CTA Case No. 3967 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY ATLAS CONSOLIDATED MINLNG & DEVELOPMENT CORPORATION, Petitione-r, - ve-rsus - COMMISSIONER OF INTERNAL Prornulgated_ REVENUE , Respondent_ DEC 14 1994 X- - - - - - - - - - - - - - - - - - - - - -X DECISION .~ _�-7,_. .rt~ l� �.--�_ :;.,,= 1_:,,-_.1,,.:.r_-�-., -~-.��,_,_,r.�:_--.�.�.~_i_�~�-! .-_,� iu.&.~.l::.:-,~'"-.~i-..,-;�,":-;-.:-...=~.,:~' .L- ��. . f,_~~l�.--�, .~.. --.�.�.- .;..� I r�-,.---+-.------~ ~--i+-~- �-~ .-t.'r��----. �.:_::,.,,.i._.,...� :_.:-:...,�.---�-:1�.��:-.i. .il.�. - ,.1.,.��,�._-�.� ..t.-.0. '�-� .Z. :7�:'.-:':l.l- ;::� .l. _i,':;:' 11-~~ f::lct:; :~Jr-2 �::: ~;3_~-~(i .::1'_~:: f �.:.� 11:_::r-, . ~�:;� For -1 tlie. 1~)-:-::.:-:.'1-jL,'�-)..l._

DECISION- C.T.A. CFcSE NO. 'Y167 lc ';: .--~-��, 1~) ;:11-J.i-1 ,.-.,!- ik .. 11tl( iA1' ',.:_:1:.'_A��,_.-. �-tj�r--�,-1� -J.C�-:� _) .__1 '�:-1�1�~;-,.--! lCf:) {\ !-i�'-r� !�!�i-J.A�-� !-11i;r .L._. �-- �- 14'-= .) +1_��I-J�.A., _) . ... _) �� ��-� .1 �-� ._._ .... �- �-� r.�,.A_. r'�1�� t_i...-.�.�.��tlA..."1- +'-�.��--)� �J::O�.,A..r.�r��,.�,;1r,-�t'-11;1; (-~,.--;.t�,�r-y.,�-�-���,��=�-���t.1��.._..-��ti . ,--�WJ. l l q ]-.- -ct~ ]-]-c�-=� t-� �.:)... ''-):0 _, 1 (:r'.p) c_..,. �' .f1.-��, .�:._=. :...l..-'tt.j�.,L----.-,�1-.1'. AI.. fl'l._.-_,.�,�.-.1 �,-_�1. ,.__-. ln.-_1_1- !"(J. f .-.-_.�,t,- .tL�,:._-.�:.�l�l_.~.'.t..lC-l ....... \_..... . .L l �-- ... (Exh l�.) 1.qit.li ths- r-s-spc�tYlent 1!l tile a.rnount. of P 11.927.23.6 92. 1--���1�-1'�1���.-��dh'�-:�,.c�-��.�:-�,;.�J' �ft�..�-....,�1d-' DI" .�:�-:�:."t-�t�,.�--��,f--.��,.}�Lj�l� ,��.--�-�,..��..,t-�r-��.�.�..-��,r��':-'.��t.�l�,�..-�.,�I-l !�,�-,.I I.. r.�-tl-LA- r--.:::.r�1���;,-l C�Jl t-�,Ti.�:�,�,--�-1� .-, ,�.--�,� 1- .l i��� v - �--� �- �- � _, - - �, . thi~: petition. �P.:::-titioner pointed th:=Jt. it h:::td complied vlith the -�-��t't"j!_..t"."-�v;1�L�-�=-�� 1�!-J. "t..--. ����-� 1 ,.-...-.�r�� 1-1.1 c) (:rf F~ . i~.L. �--��.� � rn-��I- ...�--,.1~1-�.�-.-+l;.:.,,.�--l� '~::-:'-.:-�:o�-.�,.--.-�1t'.-.J-�r�1 1�;�:-�.l�':-.� t��-1�� �-.-_�}t"1� �~-~�;:'..�.--��-t��i(��-���t���� ,���,!� ,-.,!- v r.-t!-l.-A~- .r1'�-. 1t�.:,...i1li-f."l-��fr"�:l'on.4;.:�..�.�:-�';. �-� 1r,;:7}- -11�,�-.--.!t-.i.. f-�;:>f1Tjl~l-J. 6 t� i.:� ;:'! .-,-1;:-t�,�J.h.:-t� .:�t�:, �!-ipo Hf.-1�..,. ��-:-t�-t� -��.�- �-�- �- �-�!. .1. �-� �-- l.:.,., J. ... ��-� .l. _, �-' -"-�'-�4-l. ;=� R ~~:p.:::rndent did not a.d. on 5:::::+:1 ct:~irn f�:::.r refund . Hen�:::e, tt- ��> 1 -.-J.l_jC.J� 1r_.�..;_.:..t-L' t�.i-..-1����-�,r�,..\. f , �. r t� ;:-~;1� A~ ,;; !.1.1A��l 't��,�;r r1.-.�.-;-:-.'~-�1� ~t-1� ,..-..., 1 �!.AJ.t_' , ,.�_-. ,!-1 /2. ]-_1... ,6-iJ._]C. . . �_f__ .-.~:,...:C_.":~ .: (::i'!p-)_C)"_, 1 -.- 'i ._. -,.- ...._.�._ J.��-'J. .� l.J. ,-.,!- rr-���t� .::..'~,.."i!..-t."J.;=Ci, ��-r.::o.,.-ilt- -~1 t�=jV �__,__ .& ...._. _ ._��_ -.:_.,_Jr. !�J�,.,.�-.��,J_,_'!�'.~.. t.� '7 �) -~ (, (l) 1 .. --� ~ 1 .�'-- ._.~ __ � _. ~ f.&.-�-�.,�1t� ._. 1'�1�1 1t--1-!.A_. .t._-..-_�.,t-_:. -._1_1 ~-- J) 1' 1 Q} 4. I ths- pri>?ihge gn:mted under S-s-dion ~l <:�f Republic : ,t.... t No . 14 3.::'-'

DELJSION - C.TA. C.~ NO. 'N67 :~�t�i-' "-.-1,-l.;:,,--l �~--��<_l,:7 Dr� ;�.:.,,.c_��i.1,-��.1.�:.:�J:..r1t��1 '�8:1� 1 [!�.:-:.�:.�r���r�;�:-�,.�;�:�, f�.[n L.) F) '�=-�111,�..-+l 1. t_c_._�, 1.1,-.1,.-IrJ.:.l/.:::�-.�r-Il.::�:..�.�1-.1� �t.-�1.11j=0, L- � �-'� J.�.�.i ����-��� . J.. .1 ��� . regul::ttion (L:u::a.l Tax F:egul::J.t.ions Nc�. 1-74) i~sued by tlle r't-, ,:, 1-�,,:::_f,.-�,t�e:. 1f->--��-:�.ir�t.i. c....1_'_f_ T�ufllt-i���t (��=-� t-1 it-.-,.-.:-:~, �Cv- i...r. �,=__-_tt,-!.�t--~�'r--.+l t�-l�-1"'�..-r !-,�:-�, !.-1-!J- lC._�: t-� tJ�..,..�:-:�. ��::>1. .c_t:!�if�-l� ~...�'v11 !'..i..u0_" �-� �-� J. �-.-� ��� J,. �-� J. ._._ ... �.� �-��-�-- . .-! ... �--� t��l-1 ,�-;-i~'�� 1r-��,�.�-:�:.-t��it-1��-�--'-��-t���,-.�:.:1.�.- 1r�.,.--'.~�--1:,�.--+l tt-�11.:::�-:�. �':-'��r�-lr�-l -"tt�l�.�.-������-.l1��=-~-�1 r,_.�._:,_...v:4. 1'-l� -tlr�.l �"�-�-t- .r_-.,_ !'1..'.i._J._l;t. }1i.'���-1� �!r_...�,:_,_l' �.-.-.�.,!- ..-. 1��t�i� l1 ' .J' ~"~ction 6._ .r..�.�.,.i.l:,_t,�~,<... ,1.-.....1�rr.-:�:1..�.~1� "1-.,.-.,;. r�, �l�:� ,�.... -,1.- �,........,.....,.,_i_t�1�..-..�-1�1�-..=..�. --- - .1 lo.,. J .... - \ . . . . _ , rna.;,t. not.~l�.iit.11t:t::t.nding tile [-�rovi:::ic�rr:: Of �::e.,::tiCtE �)l"l>?. .-11- ..-1 ..-1 1-, f,.�,t�t 111�� .::>cl 1-.-. ��(;;- n r.:::.d i�� .... 1-. L �- ~:J t'1� -.-1 �' / t-T� ,�.�,t! () -=-1 ,.--- ,-t.-11.-;:.~:. .! i1'1'1d .a . .� .+ :~1t':t"l 1. -.� �'</7 - � _..,. � . .1 �- �- �- ... ..1. �. -� ��. - �� - �� fi';,.re of the Nat.i�.)lE.ll Int.en~::J.l Rs-venus- Cods-, as l;:-.:..~.lnr �:.-+1 (-ll.-t1 '-~.YJ._J:-=-i1- t-:-_1_'..-..~.. (-'..f. nc.i-. l...i_;:.-:.J�. �,-:.~il�-1;-:t--b-o~r-;:t.:-. :=-t ?l!_I_l;:.:.nd;:.:.cl :=-n-1 ..... - - -� ,_ ...... -� -r - ! -- - � .A. -s-;::.-::-s-eding t"~A,.i?.nty-five. per c.::-nt of the n:tt..::-~: ft{ed in said ::f.'�::tion-::.. �:::.n rna.nuL::v::t1J.red c�il:; :;.:::.1d c�r di:::t.ribu.ted �,.vithin t11e lirnits of Ul'::' dtv� or ' Ll__,�--��.�-. .�.:_:..'._::, .t-u .�.L'l~��1i� ''~1..~!-:---'c�!:,1!1' +L��Y�.� ..u.1.�.. �i .Ji~:�_,,.-.;-d,-���.J"�.;.~;;--..;~ , ".t!~-1 .�-:,,t,�. !Y�" ,-.~� .-1�tr;�-�c-1l' l"iers-t.-=:-f�)rs- b~.Tie,J 1Yl ( itie.::: thft)Ugh ci~.;l �:)t<iin:mv::-�:; (��il �:r.:, .:.,.-�,1it�,c::. �=-�1���r ,1�:;��1,::, l ll t-.,1�1�r'<'ft1�nu .t-� '-�. ,���:t�, ~t-tfl ,.--,>- ~�,c::.�- �... �- ��� I_.J._ �-�1 �-� l..� ;=,�- ��-' �-� ..&.J. .a.�.��' '-'� i .1. �-� fn ::-1' �- � ;,_. ��� '-� '-� ....... ;-::) �.�"" .L - ��-� , pre:::;cribed bv ��>)!l�.::>?.rne.d . ' -section 5- The pr.::...:eYL::: c�f tl"I>? add i ~.i�::-:rn.l t:J.x CTl manufact.ursJ ..:.<its :.1Edl .::v.:crue t.o the r�.).::!d and bn::lg-s- flJ.nd:; �:)f tb'2. f-";)lit.ical subdivi:::i..:. n for ~. th�.:. ::.:::- benefit tilE> t::.x: i:=: �.:�o110<::t.C!d � If.;r�./(:'?d. .J)(�~ :.'f'~���.f'J; Th:}t. ~.~.'h ~n~-;.;er an;.: ells m~ntk�ned a.bc�v,::;. ar-:- tv:�e.�.:l by 1IJir!.t&rs ()f f,_)fe.3t cc~tlce:;.3i(::ria.ires itl tl1eir ()r-:..s-r�::;ti�)!lS_

DECI..SION- C.T .A. CASE .NO. Yi!J7 - Page 4 - t'.venty-five /)f'r (PIJlll.l.iJ <:)f the spe�:=:ific t:r;;~ pa.id tlE�re�:::.n :;ha.ll be re-funded by t.lle Colle..::tor of Intern;::1l kevenue upon ::;ubmL::sion of proof of actual Lt::e of c�i1::: and under :::irnilar condition::: enurnerat.ed in .::ub-p:::~r:i.gr:::l.pl"!S �)!W and t~l�.lO c.f ::ed.ion one herec{ tl��;:. :=1t_1_1;:.r�1,.-lino- ,-,1- �-� �-� .., �.+l. L-;=, �. � �:�;:...-�tl�r�,t-1 f�.�_�.��1�1,�:-:�. hnt-1.--J��;:.,.-l 1-� ,.�--.�,r-t-'�-~J-t-�.�:.1 �,/T�(.��, ~ .L �-� �- ' �.� ��� �� �.� - .._.., �- �..&. �� ..-1 .._. �. Int.ern:J.1 Eevenue f=ode : if:o;.,.._,r:~ieq: fu.rtiJ-f'/: T1El.t no nBV�l road ::::lE1.1l be con::J.ru.cted u.nle:::s the route::: or Conunis:3ic�ner dete.rmina.tion that ~:uch n::.:::td C:3.n be made p::l.rt of an ar1rl r,-�,ut;:. in Phi1ir,r,irp .iI..t.. 1t.~...o?r::�::\...I.1 ... ... :-:~."ir~t-i... ,'�V �u1~ -~tt'"'d ... . . .... tj)A ... .... .. .r-� t � ... .... l... . ._. ... Hl r�;:. ,.-11 �c0.-1-1'-:I;�T��-=-n./r '�-:'::I~'i ��=-�� t.;�:�-.�t�-!-1_. ��=--1��-1:� �.- -. -1'�1�l�-,-:.:...,-.--l 1�11 �~::-�-;�:..r.-,tl..�,.-..,,1-1 _c�t--? t.-..,:.I�,--�Tut�l�.t-~1r .._, .L,. 1 of tlw Pllilippine HigllV�l:::tY l�.ct. of i 9:;j_" (Ernp1lasi:; :;uppli8dY F1Jrt1lerrnore_. J>re:::id-?.nt.ial Decree N�:) _711 (effo:?ctive July 1_. c:. 4 1� �~ �_!_} tl�,., t�- 'rl (--��t'"Jo.llT~T:1 L�~.I!!.�~.' ; 1'-�:~. 1Q.) ,�_) ). t-.�"1 ,.-:=�~T..,-;--:-j(��-�f-�..1. v ...:1.'~�~:a.w-.�- �-:�� T~-J- ��-:1.1-. r�t�t'��"lt" t ..-, L,;.Lj j-]�-l;:-.,i]_j.r.:��.t; �. .J . _� .�' l ��-� ..r�.-' � 6 ,. - 711 C6J:;oli:::;hing .~..:J.ll And r- ,_-'.i' .....-, '!.i'T.,T, 1._.1"_-.'�1.--_:.�. -..' !._',.r��.i,���-',����.�.�t� :~.�.�.�_.'��.�-��.r'_<!�l._.'�~�.l ~' - _,....... ... . -::: .. -'""""' .. - t~~.L� ''\. .~.~.,J�_J. -:, _~_.1 ,.._-�.�:...~,-~.r!�r. :~.. -~ �-:~. T�T���:-�.�-j...L':.".'. ,---1~ 1.�'~�l�l#.';,.-/� i"l"r'.�f.<�� -�.,+'i-1 .. "-.'.. ___ ,

DEL15ION- C.T.A. CASE NO. 3967 - Page 5 - rr�;� t�,�--�....�--�.,r� tha.t the a.dd1 tiona.l muni�:::ipa.lity or city pu.rsua.nt to a munir:::ipa.l (:rrdin::uYe has be-en in ttt-2 C3Se r:A Commissioner of Internal Revenue v _ nr-.�.10 Tuba Nickel Mining Corporati~n and The Court of Tax Appeals, G_R _ l't{)S_ 8.3583-84_. (202 SCRA 137). has ruled : in Sedicn 5, ~::ta.nding a.lone i~:: enough b:1sis for the grant of refund. :z x :z. The ::Jatut.ory grant. of a partial ,:;:.zernption from t.he. irnr.:{>~:e.d incre::J::ed :;pecific t:rze::: ��=� t�r-..-�t��-1 tl��.::. 1�- 1 -r~�l�. ��:-~�r-l�it�;:�:-�.��-=��t.� � =~ [~.J- 1� ������.�-t;oil�.�=--.(-_.�. 1�i��l� .::\:.::..�-tl� ,.-., 1-. c: �-�� 1 l���.-:-:-.~�:-j--(-lil.t--.~1~;-=.-, ,�.--.�,�fl.' �-� i��-� �-�� ....,) ._. -.... r..t �-� .1. _)_1 ��t l.::l. lt��=- P�."c'-�.Jr.��.�1�-�1.,.�h.. li.t. .-��.� 6J.~ �._. .,. .L ,_-~.:Ir_::). C1.'t..�.~..� t~.�.�-��--�, �! lt:c/�..-�!)..�. '�-j. c.�._,.-.j_ t.���~y� .nr-1.l���.'_"', T�J. -� .- t.:J. , t...,11.~_,rc...., i�:: nothing in tfl::J.t. provi�::~) Vlhid�l :::ta.tes tll::tt t~fore a t.-�. tc-,�,:o- ,-,!- !�..r..-~d~t-�I..:_:..r� �,,�_�.�:�_:.-,jt�l� �c-'1�r���..v::.<.���<! fl�r._.� tl�-..���;.:�:. .��:.=�..ti�lh�.t�J-. 1'.�-.l.-t:-:"���.-.+l .� �.�' th.::. �) r_:_:l,-g�,.:t� .r-�. r�,dll l�l.- -1 ,_,.. �.�L.!..'�.� ,:..... .i:.:.., �.� J. -� ���. t;j_X p::t.id on the c.J.1~; it. u:;ed in its .::'perations, tlwre rnu::;t fir~;t be ::1. municipal or city ordinancE:' levying :3.n �C:>.\.(.1...(..i.l'tJ�,-.,..1. �1 -\:..i~1 t:..-_�\ .'..-:.:'.. !"..i..(...)t..A.. .V. .:.(,,�_;..:.:..,:.:.:.. ,...-.i i...t�J,e-_.-, .�:). .C_:_.1 �=!(� ( �, +1- l-l}-1,::::. 1�-C,t.\;.:..:.:...o. .:..-. !-1-.".:-.:."...A. .(.. l 1-..~. 1 "' ... (\,1 .,_. Sectk)n::: 142 and 145, of the Ta.z Cor:ie . In fact. the entire Sedh)n 5 doe:: not even make ::my reieretEB to Sect.k:.n 4 Vlhich empov�lers municipa.lities and .:::itie:; t/) irnpos>?. the 8.(h:litiona1 ta.x on oils sold or distributed Vlithin t1wir respe.:::ti~le territorial jurisdictions. V;lha.t i:; cleat- therein is that the .Revenu.;:;. Commis:;i6ner s1H.11 !.~ ���1� 't1.1"1(-1~ "~J C__>',"-!./", (�".11" t~J�!-�1t�:�:�' �q-�r.�f:.t-:.:''-~.�j--f1" '.-��. t_.�.:._"_.j.:"\. T~�'~�71"lP..�1"1�t:":z� r\!' p�� tL� '��:_j_J+."J�. T;�T t._�..,.1"1.�--:�, nwntioned above are used bv� miner~; or forest. (:.:)n(:es::;ic,n::lire:: in t.11eir operation:::� and t.lle procedu.re f '-) 1� �.1� ;-:.�:.f-l�l!"l (�-i 1.��:-�� (�r��,t-f"l i1���,lt. ,�:-::�. ,..-J). ''(.l' l. ti-l - --:.7.- 3-~ Y. ... .1. . �J � - � - 1.-.L ........ [ l ~1~ ~1T1-"t,11 r� ~~ .-:-�1r..' '~:-:�.'''�-� t_. jI.},.,) t�-�~l'r";'j l�,~~:�:', T._'!_ '�:':' '�.)' .f_ tY,'/�ll '�t'-;;t"'l1..L.'~:=1' - '."_'.!' " fi!.'i)-t rt-'.'. "( '11 1� 1�1�11~'.�, 11";::�-:�, ,�--�i.l.l In'�' �1- .._::.1:.'-~�, ,�c-�. :-:_:..d;~::--:�, �..-�.1 .<_:,:',�:�:�. ,-�--�1J-..Ji. .'�--'�, 11 C:J ,-��-�,�f-� P 6 ... �.. ..l. J. . 1 .oP .. ... C:J., t.t-!-1;-:.-. (' l�-]�1r�'���1� � c.., . n! C. (._.t�_'.,-l-i�� l�t� 1-t.!-.1- "0. ._.,I -� - �. ._i LJ. .. ��..-

.. DEL""l5ION - C.TA. CA..'SE NO. ?Rb7 "Tt- r:.: :.,.-1 ,.-., t- t_J- .-��,t�r ,.-1p,,-.1� nr.::. .-,�lrr���t-1� i 1-1~�c-'� ...L '�" '� c�t� (; .tL--1 ~.~r~, c� 1.. n�11. 1 '�' .l - 1;::.__ �:'J c-c-11 1 '�' J. ��� 1 I 1-�� � - 1 .a. , _, L.L.... -� '�' ' � �' - 1-.�J�- 1 -�.l.L t �:j l ��r�ll. r�n c.� , (' f.'�PI-.1� +'lrl +t.+i .;.. :.:_-1. _. +'--.h. ~ p--� .H.. 1' C<t}~:.ll��~-l��~ll ....,\ _. ._....._._ r.1.i'n-- -.1 ._ ( )1. + ';,,','T~�;-:j-��:-�: t_. .... .., .�. r_._}-1.;_".-�,.'.:J;?._;.. t-1,.-l�-- ._ ._ .... . _ .; , :~1.bo1i:::hed and tr::H�1'::ferred to the Gener-:3.1 Fund bv f>D . ' No. 7 11 '/.fhich toot effect on -T� t:d�'v 1. 1Q-7C-:�). . The Inte1;nal � p.:.~7P!1 1 P Jl..l..._ll.,...)tJjJ.P.. nt�.�;:-a 'c:t r.�....rma..1. 1�~~-(1 � .. ... � ... '- .... .prerJ._:.ared bv the E>u.re<:nJ. ot Internal Revenue in '-.;,�.lt.tl-1 tl',:::. t1�1-=-�t ( ;::.(�t�,:::.e �=-t�l,-J'�t�TP.(l -;.(.,.-�(,!-,.-1�=-~t�l.-��;::. '.J. -.� .., '�' '� '-� �-� '-' 11 -� � .t' ~ -.� fr�� r�.v::.0o~-�-.�, .iLtJ.�l;c=f, ...,1t. -.. v .._. .., ._rL . / "' �~ .� CJ. .�. �. / ~P --�-nt .... t.t.1)._ lH1�..5.,.1tl '�,�'�,�"'(".\' .)'. .<.::.�'1.--,.. ~�-�'�---�1�_�.:..t,1 � � 1�-1� !ld1� � l,.. '.)!. ...1s.!1�P-"- A.., -..d. l�t~~ p.,.. ~~.u.t-,:rJf..,i..:-;' n�-.-_. i~:::J '~t l�-1 '=:':' to 19 �~� 5� a.nd V�t:1.t: dw.nnelled to tl1e General Fund onlv' in 1(.);.:)6_ It i:3 not cle.::u� Vlhy the HighvvT:3_y Special FU.n(l v-r:t3 r.naintained .fo.r ./(' .V.PaJs after the effecht;.rity of P.D. No. 7 11 .:)r Vlliv i t ,,...,;r::t:: a.boW::hed in i '366. Tl1e st:1.r1( fact remain:::' t.11at it retained its :;t;:J.tu:; ;~s a. .spedJl fund up to 19f�5�- ~tVitl:t the f o)fe!2-�)in'2� Gonsi�:ler::'-tion_. '1'le c=J.nnot f_,) ,_. therefore :;ta.t.e V�?ith definiteness that it V�l:3.S P.D. Ni). 711 71<\ih.icl1 impliedly repe:3.le-d Section 5� of R.l.1" � No . 1435�. "He c:;:u1 hov.,;r,;.-�~~er ~:afely '):)ndud>?. t11at. Section ::. �)f lLI2.._ Nc� . 1435 i::: li':) \V an arr:v~11roni :::m b>?.cause tl1E- Higl'l'/-t3.y Spe�:i::1.i Fund. ::}.iter e:j::t:::. Th e r .:1b::.ru:.1-s- f �)r the C.:)urt.'s ,�.-�l;:':J.,.�-J�ic:i__ _,_..�-~��.t-1... (-. !;��:� .Wl 'lW... ;=', r,:::.�::���..-'fl��i� t-n �-� t.'L�-1 ,:.:, ir..-...r. <1o:.J�,~_�,_l,.-..,.:.:., ___ -�r-� --- ._,-:.:-:l.�i��- .t-' -o-::- h�-:-..:r, <Lr-1 r�b1. --� - �- -- .:.�-�~ f r)1� t-,:::.fprl..-1 1...r~ �~ � __ - � � .;.. .__ , , � - �- �- � &. - - th::Jt tJw :::pt-d -k t3xo-:: 'n. t~�Jo-~:.<? nBnuf:Ci�_:turc;.d c�il::: t= ai.J t�y tJ1'?' mi1~m~: and t.1r:nb<?r c.:111pani-� :: n.:�� 1.�118>C"r ;)r:��::fiJSJ t) tl"le Uglt".�,i.::ly ~pE:�:.ia.l runJ. f.u.t �~i'lE'L tl:.t:::- ;;,. .. �'�..�'-..+�l'�J';-;�:�.�_1 1 1 1-.-..�J;. t'�r.-t.-(..i-_�i~� 't"1 l;;_:-;,,tl-l.-'.l��J-._./. .:~:..r-t�:"-'�-1'--:t1 -- 1_,~_...:-.�-1---:�-�t~~J. -1.'--."-.7 +t:-..L!'-.�:-7 .t -_;_:..1 1 i~ �... fin.:u: >?.J t3:::;.�- stlll \';�hi,~h ~il3S b~� 1..1:9':'2- '3.t..�<:..:~tfL-:: ' 1 op,::::, _. �� -.� -��_I 1 � �t ��.:�!1 (.~,�,t_�1 n,::,.���,lit.-1i::!,;:., 1> 4 r- 1�tJ-.l�J� J.c->. <..i. 1-1� r.1:�- i.�, h.:, 1 1 1 �i -�- �� - t- ~�:�}- 1" � ,.,_,. � 1 .a. 0 : 14. ._ 1/ -.1. � .&. � � -,� if '�1?.::-r,:::. t(l 6 r n.-�. f,-���r r�,;�i�nt;::. th,::. �-'l��� .._ ���� J.-� .i 4 p:-c-n(,tvl.:.::.n~ \�\~.:.::. !111 tl"ti I 'v .�J. J.�.� I ' -� .� �.� �.,� �.�4 . ---- .� -, �~� "J' _ '-' '- � �.r -- �- _,. -~.1. �.�

DE:.CISION- C.T ~A... C.E;SE NO. ~~ P - - f-l�;u:Jo-e "(7 - ;:_l.�l�l c.i 1�1-1�.11;.:_:.. t1_.t-1;._1.. t_. t"�r-1.'1. n.....�11�1u;~ �.:_1.�.l-1(._! 1.._-�.,�;o="c;~r<1�.�!1.-eo (._f. .�_,. t-.:..-lIn-� �':-j�.1�-.1,.'1;�:.:�.�.:_;. .q__!�� e...J:. entitled to t1E� rdun(l _pri"~liiege grante(l i)y R.A . :No. 14_3,~; on specific taxes paid. up to 19�~� ~) ~m rn:JtEtfactured aEd diesel fuel oil:::. The specific t.axe~: on oil::; �vv'hich Hio Tuba J:.�aid f..-�.�-,�1� t'-l�l;::�-.� ��:-1-- -L��-��,r;:�:-.� c�-�"�:-1� i '��-i 1~-�-, ;�-:�:.ri(.,�,��-�i \.i,.i.A, f P�-� nr._�) 1.�--��,no0;:.,:.r 1-���,��:-1�e�-;�,:�:.:�.,.��-i ,�--�.-,tl ttl;::. .-1 �-� r;::1.ts-�:; sr�ecified 1)'l Section:; 1 a.nd 2 of E.i~L. 14 -~, r:::, t)ut f .L ...... - � on the increased ra.tes rna.nda.ted. under Section::: 1S� .~) ;;:md 15�6 of the Na. tl�~mal Internal Revenue Cod'2. �A 1977. 1Ne nc�te. 1lov,;rever, tha.t. t11e la.t.ter 1a,,.;,! does nc.t specifh::;J11y prc~>.:ide for ;::t refund to these mining ;::md lumber cornpanies of specific taxes p:::l.id on 1Y1;:un.1facturecl and dies;;?l fuel oil~; - ; 1 .-. .-, ,\._':(�--�D.r::.~.!.L!,~ 't71 (�-1� [ 1 (i~l] .i t���1~1�~-� ( �.-',lf"f� 1~1c�- �.)- {�-'+l t-�l } :�-:��l.t. . t-�t~l-A�-� I, 1 1.) ~) 1 :-� 1._} �' .� �- ���-� .,1 �- ;::nJthorize-(1p;:u�tial refund u.nder :;ect.ion S� of R .l!!L . No. 143~, partate:: c�f the !Etture .:::rf a. t:l.x exemption :tnd therefore cannot be a11c�V�led unless gra.nted in the most explicit a.nd cat'?.gorical lan:~uage . Since the t�,;::. r�..-�,r!�:�+t�u,;::.,.-1 !-;::.1-lln(l r-�t-i'I1 1;::.cr;::.�:: oT-=1!-l"l" ..--,f t�,�l n�:�t ;~4> \-.. ""-� .1 .., _ .... ... -� .~. ~ .......- ;::, ��� �-� .l "" ~--� - .... s +f.t..�..l.� .(..�t..l-~l 7 ~- ...-� ._tl"' ._. ... .�. ._ ag::dn:::;t. the t::1.zpa;.1er, Uw t::Jsi::; fc�r tile rduw:l sha.ll be tt1e amounts aeern�-�::1 p:;;.Ll u.n.Jer Section:; 1 :~:;.nd 2 of E.iL Nc� . 1455� .. 1 s.-�.1 �-� �~-:��:�-~��.�.---�1�--�.iL .'�-.-�t .tl.-.:,.c�--� 1 -:it�,,�-1 �) ,-..,f ~1 i!, - il -~ c_) r-. t�,.-�f-cTi,��l;::..� :_ ._J.,L'�- ::..... ��-�"1. .L '.. . l. .L. __ .1 1.!. '�- �-� . .1 �sECT ION L Section one hundred a.nd fc�rtv, - t-.;lolO of t11e Nat.ic�na.1 Internal Revenue Cod-2, c\::: ar.n~nded, is further arn.::>E�.:bd tc� rBad as f.-::.n.-::.\.~.,;s : "SEC. 142. SDe'ilic Tax t-'11 J. ma.lluf. ~-tlli<$~ tJ'.li-'i and ~'>tii>?.r f uels. - ':-'a 1>::-fin<?d an( GEnufa'tnred winera.l oUE:

DEf76ION- CT.l\. CASE NO. ~~ c-1��--�11 :�_:t_!�1'��-�1 rr..-. 1�t.�_.l!+_,.�.-*.~r- f1_'J�.t-::�.1�c-'�.. r'.�.t!�l�'�=�::'t!.�;�-:�. �-' J.r:.l. J. tt-,-��.�:-:�:. '...�...,..�_.,_11......:.:..�-.��-.t-.�:��:-.�.-��-�l (a ) (t)) Lut�rL:.Jting oil'::_. per lit<?.r c�f vc�lume c:3.pa.cit;r, seven centavos: {,-. -., Napt11a_. a.nd :t.ll \ '�-� .r .:A.lwr simil:tr prod1.1.cts c�f distilla.tion, per liter of volume ca.r.::o;:tcitv. ... ei!d,_�tllt centa.vo::;; l� and (d ) ._7 "t r 1!T '..lt':-"~" A'#: 7' .. ,.. II .n. ..:~ .� ~ i.'-:. � �sEC. 2. Sedkn cne hundre-d and f()rtv-iive I r' f �-I 1 n ar-- "lA �"l ._.r t.-tl-i.l.:-:.! i1\fr~::.,..t..�J.'.�.")� t�1�.:.1, _ 1Tl�,.�:t�'�:�:�! t"t"1 .~..:.:.. ~..f--:�:T:T'��t"~� t�.,a.p�-;'�:�:-�, (�-'�(�..'.'(d"...". _, r:.,:. .l:..,lt.l-.�L� ;-!.>� 1"l (_ �-�'�.. _, i::: further ::tmended to read :3s follow:::: -sEc. 145. Specific Tax c.o .Pi.es.el Iu~J t.,H On fuel (._�.,..i.l.. .. commercially knovin as diesel fuel oil, and on .all ~:;irnilar fuel oils, having rnore tt1c:.t�e:. '�~-�11� 1...:..-�cJ!��t'-<I'�\ p_..~.-1':�:�.' �c-; �~=\>t�!�!e�.:.,. ;.:-:r,..:.,-t~��L.:�..:_:..t�:�~_ t_t.-�t4.-tv-�E.-:� rr.-�t�-.)- 1,~"!T�-e_:,.t�'-.�' J. �.... ��-� s11al1 b.;;. co11ected. per metric ton, one .... .._. �\.:.11�1 ,".-'l"' 1-�.~...�.�..:..�l\.'.l(..:,>- I! ' ._1. t .,.-,1- ti' .:>�:� -1 \�:.<.\ 1�1�1 \-,�.l. ..r. ,.:.;.... 1- A..... (...�. A.... t"lt- (...�.�.:_<\.c,.�-A... 1�!-JT\ 7'(-�',}i�71�!.1C._i t1�1,..;..,. �~:'l�.:..�\+l"J"!P... � C.!o the Strpreme Court ruled "that since Atlc. s's clair.n :=: for refund ��i t ro 1 t ( �(�,TJ ut" ""''-' 'l �._. .~--rr-�.� .�.:.:...!.-.�_�.1�1�1�I...-_., +1.--L:.-.,. .~.;7:..�t�;-' .c_-o _rt..J.L~.\ i� 1-. .1.,_-,.!��'..�..- "' - \:I~,l:.) c_.),_, . � r0-r'l�"'.,,�ILl1r�.t._" t--.~-;>_ '-.-=_... r:~,�_!\J.Ll-.-;,_-(} ..l..1["i0-. �,:::.1-,n.�i 1 1 �=�n.::...--1-fl',:::.r} \-.,-:;..--A.- h<:. --.t-1 '-, ..... \..I...... �... �(,:::\-._1)�-:1 ,)._. (-.�1� .P1"��...';..-..} . t- 1 .. --.1..4 �--� r�:-.t~-.: .... �'' ..... ... .... - t..V... .T,v .�..:..:...A.....-tJi. (....-,!-1'._~t C...\.:=t .....~ ..... ... 1:\ ....- ..... i -��r� EC�ttgl1t r_..c\ !- .. r� .-. ~�1�.1�1.l-:j 1 \... ~.... 'L-iJ..-i.. .~-. 'L-~.t-.,;�-:�.

DE..CISION- C.T>L~� CASE NO. ~7 - Pl.!:ge 9 - July' 1976." (Commissioner of Inter nal Revenue v . Hon. Court of Appeals and Atlas Consolidated Mining and Development Corporat:i(>n, G.R. No. l 06913; May 10~ 1994) Court.. the onlv,� th in,~_;:,� 1-?.-ft for us tc� do is to det-?.-rrDine the amount l�c� ""t�rt t.t l'-'��l t ��� 1 ,.,f�-~�.1. t �:, v .~_.._ ..:;;;:, ,-.t� o=:. 1��-�l i t 11Jt�1 iL'���-��1�1 rf>.,..�:�:._:.. +1.--t.t��t�f�.-_�.f t�lt�:;�" r� �-' '�,� -- �. -�- �--� -... �.�.�.I t~.�..r.,_:,_.c�.;�o�=-�:-�...-,1.,. �.�.-��.,"l,.J,.. '::' .::. ' r1� �����-��' 1��1 �c-�' .a. t' ,� _[ ��� � ' --' .Z. -� L-' '�. �� .� �.t a.nd 2 of E �.~.~�. No. 1435. Hovl-?.-V-?.-r. th-?.- a.rnount r:A ta.x cred1t. s1B.11 1j-.~.-. !1iut�i�1�1� t�.��>�:�::�''����i +t.-J-.�..1 �.:1.. c_) .�.:-r;;;�. �.'.>~!- t..-.L�->,:.:-:.' .c_.1r_�.'''�:7��'��-1� �1�1��..-.. t.-�:-1.�1,r~�' ~-� .rt-�-�'-�:.�..t� '��-�l- tt_�.�,/r 1r.��>�:�7�t.�t' t�-�i��'��.�!t_�,�c._.. r� r�t�r.-.l�".!1. rr ��P._...t, t.t..l.�.,-�-.l+d� ?..,:.f., ~1..�}-1;:..:... (_-.��,-����1-1�.!��t.� "�::'�.-t��l�t' u.,;:..:....-..�1 ��-:1�t�� t..1. �1P... .1.�,_-.�,11���"-1� 1.,1,11�!.1.2-.., ,.-,.,,_�.,!vlltr,�,l_J�f���-::�...1...1�,��-.'t�1 �r..�.,Jt.l t,l�1P.... COMPUTATION OF THE 25% SPECIFIC TAX REFUN'1ABLE PURSUANT TO SECTION 5 IN .RELATION WITH SECTIONS 1 AND 2 OF R.A . NO. 14.35 1_. 34 l .r t~:~f,7L l)_C,fr,/ L 1(.!7} .~:, S� t�. ~.tf, 1f.,{,O OL 0.07 ,/ L 1,260 00 lf.. i),)O L 0.06./L 1,44 0.00 -~~~. ~~:f::: 7�.:IT l . t) f)/I~l!T 1�~~.�:::;(:) 7 c) !) T-.A.~1 1 :::r,.:?cfic T:c-s-�:. r-ai J u.~�~.,ler

DEDSION- C.T.A. CASE NO. 'RJ7 - P11ge 10 - t..-. J:l.:.::.c-r�.,.-�,n ,�l;::.t)t f.C~...,..f ''Lsl..".l"l!AJ. 1�1�1� r!��,'.:�.-:�:.'t�1��.t;..1�,.�--.�, f��,'-.:�-:�:.r .1 "'1. �--� ._: .:_. �- � .ir..l �- �-� ...... -� i� c� 1i��!.:....:.:.r�.:��.-:�:.�[_-.,. ~~�~ (...;f�.r....L.. .�-:�:.Jt._�.:..:.:...,���-l - � �-�� t"�:>< ,T.-��� t" .,.r_..�,1+ � -' ,,:._1, �, ��-�.... . r� -.�- l�";(��: 11. . -1 ( 11 ��-� ...�J 1'�/' r~-���� 1-1� !"�(-��1"i.J�:.._�:.�;�:.:�.�.�--} .t.".r.".l .�:J.�t"l 'J-�l�f� -.J: .�.--��.t.J-l!�";:�:--�,��-1 1''JO'- �:.�-:�:.lc�--�.. r�-"�il'.i.c._����_:..p.1� .. .�.--11';�:-�:-�-c�,:..:..1l r--�'J~J. t-�-.=.J�J_]'�:�:J'. l t-� suit SO ORDERED . WE CONCUR: e:.' K. GRUBA CERTIFICATION ERUESTO D. ACOSTA

ANNEX " A" At l a s Co n so lid aLed Mining a nd De velopment, Cor p . Pur c h ases o f Hanufa c ture d oi ls and fu e ls in lit ers e ntitl ed Lo the 25% refund under Sec. 1 & 2 of R.A . 143 5 Dat e AV Gas Extra Lubes AV Turbo Diesel 1983 6,000 10,000 2-, 329, 378 Aug. 6,000 102,000 6,.000 Sept. 6,000 7,330 66,000 Oc t. Nov. 7 6,000 76,000 De c. 1984 1,330 7 6,000 6,000 4,921,377 Jan. 6,000 6,000 2 , 202,642 Feb. 76,000 6,000 G'�O, 9 20 ~1a r . 7 6,000 3,537,414 6,000 Apr . 6,000 66 , 000 May 6,000 26,000 June 6 , 000 10,000 July 6,000 56,000 Au g. 6 , 000 -s6,ooo Sept. 0,0 0 '�6. 000 49,9B7

ANN EX "A" page2 Atla s Conso lidat ed Hiniug a nd Deve lopm e nt, Corp. Pur c has es o f Manufact u red oils a nd f u e ls in lit ers ent itl e d Lo t h e 25% refund under Sec. 1 & 2 of R.A. 1l�35 Date AV Gas Extra Lub es AV Turbo Dies e l Oct. 6,000 '~6 ,000 6,000 2.,582,63 4 10,000 6,000 16,214,365 Nov. 12,000 20,000 De c . 6,000 40,000 1985 66,00 0 18,000 18,000 Jan. Fe b . 6 ,000 Mar. � Apr. 6,000 50,00 0 May 12,000 J uue 6,000 50,000 Tota l 6,000 50,000 6,000 60,000 26,000 144,660 1,341 ,98'7 Co n v e rsion o f Lil ers of Die se l int o Me tric Ton s : FurJUla: (Diesel i(t. Lls. x Specific Gravi_~-D- 1, 00C (16 , 21~ , 365 X 0.0429/it.l ] ' 00 13 , 667 M of Diesel L, :� . .