cta_decision CTA Case No. 90229022 2018-03-26

NEW YORK BAY PHILIPPINES, INC. (now MASTERCARD TRANSACTIONS SERVICES (PHILIPPINES) INC.) v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY THIRD DIVISION NEW YORK BAY CTA CASE NO. 9022 Members: PHILIPPINES, INC., Petitioner, -versus- BAUTISTA, Chairperson FABON-VICTORINO, and RINGPIS-LIBAN, JJ. COMMISSIONER OF Promulgated: INTERNAL REVENUE, Respondent. ~M~~~~~~~----- x- - - - - - - - - - - - - - - - - - - - :-: - - - - ~-� ~0 _; ._,.,_ . - - - - - -X DECISION Fabon-Victorino, J.: This Petition for Review1 filed by New York Bay Philippines, Inc. on March 31, 2015, prays for the refund or issuance of a tax credit certificate (TCC) in the amount Thirty-One Million Two Hundred Thirty-Two Thousand Three Hundred Ninety-Nine Pesos and Fifty-Two Centavos (P31,232,399.52), representing its excess and unutilized input value-added tax (VAT) on purchases of goods and services attributable to its zero-rated sales for the year 2013. Petitioner New York Bay Philippines, Inc. is a domestic corporation with principal place of business at Unit 2102, 21st Floor Antel Global Corporate Center, Julia Vargas Avenue, Pasig City. 2 It is registered with the Securities and Exchange Commission (SEC), and is engaged in financial holding activities, specifically, as a remittance service provider, either through electronic bank transfers, door-to- 1 Docket, vol. 1, pp. 10-21. 2 Par. 1, Petition for Review, docket, vol. 1, pp. 10-11. I

DECISION CTA Case No. 9022 door, and other kinds of fund transfer. 3 Petitioner is a VAT registered taxpayer of Revenue District Office (RDO) No. 43A, Bureau of Internal Revenue (BIR) with Taxpayer Identification No. (TIN) 000-217-994-000, as indicated in its Certificate of Registration No. 3RC0000682520. 4 On the other hand, respondent is the Commissioner of Internal Revenue (CIR), who has the power to decide disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties imposed in relation thereto or other matters arising under the National Internal Revenue Code (NIRC), or other laws or portions thereof administered by the BIR. He holds office at 5th Floor, BIR National Office Building, Agham Road, Diliman, Quezon City. During the four quarters of calendar year (CY) 2013, petitioner allegedly rendered services in the Philippines to non-resident foreign corporations not engaged in business in the country, the consideration for which were paid in acceptable foreign currency and accounted for in accordance with the rules and regulations of Bangko Sentral ng Pilipinas (BSP). 5 Petitioner accumulated input VAT credits on its domestic purchases of goods and services attributable to its zero-rated sales of services for the four quarters of CY 2013 amounting to P31,232,399.52.6 Subsequently, petitioner filed an administrative claim for refund/ issuance of a tax credit certificate with the BIR RDO No. 43A, of its alleged excess and unutilized input VAT for the four quarters of CY 2013 in the total amount of P31,232,399. 52.7 3 Exhibit "P-1", docket, vol. 2, pp. 945-958, also Judicial Affidavit dated August 25, 2015, docket volume 1 p. 214. 4 Exhibit "P-2", docket, vol. 3, p. 959 . 5 Par. 5, Petition for Review, docket, vol. 1, p. 12. 6 Pars. 10-11, Petition for Review, docket, vol. 1, pp. 13-14. 7 Par. 3, Stipulation of Facts, Joint Stipulation of Facts and Issues (JSFI), docket, vol. 1, pp. 232-233.

DECISION CTA Case No. 9022 Due to respondent's inaction to the said administrative claim for refund,8 petitioner filed the instant Petition for Review before this Court on March 31, 2015. In his Answer9 filed on May 21, 2015, respondent registered its opposition to petitioner's judicial action for refund/TCC on account of failure to substantiate its claim and to comply with all the requisites for entitlement thereto under the NIRC of 1997, relevant regulations, and jurisprudence. On October 12, 2015, a Pre-Trial Order was issued terminating the Pre-Trial Conference10� Trial ensued during which petitioner presented as witnesses its Assistant Head of Accounting Ma. Victoria Cruz, and the Court-commissioned Independent Certified Public Accountant (ICPA) Madonna Mia 5. Dayego. Witness Ma. Victoria Cruz testified 11 that she oversees the entire accounting operations of petitioner, including tax compliance, filing of returns, and dealing with the BIR and external auditors, consultants and counsel of petitioner. She is also the custodian of petitioner's documents in relation to her functions. Petitioner is engaged in financial holding activities particularly providing remittance services. It is a VAT- registered taxpayer as of January 1, 1997 with TIN 000- 217-994-000. For the CY 2013, petitioner's sales consisting of local sales subjected to 12�/o VAT and zero-rated sales amounted to P409,451,230.96, for which petitioner paid output VAT on its VAT-able sales in the total amount of P8,055.22. 8 Par. 4, Stipulation of Facts, JSFI, docket, vol. 1, p. 233. 9 Docket, vol. 1, pp. 72-75. 10 Docket, vol. 1, pp. 246-253. 11 See Exhibit P-19, Judicial Affidavit dated August 25, 2015, docket volume 1 pp. 213-226; no cross examination, see TSN dated December 1, 2015 p. 22. /

DECISION CfA Case No. 9022 As a remittance service provider, which renders services to non-resident clients who are not engaged in business in the Philippines, petitioner incurred input VAT on its domestic purchases of goods and services for the CY 2013 in the amount of P31,232,399.52. Petitioner did not carry over and/or apply its excess VAT credits for the TY 2013 against any output VAT for the succeeding periods. In support thereof, the witness presented petitioner's VAT Returns filed and paid through the SIR's Electronic Filing and Payment System (EFPS) for which a Filing Reference Number was provided. On November 7, 2014, petitioner filed an administrative claim for refund of its excess and unutilized input VAT for the CY 2013 with the BIR ROO No. 43A, with a Sworn Certification of submission of complete documents to substantiate its claim. Respondent however failed to act on the said claim for refund prompting petitioner to elevate the matter to this Court on March 31, 2015. The Court-commissioned ICPA Madonna Mia S. Dayego declared 12 that she audited the supporting documents pertinent to petitioner's claim for refund of excess and unutilized input VAT on purchases of goods and services attributable to zero-rated sales for CY 2013. Per her ICPA Report submitted to the Court, petitioner's zero-rated sales for CY 2013 were properly reported in its quarterly VAT Returns and traceable in its General Ledger (GL) and Audited Financial Statements (AFS). Documents also revealed that the payments to petitioner for the zero-rated sales were remitted to its bank accounts which inward remittances were adequately supported by pertinent documents. Petitioner's VATable sales were also reported in its quarterly VAT Returns, GL, and AFS, and adequately 12 See Judicial Affidavit dated February 3, 2016, docket volume 2 pp. 867-886; no cross examination, see TSN dated February 9, 2016 p. 8. /

DECISION CfA Case No. 9022 supported by VAT ORs. This is also true with regard to petitioner's input taxes, including the input taxes on capital goods not exceeding P1M, and the input taxes on domestic purchases of services and goods other than capital goods. Finally, her audit showed that the total input taxes for CY 2013 were not applied against any output VAT liability for the same year. Thus, out of the P31,232,399.52 being claimed for refund by petitioner, the substantiated amount of P30,959,767.63 may be refunded as e�xcess unutilized input VAT on purchases of goods and services. Petitioner rested after all of its formally offered exhibits were admitted by the Court in the Resolution 13 dated May 2, 2016. On February 7, 2017, respondent's counsel manifested that he would no longer present any evidence for respondent. 14 The case was submitted for decision on April 3, 2017. 15 THE ISSUE The parties submitted the following issue for the Court's resolution: Whether petitioner is entitled to its claim for refund/TCC for the amount of P31,232,399.52, representing its excess and unutilized input VAT for the four quarters of CY 2013. 16 13 Docket, vol. 3, pp. 1043-1044. 14 Docket, vol. 3, p. 1065. 15 Docket, vol. 3, p. 1113. 16 Stipulated Issue for Resolution, JSFI, docket, vol. 1, p. 233.

DECISION CTA Case No. 9022 DISCUSSION/RULING Section 112(A) and (C) of the National Internal Revenue Code of 1997, as amended, pertinently provides: SEC. 112. Refunds or Tax Credits of Input Tax. - (A) Zero-Rated or Effectively Zero-Rated Sales. - Any VAT-registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax: Provided, however, That in the case of zero-rated sales under Section 106(A)(2)(a)(1), (2) and (b) and Section 108(8)(1) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and regulations of the 8angko Sentral ng Pilipinas (8SP): 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, finally, That for a person making sales that are zero-rated under Section 108(8)(6), the input taxes shall be allocated ratably between his zero-rated and non-zero- rated sales. XXX XXX XXX (C) Period within which Refund or Tax Credit of Input Taxes shall be Made. - In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for .creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application 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

DECISION CTA Case No. 9022 day-period, appeal the decision or the unacted claim with the Court of Tax Appeals." Thus, to be entitled to refund/TCC of input tax due or paid attributable to zero-rated or effectively zero-rated sales, the following requisites must be satisfied: 1. the taxpayer is VAT-registered; 2. the claim was filed within the prescriptive periods, both in the administrative and judicial levels; 3. the taxpayer is engaged in zero-rated or effectively zero-rated sales; 4. the input taxes were incurred or paid; 5. the input taxes claimed are attributable to zero-rated or effectively zero-rated sales; and 6. the input taxes have not been applied against any output VAT liability. Petitioner is a VAT- registered taxpayer. Petitioner's Certificate of Registration . No. 3RC0000682520 with Tax Identification No. 000-217-994- 000 sufficiently established that it is a duly registered VAT taxpayer17 � Petitioner's and administrative were judicial claims seasonably filed. The second requisite was likewise satisfied. Pursuant to Section 112(A) of the NIRC of 1997, as amended, petitioner had two (2) years to file a claim for refund/TCC of input VAT attributable to zero-rated or effectively zero-rated sales reckoned from the close of the taxable quarter when the relevant sales were made. Shown below are the dates 17 Docket, vol. 2, p. 959 /

DECISION CTA case No. 9022 of the last day of the two-year period for petitioner to file its administrative claim for the four taxable quarters of CY 2013: PERIOD COVERED LAST DAY OF THE TWO- YEAR PRESCRIPTIVE January to March 2013 (1st Quarter) PERIOD April to June 2013 (2nd Quarter) March 31, 2015 June 30 2015 July to September 2013 (3rd Quarter) September 30, 2015 October to December 2013 (4th Quarter) December 31_L 2015 Evidently, petitioner's administrative claim 18 was timely filed on November 7, 2014, or well within the two-year prescriptive period. As to the judicial claim, Section 112(C) of the NIRC of 1997, as amended, provides that the CIR has one hundred twenty (120) days from the date of submission of the complete documents in support of the application for refund/TCC within which to grant or deny the claim. In case of full or partial denial by the CIR, the taxpayer may file an appeal with this Court within thirty (30) days from receipt of the adverse decision of the CIR. However, if after the 120- day period the CIR fails to act on the application for refund/TCC, the taxpayer may assail such inaction on the part of the CIR to the Court within 30 days. Significant to the reckoning of the 120-day period is the declaration of the Supreme Court that the application for VAT refund/TCC must be accompanied by complete supporting documents with a statement under oath attesting to the completeness of said supporting documents pursuant to Revenue Memorandum Circular (RMC) No. 54-2014. The affidavit shall also state that these documents are sufficient to support the claim, and no other documents shall be accepted from the taxpayer in order for the CIR to render his decision. The requirement is explicitly mandated by the High Court as follows: 18 Exhibits "P-14" to "P-14-b", docket, vol. 2, pp. 984-988. I

DECISION CTA Case No. 9022 As it now stands, RMC 54-2014 dated June 11, 2014 mandates that: The application for VAT refund/tax credit must be accompanied by complete supporting documents as enumerated in Annex 'A' hereof. In addition, the taxpayer shall attach a statement under oath attesting to the completeness of the submitted documents (Annex B). The affidavit shall further state that the said documents are the only documents which the taxpayer will present to support the claim. If the taxpayer is a juridical person, there should be a sworn statement that the officer signing the affidavit (i.e., at the very least, the Chief Financial Officer) has been authorized by the Board of Directors of the company. Upon submission of the administrative claim and its supporting documents, the claim shall be processed and no other documents shall be accepted/required from the taxpayer in the course of its evaluation. A decision shall be rendered by the Commissioner based only on the documents submitted by the taxpayer. The application for tax refund/tax credit shall be denied where the taxpayer/claimant failed to submit the complete supporting documents. For this purpose, the concerned processing/investigating office shall prepare and issue the corresponding Denial Letter to the taxpayer/claimant. Thus, under the current rule, the reckoning of the 120-day period has been withdrawn from the taxpayer by RMC 54-2014, since it requires him at the time he files his claim to complete his supporting documents and attest that he will no longer submit any other document to prove his claim. Further, the taxpayer is barred from submitting additional documents after he has filed his administrative claim. 19 Since RMC No. 54-2014 took effect on June 11, 2014, the same applies to the instant case which administrative claim for refund was filed on November 7, 2014. 19 Pilipinas Total Gas, Inc. vs Commissioner of Internal Revenue, G.R. No. 207112, December 8, 2015.

DECISION CTA Case No. 9022 Thus, the 120-day period shall be reckoned from November 7, 2014 on which date petitioner was already obliged to submit complete supporting documents. The record shows that petitioner submitted supporting documents per the Checklist of Mandatory Requirements for Claims for VAT Credit/Refund labeled as Annex "A"20 upon the filing of its administrative claim on November 7, 2014 and executed a Sworn Certification21 attesting to the completeness of the submitted documents. Accordingly, respondent had 120 days from November 7, 2014, or until March 9, 201522 to decide on petitioner's claim. But as earlier stated, respondent failed to act on the claim within the allowable period of 120 days. Thus, petitioner had 30 days or until April 8, 2015, to appeal such inaction to the Court. Evidently, petitioner's judicial claim for refund/TCC was as well timely filed on March 31, 2015. Petitioner had zero-rated sales Regarding the third requisite, petitioner claims that it rendered services in the Philippines to Trans-Fast Remittance LLC and Trans-Fast International FZ-LLC, both non-resident foreign corporations not engaged in business in the Philippines. The consideration for the services rendered were paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP). In view thereof, the services rendered qualify as zero-rated sales under Section 108(8)(2) of the NIRC of 1997, as amended, which reads: SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties. - XXX XXX XXX 20 Docket, vol. 2, p. 987. 21 Exhibit "P-14-a", docket, vol. 2, p. 986. 22 March 7, 2015 being a Saturday. /

DECISION CTA Case No. 9022 (B) Transactions Subject to Zero Percent (0�/o) Rate. - The following services performed in the Philippines by VAT-registered persons shall be subject to zero percent (0�/o) rate: (1) Processing, manufacturing or repacking goods for other persons doing business outside the Philippines which goods are subsequently exported, where the services are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP); (2) Services other than those mentioned in the preceding paragraph rendered to a person engaged in business conducted outside the Philippines or to a nonresident person not engaged in business who is outside the Philippines when the services are performed, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP); In a number of cases, the Supreme Court held that for the supply of services to be VAT zero-rated under Section 108(B)(2) of the NIRC of 1997, as amended, the following requisites must be complied with: 1. the services must be other than processing, manufacturing or repacking of goods; 2. the payment for such services must be in acceptable foreign currency accounted for in accordance with the BSP rules and regulations; and 3. the recipient of such services is doing business outside the Philippines. 23 Again, it was established that petitioner is a remittance service provider conducted either by electronic bank transfers, door-to-door, and other kinds of fund transfer. These services are certainly not in the same category as "processing, manufacturing or repacking of goods". 23 Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc., G.R. No. 153205, January 22, 2007.

DECISION CTA case No. 9022 Further, petitioner was able to establish that its clients, Trans-Fast Remittance LLC and Trans-Fast International FZ- LLC, are non-resident foreign corporations doing business outside the Philippines through the following documents: 1. SEC Certificate of Non-registration of Company, certifying that Trans-Fast Remittance LLC is not registered as a corporation or partnership in the Philippines; 24 2. SEC Certificate of Non-registration of Company, certifying that Trans-Fast International FZ-LLC is not registered as a corporation or partnership in the Philippines; 25 3. Authenticated copy of Trans-Fast Remittance LLC's Articles of Incorporation, License to Transact Business issued by the State of New York, Certificate of Formation from Delaware, and State of Delaware Certificate of Amendment; 26 and 4. Authenticated copy of Trans-Fast International FZ-LLC's Amended Memorandum of Association and Articles of Association. 27 As to whether the payment for the services rendered by petitioner was in acceptable foreign currency duly accounted for in accordance with the BSP rules, Section 113(A)(2), (B)(1), (2)(c) and (3) of the NIRC of 1997, as amended, and as implemented by Sections 4.113-1(A)(2), (B)(1) and (2)(c) of Revenue Regulations (RR) No. 16-05, provide that a VAT taxpayer, like petitioner, shall for every lease of goods or properties and for every sale, barter or exchange of services, issue a VAT official receipt which must contain the following information: SEC. 113. Invoicing and Accounting Requirements for VAT-Registered Persons. - 24 Exhibit "P-15", docket, val. 2, p. 989. 25 Exhibit "P-16", docket, val. 2, p. 990. 26 Exhibit "P-17", docket, val. 2, pp. 991-1020. 27 Exhibit "P-18", docket, val. 2, pp. 1021-1037. /

DECISION CTA Case No. 9022 (A) Invoicing Requirements. - A VAT-registered person shall issue: XXX XXX XXX (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: (1) A statement that the seller is a VAT-registered person, followed by his Taxpayer's Identification Number (TIN); (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax: Provided, that: XXX XXX XXX (c) If the sale is subject to zero percent (0�/o) value- added tax, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; XXX XXX XXX (3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service;" (Emphasis supplied) SEC. 4.113-1. Invoicing Requirements. - (A) A VAT-registered person shall issue:- XXX XXX XXX (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. Only VAT-registered persons are required to print their TIN followed by the word 'VAT' in their invoice or official receipts. Said documents shall be considered as a 'VAT Invoice' or VAT official receipt. All purchases covered by invoices/receipts other than VAT Invoice/VAT Official Receipt shall not give rise to any input tax. /

DECISION CTA Case No. 9022 VAT invoice/official receipt shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of his accounting records. (B) Information contained in VAT invoice or VAT official receipt. - The following information shall be indicated in VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person, followed by his TIN; (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the VAT; Provided, That: XXX XXX XXX (c) If the sale is subject to zero percent (0�/o) VAT, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; (Emphasis supplied) To comply with the foregoing provisions, the foreign currency remittances referred to under Section 108(B)(2) of the NIRC of 1997, as amended, must be supported by VAT zero-rated official receipts (ORs). In petitioner's Quarterly VAT Returns for the four quarters of CY 2013, petitioner reported zero-rated sales of P409,384,104.16, as shown below: EXHIBIT PERIOD ZERO-RATED COVERED SALES/RECEIPTS "P-4" 1st Quarter 2013 p 91,546 498.51 "P-6" 2nd Quarter 2013 "P-8" 3rd Quarter 2013 103,399,672.97 "P-10" 4th Quarter 2013 102,256 361.81 Total 112,181 570.87 p 409,384,104.16 To prove that it had rendered services to Trans-Fast Remittance LLC and Trans-Fast International FZ-LLC for the four quarters of CY 2013 and the same were paid for in acceptable foreign currency duly accounted for in accordance with the rules and regulations of the BSP, /

DECISION CTA Case No. 9022 petitioner presented its VAT zero-rated 0Rs28, and various schedules, supported by bank advices, credit advices, credit memoranda, bank certifications, passbooks and bank statements29, all examined and reviewed by !CPA Madonna Mia S. Dayego. Verification by the ICPA30 revealed that petitioner charges the Parent Company (Trans-Fast LLC) and Affiliate Company (Trans-Fast International FZ LLC) on a per transaction rate amounting to USD2.00 to USD2.55 based on the Addenda to the Service Agreement effective January 2012 to July 201331 . For the first eight (8) months (i.e., January to August) of CY 2013, petitioner collected the service revenue earned, which was evidenced by OR, by deducting the amount against the funding received for Payment Orders from Parent Company and Affiliate Company. Petitioner implemented the change in procedure in the collection of service revenue for the succeeding months. It collected the service fees for the months of September to December 2013 separately from the funding received for Payment Orders from the Parent and Affiliate Companies. For the months of September to December 2013, petitioner's sales of services were duly substantiated as can be gleaned from the VAT zero-rated 0Rs32 and !CPA's Summary of Comparison of Schedule of Collections of Zero- rated Sales with Bank Advices and Passbooks for September to December 201333 . However, for the months of January to August 2013, while the sales of services were supported by VAT zero-rated 0Rs34, the !CPA noted unsubstantiated remittances amounting to $13,887,311.08 out of the total funding of $874,716,033.40 and that there was funding by 28 Exhibits "P-28-9" to "P-28-32". 29 Exhibits "P-29" to "P-39-8". 30 Exhibit "P-20", ICPA Report, docket, vol. 2, pp. 687-688. 31 Exhibits "P-59-4" to "P-59-7". 32 Exhibits "P-28-25" to "P-28-32". 33 Exhibit "P-39". 34 Exhibits "P-28-9" to "P-28-24". /

DECISION CTA Case No. 9022 International Crew Center 5 De R L and Ving Go Manpower Co. Ltd. without service agreement with the parent or affiliate companies amounting to $172,477.46. 35 The summary of these exceptions is presented hereunder: � Unsubstantiated Inward Remittances from Amount Exhibit/ Affiliate Company Reference $ 837 583.22 No bank advices, credit advices, credit P-36, Note memo or 10.2, p. 48 of bank certifications 48 P-36, Notes 7 Bank certifications with insufficient details 8,564 727.86 & 8, p. 48 of Remitter was not a Partner 4 485 000.00 48 Subtotal P-36, Note 9, $ 13,887,311.08 � Funding Without Service Agreement p. 48 of 48 From Parent Company and/or Parent $ 54 456.00 P-35, Note 3, Company's 118,021.46 p. 38 of 38 Partners From Affiliate Company and/or Affiliate $ 172,477.46 P-36, Note 5, Company's Partners p. 48 of 48 Subtotal $14,059,788.54 Total Exceptions on funding found by ICPA Accordingly, the service revenues of P19,063.48, related to the transactions consisting the exceptions of $14,059,788.54, shall be denied zero-rating, the details of which are as follows: 36 � Service revenue from unsubstantiated remittances Amount Reference No bank advices, credit advices, credit memo or bank Certifications p 2,285.20 Annex A Bank certifications with insufficient details - No remitter 12,538.18 Annex B.1 name in the bank certification Bank certifications with insufficient details - Remitter 1,423.31 Annex B.2 1/356.69 Annex C name P17,603.38 is "New York Bay Philippines" instead of a Partner Remitter was not a Partner Subtotal 35 Exhibit "P-20", ICPA Report, docket, vol. 2, p. 693. 36 The amounts were computed on a per transaction basis using the applicable rates per Service Agreements and were converted to peso using the exchange rate used by ICPA per its Schedule of Zero-rated sales. /

DECISION CTA case No. 9022 � Service revenue from funding without service agreement P521.80 Annex D Annex E From Parent Company and/or Parent Company's Partners 938.30 From Affiliate Company and/or Affiliate Company's ,. 1,460.10 Partners P19,063.48 Subtotal Total Hence, out of the �>409,384,104.16 sales reported by petitioner to have been generated from services rendered to its non-resident affiliates for CY 2013, only the amount of P409,365,040.68 (�>409,384,104.16 less P19,063.48) qualifies for VAT zero-rating under Section 108(8)(2) of the NIRC of 1997, as amended. Petitioner incurred and paid input taxes which are attributable to its zero-rated sales As to the fourth and fifth requisites, in its Quarterly VAT Returns for the four quarters of CY 2013, petitioner reflected input VAT in the total amount of �>31,232,399.6237, broken down as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total (Exhibit P-4) (Exhibit P-6) (Exhibit P-8) (Exhibit P- p 88,322.98 10) Purchase of Capital p 7,607.14 6 058.93 p 116,570.36 p 54 589.28 p 267 089.76 Goods not 7,469 931.93 exceeding PlM - P7,564,313.84 4 892.14 18 982.04 29 933.11 (Line 218) 6 778 174.50 P6, 785,781.64 7,941,686.64 8, 745 583.68 30 935 376.75 Domestic Purchases of P8,063,149.14 P8 819,155.00 P31 232,399.62 Goods Other than Capital Goods (Line 21F) Domestic Purchase of Services (Line 211) Total Input Taxes for the period 37 With a difference of 0.10 compared to the amount of claim due to typographical error on carry over from 3rd Quarter to 4th Quarter VAT Returns. /

DECISION CTA Case No. 9022 To prove that it incurred/paid the afore-mentioned input VAT, petitioner submitted various suppliers' invoices38 and 0Rs39 � Upon examination of these documents, the ICPA noted exceptions in the amount of P272,631.89, to wit: 40 Exhibit Particulars 1st Qtr 2"d Qtr 3rd Qtr 4th Qtr Total Inl!_ut taxes on Capital goods not exceeding PlM p 3 375.00 - p 3 723.00 - - 23 153.54 P-54 Supported by original VAT 728.11 p 728.11 invoices without the TIN of -p 348.00 209.46 the Petitioner 21.42 176.78 P-50 Not supported - 23 153.54 176.78 38 915.37 Input taxes on Domestic Purchases of Goods other than Capital Goods 36 072.87 3,300.00 - P-51 Not supported - - - 10 144.29 - Input taxes on Domestic Purchases of Services 2,012.22 2,012.22 6 795.51 P-45 Input VAT not traced to 6,375.51 183 473.61 P272,631.89 GL/CVs/EDGE Pro Journal - 188.04 - 598.50 Entry Print-outs P45 985.41 P-48 Input VAT per OR is lower than the amount per claim - - - P-49 Supported by original VAT ORs in the name of the petitioner not dated or issued within the taxable - - 2 842.50 year P-53 Supported by original VAT ORs not in the name of the petitioner p 1 448.57 1 011.43 840.00 P-55 Supported by original VAT ORs without/invalid TIN of the petitioner 10 144.29 - - P-57 Supported by non-VAT acknowledgement receipt in the name of the petitioner - - - P-56 Supported by original VAT ORs without the address of 420.00 - - the petitioner P-52 Not supported 48 817.75 89 597.20 44 460.16 Total Downward Adjustment per ICPA P60,830.61 P114,298.21 PS1,517.66 The Court finds the above findings of the ICPA in order. The aforesaid input taxes of P272,631.89 shall be disallowed from petitioner's claim as they were not properly substantiated by VAT invoices or ORs as prescribed under Sections 110(A) and 113(A) and (B) of the NIRC of 1997, as amended, and as implemented by Sections 4.110-1, 4.110- 38 Exhibits "P-46-1" to "P-46-20", "P-47-1", to "P-47-15", and "P-54-1" to "P-54-2". 39 Exhibits "P-48-1" to "P-48-156", "P-49-1" to "P-49-23", "P-53-1" to "P-53-5", "P-55-1" to "P-55-3", "P-56-1" to "P-56-2", and "P-57-1". 40 Exhibit "P-20", ICPA Report, docket, val. 2, p. 703. /

DECISION CTA Case No. 9022 2, 4.110-8, and 4.113-1(A) and (B) of Revenue Regulations (RR) No. 16-05. In addition to the disallowance of P272,631.89 input VAT, the amount of P143,415. 73, broken down below, should likewise be disallowed for failure to meet the substantiation requirements under the aforesaid VAT law and regulations, thus: Supplier Invoice/ Amount Exhibit OR No. Input taxes on Capital goods not exceeding P1M 1. Supported by VAT invoices wfATP dated between .Jan. 1, 2011 to .Jan. 17, 2013 not stamped "valid until October 31, 2013 only" in violation of RMC No. 52-201341 Zenshin Systems Corporation 224617 p 7 607.14 P-46-1 Integrated Computer Systems, Inc. P-46-2 J.P Mactal Enterprises 210066388 5 217.86 P-46-3 J.P Mactal Enterprises P-46-10 3399 1,821.43 2. Supported by VAT invoice but undated 0343 803.57 Safe One Enterprises 8174 1,028.57 P-46-4 Subtotal p 16,478.57 Input taxes on Domestic Purchases of Goods other than Capital Goods 3. Supported by VAT invoice w/ATP dated between .Jan. 1, 2011 to .Jan. 17, 2013 not stamped "valid until October 31, 2013 only" in violation of RMC No. 52-2013. Integrated Computer Systems, Inc. 210066388 p 4,339.29 P-46-2 4. Supported by VAT invoice with notation "NOT VALID FOR CLAIMING INPUT TAXES" Intertech Forms Manufacturing 10063 4,285.71 P-47-2 Corporation p 8,625.00 Subtotal Input taxes on Domestic Purchases of Services 5. Supported by VAT ORs wfATP dated between .Jan. 1, 2011 to .Jan. 17, 2013 not stamped "valid until October 31, 2013 only" in violation of RMC No. 52-2013. Airfreight 2100, Inc. 1858140A p 210.63 P-48-1 Bernaldo Directo&PO Law Offices 9293 1 440.00 P-48-3 Bernaldo Directo&PO Law Offices 9542 1,440.00 P-48-4 CIS Bayad Center, Inc. 16792 424.29 P-48-8 CIS Bayad Center Inc. 17042 1,607.15 P-48-9 Deeconcrete Incorporated 19985 7,114.97 P-48-10 Deeconcrete Incorporated 19986 7,114.97 P-48-11 Deeconcrete Incorporated 19987 7,114.97 P-48-12 JobsDB. Philippines Inc. 60997 720.00 P-48-16 41 Clarifying the Validity of Unused/Unissued Principal and Supplementary Receipts/Invoices Printed Prior to January 18, 2013 and other matters XXX II. Receipts with Authority to Print dated January 1, 2011 to January 17, 2013 All Principal and Supplementary Receipts/Invoices with ATP dated January 1, 2011 to January 17, 2013 may be used until October 31, 2013 provided that new ATP was issued on or before August 30, 2013. xxx In all principal and supplementary receipts/invoice which can still be used until October 31, 2013, the term "valid until October 31, 2013 only" shall be stamped prominently on the face of the receipts or invoices (original and duplicate copies). Otherwise, no deduction and input tax may be claimed using these receipts/invoices. /

DECISION CTA Case No. 9022 Philrem Services CorQ. 3324 10 130.89 P-48-23 Philrem Services Corp. 3328 10,399.29 P-48-24 Pronto Express Distribution Inc. 89329 P-48-25 Pronto Express Distribution Inc. 89657 216.96 P-48-26 Pronto Express Distribution Inc. 89736 216.96 P-48-27 Airfreight 2100 Inc. 1878550A 216.96 P-48-30 Airfreight 2100, Inc. 1878549A P-48-31 Airfreight 2100, Inc. 1881614A 37.65 P-48-32 Airfreight 2100 Inc. 1881615A 66.60 P-48-33 16.65 67.32 Airfreight 2100, Inc. 1880740A 16.65 P-48-34 Airfreight 2100, Inc. 1865045A 65.43 P-48-35 Airfreight 2100, Inc. 1885970A 97.56 P-48-36 Bernaldo Directo&PO Law Offices 1 440.00 P-48-37 Bernaldo Directo&PO Law Offices 9546 1 440.00 P-48-38 Deeconcrete Incorporated 9767 7 114.97 P-48-45 Deeconcrete Incorporated 19988 7,114.97 P-48-46 Deeconcrete Incorporated 19989 7 470.72 P-48-47 I.T Citi Services, Inc. 20153 10,530.00 P-48-54 JobsDB. Philippines Inc. 2887 1,440.00 P-48-56 Philrem Services Corp. 64633 13,420.71 P-48-63 Pronto Express Distribution, Inc. 3386 216.96 P-48-64 Pronto Express Distribution, Inc. 90213 216.96 P-48-65 Pronto Express Distribution, Inc. 90649 216.96 P-48-66 Airfreight 2100, Inc. 91026 33.30 P-48-69 Airfreight 2100, Inc. 1889704A 93.06 P-48-70 Airfreight 2100 Inc. 1889705A 16.65 P-48-71 Airfreight 2100 Inc. 1889748A 34.02 P-48-72 1889749A Airfreight 2100 Inc. 1893948A 46.44 P-48-74 Airfreight 2100 Inc. 1893947A 43.65 P-48-75 Bernaldo Directo&PO Law Offices 9844 1 440.00 P-48-80 Deeconcrete Incorporated 20153 14 941.44 P-48-47 JobsDB. Philippines Inc. 65491 720.00 P-48-100 JobsDB. Philippines Inc. 66344 720.00 P-48-101 Pronto Express Distribution, Inc. 91498 216.96 P-48-111 Pronto Express Distribution, Inc. 91738 216.96 P-48-112 6. Supported by VAT ORs wherein input VAT per OR is lower than amount per claim (overclaim) Federal Express Pacific Inc. (1,539.42 less 1,511.93) A00031012 27.49 P-48-50 ZMG Ward Howell, Inc. (22,464.00 less 22 062.86) 1027 401.14 P-48-68 Airfreight 2100 Inc. (59.40 less 58.33) 2005462A 1.07 P-48-73 Airfreight 2100 Inc. (44.28 less 43.49) 2005463A 0.79 P-48-76 Airfreight 2100 Inc. (41.49 less 40.75) 2007156A 0.74 P-48-77 Airfreight 2100 Inc. (16.65 less 16.35) 2005479A 0.30 P-48-78 Subtotal P118,312.16 Grand Total P143,415. 73 Out of petitioner's input VAT claim of P31,232,399.52, only the amount of P30,816,351.90 represents petitioner's valid input VAT, computed as follows: Input VAT per petitioner's claim p 31,232,399.52 Disallowances: / Per ICPA's findings p 272,631.89

DECISION 143,415.73 416,047.62 CfA Case No. 9022 Page 21 of 23 P30,816,351.90 Per Court's further verification Valid input VAT However, a portion of the valid input VAT of P30,816,351.90 shall be applied against petitioner's total reported output VAT liability of P8,055.2242 � Consequently, only the remaining input VAT of P30,808,296.68 can be attributed to the entire zero-rated sales declared by petitioner in the amount of P409,384, 104.16 and only the input VAT of P30,806,862.05 is attributable to the valid zero-rated sales of P409,365,040.68, as computed below: Valid input VAT p 30,816,351.90 Less: Output VAT 8,055.22 Excess Valid Input VAT Divide by Total Declared Zero-Rated Sales p 30,808,296.68 Multiply by Valid Zero-Rated Sales 409,384,104.16 Excess Valid Input VAT attributable to Valid 409 365,040.68 Zero-Rated Sales p 30,806,862.05 Petitioner's excess input taxes were not applied against any output VAT liability As to the sixth and last requisite, petitioner's input VAT claim of P31,232,399.52 remained unutilized until it was deducted as "VAT Refund/TCC claimed"43 in its Amended Quarterly VAT Return for the fourth quarter of CY 2013. Further, the same was not reflected as carry-over in petitioner's Monthly and Quarterly VAT returns44 of the succeeding CY 2014. WHEREFORE, the instant Petition for Review is hereby PARTIALLY GRANTED. Accordingly, respondent is ORDERED TO REFUND OR TO ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner in the reduced amount of P30,806,862.05, representing its excess and unutilized 42 Total of the amounts in Line 19B of Exhibits "P-4", "P-6", "P-8", and "P-10". 43 Line 230 of Exhibit "P-10", docket, vol. 2, p. 977. 44 Exhibits "P-58-1" to "P-58-10".

CTA Case No. 9022 Annex A New York Bay Philippines, Inc. vs CIR No bank advices, credit advices credit memo or bank certifications (Exhibit P-36, p. 48 of 48, Note 10.2) a b c=a*b *Rate per *Conversion Service Income transaction (in Rate (in PHP) 40.7295 93.68 Date Bank Bank Account Amount (in USD) USD) 40.7295 93.68 01/09/2013 Banco de Oro 1006-6116-6147 40.7295 93.68 01/15/2013 Banco de Oro 1006-6116-6147 84,992.50 2.30 40.7295 93.68 01/23/2013 Banco de Oro 1006-6116-6147 40.6723 93.55 01/30/2013 Banco de Oro 1006-6116-6147 59,992.50 2.30 40.6723 93.55 02/06/2013 Banco de Oro 1006-6116-6147 40.6723 93.55 02/12/2013 Banco de Oro 1006-6116-6147 49,992.50 2.30 40.7127 93.64 02/20/2013 Banco de Oro 1006-6116-6147 41.298 94.99 03/01/2013 Banco de Oro 1006-6116-6147 59,992.50 2.30 41.298 94.99 05/17/2013 Banco de Oro 1006-6116-6147 41.298 94.99 05/24/2013 Banco de Oro 1006-6116-6147 149,992.50 2.30 41.298 94.99 05/27/2013 Banco de Oro 1006-6116-6147 42.9069 98.69 05/31/2013 Banco de Oro 1006-6116-6147 134,992.50 2.30 42.9069 98.69 06/03/2013 Banco de Oro 1006-6116-6147 43.3559 86.71 06/27/2013 Banco de Oro 1006-6116-6147 74,992.50 2.30 43.3559 86.71 07/03/2013 Banco de Oro 1006-6116-6147 43.3559 86.71 07/05/2013 Banco de Oro 1006-6116-6147 74,992.50 2.30 43.3559 86.71 07/11/2013 Banco de Oro 1006-6116-6147 43.3559 86.71 07/16/2013 Banco de Oro 1006-6116-6147 5,740.72 2.30 43.3559 86.71 07/18/2013 Banco de Oro 1006-6116-6147 43.8629 87.73 07/24/2013 Banco de Oro 1006-6116-6147 9,187.00 2.30 43.8629 87.73 08/01/2013 Banco de Oro 1006-6116-6147 43.8629 87.73 08/06/2013 Banco de Oro 1006-6116-6147 8,510.72 2.30 43.8629 87.73 08/14/2013 Banco de Oro 1006-6116-6147 43.8629 87.73 08/23/2013 Banco de Oro 1006-6116-6147 9,875.09 2.30 2,285.20 08/29/2013 Banco de Oro 1006-6116-6147 5,036.69 2.30 Total 10,000.00 2.30 9,863.00 2.00 9,992.00 2.00 9,023.00 2.00 9,749.00 2.00 9,904.00 2.00 9,951.00 2.00 1,000.00 2.00 9,944.00 2.00 9,931.00 2.00 10,000.00 2.00 9,936.00 2.00 837,583.22 *Rates per Addenda to Service Agreement: Exh. ''P-59-4"- effective Jul. 2011 payments from Middle East =$2.30 Exh. ''P-59-7"- effective Jul. 2013 payments from Middle East =$2.00 *Conversion Rates were based on the rates used by /CPA in its Schedule ofzero-rated sales.

CTA case No. 9022 Annex 6.1 New York Bay Philippines, Inc. vs CIR Bank certifications with insufficient details -No remitter name in the bank certification (Details picked up from Exhibit "P-36") Bank Remitter Beneficiary Beneficiary BankAcct Amount (in USD) a b c=a*b Certificate Name Name Bank No. Exhibit No. Date Gross Net *Rate per *Conversion Service P-36-1-1255 01/02/2013 - New York Bay Chinabank 1307051010 transaction Rate Income (in P-36-1-1255 01/07/2013 - Philippines, Inc. Chinabank 1307051010 40.7295 P-36-1-1255 01/08/2013 - New York Bay Chinabank 1307051010 (in USD) 40.7295 PHP) P-36-1-1255 01/09/2013 - Philippines, Inc. Chinabank 1307051010 40.7295 93.68 P-36-1-1255 01/10/2013 - New York Bay Chinabank 1307051010 65,042.04 65,042.04 2.30 40.7295 93.68 P-36-1-1255 01/11/2013 Philippines, Inc. Chinabank 1307051010 40.7295 93.68 P-36-1-1255 01/14/2013 - New York Bay Chinabank 1307051010 25,992.45 25,992.45 2.30 40.7295 93.68 P-36-1-1255 01/15/2013 Philippines, Inc. Chinabank 1307051010 40.7295 93.68 P-36-1-1255 01/16/2013 - New York Bay Chinabank 1307051010 67,351.27 67,351.27 2.30 40.7295 93.68 P-36-1-1255 01/17/2013 Philippines, Inc. Chinabank 1307051010 40.7295 93.68 - New York Bay 26,813.64 26,813.64 2.30 40.7295 93.68 - Philippines, Inc. 40.7295 93.68 New York Bay 112.00 112.00 2.30 40.7295 93.68 - Philippines, Inc. 40.7295 New York Bay 15,297.96 15,297.96 2.30 40.7295 93.68 Philippines, Inc. 40.6723 93.68 New York Bay 59,934.85 59,934.85 2.30 40.6723 93.68 Philippines, Inc. 40.6723 93.68 New York Bay 40,625.21 40,625.21 2.30 40.6723 93.55 Philippines, Inc. 93.55 33,674.75 33,674.75 2.30 93.55 93.55 51,593.81 51,593.81 2.30 P-36-1-1255 01/18/2013 New York Bay 51,185.06 51,185.06 2.30 P-36-1-1255 01/21/2013 54,605.33 P-36-1-1255 01/23/2013 - Philippines, Inc. Chinabank 1307051010 9,664.58 54,605.33 2.30 P-36-1-1255 01/28/2013 31,245.13 P-36-1-1257 02/04/2013 New York Bay 93,585.87 9,664.58 2.30 P-36-1-1257 02/05/2013 62,513.59 P-36-1-1257 02/06/2013 - Philippines, Inc. Chinabank 1307051010 27,898.63 31,245.13 2.30 P-36-1-1257 02/11/2013 48,136.17 New York Bay 93,585.87 2.30 - Philippines, Inc. Chinabank 1307051010 62,513.59 2.30 New York Bay 27,898.63 2.30 - Philippines, Inc. Chinabank 1307051010 48,136.17 2.30 New York Bay - Philippines, Inc. Chinabank 1307051010 New York Bay - Philippines, Inc. Chinabank 1307051010 New York Bay - Philippines, Inc. Chinabank 1307051010 New York Bay - Philippines, Inc. Chinabank 1307051010

erA Case No. 9022 Annex B.l New York Bay Philippines, Inc. vs CIR Bank certifications with insufficient details -No remitter name in the bank certification (Details picked up from Exhibit "P-36") Bank Remitter Beneficiary Beneficiary BankAcct Amount (in USD) a b c=a*b Certificate Name Name Bank No. *Conversion Service Exhibit No. Date Gross Net *Rate per Income (in P-36-1-1257 02/12/2013 - New York Bay Chinabank 1307051010 transaction Rate P-36-1-1257 02/13/2013 Philippines, Inc. Chinabank 1307051010 40.6723 PHP) P-36-1-1257 02/15/2013 - New York Bay Chinabank 1307051010 (in USD) 40.6723 93.55 P-36-1-1257 02/18/2013 Philippines, Inc. Chinabank 1307051010 40.6723 93.55 P-36-1-1257 02/19/2013 - New York Bay Chinabank 1307051010 12,062.70 12,062.70 2.30 40.6723 93.55 P-36-1-1257 02/20/2013 - Philippines, Inc. Chinabank 1307051010 40.6723 93.55 1 P-36-1-1257 02/22/2013 - New York Bay Chinabank 1307051010 70,861.18 70,861.18 2.30 40.6723 P-36-1-1257 02/25/2013 - Philippines, Inc. Chinabank 1307051010 40.6723 I P-36-1-1257 02/27/2013 New York Bay Chinabank 1307051010 19,043.56 19,043.56 2.30 40.6723 P-36-1-1257 02/28/2013 - Philippines, Inc. Chinabank 1307051010 40.6723 93.55 P-36-1-1259 03/01/2013 New York Bay Chinabank 1307051010 70,533.00 70,533.00 2.30 40.6723 93.55 P-36-1-1259 03/04/2013 - Philippines, Inc. Chinabank 1307051010 40.7127 93.55 P-36-1-1259 03/06/2013 New York Bay Chinabank 1307051010 16,555.37 16,555.37 2.30 40.7127 93.55 P-36-1-1259 03/07/2013 - Philippines, Inc. Chinabank 1307051010 20,546.72 40.7127 93.55 P-36-1-1259 03/08/2013 New York Bay Chinabank 1307051010 16,825.33 20,546.72 2.30 40.7127 93.55 P-36-1-1259 03/11/2013 - Philippines, Inc. Chinabank 1307051010 33,126.23 40.7127 P- 36-1-1259 03/13/2013 New York Bay Chinabank 1307051010 16,825.33 2.30 40.7127 93.64 P-36-1-1259 03/14/2013 - Philippines, Inc. Chinabank 1307051010 40.7127 93.64 - New York Bay 33,126.23 2.30 40.7127 93.64 - Philippines, Inc. 93.64 38,517.88 38,517.88 2.30 93.64 - New York Bay 31,489.80 93.64 Philippines, Inc. 31,489.80 2.30 93.64 - New York Bay 93.64 - Philippines, Inc. 22,263.90 22,263.90 2.30 - New York Bay - Philippines, Inc. 22,263.90 22,263.90 2.30 New York Bay Philippines, Inc. 101,475.09 101,475.09 2.30 New York Bay Philippines, Inc. {5,389.26) (5,389.26) 2.30 New York Bay Philippines, Inc. 29,091.80 29,091.80 2.30 New York Bay 19,218.74 Philippines, Inc. 78,665.91 19,218.74 2.30 New York Bay Philippines, Inc. 78,665.91 2.30 16,944.37 ... 16,944.37 2.30

CTA case No. 9022 Annex 8.1 New York Bay Philippines, Inc. vs CIR Bank certifications with insufficient details -No remitter name in the bank certification (Details picked up from Exhibit "P-36") Bank Remitter Beneficiary Beneficiary BankAcct Amount (in USD) a b c=a*b Certificate Name Name Bank No. Exhibit No. Date Gross Net *Rate per *Conversion Service P-36-1-1259 03/15/2013 - New York Bay Chinabank 1307051010 transaction Rate Income (in P-36-1-1259 03/18/2013 - Philippines, Inc. Chinabank 1307051010 40.7127 P-36-1-1259 03/19/2013 - New York Bay Chinabank 1307051010 (in USD) 40.7127 PHP) P-36-1-1259 03/25/2013 - Philippines, Inc. Chinabank 1307051010 40.7127 93.64 P-36-1-1259 03/26/2013 - New York Bay Chinabank 1307051010 10,147.58 10,147.58 2.30 40.7127 93.64 P-36-1-1259 03/27/2013 - Philippines, Inc. Chinabank 1307051010 40.7127 93.64 P-36-1-1261 04/01/2013 New York Bay Chinabank 1307051010 48,990.49 48,990.49 2.30 40.7127 93.64 P-36-1-1261 04/02/2013 - Philippines, Inc. Chinabank 1307051010 41.1422 93.64 P-36-1-1261 04/03/2013 New York Bay Chinabank 1307051010 16,781.06 16,781.06 2.30 41.1422 93.64 P-36-1-1261 04/05/2013 - Philippines, Inc. Chinabank 1307051010 41.1422 94.63 - New York Bay 57,684.98 57,684.98 2.30 41.1422 94.63 - Philippines, Inc. 41.1422 94.63 New York Bay 11,955.51 11,955.51 2.30 41.1422 94.63 Philippines, Inc. 41.1422 New York Bay 49,224.74 49,224.74 2.30 41.1422 94.63 Philippines, Inc. 41.1422 94.63 New York Bay 27,098.41 27,098.41 2.30 41.1422 94.63 Philippines, Inc. 41.1422 94.63 New York Bay 65,564.89 65,564.89 2.30 41.1422 94.63 Philippines, Inc. 94.63 14,785.74 14,785.74 2.30 94.63 94.63. 23,531.16 23,531.16 2.30 P-36-1-1261 04/08/2013 New York Bay 41,287.68 41,287.68 2.30 P-36-1-1261 04/10/2013 63,964.10 63,964.10 2.30 P-36-1-1261 04/12/2013 - Philippines, Inc. Chinabank 1307051010 39,340.11 39,340.11 2.30 P-36-1-1261 04/15/2013 52,520.13 52,520.13 2.30 P-36-1-1261 04/16/2013 New York Bay 18,581.74 18,581.74 2.30 P-36-1-1261 04/17/2013 10,251.62 10,251.62 2.30 P-36-1-1261 04/18/2013 - Philippines, Inc. Chinabank 1307051010 16,294.19 16,294.19 2.30 P-36-1-1261 04/19/2013 16,678.22 16,678.22 2.30 New York Bay - Philippines, Inc. Chinabank 1307051010 New York Bay - Philippines, Inc. Chinabank 1307051010 New York Bay - Philippines, Inc. Chinabank 1307051010 New York Bay - Philippines, Inc. Chinabank 1307051010 New York Bay - Philippines, Inc. Chinabank 1307051010 New York Bay - Philippines, Inc. Chinabank 1307051010

erA case No. 9022 Annex B.l New York Bay Philippines, Inc. vs CIR c=a*b Service Bank certifications with insufficient details -No remitter name in the bank certification (Details picked up from Exhibit "P-36") Income (in Bank Remitter Beneficiary Beneficiary BankAcct Amount (in USD) a b PHP) Certificate Name Name Bank No. *Conversion 94.63 Exhibit No. Date Gross Net *Rate per 94.63 P-36-1-1261 04/22/2013 - New York Bay Chinabank 1307051010 transaction Rate 94.63 P-36-1-1261 04/23/2013 - Philippines, Inc. Chinabank 1307051010 41.1422 94.63 P-36-1-1261 04/24/2013 New York Bay Chinabank 1307051010 (in USD) 41.1422 94.63. P-36-1-1261 04/25/2013 - Philippines, Inc. Chinabank 1307051010 41.1422 94.63 P-36-1-1261 04/26/2013 New York Bay Chinabank 1307051010 49,359.76 49,359.76 2.30 41.1422 94.63 P-36-1-1261 04/29/2013 - Philippines, Inc. Chinabank 1307051010 41.1422 94.99 P-36-1-1261 04/30/2013 New York Bay Chinabank 1307051010 31,855.66 31,855.66 2.30 41.1422 94.99 P-36-1-1263 05/02/2013 - Philippines, Inc. Chinabank 1307051010 41.1422 94.99 P- 36-1-1263 05/03/2013 New York Bay Chinabank 1307051010 27,515.23 27,515.23 2.30 41.2980 94.99 P-36-1-1263 05/06/2013 - Philippines, Inc. Chinabank 1307051010 41.2980 94.99 P-36-1-1263 05/07/2013 New York Bay Chinabank 1307051010 16,719.39 16,719.39 2.30 41.2980 94.99 P-36-1-1263 05/08/2013 - Philippines, Inc. Chinabank 1307051010 41.2980 94.99 P-36-1-1263 05/09/2013 New York Bay Chinabank 1307051010 14,594.65 14,594.65 2.30 41.2980 94.99 P- 36-1-1263 05/10/2013 - Philippines, Inc. Chinabank 1307051010 41.2980 94.99 P-36-1-1263 05/14/2013 New York Bay Chinabank 1307051010 40,339.39 40,339.39 2.30 41.2980 94.99 P-36-1-1263 05/15/2013 - Philippines, Inc. Chinabank 1307051010 41.2980 94.99 P- 36-1-1263 05/16/2013 - New York Bay Chinabank 1307051010 5,402.76 5,402.76 2.30 41.2980 P-36-1-1263 05/17/2013 Philippines, Inc. Chinabank 1307051010 41.2980 - New York Bay 40,585.03 40,585.03 2.30 41.2980 Philippines, Inc. ~- - 31,742.99 31,742.99 2.30 - New York Bay Philippines, Inc. 68,901.80 68,901.80 2.30 - New York Bay Philippines, Inc. 34,590.79 34,590.79 2.30 - New York Bay - Philippines, Inc. 20,337.53 20,337.53 2.30 - New York Bay - Philippines, Inc. 16,601.39 16,601.39 2.30 New York Bay Philippines, Inc. 22,277.33 22,277.33 2.30 New York Bay Philippines, Inc. 86,509.14 86,509.14 2.30 New York Bay Philippines, Inc. 15,825.76 15,825.76 2.30 New York Bay Philippines, Inc. 24,826.90 24,826.90 2.30 13,888.64 13,888.64 2.30

cr'A Case No. 9022 Annex 8.1 New York Bay Philippines, Inc. vs CIR Bank certifications with insufficient details -No remitter name in the bank certification {Details picked up from Exhibit "P-36") a b c=a*b Bank Remitter Beneficiary Beneficiary BankAcct Amount {in USD) *Rate per *Conversion Service Certificate Name Name Bank No. transaction Rate Income {in I Exhibit No. 41.2980 P-36-1-1263 Date - New York Bay Chinabank 1307051010 Gross Net (in USD) 41.2980 PHP) I P-36-1-1263 05/20/2013 Philippines, Inc. Chinabank 1307051010 41.2980 P-36-1-1263 05/21/2013 - New York Bay Chinabank 1307051010 48,441.47 48,441.47 2.30 41.2980 94.99 P-36-1-1263 05/22/2013 - Philippines, Inc. Chinabank 1307051010 41.2980 P- 36-1-1263 05/23/2013 - New York Bay Chinabank 1307051010 16,159.32 16,159.32 2.30 41.2980 94.99 P-36-1-1263 05/24/2013 Philippines, Inc. Chinabank 1307051010 41.2980 P-36-1-1263 05/27/2013 - New York Bay Chinabank 1307051010 16,252.79 16,252.79 2.30 41.2980 94.99 P-36-1-1263 05/28/2013 Philippines, Inc. Chinabank 1307051010 41.2980 P-36-1-1263 05/29/2013 - New York Bay Chinabank 1307051010 14,393.37 14,393.37 2.30 41.2980 94.99 P-36-1-1263 05/30/2013 - Philippines, Inc. Chinabank 1307051010 42.9069 P-36-1-1265 05/31/2013 - New York Bay Chinabank 1307051010 11,239.32 11,239.32 2.30 42.9069 94.99 P-36-1-1265 06/03/2013 - Philippines, Inc. Chinabank 1307051010 42.9069 P-36-1-1265 06/04/2013 - New York Bay Chinabank 1307051010 22,874.80 22,874.80 2.30 42.9069 94.99 P-36-1-1265 06/05/2013 - Philippines, Inc. Chinabank 1307051010 28,020.64 42.9069 P-36-1-1265 06/06/2013 New York Bay Chinabank 1307051010 21,516.61 28,020.64 2.30 42.9069 94.99 P- 36-1-1265 06/07/2013 - Philippines, Inc. Chinabank 1307051010 21,753.93 42.9069 P-36-1-1265 06/10/2013 New York Bay Chinabank 1307051010 21,516.61 2.30 42.9069 94.99 P-36-1-1265 06/11/2013 - Philippines, Inc. Chinabank 1307051010 06/13/2013 - New York Bay 21,753.93 2.30 94.99 Philippines, Inc. - 28,396.47 28,396.47 2.30 94.99 - New York Bay Philippines, Inc. 67,939.04 67,939.04 2.30 . - New York Bay Philippines, Inc. 98.69 - New York Bay Philippines, Inc. 8,732.42 8,732.42 2.30 98.69 New York Bay Philippines, Inc. 44,888.18 44,888.18 2.30 98.69 New York Bay Philippines, Inc. 25,308.90 25,308.90 2.30 98.69 New York Bay Philippines, Inc. (2,794.04) (2,794.04) 2.30 98.69 New York Bay 44,380.17 Philippines, Inc. 44,380.17 2.30 98.691 New York Bay Philippines, Inc. 19,630.31 19,630.31 2.30 ! 102,742.06 98.69. 102,742.06 2.30 98.69

ciA Case No. 9022 Annex B.l New York Bay Philippines, Inc. vs CIR Bank certifications with insufficient details -No remitter name in the bank certification (Details picked up from Exhibit "P-36") Bank Remitter Beneficiary Beneficiary BankAcct Amount (in USD) a b c=a*b Certificate Name Name Bank No. *Conversion Service Exhibit No. Date Gross Net *Rate per Income (in P-36-1-1265 06/14/2013 - New York Bay Chinabank 1307051010 transaction Rate P-36-1-1265 06/17/2013 - Philippines, Inc. Chinabank 1307051010 42.9069 PHP) P-36-1-1265 06/18/2013 - New York Bay Chinabank 1307051010 (in USD} 42.9069 P-36-1-1265 06/19/2013 - Philippines, Inc. Chinabank 1307051010 42.9069 98.69 P-36-1-1265 06/20/2013 - New York Bay Chinabank 1307051010 27,602.98 27,602.98 2.30 42.9069 P-36-1-1265 06/21/2013 - Philippines, Inc. Chinabank 1307051010 42.9069 98.69 P-36-1-1265 06/24/2013 - New York Bay Chinabank 1307051010 56,782.89 56,782.89 2.30 42.9069 P-36-1-1265 06/25/2013 - Philippines, Inc. Chinabank 1307051010 42.9069 P-36-1-1265 06/26/2013 - New York Bay Chinabank 1307051010 32,964.84 32,964.84 2.30 42.9069 98.69 P-36-1-1268 07/01/2013 - Philippines, Inc. Chinabank 1307051010 42.9069 P-36-1-1268 07/02/2013 - New York Bay Chinabank 1307051010 23,625.71 23,625.71 2.30 43.3559 98.69 P-36-1-1268 07/04/2013 - Philippines, Inc. Chinabank 1307051010 43.3559 P-36-1-1268 07/05/2013 New York Bay Chinabank 1307051010 30,857.99 30,857.99 2.30 43.3559 98.69 P-36-1-1268 07/08/2013 - Philippines, Inc. Chinabank 1307051010 43.3559 98.69 P-36-1-1268 07/09/2013 New York Bay Chinabank 1307051010 23,230.46 23,230.46 2.30 43.3559 98.69 P-36-1-1268 07/10/2013 - Philippines, Inc. China bank 1307051010 43.3559 98.69 P-36-1-1268 07/11/2013 New York Bay Chinabank 1307051010 43,609.64 43,609.64 2.30 43.3559 98.69 P-36-1-1268 07/12/2013 - Philippines, Inc. Chinabank 1307051010 43.3559 86.71 - New York Bay 16,025.40 16,025.40 2.30 43.3559 Philippines, Inc. - 15,650.36 15,650.36 2.30 New York Bay - Philippines, Inc. 75,005.43 75,005.43 2.00 New York Bay Philippines, Inc. 18,093.25 18,093.25 2.00 86.71 New York Bay 86.71 Philippines, Inc. 64,577.67 64,577.67 2.00 New York Bay Philippines, Inc. 34,995.85 34,995.85 2.00 86.71 New York Bay Philippines, Inc. 78,481.70 78,481.70 2.00 ! New York Bay Philippines, Inc. 86.71 New York Bay Philippines, Inc. 30,368.63 30,368.63 2.00 86.71 New York Bay Philippines, Inc. 28,394.58 28,394.58 2.00 86.71 I ! 22,423.09 22,423.09 2.00 86.71 27,521.60 27,521.60 2.00 86.71

eTA case No. 9022 Annex B.l New York Bay Philippines, Inc. vs CIR c=a*b i Bank certifications with insufficient details -No remitter name in the bank certification (Details picked up from Exhibit "P-36") Setvice ' Bank Remitter Beneficiary Beneficiary BankAcct Amount (in USD) a b Income (in Certificate Name Name Bank No. Exhibit No. Date Gross Net *Rate per *Conversion PHP) P-36-1-1268 07/15/2013 - New York Bay Chinabank 1307051010 transaction Rate 86.71 P-36-1-1268 07/16/2013 - Philippines, Inc. Chinabank 1307051010 43.3559 86.71 P-36-1-1268 07/17/2013 - New York Bay Chinabank 1307051010 (in USD) 43.3559 86.71 P-36-1-1268 07/18/2013 Philippines, Inc. Chinabank 1307051010 43.3559 86.71 P-36-1-1268 07/19/2013 - New York Bay Chinabank 1307051010 49,986.32 49,986.32 2.00 43.3559 86.71 P-36-1-1268 07/22/2013 Philippines, Inc. Chinabank 1307051010 43.3559 86.71 I P-36-1-1268 07/23/2013 - New York Bay Chinabank 1307051010 22,965.65 22,965.65 2.00 43.3559 86.71 I P-36-1-1268 07/24/2013 - Philippines, Inc. Chinabank 1307051010 43.3559 86.71 P-36-1-1268 07/25/2013 - New York Bay Chinabank 1307051010 22,783.01 22,783.01 2.00 43.3559 86.71 P-36-1-1268 07/26/2013 Philippines, Inc. Chinabank 1307051010 43.3559 86.71 - New York Bay 16,419.70 16,419.70 2.00 43.3559 86.71 Philippines, Inc. 43.3559 86.71 - New York Bay 18,083.61 18,083.61 2.00 43.3559 86.71 Philippines, Inc. 43.3559 87.73 - New York Bay 34,752.62 34,752.62 2.00 43.8629 87.73 Philippines, Inc. 43.8629 87.73 New York Bay 18,604.96 18,604.96 2.00 43.8629 87.73 Philippines, Inc. 43.8629 87.73 New York Bay 9,716.08 9,716.08 2.00 43.8629 Philippines, Inc. 37,764.37 37,764.37 2.00 10,312.59 10,312.59 2.00 P-36-1-1268 07/29/2013 New York Bay Chinabank 1307051010 28,349.36 28,349.36 2.00 P-36-1-1268 07/30/2013 Chinabank 1307051010 44,055.00 44,055.00 2.00 P-36-1-1268 07/31/2013 - Philippines, Inc. Chinabank 1307051010 19,695.98 19,695.98 2.00 P-36-1-1270 08/01/2013 Chinabank 1307051010 38,268.53 38,268.53 2.00 P-36-1-1270 08/05/2013 New York Bay Chinabank 1307051010 126,521.12 126,521.12 2.00 P-36-1-1270 08/07/2013 - Philippines, Inc. Chinabank 1307051010 76,433.30 76,433.30 2.00 P-36-1-1270 08/08/2013 Chinabank 1307051010 2.00 P-36-1-1270 08/12/2013 New York Bay Chinabank 1307051010 91.68 91.68 2.00 - Philippines, Inc. 33,805.41 33,805.41 �-- New York Bay - Philippines, Inc. New York Bay - Philippines, Inc. New York Bay - Philippines, Inc. New York Bay - Philippines, Inc. New York Bay - '� Philippines, Inc.

etA case No. 9022 Annex 8.1 New York Bay Philippines, Inc. vs CIR c=a*b Bank certifications with insufficient details -No remitter name in the bank certification (Details picked up from Exhibit "P-36") Service Income (in Bank Remitter Beneficiary Beneficiary BankAcct Amount (in USD) a b Certificate Name Bank No. *Conversion PHP) Exhibit No. Date Name Gross Net *Rate per 87.73 - Chinabank 1307051010 transaction Rate 87.73 Chinabank 1307051010 43.8629 87.73 - Chinabank 1307051010 (in USD) 43.8629 87.73 - Chinabank 1307051010 43.8629 87.73 - New York Bay Chinabank 1307051010 43.8629 87.73 Chinabank 1307051010 43.8629 87.73 P-36-1-1270 08/14/2013 - Philippines, Inc. Chinabank 1307051010 107,900.35 107,900.35 2.00 43.8629 87.73 Chinabank 1307051010 43.8629 87.73 - New York Bay Chinabank 1307051010 43.8629 43.8629 12,538.18 P-36-1-1270 08/16/2013 - Philippines, Inc. ---------- 29,226.92 29,226.92 2.00 - New York Bay - P-36-1-1270 08/19/2013 Philippines, Inc. 39,784.48 39,784.48 2.00 New York Bay P-36-1-1270 08/22/2013 Philippines, Inc. 79,805.67 79,805.67 2.00 New York Bay P-36-1-1270 08/23/2013 Philippines, Inc. 24,646.79 24,646.79 2.00 New York Bay P-36-1-1270 08/27/2013 Philippines, Inc. 58,694.15 58,694.15 2.00 New York Bay P-36-1-1270 08/28/2013 Philippines, Inc. 33,842.54 33,842.54 2.00 New York Bay P-36-1-1270 08/29/2013 Philippines, Inc. 49,158.16 49,158.16 2.00 New York Bay P-36-1-1270 08/30/2013 Philippines, Inc. 97,046.63 97,046.63 2.00 ------ Total 4,844,727.86 4,844,727.86 - ~ ~ *Rates per Addenda to Service Agreement: Exh. ''P-S9-4"- effective Jul. 2011 payments from Middle East =$2.30 Exh. ''P-S9-7"- effective Jul. 2013 payments from Middle East =$2.00 *Conversion Rates were based on the rates used by !CPA in its Schedule ofzero-rated sales.

CTA Case No. 9022 Annex 8.2 New York Bay Philippines, Inc. vs CIR Bank certifications with insufficient details -Remitter name is "New York Bay Philippines" instead of a Partner (Details picked up from Exhibit "P-36") Bank Remitter Beneficiary Beneficiary Amount (in USD) a b c=a*b Certificate Name Name Bank Exhibit No. Date Bank Acct No. Gross Net *Rate per *Conversion Service P-36-1-1264 06/25/2013 New York Bay New Yorl< Bay Banco de Oro 100661166147 transaction Rate Income (in 06/27/2013 Philippines Inc Philippines, Universal Bank 100661166147 P-36-1-1264 06/28/2013 Inc. Banco de Oro 100661166147 (in USD) PHP) 07/08/2013 New York Bay Universal Bank 100661166147 P-36-1-1264 07/09/2013 Philippines Inc New York Bay 100661166147 325,000.00 325,000.00 2.30 42.9069 98.69 07/10/2013 Philippines, Banco de Oro 100661166147 P-36-1-1267 New York Bay Inc. Universal Bank 100,000.00 100,000.00 2.30 42.9069 98.69 Philippines Inc P-36-1-1267 New York Bay Banco de Oro 220,000.00 220,000.00 2.30 42.9069 98.69 New York Bay Philippines, Universal Bank P-36-1-1267 Philippines, Inc. Inc. 200,000.00 200,000.00 2.00 43.3559 86.71 Banco de Oro New York Bay New York Bay Universal Bank 490,000.00 490,000.00 2.00 43.3559 86.71 Philippines, Inc. Philippines, Inc. 190,000.00 190,000.00 2.00 43.3559 86.71 New York Bay Philippines, Inc. New York Bay Philippines, Inc. New York Bay Philippines, Inc. P-36-1-1267 07/11/2013 New York Bay New York Bay Banco de Oro 100661166147 155,000.00 155,000.00 2.00 43.3559 86.71 P-36-1-1267 Philippines, Inc. Philippines, Universal Bank 100661166147 100,000.00 100,000.00 2.00 43.3559 86.71 P-36-1-1267 Inc. 100661166147 270,000.00 270,000.00 2.00 43.3559 86.71 Banco de Oro New York Bay Universal Bank New York Bay Philippines, Banco de Oro Universal Bank 07/12/2013 Philippines, Inc. Inc. New York Bay New York Bay Philippines, 07/16/2013 Philippines, Inc. Inc. New York Bay New York Bay Philippines, Banco de Oro Universal Bank P-36-1-1267 07/17/2013 Philippines, Inc. Inc. 100661166147 100,000.00 100,000.00 2.00 43.3559 86.71 P-36-1-1267 Banco de Oro 100661166147 170,000.00 170,000.00 2.00 43.3559 . 86.71 New York Bay Universal Bank New York Bay Philippines, --------- 07/19/2013 Philippines, Inc._ . Inc.

CfA Case No. 9022 Annex C New York Bay Philippines, Inc. vs CIR Remitter was not a Partner (Details picked up from Exhibit "P-36") a b c=a*b Bank Amount (in USD) *Rate per Service Certificate Income (in Exhibit No. Remitter Beneficiary Beneficiary transaction *Conversion Name PHP) Date Name Bank Bank Acct No. Gross Net (in USD) Rate New York Bay Banco de Oro 150,000.00 150,000.00 2.30 42.9069 98.69 P-36-1-1264 06/14/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 New York Bay Banco de Oro 360,000.00 360,000.00 2.30 42.9069 98.69 P-36-1-1264 06/18/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 New York Bay Banco de Oro 100,000.00 100,000.00 2.30 42.9069 98.69 P-36-1-1264 06/19/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 New York Bay Banco de Oro 125,000.00 125,000.00 2.30 42.9069 98.69 P-36-1-1264 06/21/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 New York Bay Banco de Oro 850,000.00 850,000.00 2.00 43.3559 86.71 P-36-1-1267 07/02/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 150,000.00 150,000.00 2.00 43.3559 86.71 235,000.00 235,000.00 2.00 43.3559 86.71 New York Bay Banco de Oro 875,000.00 875,000.00 2.00 43.8629 87.73 P-36-1-1267 07/03/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 New York Bay Banco de Oro P-36-1-1267 07/04/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 New York Bay Banco de Oro P-36-1-1269 08/06/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 New York Bay Banco de Oro 300,000.00 300,000.00 2.00 43.8629 87.73 P-36-1-1269 08/14/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 New York Bay Banco de Oro 125,000.00 125,000.00 2.00 43.8629 87.73 P-36-1-1269 08/16/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 305,000.00 305,000.00 87.73 New York Bay Banco de Oro 2.00 43.8629 P-36-1-1269 08/20/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147

CTA Case No. 9022 Annex C New York Bay Philippines, Inc. vs CIR Remitter was not a Partner (Details picked up from Exhibit "P-36") a b c=a*b Bank Amount (in USD) *Rate per Service Certificate Income (in Exhibit No. Remitter Beneficiary Beneficiary transaction *Conversion Name PHP) Date Name Bank Bank Acct No. Gross Net (in USD) Rate New York Bay Banco de Oro 100,000.00 100,000.00 2.00 43.8629 87.73 P-36-1-1269 08/22/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 New York Bay Banco de Oro 110,000.00 110,000.00 2.00 43.8629 87.73 P-36-1-1269 08/23/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 New York Bay Banco de Oro 500,000.00 500,000.00 2.00 43.8629 87.73 P-36-1-1269 08/27/2013 Citibank N.a. Philippines, Inc. Universal Bank 100661166147 P- 36-1-1269 08/28/2013 New York Bay Banco de Oro 100661166147 200,000.00 200,000.00 2.00 43.8629 87.73 Citibank N.a. Philippines, Inc. Universal Bank 4,485,000.00 4,485,000.00 1,356.69 Total *Rates per Addenda to Service Agreement� Exh. "P-59-4"- effective Jul. 2011 payments from Middle East =$2.30 Exh. "P-59-7"- effective Jul. 2013 payments from Middle East =$2.00 *Conversion Rates were based on the rates used by !CPA in its Schedule ofzero-rated sales.

ITA Case No. 9022 Annex D New York Bay Philippines, Inc. vs CIR Funding from Parent Company and/or Parent Company's Partner without Service Agreement (Details picked up from Exhibit "P-35") a b c=a*b Bank Amount (in USD) *Rate per Service Advice Income (in Exhibit No. Transaction I Ref. Remitter Beneficiary Beneficiary transaction *Conversion PHP) P-35-1-7 Date No. Name Name Bank Bank Acct No. Gross Net (in USD) Rate 01/03/2013 INTERNATIO NALCREW New York Bay CENTERS DE Philippines, Banco de Oro CORR13010300892 RL Inc. Universal Bank 100660800039 11,990.00 11,990.00 2.55 40.7295 103.86 INTERNATIO NAL CREW New York Bay CENTERS DE Philippines, Banco de Oro P-35-1-8 01/07/2013 CORR13010700550 RL Inc. Universal Bank 100660800039 13,493.00 13,493.00 2.55 40.7295 103.86 P-35-1-22 01/25/2013 CORR13012501696 100660800039 INTERNATIO 7,990.00 7,990.00 NALCREW New York Bay 11,993.00 11,993.00 CENTERS DE Philippines, Banco de Oro 8,990.00 8,990.00 54,456.00 54,456.00 RL Inc. Universal Bank 2.55 40.7295 103.86 :i ' International New York Bay crew Center S Philippines, Banco de Oro P-35-1-99 04/17/2013 CORR13041700743 De R L Inc. Universal Bank 100660800039 2.55 41.1422 104.91 P-35-1-132 05/17/2013 CORR13051701330 100660800039 1/ International New York Bay Crew Center S Philippines, Banco de Oro DE R Inc. Universal Bank 2.55 41.2980 105.31 Total 521.80 *Rates per Addenda to Service Agreement: Exh. ''P-S9-S"- effective Jan. 2012 payments from USA, Canada, Europe and Israel =$2.S5. *Conversion Rates were based on the rates used by !CPA in its Schedule ofzero-rated sales.

CTA case No. 9022 Annex E New York Bay Philippines, Inc. vs CIR Funding from Affiliate Company and/or Affiliate Company's Partner without Service Agreement (Details picked up from Exhibit "P-36") a b c=a*b Bank Transaction I Ref. Remitter Beneficiary Beneficiary Amount (in USD) *Rate per *Conversion Service Advice transaction Rate Income Exhibit No. Date No. Name Name Bank Bank Acct No. Gross Net (in PHP) (in USD) Ving Go New York Bay Manpower Philippines, Banco de Oro P-36-1-724 05/14/2013 CORR13051403305 Co. Ltd. Inc. Universal Bank 100661166147 23,466.31 23,466.31 2.30 41.2980 94.99 Ving Go New York Bay Manpower Philippines, Banco de Oro P-36-1-860 06/06/2013 CORR13060602693 Co .. ,ltd Inc. Universal Bank 100661166147 10,064.41 10,064.41 2.30 42.9069 98.69 Ving Go New York Bay Manpower Philippines, Banco de Oro P-36-1-880 06/11/2013 CORR13061103876 Co .. ,ltd Inc. Universal Bank 100661166147 7,116.74 7,116.74 2.30 42.9069 98.69 Ving Go New York Bay Manpower Philippines, Banco de Oro P-36-1-908 06/17/2013 CORR13061701548 Co..,ltd Inc. Universal Bank 100661166147 10,431.52 10,431.52 2.30 42.9069 98.69 Ving Go New York Bay Manpower Philippines, Banco de Oro P-36-1-923 06/19/2013 CORR13061901338 Co .. ,ltd Inc. Universal Bank 100661166147 9,353.51 9,353.51 2.30 42.9069 98.69 Ving Go New York Bay Manpower Philippines, Banco de Oro P-36-1-941 06/24/2013 CORR13062402157 Co .. ,ltd Inc. Universal Bank 100661166147 9,300.00 9,300.00 2.30 42.9069 98.69 Ving Go New York Bay Manpower Philippines, Banco de Oro P-36-1-1009 07/08/2013 CORR13070802275 Co. Ltd. Inc. Universal Bank 100661166147 9,022.76 9,022.76 2.00 43.3559 86.71 Ving Go New York Bay Manpower Philippines, Banco de Oro P-36-1-1134 08/02/2013 CORR13080203379 Co. Ltd. Inc. Universal Bank 100661166147 8,330.00 8,330.00 2.00 43.8629 87.73 Ving Go New York Bay Manpower Philippines, Banco de Oro P-36-1-1162 08/12/2013 CORR13081204323 Co. Ltd. Inc. Universal Bank 100661166147 10,000.00 10,000.00 2.00 43.8629 87.73 ----

DECISION CTA Cese No. 9022 input value-added tax on purchases of goods and services attributable to its zero-rated sales for the four quarters of CY 2013. SO ORDERED. ESPE We Concur: ~- ~ .J '--, MA. BELEN M. RINGPIS-LIBAN Associate Justice 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. LOVELL~ BAUTISTA Assofte Justice Chairperson

DECISION CfA Case No. 9022 CERTIFICATION Pursuant to Section 13 of Article VIII of the Constitution, and the Division Chairperson's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. <;tw~l{, c.Q.a'-~~. ~ J6'ANITO C. CASTANEDK:)R. Acting Presiding Justice

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