BJ WELL SERVICES COMPANY (PHILIPPINES), INC. v. COMMISSIONER OF INTERNAL REVENUE

THIRD DIVISION BJ WELL SERVICES CTA Case No. 8859 COMPANY (PHILIPPINES), INC., Members: BAUTISTA, Chairperson Petitioner, PABON-VICTORINO, and R I N GPIS-LIB A N ,]]. -versus- Promulgated: COMMISSIONER OF INTERNAL REVENUE, Respondent. FEB 0 8 2017 ~ tr :n p .,_ , 1{----------------------------------------------------------------------------------------------1{ DECISION RINGPIS-LIBAN,.L.: This is a Petition for Review flied by BJ Well Services Company (Philippines), Inc. involving a claim for refund or issuance of tax credit certificate in the aggregate amount ofP7,332,514.81, allegedly representing unutilized input value-added tax 01AT) arising from its domestic purchases of goods and services and importation of goods (other than capital goods) attributable to its zero-rated transactions for the second (2nd), (3rd), and fourth (4th) quarters of taxable year 2012. THE FACTS Petitioner BJ Well Services Company (Philippines), Inc. is a corporation organized and existing under the laws of the Philippines, with principal office ~

DECISION CTA Case No. 8859 address at 803 One Corporate Center, Meralco corner Julia Vargas, Ortigas Centre, Pasig City.1 Petitioner was duly registered with the Securities and Exchange Commission on January 6, 2009. It is primarily engaged in the business of rendering services and supplying equipment, chemicals, tools, products and processes to geothermal and oil exploration or drilling companies or in relation to geothermal and oil exploration or drilling projects, and to do all acts necessary, implied or incidental for the accomplishment of these purposes.2 Petitioner is also registered with the Bureau of Internal Revenue (BIR) as a VAT taxpayer, with Taxpayer Identification Number (TIN) 007-203-649-000 and BIR Certificate of Registration No. OCN3RC0000600055.3 On the other hand, respondent is the duly appointed Commissioner of Internal Revenue (CIR), empowered, among others, to act upon and approve claims for refund or tax credit. He holds office at the Sth Floor, BIR National Office Building, Agham Road, Diliman, Quezon City. On November 26, 2013, petitioner flled with the BIR Revenue District Office (RDO) No. 43A an administrative claim for refund or issuance of tax credit certificate for its alleged unutilized input VAT for the period covering May 1, 2012 to December 31,2012 in the aggregate amount ofP7,332,514.81.4 On March 11,2014, petitioner received from RDO No. 43A a copy of the Letter of Authority (LA) No. eLA 201100068170 dated February 20, 2014, authorizing Revenue Officer Benedict Bacani and Group Supervisor Alfredo M. Santos to conduct an examination on the administrative claim for refund of pett.tt.oner. On even date, petitioner also received from RDO No. 43A a checklist of documentary requirements necessary for the examination of petitioner's claim.5 On March 12,2014, petitioner submitted its last supporting documents to r RDO No. 43A.6 1 Par. 1, Summary of Admitted Facts, Joint Stipulation of Facts and Issues (JSFI), docket, p. 230. 2 Exhibit "P-1". 3 Exhibit "P-2". 4 Exhibit "P-5". 5 Par. 3, Summary of Admitted Facts, JSFI, docket, p. 231; Exhibit "P-6". 6 Exhibit "P-7".

DECISION CTA Case No. 8859 Respondent failed to rule on petitioner's application for issuance of tax credit certificate or refund of input VAT for 2nd to 4th quarters of 2012. 7 As a result, petitioner filed the instant Petition for Review on August 8, 2014. Respondent filed an Answer8 on September 26, 2014, praying that the instant Petition for Review be dismissed for failure of petitioner to substantiate its claim for refund of its alleged excess and unutilized input taxes for the 2nd, 3rd and 4th quarters of taxable year 2012 and raising the following defenses: xxx the taxpayer has the burden of proof in proving his claim involving claims for refund and should be able to present the foregoing documents stated therein. The burden of proof is on the taxpayer to establish its right to refund, and failure to sustain the burden is fatal to the claim for refund; Petitioner must prove that its export sale qualified as VAT zero-rated pursuant to Section 106(A)(2)(a)(1) of the NIRC of 1997, as amended; Petitioner must prove that it complied with the invoicing requirements provided in Section 113 of the NIRC of 1997, as amended; Petitioner must also prove that it complied with the provisions of Section 4.110-8 of Revenue Regulations No. 16-05, as amended, as to the substantiation of Input Tax Credits; Lastly, Petitioner must comply with the requirements provided under Revenue Memorandum Order No. 53-98; Well-established is the rule that tax refunds/tax credits are construed strictly against the taxpayer as they partake the nature of tax exemptions. The pre-trial conference was initially set on November 6, 20149, but upon respondent's motion, was reset to February 5, 201510. Respondent's Pre-Trial 7 Par. 4, Summary of Admitted Facts, JSFI, docket, p. 231. 8 Docket, pp. 90-93. 9 Notice of Pre-Trial Conference, docket, p. 97. 10 Docket, p. 119.

DECISION CTA Case No. 8859 Brie�11 was filed on October 13, 2014; while petitioner's Pre-Trial Brie�12 was filed on October 31, 2014. The parties submitted their Joint Stipulation of Facts and Issues13 on February 16, 2015. Thereafter, the Court issued a Pre-Trial Order14 on March 4, 2015. On March 23, 2015, upon motion of petitioner, this Court commissioned Ms. Mary Ann C. Capuchino, partner of SyCip Gorres Velayo & Co., as Independent Certified Public Accountant (CPA) for the case.15 During trial, petitioner presented Ms. Hanalei T. Joyas16, petitioner's Tax Specialist and Ms. Mary Ann C. Capuchino17, the Independent CPA. Petitioner formally offered its documentary evidence18 on June 2, 2015, which were all admitted by this Court, except for Exhibits "P-3-16", "P-3-17", A"Pu-g4u-s3t"6' ,"2P0-145-4a"n'd"OP-c4to-5b"e'r "2P8-, 42-061"5'. and "P-50"' in the Resolutions19 dated On the other hand, during the hearing held on February 1, 2016, respondent's counsel manifested that no report of investigation was submitted, hence, she will no longer present evidence for respondent.20 The case was declared submitted for decision on March 8, 2016, considering petitioner's Memorandum21 and respondent's Memorandum22, both r filed on March 1, 2016. 23 11 Docket, pp. 100-103. 12 Docket, pp. 107-114. 13 Docket, pp. 230-234. 14 Docket, pp. 259-264. 15 Minutes of the Hearing dated March 23, 2015, docket, p. 277. 16 Minutes of the Hearing dated April 20, 2015, docket, p. 284; Exhibit "P-14". 17 Minutes of the Hearing dated May 18, 2015, docket, p. 402; Exhibit "P-15", docket, pp. 389-399. 18 Formal Offer of Evidence, docket, pp. 406-420. 19 Docket, pp. 427-428 and 443-445, respectively. 20 Minutes of the hearing dated February 1, 2016, docket, p. 446. 21 Docket, pp. 450-481. 22 Docket, pp. 484-494. 23 Resolution dated March 8, 2016, docket, p. 496.

DECISION CTA Case No. 8859 THE ISSUES The parties submitted the following issues24 for this Court's resolution: 1. Whether petitioner has complied with the procedural requirements for this Court to take cognizance of this Petition for Review; and 2. Whether petitioner is entitled to claim the unutilized input VAT attributable to its zero-rated sales to Energy Development Corporation (EDC) and the Maibarara Geothermal, Inc. (Maibarara). THE RULING OF THE COURT Petitioner argues that it is entitled to a refund of its unutilized input taxes attributable to its zero-rated sales pursuant to Section 112(A) in relation to Sections 106(A)(2)(c) and 108(B)(3) of the National Internal Revenue Code (NIRC) of 1997, as amended. Pertinent provisions state as follows: SEC. 112. Refunds or Tax Credits oJinput Tax.- (A) Zero-rated or Effictive!J Zero-rated Safes. - Any VAT- registered person, whose sales are zero-rated or effectively zero- rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax: Provided, however, That in the case of zero-rated sales under Section 106(A)(2)(a)(1), (2) and (b) and Section 108(B)(1) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP): Provided, further, That where the taxpayer is engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt sale of goods of properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales: Provided, .ftna!!J, That for a person making sales that are zero-rated under Section 108(B)(6), the input taxes shall be allocated ratably between his zero-rated and non-zero-rated sales. 24 Stipulation of Issues, JSFI, docket, p. 231.

DECISION CTA Case No. 8859 SEC. 106. Value-added Tax on Sale ofGoods or Properties.- (A) Rate and Base ofTax.- xxx XXX XXX XXX (2) The following sales by VAT-registered persons shall be subject to zero percent (0%) rate: XXX XXX XXX (c) Sales to persons or entltles whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects such sales to zero rate. SEC. 108. Value-added Tax on Sale ofServices and Use or Lease of Properties. - XXX XXX XXX (B) Transactions SubJect to Zero Percent (0%) Rate. - The following services performed in the Philippines by VAT-registered persons shall be subject to zero percent (0%) rate: XXX XXX XXX (3) Services rendered to persons or entitles whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate; To claim refund or tax credit of unutilized input taxes based on Section 112(A) of the NIRC of 1997, as amended, the following requisites must be complied with: 1. the claimant must be a VAT-registered person; 2. there must be zero-rated or effectively zero-rated sales; f

DECISION CTA Case No. 8859 3. input taxes were incurred or paid; 4. such input taxes are attributable to zero-rated or effectively zero-rated sales; 5. said input taxes were not applied against any output VAT liability; and 6. the administrative and judicial claims for refund were seasonably flled. Sixth Requisite: Petitioner's administrative and judicial claims were seasonably filed The instant claim for refund covers the 2nd to 4th taxable quarters of the year 2012, thus, the 2-year prescriptive period for filing of the corresponding administrative claim for refund pursuant to Section 112(A) of the NIRC of 1997, as amended, are as follows: Period End of Taxable 2-Year 2nd Qtr. Quarter Prescriptive 3rd Qtr. 4th Qtr. 6/30/2012 Period 9/30/2012 12/31/2012 6/30/2014 9/30/2014 12/31/2014 Hence, the administrative claim for refund, specifically covering the periods from May 1, 2012 to December 31, 2012, was seasonably flled by petitioner on November 26,2013.25 Corollary thereto, Section 112(C) of the NIRC of 1997, as amended, provides for the period within which respondent must act on the administrative claim and the corresponding remedy of the taxpayer in case of the former's denial or inaction on the claim, to wit: SEC. 112. Refunds or Tax Credits ofInput Tax.- XXX XXX rXXX 25 Exhibit "P-5".

DECISION CTA Case No. 8859 (C) Period within which Refund or Tax Credit ofInput Taxes shall be Made. - In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsection (A) hereof. In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one hundred twenty day-period, appeal the decision or the unacted claim with the Court ofTax Appeals. (Emphasis supplied) Petitioner made its last submission of supporting documents on March 12, 2014 and was received by Group Supervisor Alfredo M. Santos of Revenue District Office No. 43A.26 Applying the afore-mentioned provision, respondent had 120 days from March 12, 2014 to act on the administrative claim for refund or until July 10, 2014. However, respondent failed to act on petitioner's claim. Consequently, the latter had 30 days from July 10,2014 to appeal such inaction before this Court, or until August 9, 2014. Hence, the instant petition, flied on August 8, 2014, was filed within the reglementary period provided by law. First Requisite: Petitioner is a VAT- Registered Entity Petitioner is registered with the BIR as a VAT taxpayer in accordance with Section 236 of the Tax Code with TIN 007-203-649-000.27 Second Requisite: Petitioner had zero-rated sales Based on Sections 106(A)(2)(c) and 108(B)(3) of the NIRC of 1997, as amended, quoted earlier, sales of goods/properties or services rendered to persons or entities whose exemption under special laws or international 26 Exhibit "P-7". f 27 Exhibit "P-2".

DECISION CTA Case No. 8859 agreements to which the Philippines is a signatory effectively subjects the supply of such goods/properties or services to zero percent (0%) rate. The same was reiterated in Sections 4.106-5(c) and 4.108-5(b)(3) of Revenue Regulations (RR) No. 16-05, as amended by RR No. 04-07. The special law applicable in petitioner's case is Republic Act (RA) No. 9513 or the Renewable Energy Act of 2008, which was approved on December 16, 2008. Among the incentives provided under the law is that all renewable energy (RE) Developers are entitled to zero-rated VAT on their purchases of local supply of goods, properties and services needed for the development, construction and installation of their plant facilities. Chapter VII, Section 15(g) of the law provides: CHAPTER VII GENERAL INCENTIVES SECTION 15. Incentives for Renewable Energy Prqjects and Activities. - RE Developers of renewable energy facilities, including hybrid systems, in proportion to and to the extent of the RE component, for both power and non-power applications, as duly certified by the DOE, in consultation with the BOI, shall be entitled to the following incentives: XXX XXX XXX (g) Zero Percent Value-Added Tax Rate.- The sale of fuel or power generated from renewable sources of energy such as, but not limited to, biomass, solar, wind, hydropower, geothermal, ocean energy and other emerging energy sources using technologies such as fuel cells and hydrogen fuels, shall be subject to zero percent (0%) value-added tax (VA1), pursuant to the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act No. 9337. All RE Developers shall be entitled to zero-rated value added tax on its purchases oflocal supply ofgoods, properties and services needed for the development, construction and installation of its plant facilities. This provision shall also apply to the whole process of exploring and developing renewable energy sources up to its conversion into power,. including but not limited to, the services t'

DECISION CTA Case No. 8859 Page 10 of33 performed by subcontractors and/or contractors. (Emphasis and underscon�ng supplied) The same is implemented by Part III, Rule 5, Section 13(G)(b) of DOE Circular No. DC2009-05-0008 issued by the Department of Energy (DOE) on May 25, 2009, which provides as follows: PART III. Incentives for Renewable Energy Prqjects and Activities RULE 5. General Incentives and Privileges for Renewable Energy Development SEC. 13. Fiscal Incentives for Renewable Energy Projects and Activities DOE-certified existing and new RE Developers of RE facilities, including Hybrid Systems, in proportion to and to the extent of the RE component, for both Power and Non-Power Applications, shall be entitled to the following incentives: XXX XXX XXX G. Zero Percent Value-Added Tax Rate The following transactions/activities shall be subject to zero percent (0%) value-added tax (VAT), pursuant to the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act No. 9337: XXX XXX XXX (b) Purchase of local goods, properties and services needed for the development, construction, and installation of the plant facilities of RE Developers; and (c) Whole process of exploration and development of RE sources up to its conversion into power, including, but not limited to, the services performed by subcontractors and/or contractors. (Emphasis supplied) ~

DECISION CTA Case No. 8859 Page 11 of33 Chapter VII, Section 25 of RA No. 9513, as implemented by Part VII, Rule 13, Section 39 of DOE Circular No. DC2009-05-008, further provides that RE Developers and local manufacturers, fabricators and suppliers of locally- produced renewable energy equipment shall register with the DOE, through the Renewable Energy Management Bureau. Upon registration, a certification shall be issued to each RE Developer and local manufacturer, fabricator and supplier of locally-produced renewable energy equipment to serve as the basis of its entitlement to incentives provided under Chapter VII of RA No. 9513. Clearly, from the foregoing, to qualify for VAT zero-rating as contemplated in RA No. 9513 and DOE Circular No. DC2009-05-008, petitioner must prove by sufficient evidence that: 1. it is engaged in the sale of goods and services to RE Developers; and 2. the goods and services sold (a) are needed for the development, construction, and installation of the RE Developers' plant facilities; or (b) pertain to the whole process of exploration and development of RE sources up to its conversion into power. But as far as the supply of locally-produced renewable energy equipment is concerned, petitioner must additionally show that it is also registered with the DOE, in order to qualify the sale of said equipment to VAT zero-rating. Among petitioner's clients during taxable year 2012 were REDevelopers of geothermal energy resources, namely, EDC and Maibarara, which are registered with the DOE, hence, are entitled to the incentives granted under RA No. 9513, as evidenced by the following: Energy Development Corporation: DOE Certificate of Date of Issuance Exhibit 1) Tongonan, Leyte Registration No. Nos. 2) Palinpinon, Negros Occidental October 23, 2009 3) Bacon-Manito, Sorsogon/Albay GRESC 2009-10-001 October 23, 2009 P-8-1 4) Kidapawan City, North Cotabato GRESC 2009-10-002 October 23, 2009 P-8-3 GRESC 2009-10-003 October 23, 2009 P-8-5 Maibarara Geothermal Incorporated GRESC 2009-10-003 January 05, 2011 P-8-7 GRESC 2011-01-025 P-9-1 f

DECISION CTA Case No. 8859 As such, all their purchases of goods and services from petitioner which are needed for the development, construction, and installation of plant facilities and those pertaining to the whole process of exploration and development of RE sources up to its conversion into power are entitled to VAT zero-rating, with the exception of locally produced RE equipment purchases from the latter, if any, since petitioner failed to show that it is registered with the DOE. In its amended Quarterly VAT Returns for taxable year 2012, petitioner reported a total amount of P226,139,207.38 zero-rated sales from May 1 to December 31, 2012, broken down as follows: Period Zero-Rated Sales 2nd Qtr.28 :P 83,484,198.55 Less: April 201229 - May to June 2012 83,484,198.55 3rd Qtr.30 91,297,017.06 4th Qtr.31 51,357,991.77 TOTAL P226,139,207.38 Petitioner presented its Schedule of Zero-Rated Sales32 with the related invoices33 and official receipts34, which were examined by the Court- commissioned Independent CPA, Ms. Mary Ann C. Capuchino. A perusal of the Independent CPA Report35 shows that out of the reported zero-rated sales of P226,139,207.38, the amount of P49,935,076.29 must be disallowed for the reasons stated hereunder: f 28 Exhibit "P-3-4", line 17. 29 Exhibit "P-19-1", line 14. 30 Exhibit "P-3-10", line 17. 31 Exhibit "P-3-15", line 17. 32 Exhibit "P-21". 33 Exhibit "P-10-1". 34 Exhibit "P-10-2". 35 Exhibit "P-16", docket, pp. 286-325.

DECISION CTA Case No. 8859 Page 13 of33 Findings Amount ICPA Report Reference Sale of goods supported by original VAT invoice stamped as zero-rated sales but there is an amount of VAT presented in (Exh. "P-16") the VAT invoice p 2,123,364.18 Annex K36 Sale of goods supported by original VAT invoices stamped as zero-rated sales but dated outside the period of claim 44,251,776.56 Annex L37 Sale of service supported by original VAT OR stamped as 3,386,921.17 Annex M38 zero-rated sales but dated outside period of claim 172,890.89 Annex N39 Sale of services which are not supported by original VAT 123.49 ORs stamped as zero-rated sales Annexes J-1 40 P49,935,076.29 Overstatement of sales per VAT Return/Schedule In addition, the Court finds that the amount of P76,489,541.59 must likewise be disallowed based on the following grounds: ICPA Report Exh. No. Client OR OR Date Invoice Invoice Amount (Exh "P- No. No. Date (in PHp) 16") 1083 16,575.33 1090 2,502,977.78 Annex 1100 1101 242,874.47 Sale ofservices supported by VAT OR unreadable as to reference invoices 1102 273,233.51 1108 121,437.02 ENERGY DEVELOPMENT 1104 1,021,347.20 1105 1,176,422.26 H P-30-120 CORP 215 8/17/2012 1106 2,404,717.03 1116 1,332,895.90 ENERGY DEVELOPMENT 765,442.89 H P-30-120 CORP 215 8/17/2012 I ENERGY DEVELOPMENT H P-30-120 CORP 215 8/17/2012 ENERGY DEVELOPMENT H P-30-120 CORP 215 8/17/2012 ENERGY DEVELOPMENT H P-30-120 CORP 215 8/17/2012 ENERGY DEVELOPMENT H P-30-120 CORP 215 8/17/2012 ENERGY DEVELOPMENT H P-30-136 CORP 216 8/17/2012 ENERGY DEVELOPl\ffiNT H P-30-136 CORP 216 8/17/2012 ENERGY DEVELOPMENT H P-30-136 CORP 216 8/17/2012 ENERGY DEVELOPMENT H P-30-136 CORP 216 8/17/2012 36 Docket, p. 342. 37 Docket, p. 343. 38 Docket, p. 344. 39 Docket, p. 345. 40 Docket, p. 341.

DECISION CTA Case No. 8859 Page 14 of33 Subtotal 9,857,923.39 Sale ofservices supported by VAT OR unreadable as to date, reference invoices, client name and amount ENERGY DEVELOPMENT H P-30-016 CORP 201 6/22/2012 11,531,100.56 ENERGY DEVELOPMENT 811,458.99 12,342,559.55 H P-30-107 CORP 212 7/27/2012 Subtotal Sale ofservices supported by VAT OR unreadable as to date, reference invoices and client name ENERGY DEVELOPMENT H P-30-111 CORP 214 8/3/2012 3,178,23 7.36 3,178,237.36 Subtotal Sale ofservices supported by VAT OR unreadable as to date, reference invoices and amount ENERGY DEVELOPMENT H P-30-057 CORP 204 6/29/2012 4,744,839.70 ENERGY DEVELOPMENT 1,282,502.76 6,027,342.46 H P-30-104 CORP 211 7/20/2012 Subtotal Sale ofservices supported by VAT OR unreadable as to date and reference invoices ENERGY DEVELOPMENT H P-30-075 CORP 206 7/6/2012 4,901,849.50 16,439.00 ENERGY DEVELOPMENT 2,832,212.04 H P-30-091 CORP 207 7/6/2012 4,566,381.75 12,316,882.29 ENERGY DEVELOPMENT H P-30-093 CORP 208 7/13/2012 ENERGY DEVELOPl'viENT 12/21/201 H P-30-242 CORP 248 2 Subtotal Sale ofservices supported by VAT OR unreadable as to date and client name ENERGY DEVELOPMENT H P-30-147 CORP 217 8/17/2012 5,479.73 5,479.73 Subtotal Sale ofservices supported by VAT OR unreadable as to date ENERGY DEVELOPMENT H P-30-219 CORP 238 11/9/2012 2,227,570.33 11/28/201 MAIBARARA 4,943,005.86 2 H P-30-264 GEOTHERMAL INC 242 11/28/201 2,826,932.51 9,997,508. 70 MAIBARARA 2 H P-30-267 GEOTHERMAL INC 243 Subtotal Sale ofservice with VAT invoice but without VAT OR MAIBARARA ] andJ-1 P-32-5 GEOTHERMAL INC 1140 7/31/2012 6,088,700.16 Subtotal 6,088,700.16 Sale ofgoods with VAT invoice but the term "VAT Zero-Rated" was not indicated thereon ENERGY DEVELOPl'viENT I P-31-03 CORP 1033 5/25/2012 118,289.96 ENERGY DEVELOPMENT 171,634.51 I P-31-05 CORP 1032 5/24/2012 1,078,178.63 1,368,103.10 ENERGY DEVELOPMENT I P-31-30 CORP 1031 5/24/2012 Subtotal Nature ofservice rendered has no details ENERGY DEVELOPMENT H P-30-001 CORP 185 5/11/2012 6,516,603.64 1,474,227.23 ENERGY DEVELOPMENT 615,000.00 H P-30-010 CORP 196 6/8/2012 H P-30-024 ENERGY DEVELOPMENT 202 6/29/2012 950 CORP f

DECISION CTA Case No. 8859 H P-30-024 ENERGY DEVELOPMENT 202 6/29/2012 951 861,000.00 CORP 630,375.00 H P-30-024 ENERGY DEVELOPMENT 202 6/29/2012 951 CORP H P-30-024 ENERGY DEVELOPMENT 202 6/29/2012 960 2,089,583.19 CORP H P-30-024 ENERGY DEVELOPMENT 202 6/29/2012 967 783,214.29 CORP H P-30-024 ENERGY DEVELOPMENT 202 6/29/2012 975 1,412,043.89 CORP 61,172.86 H P-30-024 ENERGY DEVELOPMENT 202 6/29/2012 977 CORP H P-30-038 ENERGY DEVELOPivfENT 203 6/29/2012 978 535,262.50 CORP Subtotal 14,978,482.60 Nature ofservice not needed for development, construction, and installation ofplant facilities nor pertaining to the process ofconversion to oower ENERGY DEVELOPivfENT 10/10/201 H P-30-200 CORP 235 2 1082 328,322.25 Subtotal 328,322.25 TOTAL 76,489,541.59 In sum, out of the declared zero-rated sales amounting to P226,139,207.38, only the amount of P99,714,589.50 is considered valid, computed as follows: Zero-Rated Sales per VAT Returns p 226,139,207.38 Less: P49,935,076.29 126,424,617.88 Disallowances per Independent CPA's Report 76,489,541.59 P99,714,589.50 Additional Disallowances per the Court's verification Valid Zero-Rated Sales Third Requisite: Petitioner incurred or paid input taxes Petitioner declared a total amount of P11,989,902.83 input taxes, as detailed below, for the periods May to June, and 3rd and 4th quarters of taxable year 2012~

DECISION CTA Case No. 8859 Page 16 of33 2nd Qtr.41 Less: April May - June 2012 201242 Domestic purchase of goods other than capital p 569,071.05 p (315,065.471 p 254,005.58 goods 3,841,855.00 (299,070.00) 3,542,785.00 Importation ofg_oods other than capital goods 1,468,821.71 160,879.67 Domestic purchase of services P5,879,747.76 (1 ,307 ,942.04) P(1 ,922,077.51) P3,957 ,670.25 Total May-June 3rd Qtr.43 4th Qtr.44 Total 2012 p 624,989.40 p 1,112,763.05 Domestic purchase of goods p 254,005.58 p 233,768.07 966,625.00 5,877' 133.29 other than capital goods 5,000,006.49 Importation of goods other 3,542,785.00 1,367,723.29 2,584,657.17 than capital goods P4,176,271.57 P11,989,902.83 Domestic purchase of 160,879.67 2,254,469.65 serv1ces P3,957,670.25 P3,855,961.01 Total However, out of the above input VAT of P11 ,989,902.83, only P7,332,514.81 is being claimed by petitioner for refund or issuance of tax credit certificate.45 And out of the P11,989,902.83 reported input VAT, only P11,959,466.58 was part of petitioner's Schedule ofPurchases.46 The difference amounting to P30,436.25 was accounted for as follows: 47 Details Amount a. May to June Difference P(57,744.75) 23,765.60 P(33,979.15) 1. Reversal of input VAT from supplier (i.e. LTC Multi Services Inc.) 45,116.08 152,689.15 60,052.96 2. Input VAT reported in the VAT returns but has no support 47,520.11 b. 3rd Quarter Difference 1. Input VAT reported in the VAT returns for July but has no Support 2. Input VAT reported in the VAT returns for August but has no support 3. Input VAT reported in the VAT returns for September but has no support 41 Exhibit "P-3-4", lines 21F, 21H, and 21J. 42 Exhibit "P-19-1", lines 18F, 18H, and 18J. 43 Exhibit "P-3-10", lines 21F, 21H, and 21J. 44 Exhibit "P-3-15", lines 21F, 21H, and 21J. 45 Exhibit "P-5" and Petition for Review, docket, pp. 17-30. 46 Exhibit "P-26". 47 Exhibit "P-16", Annex Q, docket, p. 348.

DECISION (88,273.75) (88,273.75) CTA Case No. 8859 P30,436.25 c. 4th Quarter Difference 1. Input VAT in schedule but not reported in the VAT returns Petitioner submitted various suppliers' invoices, official receipts, Bureau of Customs (BOC) Import Entries and Internal Revenue Declarations (IEIRDs)48 to substantiate the amount of P11,959,466.58 per Schedule of Purchases which were examined by the Independent CPA. Upon scrutiny of the Independent CPA Report and the related supporting documents, the Court finds that the input taxes in the amount ofP1,014,837.33 should be disallowed for non-compliance with the substantiation requirements under Sections 110(A) and 113(A) and (B) of the NIRC of 1997, as amended, in relation to Sections 4.110-2, 4.110-3, 4.110-8, and 4.113-1 of RR No. 16-05, as amended. Below is the detailed breakdown of the disallowed input VAT of P1 ,014,837.33: Findings Amount ICPA Report (Exh. "P- Domestic purchases of goods (other than capital goods) supported with original VAT invoices but has no Authority to 16") Annex49 Print (ATP) Domestic purchases of services supported by with original VAT p 344,124.00 y ORs not dated within the taxable year Importation of goods (other than capital goods) supported with 184,922.91 z Certified True Copies of IEIRDs not dated within the periods of claim 244,413.00 AA Domestic purchases of services supported with original VAT ORs but has no date indicated 5,546.71 BB Domestic purchases of services supported with original VAT ORs but not named after the Company 14,872.70 cc Domestic purchases of goods (other than capital goods) supported with original VAT invoices but not named after the 759.26 DD Company Domestic purchases of goods (other than capital goods) 2,687.14 EE supported with photocopies of VAT invoices Domestic_purchases of services supported with Non-VAT ORs 23,029.92 FF Domestic purchases of goods (other than capital goods) supported with original VAT invoices but has no "VAT" 144.64 GG printing on supplier's TIN Domestic purchases of services supported with tape receipt 53,967.27 HH 48 Exhibits "P-38" to "P-55". 49 Docket, pp. 368-383.

DECISION CTA Case No. 8859 Domestic purchases of services supported with statement of account (SOA) 64,775.72 II Domestic purchases of services supported with acknowledgment receipt 69,388.56 JJ Importation of goods (other than capital goods) supported with original VAT invoices and photocopied IEIRDs but the amount 3,340.31 KK of input VAT claimed is overstated (amount of overstatement) Domestic purchases of services properly supported with original VAT ORs but the amount of input VAT claimed is overstated (amount of overstatement) 2,865.19 LL P1,014,837 .33 In addition, petitioner's claimed input VAT in the amount of P1 0,669,111.15, as detailed below, should also be disallowed for non-compliance with the substantiation requirements under the VAT law and regulations: ICPA Report (Exh "P-16") Invoice/OR/ Amount (in PHp) Annex Exh. No. Supplier IEIRD No. Date 3,009.00 Amount ofpurchase of goods is P1,000 or more butpetitioner's TIN not indicated in VAT invoice; 4,266.00 VATinvoice has no ATP 7,110.00 9,785.36 s P-38-112 CANON MKTG PHILS INC 23264 10/2/2012 1,872.75 CANON MKTG PHILS INC 734789 10/8/2012 26,043.11 s P-38-113 675.00 P-38-114 to 803.57 s P-38-115 CANON MKTG PHILS INC 737894 11/7/2012 722757 5/29/2012 2,710.71 v P-41-05 CANON MKTG PHILS INC 684675 5/9/2012 739.29 v P-41-07 CANON MKTG PHILS INC 2,378.57 Subtotal 1,971.43 Amount ofpurchase ofgoods is P1,000 or more but petitioner's TIN and address not indicated in VAT invoice 9,278.57 CABEPCO BEARING AND PARTS 317.42 P-38-032 co 407.14 s 68113 9/18/2012 897.85 2,626.06 CABEPCO BEARING AND PARTS 15,120.00 P-38-033 co 16,595.25 s 66993 7/9/2012 1,179.74 CABEPCO BEARING AND PARTS P-38-106 co 962.14 s 68370 10/8/2012 4,973.77 CABEPCO BEARING AND PARTS P-38-107 co s 68369 10/8/2012 CABEPCO BEARING AND PARTS P-41-02 co v 66287 5/23/2012 CABEPCO BEARING AND PARTS P-41-04 co v 66294 5/23/2012 Subtotal Amount ofpurchase ofgoods is P1,000 or more but petitioner's TIN not indicated in VAT invoice s P-38-003 DAN DARYLL PHILS INC 61526 5/31/2012 s P-38-004 CO BAN KIAT HARDWARE INC 504907 6/13/2012 s P-38-006 DAN DARYLL PHILS INC 60835 5/21/2012 s P-38-008 FRANCISCO HARDWARE INC 108591 5/30/2012 s P-38-009 MABUHAY VINYL CORP 500001749 5/4/2012 s P-38-010 MABUHAY VINYL CORP 500001750 5/4/2012 PRUDENTIAL INTERTRADE s P-38-012 PHILS INC 51284 5/22/2012 KARL GELSON INDUSTL SALES s P-38-018 CORP 21840 5/22/2012 KARL GELSON INDUSTL SALES s P-38-019 CORP 21815 5/17/2012

DECISION CTA Case No. 8859 KARL GELSON INDUS1L SALES s P-38-020 CORP 21193 5/31/2012 1,021.82 6/14/2012 4,660.72 s P-38-021 FIRETRON SAFETY SYSTEM 4382 5/22/2012 837.77 PHILIPPINE ENVIRONMENT & 6/13/2012 522.00 TECHNOLOGICAL SYSTEMS AND 6/15/2012 812.14 s P-38-022 SERVICES INC 8293 6/6/2012 838.28 PRUDENTIAL INTERTRADE 6/1/2012 573.65 s P-38-023 PHILS INC 51387 8/8/2012 4,328.57 PRUDENTIAL INTERTRADE 8/13/2012 426.43 8/1/2012 658.93 s P-38-024 PHILS INC 51393 7/17/2012 668.58 7/17/2012 917.15 PRUDENTIAL INTERTRADE 7/10/2012 7/25/2012 2,087.33 s P-38-025 PHILS INC 51349 171.96 8/15/2012 PRUDENTIAL INTERTRADE 900.00 8/23/2012 s P-38-026 PHILS INC 51337 261.87 8/15/2012 CABEPCO BEARING AND PARTS 261.87 P-38-034 co 7/24/2012 s 67446 878.64 8/2/2012 s P-38-035 COLEMAC SAFETY CORP 3405 132.62 8/2/2012 s P-38-036 COLEMAC SAFETY CORP 3380 878.64 7/15/2012 s P-38-037 COLEl'viAC SAFETY CORP 3379 14,400.00 7/15/2012 s P-38-038 COLEMAC SAFETY CORP 3378 8/24/2012 857.04 9/6/2012 655.74 s P-38-039 DAN DARYLL PHILS INC 63686 8/23/2012 1,055.36 8/23/2012 726.10 s P-38-040 DAN DARYLL PHILS INC 64476 8/15/2012 663.12 8/15/2012 2,706.01 FELPET TRADING & MATERIALS 8/23/2012 1,265.46 8/13/2012 180.00 s P-38-044 RECOVERY SERVICES 0144 8/2/2012 744.64 7/21/2012 1,013.57 FELPET TRADING & MATERIALS 7/26/2012 628.29 7/26/2012 444.65 s P-38-045 RECOVERY SERVICES 0147 7/17/2012 259.83 7/9/2012 912.00 FELPET TRADING & MATERIALS 7/13/2012 240.54 514.29 s P-38-046 RECOVERY SERVICES 0145 7/17/2012 495.63 FELPET TRADING & MATERIALS 7/23/2012 443.57 s P-38-047 RECOVERY SERVICES 0138 8/14/2012 1,928.57 FELPET TRADING & MATERIALS 7/30/2012 2,456.40 s P-38-048 RECOVERY SERVICES 0141 7/31/2012 1,520.14 FELPET TRADING & MATERIALS f s P-38-049 RECOVERY SERVICES 0140 FELPET TRADING & MATERIALS s P-38-050 RECOVERY SERVICES 0128 FELPET TRADING & MATERIALS s P-38-051 RECOVERY SERVICES 0133 s P-38-052 FIRETRON SAFETY SYSTEM 5013 s P-38-053 FRANCISCO HARDWARE INC 108808 s P-38-054 FRANCISCO HARDWARE INC 108777 s P-38-055 FRANCISCO HARDWARE INC 108776 s P-38-056 FRANCISCO HARDWARE INC 108760 s P-38-057 FRANCISCO HARDWARE INC 108759 s P-38-058 FRANCISCO HARDWARE INC 108791 s P-38-059 FRANCISCO HARDWARE INC 108749 s P-38-060 FRANCISCO HARDWARE INC 108733 s P-38-061 FRANCISCO HARDWARE INC 108711 s P-38-062 FRANCISCO HARDWARE INC 108721 s P-38-063 FRANCISCO HARDWARE INC 108720 s P-38-064 FRANCISCO HARDWARE INC 108697 s P-38-065 FRANCISCO HARDWARE INC 108683 s P-38-066 FRANCISCO HARDWARE INC 108692 GY INDUSTRIAL MILL SUPPLY s P-38-071 CORP 38226 KARL GELSON INDUS1L SALES s P-38-077 CORP 22559 KARL GELSON INDUS1L SALES s P-38-078 CORP 22826 KARL GELSON INDUS1L SALES s P-38-079 CORP 22595 KARL GELSON INDUS1L SALES s P-38-080 CORP 22607

DECISION CTA Case No. 8859 Page 20 of33 KARL GELSON INDUSTL SALES s P-38-081 CORP 22926 8/31/2012 2,093.23 PHILIPPINE ENVIRONMENT & 837.77 TECHNOLOGICAL SYSTEMS AND 837.77 s P-38-083 SERVICES INC 8497 7/25/2012 125.36 217.50 PHILIPPINE ENVIRONMENT & 2,699.86 2,711.14 TECHNOLOGICAL SYSTEMS AND 2,169.75 878.57 s P-38-084 SERVICES INC 8463 7/17/2012 439.29 1,063.39 PRUDENTIAL INTERTRADE 160.71 450.00 s P-38-085 PHILS INC 51696 9/6/2012 225.00 642.86 s P-38-086 RAPIDE AUTO SERVICE CENTER ST3889/PT14207 7/9/2012 1,285.72 3,485.14 s P-38-087 RAQUE TRADING & SERVICES 0212 7/17/2012 1,440.00 4,392.86 s P-38-088 RAQUE TRADING & SERVICES 0224 7/17/2012 4,467.86 s P-38-089 RMEV ENTERPRISES 0139 7/26/2012 455.38 s P-38-090 ROSEPRIME ENTERPRISE 73190 8/10/2012 621.43 s P-38-091 ROSEPRIME ENTERPRISE 76071 7/13/2012 9,428.57 s P-38-092 WYLER ENTERPRISES INC 58577 9/8/2012 1,135.72 s P-38-094 WYLER ENTERPRISES INC 58142 8/4/2012 1,478.58 300.00 s P-38-095 WYLER ENTERPRISES INC 58322 8/22/2012 278.57 508.93 s P-38-096 WYLER ENTERPRISES INC 58090 8/1/2012 1,390.71 s P-38-097 ANDISON INDUSTRIAL SALES 15983 11/7/2012 409.29 s P-38-098 ANDISON INDUSTRIAL SALES 15982 11/7/2012 3,267.86 213.21 s P-38-099 ARAHR SERVICES MKTG INC 3901 12/19/2012 1,179.17 s P-38-100 ARAHR SERVICES MKTG INC 3894 11/23/2012 1,573.38 s P-38-101 ARAHR SERVICES MKTG INC 3897 12/7/2012 941.94 534.96 s P-38-102 ARAHR SERVICES MKTG INC 3886 10/20/2012 318.56 ASSOCIATE BEARING & PARTS 280.08 s P-38-104 CORP 46181 11/20/2012 390.96 CABEPCO BEARING AND PARTS 1,244.40 s P-38-105 co 68490 10/20/2012 1,907.14 CABEPCO BEARING AND PARTS 554.40 P-38-109 co s 68645 11/9/2012 1,230.77 235.21 CABEPCO BEARING AND PARTS 930.00 s P-38-110 co 68690 11/14/2012 1,094.98 CABEPCO BEARING AND PARTS s P-38-111 co 68849 12/4/2012 s P-38-116 CO BAN KIAT HARDWARE INC 510140 10/9/2012 s P-38-117 CO BAN KIAT HARDWARE INC 512704 11/21/2012 s P-38-118 CO BAN KIAT HARDWARE INC 509517 9/18/2012 s P-38-119 COLEMAC SAFETY CORP 3572 11/21/2012 s P-38-120 COLEMAC SAFETY CORP 3573 11/21/2012 s P-38-121 COLEMAC SAFETY CORP 3547 11/8/2012 s P-38-122 COLEMAC SAFETY CORP 3546 11/8/2012 s P-38-123 DAN DARYLL PHILS INC 70595 11/21/2012 s P-38-124 DAN DARYLL PHILS INC 69575 10/31/2012 s P-38-125 DAN DARYLL PHILS INC 67924 10/1/2012 s P-38-126 DAN DARYLL PHILS INC 71822 12/14/2012 s P-38-127 DAN DARYLL PHILS INC 71341 12/4/2012 FELPET TRADING & MATERIALS s P-38-133 RECOVERY SERVICES 0163 11/18/2012 FELPET TRADING & MATERIALS s P-38-134 RECOVERY SERVICES 0171 11/29/2012 FELPET TRADING & l'v1ATERIALS s P-38-135 RECOVERY SERVICES 0170 11/29/2012 FELPET TRADING & MATERIALS s P-38-136 RECOVERY SERVICES 0162 11/7/2012 FELPET TRADING & l'v1ATERIALS s P-38-137 RECOVERY SERVICES 0159 10/16/2012 FELPET TRADING & MATERIALS s P-38-138 RECOVERY SERVICES 0156 10/11/2012 s P-38-139 FIRETRON SAFETY SYSTEM 7561 10/31/2012 s P-38-140 FRANCISCO HARDWARE INC 108952 12/7/2012 s P-38-141 FRANCISCO HARDWARE INC 108930 11/11/2012

DECISION CTA Case No. 8859 s P-38-142 FRANCISCO HARDWARE INC 108932 11/21/2012 589.83 11/9/2012 1,307.14 s P-38-143 FRANCISCO HARDWARE INC 108917 10/3/2012 4,285.71 11/7/2012 s P-38-144 FRANCISCO HARDWARE INC 108847 11/7/2012 514.29 11/9/2012 1,400.79 s P-38-145 FRANCISCO HARDWARE INC 108910 10/24/2012 10/24/2012 538.07 s P-38-146 FRANCISCO HARDWARE INC 108911 10/17/2012 1,465.07 10/12/2012 1,558.96 s P-38-147 FRANCISCO HARDWARE INC 108916 10/12/2012 10/2/2012 634.29 s P-38-148 FRANCISCO HARDWARE INC 108891 10/2/2012 1,773.22 12/11/2012 s P-38-149 FRANCISCO HARDWARE INC 108889 193.40 11/6/2012 2,489.99 s P-38-150 FRANCISCO HARDWARE INC 108877 11/9/2012 486.43 s P-38-151 FRANCISCO HARDWARE INC 108867 1,435.70 11/21/2012 s P-38-152 FRANCISCO HARDWARE INC 108868 2,100.00 11/19/2012 s P-38-153 FRANCISCO HARDWARE INC 108840 2,850.00 10/24/2012 s P-38-154 FRANCISCO HARDWARE INC 108842 2,960.35 11/7/2012 s P-38-156 GOLDEN BAT (FAR EAST) INC 112821 6,741.42 10/8/2012 GY INDUSTRIAL MILL SUPPLY 1,176.41 11/21/2012 s P-38-157 CORP 394139 2,019.64 12/4/2012 GY INDUSTRIAL MILL SUPPLY 3,166.10 10/9/2012 s P-38-158 CORP 394314 969.00 10/4/2012 KARL GELSON INDUSTL SALES 771.42 12/11/2012 s P-38-165 CORP 24018 837.77 11/12/2012 KARL GELSON INDUSTL SALES 1,928.57 10/23/2012 s P-38-166 CORP 23995 11/9/2012 769.28 10/12/2012 KARL GELSON INDUSTL SALES 10/12/2012 1,736.78 9/5/2012 s P-38-167 CORP 23757 10/2/2012 129.44 11/29/2012 2,015.76 KARL GELSON INDUSTL SALES 11/20/2012 11/9/2012 824.25 s P-38-168 CORP 23924 11/15/2012 2,322.91 11/8/2012 4,360.05 KARL GELSON INDUSTL SALES 10/23/2012 10/23/2012 878.58 s P-38-169 CORP 23551 10/9/2012 2,228.57 KARL GELSON INDUSTL SALES 5/30/2012 241.07 6/14/2012 321.43 s P-38-170 CORP 24019 6/21/2012 2,240.36 803.57 KARL GELSON INDUSTL SALES 6/29/2012 754.28 3,053.58 s P-38-171 CORP 24207 450.00 PHILIPPINE ENVIRONMENT & 3,278.57 942.53 TECHNOLOGICAL SYSTEMS AND 369.64 s P-38-172 SERVICES INC 8739 261.87 PHILIPPINE ENVIRONMENT & f TECHNOLOGICAL SYSTEMS AND s P-38-173 SERVICES INC 8720 PRUDENTIAL INTERTRADE s P-38-174 PHILS INC 52113 PRUDENTIAL INTERTRADE s P-38-175 PHILS INC 51971 PRUDENTIAL INTERTRADE s P-38-176 PHILS INC 51914 s P-38-177 RAQUE TRADING & SERVICES 0280 s P-38-178 RAQUE TRADING & SERVICES 0047 s P-38-179 RAQUE TRADING & SERVICES 0046 s P-38-180 RAQUE TRADING & SERVICES 0355 s P-38-181 ROSEPRIME ENTERPRISE 81281 s P-38-182 WYLER ENTERPRISES INC 60098 s P-38-183 WYLER ENTERPRISES INC 59893 s P-38-184 WYLER ENTERPRISES INC 59689 s P-38-185 WYLER ENTERPRISES INC 59789 s P-38-186 WYLER ENTERPRISES INC 59656 s P-38-187 WYLER ENTERPRISES INC 59381 s P-38-188 WYLER ENTERPRISES INC 59393 s P-38-189 WYLER ENTERPRISES INC 59106 CABEPCO BEARING AND PARTS P-41-03 co v 66406 v P-41-08 DAN DARYLL PHILS INC 62320 v P-41-09 DAN DARYLL PHILS INC 62739 FELPET TRADING & MATERIALS v P-41-10 RECOVERY SERVICES 0125

DECISION CTA Case No. 8859 v P-41-12 FRANCISCO HARDWARE INC 108685 6/28/2012 102.86 342.86 v P-41-13 FRANCISCO HARDWARE INC 108684 6/29/2012 267.86 301.60 v P-41-14 FRANCISCO HARDWARE INC 108664 6/22/2012 201.43 273.76 v P-41-15 FRANCISCO HARDWARE INC 108632 6/15/2012 3,172.18 v P-41-16 FRANCISCO HARDWARE INC 108736 5/25/2012 214.29 227.20 v P-41-17 FRANCISCO HARDWARE INC 108735 5/23/2012 18,511.50 991.29 v P-41-18 FRANCISCO HARDWARE INC 108734 5/22/2012 18,750.00 439.29 KARL GELSON INDUSTL SALES 315.00 1,028.57 v P-41-23 CORP 22134 6/8/2012 257.14 244.29 v P-41-24 KINGS SAFE1YNET INC 15515 6/13/2012 1,611.43 895.52 v P-41-27 MABUHAY VINYL CORP 500001748 5/4/2012 557.14 v P-41-28 RAPIDE AUTO SERVICE CENTER ST3770/PT14132 5/30/2012 953.57 v P-41-29 RAQUE TRADING & SERVICES 0211 6/20/2012 3,053.60 v P-41-30 ROSEPRIME ENTERPRISE 69815 6/19/2012 294.00 v P-41-32 WYLER ENTERPRISES INC 57209 6/14/2012 277.20 235.71 v P-41-33 COLEl\IAC SAFETY CORP 3461 6/22/2012 2,179.28 192.86 v P-41-34 COLEMAC SAFETY CORP 3459 6/22/2012 396.43 1,767.86 v P-41-35 COLEMAC SAFETY CORP 3527 6/13/2012 1,227.86 1,087.71 v P-41-36 COLEMAC SAFETY CORP 3528 9/10/2012 3,580.73 v P-41-37 DAN DARYLL PHILS INC 66991 9/13/2012 1,982.14 v P-41-38 DAN DARYLL PHILS INC 66990 9/13/2012 407.16 FELPET TRADING & MATERIALS 1,236.32 v P-41-39 RECOVERY SERVICES 0153 9/20/2012 7,657.07 FELPET TRADING & 1\L'\TERIALS 4,367.73 v P-41-40 RECOVERY SERVICES 0151 9/5/2012 837.77 FELPET TRADING & MATERIALS 314,173.57 v P-41-41 RECOVERY SERVICES 0155 9/20/2012 6,360.00 12,732.00 FELPET TRADING & l\IATERIALS 9,294.00 3,570.00 v P-41-42 RECOVERY SERVICES 0154 9/20/2012 9,321.48 7,260.00 v P-41-43 FIRETRON SAFETY SYSTEM 4797 8/1/2012 48,537.48 v P-41-44 FIRETRON SAFETY SYSTEM 5203 9/17/2012 8,460.00 v P-41-45 FIRETRON SAFETY SYSTEM 5204 9/17/2012 v P-41-46 FIRETRON SAFETY SYSTEM 4798 8/1/2012 v P-41-47 FRANCISCO HARDWARE INC 108839 9/18/2012 v P-41-49 RAPIDE AUTO SERVICE CENTER ST3922/PT15705 7/17/2012 v P-41-50 RAPIDE AUTO SERVICE CENTER ST3930/PT15707 7/20/2012 KARL GELSON INDUSTL SALES v P-41-57 CORP 23068 9/8/2012 KARL GELSON INDUSTL SALES v P-41-58 CORP 23267 9/19/2012 KARL GELSON INDUSTL SALES v P-41-59 CORP 23146 9/19/2012 KARL GELSON INDUSTL SALES v P-41-60 CORP 22857 8/18/2012 KARL GELSON INDUSTL SALES v P-41-61 CORP 22842 8/6/2012 KARL GELSON INDUSTL SALES v P-41-62 CORP 23340 9/28/2012 PHILIPPINE ENVIRONMENT & TECHNOLOGICAL SYSTEMS AND v P-41-63 SERVICES INC 8681 9/26/2012 Subtotal Amount ofpurchase ofservice is PI,OOO or more but petitioner's address not indicated in VAT OR T P-39-019 NF RODRIGUEZ JR LAW OFFICES 0589 6/29/2012 T P-39-310 NF RODRIGUEZ JR LAW OFFICES 0601 8/30/2012 T P-39-314 NF RODRIGUEZ JR LAW OFFICES 0595 7/20/2012 T P-39-580 NF RODRIGUEZ JR LAW OFFICES 0617 11/9/2012 w P-42-068 NF RODRIGUEZ JR LAW OFFICES 631 12/21/2012 w P-42-069 NF RODRIGUEZ JR LAW OFFICES 632 12/28/2012 Subtotal Amount ofpurchase ofservice is PI,OOO or more but petitioner's TIN and address not indicated in VAT OR T P-39-313 NF RODRIGUEZ JR LAW OFFICES 0609 9/28/2012

DECISION CTA Case No. 8859 TIMBER PROTECTION AND T P-39-373 l'vf.AINTENANCE SERVICES INC 84541 9/7/2012 3,016.69 TIMBER PROTECTION AND T P-39-375 MAINTENANCE SERVICES INC 84540 9/7/2012 4,178.57 TIMBER PROTECTION AND T P-39-631 MAINTENANCE SERVICES INC 85792 12/17/2012 2,201.08 TIMBER PROTECTION AND T P-39-633 MAINTENANCE SERVICES INC 85481 11/23/2012 815.61 Subtotal 18,671.95 Amount ofpurchase ofservice is P1,000 or more butpetitioner's TIN not indicated in VAT OR T P-39-204 INSULAR HEALTH CARE INC 182433 7/23/2012 223.24 T P-39-205 INSULAR HEALTH CARE INC 182968 8/17/2012 175.69 T P-39-337 SILVERSOCKET ENTERPRISES 0001 8/16/2012 12,044.20 T P-39-426 ASPRAC AGRICULUTURAL CORP 31433 12/21/2012 4,016.84 Subtotal 16,459.97 Importation ofnon-capitalgoods supported with /BIRD but dated outside period ofclaim and no proofof VATpayment u P-40-12 to 13 CAPARGE CEJ\ffiNT SDN BHD -BT WELL 4/12/2012 489,620.00 u P-40-14 to 15 LAFARGE CEJ\ffiNT SDN BHD BJUI2042001 4/20/2012 490,041.00 Subtotal 979,661.00 Importation ofnon-capitalgoods supported with /BIRD but no proofof VATpayment u P-40-01 to 03 BAKER HUGHES 122301B02V 6/5/2012 102,848.00 BAKER HUGHES DRILLING u P-40-04 to OS FLUIDS BJUI12062101 6/21/2012 256,141.00 u BAKER HUGHES DRILLING P-40-06 to 08 FLUIDS 122401B04D 6/14/2012 212,412.00 u BJ SERVICES COMPANY P-40-09 to 11 (SINGAPORE) PTE LTD 122101B029 5/21/2012 7,420.00 297,034.01 u P-40-16 to 18 PT BAKER HUGHES INDONESIA 122101B01F 5/25/2012 u BAKER HUGHES DRILLING P-40-19 to 21 FLUIDS 122901B09H 7/20/2012 307,287.00 u BAKER HUGHES DRILLING P-40-22 to 24 FLUIDS 123101B04Y 8/6/2012 216,818.00 u BAKER HUGHES OILFIELD P-40-25 to 27 OPERATIONS INC 122901B086 7/26/2012 13,917.00 123101B04V 8/3/2012 224,560.00 u P-40-28 to 30 BAKER PETROLITE u BJ SERVICE INTERNATIONAL P-40-31 to 34 (THAILAND) LTD BJUI2083003 8/29/2012 7,408.00 u BJ SERVICES COMPANY P-40-35 to 37 (SINGAPORE) PTE LTD 123401B078 8/28/2012 121,058.00 u BJ SERVICES COl'vfPANY P-40-38 to 40 (SINGAPORE) PTE LTD 122601B078 7/2/2012 64,219.00 56,815.00 u P-40-41 to 43 NATIONAL OILWELL PTE LTD 122901B09J 7/20/2012 BAKER HUGHES OILFIELD U,KK P-40-44 to 46 OPERATIONS INC 125001B073 12/14/2012 23,242.00 BAKER HUGHES OILFIELD U,KK P-40-47 to 49 OPERATIONS INC 124801B08G 12/5/2012 9,559.00 BAKER HUGHES DRILLING U,KK P-40-50 to 52 FLUIDS 124401B01Q 10/30/2012 2,195.00 U,KK BAKER HUGHES OILFIELD 124301B04L 10/24/2012 23,818.00 P-40-53 to 55 OPERATIONS INC BAKER HUGHES OILFIELD U,KK P-40-56 to 58 OPERATIONS INC 124201B03K 10/17/2012 68,498.00 BJ SERVICES COMPANY U,KK P-40-59 to 61 (SINGAPORE) PTE LTD 124801B06Q 11/29/2012 88,853.00 u BJ SERVICES COMPANY P-40-62 to 64 (SINGAPORE) PTE LTD 124001B09H 10/8/2012 3,263.69 u BJ SERVICES COMPANY P-40-65 to 67 (SINGAPORE) PTE LTD 124001B07N 10/5/2012 47,946.96 BJ SERVICES COMPANY U,KK P-40-68 to 70 (SINGAPORE) PTE LTD SGO 125001B041 12/12/2012 2,720.00 BJ SERVICES COl'vfPANY U,KK P-40-71 to 73 (SINGAPORE) PTE LTD SGO 124801B078 11/29/2012 157,826.00

DECISION CTA Case No. 8859 U,KK BJ SERVICES COMPANY 124501BOAX 11/12/2012 76,756.00 P-40-74 to 76 (SINGAPORE) P1E LTD SGO 103,300.00 144,090.00 U,KK P-40-77 to 79 BJ SERVICES COMPANY 124401B08A 11/2/2012 18,130.00 P-40-80 to 82 (SINGAPORE) P1E LTD SGO BJ0002 12/4/2012 408,952.00 u P-40-83 to 85 QASF COMPANY LTD 10/30/2012 201,998.00 SAGA-PCE P1E LTD 124401B04G U,KK 6,105.00 96,629.00 X,KK P-43-01 to 02 BJ SERVICES COMPANY BKOOO 6/22/2012 1,277,878.00 X P-43-03 to OS (SINGAPORE) P1E LTD 121901B065 5/10/2012 4,649,696.66 BAKER HUGHES OILFIELD OPERATIONS INC 975.00 570.54 BJ SERVICES COJ\1PANY 684.64 456.43 X P-43-06 to 08 (SINGAPORE) P1E LTD 121701BODO 5/2/2012 996.43 OOSBJ 6/25/2012 1,653.21 BAKER HUGHES DRILLING 152.14 1,521.43 X P-43-09 to 10 FLUIDS 393.75 1,312.50 BJ SERVICES COMPANY 803.57 482.14 X P-43-11 to 12 (SINGAPORE) P1E LTD 002 5/14/2012 1,151.79 1,193.57 Subtotal 1,822.50 1,561.61 Purchase ofgoods supported by VAT invoice butpetitioner's TIN is wrong 15,731.25 264.96 INTEGRA1ED COMPU1ER SYS. 932.14 s P-38-013 INC. 310138844 5/28/2012 750.00 2,871.43 INTEGRA1ED COMPUTER SYS. 1,313.26 s P-38-014 INC. 310139896 6/14/2012 INTEGRA1ED COMPUTER SYS. s P-38-015 INC. 310138410 5/21/2012 INTEGRA1ED COMPU1ER SYS. s P-38-016 INC. 310138613 5/23/2012 IN1EGRA1ED COMPUTER SYS. s P-38-074 INC. 310141381 7/9/2012 INTEGRA1ED COMPUTER SYS. s P-38-075 INC. 210059339 8/16/2012 INTEGRATED COMPUTER SYS. s P-38-076 INC. 310144246 8/23/2012 INTEGRATED COMPU1ER SYS. s P-38-161 INC. 310148616 10/31/2012 IN1EGRA1ED COMPUTER SYS. s P-38-162 INC. 310149034 11/9/2012 INTEGRA1ED COMPUTER SYS. s P-38-163 INC. 310149849 11/22/2012 INTEGRA1ED COJ\1PUTER SYS. v P-41-52 INC. 310145970 9/19/2012 INTEGRA1ED COMPUTER SYS. v P-41-53 INC. 310145968 9/19/2012 INTEGRA1ED COMPU1ER SYS. v P-41-54 INC. 310145969 9/19/2012 INTEGRA1ED COMPU1ER SYS. v P-41-55 INC. 310145787 9/17/2012 INTEGRA1ED COMPUTER SYS. v P-41-56 INC. 210060249 9/23/2012 s P-38-093 WYLER ENTERPRISES INC 58004 7/25/2012 Subtotal Purchase ofservice supported by VAT Exempt OR T P-39-231 KUEHNE AND NAGEL INC 185436 9/28/2012 Purchase ofservice supported bv VAT invoice but no VAT OR FORMS IN1ERNATIONALENT v P-41-11 CORP 18869 6/19/2012 Purchase ofservice supported by VAT OR but dated outside period ofclaim T P-39-017 NANDZ ENTERPRISES 0240 4/11/2012 Purchase ofservice supported by VAT OR but is undated and VAT amount not separately indicated T P-39-033 ARAHR SERVICES MKTG INC 2355 7/19/2012 Purchase ofservice supported by VAT OR but not underpetitioner's name T P-39-035 ASPRAC AGRICULUTURAL CORP 31147 9/21/2012 Purchase ofservice supported by VAT OR butpetitioner's TIN is wrong

DECISION CTA Case No. 8859 SODEXO MOTIVATION T P-39-603 SOLUTIONS PHILS INC 119757 10/11/2012 168.00 126198 12/20/2012 1,334.40 SODEXO MOTIVATION 1,502.40 Subtotal T P-39-604 SOLUTIONS PHILS INC 129,600.00 6/29/2012 1,291.06 Purchase ofservice supported bv VAT OR but VAT amount not separately indicated 6/22/2012 8,729.88 6/22/2012 12,051.29 T P-39-001 DENROW TRUCKING 1797 6/22/2012 438.00 6/29/2012 5,748.23 DHL GLOBAL FORWARDING 6/1/2012 2,866.07 T P-39-003 (PHILS) INC 81813 8/24/2012 14,400.00 9/7/2012 DHL GLOBAL FORWARDING 8/17/2012 6,375.86 8/31/2012 18,683.96 T P-39-004 (PHILS) INC 81814 9/14/2012 3,300.00 9/17/2012 9,409.42 DHL GLOBAL FORWARDING 9/17/2012 8/3/2012 2,686.62 T P-39-008 (PHILS) INC 81812 9/28/2012 93,600.00 9/14/2012 4,996.65 JOEL CHAVEZ EQUIPMENT 9/7/2012 8/31/2012 7,179.37 T P-39-015 RENTALS 4454 8/24/2012 10,044.57 8/15/2012 TOTAL MATERIAL HANDLING 8/10/2012 3,026.97 8/1/2012 3,190.78 T P-39-020 PRODUCTS INC 0051 7/24/2012 7/13/2012 451.24 APPLIED CALIBRATION & 7/12/2012 1,010.40 8/29/2012 4,003.49 INSTRUMENTATION SYSTEM 9/21/2012 2,453.71 7/27/2012 2,209.20 T P-39-031 INC 1290 9/21/2012 4,032.68 9/21/2012 7,997.69 T P-39-039 BERKMAN SYSTEMS INC 8039 9/21/2012 7,260.76 14,003.50 CONSTANTINO GUADALQUIVER 6,238.99 2,056.32 T P-39-041 &CO 8258 2,089.32 CONSTANTINO GUADALQUIVER T P-39-043 &CO 8270 CONSTANTINO GUADALQUIVER T P-39-046 &CO 8296 D MIDLAND PACIFIC HOTEL T P-39-048 BATANGAS CORP 1099 D MIDLAND PACIFIC HOTEL T P-39-051 BATANGAS CORP 1100 T P-39-053 DENROW TRUCKING 1802 DHL GLOBAL FORWARDING T P-39-055 (PHILS) INC 85704 DHL GLOBAL FORWARDING T P-39-059 ~HILS) INC 84809 DHL GLOBAL FORWARDING T P-39-064 (PHILS) INC 83844 DHL GLOBAL FORWARDING T P-39-069 (PHILS) INC 83827 DHL GLOBAL FORWARDING T P-39-074 (PHILS) INC 83819 DHL GLOBAL FORWARDING T P-39-081 (PHILS) INC 82800 DHL GLOBAL FORWARDING T P-39-084 (PHILS) INC 82797 DHL GLOBAL FORWARDING T P-39-086 (PHILS) INC 82782 DHL GLOBAL FORWARDING T P-39-089 .(PHILS) INC 82765 DHL GLOBAL FORWARDING T P-39-093 (PHILS) INC 81844 DHL GLOBAL FORWARDING T P-39-095 (PHILS) INC 81845 T P-39-098 DOWJONES INC 5288 T P-39-110 DOW]ONES INC 5363 T P-39-123 DOWJONES INC 5199 T P-39-150 DOWJONES INC 5632 FELPET TRADING & MATERIALS T P-39-162 RECOVERY SERVICES 0014 FELPET TRADING & MATERIALS T P-39-164 RECOVERY SERVICES 0015

DECISION CTA Case No. 8859 Page 26 of33 FELPET 1RADING & l\1ATERIALS T P-39-166 RECOVERY SERVICES 0013 9/27/2012 60,857.14 FELPET TRADING & l\1ATERIALS 66,192.34 T P-39-169 RECOVERY SERVICES 0012 9/7/2012 46,385.28 FELPET 1RADING & l\1ATERIALS 73,297.18 T P-39-174 RECOVERY SERVICES 0010 8/24/2012 60,857.14 FELPET 1RADING & l\1ATERIALS 49,619.09 T P-39-177 RECOVERY SERVICES 0009 8/2/2012 34,800.00 FELPET 1RADING & l\1ATERIALS 2,880.00 375.00 T P-39-183 RECOVERY SERVICES 0008 8/2/2012 1,125.00 FELPET 1RADING & l\1ATERIALS 750.00 T P-39-186 RECOVERY SERVICES 0007 7/13/2012 18,521.46 FELPET 1RADING & l\1ATERIALS 1,200.00 T P-39-191 RECOVERY SERVICES 0006 7/6/2012 32,160.00 FELPET TRADING & l\1ATERIALS 26,640.00 T P-39-193 RECOVERY SERVICES 0011 8/24/2012 24,336.00 T P-39-195 HONDA PHILIPPINES INC 90136540V 9/28/2012 31,872.00 T P-39-197 HONDA PHILIPPINES INC 90134830V 8/31/2012 384.00 T P-39-199 HONDA PHILIPPINES INC 90133679V 8/10/2012 408.00 ICO ASIA PACIFIC PHILIPPINES 47,400.00 T P-39-201 INC 0513 9/21/2012 60,000.00 JOEL CHAVEZ EQUIPMENT 840.00 T P-39-206 RENTALS 4506 8/3/2012 5,280.00 38,765.05 JOEL CHAVEZ EQUIPMENT 41,405.05 T P-39-208 RENTALS 4505 8/3/2012 1,458.48 6,416.52 JOEL CHAVEZ EQUIPMENT 1,080.00 2,063.50 T P-39-211 RENTALS 4523 8/17/2012 7,915.40 5,364.46 JOEL CHAVEZ EQUIPMENT 2,099.22 189,245.21 T P-39-213 RENTALS 4522 8/17/2012 3,618.30 4,681.80 JOEL CHAVEZ EQUIPMENT 3,285.67 17,914.08 T P-39-216 RENTALS 4543 8/29/2012 18,116.23 16,322.93 JOEL CHAVEZ EQUIPMENT 5,303.57 T P-39-219 RENTALS 4586 9/15/2012 960.00 JOEL CHAVEZ EQUIPMENT 2,089.28 T P-39-221 RENTALS 4543 8/29/2012 JUAN REYES SUMPAYCO T P-39-223 MOVERS 0187 7/27/2012 JUAN REYES SUMPAYCO T P-39-225 MOVERS 0195 8/24/2012 JUAN REYES SUMPAYCO T P-39-227 MOVERS 0190 8/10/2012 JUAN REYES SUMPAYCO T P-39-229 MOVERS 0251 9/14/2012 T P-39-233 KUEHNE AND NAGEL INC 151690 9/17/2012 T P-39-238 KUEHNE AND NAGEL INC 151574 9/7/2012 T P-39-242 KUEHNE AND NAGEL INC 154951 8/31/2012 T P-39-244 KUEHNE AND NAGEL INC 151572 8/24/2012 T P-39-246 KUEHNE AND NAGEL INC 154951 8/31/2012 T P-39-248 KUEHNE AND NAGEL INC 151792 8/17/2012 T P-39-251 KUEHNE AND NAGEL INC 149150 8/10/2012 T P-39-258 KUEHNE AND NAGEL INC 151791 8/3/2012 T P-39-262 KUEHNE AND NAGEL INC 151681 7/27/2012 T P-39-265 LTC MULTI-SERVICES INC 2543 9/28/2012 T P-39-271 LTC MULTI-SERVICES INC 2539 9/21/2012 T P-39-273 LTC MULTI-SERVICES INC 2529 9/7/2012 T P-39-276 LTC MULTI-SERVICES INC 2444 8/31/2012 T P-39-278 LTC MULTI-SERVICES INC 2437 8/10/2012 T P-39-280 LTC MULTI-SERVICES INC 2433 7/27/2012 T P-39-295 LTC MULTI-SERVICES INC 2432 7/27/2012 MHON TRADING AND T P-39-302 RADIATOR REPAIR SHOP 8859 9/14/2012 T P-39-304 MMG CORPORATION 10269 9/7/2012 T P-39-306 NANDZ ENTERPRISES 0259 8/17/2012

DECISION CTA Case No. 8859 PNOC EXPLORATION T P-39-315 CORPORATION 89518 9/14/2012 399.51 89556 8/17/2012 4,710.40 PNOC EXPLORATION 89518 9/14/2012 3,720.00 83996 7/27/2012 21,057.08 T P-39-317 CORPORATION 219466 8/10/2012 218838 7/13/2012 83.55 PNOC EXPLORATION 9/7/2012 165.17 119 9/14/2012 4,575.00 T P-39-321 CORPORATION 127096 9/7/2012 3,561.60 127089 7/27/2012 874.80 T P-39-323 RICHMONDE HOTEL ORTIGAS 3778 9/14/2012 3,380.31 0442 8/17/2012 803.57 RAF INTERNATIONAL 2581 8/17/2012 18,214.29 17922 8/10/2012 785.46 T P-39-327 FORWARDING 17900 9/14/2012 25,740.60 2080 9/4/2012 23,370.26 RAF INTERNATIONAL 2073 8/3/2012 19,714.29 2065 8/3/2012 13,800.00 T P-39-329 FORWARDING 2066 9/21/2012 1,317.86 0069 9/14/2012 1,071.43 T P-39-331 RAQUE TRADING & SERVICES 9/14/2012 857.14 0067 8/3/2012 1,258.93 RICHVILLE HOTEL 0066 8/24/2012 11,035.71 0068 8/22/2012 3,642.87 T P-39-333 MANAGEMENT INC 0065 8/8/2012 964.29 0064 8/8/2012 2,512.51 RICHVILLE HOTEL 0061 8/31/2012 8,035.71 0062 8/31/2012 2,571.43 T P-39-335 MANAGEMENT INC 2058 8/31/2012 28,500.01 2057 12/28/2012 7,328.57 T P-39-339 STALWART REALTY INC 2059 11/12/2012 8,039.46 0370 11/16/2012 5,678.77 STARCLEAN JANITORIAL 1421 12/21/2012 6,546.41 1422 11/12/2012 4,340.84 T P-39-349 SERVICES 1539 2,861.34 1421 STEELMASTER CUSTOMS T P-39-351 BROKERAGE INC T P-39-353 SUPPLY OILFIELD SERVICES INC T P-39-357 SUPPLY OILFIELD SERVICES INC TECHNOLOGY EXPORTS SVCS T P-39-365 CORP TECHNOLOGY EXPORTS SVCS T P-39-367 CORP TECHNOLOGY EXPORTS SVCS T P-39-369 CORP TECHNOLOGY EXPORTS SVCS T P-39-371 CORP TOTAL MATERIAL HANDLING T P-39-377 PRODUCTS INC TOTAL MATERIAL HANDLING T P-39-380 PRODUCTS INC TOTAL MATERIAL HANDLING T P-39-383 PRODUCTS INC TOTAL MATERIAL HANDLING T P-39-387 PRODUCTS INC TOTAL MATERIAL HANDLING T P-39-392 PRODUCTS INC TOTAL MATERIAL HANDLING T P-39-399 PRODUCTS INC TOTAL MATERIAL HANDLING T P-39-403 PRODUCTS INC TOTAL MATERIAL HANDLING T P-39-411 PRODUCTS INC VILMAL PICK-UP TRUCK T P-39-413 RENTAL VILl'vfAL PICK-UP TRUCK T P-39-415 RENTAL VILMAL PICK-UP TRUCK T P-39-419 RENTAL T P-39-421 ACE TUBULAR SERVICES LTD D MIDLAND PACIFIC HOTEL T P-39-430 BATANGAS CORP D MIDLAND PACIFIC HOTEL T P-39-432 BATANGAS CORP D MIDLAND PACIFIC HOTEL T P-39-434 BATANGAS CORP D MIDLAND PACIFIC HOTEL T P-39-436 BATANGAS CORP

DECISION CTA Case No. 8859 Page 28 of33 T P-39-438 D MIDLAND PACIFIC HOTEL 1422 11/16/2012 3,935.25 BATANGAS CORP T P-39-440 D MIDLAND PACIFIC HOTEL 1539 12/21/2012 1,957.95 BATANGAS CORP T P-39-442 D MIDLAND PACIFIC HOTEL 1291 10/22/2012 6,863.99 T P-39-444 BATANGAS CORP 1823 12/7/2012 90,000.00 DENROW TRUCKING T,LL P-39-446 DHL GLOBAL FORWARDING 88457 12/20/2012 2,534.43 (PHILS) INC T P-39-450 DHL GLOBAL FORWARDING 88458 12/20/2012 1,261.58 (PHILS) INC T P-39-452 DHL GLOBAL FORWARDING 88459 12/20/2012 260.53 (PHILS) INC T P-39-454 DHL GLOBAL FORWARDING 88460 12/20/2012 2,085.90 (PHILS) INC T P-39-458 DHL GLOBAL FORWARDING 86716 11/9/2012 4,147.40 T P-39-465 (PHILS) INC 5448 10/19/2012 6,034.74 T P-39-476 DOWJONES INC 5460 11/9/2012 93,666.24 DOWJONES INC T P-39-481 FELPET TRADING & MATERIALS 0019 10/30/2012 51,428.57 RECOVERY SERVICES T P-39-483 FELPET TRADING & MATERIALS 0020 11/14/2012 9,428.57 RECOVERY SERVICES T P-39-485 FELPET TRADING & MATERIALS 0017 10/9/2012 1,071.40 RECOVERY SERVICES T P-39-487 FELPET TRADING & MATERIALS 0025 12/18/2012 964.29 RECOVERY SERVICES T P-39-489 FELPET TRADING & J\fATERIALS 0024 12/7/2012 1,928.57 RECOVERY SERVICES T P-39-491 FELPET TRADING & MATERIALS 0022 12/7/2012 21,924.00 RECOVERY SERVICES T P-39-493 FIRST PHIL SKILLS & 3154 10/5/2012 11,180.57 T P-39-495 EQUIPMENT TESTING CORP 2162 11/16/2012 428.57 T P-39-497 ]HAN LODELYN TRUCKING 1740 12/21/2012 428.57 ]HAN LODELYN TRUCKING T P-39-499 JOEL CHAVEZ EQUIPMENT 4709 12/7/2012 31,968.00 RENTALS T P-39-502 JOEL CHAVEZ EQUIPMENT 4710 12/7/2012 24,288.00 RENTALS T P-39-505 JOEL CHAVEZ EQUIPMENT 4676 11/16/2012 24,336.00 RENTALS T P-39-508 JUAN REYES SUMPAYCO 0283 12/28/2012 109,800.00 MOVERS T P-39-511 JUAN REYES SUMPAYCO 0279 12/20/2012 136,800.00 MOVERS T P-39-515 JUAN REYES SUMPAYCO 0262 10/19/2012 960.00 T P-39-517 MOVERS 156951 12/7/2012 5,880.00 T P-39-520 KUEHNE AND NAGEL INC 151595 12/3/2012 1,440.00 T P-39-522 KUEHNE AND NAGEL INC 154513 11/16/2012 3,446.04 T P-39-528 KUEHNE AND NAGEL INC 155213 10/12/2012 1,002.48 T P-39-532 KUEHNE AND NAGEL INC 2610 10/29/2012 50,028.33 T P-39-539 LTC MULTI-SERVICES INC 11/9/2012 41,204.16 T P-39-543 LTC MULTI-SERVICES INC 2560 12/3/2012 49,763.87 T P-39-550 LTC MULTI-SERVICES INC 2634 12/17/2012 51,956.51 LTC MULTI-SERVICES INC 2645 T P-39-581 PNOC EXPLORATION 12/20/2012 4,560.00 CORPORATION 49270 T P-39-583 PNOC EXPLORATION 12/28/2012 782.40 CORPORATION 49271 T,LL P-39-585 PNOC EXPLORATION 12/12/2012 8,344.52 CORPORATION 49258 T P-39-589 PNOC EXPLORATION 11/9/2012 8,452.07 CORPORATION 89411

DECISION CTA Case No. 8859 Page 29 of33 T P-39-593 RAQUE TRADING & SERVICES 0154 12/28/2012 10,885.44 11/9/2012 10,276.06 T P-39-597 RAQUE TRADING & SERVICES 0132 10/29/2012 1,105,550.82 12/7/2012 SCIENTIFIC DRILLING 12/4/2012 803.57 12/4/2012 258.00 T P-39-601 INTERNATIONAL INC 1111 11/16/2012 560.10 12/19/2012 1,672.68 STARCLEAN JANITORIAL 10/29/2012 4,114.29 12/19/2012 23,370.30 T P-39-605 SERVICES 0447 12/19/2012 125,633.70 12/20/2012 36,223.97 T P-39-607 SUPPLY OILFIELD SERVICES INC 18168 12/20/2012 369.94 11/9/2012 3,096.43 T P-39-609 SUPPLY OILFIELD SERVICES INC 18169 12/28/2012 30,259.17 11/23/2012 642.86 T P-39-612 SUPPLY OILFIELD SERVICES INC 18134 10/30/2012 642.86 10/22/2012 2,250.01 TECHNOLOGY EXPORTS 12/7/2012 16,714.28 11/9/2012 15,829.54 T P-39-614 SERVICES CORP 2115 7/13/212 12,214.29 7/16/2012 4,524.00 TECHNOLOGY EXPORTS 7/13/2012 4,994.25 7/13/2012 7,240.94 T P-39-616 SERVICES CORP 2103 7/13/2012 4,822.25 8/17/2012 10,714.29 TECHNOLOGY EXPORTS 8/3/2012 553.86 7/20/2012 2,344.41 T P-39-618 SERVICES CORP 2116 7/6/2012 321.43 10/3/2012 1,071.43 TECHNOLOGY EXPORTS 10/30/2012 13,164.58 11/24/2012 60,857.14 T P-39-621 SERVICES CORP 2114 10/2/2012 267.86 10/19/2012 86,400.00 TELNET INFORMATION SYSTEM 10/4/2012 24,336.00 10/19/2012 4,800.00 T P-39-624 SERVICES 0046 36,003.95 TELNET INFORMATION SYSTEM T P-39-626 SERVICES 0047 T P-39-628 RICHMOND� HOTEL ORTIGAS 88940 TOTAL MATERIAL HANDLING T P-39-635 PRODUCTS INC 0080 TOTAL MATERIAL HANDLING T P-39-638 PRODUCTS INC 0074 TOTAL MATERIAL HANDLING T P-39-641 PRODUCTS INC 0071 TOTAL MATERIAL HANDLING T P-39-646 PRODUCTS INC 0070 VILl'vfAL PICK-UP TRUCK T P-39-651 RENTAL 2152 VILMAL PICK-UP TRUCK T P-39-655 RENTAL 2086 CONSTANTINO GUADALQUIVER w P-42-001 &CO 8153 D MIDLAND PACIFIC HOTEL w P-42-003 BATANGAS CORP 1009 PNOC EXPLORATION w P-42-008 CORPORATION 87425 PNOC EXPLORATION w P-42-013 CORPORATION 87424 STEELMASTER CUSTOMS w P-42-017 BROKERAGE INC 2572 w P-42-019 SUPPLY OILFIELD SERVICES INC 17921 SYCIP SALAZAR HERNANDEZ w P-42-021 GATMAITAN 5078761 TOTAL l'vfATERIAL HANDLING w P-42-026 PRODUCTS INC 0059 TOTAL MATERIAL HANDLING w P-42-028 PRODUCTS INC 0055 D MIDLAND PACIFIC HOTEL w P-42-031 BATANGAS CORP 1156 FELPET TRADING & MATERIALS w P-42-034 RECOVERY SERVICES 0018 w P-42-037 JHAN LODELYN TRUCKING 2174 JOEL CHAVEZ EQUIPMENT w P-42-039 RENTALS 4612 JOEL CHAVEZ EQUIPMENT w P-42-045 RENTALS 4631 JUAN REYES SUMPAYCO w P-42-048 MOVERS 254 w P-42-050 LTC MULTI-SERVICES INC 2558

DECISION CTA Case No. 8859 Page 30 of33 w P-42-055 LTC MULTI-SERVICES INC 2603 10/12/2012 9,431.67 10/5/2012 141,897.80 w P-42-060 LTC J\fULTI-SERVICES INC 2545 10/12/2012 10/12/2012 4,278.00 PNOC EXPLORATION 10/12/2012 4,064.86 10/5/2012 1,285.71 w P-42-070 CORPORATION 89548 10/12/2012 10/29/2012 545.46 PNOC EXPLORATION 10/5/2012 62,816.85 10/5/2012 62,816.85 w P-42-072 CORPORATION 89547 11/9/2012 2,219.14 10/22/2012 23,370.30 STEELMASTER CUSTOMS 11/9/2012 11/9/2012 449.87 w P-42-075 BROKERAGE INC 2611 11/9/2012 964.29 11/9/2012 5,758.75 w P-42-077 SUPPLY OILFIELD SERVICES INC 18028 1,767.97 Subtotal 16,692.86 TECHNOLOGY EXPORTS SVCS 10,823.49 10/29/2012 4,526, 741.65 w P-42-080 CORP 2091 4/23/2012 Subtotal 5,047.90 TECHNOLOGY EXPORTS SVCS 50,762.00 10/17/2012 55,809.90 w P-42-082 CORP 2102 TOTAL 671.85 TECHNOLOGY EXPORTS SVCS 10,669,111.15 w P-42-084 CORP 2086 TECHNOLOGY EXPORTS SVCS w P-42-086 CORP 2087 w P-42-088 RICHMONDE HOTEL ORTIGAS 88940 TOTAL MATERIAL HANDLING w P-42-090 PRODUCTS INC 0070 VILMAL PICK-UP TRUCK w P-42-094 RENTAL 2090 VILMAL PICK-UP TRUCK w P-42-096 RENTAL 2087 VILMAL PICK-UP TRUCK w P-42-098 RENTAL 2088 VILMAL PICK-UP TRUCK w P-42-101 RENTAL 2089 SupportinJl documents not found in the records w LTC MULTI-SERVICES INC 2610 121601B07P BJ SERVICES COMPANY KK (SINGAPORE) PTE LTD VAT amount was altered but countersignature is different nom VAT invoice preparer HRI INDUSTRIAL MILL SUPPLY s P-38-159 CORP 26525 In sum, out of the P11 ,959,466.58 total input VAT per petitioner's Schedule of Purchases, only the amount of P275,518.10 represents petitioner's valid input VAT, computed as follows: Input VAT per VAT Returns P11,989,902.83 Less: Disallowances p 30,436.25 11,714,384.73 Difference between VAT returns and Schedule of 1,014,837.33 p 275,518.10 Purchases P10,669,111.15 Per Independent CPA Report Per the Court's further verification Valid Input VAT

DECISION CTA Case No. 8859 Fourth and Fifth Requisites: Petitioner had no excess input VAT which may be attributable to zero- rated sales However, petitioner's properly substantiated input VAT of P275,518.10 is way lower when compared with petitioner's output VAT liability for the subject period of claim in the amount ofP3,976,944.37, detailed as follows: Period Covered Exhibit Output VAT 2nd Quarter 2012 P-3-4 p 7,758,772.41 Less: April2012 P-19 May to June 2012 5,859,791.65 3rd Quarter 2012 P-3-10 p 1,898,980.76 4th Quarter 2012 P-3-15 Total Output VAT per VAT Returns 1,298,525.53 Add: 12% VAT due on the P2,123,364.18 vatable 524,634.38 sales erroneously reported as zero-rated sales in p 3,722,140.67 the 3rd quarter (Exhibit '2)-16': Annex K) 254,803.70 Total Output VAT, as adjusted p 3,976,944.37 While petitioner's Quarterly VAT Return50 for the second quarter of2012 reflected the amount of P3,985,253.12 as "Input Tax Carried Over from Previous Period", still, petitioner failed to present VAT invoices or receipts to prove the existence of such amount. Hence, the input tax carry-over of P3,985,253.12 cannot be validly applied against petitioner's output tax pursuant to Section 11 O(A) in relation to Section 11 O(B) of the NIRC of 1997, as amended, which states: SEC. 110. Tax Credits.- A. Creditable Input Tax. - (1) Any input tax evidenced by a VAT invoice or official receipt issued in accordance with Section 113 hereof on the following transactions shall be creditable against the output tax: XXX XXX XXX so Exhibit "P-3-4", line 20A.

DECISION CTA Case No. 8859 Page 32 of33 (B) Excess Output or Input Tax.- If at the end of any taxable quarter the output tax exceeds the input tax, the excess shall be paid by the VAT-registered person. If the input tax exceeds the output tax, the excess shall be carried over to the succeeding quarter or quarters: xxx Considering that there is no excess input VAT which may be the subject of a claim for refund or tax credit certificate under Section 112(A) of the NIRC of 1997, as amended, the instant claim must be denied. Well-settled in this jurisdiction is the fact that actions for tax refund, as in this case, are in the nature of a claim for exemption and the law is construed in strictissimiJuris against the taxpayer. The pieces of evidence presented entitling a taxpayer to an exemption are also strictissimi scrutinized and must be duly proven. 51 WHEREFORE, premises considered, the instant Petition for Review is DENIED for lack of merit. SO ORDERED. 02.vr . ..llJ4_ .h ~ L__' MA. BELEN M. RINGPIS-LIBAN Assodate Justi,�e WE CONCUR: LOVELL (BAUTISTA 51 Kepco Philippines Corporation vs. Commissioner of Internal Revenue, G.R. No. 179961, January 31, 2011.

DECISION CTA Case No. 8859 ATTESTATION I attest that the conclusions in the above decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. LOVE4. BAUTISTA Assot�iate Justite Chairperson CERTIFICATION Pursuant to Section 13 of Article VIII of the Constitution, and the Division's Chairperson's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. Presiding Justice