CTA Case No. 5789 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY JARDINE DAVIES TRANSPORT SERVICES, INC., Petitioner, -versus- C.T.A. CASE NO. 5789 COMMISSIONER OF INTERNAL Promulgated: REVENUE, Respondent. x-------- - ------------------------------ ------- -------------x - ,.. DECISION Submitted before Us for decision is a Petition for Review filed on April 14, 1999, seeking for a refund of the amount of P3,097,794.00 representing alleged excess unutilized creditable withholding taxes for taxable years 1 996 and 1997. The antecedent facts of the case giving rise to the controversy at bar are as follows: Petitioner is a corporation organized and existing under and by virtue of the laws of the Philippines. As culled from the records, Petitioner fil ed with the Respondent Bureau of Internal 1 T' I Revenue on April 14, 199.7 its annual income tax return for taxable year ended December , -�_J _ ~ ,-~ ,~~ ,� l, �: :� 31, 1996 (par. 3, Joint Stipulation of Facts and Issues) declaring therein a net loss oi P28,788,207.00 and unutilized creditable taxes withheld in 1996 amounting to P 1,548,527.00. Petitioner, as indicated in its return, op~::d to apply the aforesaid amount as tax credit to whatever tax liability it may incur in the succeeding taxable year 1997. 61.

DECISION- CTA CASE NO. 5789 PAGE2 Incurring a net loss of P43,547,402.00 in the year 1997 as reflected in its 1997 annual income tax return filed on April 15, 1998, Petitioner, allegedly, was not able to utilize its pl'ior yeat's excess tax credit ofP1 ,548,527.00. Oh August 31, 1998, Petitioner amended its 1997 tentative annual income tax return filed on Aprl! 15, 1998, reflecting therein the same refundable amount of PI ,548;527.00 ref>resenting the 1996 excess tax credit but with a lower amount of net loss ofP41,474,106.00 (Exhibit "C';). Seetrtihgly unsatisfied with its first amendment of the 1997 annual income tax return, Petitioner amended again its 1997 return on December 28, 1998, indicating the elf' - f' same amount of net loss of P41,474,106.00 but declaring now a much higher refundable amount ofP3,097,794.00 which latter amount allegedly represents the sum of its 1996 tax credit of P1,548,527.00 and creditable taxes withheld during taxable year 1997 amounting to Pl,549,267.00 (Exhibit "D"). . ' On March 15, 1999, believing , t~~t ~t }1as an overpaid income tax, Petitioner, through counsel, filed with the Appellflte DiviSion of the Bureau of Internal Revemie a claim for refund of overpaid incom(! tax as of December 31, 1997 amounting to P3 ,097,794.00 (Exhibit "E"). Unable to obtain an affirmative response from the Respondent, Petitioner elevated its grievance to this Court ?n April 14, 1999 to toll the running of the prescriptive period provided under Section 230 (now Section 229) of the Tax Code. In an Answer filed on June 14, 1999, Res~ondent denied Petitioner's assertions and by way of Special and Affirmative Defenses, interposed the following: r 62

DECISION- CTA CASE NO. 5789 PAGE3 5. In an action for tax refund, petitioner must show that taxes were paid erroneously or collected illegally. Failure to sustain this burden is fatal to the action for refund; 6. Claims for refund are construed strictly against the claimants since they are in the nature of exemptions from taxation. (Manila Electric Co. vs. Commissioner oflnternal Revenue, 67 SCRA 351 ); 7. Taxes are presumed to have been paid and collected in accordance with law; 8. Petitioner failed to state the jurisdictional facts and specific provision of law on which its action is based. As shown in the parties' Joint Stipulation of Facts and Issues, the vortex of the ,, controversy lies on whether o-r not Petitioner is entitled to the refund of the amount of P3,097,794.00 representing its overpaid income tax as of December 31, 1997 based on the evidence presented. The basis of Petitioner's claim for refund is Section 69 (now Section 76) of the Tax Code, and We quote, thus: I Section 69. Final Adjustment Retum. - .Every corporation liable to pay tax under Section 24 shai't"file a final adjustment return covering the total net income for the prece4lng calendar year or fiscal year. If the sum of I the quarterly tax payments m~qe during the said taxable year is not equal to the total tax due on the ernire t~xabl e qet income of that year the corporation I shall either: ,�; (a) Pay the tax still q4e; or (b) Be refunded the excess' amou..nt paid, as the case may be. . In case the corporation is entitled to a refund of the excess timated quarterly income taxes paid, the refundable amount shown on its final adjustment return may be credited against the estimated quarterly income tax liabilities for the taxable quarters of the succeeding taxable year.

DECISION- CTA CASE NO. 5789 PAGE4 However, as held in numerous cases decided by this Court, a taxpayer, to be entitled to the refund of excess creditable withholding tax, must comply with the following f(i;quisites, to wit: 1) Thttt the daim ftlr refund was filed within two years as prescribed tiftd~t SecHoh 230 of the Tax Code; 1'h&1t th~ J.ncorrh~ UiJon Which the taxes were withheld was included in me fctutrl of th�i't~!-;ipit>nt; J) That the fact of withholding is established by a copy of a statement ..: (.1311{ Form 1743.1) duly Issued by the payor (withholding agent) to the payee showing the amouht paid and the amount of tax withheld therefrom. ,.. (Section 10, Rev. Regs. No. 6-85; see Citytrust Finance Corporation Vs. "fhe Honorable Commissioner of Internal Revenue, CTA Case No. 4134, November 11, 1991; affirmed by the Court of Appeals in Citytrust Finance Corporation vs. Court of Tax Appeals and the Commissioner of Internal Revenue, C.A. G.R. SP No, 28239, March 14, 1994; and Citytrust F~nance Corporation (formerly Investor's Finance Corporation/FNCB Finance) vs. Commissioner of Internal Revenue, CTA Case No. 4046, February 24, 1993; affirmed by the Court of Appeals in Commissioner of .m! Internal Revenue vs. CitytrusJ f!n~.RC.~ ,Corporation (formerly Investor's Finance Corp./FNC.B Finance.). .~!t.~ Court of Tax Appeals, C.A. G.R. SP No. 31104, April 18, 199,~_; s;I,l�~p,iJJ{ N.~1 �,ys, Court of Appeals and Commissioner of Internal Rey~nye, ~~Q SCRA 459]. After a circumspect study of all th~ relevant documents submitted by the Petitioner with this Court, coupled by the Respondent's failure to refute the same, We find the Petitioner to have complied with alJ of the above requirements but was able to substantiate only the amount of P2, 194,976.14 out of the total claim for refund of P3,097,794.00. We now discuss Petitioner's compliance with the aforesaid requirements ad seriatim. r

DECISION- CTA CASE NO. 5789 PAGES Anent the first requirement, records clearly show that Petitioner complied with the two-year prescriptive period within which to file its claim for refund having filed its administrative and judicial claims for refund on March 15, 1999 (Exh. E) and April 14, 1999, respectively, which are both within two years from April 14, 1997 and April 15, 1998, the respective dates when Petitioner filed its 1996 and 1997 tentative annual income tax returns. Proceeding now to the second requirement, the supporting documents submitted by ~ the Petitioner to prove the fact of withholding showed only an aggregate amount of , P2,308,822.60 as creditable withholding taxes for the years 1996 and 1997 broken down � If' as follows: Exh. Period Covered Payee Payor Income Tax (Withholding Agent) Withheld F 10-May-96 G 31-Jul-96 United Terminals Serv Bacardi Jardine Prod'n p 45.00 H I 22-Jan-96 United Terminal Serv Bacardi Jardine Prod'n 4 5 .0 0 J K Mar-96 United Terminal Serv Bacardi Jardine Prod'n 46.50 K Jun-96 L Jul-96 United Terminals Serv Bacardi Jardine Prod'n 115.50 L Aug-96 L Sep-96 United Terminals Serv Birkart-East West 35,697.96 M May-96 N Mar-96 United Terminal Serv Duty Free Phils 70,572.50 0 Jun-96 Duty Free Phils 4,167.50 Jul-96 United Termin'~i Serv p Aug-96 Sep-96 United Terminals Serv Duty Free Phils 8,320.00 Q May-96 R Jan. to Mar. '96 United terminals Serv Duty Free Phils 25,502.50 Apr to June !96 s Oct. to Dec. '96 united, Terminals serv Duty Free Phils 1,038.75 July to Sept '96 Unite~ terttJinal~.f>erv Duty Free Phils T July to Sept '96 Unite~ Tetml~aiServ Duty Free Phils 56,503.36 July to Sept '96 Unitect Tfi!rmina~ t;erv Duty Free Phils 84,687.00 u Apr to June '96 Unite~ terrplr~l Serv Duty Free Phils Jan to Mar '96 ~rrnlnaj~ Duty Free Phils 5,001 .00 v Jan to Mar '96 UUnniittee~. teqnlna ~ Serv Duty Free Phils 9 , 9 8 4 .0 0 w Jan to Mar '96 Serv 30,603.00 Jan to Mar '96 1,246.50 X Apr to June '96 y United Terminal& Serv Duty Free Phils 9 , 4 1 7 .2 3 z United J~rmi,nal Serv Exxon Chern. Phils. 2,699.00 AA United Terminai Serv Exxon Chern. Phils. 4,770.00 BB United Terminal Serv Famous Pacific 2 3 .0 0 cc Jardine Davies Trans Famous Pacific 70.50 DD EE United Terminal Serv Famous Pacific 138.67 United Terminal Serv Famous Pacific 27 .00 United Terminal Serv Famous Pacific 94.18 United Terminals Serv Famous Pacific 126.12 United Terminals Serv Famous Pacific 189.07 United Terminal Serv :=amous Pacific 145.20 United Terminal Serv Famous Pacific 171.41 United Terminal Serv Famous Pacific 88.00 65

DECISION- CTA CASE NO. 5789 PAGE6 FF Jan to Mar '96 United Terminals Serv Famous Pacific 65.00 GG Jan to Mar '96 United Terminal Serv Famous Pacific 146.95 HH United Terminal Serv Famous Pacific 252.00 II Jan to Mar '96 United Terminal Serv Famous Pacific 228.27 JJ Jan to Mar '96 United Terminal Serv Famous Pacific 191.70 KK United Terminal Serv Famous Pacific 117.62 LL Jan to Mar '96 United Terminal Serv Famous Pacific 142.00 MM Jan to Mar '96 United Terminal Serv Famous Pacific 93.37 NN Jan to Mar '96 United Terminal Serv Famous Pacific 45.21 00 Jan to Mar '96 United Terminal Serv Famous Pacific 43 .84 pp Jan to Mar '96 United Terminal Serv Famous Pacific 190.69 QQ Apr to June '96 United Terminal Serv Famous Pacific 169.31 RR Apr to June '96 United Terminal Serv Famous Pacific 125.70 ss Apr to June '96 United Terminal Serv Famous Pacific 238.35 TT Apr to June '96 United Terminal Serv Famous Pacific 84 .00 71 .64 uu Apr to June '96 United Terminal Serv Famous Pacific vv Apr to June '96 United Terminal Serv Famous Pacific 77.81 ww Apr to June '96 United Terminal Serv Famous Pacific 81 .00 XX Apr to June '96 United Terminal Serv Famous Pacific 182.09 yy Apr to June '96 United Terminal Serv Famous Pacific 113.35 ,_ zz Apr to June '96 United Terminal Serv r=amous Pacific 296.21 , Apr to June '96 United Terminal Serv Famous Pacific 117.37 AAA 161.04 888 Apr to June '96 United Terminal Serv Famous Pacific CCC Apr to June '96 United Terminal Serv Famous Pacific 257.82 DOD July to Sept '96 - f(Jnited Terminal Serv Famous Pacific 118.26 EEE July to Sept '96 Jardine Davies Trans Fashion Accessories 2,192.00 FFF Oct. to Dec. '96 Jardine Davies Trans Fashion Accessories 7,268.85 GGG Jan 1- Dec 31, '96 United Terminal G.E. Antonino, Inc. 291.00 HHH Jan 1- Dec 31, '96 United Terminals Serv lsarog Pulp & Paper 2,048.48 Ill Jan. 17, 1996 United Terminals Serv Jardine Davies, Inc. 123.64 JJJ Jan. 24, 1996 United Terminals Serv Jardine Davies, Inc. 233.82 KKK Jan. 8. 1996 United Terminals Serv Jardine Davies. Inc. 378.78 LLL Jan. 9, 1996 United Terminals Serv Jardine Davies, Inc. 341.01 MMM Oct. to Dec. '96 United Terminals Serv Jollibee Foods Corp. 25,887.69 NNN July to Sept '96 United Terminals Serv Jollibee Foods Corp. 20,101.75 000 July to Sept '96 United Terminals Serv Jollibee Foods Corp. 488.22 ppp Apr to June '96 United Terminals Serv Jollibee Foods Corp. 25,535.54 QQQ Oct. to Dec. '96 UTS Tra.nsport Co., Inc. Johnson & Johnson 1,614.55 RRR Jan 1 -Dec 31, '96 United Terminal:;; Serv Mercantile-Filipinas 7,731.48 Ja~rdin~. i:>a~l-es 5,728 .86 sss Jan to Mar '96 Merck, Inc. TTT Oct. to Dec. '96 Unitep Terniln"als perv NOL Philippines, Inc. 79.68 Jan to Dec '96 uuu Jarcline pavte$� Orient Overseas Cont. 5,814.17 Jan 1 -Mar 31, '96 Transpo'rt SEl!Vices Procter & Gamble 76,309.66 vvv Apr 1 - Jun 30, '96 United Terminal$ $erv Procter & Gamble 80,593.34 www Jul 1 - Sept 30, '96 Unite~ t~Hnina!~ Serv Procter & Gamble 21,221 .64 XXX Jul 1 - Sept 30, '96 Unite~ �f.etrTljnals Serv Procter & Gamble Oct 1 -Dec 31, '86 Unite . Terminal~ Serv Procter & Gamble 5,464.15 yyy United Terminal~ Serv 46,047.36 zzz AAAA Jari. 1 to Jardine Davies Dec 31, �~6 � Transport Services, Inc. KPPI Foods Corp. 12.00 8888 Jan 1- Dec 31, '96 United Terminal Serv KPPI Foods Corp. 7,015.05 Jan 1 -Dec 31, '96 United Terminals Serv KPPI Foods Corp. 13,542.05 ecce 14.00 DODD Jan- Dec '96 UTS Transport Co.. Inc. KPPI Foods Corp. EEEE March '96 United Terminals Serv Rexor & Co., Inc. 130.03 . FFFF Feb., 1996 United Terminals Serv Rexor & Co., Inc. 158.15 GGGG Jan., 1996 United Terminals Serv Rexor & Co., Inc. 159.37 HHHH March, 1996 United Terminals Serv Rexor & Co., Inc. 26.00 1111 May, 1996 United Terminals Serv Rexor & Company, Inc. 149.67 JJJJ June, 1996 United Terminals Serv Rexor & Co .� Inc. 118.39 {) t) '.

DECISION- CTA CASE NO. 5789 PAGE7 KKKK Nov., 1996 United Terminals Serv Rexor & Co., Inc. 104.27 LLLL Nov., 1996 United Terminals Serv Rexor & Co., Inc. 71.75 MMMM Jan 1- Dec 31, '96 United Terminals Soriamont Steamship 244.06 NNNN Oct 1 - Dec 31 , '96 United Terminals Temic Telefunken 16,669.57 Jul1 -Sept 30, '96 United Terminals Temic Telefunken 3,192.86 0000 Jul 1 - Sept 30, '96 Jardine Davies Trans Temic Telefunken 93.79 pppp Apr 1 - Jun 30, '96 United Terminal Temic Telefunken QQQQ 12,739.05 RRRR Jan 1 -Mar 31, '96 United Terminals Temic Telefunken 435.92 ssss Jul 31 -Sept 30, '96 UTS United Terminals United Phil. Lines, Inc. 19.55 TTTT Oct. to Dec. '96 Jardine Davies Trans Uni-Lonseal Plastics 45.36 Oct. to Jardine Davies uuuu vwv Dec. '96 Transport Services Uni-Piastic lnt'l Corp. 470.14 Oct. to Jardine Davies wwww Dec. '96 Transport Services Unilever Phils, Inc. 36,089.56 Jul 1 to Sept 30, '96 United Terminals Serv Toyota Motor Phils. 2,701.45 xxxx Oct 1 to Dec 31, '96 United Terminals Serv Toyota Motor Phils. 8,921 .50 yyyy Jan. 1 to Jardine Davies Apollo Trading zzzz Dec 31, '97 Transport Serv., Inc. & Mfg Corp 1,332.04 ATC Tape Phils, Inc. 2,968.25 Jan 1 to Mar 31, '97 Jardine Davies Trans -' AAAAA Apr 1 to Jun 30, '97 Jardine Davies Trans ATC Tape Phils, Inc. 1,154.00 BBBBB Oct 1 to Dec 31, '97 Jardine Davies Trans ATC Tape Phils, Inc. 6 , 3 9 2 .9 4 ccccc Jan. 1 to Jardine Davies ;r Dec 31, '97 Transport Services, Inc. P.vantex Mill Corp. 12,571 .15 47 .61 DDDDD Apr 1 to Jun 30, '97 , ., Jardine Davies Trans Best Chern & Plastics EEEEE Jan., 1997 Jardine Davies Transport Serv, Inc. Borden Chern Phils. 187.31 FFFFF Jan., 1997 Jardine Davies Transport Services Borden lnt'l Phils, Inc. 187.20 GGGGG Feb., 1997 Jardine Davies Transport Services Borden lnt'l Phils, Inc. 355.87 Jardine Davies HHHHH March, 1997 Transport Services Borden lnt'l Phils, Inc. 8 4 6 .35 IIIII March, 1997 Jardine Davies Transport Services Borden lnt'l Phils, Inc. 86 .4 7 Jardine Davies JJJJJ April, 1997 Transport Services Borden lnt'l Phils, Inc. 144.+1 Jarqi.ne Oavies KKKKK Transport :St:!rvices Cebu Fii-Veneer Corp. 267.00 Daito Nan-Shin 3 6 0 .91 LLLLL 1997 Jardine o avies Shi p ping MMMMM Tra ~spo~ SerVIp~s. Inc. 73.96 NNNNN Jan. to Mar. '97 Famous Pacific 47.52 ' J1=1rdlnff P~vies 1,101 .79 00000 Jan. to Mar. '97 Tr~ti~ P9rt Ser\tlces Famous Pacific 264.61 RRRRR Mar. 29 to ' ~~lrqfre OEI~fcs Goodyear Phils., Inc. Jun 28, '97 Multi-Trans QQQQQ Jan. 31 to Traflsp.ort Stitvices May 31, '97 �.fl:frdlne Pa~)es Agency Phils. Jan. to Mar.. !97 .. Tr~n~~O.r se~.ices Pacific Activated . .....~:~ . .. J~rdine Davjes Jardine Davies ppppp Jan. to Dec. '97 Transport Services Carbon Co. 501 .50 Jardine Davies Inglenook ~. Transport Services Foods Corp. 1,844.92 sssss Oct. 1 to Jardine Davies Pacific Royal 251 .60 TTTTT Dec 31, '97 Transport Services Basic Foods 6,327 .11 uuuuu July 1 to Jardine Davies Shemberg Mktg Corp. Sept 30, '97 Transport Services Jan. 1 to Jardine Davies f'! ..j '

DECISION- CTA CASE NO. 5789 PAGES vvvw Mar 31, '97 Transport Services., Inc. TA Philippines, Inc. 1,592.44 Jan 1 to Mar 31, '97 JardinQ Davies Trans Transmar Agencies 13,984.45 WNVI/WIN Apr 1 to Jun 30, '97 Jardine Davies Trans T1 ansmar Agencies 31,275.08 XX XXX Jan. 1 to Jardine Freight Jardine-Aboitiz yyyyy Dec 31, '97 Services, Ltd. lnt'l Forwarders 8,159.50 Jan 1 to Dec 31, '97 United Terminals Allegro Microsys. Phils. 491 .92 tu.zz Oot 1 to Dec 31, '97 United Terminal Analog Devices (Phils.) 4,136.95 MAMA Jui 1 to Sept 30, '97 United ierminal Analog Devices (Phils.) 6,407.68 8889813 Apr 1 to Jun 30, '97 United Terminal Analog Devices (Phils.) 6,384.57 United Terminal Analog Devices (Phils.) 5,999.53 cccccc Jan1 to Mar 31, '97 DDD ODD Jah 1 to Mar 31 , '97 Jardine Davies Transport Services, Inc. Analog Devices (Phils.) 3,345.60 EEE~I:E Ju! 1 to Se~t 30, '97 Jardine Davies t ransport Services , Inc. Analog Devices (Phils.) 6,691 .20 FFF!==FF 'an 31- D~c 31, '9? Uhited Terminals Serv Birkart East-West 13,470.54 GGGGGG Oct 1 to dec 31, '97 Jardine Davies lransport Services California Mfg. Co., Inc. 83,99 1.41 ,... HHHHHH Apr 1 to Jun 30, '97 Jardine Davies Caltex Phils., Inc. 4,736.70 Oct 1 to Dec 31, '97 Jardine Davies Caltex Phils., Inc. 1,355:49 I IIIII JJJJJJ Jul 1 to Sept 30, '97 Jardine Davies Caltex Phils., Inc. 3,215.81 Jan 1 to Dec 31, '97 Jardine Davies Cosmos Bottling Corp. 3,828.53 K I<KKKKI< LLLLli.. May to July '97 Jardine Davies - f-:transport Services, Inc. Del Monte Phils, Inc. 30.00 MMMMMM Sept 1-Dec 31, '97 UTS United Terminals Del Monte Phils, Inc. 34,386 .9 2 NNNNNN Jan. to Feb. '97 United Terminals Serv/ Jardine D Trens Serv Donut Magic Phils., Inc. 2,115.92 000000 July to Sept. '97 United Termillals Serv/ pppppp Jardine D Trans Serv. Donut Magic Phils., Inc. 763.88 Oct. to Dec. '97 United Terminals Serv/ QQQQQQ Oct. '97 Jardine D Trans Serv. Donut Magic Phils., Inc. 2,364.95 QQQQQQ Nov. '97 United Terminals Serv Duty Free Phils, Inc. 6,940.00 Q(jt)QQQ Dec. '97 Duty Free Phils, Inc. 2,640.00 July '97 United Terminals Serv Duty Free Phils, Inc. 48,090.00 RRRRRR Aug. '97 United Terminals Serv Duty Free Phils, Inc. 35,135.00 f{RRRRR Sept. '97 Duty Free Phils, Inc. 20,165.00 RRRRRR July '97 United Terminals Serv Duty Free Phils, Inc. 22,195.00 Aug . '97 Unit~g Terminals Serv Duty Free Phils, Inc. ssssss Sept. '97 Duty Free Phils, Inc. 642.00 Jun. '97 Unit~~ TerriJI~~~~ Serv Duty Free Phils, Inc. 371 .00 . ssssss Duty Free Phils, Inc. 395.00 UnitEld Terminals Serv ssssss 55.00 united terrtiin~ ls serv TTTTTT urili�d terrrihf~ls Serv Un it~cj Terminals Serv uuuuuu May'97 United TerllJinals Serv Duty Free Phils, Inc. 9,865 .00 uuuuuu Jun. '97 Ul}ited Jerminlas Serv Duty Free Phils, Inc. 510.00 Nov. '97 United TE!rrninals Serv Duty Free Phils, Inc. 2,316.00 vvvwv WWV\f\N\11/W Oct. '97 United Terminals Serv Duty Free Phils, Inc. 8,328 .0 0 Sept.'97 United, Terminlas Serv Duty Free Phils, Inc. 29,004.00 XXX XXX . July '97 United Terminals Serv Duty Free Phils, Inc. 4 6 , 0 1 4 .0 0 yyyyyy United Terminals Serv Duty Free Phils , Inc. Jun. '97 942.00 zzzzzz AAAAAAA May-'97. United Terminals Serv Duty Free Phils, Inc. 11,838.00 8888888 Jun. '97 Jardine Davies ccccccc Dec. '97 Transport Serv, Inc. Duty Free Phils, Inc. 12,398.40 United Terminals Serv Duty Free Phils, Inc. 57,708.00 DDDDDDD Dec. 26 '96 to Dec25'97 United Terminals Serv Electronic Tel. Syst 16,306.80 DDDDDDD Dec.26'96to Dec. 25 '97 United Terminals Serv Electronic Tel. Syst 33,979 .28 Dec. 26 to Jardine Davies EEEEEEE Dec 25 '97 Transport Services Electronic Tel. Syst 5,199.87 660.00 FFFFFFF Mar. 1-Dec. 31, '97 United Terminals Serv Evergreen Phils. Corp.

DECISION- CTA CASE NO. 5789 PAGE9 GGGGGGG Jan. to Mar. '97 United Terminal Serv Famous Pacific 77 .00 HHHHHHH Jan. to Mar. '97 United Terminal Serv Famous Pacific 50 .0 0 II IIIII June 30 '97 Jardine Davies Hardie Jardine, Inc. 17,689.59 Transport Serv, Inc. JJJJJJJ Sept. 30 '97 Jardine Davies Transport Serv, Inc. Hardie Jardine, Inc. 54,214.62 KKKKKKK Dec. 31 '97 Jardine Davies Transport Serv, Inc. Hardie Jardine, Inc. 15,165.19 KKI~KKKK Dec. 31 '97 Jardine Davies Transport Serv, Inc. H:1rdie Jardine, Inc. 62,627 .00 LLLLLLL Jan to Dec. '97 Jardine Davies Transport Serv, Inc. Hi-Precision Steel Ctr. 885 .00 MMMMMMM Jan. to Dec. '97 Jardine Davies Honda Cars Phils., Inc. 67,500.00 NNNNNNN Jan. to Dec. '97 United Terminals Serv lr.tel Phils. Mfg. ,Inc. 117,651 .03 Jan. to Mar. '97 United Terminals Serv Jimenez Oil Mills, Inc. 0000000 Apr 1 to Jun 30, '97 United Terminals Serv Jimenez Oil Mills, Inc. 2 4 .7 0 ppppppp July to Sept. '97 United Terminlas Serv Jimenez Oil Mills, Inc. 43.57 May to Jun '97 Ice Cream 31.94 QQQQQQQ United Terminals/ RRRRRRR Jardine D Trans Serv Copenhagen Phils 2,4!17.53 sssssss July to Sept. '97 United Terminals/ Ice Cream Jardine D Trans Serv \.. -.~penhagen Phils 75.65 TTTTTTT Oct. to Dec. '97 United Terminals/ Ice Cream Jardine D Trans Serv Copenhagen Phils G0.61 iK vvvvvvv UUUUUUi.J Jan 1 to Dec 31, '9~~ United Terminals Serv Isla Comm. Co., Inc. 1,412.GG Jan to Dec. '9T Jardine Davies Jardine Aboitiz Transport Services lnt'l Forwarders 5,024 .00 WMWN'NVW July 1 to Jardine Davies J~:Jhnson & Johnson xxxxxxx Sept 30, '97 Transport Serv, Inc. Phils, Inc 6,946.20 J-::hnson & Johnson Oct 1 to Dec 31, '97 Jardine Davies Transport Services, l:lc. Phils, Inc 2,855.77 8 , 4 3 3 .2 3 yyyyyyy Jan 1 to Mar 31, '97 United Terminals Serv Jcllibee Foods Corp. 37,354.19 zzzzzzz Apr 1 to Jun 30, '97 United Terminals Serv Jcllibee Foods Corp. A8 Jul 1 - Sept. 30, '97 United Terminals Serv Jollibee Foods Corp. 47,883 .39 88 Oct 1 to Dec 31, '97 United Terminals Serv Jc!libee Foods Corp. 39,433 .32 CB Oct to Dec '97 United Terminals Serv Ji1~1enez Oil Mills, Inc. 31.60 DO Jul 1 to Sept 30, '97 Jardine Davies Trans ATC Tape Phils., Inc. 3,551.56 E8 Jul 1 to Sept 30, '97 Jardine Davies Trans T~:msmar Agencies 22,176 .90 F8 Jan. 10, '97 United Terminals L<l Tondena Distillers 518 .00 G8 Sept. 4 '97 Un'ted Terminals La Tondena Distlllers. 180.00 1-18 Mar. 18 '97 United Terminals L:�� Tondena Distillers 120 . 0~ 18 May 19 '97 united Terminals L : ~ �ondena Distillers 10.00 J8 Jan to Dec. '97 uofted Terminals Inc. Bristol-Myers Squibb 92,702 .22 Jan 1 to Dec 31, '97 unit~~ ternilnals serv 1\lercantile Filipinas K8 Oct. to Dec. '97 ~i!e~ terminals serv 23,699.52 L8 Merck, Inc. 4 6 , 5 3 6 .65 MB July to Sept. '97 l')ited Terl'{ll[wl Serv New World lnt'l Devt. 7 2 3 .3 9 t.l8 Oct to Dec '97 Unltea Terminal Serv New World lnt'l Devt. 715 .53 08 Jan-1 to Dec 31, '97 Unlt'ed Terminal Serv N':' K-FIL Japan Ship 246 .50 P8 Jan. to Mar. '97 UTS OOCL (Phils .), Inc. 107.78 Q8 Jan. to�Mar. '97 UTS OOCL (Phils.), Inc. 306 .8 6 UTS C'JCL (Phils .), Inc. 411.8G R3 Jan. to Mar. '97 sa Jan. to Mar. '97 UTS OOCL (Phils .), Inc. 137.67 I T8 Jan. to Mar. '97 UTS COCL (Phils.), Inc. 439 .23 U8 Jan. to Mar. '97 UTS GOCL (Phils .), Inc. 1,062.00 V8 Apr. to June '97 United Terminals OOCL (Phils.), Inc. 1,000.92 W8 Apr. to June '97 United Termin<lls C'JCL (Phils .), Inc. 84.06 6 3 5 .3 0 XG Apr. to June '97 United Terminals Serv OOCL (Phils.), Inc. Y8 Apr. to June '97 UTS COCL (Phils.), Inc. 226 .26 Z8 Apr. to June '97 UTS OOCL (Phils.), Inc. 7.50 A!J Apr. to June '97 UTS OOCL (Phils.), Inc. 2.00

.... DECISION- CTA CASE NO. 5789 PAGEIO 89 Apr. to June '97 UTS OOCL (Phils.), Inc. :22.50 C9 Apr. to June '97 UTS OOCL (Phils.), Inc. D9 Apr. to June '97 UTS OOCL (Phils.), Inc. 5:!0 .6 5 E9 Apr. to June '97 UTS OOCL (Phils.), Inc. F9 Apr. to June '97 UTS OOCL (Phils.), Inc. 381.95 G9 Apr. to June '97 UTS OOCL (Phils.), Inc. H9 Apr. to June '97 UTS OOCL (Phils.), Inc. 84.20 19 Apr. to June '97 UTS OOCL (Phils.), Inc. J9 Apr. to June '97 UTS OOCL (Phils.), Inc. 152.43 K9 Apr. to June '97 UTS OOCL (Phils.), Inc. L9 Apr. to June '97 UTS OOCL (Phils.), Inc. 142.82 M9 Apr. to June '97 UTS OOCL (Phils.), Inc. N9 Apr. to June '97 UTS OOCL (Phils.), Inc. 118.28 09 Apr. to June '97 UTS OOCL (Phils.), Inc. P9 Apr. to June '97 UTS OOCL (Phils.), Inc. 105.63 Q9 Apr. to June '97 UTS OOCL (Phils.), Inc. R9 Apr. to June '97 UTS OOCL (Phils.), Inc. 82 .20 S9 Apr. to June '97 UTS OOCL (Phils.), Inc. T9 Apr. to June '97 OOCL (Phils.), Inc. 68.29 U9 Apr. to June '97 UTS OOCL (Phils.), Inc. V9 July to Sept. '97 UTS OOCL (Phils.), Inc. 59 .70 W9 July to Sept. '97 UTS OOCL (Phils.}, Inc. X9 July to Sept. '97 UTS OOCL (Phil s.), Inc. 428.53 Y9 UTS OOCL (Phils.). Inc. Z9 - July to Sept. '97 ,. ~ UTS OOCL (Phils.), Inc. 49.70 A10 UTS OOCL (Phils.), Inc. 810 July to Sept. '97 UTS OOCL (Phils.), Inc. 129.66 C10 July to Sept. '97 UTS OOCL (Phils.), Inc. D10 July to Sept. '97 UTS OOCL (Phils.), Inc. 51.70 E10 July to Sept. '97 UTS COCL (Phils.}, Inc. F10 July to Sept. '97 UTS OOCL (Phils.), Inc. 276.85 G10 July to Sept. '97 UTS OOCL (Phils.), Inc. H10 July to Sept. '97 UTS OOCL (Phils.), Inc. 10.00 110 July to Sept. '97 UTS OOCL (Phils.), Inc. J10 July to Sept. '97 UTS OOCL (Phils.), Inc. 57.70 K10 July to Sept. '97 UTS OOCL (Phils.), Inc. L10 July to Sept. '97 UTS OOCL (Phils.), Inc. 170.14 M10 July to Sept. '97 UTS OOCL (Phils.), Inc. N10 July to Sept. '97 UTS OOCL (Phils.), Inc. 171.40 010 July to Sept. '97 UTS OOCL (Phils.), Inc. P10 July to Sept. '97 OOCL (Phils.), Inc. 170.23 , Q10 July to Sept. '97 UTS OOCL (Phils .), Inc. 133.13 R10 July to Sept. '97 OOCL (Phils.), Inc. S10 July to Sept. '97 Lrts OOCL (Phils.), Inc. 252.63 T10 July to Sept. '97 OOCL (Phils.). Inc. U10 July to Sept. '97 UT$ OOCL (Phils.), Inc. 201 .38 V10 July to Sept. '97 ~T~ OOCL (Phils.), Inc. W10 July to Sept. '97 UTS OOCL (Phils.), Inc. 95.10 X10 OOCL (Phils.), Inc. Y10 July t? Sept. '97 L!TS OOCL (Phils.), Inc. 86.28 Z10 COCL (Phils.), Inc. A11 July to.Sept. '97 UTS OOCL (Phils.), Inc. 52 .91 811 July to Sefll. '97 OOCL (Phils.), Inc. C11 July to Sept. �'97 LJTS OOCL (Phils.), Inc. 8.00 D11 July to Sept. '97 OOCL (Phils.), Inc. E11 July to Sept. '97 UTS OOCL (Phils.), Inc. 118.53 F11 July to Sept. '97 UTS OOCL (Phils.), Inc. G11 July to Sept. '97 UTS OOCL (Phils.), Inc. 42.42 H11 July to Sept. '97 UTS OOCL (Phils.), Inc. 111 July lo Sept. '97 OOCL (Phils.), Inc. 271.41 Oct. to Dec. '97 UTS Oct. to Dec. '97 UTS 179.11 Oct. to Dec. '97 UTS Oct. to Dec. '97 UTS 148.53 UTS UTS 59.70 UTS UTS 287.09 UTS 44.56 49.62 151 .50 6.96 45 .73 14.63 151 .93 187.45 91 .20 117.28 292.76 96.28 177.42 8.75 42.00 105.78 123.78 90 .30 59 .70 186.76 176.01 84.4 1 97.59 250.19 84 .21 70

DECISION- CTA CASE NO. 5789 PAGE II J11 Oct. to Dec. '97 UTS OOCL (Phils.), Inc. 132.62 K11 Oct. to Dec. '97 UTS OOCL (Phils.), Inc. 98.10 UiS OOCL (Phils.), Inc. L11 Oct. to Dec. '97 UTS OOCL (Phils.), Inc. 93.01 UTS OOCL (Phils.), Inc. 110.31 M11 Oct. to Dec. '97 60,40 N11 Oct. to Dec. '97 0 11 Oct. to Dec. '97 UiS OOCL (Phils.), Inc. a3.5s P11 Oct. to Dec. '97 UTS OOCL (Phils.), Inc. 83.36 UTS OOCL (Phils.), Inc. 186;28 Q11 Oct. to Dec. '97 UTS 00CL (Phils.), Inc. 182.45 R11 Oct. to Dec. '97 S11 Oct. to Dec. '91 UTS OOCL (Phils.), Inc. 82 .41 UTS OOCL (Phils.), Inc. T1 1 Oct. to Dec. '97 UTS OOCL (Phils.), Inc. 121.1a U11 Oct. to Dec. '97 8~t to V11 Oct. to Dec. '91 UTS OOCL (Phils.), Inc. 56.46 W"11 Oct. to Dec. '97 UTS OOCL (Phils.), Inc. 99.53 X11 Oct. to Dec. '97 UTS OOCL (Phils.), Inc. 101 .54 Y11 Oct. to Dee. '�17 UTS OOCL (Phils .), Inc. 156.26 l1 1 Oct. to Dec. '91 UTS OOCL (Phils .), Inc. 102.02 UTS OOCL (Phils .), Inc. 7.00 A1e Oct. to Dec. '97 812 Oct. to Dec. '97 UTS OOCL (Phils.), Inc. 10.56 _. C12 Oct. to Dec. '97 UTS OOCL (Phils.), Inc. 2 5 0 .9 8 D12 Oct. to Dec. '97 UTS OOCL (Phils.), Inc. 90.17 E12 Jul1 to Jardine Davies , Sept. 30, '97 Transport Serv, Inc. Phil. Appliance Corp. 6,708 .63 E12 Jul1 to . r~ Jardine Davies Sept. 30, '97 Transport Serv, Inc. Phil. Appliance Corp. 5,823.49 F12 Apr. 1 to Jardine Davies Jun 30 '97 Transport Serv, Inc. Phil. Appliance Corp. 7,922.12 F12 Apr. 1 to Jardine Davies Jun 30 '97 Transport Serv, Inc. Phil. Appliance Corp. 6,069.27 G12 Oct. 1 to Jardine Davies Dec 31, '97 Transport Serv, Inc. Phil. Appliance Corp. 1,132.79 G12 Oct. 1 to Jardine Davies Dec 31, '97 Transport Serv, Inc. Phil. Appliance Corp. 17,507.31 H12 Feb. 10 to Jardine Davies Dec 31 '97 Transport Serv, Inc. Pure Foods Corp. 11,896.89 112 Jan 1 to Mar 31 '97 United Terminals Serv Phil. Conso. Invest. 1,469.54 J12 Jan. to Dec. '97 United Terminals Serv KPPI Food Corp. 9,353.40 J12 Jan. to Dec. '97 United Terminals Serv KPPI Food Corp. 22 ,252.73 K12 Jan 1 to Mar 31 '97 United Terminals Serv Procter & Gamble Phils. 2 , 1 2 0 .7 5 L12 Oct 1 to Dec 31, '97 United Terminal Serv Robert Dan & Co., Inc. 657.73 M12 Apr 30 -Jun 30 '97 United Terminals Robert Dan & Co., Inc. 570.15 N12 Apr. to June '97 United Terminals Rohm & Haas Phils 4 7 0 .0 0 012 ur& Jan 1 to Dec 31 '97 United Terminal Serv Royal Cargo Corp. 2,232 .00 P12 Jan 1 to Dec 31 '97 n~ f'\~port Royal Cargo Corp. 39.00 012 Jan 1 to Sept 30 '97 United Terminals Royal Heavylift, Inc. 4,554.08 R12 Oct 1 to Dec 31, '97 United Tertninals Royal Heavylift, Inc. 296.10 S12 Jan. to Dec. '97 United Terminals Serv Surigao Dev. Corp. 6 , 9 3 9 .0 0 1,196.55 T12 Jan 1.to Mar 31, '97 Jardine- Davies Trans Temic Telefunken U12 Jul 31 - S~pt 30 '97 Jar<l!n~ pavies Trans Temic Telefunken 7 , 2 3 3 .9 5 V12 Apr 1 - Jun 30 '97 Jardine Davies Trans Temic Telefunken 2,565.78 W12 Jul31- Sept 30 '97 United Terminals l ernie Telefunken 4,631.18 X12 Oct 1 to Dec 31, '97 United Terminals Temic Telefunken 6,636.21 Y12 Oct to Dec. 31 '97 Jardine Davies, Inc. Thorn Lighting (Phils.) 6,912 .99 Z12 Apr 1 to Jun 30 '97 Jardine Davies, Inc. Thorn Lighting (Phils.) 2,940.00 A13 Jan 1 to Mar 31, '97 Jardine Davies, Inc. Thorn Lighting (Phils.) 3 0 .0 0 813 Jan 1 to Mar 31 '97 United Terminals Serv Toyota Motor Phils. 4,538.00 4,764 .50 C13 Apr 1 to Jun 30 '97 United Terminal Serv Toyota Motor Phils. 4,914.50 D13 Jul 1 to Sept 30, '97 United Terminals Serv Toyota Motor Phils. 7l

DECISION- CTA CASE NO. 5789 PAGE 12 E13 Oct 1 to Dec 31 , '97 Uilited Terminals Serv Toyota Motor Phils. 5,979 .00 F13 Jan 1 to Dec 31 '97 Jardine Davies Transport Serv, Inc. UTS Transport Co., lrtc. 3,164.00 G13 Oct 1 to Dec 31, '97 Jardine Davies Ttansport Serv, Inc. Van Melle (Phils.) Inc. 294.71 H13 Jul 1 to Sept 30, '97 United Terminals Rorert Dan & Co., Inc. 1,025.20 113 Oct 1 to bee 31, '97 Jardine Davies Trans Temic Telefunken 9,715.05 Total : P2,308,822.60 While it may be observed that sotne of the above certificates were issued under the name of United Tenninals Services; the same pertain to the account of the Petitioner since it operates under the said business name as �nown on its Certificate of Registration of Business Name (Exh. J-13), hence the said certificates were extended credence and probative value by this Court. . r� However) this Court found out, after a thorough scrutiny of Petitioner's documehts that there are several certificates which do not pertain to Petitioner's account, hence, were disallowed, to wit: Exh . Period Covered Payee Payor Income Tax (Withholding Agent) Withheld QQQ Oct. to Dec. '96 UTS Transport Cb., Inc. Johnson & Johnson p 1,614.55 DODD Jan to Dec '96 UTS Transport Gb., Inc. KPPI Foods Corporation 14.00 XX XXX Jan. 1 to Jardine Freight ..� Jardine Aboitiz lnt'l ' Dec. 31, '97 Servic~s; Li~. �� Forwarders, Inc. 8,159.50 P12 Jan. 1-Dec. 31 '97 UTS Tr~nSP9r1 Royal Cargo Corp. 39.00 Y12 Oct -Dec. 31 '97 Jardine D~!<~~~. lflR� Thorn lighting (Phils.). Inc. 6,912 .99 Z12 Apr. 1-June 30 '97 Jardine D ~yi~~. In~ . Thorn lighting (Phils.), Inc. 2,940.00 A13 Jan. 1-Mar. ;31, '97 Jardine Of!vje~ , 111c. Thorn Lighting (Phils.), Inc. 30.00 Total: p 19,710.04 In the same breath, Petitioner failed to establish the authenticity of the following docur11ents whose originals were not presented before the Court for comparison, viz: ! 72 ' ��

DECISION- CTA CASE NO. 5789 PAGE 13 Exh. Period Covered Payee Payor Income Tax (Withholding Agent) Withheld AAAA Jan. 1 to Jardine Davies p Dec 31, '96 Transport Serv, Inc. KPPI Foods Corp. 12.00 8888 Jan 1- Dec31, '96 United Terminal Serv KPPI Foods Corp. 7,015.05 Jan 1 - Dec 31, '96 United Terminals Serv KPPI Foods Corp. 13,542.05 ecce Jan. 1 to Jardine Davies Apollo Trading yyyy Dec 31, '97 Transport Services, Inc. & Mfg. Corp. 1,332.04 Jan. 1 to Jardine Davies ccccc Dec 31 , '97 Transport Services, Inc. Avantex Mill Corp. 12,571.15 KKKKK Jardine Davies Transport Services Cebu Fii-Veneer Corp. 267.00 00000 Mar. 29 to Jardine Davies Jun 28, '97 Transport Services Goodyear Phils., Inc. 1,101.79 TTTTT July 1 to Jardine Davies Sept 30, '97 Transport Services Shemberg Mktg. Corp. 6,327.11 Jan. 1 to Jardine Davies uuuuu Mar 31, '97 Transport Services, Inc. TA Philippines, Inc. 1,592.44 �-' yyyyy Jan 1 to Dec 31, '97 United Terminals Allegro Microsys. Phils. 491.92 HHHHHH Apr 1 to Jun 30, '97 Jardine Davies Caltex Phils., Inc. 4,736.70 IIIIII Oct 1 to Dec 31, '97 Jardine Davies Caltex Phils., Inc. 1,355.49 JJJJJJ Jul 1 to Sept 30, '97 Jardine Davies Caltex Phils., Inc. 3,215.81 UUUUUUU Jan 1 to Dec 31, '97 Unitlfd Terminals Serv Isla Comm. Co., Inc. 1,412.08 VB Apr. to June '97 United Terminals OOCL (Phils.), Inc. 1,000.92 6 3 5 .3 0 XB Apr. to June '97 United Terminals Serv OOCL (Phils.), Inc. Y8 Apr. to June '97 UTS OOCL (Phils.), Inc. 2 2 6 .2 6 Z8 Apr. to June '97 UTS OOCL (Phils.), Inc. 7.50 A9 Apr. to June '97 UTS OOC'L (Phils.), Inc. 2.00 89 Apr. to June '97 UTS OOCL (Phils.), Inc. 22.50 C9 Apr. to June '97 UTS OOCL (Phils.), Inc. 530.65 D9 Apr. to June '97 UTS OOCL (Phils.), Inc. 387 .9 5 E9 Apr. to June '97 UTS OOCL (Phils .), Inc. 84 .2 0 F9 Apr. to June '97 UTS OOCL (Phils.), Inc. 152.43 Total: P 58,022.34 Likewise, We disallowed the aggregate amount of P36,114.08 creditable withholding taxes since their corresponding certificates do not bear the dates or period when the indicated creditable taxes were withheld: Payor Income Tax I;xh. Period Covered Payee (Withholding Agent} Withheld ..'t H United Terminal Serv 8acardi Jardine Prod'n p 4 6 .50 �� ~ J United Terminals Serv Birkart-East West Freight 35,697.96 HH United Terminal Serv Famous Pacific 252.00 KK United Terminal Serv Famous Pacific 117.62 Total: p 36,114.08

DECISION- CTA CASE NO. 5789 PAGE 14 Prescinding from the aforesaid disallowances, Petitioner was able to substantiate only the amount of P2, 194,976.14 out of the total creditable withholding taxes of P2,308 ,822.60. Anent the last requirement, it could be clearly seen from its 1996 and 1997 rumual income tax returns/audited financial statements (Exhs. A and D) that Petitioner declared the corresponding income payments from which the creditable withholding taxes with valid certificates of P2, 194,976.14 were withheld. ~-' Having complied with the requisites laid down by this Court, We grant the claim for refund but only in a reduced amount of P2, 194,976.14. WHEREFORE, in view of~ll the foregoing, Respondent is hereby ORDERED to REFUND or in the alternative to ISSUE a Tax Credit Certificate in the amount of P2, 194,976.14 in favor of the Petitioner representing excess unutilized creditable withholding taxes for taxable years 1996 and 1997. SO ORDERED. CL::~-~ ERNESTO D. ACOSTA Presiding Judge WECONC R: .~~�. ~N,oI..o.~I~ .; Associate JuW-- '7'�.t

DECISION- CTA CASE NO. 5789 PAGE 15 CERTIFICATION I hereby certify that the above decision was reached after due consultation with the members of the Court of Tax Appeals in accordance with Section 13, Article VIII of the Constitution. ERNESTO D. ACOSTA Presiding Judge _, . ,�. '75