents for input VAT QQB QQC Acct./Billing No. 40238476-25 QQD Acct./Billing No. 31367765-52 QQE Acct./Billing No. 31366602-52 QQF Acct./Billing No. 31368702-52 QQG Acct./Billing No. 44355507-7 QQH Acct./Billing No. 41450126-21 QQI Acct./Billing No. 31364316-52 QQJ Acct./Billing No. 44995492-5 QQK Acct./Billing No. 31367102-52 QQL Acct./Billing No. 31366734-52 QQM Acct./Billing No. 41450193-21 QQN Acct./Billing No. 31367315-52 QQO Acct./Billing No. 31365142-52 QQP Acct./Billing No. 31369555-52 QQQ Acct./Billing No. 31367803-52 QQR Acct./Billing No. 31368621-52 QQS Acct./Billing No. 31366661-52 QQT Acct./Billing No . 31368818-52 QQU Acct./Billing No. 31366416-52 QQV Acct./Billing No. 37474865-36 QQW Acct./Billing No. 31366408-52 QQX Acct./Billing No. 31366335-52 QQY Acct./Billing No. 31369377-52 QQZ Acct./Billing No. 31367013-52 Acct./Billing No. 31365916-51 RRA Acct./Billing No. 31367153-52 RRB RRC Supporting documents for input VAT RRD RRE Acct./Billing No. 31365916-52 RRF Acct./Billing No. 31366807 - 52 RRG Acct./Billing No. 31367234-52 RRH Acct./Billing No. 41450142-21 RRI Acct./Billing No. 31367803-53 RRJ Acct./Billing No. 31369377-53 RRK Acct./Billing No. 40238476-26 RRL Acct./Billing No. 41450142-22 RRM Acct./Billing No. 31369555-53 RRN Acct./Billing No. 31366335-53 RRO Acct./Billing No. 31367013-53 RRP Acct./Billing No. 31368818-53 RRQ Acct./Billing No. 31366408-53 RRR Acct./Billing No. 31366661-53 RRS Acct./Billing No. 31368702-53 Acct./Billing No. 31369423-53 Acct./Billing No. 31366416-53 Acct./Billing No. 31367153-53 Acct./Billing No. 31366602-53!

CTA Case No. 8323 Page 50 Armadillo Holdings, Inc. vs. CIR DECISION RRT Acct./Billing No. 31366734-53 RRU Acct./Billing No. 41450193-22 RRV Acct./Billing No. 31366807-53 RRW Acct./Billing No. 31365916-53 RRX Acct./Billing No. 31367315-53 RRY Acct./Billing No. 44995492-6 RRZ Acct./Billing No. 31368621-53 SSA Supporting documents for input VAT SSB SSC Acct./Billing No. 44995492-7 SSD Acct./Billing No. 31366416-54 SSE Acct./Billing No. 31367234-54 SSF Acct./Billing No. 44355507-9 SSG Acct./Billing No. 31368621-54 SSH Acct./Billing No. 40238476-27 SSI Acct./Billing No. 41450142-23 SSJ Acct./Billing No. 31369423-54 SSK Acct./Billing No. 31366408-54 SSL Acct./Billing No. 41450193-23 SSM Acct./Billing No. 31367153-54 SSN Acct./Billing No. 31368702-54 SSO Acct./Billing No. 31367544-54 SSP Acct./Billing No. 31367102-54 SSQ Acct./Billing No. 31367803-54 SSR Acct./Billing No. 31368818-54 SSS Acct./Billing No. 40235108-28 SST Acct./Billing No. 40235078-28 SSU Acct./Billing No. 37189184-40 SSV Acct./Billing No. 40235108-27 SSW Acct./Billing No. 31369555-54 SSX Acct./Billing No. 31367013-54 SSY Acct./Billing No. 31366734-54 SSZ Acct./Billing No. 31369377-54 Acct./Billing No. 31364316-54 TTA Acct./Billing No. 31366602-54 TTB TTC Supporting documents for input VAT TTD TTE Acct./Billing No. 31366807-54 TTF Acct./Billing No. 31367315-54 TTG Acct./Billing No. 31365142-54 TTH Acct./Billing No. 101215743-112 TTI Acct./Billing No. 101215780-112 TTJ Acct./Billing No. 101215720-112 TTK Acct./Billing No. 101215651-112 TTL Acct./Billing No. 101215800-112 TTM Acct./Billing No. 101416934-109 TTN Acct./Billing No. 31366807-55 Acct./Billing No. 31367315-55 Acct./Billing No. 31366734-55 Acct./Billing No. 31365142-55 Acct./Billing No. 31367544-55C

CTA Case No. 8323 Page 51 Armadillo Holdings, Inc. vs. CIR DECISION TTO Acct./Billing No. 31367803-55 TTP Acct./Billing No. 31369377-55 TTQ Acct./Billing No. 31368621-55 TTR Acct./Billing No. 31366602-55 TTS Acct./Billing No . 31368818-55 TTT Acct./Billing No. 31367153-55 TTU Acct./Billing No. 810012395-0 TTV Acct./Billing No. 31369423-55 TTW Acct./Billing No. 31364316-55 TTX Acct./Billing No. 31366335-55 TTY Acct./Billing No. 31368702-55 TTZ Acct./Billing No. 40238476-28 UUA Supporting documents for input VAT UUB UUC Acct./Billing No. 41450193-24 UUD Acct./Billing No. 41450126-24 UUE Acct./Billing No. 37474865-39 UUF Acct./Billing No. 31366408-55 UUG Acct./Billing No. 44995492-8 UUH Acct./Billing No. 31366661-55 UUI Acct./Billing No. 41450142- 24 UUJ Acct./Billing No. 31367234-55 UUK Acct./Billing No. 31366416-55 UUL Acct./Billing No. 31369555-55 UUM Acct./Billing No. 31367102-55 UUN Acct./Billing No. 31368621-56 UUO Acct./Billing No. 31367013-55 UUP Acct./Billing No. 41450142-25 UUQ Acct./Billing No. 31366661-56 UUR Acct./Billing No. 31365142-56 UUS Acct./Billing No. 31367153-56 UUT Acct./Billing No. 101215720-113 UUU Acct./Billing No. 101215780-113 UUV Acct./Billing No. 31368702-56 UUW Acct./Billing No. 31366807-56 UUX Acct./Billing No. 31367234-56 UUY Acct./Billing No. 31366408-56 UUZ Acct./Billing No. 31369423-56 Acct./Billing No. 44995492-9 VVA Acct./Billing No. 31369555-56 VVB VVC Supporting documents for input VAT VVD VVE Acct./Billing No. 31367315-56 VVF Acct./Billing No. 810012395-71 VVG Acct./Billing No. 101215800- 113 VVH Acct./Billing No. 31366416-56 VVI Acct./Billing No. 31367102-56 VVJ Acct./Billing No. 41450193-25 Acct./Billing No. 31368818-57 Acct./Billing No. 31368818-56 Acct./Billing No. 31368818-57 Acct./Billing No. 31370022- 55C

CTA Case No. 8323 Page 52 Armadillo Holdings, Inc. vs. CIR DECISION VVK Acct./Billing No. 31370022-54 VVL Acct./Billing No. 31370022-49 VVM Acct./Billing No. 41450126-23 VVN Acct./Billing No. 31367544-53 VVO Acct./Billing No. 31367102-53 VVP Acct./Billing No. 31365142-53 VVQ Acct./Billing No. 31364316-53 VVR Acct./Billing No. 31367102-53 VVS Acct./Billing No. 31370022-57 VVT Acct./Billing No. 31370022-56 VVU Acct./Billing No. 31370022-53 VVV Acct./Billing No. 31370022-52 VVW OR # 2009585 VVX OR# 1800322 VVY Acct./Billing No. 31370022-48 VVZ Acct./Billing No. 31370022-47 WWA Supporting documents for input VAT WWB Acct./Billing No. 31366734-57 wwc Acct./Billing No. 41450142-26 Acct./Billing No. 31366408-57 WWD Acct./Billing No. 31366602-57 WWE Acct./Billing No. 31365142-57 WWF Acct./Billing No. 31367315-57 WWG Acct./Billing No. 31366807-57 WWH Acct./Billing No. 31368702-0 WWI Acct./Billing No. 31367153-57 WWJ Acct./Billing No. 31367234-57 WWK Acct./Billing No. 31364316-57 WWL Acct./Billing No. 31366661-57 WWM Acct./Billing No. 44995492-10 WWN Acct./Billing No. 31366416-57 Acct./Billing No. 31367544-57 wwo Acct./Billing No. 31368621-57 Acct./Billing No. 37474865-41 WWP Acct./Billing No. 31369555-57 WWQ Acct./Billing No. 31367102-57 WWR Acct./Billing No. 31367013-57 Acct./Billing No. 41454806-26 wws Acct./Billing No. 31366688-57 Acct./Billing No. 44355507-12 WWT Acct./Billing No. 47083885-1 Acct./Billing No. 31369423-57 wwu Acct./Billing No. 40238476-30 wwv www Supporting documents for input VAT wwx Acct./Billing No. 41450193-26 WWY Acct./Billing No. 31369377-57 Acct./Billing No. 41450126-26 wwz Acct./Billing No. 31366602-564 XXA XXB XXC XXD

CTA Case No. 8323 Page 53 Armadillo Holdings, Inc. vs. CIR DECISION XXE Acct./Billing No. 37189184-41 XXF Acct./Billing No. 40235108-29 XXG Acct./Billing No. 41454806-25 XXH Acct./Billing No. 40238476-29 XXI Acct./Billing No. 45737659-6 XXJ Acct./Billing No. 31366688-56 XXK Acct./Billing No. 44355507-11 XXL Acct./Billing No. 40235078-30 XXM Acct./Billing No. 40235108-30 XXN Acct./Billing No. 31366335-56 XXO Acct./Billing No. 41450126-25 XXP Acct./Billing No. 31369377-56 XXQ Acct./Billing No. 31366734-56 XXR Acct./Billing No. 31367013-56 XXS Acct./Billing No. 101215743-113 XXT Acct./Billing No. 101416934-110 XXU Acct./Billing No. 31367544-56 XXV Acct./Billing No. 40235078-29 XXW Acct./Billing No. 31364316-56 XXX Acct./Billing No. 37474865-40 XXY Acct./Billing No. 101215651-113 XXZ Invoice # 15009874687 YYA Invoices - Supporting documents for YYB input VAT YYC YYD Invoice # 15009899304 YYE Invoice # 15009899334 YYF Invoice # 15009899332 YYG Invoice # 15009899328 YYH Invoice # 15009899331 YYI Invoice # 15009899326 YYJ Invoice # 15009978625 YYK Invoice # 15010003268 YYL Invoice # 15010003270 YYM Invoice # 15009899333 YYN Invoice # 15010003269 YYO Invoice # 15010003262 YYP Invoice # 15010003267 YYQ Invoice # 15010003240 YYR Invoice # 15010003264 YYS Invoice # 15010083137 YYT Invoice # 15010107748 YYU Invoice # 15010107776 YYV Invoice # 15010107775 YYW Invoice # 15010107772 YYX Invoice # 15010107770 YYY Invoice # 15010107777 YYZ Invoice # 15010107778 Invoice # 15010742325 Invoice # 15010742327 Invoice # 15010742328 Supporting documents for input VAT4'

CTA Case No . 8323 Page 54 Armadillo Holdings, Inc. vs. CIR DECISION ZZA Invoice No. 15010742322 ZZB Invoice No. 15010742320 Invoice No. 15010742326 zzc Invoice No. 15010635660 Invoice No. 15010717721 ZZD Invoice No. 15010742298 ZZE Invoice No. 15010635657 ZZF Invoice No. 15010635658 ZZG Invoice No. 15010635659 ZZH Invoice No. 15010635652 ZZI Invoice No. 15010611049 ZZJ Invoice No. 15010635654 ZZK Invoice No. 15010529303 ZZL Invoice No. 15010529304 ZZM Invoice No. 15010635630 ZZN Invoice No. 15010529296 Invoice No. 15010529301 zzo Invoice No. 15010529302 Invoice No. 15010504705 ZZP Invoice No. 15010529274 ZZQ Invoice No. 15010529298 ZZR Batch Entry 13593 zzs Batch Entry 12271 ZZT Sales Invoice No. 60741 zzu 1471 Entry: 2 Armadillo Official Receipt No. 2272 zzw 1473 Entry: 1 zzx Armadillo Official Receipt No. 2274 ZZX-1 Supporting documents (Summary of 2006 Accounts Receivable collected ZZY in 2007 - with supporting documents) ZZY-1 1474 Entry: 1 zzz Armadillo Official Receipt No. 2275 ZZZ-1 1476 Entry: 1 Armadillo Official Receipt No. 2279 AAAA AAAA-1 1477 Entry: 2 Armadillo Official Receipt No. 2281 AAAB AAAB-1 1478 Entry: 1 Armadillo Official Receipt No. 2282 AAAC AAAC-1 1480 Entry: 1 Armadillo Official Receipt No. 2291 AAAD AAAD-1 1483 Entry: 11 AAAE AAAE-1 AAAF

CTA Case No. 8323 Page 55 Armadillo Holdings, Inc. vs. CIR DECISION AAAF-1 Armadillo Official Receipt No. 2294 AAAG 1486 Entry: 1 AAAG-1 Armadillo Official Receipt No. 2297 AAAH 1487 Entry: 1 AAAH-1 Armadillo Official Receipt No. 2298 AAAI 1489 Entry: AAAI-1 Armadillo Official Receipt No. 2301 AAAJ 1490 Entry: 1 AAAJ-1 Armadillo Official Receipt No. 2302 AAAK 1493 Entry: 1 AAAK-1 Armadillo Official Receipt No. 2305 AAAL 1497 Entry: 2 AAAL-1 Armadillo Official Receipt No. 2309 AAAM 1506 Entry: 2 AAAM-1 Armadillo Official Receipt No. 2314 AAAN Batch Entry No. 12043 AAAN-1 O.R. No. 0860 AAAN-2 Sales Invoice No. 56525 AAAO Batch Entry No. 11773 AAA0-1 O.R. # 6222 AAAP Batch Entry No. 13371 AAAP-1 O.R. No. 2745 AAAQ Batch Entry No. 12074 AAAQ-1 O.R. # 2557 AAAR Batch Entry No. 11572 AAAR-1 S.I. # 3162 AAAS Batch Entry No. 12539 AAAS-1 S.I. # 3409 AAAT Vehicle Sales Invoice #84293 AAAU Summary of Payment recorded to Market Research AAAU-1 Signature AAAV Summary of Payment to Market Place Christian Church Multi-Purpose Cooperative AAAV-1 Signature AAAW O.R. # 2911(

CTA Case No. 8323 Page 56 Armadillo Holdings, Inc. vs. CIR DECISION AAAX AHI's summary for the increase of PPE signed AAAX-1 by authorized representative Signature ecce Final Amended !CPA Report dated 12 CCCC-1 September 2012 DDDD Signature of the !CPA DDDD- 1 Amended !CPA Affidavit dated September 18, 2012 !CPA Signature On March 14, 2013, respondent filed her Formal Offer of Evidence, 36 offering Exhibits "1" to "14-a", inclusive of sub-markings. In response, petitioner filed its Comment (to Respondent's Formal Offer of Evidence dated March 12, 2013)37. In its April 19, 2013 Resolution38, the Court admitted all exhibits offered by respondent and further ordered both parties to submit their memoranda within thirty (30) days. The documentary evidence formally offered by respondent are as follows: Exhibit Description 1 1-a Revalidation/Reassignment Notice Name and signature of Regional Director 2 Alfredo V. Misajon 2-a 2-b Memorandum Report of Revenue Officer Liza C. Dimaya 3 Name and signature of Revenue Officer Liza C. Dimaya 3-a Name and signature of Group Supervisor Rebecca Victoria B. Martinez 4 Preliminary Assessment Notice dated December 28, 2010 and Details of Discrepancies Rubber Stamp Receipt dated December 29, 2010 Tentative Financial Statements of Armadillo Holdings, Inc. (December 31, 2007 and 2006),( 36 Docket, pp. 425-428. 37 Docket, pp . 475 - 477 . 38 Docket, pp. 480-481.

CTA Case No. 8323 Page 57 Armadillo Holdings, Inc. vs. CIR DECISION 5 Annual Income Tax Return for taxable year 2007 6 7 Alphalist of Employees as of December 31, 2007 8 Alphalist of Payees subject to Expanded 8-a Withholding Tax as of December 31, 2007 9 Memorandum of Assignment 10 Name and signature of Revenue District Officer Corazon M. Montes 11 11 - a Certificate of Appearance dated June 13, 2011 11- b Notation on the Certificate of Appearance 12 dated June 13, 2011 13 Memorandum Report of Revenue Officer 13-a Narissa B. Ty 14 Name and signature of Revenue Officer 14-a Narissa B. Ty Name and signature of Group Supervisor Rebecca Victoria B. Martinez Final Decision on Disputed Assessment dated July 18, 2011 with Details of Discrepancies Judicial Affidavit of Liza C. Dimaya Name and signature of Liza C. Dimaya Judicial Affidavit of Narissa B. Ty Name and signature of Narissa B. Ty On July 16, 2013, the case was submitted for decision considering the Memorandum (for the Petitioner)39 and respondent's Memorandum40 both filed on June 28, 2013. 41 The parties submitted the following issues42 for this Court's resolution: "1. Whether or not the Formal Assessment Notice and Formal Letter of Demand issued against petitioner covering the taxable year 2007 is valid. ( 39 Docket, pp. 488-512. 40 Docket, pp. 513- 521. 41 Docket, p. 524. 42 Docket, pp . 159-160.

CTA Case No. 8323 Page 58 Armadillo Holdings, Inc. vs. CIR DECISION 2. Whether or not respondent has observed due process in the issuance of the Assessment Notice/Formal Letter of Demand against petitioner. 3. Whether or not the right of respondent to assess petitioner for alleged deficiency Value Added Tax and Withholding Tax subject matter of this case has prescribed. 4. Whether or not petitioner is liable for alleged DEFICIENCY in Income Tax in the amount of Php23,708,554.47, Value Added Tax in the amount of Php7 ,930,740. 73 and Expanded Withholding Tax in the amount of Php58,858.30, all covering taxable year 2007. 5. Whether or not the Formal Assessment Notice has become final and executory." The enumerated issues boil down to whether petitioner is liable for deficiency income tax, VAT, and EWT for the taxable year 2007. However, the Court shall first address the question of prescription. Section 203 of the National Internal Revenue Code (NIRC) of 1997, as amended, mandates that respondent should issue an assessment for deficiency taxes within three (3) years from the last day prescribed by law to file the tax return or the actual date of filing of such return, whichever comes later. Any assessment notice issued beyond this three-year prescriptive period shall not be valid save in certain cases, to wit: "SEC. 203. Period of Limitation Upon Assessment and Collection. - Except as provided in Section 222, internal revenue taxes shall be assessed within three (3) years after the last day prescribed by law for the filing of the return, and no proceeding in court without assessment for the collection of such taxes shall be begun after the expiration of such period: Provided, That in a case where a return is file <t("

CTA Case No. 8323 Page 59 Armadillo Holdings, Inc. vs. CIR DECISION beyond the period prescribed by law, the three (3)- year period shall be counted from the day the return was filed. For purposes of this Section, a return filed before the last day prescribed by law for the filing thereof shall be considered as filed on such last day." (Emphasis supplied) Since the instant case involves deficiency income tax, VAT and EWT, the basis for the three-year prescriptive period varies accordingly. Income Tax As to the income tax, Section 77(B) of the NIRC of 1997, as amended, provides that the three-year period shall commence from the fifteenth (15th) day of April, or the fifteenth (15th) day of the fourth (4th) month following the close of the fiscal year, as the case may be. "SEC. 77. Place and Time of Filing and Payment of Quarterly Corporate Income Tax. - XXX XXX XXX (B) Time of Filing the Income Tax Return. - The corporate quarterly declaration shall be filed within sixty (60) days following the close of each of the first three (3) quarters of the taxable year. The final adjustment return shall be filed on or before the fifteenth (15th) day of April, or on or before the fifteenth (15th) day of the fourth (4th) month following the close of the fiscal year, as the case may be." Value-added Tax In the case of VAT, the filing of Quarterly VAT Returns must be made within twenty-five (25) days after the close of each taxable quarter prescribed for each taxpayer. Hence, if the return was filed earlier than the last day allowed by law, the period to assess shall still be counted from the last day prescribed by law for filing of the return. However, if the(

CTA Case No. 8323 Page 60 Armadillo Holdings, Inc. vs. CIR DECISION return was filed beyond the period prescribed by law, the three-year period shall be counted from the day the return was filed. Section 114(A) of the NIRC of 1997 provides: "SEC. 114. Return and Payment of Value-added Tax.- (A) In General. - Every person liable to pay the value-added tax imposed under this Title shall file a quarterly return of the amount of his gross sales or receipts within twenty-five (25) days following the close of each taxable quarter prescribed for each taxpayer: Provided, however, That VAT-registered persons shall pay the value-added tax on a monthly basis." Expanded Withholding Tax Section 58 of the NIRC of 1997, as amended, provides that: "SEC. 58. Returns and Payment of Taxes Withheld at Source. - (A) Quarterly Returns and Payments of Taxes Withheld. - Taxes deducted and withheld under Section 57 by withholding agents shall be covered by a return and paid to, except in cases where the Commissioner otherwise permits, an authorized Treasurer of the city or municipality where the withholding agent has his legal residence or principal place of business, or where the withholding agent is a corporation, where the principal office is located. The taxes deducted and withheld by the withholding agent shall be held as a special fund in trust for the government until paid to the collecting officers. The return for final withholding tax shall be filed and the payment made within twenty-five (25) days from the close of each calendar quarter, while the return for creditable withholding taxes shall be filed.{ ' olo-

CTA Case No. 8323 Page 61 Armadillo Holdings, Inc. vs. CIR DECISION and the payment made not later than the last day of the month following the close of the quarter during which withholding was made: Provided, That the Commissioner, with the approval of the Secretary of Finance, may require these withholding agents to pay or deposit the taxes deducted or withheld at more frequent intervals when necessary to protect the interest of the government." Further, Sections 2.58(A)(2) and 2.81 of Revenue Regulations No. 2-9843 dated April 17, 1998, as amended by Revenue Regulations No. 06-01 44 dated July 31, 2001, and Revenue Regulations No. 17-0345 dated March 31, 2003 provide for the period for filing the required returns, to wit: "REVENUE REGULATIONS NO. 06-01 XXX XXX XXX SECTION 4. Time for Filing of Withholding Tax and Value-Added Tax Returns and the Payment of Taxes Due Thereon. - The time for filing of the various tax returns as indicated below and the payment of the taxes due thereon shall be revised in accordance with the appropriate amendments to the existing regulations, as presented below.�. 43 Implementing Republic Act No. 8424, "An Act Amending The National Internal Revenue Code, as Amended, "Relative to the Withholding on Income Subject to the Expanded Withholding Tax and Final Withholding Tax, Withholding of Income Tax on Compensation, Withholding of Creditable Value-Added Tax and Other Percentage Tax". 44 Amending Pertinent Provisions of Revenue Regulations Nos. 1-98, 2-98, as Amended, and 7-95, as Amended, and Revenue Memorandum Circular No. 1-98 Relative to the Inclusion of Additional Taxpayers to be Subject to Final Withholding Tax, Revision of the Withholding Tax Rates on Certain Income Payments Subject to Creditable Withholding Tax, Time for the Filing of Various Tax Returns and Payment of the Taxes Due Thereon and Others. 45 Amending Further Pertinent Provisions of Revenue Regulations No. 2-98, as Amended, Providing for Additional Transactions Subject to Creditable Withholding Tax; Re-Establishing the Policy that the Capital Gains Tax on the Sale, Exchange or Other Disposition of Real Property Classified as Capital Assets Shall be Collected as a Final Withholding Tax, Thereby Further Amending Revenue Regulations Nos. 8-98 and 13-99, as Amended by Revenue Regulations No. 14-2000; and for Other Purposes.

CTA Case No. 8323 Page 62 Armadillo Holdings, Inc. vs. CIR DECISION (1) Sections 2.58(A)(2) and 2.81 of Revenue Regulations No. 2-98, as amended, are hereby further amended to read as follows: XXX XXX XXX 'SECTION 2.81. FILING OF RETURN AND PAYMENT OF INCOME TAX WITHHELD ON COMPENSATION (FORM NO. 1601). - Every person required to deduct and withhold the tax on compensation, including large taxpayers as determined by the Commissioner, shall make a return and pay such tax on or before the 10th day of the month following the month in which withholding was made to any authorized agent bank within the Revenue District Office (ROO) or in places where there are no agent banks, to the Revenue District Officer of the City or Municipality where the withholding agent/employer's legal residence or place of business or office is located; provided, however, that taxes withheld from the last compensation (December) for the calendar year shall be paid not later than January 15 of the succeeding year; Provided, however, that with respect to taxpayers, whether large or non-large, who availed of the EFPS, the deadline for electronically filing the aforesaid withholding tax return and paying the tax due thereon via the EFPS shall be five (5) days later than the deadlines set above.'" "REVENUE REGULATIONS NO. 17-03 XXX XXX XXX SECTION 5. Returns and Payments of Taxes Withheld at Source. - Section 2.58 of Revenue Regulations No. 2-98, as amended, is hereby further amended to read as follows: 'Sec. 2.58. RETURNS AND PAYMENT OF TAXES WITHHELD AT SOURCE

CTA Case No. 8323 Page 63 Armadillo Holdings, Inc. vs. CIR DECISION (A) Monthly return and payment of taxes withheld at source. - XXX XXX XXX (2) WHEN TO FILE - (a) For both large and non-large taxpayers, the withholding tax return, whether creditable or final (including final withholding taxes on interest from any currency bank deposit and yield or any other monetary benefit from deposit substitutes and from trust funds and similar arrangements) shall be filed and payments should be made, within ten (10) days after the end of each month, except for taxes withheld for the month of December of each year, which shall be filed on or before January 15 of the following year; and except for the final capital gains tax on the sale or other onerous disposition of real property considered as capital asset which must be taken/withheld from the seller by the buyer and remitted within thirty (30) days from the date of notarization of the transfer document to the collecting agent of the RDO having jurisdiction over the place where the property is located. Nonetheless, in case of disposition of real property classified as capital asset by an individual to the government, the tax to be imposed shall be determined either under the normal income tax rate imposed in Sec. 24(A) or under a final capital gains tax of six percent (6�/o) imposed under Sec. 24(0)(1) of the Code, at the option of the taxpayer-seller. Thus, if the seller chooses the first option, the buyer does not have to withhold the six percent (6�/o) final capital gains tax but no Certificate Authorizing Registration shall be issued for the transaction until the seller or the buyer shows the seller's filed income tax return reflecting the result of the subject real estate transaction. (b) With respect, however, to taxpayers, whether large or non-large, who availed of the("

CTA Case No. 8323 Page 64 Armadillo Holdings, Inc. vs. CIR DECISION electronic filing and payment system (EFPS), the deadline for electronically filing the applicable withholding tax returns and paying the taxes due thereon via the EFPS shall be five (5) days later than the deadlines set above, unless the EFPS regulations provide for different deadline dates and except for the final capital gains tax on the sale, barter or exchange of real property where the law fixes a definite deadline for the payment thereof." From the foregoing, the basis of the three-year prescriptive period is reckoned on the tenth (lOth) day of the month following the month the withholding was made, except for taxes withheld for the month of December which shall be filed and paid on or before January 15 of the succeeding year or the actual date of filing of such return, whichever comes later. The table below will help shed light into the reckoning date of the three-year period to assess: Deficiency Last Day to File Actual Date of Last Day to Taxes Return Assess IT Filing April 15 2008 April 15 200846 April 15, 2011 VAT April 25 2007 April 24 200747 April 25, 2010 July 25, 2007 July 23, 200748 July 25 2010 EWT October 25 2007 October 23 200749 October 25, 2010 January 25, 2008 January 25, 200850 January 25 2011 February 10, 2007 February 12 200751 February 12 2010 March 10 2007 March 12 200752 March 12, 2010 April 10 2007 April 10 200753 April 10, 2010 May 10, 2007 May 11 200754 May 11 2010 June 10 2007 June 12, 200755 June 12 2010 July 10 2007 July 10, 200756 July 10 2010 August 10, 2007 August 8 200757 August 10 2010 September 10, 2007 September 7, 200758 September 10 2010 46 Exhibit " KK" . 47 Exhibit " AA". 48 Exhibit " BB. 49 Exhibit " CC". 50 Exhibit " DD". 51 BIR Form No. 1601 - E, BIR Records, p. 21. 52 BIR Form No . 1601 - E, BIR Records, p. 25. 53 BIR Form No. 1601 - E, BIR Records, p. 31. 54 BIR Form No. 1601-E, BIR Records, p. 37 . 55 BIR Form No. 1601-E, BIR Records, p. 44. 56 BIR Form No. 1601 - E, BIR Records, p. 48. 57 BIR Form No. 1601 - E, BIR Records, p. 52.

CTA Case No. 8323 Page 65 Armadillo Holdings, Inc. vs. CIR DECISION October 10 2007 October 9, 200759 October 10, 2010 November 10 2007 November 9, 200760 November 10 2010 December 10, 2007 December 7 200761 December 10 2010 January 11, 200862 January 15, 2008 January 15, 2011 Respondent issued and sent the Formal Letter of Demand/Final Assessment Notice on January 14, 2011, and since assessment is deemed made when notice to this effect is released, mailed or sent to the taxpayer, 63 the three-year period within which to asses a taxpayer shall be counted therefrom. Consequently, only the income tax, the value- added tax for the 4th quarter, and the expanded withholding tax for the month of December can be the proper subject of respondent's assessments. In the case of Commissioner of Internal Revenue vs. FMF Development Corporation, 64 the Supreme Court held that: "Under Section 203 of the NIRC, internal revenue taxes must be assessed within three years counted from the period fixed by law for the filing of the tax return or the actual date of filing, whichever is later. This mandate governs the question of prescription of the government's right to assess internal revenue taxes primarily to safeguard the interests of taxpayers from unreasonable investigation. Accordingly, the government must assess internal revenue taxes on time so as not to extend indefinitely the period of assessment and deprive the taxpayer of the assurance that it will no longer be subjected to further investigation for taxes after the expiration of reasonable period of time." (Emphasis supplied) {. 58 SIR Form No. 1601 - E, SIR Records, p. 56. 59 SIR Form No. 1601 - E, SIR Records, p. 60. 60 SIR Form No. 1601 - E, SIR Records, p. 64. 61 SIR Form No . 1601 - E, SIR Records, p. 68. 62 SIR Form No. 1601-E, SIR Records, p. 72 . 63 Basi/an Estates, Inc. vs. The Commissioner of Internal Revenue, et. at., G.R. No. L- 22492, September 5, 1967 . 64 G.R. No. 167765, June 30, 2008 .

CTA Case No. 8323 Page 66 Armadillo Holdings, Inc. vs. CIR DECISION The Court shall now proceed to determine the merits of the assessments involving petitioner's deficiency income tax for the year 2007 and deficiency VAT for the fourth quarter of 2007. In respondent's FDDA65 dated July 18, 2011, petitioner was found liable for the following deficiency internal revenue taxes for the taxable year 2007 in the total amount of P31,698,153.50, inclusive of 20�/o interest per annum up to August 31, 2011: TAX TYPE BASIC INTEREST TOTAL Income Tax P14,153 782.11 P9,554 772.36 p 23,708 554.47 VAT 4,612 365.15 3,318,375.58 7,930 740.73 EWT 34 122.30 24,736.00 58 858.30 P31,698,153.50 I. DEFICIENCY INCOME TAX- P23,708,554.47 Respondent computed the deficiency income tax in the amount of P23,708,554.47 as follows: Taxable Income (Loss) per Return p (1,222,485.8Q} Add: Adjustments Disallowed salaries and wages due to non- p 1,331,450.31 withholding of tax Unaccounted income payments 20 880,331.95 Undeclared revenue Total 6 043,841.73 28 255,623.99 Add: Net operating loss carry-over (NOLCO) p 27 033,138.19 Total Adjusted taxable income 1,222,485.80 Tax Due p 28,255,623.99 Less: Tax Credits/Payments per Return Prior year's excess credits p 9,889,468.40 Creditable tax withheld per BIR Form No. 2307 p 19,672 994.60 (4,264,313.71) 4,264 313.71 p 14,153 782.11 Total Less: Unsupported creditable tax withheld p 23,937 308.31 9 554,772.36 Excess minimum corporate income tax carry-over 4,264 313.71 Excess credit carried-over to succeeding period 248 421.42 P23,708,554.47 Basic deficiency tax 23,688 886.89 Add: Interest (4/16/08 to 8/31/11) TOTAL AMOUNT DUE 65 Exhibit " A" . r

CTA Case No. 8323 Page 67 Armadillo Holdings, Inc. vs. CIR DECISION As can be gleaned from the above computation, the assessment arose from the following items: 1. Disallowed salaries and wages due to non-withholdinq of tax p 1 331 450.31 2. Unaccounted income payments 20,880 331.95 3. Undeclared revenue 6/043 841.73 4. Net operating loss carry-over (NOLCO) 1/222 485.80 5. Excess minimum corporate income tax carry-over 248 421.42 6. Excess credit carried-over to succeeding period 23/688 886.89 7. Unsupported creditable tax withheld 4 264 313.71 1. Disallowed Salaries and Wages due to non- withholding of tax - P1,331,450.31 Invoking Section 34(K) of the NIRC of 1997, as amended, respondent disallowed petitioner's claimed salaries and wages in the amount of P1,331,450.31, which was computed by comparing the salaries and wages per petitioner's income tax return (ITR) as against its Alphalist, as shown below: Salaries and wages per ITR p 55/374 798.44 Less: Salaries and wages per Alphalist 54,043,348.13 Disallowed salaries and wages for non-withholding of tax P1,3311 450.31 Petitioner alleges that the amount of salaries and wages per ITR stated in the FLD is inaccurate and should be P55,280,455.83 per its records instead of PS5,374, 798.44. The difference should only be P1,237, 108.10 instead of P1,331,450.31, which can be reconciled as follows: Salaries and wages per Alphalist p 54 043/348.73 Add/(Less): Retirement Pay contribution included in Alphalist (1 299 104.39) (1 671 297.21) Accrual of 2006 SL/VL balance released in 2007 3,355,475.98 852 033.72 Expenses not subject to withholding tax p 55,280,455.83 Accrual of 2007 SL/VL balance released in 2008 PSS,280,455.83 Total 0 Salaries and wages per ITR {correct) Difference

CTA Case No. 8323 Page 68 Armadillo Holdings, Inc. vs. CIR DECISION Petitioner then explains the above reconciling items in the following manner: 66 "28.1 The retirement pay amounting to P1,299,104.39 pertains to Petitioner's disbursements for its noncontributory and defined benefit retirement plan covering substantially all its officers and employees. Such expenses should not have been included as part of salaries and wages in the Alphalist but the petitioner inadvertently included the same. Thus, the same is not subject to withholding taxes on compensation and should be allowed as a deduction from gross income pursuant to Section 34(J) of the Tax Code, as amended. 28.2 Accrual for 2006 paid in 2007 amounting to P1,671,297 .21 pertains to accruals for 2006 for vacation/sick leave conversion that was paid in 2007 wherein the corresponding withholding tax was paid in 2007, thus, should be deducted from the salaries and wages per alphalist of 2007 . 28.3 With regard to the expenses that was not included in the Alphalist amounting to P3,355,475.98, the same pertains to payment contribution to SSS, Medicare, Pag-ibig contributions and union dues in line with its policy of uplifting the general welfare and benefits of its employees. The said payments or benefits paid provided by the Petitioner for its employees are tax-exempt, and thus, should not be subject to withholding tax. Thus, should be included in the salaries and wages in the alphalist for 2007. 28.4 Accrual for 2007 paid in 2008 amounting to P852,033. 72 pertains to accruals for 2007 for vacation/sick leave conversion that was paid in 2008 wherein the corresponding withholding tax was paid in 2008, thus, should be considered in the salaries and wages per alphalist of 2007 for reconciliation with the salaries and wages per ITR."{ 66 Petition for Review, Docket, p. 15.

CTA Case No. 8323 Page 69 Armadillo Holdings, Inc. vs. CIR DECISION This Court finds the disallowance proper. A perusal of petitioner's Annual Income Tax Return67 for the taxable year 2007 shows that the amount of P55,374,798.44 and not P55,280,455.83 was reflected as Direct Charges-Salaries, Wages and Benefits. Based on its reconciliation schedule, petitioner deducted from the amount of P54,043,348. 73 salaries and wages per Alphalist, the amounts of P1,299,104.39 and P1,671,297 .21 representing alleged retirement pay and accrual for 2006 for vacation/sick leave conversion that was paid in 2007, respectively, indicating that these figures were included per Alphalist but did not form part of its alleged salaries and wages of P55,280,455.83 per its 2007 ITR. Petitioner submitted documents proving payment of the amount of P1,203,459. 75 as retirement pay to the following employees: PAYEE AMOUNT EXHIBIT Maida S. Briones p 456 093.75 "LL" to " LL-2" Lito L. Aldecoa "MM " to "MM-2" Evelyn Cacayan 132 050.00 " NN" to "NN-2" Lydia Nuguit 418 000.00 "00" to "00-2" TOTAL 197 316.00 P1,203,459.75 While the aforesaid retirement pay was included in petitioner's Alphalist, petitioner however failed to establish that the same did not form part of its claimed salaries and wages per ITR. As regards the alleged 2006 accrual of sick leave/vacation leave (SL/VL) in the amount of P1,671,297.21 that was paid in 2007, no document was presented by petitioner in order for this Court to validate the said amount. Neither did petitioner provide a schedule as reference thereof.C 67 Exhibit " KK", Schedule 3, Line 46.

CTA Case No . 8323 Page 70 Armadillo Holdings, Inc. vs. CIR DECISION In its reconciliation schedule, petitioner also added to the P54,043,348. 73 salaries and wages per Alpha list, the amounts of P3,355,475.98 and P852,033.72 supposedly representing expenses not subject to withholding tax and accrual of 2007 SL/VL balance released in 2008, respectively, signifying that these were not included in its Alphalist but were claimed as part of its salaries and wages per ITR. Petitioner avers that the amount of P3,355,475.98 pertains to the employer's share of SSS, Philhealth and Pag- ibig contributions and other benefits for its employees which are tax-exempt. Indeed, contributions remitted to SSS, Medicare (Philhealth), and Pag-ibig are excluded from the computation of taxable income, thus, not subject to withholding tax. Section 32(B)(7) of the NIRC of 1997, as amended, provides: "SEC. 32. Gross Income. - XXX XXX XXX (B) Exclusions from Gross Income. - The following items shall not be included in gross income and shall be exempt from taxation under this title: XXX XXX XXX (7) Miscellaneous Items. - XXX XXX XXX (f) G5I5, 555, Medicare and Other Contributions. - GSIS, 555, Medicare and Pag-ibig contributions, and union dues of individuals.'~

CTA Case No. 8323 Page 71 Armadillo Holdings, Inc. vs. CIR DECISION However, other than the Tentative Trial Balance68 as of December 31, 2007, nothing more was presented by petitioner to establish its claim. Petitioner should have submitted proof of remittance of contributions to SSS, Philhealth, and Pag-ibig. Regarding the alleged accrual of 2007 SL/VL, petitioner's Tentative Trial Balance as of December 31, 2007 shows the following debits to sick leave/vacation leave totaling to P740,240.65: ACCOUNT NO. DESCRIPTION DEBIT 51207-508-1000-EXE Sick Leave/Vacation Leave p 33,781.96 51207-508-1101-FIN 51207-508-1104-FIN HRD 260,201.83 51207-508-1107-FIN Sick Leave/Vacation Leave 20,474.56 51207-508-1200-EXE 6,708.78 51207-508-1201-EXE ACT 51207-508-1501-CPL Sick Leave/Vacation Leave 147,317.70 51207-508-1705-CPL 51,706.80 51207-508-1800-CPL TRS TOTAL Sick Leave/Vacation Leave 146 033.07 5,200.38 LBK Sick Leave/Vacation Leave 68 815.57 P740,240.65 ADM Sick Leave/Vacation Leave MMD Sick Leave/Vacation Leave PMG Sick Leave/Vacation Leave PMD Sick Leave/Vacation Leave MIS While Section 2. 79(A) of RR No. 2-98, as amended, requires the withholding of tax upon payment of compensation and not upon accrual thereof, petitioner failed to present documents proving that the compensation of P740,240.65 was merely accrued as of December 31, 2007. No supporting documents were submitted by petitioner to show that the amount of P740,240.65 was paid in the next taxable year. Considering petitioner's failure to reconcile the discrepancy of P1,331,450.31 in its salaries and wages as.(' 68 Exhibit "JJ".

CTA Case No. 8323 Page 72 Armadillo Holdings, Inc. vs. CIR DECISION reflected in its Alphalist and as shown in its ITR, respondent's disallowance of the said amount shall be upheld. 2. Unaccounted Income Payments - P20,880,331.95 Respondent's examiner compared the income payments per petitioner's ITR/financial statements (FS) as against those shown per petitioner's Alphalist and considered the difference in the amount of P20,880,331.95 as petitioner's undeclared income, computed as follows: INCOME PAYMENTS PER ITR/FS PER ALPHALIST UNACCOUNTED Professional fees p 1109 825.95 p 1 405 152.20 p (295 326.25) Rentals - 51 740.00 (51 740.00) Prime contractors & sub- contractors/Purchase of local services Security services p 509,287.52 Outside services 3,080,802.28 Advertising 25,000.00 Insurance 128,515.61 Communication, light 536,229.94 and water Association dues 67,816 .18 Miscellaneous 441,393.29 Direct Charges - Others 4 298,161.13 9 087 205.95 29 620 471.65 (20,533 265.70) (P20,880,331.95) Total P10,197,031.90 P31,077,363.85 This Court is not convinced. Since the expenses reflected per petitioner's Alphalist were higher than the amounts reported in its ITR/FS, respondent concluded that the difference pertains to petitioner's undeclared income. By doing so, respondent merely relied on assumptions without obtaining any evidence corroborating such findings. This is contrary to the doctrine laid down by the Supreme Court in the case of Collector of Internal Revenue vs. Benipayo, 69 wherein it was held that:( 69 G.R. No . L-13656, January 31, 1962.

CTA Case No. 8323 Page 73 Armadillo Holdings, Inc. vs. CIR DECISION "(A)n assessment fixes and determines the tax liability of a taxpayer. As soon as it is served, an obligation arises on the part of the taxpayer concerned to pay the amount assessed and demanded. Hence, assessments should not be based on mere presumptions no matter how reasonable or logical said presumptions may be. xxx In order to stand the test of judicial scrutiny, the assessment must be based on actual facts. The presumption of correctness of assessment being a mere presumption cannot be made to rest on another presumption xxx" Even if these alleged unaccounted income payments are to be treated as income, the same shall be offset by reporting the equivalent payments as expenses. Hence, no taxable income will result from the said transactions, as illustrated below: Undeclared income from unaccounted income )ayments: Professional fees p 295,326.25 Rentals 51,740.00 Prime contractors & sub- contractors/Purchase of local services Security services 509,287.52 Outside services 3 080,802.28 Advertising 25,000.00 Insurance 128,515.61 Communication light and water 536 229.94 Association dues 67 816.18 Miscellaneous 441 393.29 Direct Charges - Others 4,298,161.13 P20,880,331.95 Less: Undeclared expenses p 295 326.25 Professional fees Rentals 51 740.00 Prime contractors and sub- contractors/Purchase of local services Security services 509 287.52 Outside services 3,080 802.28 Advertising 25 000.00 Insurance 128 515.61 Communication light and water 536 229.94 Association dues 67 816.18 Miscellaneous 441 393.29 Direct Charges - Others 4 298 161.13 20,880 331.95 - ",_" Taxable Income p

CTA Case No. 8323 Page 74 Armadillo Holdings, Inc. vs. CIR DECISION For lack of factual basis, the deficiency income tax assessment pertaining to the alleged undeclared income from unaccounted income payments of P20,880,331.95 should be cancelled. 3. Undeclared Revenue- P6,043,841.73 The alleged undeclared income of petitioner in the amount of P6,043,841. 73 was based on the examiner's analysis of petitioner's Accounts Receivable beginning and ending balances, as shown below: Accounts receivable, beginning (net of VAT) p 39,970 823.21 Add: Revenue during the year 72,094 025.00 Total Less: Accounts receivable, ending (net of VAT) p 112,064 848.21 Gross receipts per review 98,202,540.18 Gross receipts per VAT returns Undeclared Revenue p 13,862 308.04 19,906,149.77 (1'6,043,841. 73) As correctly found by the Court-commissioned Independent CPA, respondent's computation of the undeclared income is based on petitioner's Unaudited FS and that respondent picked up the amount of "Trade & Other Receivables" (net of VAT) per Tentative Balance Sheets70 as of December 31, 2007 and December 31, 2006. A scrutiny of petitioner's Tentative Trial Balance71 as of December 31, 2007 reveals that the Accounts Receivable, ending (net of VAT) in the amount of P98,202,540.18 per the examiner's computation comprised of the following: A/R Trade - Management INCLUSIVE OF VAT NET OF VAT A/R Non-Trade Clearing Account p 102,399 091.79 p 91,427 760.53 Advances to Officers & Employees (1 368,918.86) Receivable from Employees 84 693.55 (1 222,248.98) A/R Non-Trade Others 559 615.92 75 619.24 Total 8,312,362.32 1'109,986,844.72 499 657.07 70 Exh ibit "0 " . 7,421 ,752 .07 71 Exhibit "JJ ". 1'98,202,539.93 ~ )~

CTA Case No. 8323 Page 75 Armadillo Holdings, Inc. vs. CIR DECISION Based on the table above, the Advances to Officers and Employees in the amount of P75,619.24 and Receivable from Employees in the amount of P499,657 .07 shall be excluded in determining petitioner's taxable gross receipts. Thus, the Accounts Receivable, ending (net of VAT) for purposes of computing petitioner's taxable gross receipts amounts to P97,627,263.62, broken down as follows: A/R Trade - Management INCLUSIVE OF VAT NET OF VAT A/R Non-Trade Clearing Account p 102,399I 091.79 p 91,427,760.53 A/R Non-Trade Others (1,368,918.86) 8,312,362.32 (1,222,248.98) TOTAL P109,342,535.25 7,421,752.07 P97,627,263.62 It is to be noted that the A/R Non-Trade Clearing Account in the amount of (P1,222,248.98) and A/R Non- Trade Others in the amount of P7,421,752.07 were included in the balance of Accounts Receivable, ending (net of VAT) because petitioner failed to explain the actual nature thereof. On the other hand, the composition of the Accounts Receivable, beginning (net of VAT) in the amount of P39,970,823.21 per the examiner's computation cannot be verified from the records because petitioner did not submit its Tentative Trial Balance as of December 31, 2006. As a result, the amount of P39,970,823.21 used by respondent's examiner as Accounts Receivable, beginning (net of VAT) shall remain. Adopting the examiner's method in computing the purported undeclared revenue but using the amount of P39,970,823.21 as Accounts Receivable, beginning (net of VAT) and the amount of P97,627,263.62 as Accounts Receivable, ending (net of VAT), petitioner's gross receipts per review would be P14,437,584.59, which is an amount lower by P5,468,565.18 when compared with the gross receipts of P19,906,149. 77 declared per petitioner's 2007 Quarterly VAT Returns, thus:

CTA Case No. 8323 Page 76 Armadillo Holdings, Inc. vs. CIR DECISION Accounts receivable, beginning (net of VAT) p 39,970,823.21 Add: Revenue during the year 72 094 025.00 Total Less: Accounts receivable, ending (net of P112,064 848.21 VAT) Gross receipts per review 97,627 263.62 Gross receipts per VAT returns p 14 437 584.59 Difference 19,906,149.77 (1'5,468,565.18) Since petitioner failed to account for the discrepancy in gross receipts of P5,468,565.18, the same shall be treated as petitioner's undeclared revenue for the taxable year 2007. Consequently, petitioner shall be held liable to pay the corresponding deficiency income tax. 4. Net operating loss carry-over (NOLCO)- P1,222,485.80 5. Excess minimum corporate income tax carry-over - P248,421.42 6. Excess credit carried over to succeeding period - P23,688,886.89 Respondent treated the NOLCO of P1,222,485.80, Minimum Corporate Income Tax (MCIT) of P248,421.42, and excess credits of P23,688,886.89 as additions to petitioner's taxable income for the year 2007 on the basis that the tax benefit therefrom had already been forwarded to the succeeding years. However, respondent failed to present evidence to prove that petitioner used its 2007 net loss as NOLCO in the succeeding year. Assuming arguendo that petitioner actually deducted its 2007 net loss as NOLCO in the succeeding year and the said deduction was not proper as petitioner did not incur net loss, the same can only be the subject of assessment when it was claimed as deduction in the C

CTA Case No. 8323 Page 77 Armadillo Holdings, Inc. vs. CIR DECISION succeeding year and not in the year 2007, for such is beyond the scope of the present assessment. Hence, adding back the net loss amount of P1,222,485.80 to petitioner's taxable income for the year 2007 is erroneous. The same holds true with the MCIT of P248,421.42 and excess tax credits of P23,688,886.89. It was improper for respondent to disallow the said amounts because any tax benefit derived by petitioner from the carry-over redounds to the succeeding year 2007. Since the tax benefit will be in the succeeding year, at most, petitioner may only be assessed in the said succeeding year. 7. Unsupported creditable tax withheld- P4,264,313.71 Respondent disallowed petitioner's claimed creditable tax withheld in the amount of P4,264,313. 71 on the ground that it was not supported with sufficient evidence in violation of Section 2.58.3(B) of Revenue Regulations No. 02-98, as amended. To refute respondent's findings, petitioner submitted various Certificates of Creditable Tax Withheld at Source (BIR Form No. 2307) 72 for the year 2007 which were examined by the Independent CPA. As aptly found by the Independent CPA, the certificates reflected creditable withholding taxes in the amount of P6,531,002.36,73 which far exceeds the amount of P4,264,313. 71 disallowed by respondent. As a consequence, petitioner may validly claim the amount of P4,264,313. 71 as tax credits for the year 2007. In sum, notwithstanding petitioner's disallowed salaries and wages in the amount of P1,331,450.31 and undeclared revenues of P5,468,565.18, the income tax due thereon ' 72 Exhibits " BL" to " BY" . 73 Exhibit " C4 " , Annex " I " .

CTA Case No. 8323 Page 78 Armadillo Holdings, Inc. vs. CIR DECISION shall . be offset against petitioner's total tax credits of P23,937,308.31. Ergo, petitioner would not be liable for any deficiency income tax for the taxable year 2007, as shown below: Net Loss per ITR p (1 222,485.80) Add : Adjustments/Disallowances 1,331,450.31 Disallowed Salaries and Wages due to non- 5,468 565.18 withholding of tax p 5,577,529.69 Undeclared Revenue p 1,952 135.39 Taxable Income per Investigation p 19 672,994.60 Income Tax at 35% 4 264 313.71 Less: Tax Credits p 23 937 308.31 Prior Year's Excess Credits (P21,985,172.92) Creditable Tax Withheld per BIR Form No. 2307 Total Tax Credits Income Tax Overpayment II. DEFICIENCY VAT Respondent computed the deficiency VAT assessment ofP7,930,740.73 by adding the alleged unaccounted income payments in the amount of P20,880,331.95 to petitioner's VATable sales per VAT returns for the year 2007, by disallowing petitioner's claimed input taxes in the amount of P2, 106,725.31, and by adding back petitioner's excess input tax credit carried over to succeeding period in the amount of P365,863.29, as shown below: VATable sales per VAT returns P19,906,149.77 Add 20,880,331.95 Unaccounted income payments P40,786,481.72 p 4,894,377.81 Taxable Sales per audit Output Tax p 2,106 725.31 Less 2,106,725.31 Creditable Input Tax 365,863.29 (365,863.29) Input tax for the year p 5,260 241.10 Less: Disallowed Input Tax 647 875.95 Excess credit carried over to succeeding period VAT Due Less VAT payments

CTA Case No. 8323 Page 79 Armadillo Holdings, Inc. vs. CIR DECISION Deficiency Value-added Tax p 1t_612L365.15 Add I 3_L318 375.58 : Interest (1/26/08 to 8/31/11) P7,930,740.73 TOTAL AMOUNT DUE 1. Unaccounted Income Payments - P20,880,331.95 This assessment was based on the same finding under the deficiency income tax assessment that there were expenses per petitioner's Alphalist, the sources of which were not accounted for in its ITR/FS. Respondent concluded that petitioner had earned income which it failed to declare. As discussed earlier, the assessment is devoid of merit as it was based merely on respondent's inference that the difference between the expenses reflected per petitioner's Alphalist vis-a-vis the amounts reported in its ITR/FS represents petitioner's alleged undeclared income. 2. Excess input tax carried over to succeeding period - P365,863.29 Finding that petitioner's excess input tax of P365,863.29 was carried over to the succeeding year, respondent disallowed the said amount from petitioner's total allowable tax credit for the year 2007. It was improper for respondent to disallow the amount of P365,863.29 because any tax benefit derived by petitioner from the carry-over of the said amount redounds to the succeeding year 2008. Hence, at most, petitioner may only be assessed in the said succeeding year. 3. Disallowed Input Tax - P2,106,725.31(

CTA Case No. 8323 Page 80 Armadillo Holdings, Inc. vs. CIR DECISION Respondent disallowed petitioner's claimed input VAT related to all its purchases during the year in the amount of P2,106,725.31 due to alleged failure of petitioner to substantiate the claim with valid evidence pursuant to Sections 110 and 113 of the NIRC of 1997, as amended. Since the deficiency VAT assessment for the first three quarters of 2007 already prescribed, only the amount corresponding to the fourth quarter of 2007 shall be considered for review. In its Quarterly VAT Return filed with the BIR for the fourth quarter of 2007, petitioner reflected the following: VATable Tax Tax Still Sales/ Year Receipts Output Input Net VAT Credits/ Payable/ Exh. 2007 VAT VAT Payable Payments (Overpayment) "EE" 4th Qtr 7 051,088.33 846,130.60 966 354.33 (120 223.73) 255 681.41 (375 905.14) The Independent CPA reported that she was able to verify petitioner's VATable purchases of P15,994,468.54 with the related input VAT of P1,919,336.2274 for the taxable year 2007. A careful evaluation of petitioner's supporting documents reveals that out of the P1,919,336.22 input VAT for the year 2007 verified by the Independent CPA, only the amount of P584,062.90 pertains to the fourth quarter of 2007, detailed as follows: Date Supplier Amount VAT Supporting Exhibi 04 - 0ct- 07 1 705.36 204.64 Document t 04-0 ct - 07 Advance Computer 554.40 66 .53 Forms Inc. S.I. # 42241 UY-1 05-0ct-07 36 3 19.82 05-0ct-07 Kaizen Works & 2 366.07 O.R. # 2720 OQ -1 05-0ct-07 I nnovations Inc. 4 017.86 05-0ct-07 4 358. 38 O.R. # 6729 AA K-1 Panasonic 18 571.43 28 3 .93 O.R. # 377208 WX-1 Manufacturing , Ph il. 482 . 14 O.R. # 12771 MX-1 BBJ - 1 Corp. 2 228.57 O.R. # 4543 Integrated Computer Systems Inc. Mansion Electrical Supply Next Wave Communi cation 74 Exhibit "C4 " , Annex M.

CTA Case No. 8323 Page 81 Armadillo Holdings, Inc. vs. CIR DECISION 05-0ct-07 Network 20,792.45 2 495.09 O.R. # 14228 CCL 13 350 .00 1 602 .00 DDL 05-0ct-07 RJC Security and O.R. # 4539 EEU Investigation Agency, 5 062.50 607.50 OS - 1 05-0ct-07 5 912.55 709.51 O.R. # 377205 JJK-1 Inc. 1 696.43 203 .57 11-0ct-07 Center for Training & O.R. # 2723 ZZM 26-0ct-07 1 259.00 151.08 O.R. # 0206 Development Inc. ZZN **10/10/20 Integrated Computer 1 259 .00 151.08 Invoice No. 07 15010529303 ZZP Systems Inc. 1 259.00 151.08 **10/10/20 Kaizen Works & Invoice No. ZZQ 07 Innovations Inc. 1 259.00 151.08 15010529304 ZZR **10/10/20 Varken Printing Press 2 236.75 268.41 Invoice No. 07 Philippine Long 15010529296 zzs 1 259.00 151.08 **10/10/20 Distance Telephone Invoice No . ZZT 07 Co. 1 377.33 165.28 15010529301 zzu **10/10/20 Philippine Long 2 383.83 286.06 Invoice No. 07 Distance Telephone 8 243.83 989 .26 15010529302 IIT- 1 3 571.43 428.57 PT- 1 **10/10/20 Co. 152 142.86 18 257.14 Invoice No. BBM-1 07 Philippine Long 102.86 15010504705 GGD-1 Distance Telephone 857.14 607.50 GGN-1 **10/10/20 5 062.50 182.68 Invoice No. MW- 1 07 Co. 1 522.32 15010529274 Philippine Long **10/10/20 Distance Telephone Invoice No. 07 15010529298 Co . O.R. # 020405 11-0ct-07 Philippine Long Distance Telephone O.R. # 1281 11-0ct-07 Co. O.R. # 1458 11-0ct-07 Philippine Long O.R. # 77446 19-0ct-07 Distance Telephone O.R. # 372724 19-0ct-07 Co. Philippine Long O.R. # 12783 19-0ct-07 Distance Telephone 4910 .71 589.29 0. R. # 4605 BBK-1 19-0ct-07 Co. 10 714.29 1 285.71 O.R. # 7538 CCD-1 19-0ct-07 Philippine Long Distance Telephone 20,440 .31 2 452.84 O.R. # 14313 CCJ 19-0ct-07 12 000.00 1 440.00 EEG 19-0ct-07 Co. O.R # 233 VVJ 3 303.58 396.43 Acct./Billing No. UUM Copy Quest Corp. 1 677.08 201.25 Imax Technologies, 31370022-55 Acct./Billing No. Inc. Dominance IT 31367013-55 Solutions E. D. Suarez Integrated Computer Systems Inc. Mansion Electrical Supply Next Wave Communication Network Magneto Enterprises RJC Security and Investigation Agency, Inc. Pentathlon *10/21/07 Globe Telecom *10/21/07 Globe Telecom 18 159.91 2 179.19 O.R. # 14467 AAL-1 Panasonic 11 649.29 1 397.91 O.R. # 174 CI-1 26-0ct-07 26-0ct-07 Manufacturing, Phil. Corp. RNV5 Enterprises

CTA Case No. 8323 Page 82 Armadillo Holdings, Inc. vs. CIR DECISION 26-0ct-07 Dominance IT 253 571.43 30 428.57 O.R. # 1471 BBL-1 31-0ct-07 Solutions 21 131.25 2 535.75 S.I. # 3643 WZ-1 910 .00 109.20 EES 31-0ct-07 Kaizen Works & 2 089.29 250 .71 O.R. # 357365 CM-1 Nov 2007 Innovations Inc. 7 698.44 923.81 0. R. # 10951 AAH-1 06-Nov-07 Philippine Charter 714 .29 85.71 O.R. # 40655 AAAP- Insurance Corp. 4 464.29 535.71 09-Nov-07 Universal Magazine 1 473.21 176.79 O.R. # 2745 1 Exchange Corp. 26 718.75 3 206.25 O.R. # 77115 FFM - 1 09-Nov-07 Legend Hotel Inti. 4 866.07 583 .93 O.R. # 41975 HHF-1 3L035.71 364.29 O.R. # 0649 PS - 1 09-Nov-07 Corp. 4 285 .71 514.29 O.R. # 14215 QU - 1 09-Nov-07 Kaizen Works & QW - 1 09-Nov - 07 Innovations Inc. 20 369.64 2 444.36 O.R. # 0862 BB0- 1 Romeo V. Austria O.R. # 1478 09-Nov-07 1 259.00 151.08 CCK 09-Nov-07 Trading O.R. # 14344 Dinlys Industrial 1 259.00 151.08 Invoice No . ZZD 09-Nov-07 Sales 2 421.50 290 . 58 15010635660 ZZG **11/10/20 07 Ilium Philippines Inc. 1 259 .00 151.08 Invoice No. ZZH Brady Electrical 15010635657 **11/10/20 Supply Corp. 1 259.00 151.08 ZZI 07 Invoice No. Tamsons Enterprises, 1 259.00 151.08 15010635658 ZZJ **11/10/20 Inc. 07 3 267.08 392.05 Invoice No. ZZK Dominance IT 15010635659 **11/10/20 Solutions 1 718.58 206.23 ZZL 07 Invoice No. RJC Security and 334.82 40.18 15010635652 zzo **11/10/20 Investigation Agency, 120 000.00 14 400.00 07 Invoice No . IIH-1 Inc. 6 238.54 748.62 15010611049 EEF **11/10/20 Philippine Long 41 051.79 4 926.21 FFD-1 07 distance Telephone 2 041 526.79 244 983.21 Invoice No. AAM-1 15010635654 BBQ- 1 **11/10/20 Co. 2 290.18 274 .82 HHZ- 1 07 Philippine Long Invoice No . Distance Telephone 3 660.71 439.29 15010635630 VX- 1 * * 11/10/20 07 Co. S.I. # 1686 Philippine Long S.I. # 299 13-Nov-07 Distance Telephone 13-Nov-07 O.R. # 27272 14-Nov-07 Co . O.R. # 11650 15-Nov-07 Philippine Long O.R. # 11625 15-Nov-07 Distance Telephone O.R. # 37627 16-Nov-07 Co . Philippine Long O.R. # 4629 16-Nov-07 Distance Telephone Co. Philippine Long Distance Telephone Co. Philippine Long Distance Telephone Co. Philippine Long Distance Telephone Co. Dominance IT Solutions Pentathlon J. Tancio Enterprises, Inc. Microphase Corp. Microphase Corp. St. Paulina's Marketing The Next Wave Communication Network

CTA Case No. 8323 Page 83 Armadillo Holdings, Inc. vs. CIR DECISION 16-Nov-07 Kaizen Works & 14 493.24 1_[739.19 O.R. # 2751 NY-1 16-Nov-07 Innovations Inc. 158 750.00 19 050.00 O.R. # 1506 BBN-1 16 - Nov-07 O.R. # 0334 CCE-1 Dominance IT 6 919.64 830 .36 16-Nov-07 Solutions 16-Nov-07 22 194.82 2 663.38 O.R. # 14460 CCH 16-Nov-07 Power Coolaire 13 350.00 1 602.00 DDM System Inc. 18 350.00 2 202.00 O.R. # 4659 DDN 11 250.00 1 350.00 EEV RJC Security and 28 281.25 3 393.75 O.R. # 4660 EEE Investigation Agency, O.R. dated VVA 3 305.33 396.64 11/16/07 VVB Inc. 80 100.00 9 612.00 Center for Training & O.R. # 236 vvc 2 940.25 352 .83 Acct./Billing No . Development Inc. 725.25 87.03 VVD 716 . 17 85.94 31367315-56 VVE Center for Training & 934.00 Acct./Billing No. VVF Development Inc. 840.08 112.08 810012395-71 VVH 100.81 Acct./Billing No. VVT 16-Nov-07 Anson Premium CorQ. 3 305 .33 396.64 101215800-113 XXD Pentathlon 1 875.00 225.00 Acct./Billing No. XXE 20-Nov-07 2 947.42 353 .69 XXF Globe Telecom 3 330.33 399.64 31366416-56 XXG *11/21/200 Globe Telecom 1 250.67 150.08 Acct ./Billing No. XXH 7 Globe Telecom XXI Globe Telecom 782 .17 93.86 31367102-56 XXJ *11/21/200 Globe Telecom 1 026.75 123.21 Acct./Billing No. XXK 7 Globe Telecom 3 390.42 406.85 XXN Globe Telecom 1 026.75 123.21 41450193-25 *11/21/200 Globe Telecom 1 651.75 198.21 Acct./Billing No. xxo 7 Globe Telecom Globe Telecom 758.92 91.07 31368818-56 XXP *11/21/200 Globe Telecom 758.92 91.07 Acct./Billing No. XXQ 7 Globe Telecom 1 931.25 231.75 XXR Globe Telecom 2 043.92 245.27 31370022-56 *11/21/200 Globe Telecom 1 408.25 168.99 Acct./Billing No. xxs 7 Globe Telecom 9 216.42 1 105.97 Globe Telecom 31366602-56 ' XXT *11/21/200 Globe Telecom Acct./Billing No. 7 Globe Telecom Globe Telecom 37189184-41 *11/21/200 Globe Telecom Acct./Billing No . 7 Globe Telecom Globe Telecom 40235108-29 *11/21/200 Globe Telecom Acct./Billing No. 7 41454806-25 *11/21/200 Acct./Billing No. 7 40238476-29 *11/21/200 Acct./Billing No. 7 45737659-6 *11/21/200 Acct./Billing No. 7 31366688-56 *11/21/200 Acct./Billing No . 7 44355507-11 *11/21/200 Acct./Billing No. 7 31366335-56 *11/21/200 Acct./Billing No. 7 41450126-25 *11/21/200 Acct./Billing No. 7 31369377-56 *11/21/200 Acct./Billing No. 7 31366734-56 *11/21/200 Acct./Billing No . 7 31367013-56 *11/21/200 Acct./Billing No. 7 101215743-113 Acct./Billing No. *11/21/200 101416934-110 7 *11/21/200 7 *11/21/200 7 *11/21/200 7 *11/21/200 7

CTA Case No. 8323 Page 84 Armadillo Holdings, Inc. vs. CIR DECISION *11/21/200 Globe Telecom 1 099.33 131.92 Acct./Billing No. xxu 7 4 662.50 559.50 31367544-56 Globe Telecom 1 858.75 223.05 XXV *11/21/200 1 458.67 175 .04 Acct./Billing No. 7 Globe Telecom 1 457.33 174.88 40235078-29 xxw 3 539.25 424.71 *11/21/200 Globe Telecom 1 473.25 176.79 Acct./Billing No. XXX 7 2 033.67 244.04 31364316-56 XXY Globe Telecom UUL *11/21/200 532.00 63.84 Acct./Billing No. UUN 7 Globe Telecom 1,494.08 179.29 37474865-40 2,869.00 344.28 uuo *11/21/200 Globe Telecom 1 624.75 194.97 Acct./Billing No. 7 2 419.00 290.28 101215651-113 UUP Globe Telecom 2 481.50 297.78 Acct./Billing No. UUQ *11/21/200 3 125.00 375.00 UUR 7 Globe Telecom 1 762.08 211.45 31368621-56 Acct./Billing No. uus *11/21/200 Globe Telecom 770.08 92.41 7 841.75 101.01 41450142-25 UUT Globe Telecom 1 029.50 123.54 *11/21/200 723.21 Acct./Billing No. uuu 7 Globe Telecom 3 500.00 31366661-56 uuv 8 035.71 uuw *11/21/200 Globe Telecom 142 857.14 Acct./Billing No. uux 7 2 079.00 31365142-56 Globe Telecom 15 267.86 UUY *11/21/200 1 908.48 Acct./Billing No . 7 Globe Telecom 2 625.00 31367153-56 uuz 860 700.56 *11/21/200 Globe Telecom 1 750.00 Acct./Billing No. 7 18 482.14 101215720-113 Globe Telecom 554.40 *11/21/200 11 607.14 Acct./Billing No. 7 Globe Telecom 101215780-113 Acct./Billing No. *11/21/200 Globe Telecom 7 Integrated Computer 31368702-56 Acct./Billing No. *11/21/200 Systems, Inc. 7 Integrated Computer 31366807-56 Acct./Billing No. *11/21/200 Systems Inc. 7 Copy Quest Corp. 31367234-56 Ricoh (Philippines), Acct./Billing No. *11/21/200 7 Inc. 31366408-56 Kaizen Works & Acct./Billing No. *11/21/200 Innovations Inc. 7 Ilium Philippines Inc. 31369423-56 Clinton Commercial Acct./Billing No. *11/21/200 7 Corp. 44995492-9 Integrated Computer *11/21/200 Acct./Billing No. 7 Systems Inc. 31369555-56 Microphase Corp. 23-Nov-07 Integrated Computer 86.79 O.R. # 375514 GG0-1 23-Nov-07 Systems Inc. 420.00 O.R. # 375513 GGP-1 Dominance IT 964.29 O.R. # 21030 IIQ-1 23-Nov-07 Solutions 17 142.86 O.R. # 65924 AAE-1 23-Nov-07 Kaizen Works & Innovations Inc. 249.48 O.R. # 2755 NX-1 23-Nov-07 Romeo V. Austria 1 832.14 O.R. # 0655 PR-1 23-Nov-07 Trading 229.02 0. R. # 54075 PZ-1 23-Nov-07 315.00 S.I. # 310041080 GGR-1 103 284.07 P.R. # 01432 BBP-1 26-Nov-07 210.00 S.I. # 310041145 GGS-1 26-Nov-07 2 217.86 S.I. # 1722 AAN - 2 27-Nov-07 66.53 S.I. # 3707 NW-1 03-Dec-07 1 392.86 O.R. # 77275 FFL-1 ( 06-Dec-07 07-Dec-07

CTA Case No. 8323 Page 85 Armadillo Holdings, Inc. vs. CIR DECISION 07-Dec- 07 Integrated Computer 1 267.86 152.14 P.R. # 0009 GGQ- 1 07 -Dec-07 Systems Inc. 1 705.36 204.64 O.R. # 29536 HHC- 1 07 - Dec- 07 12 790.18 1 534.82 O.R. # 29535 HHD- 1 07 - Dec-07 Advance Computer O.R. # 42135 HHG- 1 07-Dec-07 Forms Inc. 289 .29 34.71 0 . R. # 21076 MQ- 1 07 - Dec- 07 5 267.86 632.14 O.R. # 13064 MV- 1 07-Dec-07 Advance Computer 1 160.71 139.29 NT- 1 Forms Inc. 10,005.97 1 200.72 S.I. # 3711 07 - Dec- 07 14- Dec- 07 Dinlys Industrial 21 330 .58 2 559.67 O.R. # 14495 CCI 14-Dec-07 Sales 1 571.43 188.57 JJS- 1 ** 12/10/20 2 745 .54 329.46 O.R. # 373571 FFZ-1 Goldex Manufacturing O.R. # 77870 07 & Trading Corp. 1 259.00 151.08 YYX ** 12/10/20 Mansion Electrical Invoice No. Supply 1 259.00 151.08 15010742325 yyy 07 Kaizen Works & ** 12/10/20 Innovations, Inc. 1 259.00 151.08 Invoice No . YYZ RJC Security and 15010742327 07 5 066.50 607.98 ZZA * *12/10/20 Investigation Agency, Invoice No . Inc. 1 259.00 151.08 15010742328 ZZB 07 ** 12/10/20 Integrated Computer 2 339.50 280.74 Invoice No. zzc Systems Inc. 15010742322 07 1 259.00 151.08 ZZE ** 12/10/20 E. D. Suarez Invoice No. Philippine Long 1 476.25 177.15 15010742320 ZZF 07 Distance Telephone 31 818 .18 3 818.18 RU - 1 ** 12/10/20 Invoice No. TZ - 1 Co. 1 769.64 212 .36 15010742326 NV- 1 07 Philippine Long 2 656.50 318.78 BBR- 1 ** 12/10/20 Distance Telephone 26 785.71 3 214.29 Invoice No . BBS - 1 19 107.14 2 292.86 15010717721 BBT- 1 07 Co. 19 107.14 2 292.86 14- Dec- 07 Philippine Long Invoice No. 14- Dec-07 Distance Telephone 20 734.80 15010742298 14-Dec-07 14-Dec-07 Co . 3 995.54 O.R. # 066 14 - Dec - 0 7 Philippine Long 7 767.86 14- Dec- 07 Distance Telephone S.I. # 9446 14 - Dec-07 Co . O.R. # 2778 Phi lippine Long O.R. # 12016 15 - Dec-07 Distance Telephone 17- Dec- 07 O.R. # 1554 Co. Philippine Long O.R. # 1553 Distance Telephone 2,488.18 O.R. # 15075 CCG Co. Philippine Long 479.46 Inv No. 131875 RW- 1 Distance Telephone 932.14 O.R # 2736 VZ - 1 Co. Philippine Long Distance Telephone Co . E.G.Y Engineering Consultants Conluck Infinity Industrial Inc. Kaizen Works & Innovations Inc. Microphase Corp. Dominance IT Solutions Dominance IT Solutions RJC Security and Investigation Agency, Inc. Home Center Construction Supply Corp. Citylight Telecom Centre

CTA Case No. 8323 Page 86 Armadillo Holdings, Inc. vs. CIR DECISION 20 - Dec-07 Citylight Telecom 3 839 .29 460.71 O.R. # 2806 VY- 1 Centre 828.67 99.44 Acct ./Billing No. VVG * 12/21/200 7 Globe Telecom 3 303.58 396.43 31368818 - 57 vvs Globe Telecom 1 901.33 228.16 Acct./Billing No . * 12/21/200 Globe Telecom 1 739.83 208.78 WWA 7 Globe Telecom 1 323 .58 158.83 31370022 - 57 WWB Globe Telecom 1 875 .00 225.00 Acct./Billing No . * 12/21/200 Globe Telecom wwc 7 Globe Telecom 798 .33 95.80 31366734- 57 Globe Telecom 3 633 .92 436.07 Acct./Billing No . WWD * 12/21/200 Globe Telecom 2 189.08 262.69 WWE 7 Globe Telecom 1 830.42 219.65 41450142 - 26 WWF Globe Telecom 1 678.42 201.41 Acct./Billing No . WWG * 12/21/200 Globe Telecom 3 125.00 375.00 WW H 7 Globe Telecom 1 425.92 171.11 31366408- 57 WWI Globe Telecom 1 830.33 219.64 Acct./Billing No. WWJ * 12/21/200 Globe Telecom 1 347 .58 161.71 WW K 7 Globe Telecom 31366602- 57 WWL Globe Telecom 668 .00 80 . 16 Acct./Billing No . WWM * 12/21/200 Globe Telecom 1 243 .83 149.26 WWN 7 Globe Telecom 2 804.25 336.51 31365142 - 57 Globe Telecom 1 083.42 130.01 Acct./Billing No. wwo * 12/21/200 Globe Telecom 1 026.75 123.21 7 Globe Telecom 1 068.50 128.22 31367315 - 57 WWP Globe Telecom 1 362.08 163.45 Acct./Billing No. WWQ * 12/21/200 Globe Telecom 1 150.33 138.04 WWR 7 Globe Telecom 2 874.83 344 .98 31366807- 57 Globe Telecom 1 026 .75 123.21 Acct./Billing No . wws * 12/21/200 Globe Telecom 7 Globe Telecom 625 .67 75.08 31368702- WWT Globe Telecom 852.25 102.27 Acct./Billing No . * 12/21/200 Globe Telecom 869.67 104.36 wwu 7 Globe Telecom 842 .83 101.14 31367153 - 57 wwv 880.50 105.66 Acct ./Billing No . www * 12/21/200 758 .92 wwx 7 91.07 31367234-57 Acct./Billing No . WWY * 12/21/200 7 31364316-57 wwz Acct./Bill ing No . * 12/21/200 XXA 7 31366661 - 57 XXB Acct./Billing No. * 12/21/200 xxc ( 7 44995492- 10 Acct./Billing No. * 12/21/200 7 31366416-57 Acct./Billing No . * 12/21/200 7 31367544- 57 Acct./Billing No. * 12/21/200 7 31368621 - 57 Acct./B illing No. * 12/21/200 7 37474865-41 Acct./Billing No . * 12/21/200 7 31369555 - 57 Acct./Billing No. * 12/21/200 7 31367102 - 57 Acct./Billing No. * 12/21/200 7 31367013 - 57 Acct./Billing No. * 12/21/200 7 41454806 - 26 Acct./Billing No . * 12/21/200 7 31366688-57 Acct./Billing No . * 12/21/200 7 44355507 - 12 Acct./Billing No . *12/21/200 7 47083885 - 1 Acct./Billing No . * 12/21/200 7 31369423- 57 Acct./Billing No. * 12/21/200 7 40238476 - 30 Acct./Billing No. * 12/21/200 7 41450193-26 Acct./Billing No. * 12/21/200 7 31369377 - 57 * 12/21/200 Acct./Billing No.

CTA Case No. 8323 Page 87 Armadillo Holdings, Inc. vs. CIR DECISION 7 Globe Telecom 4 911 .58 589.39 41450126-26 XXL * 12/21/200 Acct./Billing No . XXM Globe Telecom 3 237.75 388 .53 ST- 1 7 2 455.36 294 .64 40235078 - 30 WY- 1 * 12/21/200 United Star Hardware 107.14 Acct./Billing No. MU - 1 892.86 7 Varken Printing Press 251.79 40235108 - 30 DDK 21 - Dec-07 Mansion Electrical 2 098 .21 O.R. # 16463 EED 21 - Dec-07 Supply FFJ - 1 E.M. Zalamea 6 600 .00 792.00 O.R. # 228 GGT- 1 21 -Dec-07 Actuarial Services, GGU - 1 Inc. 120 000.00 14 400.00 O.R. # 13124 21 -Dec- 07 Pentathlon Systems Resources Inc. 2 232.14 267.86 O.R. # 7591 21 -Dec-07 Romeo V. Austria Trading 723.21 86.79 O.R. # 240 26 - Dec-07 Integrated Computer 1 669.64 200.36 S.I. # 97160 26-Dec-07 Systems Inc. S.I. # 310042647 27 - Dec- 07 Integrated Computer Systems Inc. S.I. # 310042696 4 867,190.71 584,062.90 * due date **cut-off date It must be noted that the above input VAT of P548,062.90 is lower than the input VAT of P966,354.33 reflected in petitioner's Quarterly VAT Return for the fourth quarter of 2007. Therefore, the discrepancy of P382,291.43 shall be disallowed for petitioner's failure to submit corresponding VAT invoices or official receipts. Further, out of the P584,062.90 input VAT verified by the Independent CPA, the amount of P563,346.60 shall be denied for failure to meet the substantiation requirements under Section llO(A)(l) in relation to Section 113(A) and (B) of the NIRC of 1997, as amended, which are all quoted hereunder for ready reference: "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{

CTA Case No. 8323 Page 88 Armadillo Holdings, Inc. vs. CIR DECISION transactions shall be creditable against the output tax: II "SEC. 113. Invoicing and Accounting Requirements for VAT-Registered Persons. - (A) Invoicing Requirements. - A VAT-registered person shall issue: (1) A VAT invoice for every sale, barter or exchange of goods or properties; and (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. (B) Information Contained in the VAT Invoice or VAT Official Receipt. - The following information shall be indicated in the VAT invoice or VAT official receipt: XXX XXX XXX (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax: Provided, That: (a) The amount of the tax shall be shown as a separate item in the invoice or receipt; II (Emphases supplied) Below is the detailed breakdown of the disallowed input VAT of P563,346.60: DATE SUPPLIER VATABLE VAT SUPPORTING EXHIBIT PURCHASE AMOUNT DOCUMENT AAK-1 Input VAT on purchase of goods or se!Vices 36 319.82 EES supported by VAT invoice or official receipt 910.00 without BIR permit number 05-0ct-07 Panasonic Manufacturing, Phil. 4 358.38 5.1. #15100067 Corp. 109.20 O.R. # 357365 31-0ct-07 Philippine Charter Insurance Corp.

CTA Case No. 8323 Page 89 Armadillo Holdings, Inc. vs. CIR DECISION Input VAT on purchase of goods supported by a partlyphotocopied invoice Home Center Construction Supply 15-Dec-07 Corp. 3 995.54 479.46 Inv No. 131875 RW-1 Input VAT on purchase of goods without AAL-1 BBP-1 supporting VAT invoice BBQ- 1 BBS- 1 Panasonic Manufacturing, Phil. CCD-1 CM-1 26-0ct-07 Corp. 18 159.91 2 179.19 O.R. # 14467 FFL-1 860 700.56 103 284.07 P.R.# 01432 FFM -1 26-Nov-07 Microphase Corp. 2 041 526.79 244 983 .21 O.R. # 11625 FFZ- 1 O.R. # 1554 GGN-1 15-Nov-07 Microphase Corp. 19 107.14 2 292.86 O.R. # 7538 GG0-1 10 714.29 1 285.71 0. R. # 10951 GGP-1 14-Dec-07 Dominance IT Solutions O.R. # 77275 GGQ- 1 2 089.29 250 .71 O.R. # 77115 HHC-1 19-0ct-07 Magneto Enterprises 11 607.14 1 392.86 O.R. # 77870 HHD-1 4 464.29 O.R. # 372724 HHF- 1 Nov 2007 Universal Magazine exchange Corp. 535 .71 O.R. # 375514 HHG - 1 2 745 .54 329.46 O.R. # 375513 HHZ- 1 07-Dec-07 Romeo V. Austria Trading 5 062.50 607.50 P.R.# 0009 MQ-1 O.R. # 29536 MU-1 09-Nov-07 Romeo V. Austria Trading 723.21 86.79 O.R. # 29535 MV-1 3 500.00 420.00 O.R. # 41975 MW-1 14-Dec-07 E. D. Suarez 1 267.86 152.14 O.R. # 42135 MX-1 1 705.36 204 .64 O.R. # 37627 PZ-1 19-0ct-07 Integrated Computer Systems Inc. 12 790.18 1 534.82 QU-1 1 473.21 176.79 0. R. # 21076 QW-1 23-Nov-07 Integrated Computer Systems Inc. O.R. # 13124 ST-1 289.29 34.71 O.R. # 13064 VX-1 23-Nov-07 Integrated Computer Systems Inc. 2 290.18 274.82 O.R. # 12783 VY - 1 O.R. # 12771 VZ-1 07-Dec-07 Integrated Computer Systems Inc. 5 267.86 632.14 0. R. # 54075 WX-1 2 098.21 251.79 O.R. # 14215 07-Dec-07 Advance Computer Forms Inc. 1160.71 139.29 O.R. # 0862 CI-1 1 522.32 182.68 O.R. # 16463 07-Dec-07 Advance Computer Forms Inc. 4 017.86 482.14 AAN-2 1 908.48 229.02 O.R. # 4629 FFJ-1 09-Nov-07 Dinlys Industrial Sales 4 866.07 583.93 O.R. # 2806 IIH-1 3 035.71 364 .29 O.R # 2736 BBL-1 07-Dec-07 Dinlys Industrial Sales 2 455.36 294 .64 O.R. # 377208 BBM-1 O.R. # 174 BBN-1 16-Nov-07 St. Paulina's Marketing 3 660.71 439.29 07-Dec-07 Goldex Manufacturing & Trading 3 839.29 460.71 7 767.86 932.14 Corp. 2 366.07 283.93 11 649.29 1 397.91 21-Dec-07 Mansion Electrical Supply 07-Dec-07 Mansion Electrical Supply 19-0ct-07 Mansion Electrical Supply 05-0ct-07 Mansion Electrical Supply 23-Nov-07 Clinton Commercial Corp. 09-Nov-07 Brady Electrical Supply Corp. 09-Nov-07 Tamsons Enterprises Inc. 21-Dec-07 United Star Hardware 16-Nov-07 The Next Wave Communication Network 20-Dec-07 Citylight Telecom Centre 17-Dec-07 Citylight Telecom Centre 05-0ct-07 Integrated Computer Systems Inc. 26-0ct-07 RNV5 Enterprises Input VAT on purchase of goods supported by VAT invoice but the VAT was not separately indicated therein 03-Dec-07 Dominance IT Solutions 18 482.14 2 217.86 S.I. # 1722 2 232.14 267.86 S.l. # 97160 26-Dec-07 Romeo V. Austria Trading 334.82 40.18 S.l. # 1686 O.R. # 1471 13-Nov-07 Dominance IT Solutions 253 571.43 30 428.57 O.R. # 1458 152 142.86 18 257.14 O.R. # 1506 26-0ct-07 Dominance IT Solutions 158 750.00 19 050.00 11-0ct-07 Dominance IT Solutions 16-Nov-07 Dominance IT Solutions

CTA Case No. 8323 Page 90 Armadillo Holdings, Inc. vs. CIR DECISION 09-Nov-07 Dominance IT Solutions 4 285.71 514.29 O.R. # 1478 BB0-1 14-Dec-07 19 107.14 2 292.86 O.R. # 1553 BBT-1 16-Nov-07 Dominance IT Solutions O.R. # 0334 CCE-1 14-Nov-07 6 919.64 830.36 O.R. # 27272 FFD-1 19-0ct-07 Power Coolaire System Inc. 6 238.54 748.62 O.R. # 77446 GGD-1 102.86 14-Dec-07 J. Tancio Enterprises Inc. 857.14 O.R. # 15075 CCG 20 734.80 2 488.18 16-Nov-07 E. D. Suarez 22 194.82 O.R. # 14460 CCH RJC Security and Investigation 21 330.58 2 663.38 07-Dec-07 20 440.31 O.R. # 14495 CCI Agency Inc. 20 369.64 2 559.67 19-0ct-07 RJC Security and Investigation 20 792.45 O.R. # 14313 co 2 452.84 09-Nov-07 Aqency, Inc. 2 079.00 O.R. # 14344 CCK RJC Security and Investigation 14 493.24 2 444.36 05-0ct-07 O.R. # 14228 CCL 23-Nov-07 Agency, Inc. 5 912.55 2 495.09 O.R. # 2755 NX-1 16-Nov-07 RJC Security and Investigation 15 267.86 249.48 O.R. # 2751 NY-1 11-0ct-07 26 718.75 O.R. # 2723 OS-1 23-Nov-07 Agency, Inc. 1 739.19 O.R. # 0655 PR-1 09-Nov-07 RJC Security and Investigation 3 571.43 709.51 O.R. # 0649 PS-1 11-0ct-07 31 818.18 O.R. # 1281 PT-1 14-Dec-07 Aqency, Inc. 1 832.14 O.R. # 066 RU-1 09-Nov-07 RJC Security and Investigation 714.29 3 206.25 O.R. # 2745 AAAP-1 14-Dec-07 2 656.50 O.R. # 2778 NV-1 23-Nov-07 Agency, Inc. 142 857.14 428.57 O.R. # 65924 AAE-1 21-Dec-07 Kaizen Works & Innovations Inc. 120 000.00 3 818.18 O.R. # 240 EED 20-Nov-07 Kaizen Works & Innovations Inc. 28 281.25 O.R. # 236 EEE 14-Dec-07 Kaizen Works & Innovations Inc. 1 571.43 85 .71 O.R. # 373571 JJS-1 11 250.00 318.78 O.R. dated 16-Nov-07 Ilium Philippines Inc. 12 000.00 17 142.86 EEV 19-0ct-07 5 062.50 14 400.00 11/16/07 EEG 05-0ct-07 Ilium Philippines Inc. 3 393.75 O.R # 233 EEU 120 000.00 188.57 O.R. # 377205 imax Technoloqies Inc. 10 005.97 554.40 1 350.00 E.G. Y Enqineerinq Consultants 21131.25 1440.00 3 539.25 Kaizen Works & Innovations Inc. 1 677.08 607.50 Kaizen Works & Innovations Inc. 1473.25 2 033.67 Ricoh (PhiliPPines). Inc. 532.00 1494.08 Pentathlon 2 869.00 1 624.75 Pentathlon 2 419.00 Inteqrated Computer Systems Inc. Anson Premium Corp. Pentathlon Integrated Computer Systems Inc. Input VAT on purchase of services without VAT OR and supported only by account billing, statement ofaccount or sales invoice 13-Nov-07 Pentathlon 14 400.00 S.l. # 299 EEF 1 200.72 NT- 1 07-Dec-07 Kaizen Works & Innovations Inc. 66.53 S.l. # 3711 NW-1 2 535.75 WZ- 1 06-Dec-07 Kaizen Works & Innovations Inc. 424.71 S.l. # 3707 UUL 201.25 UUM 31-0ct-07 Kaizen Works & Innovations Inc. 176.79 S.l. # 3643 UUN 244.04 Acct./Billing No. *11/21/2007 Globe Telecom 63.84 uuo 179.29 31368621-56 *10/21/07 Globe Telecom 344.28 Acct./Billing No. UUP 194.97 UUQ *11/2112007 Globe Telecom 290 .28 31367013-55 UUR Acct./Billing No. *11/21/2007 Globe Telecom uus 41450142-25 *11/21/2007 Globe Telecom Acct./Billing No. UUT *11/21/2007 Globe Telecom 31366661-56 Acct./Billing No. *11/21/2007 Globe Telecom 31365142 - 56 *11/21/2007 Globe Telecom Acct./Billing No. *11/21/2007 Globe Telecom 31367153-56 Acct./Billing No. 101215720-113 Acct./Billing No. 101215780-113 Acct./Billing No. 31368702-56

CTA Case No. 8323 Page 91 Armadillo Holdings, Inc. vs. CIR DECISION *11/21/2007 Globe Telecom 2 481.50 297.78 Acct./Billing No. uuu *11/21/2007 Globe Telecom 3 125.00 375.00 31366807-56 uuv * 11/21/2007 Globe Telecom 1 762.08 211.45 uuw *11/21/2007 Globe Telecom Acct./Billing No. uux * 11/21/2007 Globe Telecom 770 .08 92.41 31367234-56 *11/21/2007 Globe Telecom 841.75 101.01 UUY *11/21/2007 Globe Telecom 1 029.50 123.54 Acct./Billing No. * 11/21/2007 Globe Telecom 3 305.33 396.64 31366408-56 uuz * 11/21/2007 Globe Telecom 80 100.00 9 612.00 *11/21/2007 Globe Telecom 2 940.25 352.83 Acct./Billing No. WA *11/21/2007 Globe Telecom 725.25 87.03 31369423-56 WB *11/21/2007 Globe Telecom 716.17 85.94 *12/21/2007 Globe Telecom 934.00 112.08 Acct./Billing No. we *11/21/2007 Globe Telecom 828.67 44995492-9 Globe Telecom 840.08 99.44 WD *10/21/07 Globe Telecom 3 303.58 100.81 Acct./Billing No. WE *12/21/2007 Globe Telecom 3 303.58 396.43 31369555-56 WF *11/21/2007 Globe Telecom 3 305.33 396.43 WG *12/21/2007 Globe Telecom 1 901.33 396.64 Acct./Billing No. WH *12/21/2007 Globe Telecom 1 739.83 228.16 31367315-56 WJ *12/21/2007 Globe Telecom 1 323.58 208.78 *12/21/2007 Globe Telecom 1 875.00 158.83 Acct./Billing No. ws *12/21/2007 Globe Telecom 798.33 225.00 810012395-71 *12/21/2007 Globe Telecom 3 633.92 95 .80 Acct./Billing No. VVT *12/21/2007 Globe Telecom 2 189.08 436.07 101215800-113 WWA *12/21/2007 Globe Telecom 1 830.42 262.69 Acct./Billing No. WWB *12/21/2007 Globe Telecom 1 678.42 219.65 31366416-56 *12/21/2007 Globe Telecom 3 125.00 201.41 Acct./Billing No. wwc *12/21/2007 Globe Telecom 1 425 .92 375.00 31367102-56 *12/21/2007 Globe Telecom 1830.33 171.11 Acct./Billing No. WWD *12/21/2007 Globe Telecom 1 347.58 219.64 41450193-25 WWE *12/21/2007 Globe Telecom 668.00 161.71 Acct./Billing No. WWF *12/21/2007 Globe Telecom 1 243.83 31368818-57 WWG *12/21/2007 Globe Telecom 2 804.25 80.16 Acct./Billing No. WWH *12/21/2007 Globe Telecom 1 083.42 149.26 31368818-56 WWI *12/21/2007 Globe Telecom 1 026.75 336.51 Acct./Billing No. WWJ *12/21/2007 Globe Telecom 1 068.50 130.01 31370022-55 WWK *12/21/2007 1 362.08 123.21 Acct./Billing No. WWL 128.22 31370022-57 WWM 163.45 Acct./Billing No. WWN 31370022-56 Acct./Billing No. wwo 31366734-57 Acct./Billing No. WWP 41450142-26 WWQ Acct./Billing No. WWR 31366408-57 Acct./Billing No. wws 31366602-57 Acct./Billing No. WWT 31365142-57 Acct./Billing No. 31367315-57 Acct./Billing No. 31366807-57 Acct./Billing No. 31368702- Acct./Billing No. 31367153-57 Acct./Billing No. 31367234-57 Acct./Billing No. 31364316-57 Acct./Billing No. 31366661 -57 Acct./Billing No. 44995492-10 Acct./Billing No. 31366416-57 Acct./Billing No. 31367544-57 Acct./Billing No. 31368621-57 Acct./Billing No. 37474865-41 Acct./Billing No. 31369555-57 Acct./Billing No. 31367102-57 Acct./Billing No. 31367013-57

CTA Case No. 8323 Page 92 Armadillo Holdings, Inc. vs. CIR DECISION *12/21/2007 Globe Telecom 1150.33 138.04 Acct./Billing No. wwu *12/21/2007 2 874.83 344.98 41454806-26 wwv *12/21/2007 Globe Telecom 1 026.75 123.21 www *12/21/2007 Acct./Billing No. wwx *12/21/2007 Globe Telecom 625.67 75.08 31366688-57 *12/21/2007 852.25 102.27 WWY *12/21/2007 Globe Telecom 869.67 104.36 Acct./Billing No. *12/21/2007 842 .83 101.14 44355507-12 wwz *12/21/2007 Globe Telecom 880.50 105.66 *11/21/2007 758.92 91.07 Acct./Billing No. XXA *11/21/2007 Globe Telecom 1 875.00 225.00 47083885-1 XXB *11/21/2007 2 947.42 353.69 * 11/21/2007 Globe Telecom 3 330.33 399.64 Acct./Billing No. xxc *11/21/2007 1 250.67 150.08 31369423-57 *11/21/2007 Globe Telecom 782 . 17 XXD *11/21/2007 1 026.75 93 .86 Acct./Billing No. XXE *11/21/2007 Globe Telecom 3 390.42 123.21 40238476-30 XXF *12/21/2007 1 026.75 406.85 XXG *12/21/2007 Globe Telecom 4 911.58 123.21 Acct./Billing No. XXH *11/21/2007 3 237.75 589 .39 41450193-26 XXI *11/21/2007 Globe Telecom 1 651.75 388.53 XXJ *11/21/2007 758 .92 198.21 Acct./Billing No. XXK * 11/21/2007 Globe Telecom 758.92 91.07 31369377-57 XXL *11/21/2007 1 931.25 XXM *11/21/2007 Globe Telecom 2 043.92 91.07 Acct./Billing No. XXN * 11/21/2007 1 408.25 231.75 41450126-26 *11/21/2007 Globe Telecom 9 216.42 245.27 xxo *11/21/2007 1 099.33 168.99 Acct./Billing No. *11/21/2007 Globe Telecom 4 662.50 1105.97 31366602-56 XXP *11/21/2007 1858.75 131.92 XXQ * 11/21/2007 Globe Telecom 1458.67 559.50 Acct./Billing No. XXR **12/10/2007 1457.33 223.05 37189184-41 **12/10/2007 Globe Telecom 1 259.00 175.04 xxs **12/10/2007 1 259.00 174.88 Acct./Billing No. **12/10/2007 Globe Telecom 1 259.00 151.08 40235108-29 XXT **12/10/2007 5 066.50 151.08 **12/10/2007 Globe Telecom 1 259.00 151.08 Acct./Billing No. xxu 2,339.50 607.98 41454806-25 Globe Telecom 151.08 XXV 280.74 Acct./Billing No. Globe Telecom 40238476-29 xxw Globe Telecom Acct./Billing No. XXX 45737659-6 XXY Globe Telecom YYX Acct./Billing No. yyy Globe Telecom 31366688-56 YYZ Globe Telecom Acct./Billing No. ZZA 44355507-11 ZZB Globe Telecom Acct./Billing No. zzc Globe Telecom 40235078-30 Globe Telecom Acct./Billing No. 40235108-30 Globe Telecom Acct./Billing No. Globe Telecom 31366335-56 Globe Telecom Acct./Billing No. Philippine Long Distance 41450126-25 Telephone Co. Acct./Billing No. Philippine Long Distance 31369377-56 Telephone Co. Acct./Billing No. Philippine Long Distance 31366734-56 Telephone Co. Acct./Billing No. Philippine Long Distance 31367013-56 Telephone Co. Acct./Billing No. Philippine Long Distance 101215743-113 Acct./Billing No. Telephone Co. 101416934-110 Philippine Long Distance Acct./Billing No. Telephone Co. 31367544-56 Acct./Billing No. 40235078-29 Acct./Billing No. 31364316-56 Acct./Billing No. 37474865-40 Acct./Billing No. 101215651-113 Invoice No. 15010742325 Invoice No. 15010742327 Invoice No. 15010742328 Invoice No. 15010742322 Invoice No. 15010742320 Invoice No. 15010742326

CTA Case No. 8323 Page 93 Armadillo Holdings, Inc. vs. CIR DECISION ** 11/10/2007 Philippine Long Distance 1 259.00 151.08 Invoice No. ZZD ** 12/10/2007 Telephone Co. 15010635660 ZZE ** 12/10/2007 1 259.00 151.08 Invoice No. ZZF **11/10/2007 Philippine Long Distance 15010717721 ZZG **11/10/2007 Telephone Co. 1 476.25 177.15 Invoice No. ZZH **11/10/2007 15010742298 ZZI **11/10/2007 Philippine Long Distance 1 259.00 151.08 ZZJ **11/10/2007 Telephone Co. Invoice No. ZZK **11/10/2007 2 421.50 290.58 15010635657 ZZL **10/10/2007 Philippine Long Distance Invoice No. ZZM **10/10/2007 Telephone Co. 1 259.00 151.08 15010635658 ZZN **11/10/2007 **10/10/2007 Philippine Long Distance 1 259.00 151.08 Invoice No. zzo **10/10/2007 Telephone Co. 15010635659 **10/10/2007 1 259.00 151.08 Invoice No. ZZP **10/10/2007 Philippine Long Distance 15010635652 ZZQ **10/10/2007 Telephone Co. 3 267.08 392.05 Invoice No. ZZR **10/10/2007 15010611049 Philippine Long Distance 1 259.00 151.08 Invoice No. zzs Telephone Co. 15010635654 1 259.00 151.08 ZZT Philippine Long Distance Invoice No. Telephone Co. 1 718.58 206.23 15010529303 zzu Invoice No. Philippine Long distance 1 259.00 151.08 15010529304 AAH -1 Telephone Co. Invoice No. 1 259.00 151.08 15010635630 Philippine Long Distance Telephone Co. 2 236.75 268.41 Invoice No. 15010529296 Philippine Long Distance 1 259.00 151.08 Invoice No. Telephone Co. 15010529301 1 377.33 165.28 Invoice No. Philippine Long Distance 15010529302 Telephone Co. 2 383.83 286.06 7 698.44 923.81 Invoice No. Philippine Long Distance 4 694 554.99 563.346.60 15010504705 Telephone Co. Invoice No. 15010529274 Philippine Long Distance Invoice No. Telephone Co. 15010529298 Philippine Long Distance O.R. # 40655 Telephone Co. Philippine Long Distance Telephone Co. Philippine Long Distance Telephone Co. Philippine Long Distance Telephone Co. 06-Nov-07 Leqend Hotel Inti. Coro. TOTAL *due date **cut-off date Consequently, only the following input VAT in the amount of P20, 716.30 represents petitioner's valid input VAT for the fourth quarter of 2007: Date Supplier VATable VAT Supporting Exhibit 04-0ct-07 Purchase Amount Document UY-1 04-0ct-07 Advance Computer Forms Inc. OQ-1 1 705.36 204.64 S.I. # 42241 05-0ct-07 Kaizen Works & Innovations Inc. BBJ-2 05-0ct-07 Next Wave Communication 554.40 66.53 O.R. # 2720 11-0ct-07 Network DDL Center for Training & 18 571.43 2 228.57 S.I. # 1953 IIT- 1 19-0ct-07 Development Inc. BBK-2 26-0ct-07 13 350.00 1 602 .00 O.R. # 4539 JJK-1 15-Nov-07 Copy Quest Corp. 8 243.83 989.26 O.R. # 020405 AAM-2 16-Nov-07 Next Wave Communication 4 910.71 589.29 S.I. # 1988 DDM Network 1 696.43 203.57 O.R. # 0206 41 051.79 4 926.21 S.I. # 15370 Varken Printing Press 13 350.00 1 602.00 O.R. # 4659 Microphase Corp. Center for Training & Development Inc.

CTA Case No. 8323 Page 94 Armadillo Holdings, Inc. vs. CIR DECISION 16-Nov-07 Center for Training & 18 350.00 2 202.00 O.R. # 4660 DON 23-Nov-07 Development Inc. 8 035.71 964.29 IIQ-1 O.R. # 21030 GGR-1 Copy Quest Corp. S.I. # GGS-1 TZ-1 26-Nov-07 Integrated Computer Systems Inc. 2 625.00 315 .00 310041080 BBR-1 S.I. # DDK 27-Nov-07 Integrated Computer Systems Inc. 1 750.00 210.00 WY-1 14-Dec-07 1 769.64 212.36 310041145 GGT-1 14-Dec-07 Conluck Infinity Industrial Inc. 26 785.71 3 214.29 GGU - 1 S.I. # 9446 21-Dec-07 Microphase Corp. 6 600.00 792.00 21-Dec-07 E.M. Zalamea Actuarial Services, 892.86 107. 14 O.R. # 12016 Inc. O.R. # 7591 Varken Printing Press O.R. # 228 S.I. # 26-Dec-07 Integrated Computer Systems Inc. 723.21 86.79 310042647 27-Dec-07 Integrated Computer Systems Inc. 1 669.64 200.36 S.I. # 310042696 172,635.72 20,716.30 In sum, petitioner is liable to pay the basic deficiency VAT for the fourth quarter of 2007 in the amount of P569, 732.89, computed as follows: VATable Sales Per Return P7 051 088.33 Output Tax Due p 846,130.60 Less p 255,681.41 Creditable Input Tax 20,716.30 Previous Quarter Current Quarter p 276,397.71 Total p 569,732.89 Deficiency VAT III. DEFICIENCY EWT Respondent assessed petitioner of deficiency EWT for the taxable year 2007 in the amount of P58,858.30, computed as follows: Basic Deficiency Tax p 34/122.30 Add: interest 24,736.00 Total amount Due PS8,858.3D

CTA Case No. 8323 Page 95 Armadillo Holdings, Inc. vs. CIR DECISION She arrived at the basic deficiency EWT of P34, 122.30 by comparing petitioner's purchase of Office Supplies as well as Property, Plant and Equipment (PPE) per ITR/FS with those shown per petitioner's Alphalist, to wit: INCOME PER ITR/FS PER DISCREPANCY RATE EWT DUE PAYMENTS ALPHALIST 1�/o P34,122.30 Purchase of local goods p 946,839.48 Office Supplies 7,011,207.09 Acquisition of P7,958,046.57 P4,545,816.18 P3,412,230.39 property and equipment TOTAL Accordingly, this Court finds the assessment proper. A perusal of the case records shows that the amount of P946,839.48 was actually claimed by petitioner as deduction for office supplies in its 2007 ITR75 and that the amount of P7 ,011,207.09 represents petitioner's acquisition of PPE for the taxable year 2007 as reflected in its Tentative Balance Sheetl6 as of December 31, 2007. However, petitioner did not provide a detailed breakdown of the said amounts to reconcile the same with the income payments reflected in its Alphalist for the taxable year 2007. Consequently, the income payments in the sum of P7,958,046.57 shall be considered subject to 1�/o EWT under Section 2.57 .2 of Revenue Regulations No. 2-98, as amended; and since only the income payment of P4,545,816.18 was subjected to 1�/o EWT, petitioner is liable for the corresponding deficiency 1�/o EWT in the amount of P34,122.30. It must be noted that while respondent's right to assess petitioner of the deficiency EWT for the months of January to November 2007 had already prescribed, petitioner was unable to point out which portion of the basic deficiency EWT assessment of P34, 122.30 refers to the months of January( 75 Exhibit " KK", Section D, Line 90 . 76 Exhibit " 0 " .

CTA Case No. 8323 Page 96 Armadillo Holdings, Inc. vs. CIR DECISION to November 2007. As a result, the entire assessment shall be considered as pertaining to the month of December 2007. WHEREFORE, premises considered, the instant Petition for Review is hereby PARTIALLY GRANTED. The deficiency income tax assessment in the amount of P23,708,554.47 is hereby CANCELLED, while the deficiency VAT and EWT are UPHELD with modifications. Accordingly, petitioner is hereby ORDERED TO PAY respondent the amount of P754,818.99, inclusive of the twenty-five percent (25�/o) surcharge imposed under Section 248(A)(3) of the NIRC of 1997, computed as follows: Deficiency VAT BASIC SURCHARGE TOTAL Deficiency EWT p 569 732.89 p 142,433.22 p 712,166.11 TOTAL 34 122.30 8,530.58 42,652.88 P712,166.11 P150,963.80 P754,818.99 In addition, petitioner is hereby ORDERED TO PAY the following: (a) deficiency interest at the rate of twenty percent (20�/o) per annum on the basic deficiency VAT of P569,732.89 and on the basic deficiency EWT in the amount of P34, 122.30 computed from January 25, 2008 and January 15, 2008, respectively, until full payment thereof pursuant to Section 249(B) of the NIRC of 1997, as amended; and (b) delinquency interest at the rate of 20�/o per annum on the total amount of P754,818. 99 and on the 20�/o deficiency interest which have accrued as afore-stated in (a), computed from July 21, 2011 until full payment thereof pursuant to Section 249(C) of the NIRC of 1997. SO ORDERED. ~N.M~- �6~ CIELITO N. MINDARO-GRULLA Associate Justice

CTA Case No. 8323 Page 97 Armadillo Holdings, Inc. vs. CIR DECISION . WE CONCUR: ERL~.UY Presiding Justice Associate Justice CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, it is hereby certified that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. Presiding Justice Chairperson, 1st Division

REPUBLIC OF THE PHILIPPINES Court of Tax Appeals QUEZON CITY FIRST DIVISION ARMADILLO HOLDINGS, INC., CTA CASE NO. 8323 Petitioner, Members: DEL ROSARIO, Chairperson, -versus- UY, and MINDARO-GRULLA, JJ. COMMISSIONER OF INTERNAL REVENUE, Promulgated: Respondent. )(- - - - - - - - - - - - - - - - - - - - -- - -- -- - - - - - - - - - - DISSENTING OPINION DEL ROSARIO, PJ.: In her ponencia, my esteemed and learned colleague, the Honorable Associate Justice Cielito N. Mindaro-Grulla, partially granted the Petition for Review filed by petitioner Armadillo Holdings, Inc. by cancelling the income ta)( assessment in the amount of Php23,708,554.47 and upholding the deficiency VAT and EWT assessment in the total amount of Php754,818.99. With all due respect, after a careful e)(amination of the pertinent facts of the case, in relation to applicable laws and jurisprudence, I vote to dismiss the present Petition for Review and uphold the assessment of the Bureau of Internal Revenue (BIR) for the following reasons: The protest letter is void and without force and effect. Section 228 of the National Internal Revenue Code (NIRC) of 1997, as amended, provides: "SEC. 228. Protesting of Assessment. - When the Commissioner or his duly authorized representative finds that proper taxes should be{)4

Dissenting Opinion CTA CASE NO. 8323 Page 2 of5 assessed, he shall first notify the taxpayer of his findings: provided, however, That a preassessment notice shall not be required in the following cases: XXX XXX XXX. The taxpayers shall be informed in writing of the law and the facts on which the assessment is made; otherwise, the assessment shall be void. Within a period to be prescribed by implementing rules and regulations, the taxpayer shall be required to respond to said notice. If the taxpayer fails to respond, the Commissioner or his duly authorized representative shall issue an assessment based on his findings. Such assessment may be protested administratively by filing a request for reconsideration or reinvestigation within thirty (30) days from receipt of the assessment in such form and manner as may be prescribed by implementing rules and regulations. Within sixty (60) days from filing of the protest, all relevant supporting documents shall have been submitted; otherwise, the assessment shall become final. XXX XXX xxx." (Emphasis supplied) Corollary thereto, Section 3.1.5 of Revenue Regulations No. 12-991 provides: "3.1.5 Disputed Assessment. - The taxpayer or his duly authorized representative may protest administratively against the aforesaid formal letter of demand and assessment notice within thirty (30) days from the date of receipt thereof. xxx The taxpayer shall state the facts, the applicable law, rules and regulations, or jurisprudence on which his protest is based, otherwise, his protest shall be considered void and without force and effect. xxx XXX XXX XXX. If the taxpayer fails to file a valid protest against the formal letter of demand and assessment notice within thirty (30) days from date of receipt thereof, the assessment shall become final, executory and demandable." (Emphases supplied) Pursuant to the above provisions, the protest letter must state the facts, the applicable law, rules and regulations or jurisprudence on which the protest is based. Failure to comply therewith shall render the protest letter void and without force and effect. ~ 1 Dated September 6, 1999.

Dissenting Opinion CTA CASE NO. 8323 Page 3 of5 In this regard, a careful scrutiny of the protest letter shows that petitioner failed to state the facts and applicable law on which the protest is based. Petitioner merely attached reconciliation schedules, and did not even submit any documents in support of the said sched ules, viz.: "February 18, 2010 Mr. Jaime B. Santiago Regional Director Revenue region No. 8 Makati City Dear Sir: Glory to GOD! This is in reference to your Formal Assessment Notice for LOA # 00001046 dated January 14, 2011 which we received on January 20, 2011 covering 2007 deficiency tax, we would like to submit the following reconciliations for your copy and review: 1. Reconciliation of Deficiency Tax. 2. Analysis on Withholding Tax- Compensation (Sched1). 3. Reconciliation of Unaccounted Income Payments (Sched 2). 4. Reconciliation of Undeclared Revenue (Sched 3). We are available at your most convenient time and place to explain the above analysis and reconciliations. Please call us at our cell nos. 0917- 890-7796 for Len Grande and 0917-8913663 for Mhina Simafranca. Thank you and God Bless You. (signed) Eleanor B. Grande Group Accounting Manager" Pursuant to Section 228 of the NIRC of 1997, as amended, and as implemented by Revenue Regulations 12-99, the protest letter is void and without force and effect. Petitioner did not only fail to state the applicable law, rules and regulations or jurisprudence on which its protest is based; it also failed to substantiate, with relevant supporting documents, the reconciliation schedules which petitioner submitted to the Bureau of Internal Revenue (BIR). There is no denying that in the Final Decision on Disputed Assessment2 (FDDA), the BIR emphasized that petitioner failed to submit l}1 2 Exhibit "12", BIR Records, pp. 291 to 294.

Dissenting Opinion CTA CASE NO. 8323 Page 4 of5 the documents in support of its protest within sixty (60) days from the date of filing of the protest. Since the petitioner failed to file a valid protest against the subject Final Assessment Notices (FANs), the FANs have become final, executory and demandable The protest letter was belatedly filed. Pursuant to the afore-quoted provision of Section 228 of the NIRC of 1997, as amended, a valid protest must be filed with thirty (30) days from receipt of the assessment notice. In its protest, petitioner alleges that it received the FANs on January 20, 2011. This allegation, however, is completely belied by the BIR records. A perusal of the BIR records shows that petitioner received the FANs, dated January 14, 2011, on the same date. 3 Petitioner, therefore, had until February 13, 2011 to file a protest. Petitioner filed its protest only on February 18, 2011, which is five (5) days beyond the 30-day reglementary period within which to file the same. It is true that the FANs, as can be found in the BIR Records, have not formally offered as evidence by either of the parties. Although the rule is that "evidence not formally offered during the trial cannot be used for or against a party litigant", but once the BIR records are elevated to this Court, they form part of the records of the case which the Court may aptly consider in deciding the case. Section 5(b) of the Revised Rules of the Court of Tax Appeals provides: "(b) Transmittal of records.- The respondent Commissioner of Internal Revenue, Commissioner of Customs, the Secretary of Finance, the Secretary of Agriculture, or the Secretary of Trade and Industry, within ten days after filing an answer, the chairman of the Central Board of Assessment Appeals and the presiding judges of the Regional Trial Courts, within ten days from receipt of notice, shall certify and forward to the Court all the records of the case in their possession, with the pages duly numbered, and, if the records are in separate folders, then the folders will also be numbered. If there are no records, such fact shall be manifested to the Court within the same period of ten days. xxx~ " 3 See BIR Records, pp. 279 to 286.

Dissenting Opinion CTA CASE NO. 8323 Page 5 of5 In Commissioner of Customs v. Court of Tax Appeals, et al. ,4 the Supreme Court ruled that records of the proceedings before the Collector of Customs form part of the records of the case which the Court can properly consider. Applying the principle laid down in Commissioner of Customs to the present case, I am of the humble view that this Court can consider the BIR Records in deciding the case since the administrative proceedings before the BIR is not rendered inexistent when an appeal is filed before this Court. Considering that the protest is void and without force and effect for failure to state the factual and legal basis and for having been filed way beyond the 30-day prescribed period, the FANs have long become final and executory. In fine, this Court has no jurisdiction to take cognizance of the Petition for Review filed by petitioner. For all the foregoing, I vote to dismiss the present Petition for Review for lack ofjurisdiction. Presiding Justice 4 G.R. No. 132929, July 3, 2000.