CHEVRON HOLDINGS INC., [ formerly CALTEX (ASIA) LIMITED] v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES Court ofTax Appeals QUEZON CITY En Bane CHEVRON HOLDINGS, INC. CTA EB CASE NO. 940 [formerly CALTEX (ASIA) (CTA CASE NOS. 7776 & 7813) LIMITED], Present: Petitioner, -versus- Del Rosario, P.J. Castaneda, Jr., Bautista, Uy, Casanova, Fabon- Victorino, Mindaro- Grulla, Cotangco-Manalastas, and Ringpis-Liban, JJ. COMMISSIONER OF Promulgated: ~,~-,.. p-~~ INTERNAL REVENUE, ~ r-z_- C{, )\.-<._ u ,, J.?_� MAY 06 2014 Respondent. X ---------------------------------------------------------------------------------------------------------------------- X DECISION BAUTISTA, J: The Case Before the Court En Bane for review are the denied consolidated petitions, docketed as CTA Case Nos. 7776 and 7813, of Chevron Holdings, Inc. involving claims for tax refund or issuance of tax credit certificate in the amount of Five Million Three Hundred Ninety One Thousand Two Hundred Fifty Two Pesos and Four Centavos (Php5,391,252.04) for the first quarter of taxable year 2006, and Thirty One Million Four Hundred Eleven Thousand Seven Hundred Four Pesos and Sixty-Eight Centavos (Php31,411, 704.68) for the second to fourth quarters of the same taxable year 2006, allegedly representing unutilized input value-added tax ("VAT"); the total amount ~

D ECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) unutilized input VAT for the period covering January 1, 2006 to December 31, 2006 is thus Thirty Six Million Eight Hundred Two Thousand Nine Hundred Fifty Six Pesos and Seventy-Two Centavos (Php36,802,956.72).1 The Parties2 Petitioner Chevron Holdings, Inc. is a corporation organized and existing under the laws of the State of Delaware, United States of America, and has an office address at 33/F Yuchengco Tower I, RCBC Plaza, 6819 Ayala Avenue, Makati City. It is registered with the Bureau of Internal Revenue ("BIR") as a VAT taxpayer under OCN 9RC0000136077.3 Respondent Commissioner is the duly appointed Commissioner of Internal Revenue, with authority, among others, to decide, approve, and grant tax credits and/ or refunds of overpaid or erroneously paid internal revenue taxes, with office address at the 5th Floor, BIR National Office Building, Agham Road, Diliman, Quezon City. The Facts As stated in the Decision dated June 6, 2012,4 the factual antecedents of this case are as follows: "Petitioner posits that for taxable year 2006, it rendered services to its affiliates, subsidiaries or branches both in the Philippines and abroad. It claimed that for services rendered to its foreign affiliates, the transactions are subject to zero percent VAT pursuant to Section 108 (B)(2) of the 1997 Tax Code while, on the other hand, services rendered to its Philippine affiliates are subject to 12% VAT. Petitioner alleged that in the same taxable year 2006, it incurred and paid input taxes on its purchases of ( 1 Rollo, CTA EB Case No. 940, p. 76. 2 lrl., p. 77. 'Records, CTA Case Nos. 7776 & 7813, joint Stipulation of Facts and Issues, p. 233. 4 /d. , pp. 77-91.

D ECI SI O N CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Page 3 o f 40 goods and services subject to VAT, summarized as follows: Quarter Zero-Rated Sales Subject Output Tax Purchases Input Tax Sales to 12'1,, VAT l SI 46 9, 04 7 .07 138,964,203.52 5,473,352.33 3 08,477, 292 .31 4,68 7, 29 0.75 3,852,895 .48 71 ,796,63 0 .97 6,843,948 .53 2nd 237,01 3,773.09 35,386,665 .52 3,408,639 .07 7,1 44, 030.57 3rct 271,095,515. 06 28,4 05,325 .59 4,941 ,698 .06 102,044,300 .16 20 ,690,791 .66 4th 459,971,366.03 41,180,817.13 247,874,770.08 Petitioner further alleged that it paid the above input taxes in the course of its trade and business, as supported by invoices and official receipts. The purchases of petitioner's capital goods were treated in its Audited Financial Statements and General Ledger as depreciable assets. Petitioner claims that input taxes generated on purchases for the four quarters of taxable year 2006 were not utilized against output taxes in the same quarters and in the subsequent quarters because it had substantial amounts of input taxes carried forward from the previous quarters. Petitioner likewise avers that the proceeds of the services rendered by Chevron Holdings, Inc. to its foreign affiliates were inwardly remitted in US dollars and were duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas. Believing that it is entitled to claim for tax refund or issuance of tax credit on the unutilized input VAT for taxable year 2006, petitioner filed its administrative claim for refund on March 28,2008. Following the inaction of the respondent on its administrative claim, petitioner filed on April 24, 2008, a Petition for Rev iew docketed as CTA Case No. 7776 (and raffled to the Court of Tax Appeals Second Division) for refund or issuance of tax credit certificate covering unutilized input taxes for the first quarter of taxable year 2006. Subsequently, on July 23, 2008, petitioner again filed a Petition for Review docketed as CTA Case No. 7813 (

D ECI S I O N CTA EB CASE NO. 940 (CTA Case Nos. 7776 an d 7813) Page 4 o�40 (raffled to the Court of Tax Appeals First Division) for refund or issuance of tax credit certificate covering unutilized input taxes for the second to fourth quarters of taxable year 2006."5 In the said Decision, the Court in Division held that: "WHEREFORE, the instant Petition for Review docketed as CTA Case No. 7776 and Petition for Review docketed as CTA Case No. 7813 are hereby DENIED for having been prematurely filed and are DISMISSED for lack of cause of action. The other issues raised become moot and academic. SO ORDERED."6 Not satisfied with the Decision, petitioner filed a Motion for Reconsideration on June 29, 2012.7 Respondent filed her corresponding Comment on July 20, 2012,8 while petitioner filed a Reply [to Respondent's Comment dated July 18, 2012] on August 6, 2012. 9 On September 7, 2012, the Court in Division issued a Resolution,1o where it held that: "WHEREFORE, premises considered, petitioner's 'Motion for Reconsideration' is hereby DENIED for lack of merit. SO ORDERED."n Upon the denial, petitioner raised the present consolidated cases to the Court En Bane when it filed a "Petition for Review" on September 27, 2012,12 praying that: f 5Jrf., pp. 77-78. " /d., p. 91, penned by then Presiding justice Ernes to D. Acos ta, with Associate justice Esperanza R. Fabon-Victorino conc urring, while Associa te Justice Erlinda P. Uy with a Separate Opinion. 7 Records, CTA Case Nos. 7776 & 7813, pp. 542-582. R /rf., pp. 592-609. 9 /d., pp. 610-639. 10 Rollo, CT A EB Case No. 940, pp. 98-102. I I /d ., p. 102. 12 /d. , pp. 1-68.

D ECI S I O N CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Page 5 of40 "WHEREFORE, premises considered, petitioner respectfully prays that this Honorable Court that: 1. Reverses and sets aside the Resolution dated September 11, 2012; 2. Reverses and sets aside the Decision dated June 13, 2011; 3. Gives due course to the Petitions for review; and 4. Grants petitioner's claim for refund and/ or the issuance of tax credit certificates for the amount of Php36,802,956.72 representing its unutilized and/ or unapplied input VAT for the period covering January 1, 2006 to December 31, 2006."13 On November 19, 2012, respondent filed her "Comment (Re: Petition for Review dated September 27, 2012),14 while petitioner filed a "Reply (to Respondent's Comment dated November 15, 2012)" on December 12, 2012.15 On February 19, 2013, the Court issued a Resolution giving due course to the "Petition for Review," ordering the parties to file their respective Memoranda within thirty (30) days.16 On March 27, 2013, respondent filed her "Memorandum (for Respondent),"17 while petitioner filed its " Memorandum" on April 5, 2013. 18 On May 8, 2013, the Court promulgated a Resolution/;} submitting the case for decision.19 (!/ Hence, this Decision. " /d., pp. 66-67. ,. /d., pp. 117-1 35. 15 lrl. , pp. 137-168. 1" lrl., pp. 179-180. 17 lrl., pp. 184-207. 18 lrl., pp. 210-238. 19 lrl. , p. 240.

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) The Issues Based on the "Memorandum"2ofiled by petitioner, the issues of the case are as follows: "I. WHETHER PETITIONER'S JUDICIAL CLAIM FOR REFUND WAS PREMATURELY FILED; and II. WHETHER PETITIONER IS ENTITLED TO A REFUND OF ITS UNUTILIZED EXCESS INPUT VAT FOR TAXABLE YEAR 2006" As for the "Memorandum (for Respondent)," 21 filed by respondent, the sole issue raised was: "STATEMENT OF THE ISSUE THE ISSUE TO BE RESOLVED IS WHETHER PETITIONER IS ENTITLED TO THE REFUND OR ISSUANCE OF TAX CREDIT ALLEGEDLY REPRESENTING UNUTILIZED VALUE-ADDED TAX (VAT) IN THE AMOUNT OF FIVE MILLION THREE HUNDRED NINETY-ONE THOUSAND TWO HUNDRED FIFTY-TWO PESOS AND 4/100 (PHP5,391,252.04) FOR THE FIRST QUARTER OF TAXABLE YEAR 2006 AND THIRTY ONE MILLION FOUR HUNDRED ELEVEN THOUSAND SEVEN HUNDRED FOUR PESOS AND 68/100 (PHP 31,411,704.68) FOR THE SECOND TO FOURTH QUARTERS OF THE SAME TAXABLE YEAR 2006. THE TOTAL AMOUNT OF THE ALLEGED UNUTILIZED f INPUT VAT FOR THE PERIOD 1 JANUARY 2006 TO 31 DECEMBER 2006 IS THIRTY-SIX MILLION EIGHT 2" lrl., p. 21 7. 21 /d ., p. 186.

DECISION CT A EB CASE NO. 940 (CTA Case Nos. 7776 an d 7813) HUNDRED TWO THOUSAND NINE HUNDRED FIFTY-SIX PESOS AND 72/100 (PHP 36,802,956,72)." Simply put, the issue in this case is whether or not the judicial claim filed by petitioner was within the prescribed period, and if it is within the period, whether petitioner is entitled to a refund or issuance of a tax credit certificate, in the amount of Thirty-Six Million Eight Hundred Two Thousand Nine Hundred Fifty-Six Pesos and 72/100 (Php 36,802,956,72) for taxable year 2006. The Ruling of the Court En Bane Section 112(A) of the 1997 NIRC, as amended, states that: "Section 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(B)(1) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP): Provided, further, That where the taxpayer is engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt sale of goods or properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, its shall be allocated proportionately on the basis of the volume of sales." (Emphasis ours) The said provision allows the refund or issuance of a tax credit certificate for the input VAT attributable to zero-rated or effectively ff zero-rated sales subject to the taxpayer's compliance with the f following requisites:

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) 1. there must be zero-rated or effectively zero-rated sales; 2. that input taxes were incurred or paid; 3. that such input taxes are attributable to zero-rated or effectively zero-rated sales; 4. that the input taxes were not applied against any output VAT liability; and 5. that the claim for refund was filed within the two-year prescriptive period. A claim for tax refund or credit, like a claim for tax exemption, is construed strictly against the taxpayer.22 Thus, before a claim is allowed, the taxpayer has the burden to prove strict compliance with the conditions for the grant of the tax refund or credit.23 The first issue to be resolved is whether or not the judicial claim was timely filed. It is clear from the records of the case that the administrative claim was filed on March 28, 2008, and on April 24, 2008, a judicial claim was filed by petitioner covering the first quarter of taxable year 2006; while on July 23, 2008, petitioner filed a separate judicial claim for the second to fourth quarters. In the recent case of Commissioner of Internal Revenue v. San Roque Power Corporation, et. al. ("San Roque case"),24 the Supreme Court held that: "BIR Ruling No. DA-489-03 is a general interpretative rule because it was a response to a query made, not by a particular taxpayer, but by a government agency tasked with processing tax refunds and credits, that is, the One Stop Shop Inter-Agency Tax Credit and Drawback Center of the Department of Finance. This government agency is also the addressee, or the entity responded to, in BIR Ruling No. DA-489-03. Thus, while this government agency mentions in its query to the Commissioner the administrative claim of Lazi Bay Resources Development, Inc., the agency was in fact 22 Co111 111issio11er of ill tem nl Reve1111e v. Bn11k of tl1e Pl1ilippi11e Jsla11ds, G.R. No. 178490, July 7, 2009, 592 SCRA 219. f 23 Applied Food lllgredie11ts Co111pa11y, l11c. v. Counuissio11er of i11 tem al Reve11 ue, G.R. No. 184266, November 11, 2013. 2< G.R. Nos. 187485,196113, an d 197156, February 12, 2013, 690 SCRA 336.

D EC ISI O N CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) asking the Commissioner what to do in cases like the tax claim of Lazi Bay Resources Development, Inc., where the taxpayer did not wait for the lapse of the 120-day period. Clearly, BIR Ruling No. DA-489-03 is a general interpretative rule. Thus, all taxpayers can rely on BIR Ruling No. DA-489-03 from the time of its issuance on 10 December 2003 up to its reversal by this Court in Aichi on 6 October 2010, w here this Court held that the 120+30 day periods are mandatory and jurisdictional."25 Applying the San Roque case, since the administrative and judicial claims were all filed during the period of validity of BIR Ruling No. DA-489-03, petitioner benefits from the shield against the vice of prematurity for its judicial claim.26 Accordingly, petitioner's judicial claim for the four quarters of 2008 shall be considered as timely filed, as it complied with the two (2)-year prescriptive period. Respondent brings up in her Memorandum27 her contention that petitioner failed to comply with the provisions of Sections 112(A) and (C) of the 1997 NIRC, as amended, on the prescriptive period for claims for VAT refund/ tax credit and the submission of the complete documentary requirements enumerated in Revenue Memorandum Order (RMO) No. 53-98.28 Thus, respondent posits that this Court 25 G.R. Nos. 187485, 196113, and 197156, February 12, 2013, 690 SCRA 336. 26 G. R. No. 202071, February 19, 2014. 27 Rollo, CTA EB Case No. 940, pp. 204-205. 2N ANNEX B-1- VALUE-ADDED TAX (For audit involv ing Clai m for Re fund / TCC) A.) Requirements from Tax payer I. Requirements mentioned in Annex B II. Additional General Requirements 1) 3 copies of "Application for VAT Credit / Refund " 2) Sununary List of Loca l Purchases specify ing the following: Regis tered VAT Invoice Da te of OR Da te Amount Input To tal of OR In vo ice Na me of Number Number Invoice No. of Purchase Tax Am o unt Supplier of Supplier 3) Photocopies of VAT purchase invoices for purchase of goods and official receipts for purchase of services. (The invoices/ official receipts must be arran ged according to the summary list) 4) Summary of importations made durin g the period with the following details: Date of Supplier Item AWB/ BL Da te of Total Da te of O.R. No. VAT Payment Invoice No. Arrival Value 5) Photoco pies of invoices, import enh�y documents, offi cial receipts or confirmation receipts evidencing payment of VAT. (Segrega te documents paid by cash from those paid by tax debit memo) r - 6) VAT Returns filed for the quarter showing that the amow1t applied for refw1d /TCC has been reflected as a d educti on fi�om the total available input tax, as well as VAT Return for the succeeding quarter 7) Certifica tion of taxpayer showing the amow1t of Zero-ra ted Sal es, Taxa ble Sales and Exempt Sales ./ '

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) cannot exercise its appellate power to review and therefore has no jurisdiction to entertain the instant consolidated cases. The Court disagrees w ith the respondent. Ill. 8) A statement showing the amotmt and description of the sale of goods and services, name of persons or B.) entities (except in case of exports) to whom the goods or services were sold and date of the h�ansac tion, wh ere the applicant 's zero-ra ted transactions are regulated by certain government agency 9) Articles of Incorpora tion - for first time fil ers 10) Sales Contrac t/ Agreement 11) BOI Certifica te of Regish�ation 12) BlR Certifica te of Regish�ation 13) Certifica tion from BOI, DOF, BOC, EPZA, etc., that subjec t taxpayer has not filed sinlilar claim for refun d covering the same period 14) Sworn sta tement that endin g inventory as of the close of the -period covered by the Claim has been used direc tly or indirec tly in the products subsequently exported as supported by export documents, if the applicant is 100% exporter 15) Documents of liquida tion evidencing the ac tual utiliza tion of the raw ma terials in the manufacture of goods a t leas t 70% of which has been ac tually exported, if the applicant is an indirect exporter 16) Copy of t11e lTR and Certified Financial Sta tements, if applicable 17) Beginning and ending inventory of raw materials, work-in-process, fini shed goods, supplies and materials Additional Specific Requirements 1) Fo r Export Sales (Se mi-conductor comprulies, garments, food etc.) a. sales invoice number, name of buyer, airway bill / bill of lading number, lading date, amotmt of sales in foreign currency, peso value of sales, conversion rate, da te of renlittru1ce, bank credit memo number and amounted renlitted in pesos b. Photocopies of export documents: 1) Invoices/ receipts evidencing sale of goods, as well as tl1e name of the person to whom the good s were delivered with respec t to foreign currency denonlina ted sales 2) ex port declaration / permit c. accredited agent bank showing tl1at tl1e proceed s of tl1e sale in acceptable foreign currency had been inwardly remitted ru1d accounted for in accordance witl1 BSP rules and regulations. The sta tement should also show the amount in foreign currency of the export proceeds or consid eration, da te of expor t, date of in wa rd renlittance, conversion rate into Philippine currency and the total peso value tl1 e reof. 2) For Zero-Rated Sale of Services (contrac tors, nli1ling, etc. ) a. Authentica ted copy/ ies of the contract/s showing tl1e person/s for whom th e services were rend ered, amo unt of considera tion, description of tl1e services and docum ents evidencing ac tual p ay ments b. Photocopies of official receipts and billin gs toge ther with a summary of tl1e da te of billing, name of principal, official receipt number, da te of receipt, amount in fo reign currency and tl1e corresponding value thereof, da te of renlittru1Ce, name of bank, bank credit memo number and amount remitted in pesos c. Bank credit memoranda and certifica te from the BSP witl1 information sinlilar to 1-c (export sales) Additional Requirements for Manning Services: a. Montl1ly BSP report on income of agency received b. Breakdown of gross foreign receipts specifying the na ture of foreign currency received (e.g. Co nm1ission, allotment mamling fee, agency fee, advances, etc.) showing th e total foreign currency value with its peso equi valent, bank credit memo number, name of bru1k and da te of remittance pred 3) Effec tively zero-ra ted sale of goods (mining, etc.)/ services (contractors, etc.) a. Sunm1ary of Sales invoices/ receipts showing the name of the person entity to whom th e sale of goods or services were delivered, order of delivery, amount of consideration and description of goods or services delivered (RR 6-89 and RMC 2-90) b. Reconciliation of billings against payment c. Evidence of actual receipt of goods and services Additional Requirements for Minin g Compru1ies: a. Reconcilia tion of billin gs against ac tual collec tion b. Opera tin g agreement with own er o f mining claims, if applicable 4) Purchase of Capital Goods a. Original copies of invoices/receipts showing the da te of purchase, purchase price, amount of va lue- added tax paid and description of the capital equipment loca lly purchased b. On imported capital good s 1) Photocopy of import entry docw11ents ru1d offi cial receipts/confirmation receipts of pay ment issued by the Bureau of Customs for value-added tax pai d Reporting Requirements to be prepared and/ or submitted by tl1e Revenue Officers 1. Requirements mentioned in Annex B 2. Additional Requirements (All tl1e requirements mentioned above) '"l "~ t No te: pti ntocnpie> thC'oof fm m( In case of non-ava ilability of docum ents fi�om ROO / ROC mentioned in 8.2 - 8.6, tax paye r

DECISION CT A EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Records show that petitioner, upon the filing of its administrative claim on March 28, 2008,29 simultaneously submitted the documents in support thereof. In petitioner's letter claim,3D the following documents were attached: 1. Application for Tax Credit Refund (BIR Form 1914); 2. BIR Certificate of Registration (BIR Form 2303); 3. Annual Income Tax Return (BIR Form 1702); 4. Quarterly VAT Returns (BIR Form 2550Q); 5. Monthly VAT Returns (BIR Form 2550M); 6. Letter from CHI-MSSC authorizing undersigned counsel; 7. Service agreements with CHI-MSSC affiliates; and 8. Audited financial statements. Since the records do not show that a written notice was sent by the BIR informing petitioner that the aforesaid documents were incomplete nor requiring petitioner to submit additional documents, the prescriptive period started and continued to run from March 28, 2008, the date when petitioner filed its administrative claim together with the supporting documents. This is in accordance with Revenue Memorandum Circular No. 029-09 which states that: "III. Period within �which Refund of Tax Credit of Input Taxes shall be Made . Section 112(C) of the Tax Code of 1997, as amended by Republic Act No. 9337, provides among others, that in proper cases, the Commissioner shall grant a refund or issue the tax credit certificate (TCC) for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents. For the purpose of defining 'proper cases' in the said provision, the taxpayer/ claimant must have complied with the following conditions/ requirements upon audit/ verification of his/ its claim: of complete documents I a. Submission necessary to determine andfor ascertain the 29 Exhibit "P." 30 Exhibit " P," p. 3.

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Page 12 of40 correctness of the return and the amount to be refunded; b. That all books of accounts and accounting records pertaining to the claim are immediately available to the concerned Revenue Office (RO) for audit/ verification; c. Any discrepancies/ findings upon audit/ verification shall be reconciled/ explained in writing by the taxpayer/ claimant within five (5) days from receipt of the notification from the RO; and d. The taxpayer/ claimant has signified his concurrence to the outcome of the audit/ verification, which shall be evidenced by an Agreement Form." (Emphasis ours) Thus, the Court shall now discuss the remaining issues involved in the claim for refund or issuance of tax credit certificate. Anent the first requisite, it is undisputed that petitioner is duly registered with the BIR as a VAT taxpayer31 under OCN 9RC000017025932 and the services it performs in the Philippines, through its Regional Operating Headquarters (ROHQ), is limited to general administration and planning; business planning and coordination; sourcing and procurement of raw materials and components; corporate finance advisory services; marketing control and sales promotion; training and personnel management; logistics services; research and development services and product development; technical support and maintenance; data processing and communications; and business development;33 are not the same category as "processing, manufacturing or repacking of goods." Petitioner alleges that the services it renders to its affiliates, subsidiaries or branches abroad are subject to zero percent (0 %) VAT, pursuant to Section 108(B)(2) of the 1997 NIRC, as amended, which states that: "Section 108. Value-added Tax on Sale of Services and Use or Lease of Properties.- 11 Record s, CTA Case No. 7776 an d 7813, )SF!, Admissions, Par. 4, p . 233. >2 See No te 3. ( "Exhibit "N," petitioner's No tes to Financial Sta tements As of & Fo r The Years Ended December 31,2006 & 2005, Note 1, General Information.

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) 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: (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 the case of Commissioner of Internal Revenue v. Burmeister and Wain Scandinavian Contractor Mindanao, Inc., 34 the Supreme Court held that in order for the supply of services to be VAT zero-rated under Section 108(B)(2) of the 1997 NIRC, as amended, the following requisites must be met: "1. the services must be other than processing, manufacturing or repacking of goods; 2. 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." 3< G.R. No. 153205, January 22, 2007, 512 SCRA 124.

DECISION CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) Corollary to the second requisite, Sections 113(A)(2), (B)(1), (2)(c) and (3) of the 1997 NIRC, as amended, as implemented by Sections 4.113-l(A)(2), B(1) and (2)(c) of Revenue Regulations ("RR") No. 16-05 provide that a VAT taxpayer, like herein 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: 11Section 113. Invoicing and Accounting Requirements for VAT-registered Persons. - (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 irtformation 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 Taxpayer1s 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%) value- added tax, the term 1zero-rated sale1 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; and xxx" (underlining supplied)

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) "Section 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. 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 (c) If the sale is subject to zero percent (0%) VAT, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; xxx" (underlining supplied) Pursuant to the foregoing provisions, the foreign currency XXXI remittances referred to under Section 108(B)(2)35 of the 1997 NIRC, asXXXXXX >5 Section 108. Value-added Tax ou Sale of Services and Use or Lease of Properties. - (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.

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) amended, must likewise be supported by VAT zero-rated official receipts. Petitioner complied with all the requisites for the VAT zero- rating of its sales of services for the year 2006 but only to the extent of Php155,654,748.22 out of the total reported zero-rated sales of Phpl,276,557,946.49. With regard to the third requisite that its affiliate-clients are non-resident foreign corporations doing business outside the Philippines, petitioner presented Certifications of Non-Registration of Corporation/Partnership36 issued by the Securities and Exchange Commission (SEC), Service Agreements,37 Memorandum and/ or Articles of Association, Articles/Certificate of Incorporation, Certificate of Change of Name, Company Profile, Certificate Confirming Incorporation38 and printed screenshots39 of the United States SEC website for company filings of Chevron Corporation. Each of the aforesaid documents, standing alone, is inadequate to prove that petitioner's clients are non-resident foreign corporation doing business outside the Philippines. While the SEC Certificates of Non-Registration show that the named entities therein are not registered corporations/partnerships in the Philippines, the same does not prove that such entities are non-resident foreign corporations doing business outside the Philippines.40 Likewise, the service agreements only show the names and addresses of petitioner's clients to whom it renders services but the same do not establish that such customers are non-resident foreign corporations doing business outside the Philippines. In addition, the Memorandum and/ or Articles of Association, Articles/Certificate of Incorporation and printed screenshots of the United States SEC website for company filings of Chevron Corporation only prove that the named entities therein were XXX XXX XXX (2) Services other than those mentioned in the preceding paragraph, the consideration for which is paid for in acceptable foreign currency and acco unted for in accordance with th e rules and regul ations of the Ban gko Sen tral ng Pilipinas (BSP). "'Exhibits "0" to "0-90." 17 Exl1ibits " R" to " R-17." 1s Exhibits "00," "00-1," to "00-25." ~uw Exhibits "PP," "PP-1," to "PP-8." Site/ Philippi11es Corporntio11 (Fo n11erly Clie11tlogic Philippi11es, l11 c.) v. Co111111issioner of lntem nl Revenue, CIA Case No. 7623, ( March 3, 2010.

DECISION CTA EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) Page 17 of40 incorporated/ organized abroad, but do not establish that such entities are not doing business in the Philippines. To be considered as non-resident foreign corporation doing business outside the Philippines, each entity must be supported by both SEC certificate of Non-Registration and Certificate/Articles of foreign incorporation/ association or printed screenshots of US SEC website showing the state/ province/country where the entity was organized. That being said, only the following clients of petitioner can be considered as non-resident foreign corporations doing business outside the Philippines: Name of Mfiliate SEC Certificate I Included in list Certificate of Subsidiaries Caltex Oil Mauritius, Ltd . Articles of Caltex Oil Products Company "0-14" of Chevron Caltex Trading Pte, Ltd. "0-9" Association I Corporationn Chevron Asia Pacific Pte, Ltd. "0-17" Chevron Australia Pty., Ltd. "0-71" Incorporation ~ Chevron Canada, Ltd. "0-32" "0 0 - 1 0 " ~ Chevron Global Technology Services "0-55" "00-4" ~ Chevron International Exploration Production "0-67" "00-7'' ~ Chevron Nigeria Limited "0-69" "0 0 - 2 5 " ~ Chevron Oronite Co. "0-59" ~ Chevron Products Company "0-54" - Chevron South Africa Pty., Ltd. "0-29" ~ Chevron Tankers, Ltd. "0-28" - Chevron USA, Inc. "0-26" - ~ Project Resources Company " 0-2 " Texaco Netherland BV "0 - 4 3 " - "0-82" - - "0 0 - 1 9 " "00-9" "00-2" - "0 0 - 2 0 " - - - -- - - - - - - - -- For services rendered for the four quarters of 2006, petitioner received US dollar (USD) payments with the peso equivalent amounting to Php1,276,454,088.11,42 which were accounted for in accordance with the BSP rules and regulations as evidenced by the Certificate of Inward Remittance43 issued by JP Morgan Chase Bank N.A and duly supported by VAT zero-rated official receipts (0Rs)44 issued by petitioner to its affiliate-clients. r However, a comparison of the amounts of zero-rated sales as reflected in the VAT zero-rated ORs and as declared in petitioner's 41 Exhibits " PP," " PP-1 ," to " PP-8." n Exhibit " Z," Annex 7 o f Exhibit "S. " "Exhibit " QQ." " Exltibits " EE-1" to " EE-308."

DECISION CTA EB CASE NO. 940 (CT A Case Nos. 7776 a nd 78B) Page 18 of -!0 Quarterly VAT returns shows the following discrepancy of Php103,858.38: Zero-rated Sales per ORs Php 1,276,454,088.11 1,276,557,946.49 Zero-rated Sales p er Quarterly VAT Returns45 (Php 103,858.38) ' Difference -- Since the amount of Php103,858.38 is not covered by VAT zero- rated ORs, the same shall be denied VAT zero-rating. Moreover, the Court notes that petitioner's declared zero-rated sales in the amount of Phpl0,025,869.35 (USD$202,609.23) although supported by VAT zero-rated ORs, do not have the corresponding foreign currency inward remittances, to wit: OR Payment Sales Sales Date (in USD) (in Php) Exhibit Name of Affiliate No. USD$ 2,195.94 Php 115,135.25 25-Jan-06 1,670,697.96 "EE-15" Chev ron Tankers Ltd. 206 25-0ct-06 33,405.94 4,198,161.55 24-Nov-06 84,875.65 4,041 ,874.59 "EE-223" Chev ron Products Com pany 443 27-Dec-06 82,131.70 Php10,025,869.35 USD$ 202,609.23 "EE-245" Chevron Products Company 466 "EE-295" Chevron Products Company 516 Total - -- - - - - - - - - - - - - - - -- Thus, petitioner's claimed zero-rated sales in the amount of Phpl0,025,869.35 shall also be denied VAT zero-rating. Hence, out of the Phpl,276,557,946.49 sales reported by petitioner to have been generated from services rendered to its non- resident foreign affiliate-clients for the four quarters of 2006, only the amount of Php155,654,748.22, detailed below, qualifies for VAT zero- rating under Section 108(B)(2) of the 1997 NIRC, as amended: OR Payment Sales (in USD) No. Date Name of Affiliate Sales (in Ph_p) Exhibit First Quarter of 2006 Caltex Oil Products Company Chevron Australia Pty., Ltd. JANUARY Chevron USA, Inc. 196 25-Jan-06 Caltex Trading Pte, Ltd. 12,200.75 Php 641,223 .40 EE-5 Caltex Oil Products Company 4,800.47 251,693.26 EE-13 204 26-Jan-06 Chevron Asia Pacific Pte, Ltd. 662,113.39 EE-10 12,628.29 201 26-Jan-06 FEBRUARY 224 23-Feb-06 11 ,826.93 612,280 .37 EE-29 7,914.11 409,713.61 EE-30 225 23-Feb-06 3,581.09 185,393.09 EE-31 226 23-Feb-06 J Exl1ibits " I," "J,

DECISION CTA EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) 230 27-Feb-06 Chevron USA, Inc. 17,710.46 922,501.47 EE-34 MARCH 23-Mar-06 Ca ltex Trading Pte, Ltd. 8,638.06 441,871.62 EE-43 242 23-Mar-06 Caltex Oil Products Company 7,914.11 404,838.66 EE-44 243 23-Mar-06 Chevron Asia Pacific Pte, Ltd. 3,581.09 183,187.20 EE-45 244 27-Mar-06 Chevron USA, Inc. 2,754.57 140,951.35 EE-51 249 27-Mar-06 Chevron USA, Inc. 17,710.46 906,244.28 EE-49 248 Subtotal Php 5,762,011.70 Second Quarter of 2006 APRIL 256 21-Apr-06 Chevron Asia Pacific Pte., Ltd 441.29 Php 22,796.14 EE-57 EE-62 261 25-Apr-06 Chevron USA, Inc. 488.72 25,319.13 EE-65 264 27-Apr-06 Chevron USA, Inc. 60,337.83 3,127,916.91 MAY 269 17-May-06 Caltex Oil Products Company 7,883.82 410,904.54 EE-69 3,581.09 188,265.38 EE-72 271 18-May-06 Chevron Asia Pacific Pte., Ltd. 1,437.41 EE-73 75,783.19 272 23-May-06 Chevron Australia Pty., Ltd. Chevron Int'l Exploration 283 25-May-06 Production 4,308.94 228,029.68 EE-82 952.25 50,299.76 EE-92 293 26-May-06 Chevron USA, Inc. 305.67 16,146.11 EE-93 238.06 12,574.81 EE-94 294 25-May-06 Chevron Tankers, Ltd . 295 26-May-06 Chevron USA, Inc. JUNE 302 22-Jun-06 Chevron Asia Pacific Pte., Ltd. 3,581.09 190,628.51 EE-100 238.06 12,672.41 EE-101 303 22-Jun-06 Chevron Australia Pty., Ltd. 269,145.50 EE-111 5,038.09 39,261.16 EE-112 313 26-Jun-06 Chevron Canada, Ltd. 734 .91 4,669,743.23 314 27-Jun-06 Chevron Oronite Co. Subtotal Php Third Quarter of 2006 JULY 324 21-Jul-06 Chevron Australia Pty., Ltd. 2,399.47 Php 125,254.87 EE-121 Chevron Global Technology Services EE-123 326 21-Jul-06 Chevron Oronite Co. 524.57 27,383.11 EE-138 Chevron USA, Inc. EE-145 341 25-Jul-06 Texaco Netherland BV 859.52 44,670.11 EE-148 Chevron Canada, Ltd. EE-149 348 26-Jul-06 Chevron Int'l Exploration 1,191,338.96 61,813,882.63 Production EE-150 351 26-Jul-06 Chevron Tankers, Ltd. 12,178.50 631,894.36 EE-153 Chevron Tankers, Ltd. EE-156 352 25-Jul-06 9,390.03 487,211 .64 Chevron Nigeria, Limited EE-164 353 26-Jul-06 Chevron Asia Pacific Pte., Ltd. 6,658.14 345,464.64 EE-169 Caltex Oil Mauritius, Ltd. 573.01 29,779.90 EE-170 356 26-Jul-06 Caltex Oil Products Company 94.78 4,890.28 EE-172 Chevron Canada, Ltd. EE-181 359 27-Jul-06 Texaco Netherland BV EE-182 AUGUST Chevron Asia Pacific Pte., Ltd. EE-195 Caltex Oil Products Company EE-202 367 22-Aug-06 Chevron Canada, Ltd. 4,812.55 246,542.04 EE-210 372 24-Aug-06 Texaco Netherland BV 3,793.65 195,630.65 EE-211 373 24-Aug-06 445.81 22,989.50 16,297.25 840,415.33 375 25-Aug-06 191,729.66 384 28-Aug-06 3,726.17 160,506.22 3,128.17 385 28-Aug-06 SEPTEMBER 398 21-Sep-06 3,581.09 179,434. 00 405 25-Sep-06 7,914.11 398,436.78 413 25-Sep-06 3,726.17 187,594.46 414 25-Sep-06 3,128.22 157,621.53 Subtotal Php 66,091,331.71 Fourth Quarta of 2006 v I 548,023.94 IPhp 27,365,621.69 I EE-216 OCTOBER 436 I 18-0ct-06 I Chevron Products Company

D ECISION CTA EBCASE NO. 940 (CT A Case Nos. 7776 and 7813) 438 19-0ct-06 Chevron Asia Pacific Pte., Ltd . 1,212.64 60,647.77 EE-218 Chevron Aus tralia Pty., Ltd . 286 .51 14,364.50 EE-221 441 23 -0 c t-06 Chevron Int1l Exploration P r o d u c ti on 445 25-0 ct-06 Chevron Canada, Ltd. 488 .72 24,441.87 EE-225 453 26-0ct-06 Texaco Ne therland BV 3,776.22 188,388 .07 EE-233 454 26-0ct-06 3,180.95 158,691 .24 EE-234 N OVEMBER Chevron South Africa Pty ., Ltd. 461 06-Nov-06 Chevron Products Company 132,253.41 6,586, 358 .0 0 EE-241 462 16-Nov-06 Chev ron Australia Pty ., Ltd . 336,483.71 16,864,238 .07 EE-242 464 20-Nov-06 Chevron Asia Pacific Pte., Ltd . EE-243 473 24-Nov-06 Project Resources Company 2,338.59 11 6,599.52 EE-252 483 24-Nov-06 Chevron So uth Africa Pty ., Ltd. 3,581.09 1 78,176 .98 EE-262 484 27-N ov-06 Caltex Oil Products Company EE-263 486 27-Nov-06 Chevron Canada, Ltd. 93 .94 4,673.98 EE-265 488 27-Nov-06 Chevron O ronite Co. 48,461 .76 2,406,662.53 EE-267 490 27-Nov-06 Texaco Netherland BV 10,589.83 EE-269 496 27-Nov-06 525,902.22 EE-275 DECEMBER Chevro n P rod ucts Co mpany 5,155.95 256,049.96 501 18-Dec-06 Chevron Canada, Ltd . 1,768.19 87,810.20 507 21-Dec-06 Chev ron Asia Pacific Pte., Ltd . 3,137.89 155,830.95 508 21-Dec-06 Texaco Netherland BV 510 21-Dec-06 Chevron USA, Inc. 339,402.54 16,745,816.78 EE-280 515 27-Dec-06 Chevron Oronite Co. 522 27-Dec-06 Chevron Tankers, Ltd . 3, 726. 17 184,042.93 EE-286 528 27-Dec-06 3,581 .09 176,877.14 EE-287 I I 3,137.73 154,988.59 EE-289 I 135,688.63 6,677,524.34 EE-294 3,523.57 173,402.33 EE-3 01 498 .90 24,551 .92 EE-307 Subtotal Php 79,131,661.58 Total Valid Zero-Rated Sales for the four quarters of 2006 Php155,654,748.22 Having resolved that petitioner had VAT zero-rated sales for the four quarters of 2006 in the amount of Php155,654,748.22, we now determine the amount of input VAT attributable thereto. In support of the Php40,152,123.09 input VAT reflected in its 2006 Quarterly VAT Returns, petitioner presented various invoices, official receipts and other documents which were all examined by the Court-commissioned Independent Certified Public Accountant (!CPA), Manabat Delgado Amper & Co., through its Partner, Atty. Fredieric B. Landicho. In his Report dated May 20, 2010,46 Atty. Landicho accounted for a total amount of Php39,420,619.02 input VAT, broken down as follows: Particulars 1" Quarter 2nd Quarter 3n1 Quarte r 4lh Quarter Total VALID INPUT VAT On Dom estic Purch ase of Services and 2,756,437. 08 4,621 ,714 .74 3,470,255.56 13,782,525.08 24,630,932.46 Goods oth er than Capital Goods~7 1,003,839.18 1,072,420.25 901,461.93 1,805,418.19 4,783,139.55 Pu rchase of Services r Purchases of Goods oth er than Capital Goods Add itional Do mes tic Purchases o f Services and Good s o th er th an Ca pital Good s~" ~"Exh ib it "S." ~7 Exhibits" AA-1" to" AA-2599" as summarized in Exhibit "U ."

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Purchase of Services - - - 2,769,162.89 2,769,162.89 Purchases of Goods other than Capital Goods 10,549.30 16,616.78 32,994 .65 19,786 .07 79,946.80 Subtotal 3,770,825.56 5,71 0,751.77 4,404,712.14 18,376,892.23 32,263,181.70 On Purchase of Capi tal Goods~9 1,194,953.73 Additional Purchases of Capital 247,144.81 525,010.39 772,998 .95 2,740,107.87 Goods51' Subtota l - 164.63 1,412.63 3,744.01 5,321.27 Total Valid Input VAT 247,144.81 525,175.02 774,411.58 1,198,697. 74 2,745,429.15 4,017,970. 37 6,235,926.79 5,179,123.72 19,575,589.97 35,008,610.85 INPUT VAT WITH CE RT AIN EXCEPTIONS On Domestic Purchase of Services and Goods other than Capi tal Goods Supported with Non-VAT Invoices 516,499.32 39,495.09 1,268,390.78 - 1,824,385.19 and 0Rs51 142,396.68 636,335.14 31,790.60 Supported wi th VAT Invoices & ORs - 29,358.77 358.40 15,330.33 dated outside the period of claim52 399,636.46 3,745.19 90,556.81 171.43 373.33 373.33 14.89 Supported wi th VAT Invoices and - ORs that are w1dated 5~ 28,223.57 3,274.53 292.50 Supported wi th Tape Receipts and Parking Stubs~ 10,018.97 12,438.82 6,542.58 Supported wi th VAT Invoices and ORs witho u t au thority to prin t55 3,823.18 10,735.72 600.00 Supported with VAT Invoices and - - - ORs tha t have no word "VAT"Sii 14.89 - - Supported with VAT Invo ices & ORs 1,701.20 that have no address of the vendor57 7,426 .90 5,576.18 11,362.39 26,066.67 249,650.48 288,331.04 584,522.92 1,389,845.37 Supported with VAT Inv oices & ORs 326,766. 73 1,660,289.89 739, 185.15 3,953,500.29 that are not in the name of the company5x Without Supporting Documents59 267,340.93 - - - 138,217.17 Subtota l 1,227,258.52 514.29 - - 514.29 On Purchase of Capital Goods 3,706.55 133,533.47 49,718.82 Supported with VAT Invoices da ted 138,217.17 4,220.84 133,533.47 49,718.82 320,376.42 ou tside the period of claimoo 459,1 0 7.88 330,987.57 1,793,823.36 788,903.97 Supported with Non-VAT Jnvoice61 - 4,412,608.17 Without Supporting Doc um entsn2 133,417.58 Subtota l 271,634.75 Total Input VAT with certain exce ption s 1,498,893.27 TOTAL INPUT VAT VERI FIED BY I 5,516,863.641 6,566,914.361 6,972,947.08 1 20,364,493.941 39,421,219.02 THEICPA A comparison of the above input taxes verified by the ICPA w ith the input taxes reflected in petitioner's Quarterly VAT Returns shows the follow ing discrepancies: Excess Input VAT per 1�1 Quarter z nd Quarter 3rd Quarter 41h Quarter Total return 7,144,030.57 20,690,791. 66 40,152,123.09 5,473,352.33 6,843,948.53 6,972,947.08 20,364,493.94 39,421,219.02 Input VAT verified by 5,516,863.64 6,566,914.36 I ----- 4" Exl1ibits "AA-2600" to" AA-2630" as sunm1arized in Ex hibit "U." ;9 E.rl1ibits " BB-1 " to "BB-164" as sununarized in Exhibit "V ." 511E.rl1ibits " BB-165" to "BB-168" as sunu11arized in Exhibit "V." 51Exl1ibits "CC-1" to "CC-55" as swnmarized in Exhibit " W." . 52 Exhibits "CC-56" to "CC-146" as sununarized in Exhibit "W-2." 5~ Exhibits "CC-147" to "CC-159" as sununarized in Exhibit " W-3." ~ Exl1ibits "CC-160" to "CC-599" as summarized in Exhibit "W-4." 55 Exhibits "CC-600" to "CC-626" as sununarized in Exhibit " W-5." sn Exhibits "CC-627" to "CC-628" as sununarized in Exhibit " W-6." 57 Exllibit "CC-629"; Exhibit " W-7." ;x Exl1ibits "CC-630" to "CC-679" as summarized in Exhibit " W-8." 59 Exhibit "W-1." "'"Exhibits "DD-1 " to "DD-13," "DD-15" to " DD-20" as summarized in Exhibit "X-1." "' Exhibit "DD-14;" Exhibit "X-2." n2 Exhibit "X."

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) the ICPA (43,511.31) 277,034.17 171,083.49 326,297.72 730,904.07 Difference Considering that the discrepancies for the second, third and fourth quarters in the respective amounts of Php277,034.17, Php 171,083.49 and Php 326,297.72, or in the sum of Php 774,415.38 pertain to the reported input VAT for which no supporting VAT invoices or official receipts were submitted by petitioner, the same shall be disallowed from petitioner's claim. In addition, petitioner's input VAT claim in the amount of Php 25,883,884.54 should likewise be disallowed for the following reasons: Particulars 1" z nd 3"' 4th Total On Domestic Purchases of Services Quarter Quarter Quarter Input VAT supported with VAT ORs but tile Quarter 2,695,990.65 VAT was 1/0t separately indicated Ill 2,695,990.65 3,316,765.10 14,011 ,874. 71 4,567,985.32 violation of Section 17 3(8)(2)(a) of tile NIR C 4,567,985.32 - 1,268,377.92 3,316,765.1 0 of 1997, as a1ueuded - - 1 4,011 ,874.71 - - - 1" Quarter; 1,067.66 1,268,377.92 2nd Quarter" 1,812.27 11, 088 .00 2,573 .09 - 3�d Quarter�;; - 15,281,320.29 11 ,088.00 - 326.78 4'" Quarter�v 2,697,802. 92 6,0 23 .04 3,319,338.19 1,812.27 4,585,423.14 326.78 Input VAT supported o1tly by billing state111euts iu violation of Section 113(A)(2) 2,573.09 of tile NIRC of 199 7, as nlllelllfed�� 1,067.66 Input VAT supported wit/1 VAT OR but Input VAT is lower tflau t/1e 6,023.04 25,883,884.54 nii/Ollllt per clnilll"; On Domestic Purchases of Goods other than Capital Goods luput VAT supported wit/1 VAT In voices but tl1e VAT was not separately indicated in violation of Section 11 3(8)(2)(a) of tile NIRC of1997, as mne11ded 1~L Quar tervu 2nd Qua rterv111 3�d Quarter" 41h Quarter' I11p11t VAT supported with VAT f11Vo ices but uo muou11ts of purchase a11d VAT were i11dicnted�; Total Thus, of the total reported input VAT of Php 40,152,123.09, only the amount of Php 9,081,815.00 represents petitioner's valid input VAT, computed as follows: Input Tax Per Returns 1" Quarter 2"d Quarter 3m Quarter 4'h Quarter Total Less: Disallowances 5,473,352.33 6,843,948.53 7,144,030.57 20,690,791 .66 40,152,123.09 Per !CPA's findings 1,498,893.27 330,987.57 1,793,223.36 788,903.97 4,412,008.17 Per this Co urt's furth er verification 2,697,802.92 -!,585,423.1 4 3,319,338.19 15,281,320.29 25,883,884.54 Discrepancy between the 277,034.17 input VAT per petitioner's 171 ,083.49 326,297.72 774,415}_� (

D ECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Page 23 o�40 Quarterly VAT Returns 4,196,696.19 5,193,444.88 5,283,645.04 16,396,521.98 31,070,308.09 and input VAT verified by 1,276,656.14 1,650,503.65 1,860,385.53 4,294,269.68 9,081,815.00 the ICPA Total Disallowances Valid Input V AT At this point We take into consideration the output taxes reported by petitioner in its Quarterly VAT Returns for the year 2006 and compare the same with the foregoing substantiated input taxes, to wit: Output Tax 151 Quarter 2nd Quarter 3rct Quarter 41h Quarter Total ValidlnputTax 469, 04 7 .07 3,852,895.48 3 ,40 8, 639.0 7 4,941 ,698 .0 6 12,672,279.68 Output Tax Still Due 1,650,503.65 1,860,385 .53 4,294,269.68 1 ,276,6 56. 1 4 2,202,391.83 1,548,253.54 9, 081 ,81 5. 00 (807,609.07) 647,428.38 3,590,464.68 As shown above, petitioner's properly substantiated input taxes for the second, third and fourth quarters of 2006 are not enough to cover its output taxes for the same quarters. While petitioner reflected in its Quarterly VAT Return63 for the first quarter of 2006, the amounts of Php3,645,615.7564 as "Input Tax Carried Over from Previous Quarter," Php52,138,741.9665 as "Transitional Input Tax" and Php779,739.0666 as "Others," however, petitioner failed to present VAT invoices or receipts to prove the existence of such amounts. Hence, the input tax carry-over of Php56,564,096.7767 cannot be validly applied against petitioner's output tax for the year 2006 pursuant to Section 110(A) in relation to Section 110(B) of the 1997 NIRC, as amended, which states: "Section. 110. Tax Credits. - A. Creditable Input Ta x. - (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 ! n3 Exhibi t "!." "' Exhibit " I," Line 20A. "' Exhibit " ]," Line 20C. "" Exhibit " I," Line 20E. n7 The sum of Php3,645,615.75, Php52,138,741.96 and Php779,739.06.

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) (B) Excess Output or Input Tax. - If at the end of any taxable quarter the output tax exceeds the input tax, the excess shall be paid by the Vat- registered person. If the input tax exceeds the output tax, the excess shall be carried over to the succeeding quarter or quarters.'' Considering that for the second, third and fourth quarters of 2006, there is no excess input VAT which may be the subject of a claim for refund/ tax credit certificate under Section 112(A)68 of the 1997 NIRC, as amended, petitioner's claim for the said quarters shall be denied. However, for the first quarter of 2006, petitioner had excess input taxes of Php807,609.07 but only the amount of Php15,085.24 allocable to its valid zero-rated sales of Php5,762,011.70 is refundable, as computed below: Valid Zero-Rated Sales Php 5,762,011.70 Declared Zero-Rated Sales + Php 308,477,292.31 Multiplied by Excess Input VAT X Php 807,609.07 Refundable Excess Input VAT attributable to Valid Zero-Rated Sales Php 15,085.24 It was established that petitioner deducted the input VAT of Php36,802,956.72, subject of the instant Petition for Review, as "VAT Refund/TCC Claimed" in its Quarterly VAT Return for the second quarter of 200869, thus, preventing the carry-over of the refundable excess input VAT of Php15,085.24 to the quarters subsequent to the second quarter of 2008. WHEREFORE, in view of the foregoing, the instant Petition for Review is hereby PARTIALLY GRANTED. The Decision dated June N< Secti on 112. Rcf1111ds or Tax Credits of l11p11t Tax . - (A) Zero- /~atcd or Effectively Zero-Rated Sales.- any VAT- registered person, whose sales are zero-rated or effec ti vely zero- rated may, within two (2) yea rs after the close of the ta xa ble quarter when the sa les we re mad e, a pply for the issuance of a tax credit ce rti ficate o r refund of creditabl e input tax du e or paid ath�ibutable to such sa les, exce pt h�ansitional input tax, to the ex tent that such input tax has not been app lied agains t output tax: Provided, lwwever, That in the case of zero- rated sales w1d er Secti on 106(A)(2)(a)(l), (2) and (B) and Section 108 (B)(l) and (2), the acceptable foreign currency exchan ge proceeds thereof had been duly accounted for in accordance with the rul es and regulations of the Bangko Senh�al n g Pilipinas (BSP): Provided, jllrliler, That where the ta xpayer is engaged in zero-rated or effec tively zero-rated sa le and also in ta xable or exempt sale of goods of properties or services, and the amount of creditable input tax due or paid cam1ot be f direc tly and entirely ath�ibuted to any one of tl1e transactions, it shall be alloca ted proportionately on tl1e basis of tl1e volume of sales. 69 Exhibit "HH."

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Page 25 of40 6, 2012 and Resolution dated Septe1nber 7, 2012 are hereby REVERSE D and SET AS IDE. Accordingly, respondent Comm issioner of Internal Revenue is hereby ORDERED TO REFUND OR ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner Chevron Holdings, Inc. in the amount of Fifteen Thousand Eighty Five Pesos and Twenty Four Centavos (Php15,085.24) representing unutilized excess input VAT for the first quarter of 2006 which is attributable to its zero-rated sales for the same period. SO ORDERED. LOVELL R. Associat WE CONCUR: Presiding Justice a~~ a a:t-~ ~ . .. JUANITO c. CASTANED K," JR. EARs~ ~~~ustPi. cUeY Associate Justice ~ CAESAR A. CASANOVA Associate Justice Cu:lJo N. M~~. 6~ ~/-~-~--//~ CIELITO N . MINDARO-GRULLA AMELIA R. COTANGCO-MANALASTAS Associate Justice Associate Justice ~ - ~ ..t1 ~.--� MA. BELEN M. RINGPIS-LIBAN Associate Justice

DECISION CTA EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) CERTIFICATION Pursuant to Section 13, Article VIII of the Constitution, it IS hereby certified that the above Decision has been reached in consultation with the members of the Court En Bane before the case was assigned to the writer of the opinion of this CoJ.Y't. Presiding Justice 'A itllex"A." INPUT VAT ON DOMESTIC PURCHASE OF SERV ICES SUPPORTED BY VAT OFFIC IAL RECE IPTS BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE NIR C OF 1997, AS AMENDED FOR THE FIRST QUARTER OF CY 2006 Official Supplier Input Tax Ex hibit Receipt No. lnnove Com mun icat ions 16.9 19.42 "AA-1" 23172 1 IBM Philippin es, Inc. 3,240.69 189794 lnifinite Power Systems, In c. 8,7 17.73 "AA -2" Go ld en Plate Restaurant Corporation 18 1. 82 6 13 Globe Telecom I ,006 .35 "AA -3" 297886 Globe Te lecom 323.75 199069 1 Globe Te lecom 2,486.22 "AA-4 " 1992275 PLDT 12,83 1. 74 199069 1 Mercer Hum an Resources 25 ,000.00 "AA-7" to "AA-8" 3847 13 Phil amcare Health Systems, In c. 39,954.04 Metasystems Development, In c. 954.55 "AA -9" 4087 Makati Shangri-La Manila 28637 379738 PLDT 836 .82 "AA-1 0" to "AA-29" Mand arin Oriental Manil a 2, 18 1. 82 9240 Ponce Enril e Reyes and Manalastas I,980 .00 "AA -30 " 13300 1 Lantin o Security and Watchm an Agency 43 ,700.00 3884 176 Microdata Systems and Management 11 3.64 "AA -3 1" 14 14477 Lane Archi ve Technologies 73638 3762 Integrated Computer Systems, In c. 19, 141.8 1 "AA -32" Intercontinental Manil a 6,2473 1 11 04 K&A Insurance Broker 9,897.00 "AA -33" 2056 Kayalayaan Engineerin g Company, In c. 7,522 .73 7560 Kayalayaan Engineer in g Company, In c. 4,454 .55 "AA-34" to "AA-35" 350534 Lane Archi ve Tec hnologies 8,836.07 5 1959 Ksea rch As ia Consulti ng, In c. 6. 165 .00 "AA-36" to "AA-4 1" 5462 Ksearc h As ia Consu lti no , Inc. 7.500.00 12 19 1 DHL Worldwide Exp ress 3,684.65 "AA-42" 12 192 Oakwood Premier 26,505.52 7327 Oa kwood Premier 34,4453 I "AA -43" 5 12 Oakwood Premier 12,421.75 51 1 Newport Learn in a Center, In c. 1,8 18. 18 "AA-44" to "AA-4 5" 344882 New World Renaissance Hotel 337.68 25325 New World Renaissance Hotel 2,473.9 1 "AA -46" 25304 Rajah Travel Corporation 830 .56 25349 Raj ah Trave l Corporati on 559 .76 "AA-47" 902 Searchers and Staffers Co rp. 5,502.43 72 830 SGV Development Dimensions 7,972. 73 "AA -48" 72688 Suppl y Oilfield Services, In c. 2,500.00 16 1890 Watson Wyatt Philip pin es. In c. 5,000.00 "AA -50" to "AA-5 1" 16 1769 Guard All Electronic Security Systems, Inc. 190.9 1 14636 Rajah Travel Corporation I,862.52 "AA-52" 9 157 11 733 "AA-53" to "AA-54" 16 196 "AA -55" 15794 161985 "AA-56" to "AA-59" "AA-60" "AA-6 1" "AA-62" "AA-63" to "AA-65" "AA-66" to "AA-69" "AA-70" "AA -7 1" "AA-72" to "AA-73" "AA -74" "AA-75" to "AA-82" "AA-83" to "AA-87" "AA-88" to "AA-93" "AA-94" "AA -95" "AA-96" "AA-98" f "AA-99" to "AA-1 07"

DECISION CT A EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Page 27 of40 14 7 Fiat Training and Consultancy II ,250.00 "AA- 108" ( 30 175 Fuji Xe rox Philippines. In c. 4.630. 10 "AA-1 09" to "AA-126" 30 176 Fuji Xerox Philippines. Inc. 30. 134.48 "AA-127" to "AA-1 32" 2359 Global Busin ess Suppo rt Services, Inc. 11 ,750. 16 "AA- 133" to "AA- 143" 2429 Global Business Support Serv ices, In c. II , 192.66 "AA- 144" to "AA-154" 3937 0 Fujitsu Philippines, In c 1.495.00 929 3D Networks 1.8 77.88 "AA- 155" 895 Advance Cleanino and Restoration Tech 25 ,077.65 "AA- 156" 11880 Business Staffin o and Management, In c. 2,546. 14 "AA-157 " 11871 Business Staffino and Management, Inc. 5,879.13 "AA- 158" 5403 Colliers International 4,93636 "AA-159" to "AA-160" DMJ Multi Print and Serv ices 3,272.73 "AA-161" 171 DMJ Multi Print and Serv ices "AA-1 62" 168 Exec uti ve International Movers 63.64 "AA-1 63" 4391 Fac ilities Managers, In c. 7,788 .00 "AA -1 64" to "AA-1 66" 24453 Fac ilities Managers, In c. 19.186 03 "AA- 167" to "AA-1 68" 24556 Facilities Managers, In c. 16,837.91 "AA-1 69" to "AA- 170" 24467 Facilities Managers, In c. 68,778.65 "AA-1 71" to "AA-178 " 24556 Alfaro's Service Cen ter 660.00 "AA-179" to "AA-1 80" 6332 DHL Worldwide Express 309.09 "AA-181 " 344628 Ksearch Asia Consultin o, In c. 10,5 12.00 "AA-182" to "AA- 183" 507 Oakwood Premier 60,000.00 "AA-184" to "AA-191" 26655 PLOT 143 ,944. 11 "AA- 192" to "AA-204" 39 1655 Ru stan Coffee Corp 136.9 1 "AA-205" 308 1 Red Ribbon Bakeshop, Inc. "AA-206" 5030 Baker Fresh Foods Philippin es 50.00 "AA-207" 3578 Baker Fresh Foods Phili ppines 89 .00 "AA -2 08" 3588 Hun gryTumm y, In c. 168 .73 "AA-209" 424 AIfaros Service Center 45.45 "AA-2 10" 5 11 DHL Worldwide Ex press 83.36 "AA-2 11 " 344628 JS Hech anova Trading Corp. 163.64 "AA-212" 63 PLOT 4, 138.60 "AA-213" 39 1655 Rajah Travel Corporati on 45,432 .50 "AA-214" to "AA-218" 16 1676 RCBC Realty Corp 684.55 "AA-219" to "AA-223" 10775 Sun fresh Laundry and Dry Cleaning Servi ce 432.95 "AA-224" 4559 Lane Moving and Storage 61 ,673.46 "AA-225" 77023 DHL Worldwide Ex press 59.00 "AA-226" 344628 K&A Insurance Broker 1,070 .21 "AA-227" 5462 Rajah Travel Corporati on 4.2 74.10 "AA-228" 16 1676 1.083.00 "AA-229" to "AA-230" Total for the month of January 2006 447 .60 3570 899,476.50 "AA-252" 36 16 Baker Fresh Foods Philippines "AA-253" 37 14 Baker Fresh Foods Philippines 175.00 "AA-254" 37 19 Baker Fresh Foods Philippines 143.64 "AA -255" 378 1 Baker Fresh Foods Philippines 93 .55 "AA-256" 9408 Baker Fresh Foods Philippines 44.57 "AA -257" 2421 Pi zza Hut 109.7 1 "AA-2 58" 24298 Wendy's Phillipines 86 . 12 "AA-259" 127 Broburg, Inc. 30.6 1 "AA-260" 8546 Chow king Food Co rporati on 60.00 "AA-26 1" 3 19 Eduardo's Auto Electi ca l Shop 9600 "AA -262" 7 11 3 Eduardo's Auto Electi cal Shop 152.27 "AA-263" 46 1 Eduardo's Auto Electi cal Shop 181.82 "AA-264" 7727 1-iunq,ryTummy, Inc. 150.00 "AA-265" 135 Kitaro Sushi 26 136 "AA-266" 139 Mary Grace Foods, In c. 16.45 "AA-267" 2 114 Mary Grace Foods, In c. 68.55 "AA-268" 3428 Alfaro's Service Center 52.50 "AA-269" 350 1 Alfaro's Service Center 163.64 "AA-270" 85 13 Alfaro's Servi ce Center 192.86 "AA -27 1" 35 11 Alfaro's Service Center 192.86 "AA-2 72" 3454 Starbucks Coffe e 203.57 "AA-273" 3348 Starb ucks Co ffee 87.27 "AA-274 " 11 92 Green Tomato, Inc. 54.55 "AA -275" 14690 Macs hop Distribut ion Co.. In c. 394.82 "AA-276" to "AA-281 " 2 1369 Searchers and Staffers Corp. 192 .86 "AA-282" to "AA-284" 500 Searchers and Staffe rs Corp. 7.502.6 1 "AA-286" 10575 Exec utive Training In stitute of the Philippines 4,707 85 "AA-287" 156645 Acc uprint In co rporated 5,357. 14 "AA-288" 11896 Makati Sports Club, Inc. 18,062.68 "AA -289" 15940 Business Staffin g and Management, In c. 6,540.00 "AA -290" 232256 Guard All Electroni c Security System s, In c. 2,497 .89 "AA-29 1" 253 43 lnn ove Communi cations 204.5 5 "AA-292" to "AA-294" 16225 1 Oakwood Premier 20,815 .06 "AA-295" 16240 1 Raj ah Travel Corporati on 45 ,55 4.04 "AA-296" 1625 08 Rajah Travel Corporati on 109 .56 "AA -297" to "AA-299" 26295 Rajah Travel Corporati on 50.00 "AA -300" Vo lvo Vikings Car, In c. 336.00 7.066.70 - . ...

DECISION CTA EB CASE NO. 9-!0 (CT A Case Nos. 7776 and 7813) 4487 Executive International Movers 400.00 "AA -30 1" 1775 Network Solutions and Interfaces Corp. 2,385.66 "AA-302" 24777 Facilities Managers, In c. 50,744. 15 "AA-303" to "AA-305" 86573 Facilities Managers, In c. I ,800.00 "AA-306" 5 14 Ksearch Asia Consultin o. In c. 63.000 00 "AA-307" to "AA-3 13" 1681 Institutional Synergy. Inc. 2. 10 0 0 0 "AA -314" 1828 Traini ng Institute for Managerial Exce ll ence. Inc. 12,000 00 "AA -3 15" 1829 Tra inin g Institute for Managerial Exce ll ence, Inc. 12,000.00 "AA-3 16" 3177 1 Fuji Xerox Philippines, In c. 17, 172. 11 "AA-317" to "AA-328" 26824 Microdata Systems and Management "AA -330" 6365 Jollibee Foods Corp 133.93 "AA-33 1" 9609 Go lden Arches Development Corp. 127 .29 "AA-332" 298978 Go lden Plate Restaurant Corporati on 77.79 "AA-333" 6391 Jollibee Foods Corp 150.00 "AA-334" 5308 Go lden Arches Development Corp. 233.36 "AA-335" 11 026 RCBC Realty Corp 86.63 "AA-336" to "AA-337" 11 027 RCBC Realty Corp 42, 107.3 1 "AA-338" 11 895 Business Staffin g and Manaoeme nt, Inc. 210 ,406.80 "AA-339" 16085 North Park Nood le House 3,347 .97 "AA -340" 5358 Colliers Internati onal 4 1. 82 "AA-34 1" 234 17 Good Deal Food Corporati on 37.50 "AA -342" II 14 Lanting Security and Watchman Age ncy 156 .96 "AA -343" 2707 Global Busin ess Support Services, In c. 26,956.36 "AA-344" to "AA-353" 1993502 Globe Te lecom 8,237.88 "AA-354" 14144 78 Mandarin Oriental Manila 166.60 "AA-3 55" 20186 Kent International Trading Co., Inc. 4,437.24 "AA-356" 1632 EDS Electroni c Data Systems (Phil s), In c. 694. 18 "AA-357" to "AA-358" 11 734 Suppl y Oilfield Services, In c. 224 ,033.92 "AA-359" 4548/4547 Sun fresh Laundry and Dry Cleanin o Serv ice 3,000.00 "AA -360" 3129/8545 Eduardo's Auto Electi cal Shop 59 09 "AA-36 1" 5108 Flowertowne. Inc. 361 .36 "AA -362" 3845 /3867 Olympu s Foods, Inc. 113 .64 "AA -363" 4582 /4 593 Sun fresh Laundry and Dry Cleaning Servi ce 194 .00 "AA -364" 7257 Philippine Pi zza Co rp . 52.95 "AA-365" 3460 /3 467 Rustan Coffee Corp 305.80 "AA-367" 298362 Go lden Plate Restaurant Corporation 135.54 "AA-368" 7282 Clexpert Philippines, Inc. 195.45 "AA-369" 881 /882/885 Mexicali Food Corp. 68. 18 "AA-370" 325/326 Pancake House, Inc. 11 0.74 "AA-371" 345 2 Rustan Coffee Corp 198.45 "AA-372" 4904/4925 Sun fresh Laundry and Dry Cleanin g Service 60.0 1 "AA-373" 298978 Go lden Plate Restaurant Corporati on 48 .10 "AA-374" 4643 /4602 Sun fresh Laundry and Dry Cleanin g Service I SO 00 "AA -375" 84.40 "AA -377" 2 114/85 13 Alfaro's Service Cen ter "AA-378" 22 The Coffee Bean and Tea Leaf Phi is.. Inc . 396.43 "AA-379" 76 Gary Fabricante 155.27 "AA -380" CP Treas ure of the Orient, In c. 882.00 "AA-38 1" 4685 Go lden Plate Restaurant Corporati on I ,980.00 "AA-382" 297874 Busin ess One owned and operated by Busi ness One, In c. 19.00 54822 168. 18 "AA-418" Total for the month of February 2006 813,782.71 "AA-4 19" 3644 Phi lamcare Hea lth Systems, In c. 285.65 "AA-420" to "AA-426" "AA-427" to "AA-429" 3643 Phi lamcare Health Systems, In c. 2, 17 1. 52 39 1654 PLOT 12,32 1. 06 "AA -4 30" Lanting Sec uri ty and Watchman Age ncy 29,924.99 "AA -4 3 1" 11 20 "AA -432" to "AA-435" 54474 Intercontinental Manila 248 .76 "AA-436" to "AA-439" 3,594 .64 "AA-440" 152 Fiat Training and Co nsultancy 42,873.44 "AA-44 1" 253352 Oakwood Premier 14,226.39 "AA-442" 25379 Oakwood Premier 41 , I00.00 "AA-443" EDS Electroni c Data Systems (Phil s), In c. "AA-444" 1637 Edu ardo's Auto Electical Shop 182. 14 "AA-445 " 9006 Guard All Electron ic Security Systems, Inc. 13.64 "AA -44 6" 16161 Guard All Electronic Security Systems, Inc. 343.63 "AA-44 7" 16162 153 ,263 . 16 "AA-448" Eduard o J. Soriano 3,000.00 "AA-449" 2 Gary Fabri cante 208 .93 "AA -4 50" 78 7th Note 2 14.29 "AA-45 1" ISIS Alfaro's Service Center 192 .86 "AA-452" 5048 AIfa ro's Service Center 151. 80 "AA-453" 5570 Bacchus Catering Corp. 150.86 "AA-454" 33024 Baker Fresh Foods Philippines 3,375.72 "AA-455" 3844 Business Staffin g and Management, Inc. 3,327.98 "AA-456" 120 10 Cornersteel Systems Corp. 3,32 1.43 "AA-457" to "AA-458" 1849 1 Chri s Limchoc Constru cti on 2,5 18.74 3606 DI-lL Worldwide Ex press 65.40 ~ 626582 DI-lL Worldwide Express 4,07 1.43 627006 Divino Amor Realty, In c. 4,229.4 7 161 3 DMJ Multi Print and Services 185

DECISION CT A EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Page 29 of40 2484 1 Faci lities Manaoers, In c. 36,371.73 "AA-459" to "AA-462" 17,757.82 "AA-463" to "AA-465" 26438 Fu ji Xerox Philippines, In c. 53.04 "AA -4 66" 10015 Go lden Arches Development Corp. 202 .71 I0062/ I0063 Go lden Arches Deve lopment Corp. "AA-467" II 0064 I 11.43 3,888 .83 602 HungryTummy, In c. I0,73106 "AA-468" 794.64 "AA-469" 190674 IBM Philippines, Inc. 5,345.67 "AA-470" to "AA-479" 5,250.00 "AA-480" to "AA-482" 2743 Global Business Support Services, Inc. "AA-483" 11.79 "AA-484" 352842 Integrated Computer Systems, Inc. 98 .57 "AA-485" 36 ,000 .00 "AA-486" 12564 Kayalayaan Enoineering Company, In c. 45 ,000.00 "AA-487" to "AA-490" 1,706 .79 "AA-49 1" to "AA-495" 12475 Kaya layaan Enoin eering Company, In c. 825.00 "AA -496" 700.00 "AA-497" 7036 Kita ro Foods Corporation 127 .26 "AA-498" 44.06 "AA-499" 7 102 Kitaro Foods Corporation 5,30141 "AA-500" "AA-50 I" to "AA-502" 517 Ksea rch Asia Cons ult ing, Inc. 98.30 525 Ksearch Asia Consu lt ing, Inc. 29.46 83 17 Lane Archive Technologies 9 1.39 1809 Master Au tomated Systems, In c. 87.05 137.14 1795 Master Automated Systems, In c. I,07 1.43 155.04 91 1/913 Mexicali Food Corp. 12.000.00 I ,053.48 899 Mexical i Food Corp. 2,759 .68 2.31530 313 Modern Primitive Business 8,373 .95 62838 4 769 /4770 / Sun fresh Laund ry and Dry Cleani ng Service 3,443.42 "AA -503" 4789 I,536 .00 1,8 19.00 4746 Sun fresh Laundry and Dry Cleanin g Service 3,000 .00 "AA-504" 2,500.00 4825 /4827 / Sun fresh Laundry and Dry Cleaning Serv ice 40 .7 1 ; 4826 150.00 I,247 .71 "AA-505" 470 1 Su nfresh Laundry and Dry Cleanin g Service 750 .00 6,321.43 i 248 .76 23 ,643.22 "AA-506" 107.04 16 17 Yell ow Cab Food Co rporation 48.43 "AA-507" 2 14.29 600 X Opti ons, Inc. 155 .57 "AA-508" 173 .57 I 13-0096926 Wholesome Food. In c. - KFC People Support 192 .86 "AA-509" 68 .57 1835 Time, In c. 4 12,570 .52 "AA-5 10" 982,731.44 2431 Servcom , Inc. "AA-5 11 " 19398 Searchers and Staffers Corp. "AA-512" to "AA-5 13" 19397 Searchers and Staffers Corp. "AA-514" to "AA-5 15" 207 ROT .IR Associates, In c. "AA-516" to "AA-5 18" 162760 Rajah Trave l Corporation "AA-519" to "AA-523" 162602 Rajah Travel Corporatio n "AA-524" to "AA-548" 86575 Punongbayan and Araul o "AA-549" 86574 Punongbayan and Arau lo "AA -550" 3990 Ponce Emi le Reyes and Manalastas "AA -551" 3989 Ponce Emi le Reyes and Manalastas "AA-552" 804 17 Quick Food In co rporated "AA-553" 31393 Personal and Comp uter Spec ialists, In c. "AA-554" 36301 Next Mobile, In c. "AA-555" to "AA-568" . 1017 Newport Learnino Center, Inc. "AA-569" 1009 Newport Learnino Center, Inc. "AA-570" I' 54475 Intercont in ental Manila "AA -571" 11 25 Lantino Security and Watchman Agency "AA-572" to "AA-573" 164 Mary Grace Foods, In c. "AA-574" 198 Mary Grace Foods, In c. "AA-575" 469 Toyota Makati , Inc. "AA-576" I 11044 Roasters Phil s., In c. "AA -577" 1900/1855 Rustan Coffee Corp "AA-580" 8004 Alfaro's Serv ice Center "AA -581" 3887 Baker Fresh Foods Philippines "AA-582" 180 Headstrono Philippines. In c. "AA-583" to "AA-584" Total for the month of March 2006 Total for the First Quarter of CY 2006 I 2,695,990.65 I "A1111ex"B." INPUT VAT ON DOMESTIC PURCHASE OF SERVICES SUPPORTED BY VAT OFFICIAL RECEIPTS BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE NIRC OF 1997, AS AMENDED FOR THE SECOND QUARTER OF CY 2006 Official Receipt No. Supplier Input Tax Exhibit -4,506.92 ' 989 30 Networks "AA-604" to "AA-605" 7851 Alfaro's Se rvice Center 171.43 "AA-606" 8861 Alfaro's Service Center 192.86 "AA-607" 3998 Baker Fresh Foods Philippines 175.71 "AA-608" 7004/ 6867 Bo11Zer Foods Corporation 253.39 "AA-609" 758/ 759 Bud s and Lilies Flower Kingdom 360.00 "AA-610" 12021 Business Staffing and Management, Inc. 2,735.02 "AA-614" 11915 Business Staffing and Management, Inc. 3,395.55 "AA-615" 12033 Business Staffing and Management, Inc. 4,891.44 "AA-616" to "AA-617" 5493 Colliers International 49.07 "AA-618" 5623 Colliers International 75.00 "AA-619" ( ---

DECISION CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) 5949 Colliers International 21.43 "AA-620" 626884A DHL Worldwide Express 487.06 "AA-621" to "AA-622" MKT644634 DHL Worldwide Express 22,931.98 "AA-623" to "AA-637" 1947/1948 Eagle Point 535.71 EDS Elecb�otuc Data Systems (Phils), Inc. 204,847.45 "AA-638" 1636 EDS Electrmuc Data Systems (Phils), Inc. 247,352.44 "AA-639" 1644 EDS Elecb�o11.ic Data Systems (Phils), Inc. 7,698.44 "AA-640" to "AA-641" 1645 Eduardo's Auto Electical Shop 214.29 "AA-642" 1105 Eduardo's Auto Electical Shop 203.57 "AA-643" 993 Executive International Movers 931.20 "AA-644" 4567 FoodFirst Food Services, Inc. 171 .43 "AA-645" 1060 Facilities Managers, Inc. 19,969.14 "AA-646" 25143 Facilities Managers, Inc. 44,782.20 "AA-647" to "AA-649" 25463 Fiat Trai11.ing and Consultancy 3,594.64 "AA-650" to "AA-652" 154 Fiat Trai11.ing and Consultancy 13,258.93 "AA-653" 155 Fuji Xerox Philippines, Inc. 44,126.43 "AA-654" 34323 Cary Fabricante 3,592.64 "AA-655" to "AA-663" CaryFabricante 3,623.53 "AA-664" 79 Global Business Support Services, Inc. 1,907.85 "AA-665" 80 Global Business Support Services, Inc. 23,137.21 "AA-666" to "AA-674" 2870 Global Business Support Services, Inc. 12,620.14 "AA-675" to "AA-683" 2880 Global Business Support Services, Inc. 2,203.03 "AA-684" to "AA-689" 2895 Colden Arches Development Corp. 53 .04 "AA-690" to "AA-693" 2894 Colden Arches Development Corp. "AA-694" 11018 Infinite Power Systems, Inc. 82.50 In tegrated Computer Systems, Inc. 8,717.73 "AA-695" 11015 jet Circuit Auto Center 1,200.00 "AA-696" 4359 Ksearch Asia Consulting, Inc. "AA-697" 354450 Lane Archive Technologies 30 .00 "AA-699" 457 Lanting Security and Watchman Agency 27,000.00 "AA-700" to "AA-702" 529 Lanting Security and Watchman Agency "AA-703" 8316 Lanting Security and Watchman Agency 660.29 "AA-703" to "AA-705" 1134 M & H Food Corp. "AA-706" to "AA-707" 1144 Mary Crace Foods, Inc. 27,267.32 "AA-708" 1148 Mandarin Oriental Ma11.ila 29,485.72 "AA-710" 1353 Mandarin Oriental Manila 25,707.86 "AA-711" 227 MCE UPS Systems Philippines, Inc. "AA-712" 1420759 NS Ocana, Inc. 82.50 "AA-713" 1420758 Olivers Super Sandwiches Phils, Inc. 113.14 "AA-714" to "AA-715" 6583 Personal and Computer Specialists, Inc. 784.23 "AA-716" 68627 Red Ribbon Bakeshop, Inc. 4,732.91 "AA-717" 16968 Network Solutions and Interfaces Corp. 2,455.74 "AA-718" 31501 New World Renaissance Hotel 100.61 "AA-719" 6356 New World Renaissance Hotel 112.50 "AA-720" to "AA-721" 1779 Next Mobile, Inc. 1,767.86 "AA-722" to "AA-723" 73683 Next Mobile, Inc. "AA-724" 73794 Ksearch Asia Consulting, Inc. 70.71 "AA-726" to "AA-732" 36302 YFS Foods Service, Inc. 506.81 "AA-733" to "AA-739" 36303 Oakwood Pren1.ier 5,861.78 "AA-740" 532 Oakwood Prenuer 496.53 "AA-741" 8160 PLOT 687.26 "AA-742" 25388 Punongbayan and ArauJo 687.26 "AA-743" to "AA-744" 25394 Rajah Travel Corpo ration 9,000.00 "AA-745" to "AA-750" 448736 Rajah Travel Corporation 196.56 "AA-753" 87301 Rajah Travel Corporation 3,307.52 "A A-754" to "AA-765" 163051 Rajah Travel Corporation 4,972.91 "AA-766" to "AA-775" 163178 Rajah Travel Corporation 952.32 "AA-776" 163303 RCBC Realty Corp 1,907.70 "AA-777" to "AA-789" 163410 RCBC Realty Corp 1,3 23 .09 Seven Sierra Food Corporation 1,407.78 "AA-790" to "AA-798" 163805 Searchers and Staffers Corp. 129.98 "AA-799" to "AA-800" 11552 SGV Development Dimensions 2,131.68 11607 Sunfresh Laundry and Dry Cleaning Service "AA-801" 6360 1,194.54 "AA-802" 19396 Sunfresh La undry and Dry Cleaning Service 649,982.56 "AA-803" to "AA-805" 9319 Sunfresh Law1dry and Dry Cleaning Service "AA-806" 4882/ 4883 Sunfresh Laundry and Dry Cleaning Service 4,597.27 "AA-807" 4893/ 4894/ 115.71 -t895 Sunfresh Laundry and Dry Clea11.ing Service 4897/ 4898 5,238.23 4851/4852 Sunfresh Laundry and Dry Cleaning Service 1,917.86 4853/4863/ Viking Cars, Inc. 4881 96 .67 4886/4887/ - 4889 115.77 "AA-808" 27343 87.86 "AA-809" 85 .49 "AA-810" 110.70 "AA-811" 103.92 "AA-812" v 330.48 "AA-813"

D ECISION CIA EB CASE NO. 940 (CTA Case Nos. 7776 an d 7813) 4743 White Beach N ipa H u t Bar an d Res t 146 .25 "AA-814" 3,750.00 "AA-815" 602 X O ption s, Inc. "AA-816" 362.65 "AA-819" to "AA-820" 8316 Lan e Archi ve Techno logies 350,741 .73 "AA-821" to "AA-822" "AA-823" to "AA-824" 201 Head sh�on g Philippines, Inc. 36,599.25 "AA-825" to "AA-826" 208,043.14 "AA-827" to "AA-830" 204 Heads h�on g Philippines, Inc. 18,000.00 36,000.00 "AA-875" to "AA-876" 214 Headstron g Phi lippines, Inc. 2,156,631.05 "AA-877" to "AA-878" "AA-879" to "AA-880" 1843 Time, Inc. 808,534.32 "AA-882" to "AA-888" 5,757.10 "AA-889" to "AA-891" 532 Ksearch Asia Consu lting, Inc. 22,309.41 "AA-892" to "AA-899" Total for the month of April 2006 19,157.11 "AA-894" 1,356.20 "AA-895" 11 670 RCBC Rea lty Corp 1,353.51 "AA-896" to "AA-905" r 12049 Bu siness Sta ffing an d Man agem ent, Inc. 2,520.00 "AA-906" to "AA-912" 25740 Facilities Managers, Inc. 5,345 .67 "AA-913" to "AA-931" 3025 Global Business Support Services, Inc. "AA-932" to "AA-933" 3104 Global Bu siness Support Services, Inc. 90,000 .00 "AA-934" 2000231 G lobe Telecom 63,000.00 "AA-935" to "AA-936" 19994 Insti tu tiona! Syn ergy, Inc. 171,000.00 "AA-937" 12642 Ka layaan En gineering Company, Inc. 17,702.43 "AA-938" Ksea rch Asia Con sulting, Inc. "AA-939" 535 Ksearch Asia Consultin g, Inc. 2,635.71 "AA-940" 544 Ksea rch Asia Con sulting, Inc. 31,418.57 "AA-941" to "AA-950" 546 Oakwood Premier "AA-951" to "AA-952" 25409 Lanting Security and Wa tchman Agency 1 07. 1 4 "AA-953" 1552 Lanting Securi ty an d Wa tchman Agency 8,1 85 .71 "AA-954" to "AA-955" 1568 Ma ka ti Sh an gri -La Manila 11 ,052.00 "AA-956" to "AA-957" 134743 Newpo rt Learning Center, Inc. 11 ,061.60 "AA-958" 1081 PLOT 1,164.16 "AA-959" 448735 PLOT 3,426 .22 "AA-960" 448734 Rajah Trave l Corpo ra tion 1,617.88 "AA -96 2" 164083 Searchers and Staffers Corp. 2,832.76 "AA-963" 14791 Sea rche rs an d Staffe rs Corp. 1,910.62 "AA-964" 19617 Searchers and Staffers Corp. 12,600.00 "AA-965" 19616 Servcom , Inc. "AA-966" 2553 Speech power 41. 79 "A A -967" 3086 Red Ribbon Bakeshop, Inc. 144 .84 "AA-968" 493 North Park Noodle House 181.07 "AA-969" 173769 Bon zer Food s Corp ora tion "AA-970" 6810 Wh olesom e Food , Inc. 63.64 "AA-971" 348 Business Sta ffi ng an d Man age ment, Inc. 381 .82 "AA-972" 18049 Brookl y n Pizza Compan y, Inc. "AA-973" 11911 Dom e Ca fe Franchi se Corpo ra ti ion 55.71 "AA-974" 11391 Bon zer Foods Corpora tion 176.88 "AA-975" 7140 Amber's Res tau ra nt and lhaw-lhaw, Inc. 114.91 "AA-978" 1813 Kita ro Foods Corpora tion 103.93 "AA-979" 5857 Lorped Service Center "AA-980" 7327 Eduardo's Auto Elec tical Shop 69.00 "AA-982" 763 Du sit H o tel Nikko 64. 29 "AA-983" 287447 RCBC Realty Corp 192.86 "AA-984" to "AA-988" 10393 joa n Agbayani - Pe tty Cash 353.57 "AA-989" 689709 Joa n Agbayani - Pe tty Cash 1,320.00 "AA-990" 6895 joan Agbayan i - Pe tty Cash 30 .00 "AA-991" 248 Baker Fresh Foods Phili ppines 77. 14 "AA-992" 4270 Golden Arches Deve lopmen t Corp. 77.14 "AA-993" 11973 Bon ze r Food s Corpora tio n 44.57 "AA-994" 6904 Sunfresh La undry an d Dry Cleanin g Serv ice 67.50 "AA-995" 4453/4454 Rajal1 Travel Cor pora tion 74.07 "AA-996" 163804 New World Interna ti onal 11 4 .02 "AA-997" 741 60 DHL Wo rl dwide Express 849.36 "AA-998" 645264 Golden Arches Development Corp. 1 ,1 70.39 "AA-999" 12227 Roxas Food Ventures, Inc. 5,054. 28 "AA-1000" 10867 DHL World w ide Ex press 94.05 "AA -1001" 645264 Globe Telecom 199.50 "AA-1002" to "AA-1006" 236640 Philipp ine Pizza Corp. 3,684.03 "AA-1007" 7622 jobstreet.com Phi lippin es, Inc. 30,309.77 "AA-1008" 15182 Integra ted Com p uter Sys te ms, Inc. 92.65 "AA-1009" to "AA-1011" 356284 3D Networks 720.00 1002 South East As ia Speakers 6,723."17 721 DMJ Multi Pri n t and Services 2,253 .45 198 New Ajar Commercia l 7,140.00 50652 DHL World wide Ex press 1,261.61 6453 29 Intercontinental Manila 310 .71 55733 DHL World wide Express 4,947.71 645329 G lobe Telecom 6,427.05 2000137 63.93 1,136.61

DECISION CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) 163931 Rajah Travel Corporation 315.80 "AA-1012" to "AA-1014" 399 .65 "AA-1015" 18283 Philamcare Health Systems, Inc. 257.60 5,930.36 "AA-1016" to "AA-1019" 645329 DHL Worldwide Express 14,717.14 "AA-1020" 28,431.42 "AA-1021 " 5948 Colliers International 65.40 "AA-1022" to "AA-1023" 9365 SGV Development Dimensions 1,917.86 "AA-1024" 2,052.79 "AA-1025" 1555 Lanting Security and Watchman Agency 126.06 "AA-1026" to "AA-1027" 645329 DHL Worldwide Express 13,525.95 "AA-1029" 9365 SGV Development Dimensions 129.35 "AA-1030" to "AA-1031" 65.40 "AA-1032" 645329 DHL Worldwide Express "AA-1033" 219,720.26 1727 Rajah Travel Corpora tion "AA-1034" to "AA-1035" 932.17 25418 Ascott Makati 127.50 "AA-1036" 62,258.36 "AA-1037" 1727 Rajah Travel Corporation 1,723,208.21 "AA-1038" 645329 DHL Worldwide Express 1646 EDS Electronic Data Systems (Phils), Inc. 96435 Caravan Travel and Tours 53722 Nex t Door, Inc. 4220 Isla Lipana and Co. Total for the month of May 2006 31148 Viking Cars, Inc. 7,163 .82 "AA-1064" 107.14 "AA-1065" 134714 Makati Shangri-La Manila "AA-1066" 5,345.67 "AA-1067" 12663 Kalayaan Engineering Company, Inc. 6,000.00 "AA-1068" "AA-1069" 1187 RCBC Realty Corp 127.28 "AA-1070" to "AA-1071" 156.49 "AA-1072" to "AA-1075" 164535 Rajah Travel Corporation 600.00 "AA-1076" 7,836.57 "AA-1077" to "AA-1082" 448733 PLOT 11,339.20 "AA-1083" to "AA-1084" 11,416.57 "AA -1085 " 357609 Integrated Computer Systems, Inc. 31,857.86 "AA-1086" 179.40 "AA-1087" 3143 Global Business Support Services, Inc. 107.14 "AA -1090" 7,735.50 "AA-1091 " 786 Infinite Power Systems, Inc. 1,800.00 "AA-1092" to "AA-1094" 20,380.32 "AA-1095" 3217 Global Business Support Services, Inc. 514 .05 "AA-1096" to "AA-1097" 176 .79 "AA-1098" to "AA-1099" 1573 Lanting Security and Watchman Agency 1,990.83 "AA-1100" 3,573.76 "AA-1101" 7380 Kitaro Foods Co rpora ti on 12,600.00 "AA-1102" 135034 Makati Shangri-La Manila 88.79 "AA-1103" "AA-1104" 3173 MMLDC Foundatiion, Inc. 80.63 "AA-1105" 192.86 "AA -1106 " 88019 Punongbayan and Araulo 2,253.45 "AA-1107" 6,177.60 "AA-1108" 88223 Punongbayan and Ara uJ o 4,200.00 "AA-1109" "AA-1110" 164379 Rajah Travel Corporation 80.00 1,435.93 "AA-1111" to "AA-1112" 2299 Restaurant and lhaw-Ihaw, Inc. 6,123.64 "AA-1113" 1,414.29 "AA-1114" 19757 Searchers and Staffers Corp. "AA-1 11 5" 245,766.21 19758 Search ers and Staffers Corp. 208.93 "AA-1116" to "AA-1123" 216 .00 "AA-1114" to "AA-1125" 3087 Speech power 76.93 "AA-1126" to "AA-1139" "AA-1141" to "AA-1142" 4476/4477 Sunfresh Laundry and Dry Cleaning Service 132,953.24 "AA-1143" to "AA-1145" 6,696.43 "AA-1146" to "AA-1149" 4474/4473 Su.nfresh Laundry and Dry Cleaning Service 28,436 .43 1,913.64 "AA-1150" 1605 Alfaro's Service Cen ter 9,767.65 "AA-11 51" 13,817.05 "AA-1152" 1019 30 Networks 4,987.02 "AA-1153" 62.36 "AA-1154" 2530 Asia Select Inco rpora ted 75.86 "AA-1155" 8,581.00 "AA-1157" to "AA-1158" 837615 Bayan Telecommunications, Inc. 15,183.57 "AA-1159" 8,305 .71 "AA-1160" 6172 Colliers Interna tional 47,132.29 "AA-1161" to "AA-1163" 7,500.00 9092 Lane Archive Technologies 432.00 2,978.16 8908 Lane Archive Technologies 688,146.06 291416 Dusit Hotel Nikko 1655 EDS Electronic Data Systems (Phils), Inc. 5569 Eduardo's Auto Electical Shop 4693 Executive Interna tio nal Movers 33 E.Z. Ac tive Lifestyle Corp. 25806 Facilities Managers, Inc. 6405 Filtek Safety Corpora tion 37901 Fuji Xerox Philippines, Inc. 663547 DHL Worldwide Express 662254 DHL World wide Express 662505 DHL Worldwide Express 39016 Fuji Xerox Philippines, Inc. 356 Wholesome Foods, Inc. 18754 Brooklyn Pizza Company, Inc. 9092 Lane Archive Technologies 25806 Facilities M<magers, Inc. 31826 Personal and Comp uter Specialists, Inc. 237763 Innove Communica tions 1231 Hizons Restaurant and Catering Services, Inc. 57 Buan and Temprosa Law Offices r 31148 Viking Cars, Inc. Total for the month of June 2006

DECISION CT A EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) Page 33 o f 40 Total for the Second Quarter o f CY 2006 4,567,985.32 "' A1111e.r "C." INPUT VAT ON DOM ESTIC PU RCHASE OF SERVICES SUPPORTED BY VAT OFFICIAL RECEIPTS BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE NIRC OF 1997, AS AMENDED FOR THE THIRD Q UARTER OF CY 2006 Official Receipt No. Supplier Input Tax Exhibit 25964 Facilities Managers, Inc. 45,634.83 "AA-1203" to "AA-1204" 7261 Bon zer Foods Corpora tion 74.13 "AA-1205" 4481/4483 Sunfres h Laundry an d Dry Cleaning Service 92.20 "AA-1206" 4485 / 4486/ -+488 / 4489 Sunfresh Laundry and Dry Cleaning Service 187.69 "AA-1207" 5428/5429 Su n fresh Laundry and Dry Cleaning Service 77.76 "AA-1208" 20039 Ed uardo's Auto Electical Shop 21-+.29 "AA-1209" 13384 Golden Arches Developm ent Corp. 85 .21 "AA-1210" 15566/15978/ 15979 Golden Arches Development Corp. 271.08 "AA-1 211 " Kabuki Place Restaurant 67.20 "AA-1212" 111 Baker Fresh Foods Philippines 165.54 "AA-1213" 4511 2346 Hungry Hippo Food s Corp. 204.60 "AA-1215" 6584 MGE UPS Systems Philippines, Inc. 3,383 .60 "AA-1216" 97059 Caravan Travel and Tours 1,371 .88 "AA-1217" 448732 PLDT 10,926.48 "AA -1218" 451881 PLOT "A A-1218" to "AA-1224" 38856 Next Door, Inc. 940 .14 "AA-1225" to "AA-12.'\1" 164766 Ra jah Travel Corpora tion 687.26 "AA-1232" to "AA-1241" 164866 Rajah Travel Corporation 1,437.04 "AA-1242" to "AA-1243" 165007 Rajah Trave l Corpora tion 191.21 "AA-1 245" to "AA-1249" 16511 3 Rajah Trave l Corpora tion 784.55 "AA-1 250" 165384 Rajah Travel Corporation 129.12 "AA-1 251" to "AA-1254" 9217 Lane Archive Teclm ologies 646.35 "AA-1 255" 12951 Kalayaan Engineering Company, Inc. 2,371 .38 "AA-1256" 1824 Ne twork Solutions and Interfaces Corp. 5,345.67 "AA-1257" 135561 Makati Shangri-La Manila 12,833.60 "AA-1258" to "AA-1260" 321.42 135572 Makah Shangri-La Manila -+,177.21 "AA-1261" to "AA-1 263" 135551 Ma kati Shangri-La Manil a 1,348.93 "AA-1264" to "AA-1266" Renaissance Maka ti City Hotel 394 New H o rizons Learning Center 1,618.32 "AA-1267" 1207 New H ori zo ns Learning Center 1,435.71 1168 New Horizons Leaming Center "AA-1 268" to "AA-1269" 11 76 Ponce Enril e Reyes and Manalastas 803.57 4825 SGV Development Dimensions 900.00 "AA-1270" I 9429 SGV Developmen t Dimen sions 9364 Global Bu siness Suppor t Services, Inc. "AA-1271" 341 5 Global Business Support Services, Inc. 3604 Globe Telecom 3,000.00 "AA-1 273" 1997471 Globe Telecom 2014781 Globe Teleco m 45,971.78 "AA-1274" to "AA-1 278" 2015051 Glo be Telecom 2014970 hu1ove Communications 10,314.11 "AA-1279" 240416 Searchers and Staffers Corp. 6,173.96 "AA-1 280" to "AA-1 281" 22405 Mar tin ez Flores San Pedro & Lean o Law O ffices 3031 Lanti n g Security and Wa tchman Agency 3,685.57 "AA-1282" to "AA-1283" 1584 Lanting Security and Wa tchman Agency 1590 Ksea rch Asia Cons ul ting, Inc. 909.96 "AA-1284" to "AA-1288" 557 Buan and Temprosa Law Offices Buan and Temprosa Law Offices 385.72 "AA-1289" to "AA-1290" 82 3D Networks 80 3D Networks 1,509.68 "AA-1291" to "AA-1294" 1038 Mas ter Automa ted System s, Inc. 1044 Emerson Network Power 375 .02 "AA-1295" 1826 RC BC Rea lty Corp 21,961.32 "AA-1296" 43778 Toyota Makah, Inc. 7,402.49 "AA-1297" to "AA-1303" 12033 Toyota Maka ti , Inc. 17231 EDS Electronic Da ta Systems (Phils), Inc. 12,045.00 "AA-1304" to "AA-1306" 18995 Pu.non gbayan and Ara ulo 1658 Pu.non gbayan and ArauJo 66,605.82 "AA-1307" to "AA-1310" 88756 Punon gbayan and Ara uJo 31,155 .00 "AA-1311 " 88640 DH L Wor ldwide Ex press 81,000.00 88893 "AA-1312" to "AA-1 320" 697078 DHL Worldwide Express DHL Wo rl dwid e Express 864.00 "AA-1321" to "AA-1 322" 697297 432.00 "AA -1 323" 697525 2,253.45 "AA-1324" 2,253.45 "AA-1325" 825.00 "AA-1326" 7,732.32 "AA-1327" 3,475.71 "AA-1328" 939.39 "AA-1329" to "AA-1330" 4,682.67 "AA-1331" 231,645.30 "AA-1 333" to "AA-1334" 1,928.57 "AA-1335" 642.86 "AA-1336" 1,800.00 "AA-1337" 5,470.65 "AA -1338" 4,384.06 "AA -1339" to "AA-1347" rv 65.40 "AA -1348 "

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Page 33 of40 Total for the Second Quarter of CY 2006 4,567,985.32 '"Annex "C." INPUT VAT ON DOMESTIC PURCHASE OF SERVICES SUPPORTED BY VAT OFFICIAL RECEIPTS BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLt~'fiON OF SECTION 113(B)(2)(a) OF THE N IRC OF 1997, AS - AMENDED FOR THE THIRD QUARTER OF CY 2006 Official Receipt No. Supplier Input Tax Exh ibit 25964 Facilities Managers, Inc. 45,634.83 "AA-1203" to "AA-1204" 7261 Bonzer Foods Corporation 74 .13 "AA-1205" 4481/4483 Sw1fresh Laundry and Dry Cleaning Service 92.20 "AA-1206" 4485/4486/ 4488/4489 Sunfresh Laundry and Dry Cleaning Service 187.69 "AA-1207" 5428/5429 Sunfresh Laundry and Dry Cleaning Service 77.76 "AA-1208" 20039 Eduardo's Auto Electical Shop 214.29 "AA-1209" 13384 Golden Arches Development Corp. 85 .21 "AA-1210" 15566/15978/ 15979 Golden Arches Development Corp. 271.08 "AA-1211" 111 Kabuki Place Restaurant 67.20 "AA-1212" 4511 Baker Fresh Foods Philippines 165.54 "AA-1213" 2346 Hw1gry Hippo Foods Corp. 204 .60 "AA-1215" 6584 MGE UPS Systems Philippines, Inc. 3,383.60 "AA-1216" 97059 Caravan Travel and Tours 1,371.88 "AA-1217" 448732 PLOT 10,926.48 "AA-1218" 451881 PLOT 940.14 "AA-1218" to "AA-1224" 38856 Next Door, Inc. 687.26 "AA-1225" to "AA-1231" 164766 Rajah Travel Corporation 1,437.04 "AA-1232" to "AA-1241" 164866 Rajah Travel Corporation 191.21 "AA-1242" to "AA-1243" 165007 Rajah Travel Corporation 784.55 "AA-1245" to "AA-1249" 165113 Rajah Travel Corporation 129.12 "AA-1250" 165384 Rajah Travel Corporation 646.35 "AA-1251" to "AA-1254" 9217 Lane Archive Technologies 2,371.38 "AA-1255" 12951 Kalayaan Engineering Company, Inc. 5,345.67 "AA-1256" 1824 Network Solutions and Interfaces Corp. 12,833.60 "AA-1257" 135561 Makati Shangri-La Manila 321 .42 "AA-1258" to "AA-1260" 135572 Makati Shangri-La Manila 4,177.21 "AA-1261" to "AA-1263" 135551 Makati Shangri-La Manila 1,348.93 "AA-1264" to "AA-1266" Renaissance Makati City Hotel 1,618.32 394 New Horizons Learning Center 1,435.71 "AA-1267" 1207 New Horizons Learning Center "AA-1268" to "AA-1269" 1168 New Horizons Learning Center 803.57 1176 Ponce Emile Reyes and Manalastas 900.00 "AA-1270" 4825 SGV Development Dimensions 3,000 .00 "AA-1271" 9429 SGV Development Dimensions 45,971.78 "AA-1273" 9364 Global Business Support Services, Inc. 10,314.11 "AA-1274" to "AA-1278" 3415 Global Business Support Services, Inc. 6,173.96 "AA-1279" 3604 Globe Telecom 3,685.57 "AA-1280" to "AA-1281" 1997471 Globe Telecom 909.96 "AA-1282" to "AA-1283" 2014781 Globe Telecom 385.72 "AA-1284" to "AA-1288" 2015051 Globe Telecom 1,509.68 "AA-1289" to "AA-1290" 2014970 lnnove Communications 375.02 "AA-1291" to "AA-1294" 240416 Searchers and Staffers Corp. 21,961 .32 "AA-1295" 22405 Martinez Flores San Pedro & Leana Law Offices 7,402.49 "AA-1296" 3031 Lanting Security and Watchman Agency 12,045.00 "AA-1297" to "AA-1303" 1584 Lanting Security and Watchman Agency 66,605.82 "AA-1304" to "AA-1306" 1590 Ksearch Asia Consulting, Inc. 31,155.00 "AA-1307" to "AA-1310" 557 Buan and Temprosa Law Offices 81,000.00 "AA-1311" Buan and Temprosa Law Offices 864.00 "AA-1312" to "AA-1320" 82 30 Networks 432.00 "AA-1321" to "AA-1322" 80 3D Networks 2,253.45 "AA-1323" 1038 Master Automated Systems, Inc. 2,253.45 "AA-1324" 1044 Emerson Network Power 825.00 "AA-1325" 1826 RCBC Realty Corp 7,732.32 "AA-1326" 43778 Toyota Makati, Inc. 3,475.71 "AA-1327" 12033 Toyota Makati, Inc. 939.39 "AA-1328" 17231 EDS Electronic Data Systems (Phils), Inc. 4,682.67 "AA-1329" to "AA-1330" 18995 Pw1ongbayan and ArauJo 231,645.30 "AA-1331" 1658 Punongbayan and ArauJo 1,928.57 "AA-1333" to "AA-1334" 88756 Punongbayan and ArauJo 642.86 "AA-1335" 88640 DHL Worldwide Express 1,800.00 "AA-1336" 88893 5,470.65 "AA-1337" 697078 DHL Worldwide Express "AA-1338" DHL Worldwide Express 4,384.06 697297 65.40 "AA-1339" to "AA-1347" 697525 "AA-1348"

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) 26353 Facilities Managers, Inc. 44,055.49 "AA-1349" to "AA-1350" 26393 Facilities Managers, Inc. 19,729.66 "AA-1351" 26078 Facilities Managers, Inc. 26,086.52 "AA-1352" 18813 Cornersteel Systems Corp. "AA-1353" Charle Associates 3,922.26 "AA-1354" 14 Executive International Movers 6,000.00 "AA-1355" 4838 Dusit Hotel Nikko A-291415 Training Institute for Managerial Excellence, Inc. 216.00 "AA-1356" to "AA-1357" 1871 1,707.59 "AA-1358" to "AA-1359" 14,400.00 5309 Flowertowne, Inc. "AA-1360" 8657/8658/ 160.71 Neo Source Marketing 8682 RCBC Realty Corp 127.95 "AA-1361" 12068 Globe Telecom 649,982.56 "AA-1362" to "AA-1363" 1997471 Hotel Inter-Continental Manila Global Business Support Services, Inc. 221.71 "AA-1364" 56401 Headstrong Philippines, Inc. 11,504.15 "AA-1365" 3415 Headsh�ong Philippines, Inc. "AA-1366" to "AA-1367" 234 Headstrong Philippines, Inc. 507.15 "AA-1368" to "AA-1369" 237 Headstrong Philippines, Inc. 162,818.25 "AA-1370" 242 Broburg 170,754.65 "AA-1371" 237 EMB Medical Supply and Equipment "AA-1372" 27773 Max's Ermita, Inc. 17,621.78 "AA-1373" 250/252 Global Business Support Services, Inc. 17,252.09 "AA-1374" 5108 DHL Worldwide Express "AA-1375" 3246 Gary Fabricante 116.42 "AA-1376" 681847 Fuji Xerox Philippines, Inc. 78.00 "AA-1377" Gary Fabrica nte "AA-1378" 81 Marido, Inc. 138.24 "AA-1379" 38744 Max's Makati, Inc. 239.68 "AA-1380" Wide Wide World Express Corporation 4,259.32 "AA-1381" 82 Cyo Jyu, Inc. 4,282.35 "AA-1382" 4606 North Park Noodle House 3,272.73 "AA-1383" 52266 Olivers Super Sandwiches Phils, Inc. 2,964.71 "AA-1384" 313277 Philamcare Health Systems, Inc. 101.96 "AA-1385" 9742 Global Business Support Services, Inc. 175.41 "AA-1386" 16600 15.18 "AA-1387" 17964 36.11 "AA-1389" 7379 84.38 3230 69.77 3,922.44 Total for the month of July 2006 4,401.30 1,831,844.75 6758 Fi ltek Safety Corporation 1,674.11 "AA-1445" 9457 Yellow Cab Food Corporation 125.89 1432629 Manila Mandarin Hotel, Inc. "AA-1446" 1432628 Manila Mandarin Hotel, Inc. 3,943.68 4234 Mercer Human Resources Consulting, Inc. 381.22 "AA-1447" 136216 Makati Shangri-La Manila 6,000.00 "AA-1448" 165989 Rajah Travel Corporation 11407 Philamcare Health Systems, Inc. 3,308.51 "AA-1449" 1664 EDS Elech-ortic Data Systems (Phils), Inc. 1,140.03 1669 EDS Electronic Data Systems (Phils), Inc. 5,718.92 "AA-1350" to "AA-1352" Colliers International 202,896.57 6516 Cris Limchoc Construction 9,000 .00 "AA-1353" to "AA-1361" 3655 DHL Worldwide Express 698204 DMJ Multi Print and Services 214.29 "AA-1462" 729 DMj Multi Print and Services 3,377.44 738 DMJ Multi Print and Services 13,774.89 "AA-1463" 739 Alfaro's Service Cen ter 7,565.36 30038/33071 Executive International Movers "AA-1464" 4901 Facilities Managers, Inc. 642.86 26918 Fuji Xerox Philippines, Inc. 154.29 "AA-1465" ! 41057 Fuji Xerox Philippines, Inc. 364.29 42551 Global Business Support Services, Inc. 2,793.60 "AA-1366" to "AA-1367" 3634 Global Business Support Services, Inc. 74,417.05 3618 Global Business Support Services, Inc. 93,212.50 "AA-1368" to "AA-1375" 3756 Global Business Support Services, Inc. 14,264.98 3774 Globe Telecom 3,436.70 "AA-1376" to "AA-1377" 2015387 Globe Telecom 6,336.32 2015594 Globe Telecom 25,033.97 "AA-1478" 2013315 Globe Telecom 10,096.89 2016571 Golden Arches Development Corp. 1,553.57 "AA-1479" 7566/15794 Destiny Cablem, Inc. 600.76 391563 !Jmove Conu11U1l.ications 1,084.09 "AA-1480" 240888 Hizons Restaurant and Catering Services, Inc. 160.71 1313 IBM Philippines, Inc. 419.41 "AA-1384" to "AA-1385" 192714 Integrated Computer Systems, Inc. 1,979.04 360660 21,375.20 "AA-1386" to "AA-1388" 160.71 3,888.83 "AA-1489" to "AA-1530" 5,926.34 "AA-1431" to "AA-1545" "AA-1446" to "AA-1547" "AA-1448" to "AA-1551" "AA-1452" to "AA-1564" "AA-1465" to "AA-1570" "AA-1471" to "AA-1586" "AA-1487" to "AA-1588" "AA-1489" to "AA-1592" "AA-1493" to "AA-1595" "AA-1596" "AA-1597" to "AA-1599" "AA-1600" "AA-1602" I "AA-1603" "AA-1604"

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Page 35 of40 360477 Integrated Computer Systems, Inc. 2,991.20 "AA-1605" 720.00 "AA-1606" 18067 Jobstreet. com Philippines, Inc. "AA-1607" 5,345.67 "AA-1608" to "AA-1614" 12844 Kayalayaan Engineering Company, Inc. 63,000.00 "AA-1615" to "AA-1629" 135,000.00 "AA-1630" 568 Ksearch Asia Consulting, Inc. 32,297.14 "AA-1631" 31,506.43 569 Ksearch Asia Consulting, Inc. "AA-1633" 1,127.87 "AA-1635" 1598 Lanting Security and Watchman Agency 32.14 "AA-1636" to "AA-1639" "AA-1640" to "AA-1646" 2406 Lanting Security and Watchman Agency 165 .60 "AA-1647" 7,204.63 "AA-1648" to "AA-1653" 6779 MGE UPS Systems Philippines, Inc. 9,899.71 "AA-1654" 10,971 .36 "AA-1655" 1473 New World lntema tional Development Phils., Inc. "AA-1656" 974.70 "AA-1657" to "AA-1670" 22933 North Park Noodle House 3,000.00 "AA-1671" to "AA-1680" 3,728.57 "AA-1681" 25767 Makati Property Ventures, Inc. 1,775.06 "AA-1682" 1,337.42 "AA-1685" to "AA-1688" 25768 Makati Property Ventures, Inc. "AA-1689" to "AA-1690" 463937 PLOT 330.00 "AA-1691" to "AA-1692" 2,640.00 "AA-1693" 463938 PLOT 5,832.49 "AA-1694" 12,000.00 "AA-1695" 4946 Ponce Emile Reyes and Manalastas 14,400.00 "AA-1696" to "AA-1699" 5,357.95 "AA-1700" to "AA-1701 " 89635 Punongbayan and ArauJo 114.11 ' 165848 Rajah Travel Corporation 19.82 262.80 "AA-1702" to "AA-1705" 1 165721 Rajah Travel Corporation 6,528.21 "AA-1706" 6,464.07 "AA-1707" 12312 RCBC Realty Corp 112,612.54 "AA-1708" 17,210.48 "AA-1709" 12224 RCBC Realty Co rp 27.11 "AA-1710" 48.21 "AA-1711" 19970 Searchers and Staffers Corp. 106.71 176.79 1870 Training Institute for Managerial Excellence, Inc. 1,022,231.81 1874 Training Institute for Managerial Excellence, Inc. 33550 Viking Ca rs, Inc. Wholesome Foods, Inc. 355 Yellow Cab Food Corporation 8795 715377 DHL Worldwide Ex press 3833 Alecto General Technology Corp. 712777 DHL Worldwide Express 261 Headsh�ong Philippines, Inc. 252 Headsh�ong Philippines, Inc. 389 Mary Grace Foods, Inc. 596 Max's Kitchen, Inc. 1130 Mexicali Food Corp. 395 Mary Grace Foods, Inc. Total for the month of August 2006 5288 Max's Ermita, Inc. 136.32 "AA-1756" 1,355 .80 "AA-1761" to "AA-1763" 6628 Colliers Interna tional 2,611.28 "AA-1764" to "AA-1777" 713287 DHL Worldwide Express 8,687.95 "AA-1778" to "AA-1780" 36,600.00 713665 DHL Worldwide Express 7,732.32 "AA-1781" 1668 EDS Elech�mlic Data Systems(Phils), Inc. 37,054 .28 "AA-1782" 4520 Emerson Network Power 2,190.25 "AA-1783" to "AA-1802" 43154 Fuji Xerox Philippines, Inc. "AA-1803" to "AA-1813" 2016344 Globe Telecom 24,001.12 10,274.46 "AA-1814" 242398 hmove Communica tions 3,888.83 "AA-1815" 909 lPSllnfiJlite Power Systems, Inc. "AA-1816" 428.57 "AA-1818" 193165 IBM Philippines, Inc. 15,286.67 "AA-1819" to "AA-1820" "AA-1821" 56695 Intercontinental Manila 1,345.22 "AA-1822" 9548 Lane Archive Technologies 34,757.14 "AA-1823" 9608 Lane Archive Technologies "AA-1824" 156.43 "AA-1825" 2413 Lanting Security and Watchman Agency 117.86 "AA-1826" to "AA-1827" 137081 Makati Shangri-La Manila 825.00 "AA-1828" 6,431.40 "AA-1829" 136768 Makati Shangri-La Manila 8,536.55 "AA-1831" to "AA-1837" 1837 Master Au toma ted Systems, Inc. 8,825.78 "AA-1838" to "AA-1840" 474 Modern Prinlitive Business Concepts 876.40 "AA-1841" 12540 Philamcare Health Systems, Inc. 430.40 "AA-1843" to "AA-1844" 12669 Philamcare Health Systems, Inc. 1,917.86 "AA-1845" to "AA-1846" 166258 Rajah Travel Corporation 798.21 "AA-1847" 166028 Rajah Travel Corporation 23,400.00 "AA-1848" 9568 SGV Development Dimensions 18,000.00 "AA-1849" 23620 Toyota Makati, Inc. 4,052.68 "AA-1850" 1877 Trairling Institute for Managerial Excellence, Inc. 8,678.57 "AA-1851 " 1881 Trairling Institute for Managerial Excellence, Inc. 32,094.50 "AA-1852" to "AA-1853" WIL TIF Marketing 2,877.38 38 X Options, Inc. 158,319.31 605 Facilities Manage rs, Inc. 462,688.54 26999 3,316,765.10 713665 DHL Worldwide Ex press 265 Headstrong Philippines, Inc. Total for the month of September 2006 I Total for the Third Quarter of CY 2006

DECISION CTA EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) "A1111ex"D ." INPUT VAT ON DOMESTIC PURCHASE OF SERVICES SUPPORTED BY VAT OFFICIAL RECEIPTS BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE NIRC OF 1997, AS AMENDED FOR THE FOURTH QUARTER OF CY 2006 Official Receipt No. Supplier Input Tax Exhibit 3715 Ra jah Travel Corpo ration 123.12 "AA-1886" 910 Asian Relocation Man agement, Inc. 4,320.00 "AA-1888" 16866 Business Process Outso urcin g Internationa l, Inc. 2,832.00 "AA-1892" 434 Calvelo Engineered Systems 1,071.43 "AA-1893" 3666 Cris Limd1oc Cons h�uction 417.86 "AA-1894" 9567 SGV Development Dimensions 16,868.57 "AA-1895" to "AA-1896" 9578 SGV Development Dimensions 22,340.36 "AA-1897" to "AA-1900" 746511 DHL Worldwide Express 6,451.30 "AA-1 901" to "AA-1908" 747169 DHL Worldwide Express 641.79 "AA-1 909" to "AA-1920" 714126 DHL Worldwide Express 3,927.86 "AA-1921" 292696 Dusit Hotel Nikko 45,826.45 "AA-1922" to "AA-1923" 4943 Execu ti ve International Movers 1,458.88 "AA-1924" 27111 Facilities Managers, Inc. 21,280.81 "AA-1925" 26435 Facilities Managers, Inc. 67,715.80 "AA-1926" to "AA-1927" 27273 Facilities Managers, Inc. 52,323.02 "AA-1928" to "AA-1929" 3922 Global Business Support Services, Inc. 14,589.26 "AA-1949" to "AA-1958" 243548 Globe Telecom 23,672.81 "AA-1959" 2019190 Globe Telecom 3,675.41 "AA-1960" to "AA-1973" 2017942 Globe Telecom 2,566.38 "AA-1974" to "AA-1979" 4038 Global Business Support Services, Inc. 27,533.14 "AA-1980" to "AA-1987" 2019370 Globe Telecom 199.29 "AA-1988" 2017976 Globe Telecom 197.81 "AA-1989" 2017375 Globe Telecom 192.86 "AA-1990" 28215 Guthrie-jensen Consultants, Inc. 3,600.00 "AA-1991" to "AA-1992" 2018245 Globe Telecom 24,353.47 "AA-1993" 18088 jobstreet.com Philippines, Inc. 720.00 "AA-1994" 18087 Jobstreet.com Philippines, fnc. 720.00 "AA-1996" 1871 Network Solutions and Interfaces Corp. 4,182.01 "AA-1997" to "AA-1998" 578 Ksearch Asia Consulting, Inc. 162,000.00 "AA-2000" to "AA-2017" 580 Ksearch Asia Consulting, Inc. 6,000.00 "AA-2018" 590 Ksearch Asia Consulting, Inc. 215,013.60 "AA-2019" to "AA-2042" 9868 Lane Archive Technologies 378.00 "AA-2043" 2425 Lanting Security and Watchman Agency 32,560.71 "AA-2044" 2422 Lanting Security and Watchman Agency 32,648.57 "AA-2045" 3358 Lanting Security and Watchman Agency 32,385.00 "AA-2046" 137626 Makati Shangri-La Marilla 1,445.57 "AA-2047" 136759 Makati Shangri-La Manila 312.86 "AA-2048" to "AA-2049" 137523 Makati Shangri-La Marilla 2,166.49 "AA-2050" to "AA-2052" 6923 MGE UPS Systems Philippines, Inc. 1,127.87 "AA-2053" 3808 MMLDC Founda tiion, Inc. 5,004.91 "AA-2054" 1879 Ne twork Solutions and Interfaces Corp. 17,977.84 "AA-2055" to "AA-2059" 1346 New Horizons Learning Center 4,360.71 "AA-2060" 27533 Oakwood Premier 30,396.60 "AA-2061" 27530 Oakwood Prem.ier 100.00 "AA-2062" 27528 Oakwood Premier 136.36 "AA-2063" 27529 Oakwood Prem.ier 2,709.80 "AA-2064" 27532 Oakwood Prem.ier 10,322.89 "AA-2065" 27531 Oakwood Premier 2,945.42 "AA-2066" 27527 Oakwood Prem.ier 36.36 "AA-2067" 406313 PLOT 22,484.16 "AA-2068" to "AA-2069" 5160 Ponce Enrile Reyes and Manalas tas 3,518.40 "AA-2071" to "AA-2072" V0117 Rajah Travel Corporation 751.44 "AA-2073" to "AA-2078" V0538 Rajah Travel Corporation 432.17 "AA-2079" to "AA-2082" V0821 Rajah Travel Corporation 244.58 "AA-2083" to "AA-2084" 3110 Rajah Travel Corpora tion 5,574.60 "AA-2085" to "AA-2129" 12495 RCBC Realty Corp 2,640.00 "AA-2131" 2183 Renaissance Maka ti City Hotel 4,803.73 "AA-2132" 2194 Renaissance Maka ti City Hotel 36,819.69 "AA-2133" 2704 Renaissance Makati City Hotel 7,832.17 "AA-2134" I 14416 Searchers and Staffers Corp. 7,533.60 "AA-2135" to "AA-2138" 21200 Searchers and Staffers Corp. 2,764.38 "AA-2139" to "AA-2140" \. 3100 Speech power 14,280 .00 "AA-2141" 1887 Train.ing Institute for Managerial Excellence, Inc. 9,000 .00 "AA-2142" 1886 Train.ing Institu te for Managerial Excellence, Inc. 18,000.00 "AA-2143" Torr Equipment, Inc. 6,227.76 "AA-2144" 516 Toyota Makati, Inc. "AA-2145" 24799 938 .98

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Page 37 of40 24798 Toyota Makati, Inc. 1,584.41 "AA-2146" 3,600.00 "AA-2147" 174 Training and Consultancy Corp. 409.50 "AA-2148" 219514 Werdenbcrg Internatio nal Co rporation 4,506.90 "AA-2149" to "AA-2150" 5,940.00 "AA-2151" 1081 3D Netwo rks "AA-2152" 58.39 "AA-2153" 16978 Business Process Outsourcing International, Inc. 41.80 "AA-2154" 94.07 "AA-2155" 5250 Baker Fresh Foods Philippines 234.11 "AA-2156" 246.75 "AA-2157" 599 Red Ribbo n Bakeshop, Inc. 137.14 "AA-2158" 273.21 "AA-2159" to "AA-2162" 792 Wholesom e Foods, Inc. 500.80 "AA-2163" 8,269.59 "AA-2164" 2276 Aveneto Pizzeria Ristorante, Inc. 150.00 "AA-2165" 119.74 "AA-2166" 5265 Baker Fresh Foods Philippines 314.57 "AA-2167" 25.93 "AA-2168" 2822 Yell ow Cab Food Corpo ration 822.00 "AA-2169" 129,500.95 "AA-2170" 1069 Max's Kitchen, Inc. 60.00 1,214,566.77 166367 Rajah Travel Co rpo ration 29381 Cra ving5 Bake Shop and Restaurant 4954 Hungry Tummy, Inc. 16407 Golden Arches Development Corp. 2196 Greenwich Pizza Corp. 7854 Golden Ard1es Development Corp. 875472 Baya.n Telecommwucations, Inc. 274 Headsh�ong Philippines, Inc. 3726 Rajah Travel Corporation Total for the month of October 2006 539 Torr Equipment, Inc. 6,227.76 "AA-2231" 10968 Jet Circuit Au to Center 53.57 "AA-2232" 1099 3D Ne twor ks 363484 Integrated Co mputer Systems, Inc. 2,253.45 "AA-2237" 4682 Emerson Network Power 1,800.00 "AA-2238" to "AA-2239" 4730 Emerson Network Power 7,732.32 "AA-2240" 382 JLGT Marke ting 7,732.32 "AA-2241 " 951 Rajah Travel Corporation 1042 Rajah Tra ve l Co rporation 964.29 "AA-2242" 1580 Rajah Travel Corporation 860.93 "AA-2243" to "AA-2249" 1700 Rajah Travel Co rporation 1,306.12 "AA-2250" to "AA-2262" 3030 Josiah 's Ca tering Incorpo rated 1,651.57 "AA-2263" to "AA-2276" 3065 josiah 's Ca tering Incorpo rated 1,228.70 "AA-2277" to "AA-2286" 138206 Makati Shangri-La Manila 11,306.40 "AA-2287" 138796 Makati Shangri-La Manila 11,306.40 "AA-2288" 747607 DHL Worldwide Express 337.50 "AA-2289" to "AA-2290" 747719 DHL Worldwide Express 1,445.57 "AA-2291 " 2020077 Globe Telecom 1,239.78 "AA-2290" to "AA-2299" 2020078 Globe Telecom 3,128.19 "AA-2300" to "AA-2306" 244689 Innove Commw1ications 784.77 "AA-2307" to "AA-2309" 1392 New Hori zons Leanung Center 3,636.90 "AA-2310" to "AA-2319" 7001 Colliers Interna tional 23,425.82 "AA-2320" 7056 Colliers International 12,214.29 "AA-2321 " to "AA-2322" Persona ID Ca rd Enterprises 5,814.00 "AA-2."123" 212 Fuji Xerox Philippines, Inc. 8,276.79 "AA-2324" 46023 Fuji Xerox Philippines, Inc. 7,060.18 "AA-2325" to "AA-2326" 44223 Bayan Telecommw1ications, Inc. 10,061.86 "AA-2327" to "AA-2338" 886513 Business Process Outsourcing International, Inc. 26,045.70 "AA-2339" to "AA-2346" 17532 MGE UPS Systems Philippines, Inc. 822.00 "AA-2349" 6960 MGE UPS Systems Philippines, Inc. 5,952.00 "AA-2350" 6961 Ne twork Solutions and Interfaces Corp. 1,127.87 "AA-2351 " 1882 Trai11ing Institute for Managerial Excellence, Inc. 3,383.60 "AA-2352" 1888 Trai11ing Institute for Managerial Excellence, Inc. 4,246.05 "AA-2353" 1889 Searchers and Staffers Co rp. 61,200.00 "AA-2354" to "AA-2356" 21484 Searchers and Staffers Corp. 10,967.40 "AA-2357" to "AA-2358" 21486 Lane Archive Technologies 2,207.69 "AA-2359" 10871 Lane Archive Teclmologies 2,91 7.27 "AA-2360" to "AA-2361" 11019 Calvelo Engineered Systems 2,106.35 "AA-2362" Infi.tute Power Systems, Inc. 13,027.20 "AA-2363" 435 Visions and Breakthro ughs Interna tional, Inc. 2,738.65 "AA-2364" 947 Lanti.t1g Security and Watchman Agency 18,088.40 "AA-2367" to "AA-2368" 513 Global Business Support Services, Inc. 4,800.00 "AA-2369" 2442 Global Busi.t1ess Suppo rt Services, Inc. 68,284.29 "AA-2370" to "AA-2371" 4143 Ksearch Asia Consulting, Inc. 3,102.94 "AA-2372" 4127 J.S. H echanova Trad ing 9,898.77 "AA-2373" to "AA-2374" 597 3D Networks 99,000.00 "AA-2375" to "AA-2385" 452 Yellow Cab Food Corporation 54,519.00 "AA-2386" 1117 Justine A. Flowe r Shop 2,253.46 "AA-2387" 3021 Hungry Tummy, Inc. 248.04 "AA-2388" 1392 4956 80.36 "AA-2389" 25.39 "AA-2390" (

DECISION CTA EB CASE NO. 940 (CTA Case Nos. 7776 and 7813) Page 38 o�40 6110/6111/ Sunfresh Laundry and Dry Cleaning Service 160.50 "AA-2391" 6035/6032 91.52 "AA-2392" 101 .41 "AA-2393" 6026/5961 Sunfresh Laundry and Dry Clea ning Service 439 .49 "AA-2394" 79.20 "AA-2395 " 6028/6029 Sunfresh Laundry and Dry Clea ning Service 825.00 "AA-2397" 51,760.30 "AA-2398" to "AA-2400" 17034117006 Go ld en Arches Developmen t Corp. 289.80 "AA-2401" 189.28 "AA-2402" 19975 Golden Arches Development Corp. 36.00 "AA-2403" 96.21 "AA-2404" 1851 Master Automa ted Systems, Inc. 48.21 "AA-2405" 2,997,197.59 "AA-2407" 27660 Facilities Managers, Inc. 3,961,421.61 "AA-2408" 114,598.94 "AA-2409" to "AA-2410" 8840 Kitaro Foods Corporation 108,270.84 "AA-2411 " to "AA-2412" 1, 985,809.44 "AA-2413" 8530 Bonzer Foods Corporation 510,024 .72 "AA-2600" to "AA-2603" 10,260,331.97 345 Mary Grace Foods, Inc. 1726 Wholesome Foods, Inc. 9788 Philippine Pi zza Corp. 11778 Accenture, Inc. 11776 Accenture, Inc. 290 Headstrong Phi li ppines, Inc. 292 Headstrong Philippines, Inc. 11777 Accenture, Inc. 1677 EDS Electronic Data Systems (Phils), Inc. Total for the month of November 2006 262 Mary joanne L. Enverga 685.22 "AA-2473" 4,052.46 "AA-2474" 1692 EDS Electronic Data Systems (Phils), Inc. 2,253 .46 "AA-2475" "AA-2479" 1141 3D Networks 102.86 "AA-2480" 5,700.00 "AA-2481" 26219 Brooklyn Pizza Company, Inc. "AA-2486" to "AA-2504" 209.14 "AA-2505" 17884 Business Process O utsourcing International, Inc. 99,355.18 "AA-2506" to "AA-2507" "AA-2508" to "AA-2517" 5967 Baker Fresh Foods Phi li ppines 175,07 "AA-2518" 4,954.56 "AA-2519" 19617 Corporate International Travel & Tours, Inc. 24,867.16 "AA-2520" "AA-2521" 1595A Chowking Food Corporation 36.21 "AA-2522" to "AA-2538" 37,605.32 "AA-2539" 748322 DHL Worldw ide Express 23,704.06 "AA-2541" "AA-2542" 748708 DHL Worldwide Express 392.39 "AA-2543" 7,086.09 "AA-2544" 227 EZ Active Lifestyle Corp. 1,176.00 "AA-2545" 1,985.57 "AA-2546" 27469 Facilities Managers, Inc. 35,635.71 "AA-2547" 245299 Innove Communications 381.22 "AA-2548" 353.57 "AA-2549" 245472 lnnove Communications 80.35 "AA-2550" to "AA-2560" 81.65 "AA-2561" 2022151 G lobe Telecom 459.67 "AA-2562" 1,294.74 "AA-2563" 448 Imperia l Cons ulting, Inc. 204.30 "AA-2564" to "AA-2565" 1,224.67 "AA-2566" 11125 Lane Archive Technologies "AA-2567" 70.98 "AA-2568" 2754 Lanting Secu rity and Wa tchman Agency 85.07 "AA-2569" 101.79 "AA-2570" 1433697 Mandarin Orien tal Manila 3,130.25 "AA-2604" 55.39 "AA-2605" 8029 Golden Arches Development Corp. 7,522.33 "AA-2606" 4,052.68 1486 Max's Kitchen, Inc. 8,678.57 84.11 1457 Max's Restaurant, Inc. 223,951.76 44,400.00 9011/9010 Neo Source Ma rketing Services, Inc. 1,990,786.41 2,536,975.97 27782 Oakwood Premier 2750 Pancake House, Inc. 2116 Rajah Travel Corporation 6253/6252 Sunh'esh Laundry and Dry Cleaning Service 6251/6254 Sunfresh Law1dry and Dry Cleaning Service 6260/6262 Sw1fresh Laundry and Dry Cleaning Service 21555 Searchers and Staffers Co rp. 2313 Tropical Hut Food Market, Inc. 3897 The Peninsula Manila 45 WIL TIF Ma rketing 608 X Options, Inc. 3619 Yellow Cab Food Corporation 1683 EDS Electronic Data Sys tems (Ph ils), Inc. 1687 EDS Elec h�onic Data Sys tems (Phils), Inc. 11777 Accenture, Inc. Total for the month of December 2006 Tota l for the Four th Quarter of CY 2006 14,011,874.71 'A1111e.r "E." INPUT VAT ON DOMESTIC PURCHASE OF SERVICES SUPPORTED BY BILLING STATEMENTS ONLY IN VIOLATION OF SECTION 113(A)(2) OF THE NIRC OF 1997. AS AMENDED FOR THE CALENDAR YEAR 2006 Official Supplier I l Input Tax Exhibit Receipts No. 1 NOVEMBER I RCBC Realty Corp. I I 1,268,377.92 "AA-2234" to "AA-2236" - TOTAL I 1,268,377.92 1 F." \ l AII II CX 11 If

DECISION CTA EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) INPUT VAT ON DOMESTIC PURCHASE OF SERVICES SUPPORTED BY VAT OFFICIAL RECEIPTS BUT INPUT VAT IS LOWER THAN THE AMOU NT PER CLAIM FOR THE CALENDAR YEAR 2006 Official Receipts No. Supplier Input Tax Exhibit Input VAT per claim 14,088.00 Input VAT per Official Receipt 4518 Ponce Emile Reyes and Manalastas Law Offices 3,000.00 "AA-1088" Difference 11,088.00 vu Annex "G." INPUT VAT ON DOMESTIC PURCHASE OF GOODS OTHER THAN CAPITAL GOODS SUPPORTED BY VAT INVOICES BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE NIRC OF 1997, AS AMEND ED FO R THE FIRST QUARTER OF CY 2006 Invoice No. Supplier Input Tax Exhibit JANUARY 15438 Neo Source Marketing 184.55 "AA-232" FEBRUARY 4665 Ace H ardware Philippines, Inc. 261.73 "AA-383" 4866 Ace Hardware Philipp ines, Inc. 173.34 "AA-384" 58873 Skylight Auto Supply 131.82 "AA-385" 319 Th01�tex T rading 163.64 "AA-386" 373 Th or tex Trading 156.43 "AA-387" 2811 9 Hermini o A uto Supply, Inc. 156.82 "AA-388" 233973 Domstadt Auto Supply and Gen Mdse. 200.89 "AA-389" 8226 Good Moral Mechandising 159.09 "AA-417" MARCH 5522/5523 Ace Hardware Philippines, Inc. 223.96 "AA-587" TOTAL 1,812.27 VII i A IIII CX "H." INPUT VAT ON DOMESTIC PURCHASE OF GOODS OTHER THAN CAPITAL GOODS SUPPORTED BY VAT INVOICES BUT THE VAT WAS N OT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE THE NIRC OF 1997. AS AM ENDED FOR THE SECOND QUARTER OF CY 2006 Invoice No. I Supplier 1 Input Tax I Exhibit APRIL I Manang Lumjng's (Burlington) I 38.57 I "AA-870" 17327 17256 I Manang Lunling's (B urlington) I 204.64 1 "AA-871" MAY I Thortex Trading I 83.57 I "AA-1057" 3488 TOTAL 326.78 J l "A nnex" J." INPUT VAT ON DOMESTI C PURCHASE OF GOODS OTHER THAN CAPITAL GOODS SUPPORTED BY VAT INVOICES BUT THE VAT WAS N OT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE THE NIRC OF 1997. AS AM ENDED FOR THE THIRD QUARTER OF CY 2006 Invoice No. I Supplier I Input Tax I Exhibit I JULY T I 44 I Tyco Informa tion Solutions Corp. 2,487.86 1 "AA-1394" AUGUST I Shopwise I I 39.43 "AA -1 712" 103833 SEPTEMBER I Na tional Books tore, Inc. T 45.8o 1 "AA-1881" 291255 TOTAL l 2,573.09 I ' An 11ex "J." INPUT VAT ON DOMESTIC PURCHASE OF GOODS OTHER THAN CAPITAL GOODS SUPPORTED BY VAT INVOICES BUT THE VAT WAS NOT SEPARATELY SHOWN IN VIOLATION OF SECTION 113(B)(2)(a) OF THE THE NIRC OF 1997. AS AMEND ED FOR THE FOURTH QUARTER OF CY 2006 Invoice No. Supplier Input Tax Exhibit OCTOBER Ace Hardware Philippines, Inc. 53.54 "AA-2171" 8336 NOVEMBER CJB Marketin v 203.57 "AA-2415" 1097 Jet Circ ui t Auto Cen ter 182.14 "AA-2468" 10823 Jet Circu it Auto Center 112.50 "AA-2469" 10967 Century Ha rd wa re 201.43 "AA-2470" 886 DECEMBER Jet Circu it Auto Center 92.14 "AA-2593" 11262 The Landmark 222.34 "AA-2597" 1,067.66 6469087 TOTAL " A nnex "K." I

DECISION CTA EB CASE NO. 940 (CT A Case Nos. 7776 and 7813) Page 40 of40 INPUT VAT ON DOMESTIC PU RCHASE OF GOODS SUPPORTED BY VAT INVOICE BUT THERE WAS NO AMOUNT INDI CATED IN VIOLATION OF SECTION 113(B)(2) OF THE NIRC OF1997, AS AMENDED FOR THE CALENDAR YEAR 2006 Invoice No. I Supplier I Input Tax I Exhibit JUNE [ JJ ED Philippines, Inc. I I 6,023.04 "AA-1201 " to "AA-1202" 27383 TOTAL I 6,o23.o4 L