CTA Case No. 5028 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY INTEL PHILIPPINES MANUFACTURING. INC .� Petitioner. - Vo:7fSUS - C.T.A. CASE NO_ 5028 COMMISSIONER OF INTERNAL REVENUE. Respondent. X- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - X DECISION Tl �::.F--!-�;:::.�41 tr�l;:::. -11.'.:.�. 1c._-l ��:::\.z-1 ~\ J ).,..\., I�-!-rJt-11 v .. ... t.f..;::..:...ct0�=.�_l.�,-.....,..1.. -1 t�I� r�l�;j�'.c_.,r..,�.....).-�t.�.~~j�t�:�'!-.�lt�� L Commissioner of Internal R�':.renue denvmg petltioner's claim for # �-� tax credit m the amount of P2,701070.05 eqUivalent t::. tl1e value-added tax (input tax) patd on 1ts dornestic purchases of goods and serv1c:es for the Denod covennQ� Se!r'" )temt)er 1, i ')91 to &...} 1- ' L Novernber .~:.o, 1991. r �"�t"r� '� rati .-. r:...,.,.t �"� �=�t t\�. �"� r"V .1.f~...Ow +"~l0~:~:;:.-. 1��_=: ;~:::\0 �~,1�...~~+~"!"lt�":� ....� .1.~......~. "�"-��'J .til..) t:'c. ... \):;' .�...J,+l"~1 .f.." ~. l-il�:�i- ~. 1"J.;�::.:l....-.1� T"'"T~!�tl"l .J.l~ Board of Investrnent (BOI) as a pwneer enterpnse. .Pditioner 1s Pnmanlv� engaQ�ed 111 the business of deslgninQ�, v v develor)rinQv�, vv manutact.urinQ� and ex6 norting ad-.:lanced and larQ�e-scale mte2Tated �.J [" I..J I...} �-1 ctrcu1t.component.s a1so ~t ':nown as "~v�L~, I.. components or "Il-..'s". It 111'* _.)

DECISIOH- C.T.A. CASE llO. 5028 -2 - is a. V._I.!.~T re2v "istered entef'!~)nse 'tt'lith VAT Revgistration Certificate No. 32..1.!.. - 3-002649, eifective January 1, 19�33 (E:-tll. D). It was able to secure a certification from t11e Bureau of Internal Revenue (BIR) tl1at it is subject tJ) zero rate value added tax on its export �=�p<�l"l c-p.rvl� p-=-�l�d '� �cJ-�~:1l�c.,..,c._�~ w�,l..J,l..~, rc.._.. ._, J.. � ._��,. t~..c.r.vc..-.�tlc0rcJv"l.'..�..'f1..C_, ~.._.t._ -p._.. )u. t"r._). r� 1�1-1 Ca.c�f~._.�t:;�' r}-�..�..rh...ht.1J.t: foreign currency invv�ardly remitted to the Philippines and duly accounted for under the regulations of tl1e Central Bant pursuant t}.) Section 102(a)(l) of the Tax Code, as a.mended by E.O. 27.3 (VAT Ruling No. 102(a)( 1)-402-,3�3; E:vjl. I). For the period beginning September 1, 1991 to Novemt)er 30, 1991, petitioner's export sales ( 100%:) a.mounted P2 14,2 25, 169.30. This amount ~h�as inwarcll;l remitted under Central Ban1~ regulations anr::.l '~V�as received try� petitioner in p��=-1� ��J:-..v,.v-"-,V~c1._n..t:~-:>Jl.��_,.l. .c":. l�v��t�t::�.-.�1.bCifl C._l.-lrt�t:�:..�-r�I.�,v.�v � For t~-l~ c-�:<t�rlt::- 1r>..;t�:..:.�-Jt.�t�<..,�,...j..� .,t.".";v.c:....t1.t1�...�.�.)1~~1tv::-r ...��:J. ,-.-_l+ 1 '-"4 ... ._,._1� .J..&. �..� tl ,..,!� �l.cv:. 1.!l..p-llt t�..:-\...vOc.v.oc..-J (-'�� !"l 1.t~c.-J (:l�o~J�.r�l.vc:v.c�t-�1���JA n1.)~"_l:1",-v"�1"l..'.".,.'c_-.t;�'.,_C..� ._. '"'tlr it�l Cotf ..-J��V�. (_-.I...c_�. IJ, ._1.f. -�-=~��-t�::-r~I;rJi.,�.~.-�t:�::�f.c_-. l. the a.mount of P1711,3�32.91, allegedly representing tlle input ~1irec:tl,v attributable t}.) its zero-rated sa.les of P214,225, 169.30. On December 20, 1991, petitioner filed a Vi�J.T return for the tl1ird quarter covering the period September 1, 1991 t:) November 30, 1991 showing an excess input Vi�J.T credit of P171156J77 (Exll. E). On lvt3.rch 20, 1992, petitioner filed a.n .!!.~mended VAT Return covering t.lle sarne period l)ut this time sho-vving an excess input VAT credit of P319 15,552.35, including the input VAT carried over from previou~: quarters atnount.ing t(i P30,203,669.44 added to the quarter input Vi�~T of P3,711,.5;32.91 for the period of September 1991 t? November 1991 (E:jl. E-1 ). 1115

DECISIOH- C.T .A. CASE HO. )028 -3- -.t't' .-.. tl� "� rr-�~. 1.1on~t !"1'1�t1�o.d.. vv1't.\.J�.l BID .. c�l� ��r� . 1~ r-.. C.�!l t~\1�1!-~-.".�1 -r:.�.�t1P�:��:..t~��.-:tt~��~� (~'�(~Jc~.d.-._. v 1.c_-. d~.!"1 ..5._pplication for Tax Credit/Refund (:.f Va.lue-Added Ta.x in the total amount of P3,675,4o6.07 representing the input \lAT unapplied against the output Vi�. T, itemized as follc�~Ns: Exh. Date Filed Period Covered Am�:)Unt Exh. F <�-1:)-92 Sept. to Nov. 1991 Exll. (.T .':",..,...:,:.:..Jr�t0 t:J I\lor.l. 1991 7-24-92 Exll. H Amended 7-24-92 :\.;.nt t(' -""'l*"v N~v'w�. 1991 Out of tl1e amount of P:3,675,456.07, the tHR granted and issued in favor of petitioner a Tax Credit Certificate (Sr�l 00 1M19), ""t�ct bp-1�1 1.11 th;:J. ...,n1�'11nt h1� "rfi�- j..._ (.1. .el.._. .& .L �.11 {-.~.��"h:�'} l("j:J()";�.J"._;)J. J.!..,.. .:_1. .a. 1.) -� 1.) .Tt"'�V~~{"":}j'L), �' ~,..(,;. � 1~.~) . r���~� {�.R.&.~.a~~"~il1 . �r��.:~ . .i. .., f::." -..} L, balance of P2,7(S107(LOS is still being claimed by petitioner as a ta.x credit by ~Nay of this petition for reviev..r. Respondent in response contended that the claim for t:1z d1�t (J �sh -d t.l' -� �.-. - �vlh -.~-.._ e 11:�::_\...;.:.. h>.~.J�~-~n ~��.�<�'r:l.-.l�.lllr.)J.l Upt.~!~t l 1~ 1-:..;:.Ua~t1����-��'�V�' �~-}+l T�.3.<�":�.. (~�!--'V-''��-jL�t Certificate No. SN 00 1()69 in the amount of P&92, 40f..02. Tlle . the sa.me V�TaS reimbursed bv Intel Corporation c.f Delav�R.re, ~ US �\ th;:J.l�r .. t:.l�-r . .i~. 1 p�ur�-�n�::~nt to~. A.l�~ ..1',\llC~'..nlJf.::1-l.iv'tUr1�.Ln(bJ .t'J�.:b::rrt~:;':vl.l.".L'i.a,.�:..:�:.Ilt.r {R~,~1 f~.', J.J. ."J.),. ., ,j_.. Q. � \J..a..:iJ.J.. �..�_a. the foreign currency received by petitioner ca_n!l()t be ccmsidered as a consideration for tlle export sale sut�ject to zero rate on the qv round that the transactions involved sale of sen,ices. t11at. is.. petitioner is paid on the ser.,..rice rendered ft')f as::;embling the silicon v.,r.:J.fers and piece parts into an electronic integrated circuit for Intel Corp., U.S.iL Thus, for tlle services rendered and t11e �.1116

DECISIOH- C.I.A. CASE HO. 5028 -4- d p.-. �d P� t~;.".",l<l,."[.n}"...t:' >tl.CJ"V~C�J" 11"1V;""1Jr1.'."..c_:..I 'l�"� }t:;:Ih..,Jt.c...i,.J..~VJ.t::"r 11-''/Ya.:.:<t..�:J- tL"�,:.::�.1� r:I�lt~-...,-l-lt"C�J�..~~� 1.11 ,:> �I.:_:<.I,.-V.(�.-�_..-t.;"~.�t~�-:~;.;.;".t�.�1l�..� foreign currency by Intel Corp., USiL Ivloreover, it is incumbent upon petitioner t:) show proof tlla.t the t:;.x subject mat.t....s-r of this case was erroneously or illegally collected for claims for refund or t:.t.x credit are construed strictly against the taxpayer. even a.ssuming that petitioner is still entitled to a t:n~ credit on the remaining balance it should only be granted tlw credit of P 1,722)66.0 1 instead of P2,76107().0:;\. Thi::: is based on tlw claim for VAT t3.X credit of petitioner where it ~..vTa~: reported that out of the total claim of the amount of invoicing regula.tions. .._.!!..nd since tl1e arnount of I\)92,4CH)J)2 has r"�t� bo"l;T i .) -�-:�"Jlf�t~;-''�:.J4.'~-}1,.l \..~.,, :._,. ,�-:�,11 �~-=�J',iJ~l'-r�'i!"d...:..>-t...l t�.:._-_1...y... (-~� !�. ~_.-\.-.1l-.ii. t-� t.h.......:. >-~ t",:>!"I"1'="11. .t.."ll�z�J�,.;c=;� I 1I,1!fT3.1T �._:<. _ J. "J .... balance t:) 1)e credited should only be P 1,72 2,766.0 1. claim for a ta:{ credit of P2,7a3/t7�3.05, representing tlw ba.lance of unapplied input taxes paid on its d�.::otnestic purclla.ses (�f goods and services for the period Septernber 1, 1991 to November 30, 1991. Tllere is no doubt tll;:.:tt petitioner is subject to the zero- rated VAT on its export sales after having cornplied ""~llith the 1-,--r .-.. t1��,:, IR l�t-:�,:, !"....:.>�t~llUl�t-,'-:",1�1�1.,~1-lt r..J !~,._-.,,._:.,t�t..�Jt. �l� t:,:"t-.1+ P -7~z'J-' ,~,..-..t�-:-�:.Jt..l..�f-1Q0"J ---�v1l14- {\Lr:v...:tJ-.1 . T.) �:c.c kj.)r;/ r ..� .&�.� -> a. .L � �..A�-1 z����r-p t1"1C tl��-:..1.. H\~J~"v~'v,:v>~~T,�:J>r, t:::- J(�J�zl~t"i7~nt_. ~vcVTi�J-. nt�'.�J:�tr._l tJ~.J l�t1�1�pJr~�'=:c;'.-....-.~� 1'-l'Tr-"'f�'-1' "l ~ 1~�-� tj"_~~11'..1J.!"t_. � lo.l.- t..h....u,J export sale of petitioner involves services, a�~:�- per the Manufactu.rinQv � .l~�..2Teement entered into between lr-)etitioner and �.J

DECISION- C.I.A. CASE HO. 5028 -5- IJ t"t�lc-t,::,�:�d o .. . I .~1~lv.,~.....l .(._".(���tT1..l. �~- rr--~,"1'.-.�.,.~.~;rl�"..t+l~A� ;�"-l .w<:: .�i!..~..1 C::,::,.-��tJ."t)t"� v�"�t" f.-�-,!" 1.1"1 r"f(Vv )�(.Alc�..�J 1' (_)(_) �..J ..A,.o._.. '='IC .~. �-� W�.r .... ... .L �-��-� of the Tax Code. The provtsions of la~A-T apph(:at>le in tl1is case are Sections 100, 102(a)(l)} 104(b) and 106(a) of the Tax Code v1lhicll provide insofar as pertinent, as follo~.vs: �sEC. 100. VallJe-add-ed t.ax t?O sale of got?ds. - (a) .Kate aod base of l3x. - x x x bv� ( 1) Export sales; and I'.~J) ,~. �Export Sales� means the sa.le and shiprnent or eiv"'f"'iort:ttion oi goods from the P11ilipJDines t:> a J. lj f .-�l��,::,<crtl .-..�.�.���-J-lltlt.t�~I;rI o.f . ., :=;1"11f_i1)1�1-1Q. 1�1.t"AsnP..-��ti1;r>=> ~_;;_---~--~~,:.�:.::-�:.::���;.;:;���::...�:_:�-::..�_:::.:-~_;;C=~?.-,-_-1.�.1.~.;::-.:::.!;1"'~"'"'""=;;;..~ �-�l vlo arrangement tl1at may be agreed up�:)n 't~..,hidl tnay nfl11 r th -- t��-:\ r� 1. 1� A-- -- All -� ._. 1-.-~ 1,) tlA 1d._Pt��-�.:_,:;;:.:~.t-mt� ... .�1 1:::' .-1 t:�. r1��~=�1->�.=�>r� r._'J <)' ~~~v��lJ1.t-:�-: t~�c�--111' 1.rI:' !-..-) tl1e goods so exported. or foreign currency denominate(! sales. �Foreign currency denominated sales�, on the other hand rne;:nls r�,t� .-l o�l� "c�J�r''-l�lP...�.,=�-�� t_-.1.~._) 11"\')11-l"P.���=._-.l~\�l.JP. ..�l"ltc._�, \.- ��ic� i~(-\.~JI.~�-J\. �J ~~j-C�;-C�"-f�:�!�t_"lll"����l�l":�1'-.-" _ rnanufac:turecl in the Pl-Iilippmes. for de1i\.re.ry to residents in tlw Philippines and paid for in (:onvertible foreign currency remitted tllrougl1 the t�anting system in the Philippines." (Underlining ours.) �sEC. 102. V3ll1e-added l3x oo s3le t?f servit-"'"t?S. - (a) .Kate aod base t?f t.ax - Tl1ere. shall be levied. assessed and collected_. a value- o t��� y -� ��a(:l<J...,.:;".".'---.+~ ~\..... ~.�.-�'11111�T~T...�..f.i!P, .I"I.t.., hJ-_ 1 o,�/.J. t�-;1� ic=.�-r�v.�,.._::-�l=.j� r�,:.:_:..~-.-_.-t�:-1�nr-t�s=� derived by any person engaged in tile sale of services. The phrase "sale of services" nwans tl1e perfonnance of all kinds of services for others for a !"1���11', f~-,�:�;-.�} 1�A...-.. .~1.'1.": "l'JI. l'f..l. Arratt.�01".1 ~._)1� r..-..r._')11.:�:.-J1�"~-..1-J:~;!ra�:t1�I-.�_-.�t..l .. 1� �.............~..1..1.t.a.lcol t-tl-�.~)..;-s.A�-� .111&

DECISIOll- C.T..A. CASE HO. 5028 -6 - perfonned or rendered by construction and service ,::ontractors; st,xk, real estate, (:.:)mmercial, cust(.ir.ns :::md unnugration broters; lessors or person;::t.l Propertv'I �J lessors or distributors of y,....inernatograDhic: J. 1_1 films; persons engaged in milling_. processing, r-!�10�:>. t-1U1.\1���:>:J.t�����t-1�1-1�1�1-1C'=f' v'�t� 1�".::1,r">-a"hl'r1'-�1-1C;;:i. c,-,-;J,~I.,'.;;t-l�c~�� v1��~1- v'��'"l1- ��1'�:�;�'t.�o�:--�, �::.1�1.-l v .... similar services, re'.2_,�ardless of Vlllet.ller or not. the performance thereof calls for the exercise or use of the physical or mental faculties: Pf(�VJd&f~ TlEt.t. tlw folkw.Ting .services performed in the Philippines by VAT -regtstered person shall 1)e subject to 0%:. ( 1) Processing, manufacturing or repad:ing g�::.O(is for other persons doing business outside tlE- Philippines V�lhich goods are subsequently e:;-=.1..u::.rted, Vlhere the serlices are paid for in acceptable foreign currency, inwardly remitted to the Philippines and aco)unt.ed for in accordance V�lith t11e rules and regulations of the Central Bank of tlw P11ilippines. �sEC. 104. Tax Credits:. - {a) t:r~dit..:JlJJe input tax - x x x. . (b) Jixcess tJlltput o.r input !.ax If at tJ1e end of anv taxable quarter the output tax ~ exceeds tlle input tax. t11e excess shall be paid by the ~lAT-registere(i person. If t11e input tax e~xee(ls tile �:::.utput tax, the excess shall be carrieti o�ler t(:. the ::;ucceeding quarter or quarters. Any input tax attributable to the purchase �()f capital Q"O(idS or to t"'���i ��1 --..t '~�?-A�f~'...J-f~,:t .vt_ ~~o-".'l�A-���=~> b_~, T1 c.-..~.. V,. l1''i~1 - f''JC:::!f._l��-.;�,t-_.�J�::r! ���~�'�- s~/~��1�+~�--pj+ll� !-..t-l,:�.-r...Ti1 o. _. ��ntt��--n --.-;--1�nc�t hl�,...::o v t)I:' _. 1,)�!�:�;�:' r�t::tJ �lJ. nd�.�c";-~\.l vht� .c:r�t�;}�t_��i~1�t.t�:;-Jt~_i c1.c.d ._. .� t�.���t.�t�l�t:�:Jl� internal revenue taxes, subject to tl1e pruvisions of Section 106." (Emphasis ours.) �sEC. 106. Jlefuods tJr tax c.redit.s of ioput tax - (a) Export Sales. .e. ..n exporter who is a VAT -registered person may v.,.ritllin tv.,.ro 1118

DECISIOH- C.T.A. CASE HO. )028 -7 - years from the date of exportaW::rn, apply for t.lle issuance of a tax credit certificate or refund of the mput tax attnbut.aNe to the goods exported, tf) t11e extent that such input tax 11as not t)een applied t() output tax and upon presentation of proof t11a.t t11e foreign exchange proceeds has t~~:::en a.(:count...e(i for in accordance vvit11 the regulations of t11e Central :e.ant of tl1e Philippines... l�.. perusal of the 1v1anufacturing ._.:l.._greernen.t entered into bet\o~leEm Intel Corp., U.S.i~..., a.nd Intel Philippines Ivia.nu.fa.ct.uring, Illc ..7,-ilJlrl 1�,:::.-.;l,:::.'="�l -lle t "} ~v�.v . �-+ t.~> �1�=-�t 1 petiJt' l�~,.,r�J�,.L:.:L:v.!- {\It-1�+~�.)�::'�;'~" 1 nr1-11�1c.._�;_ 1"' ��:-:\.f.:-.;!�,.:._,,�:':\;.�,�c-�� �:>c�c-,:::.t-r11 J'"\o ..J. ... �J 1- \ v . .,. .-_...._.._ ��_. J. .. -�} t ,-.1 ,..,r �:> ee-t ~.!-ld �--=�-l-11.1.,.-.�,' -��-� .... -:.... j~la-c-c1�1�y } rr1�:,.. ._. �7....J .�;~t t,.:.._. t.:~:J v -..J�J inwgrawd circuits for Intel Corp., U.S.A., for a fee per classification multiplied by tJ1e price per unit, as stated in Exhibit Inkl Corp.. TJ.S.i�..., shall consign the necessary materials lite silicon wafers and piece parts for assembly, testing and classification purposes t;J petitioner. It shall reirnburse petitioner tile cost of direct rnaterials used for assembly and the lil{e. Ho~Never, t11e indirect rna.terials such a.s molding compounds, die att::t.ch adhesive etc:. are provided for by p~- t~. tL. Wn~d- (.!~:�-~-~ pa~ t-. .?. . 1, 11/.Jf.atl-U.1".~:.l.C-tUl-l.l-lt-,� r,\.. g-�,...- t-:--~1--Il-~.t.~1'.~. '1, . . k U!�+1_.t�le!l-n--r.~},t"~-, . the equiptnent and materials purcha::;ed by petitioner from Intel Corp., U.S ...A..., are billecl and invoiced sepa.ra.tdv for the accou.nt of petitioner (see par. } 10, ibid} Therefore, on the basis of the IC's for export. It. is nc.te vWJrthy to rnention at this point that tl1e agreement became effective Decernber 29, 1991. This case tl�,,::;, 1�nucv.l"~" 7e�� =!_J.� � P:.t. cl;=>1."'11 1�,-l!- t�-:.t.Y ,....~..~r. e.,.-�l-�l�t-� <';1- 1�1�1.tr~��,1.J...,.. t~ ��:.>..~.�...,.,.:,.:.:..c..J� rn����::>t. l.(-l 1-.�."->!- -� .~,.._. 1r,..,..:..:.;. ,1�1�v~..�--1 �- .. ...A ... �:'- .i..l . 112(J

DECISIOll- C.T.A. CASE HO. 5028 -8 - t\.'.Jov=:.p+J-h��-1"11b.j.>_=.>t" 1, 1991 to Noveml)er 30, 1991. manufacturing agreement cannot 1)e considered in t!iis case because there "VIr.:ls no agreement yet a.t t...1-).is point. Ho-.;..vv~ler, even assumine._. that this a!:treement will have anv' bearin!,I_. still -r.Ne 0 cannot adopt the vie�~N of respondent. The tnanufactu.rinq�-� . a2-reement. ~ l)etitioner speciiies that shall manufacture.. assemble.. t�st, classify and pad: for export IC's to Intel Corp., u.s..e.... For all intent and purposes what has 1)een agreed upon by� the parties was t11at petitic�ner shall asserni)le, test and classify IC;; for export to Intel Corp., U.S.A.. And since t11ese involve gc..:)ds 3.ssembled and manufa.ctured, it is covered 1);.;� tJ1e (iefinition of "foreign currency denominated sales" -r..nlhich includes "sales to non-residents of goods assembled (;.r m;3nufact.u.red in the Philippines". If. as alleged 1)y tl1e respondent t.ha..t only services pbtt"tl� 1�C� 1.t 1.C� C�.j-t"H tt�i�"� '"'!" 0::.!" 1....1 HWl~~. }~ ~� ~ 1�~.-}1�1-_. ._,. 1.11V1~-J1T,'T/t.:"t~...11 tl'"~~ot~::�:t"l �"�!" ._, --�'..-11 T,�~�T' 1�r_�1.�11�1~!-.. ..�l r:;: t:: (_d.t�_T.r,Trt�:";�".t~".r�<:'(�F)~".. -. !.J zero-rated VAT under Section 102(a)(l) in relation to the "��xp �t c-r1�"C�" d" tl��- U.�~l�t""lnlw"-.1t-..jJr:t�l 0�t" ~...... ~01 ~~..:.f. ~~� Un ._,t ���t" ~[ .;_;.t:;..:'-(_.�~�tl�v�, tl �1{)~)'I,�_d-'.J; V _. l~ T� r0.�..:T':.. 1~~.'-�-.'~'j�..+e. Moreover, petitioner has presented as part of its documentary evidence the sales inVt)k:es and a.ir..,hTay bilis of all Intel Corp., U.S.A.. Then finally�, t11e input taxes pa.id on its (lomestic purchases of goods and services -r.Nere not reiml)urse(l b�-r1,;r Inte~l� Ct..�;rp �.� TJ" e. ...,).� .~..} contr�arv, to...�. th�>=.>... a1.L1t�::�'�oo�at...1.Lot�1cv- of rec-�nJ,r~~�.�t-�Flo=-..:+.�..t��lt.'..c�-�� counsel. These l1ave been disclosed b;1 t11e BIR revenue officer, Ms. Crise1a Manalo, during the cross-examination conducted by petitioner's counsel on the hearing of Mard1 2 1, 1995, to -..1lit: 1121

DECISIOH- C.LA. CASE HO. 5028 -9- "ATTY. ONG (_l. Gomqu bad: to the mrrA1t. taxes V�lhich accorciinqu to 17ou disallovle(i for vi�:)lation of invo1c:mg I �~ requ.irernents. "V1lill you please tell us the nature of t11ese input t.a:xes paid by Intel Pllils.? A. Tlwse input taxes pertain to tl1e domestic Ir,,..t..'.l..l,�\Al..".. !�:_._;...-:-�-P....�-.:..�~ <v�1" i0'J.,(_".�,C...�.,<. l�.-J� . Q. Have you come ToT<tl"! 1�.-1p11t Af �u=..�C.. t"(v).�:.;.:.:.:.:. \}.a. �(:.:i.tt"lT;T/ .l _) -�. t,_=.,:i."..:-A:....�.. .�:�- '/1.'.1 ..� .L re2._".ar<l t() the import::-ttion ()f capital equipments? Q. "�"lere these input ta.xes duly recorded in the VAT returns oi Intel Philippines? A. Ye:�;. Q. And -....vere these duly recorded in their boots of accounts? A. Yes. Q. Could )rou please ten us ~.�1lhat booK of accounts a.re v., ou referrin2�-�� to? A. Ye:::, I am referring to tJ1e ledger. Q. Ho-\..l at)out the cash disbursernents t)oot? .t.�. T11ev are recorded in the cash disbursernents. ' Q. Cash disbursements l)ook? So. 110V-l aJ>)Ut in the purchases bool:? :A. In tJ1e purchases boo1::.. 1122

DECISIOH- C.T..A. CASE HO. )028 - 10 - Q. Tiley are duly recorded? Q. Insofar as tllose \.Vllicll are disalh?VMd? Or even tllose allow.,;od? A. Even tllose V�lllich are allov.red. Q. Am I (:.:)rrec:t in saying petitioner lH!itirnatt:?ly o-.:,.vns tllese input taxes V�lhh::11 thev have paid? A. Yt:?s. Q. For the third and fourth quarters of 1qq 1? Q. And am I correct in saying tliat except insofar as tllo::;e input taxes V.Jhich you have disallo�wed, tiw balance can legitimat.0ly be claime(l by Intel Pllilippines? Q. For tax credit certificate or refund? .a._ Yes. l~",. ,'":-'.1._111-)::;-o:;�:-.:.".1Il�le" 1�Lr� t}~.) t.t- �10:�::0 t r,F'-dTuHW" �::O� 1�1 - �f,} T�,T I r�11....0:�::0�1 (�)f t.t- �10�:::0-!::�8 input taxes or subsequent tf.) their declaration on the \lAT return. did Intel assign t11ese input taxes to anv entitv? Has anv entitv p;3.id f hr 1-... 11- . . t\�,.::..--.::. �._) �~�i...._.~... .1�1~11t t_a.a�::�2-i�~--.=---~:�� i��. No. Q. To Intel? A. No.

DECISI011- C.T.A. CASE 110. 5028 - 11 - Q. Has anv entitv reimbursed Intel ~Nitll reeard to the input taxes? Q. In saying tlEtt Intel Philippines has not been reimbursed for tllese input tJ.xes. Could you please tell this Honorable Court. 1,vhat. is your basis? �6.... For? Q. 'YVllat document if any ha-.:le been your basis in saying that Intel lias W)t been reimtJursed for these input t:1xes? A. Has not reitnburs-d? Q. By ;::my entity? A. I have a certificate from the :e.ureau. of Customs and tlle Bureau of [Investrnents] st3.ting that no refund or no claim for refund has been applied for. Q. No. Aside from that, v-.rere these input taxes paid by Intel vvrllich is tile sul)jed of these petition for reviev-l been reimbursed bv an~l entit-.;,r�� f otl1er t11an tiN C.OI a.nd f.ureau of CustJ:)m:;? Q. Did anybody acquire these from Intel? i�..s p.;;.r v, c)ur investig�-�ation? A. No. Q. Does Intel have a cash receipts boot? A. Yes. 112Lj

DECISIOli- C_T..!_ CASE :NO_ :5028 12 Q. HavE:- you checl:.ecl the entries in t11e ca.sh rE:-ceipt::: t ..�)ol: �)f Intt?l for thE? pt?riocl }..�iarch 1 1991 to 1 Ft>i)fU:3.fV~ ") (i 1 (_:i(_-~2? ..... -� 1 t'L At randotn. Q. t._.:J.. random? n (� .!..:.. .. Q. t ntc� '1I iI111::.J>.. l7 V~I.~.+J1.,::�:..�-l..- ,�:-�:J:..Jn.I,.+..&t-,1" ,.:_:,:..-c,.-~ ,...-...l. (-) t-ll�-�t1:'�1- .�.--.�.�;-1��.c.J�l-1� 1-cv,t.r..-..~'"1.r-� .r>-' hr_..-�-'�,(.._'J ...... _l.pt�,.. '�t11�-�t- tt-,.- ft--"+Y J~..Yl:P.. f1, A.... ���-' � t:=- 1.~.c.1..1�1 !-,.:_:.,..._�'.e ) .:J .....J.LJ.l v6~~~n1-}�f�-'-'t-t. ,-:-'I.d�-.1,:._:..-:�:-a�'1: All incornuw cas11 art? r-ilt?cted in thE? cash '-' rt?ceipts boot. (>u.ld you please tell us the nature of tllese incoming cash? ._<!._re these purely receipt::; !-1-.-"'tl-'1 _rt.l.�A._,.tt..."tiO!lAVt-J'.�::-..-J A._".,.!..,TJ.l_.,. ~V�!-t._, c�qlec-? v J. �-'"-� 'J''..I. ....il There are receipt;; !rom local sales. Q. So (.1}:):;.;;. are t11.;;. only ~ntries in t11dr cas11 receipt:; b\)oi~? Receipt;; from 8-Xport sales ancl receipts from their hxal sales? n... '� '� 1i...!...tl",�J"' V,. f'._�J Jj. fL> Ty'yT�~~ w:;; 1 u-J.~ "yt.,,�.Tll \~_.1 .�.t::'.~._:,~--.:.-.,. f-1111-1.~.,\.,,fj. t..~�l-. 1 t:' t...-,..._4_.-_=..-1-1 .r \) 1.a,t.;-". rec:e1pts boo!:? For t11e entire year 1v1arch 1991 to Februarv 1q92? I - .~.... I hmre tV�lO other companh:ms. Q. iu1c1 could you please tell us "~..x;rtw these t\vo (>;::.n1panions are? 1 _1_2 or�

DECISIOH- C.I.A. CASE llO. 5028 - 13 - A. 1vlelissa Tvv�eepe and Rey Sequiel. 0. And are tl1eir finclings consistent V�llt11 vour ovmI '"- I,J findings? A. Yes." (TSI'�C 1vlarcll 21, 1995, pp. 35-41). '-lerily, based on the foregoing testimony of respondent's V�litness, it c;::m be as�~ertained that t11e input taxes paid Nl domestic purchases .:1f goods and services for tlle period September 1, 1991 to November 30, 199 1 "~l-lere solely for the account of petitioner and V�lere not reiml)ursed by Intel Corp., U.S.A.. In addition, respondent's VvTitness further testified and admitted that petitioner is still entitled to a tax credit of tr1e remaining balance of input t::txes of P1,722. 766.0 1, net of the disallov..re�j portion of tl1e input t3.X amounting to P1. 060,.312.04, ;1side from the amount of P�592,40.).02 v.rl1ich have already been avv'"arded b)T .,Nay of a tax credit (see TSN, 1v!arch 2 1, 1995, p. ~3 7). '�""le cotne novvT to the question of llOV�l much is petitioner entitled to claim for tax credit of excess input taxes paid on its domestic purchases of goods and services. For its part, petitioner offered the follov�ring documentary evidence to prove entitlement to t11e amount claimed as tax credit: 1. Certification of Punongbayan 8{ Arau.llo, elated 1viarch 14, 1994, describing the procedure conducted in verifying the correctness of the amounts claimed for tax credit \�Vith l\.nnexes .". '.. B l.i � .-_:.-.�tl,..-_1 } t\E~�=.-.1~.-!. �..=...�- . .LtJ..L \-.;..\1�1c..l Jt.J.J. - ) } 1126

DECISION- C.T .A. CASE HO. 5028 14 - �~, Sununary of Export Sales from September 1991 to November 1991 (Exh. i�.-2); } Sumrnar;l of the t\pp1ica.tion for V.L~.T Eefund (Input Ta.xes) for the :.rd Quarter of 1991 - September '91 t.) Novernber � 4. P1wt;:xopies of suppliers� sales invoicet: and/or official receipts fm� the perir:xl September 1. 1991 to November .30, 1991, tl"!�:�t t "_;.) .P..t."(;_~. ~�I�~�V..� t.l-.1�1.,.;..,� 1�1�1lr)�J-lt.. .t.�.~-:a....v..::ca.��c-��-�� '��"}�t"l l�t-c--�~ 1n)lJrr. "�l-...-�1l":':C1_-._',>-.;-C;._�, �.-:1. 1��;�.;r, I�._".1J.1-�1l/i' C..;�-]�11~)�r)�.�.)�'t."� �t.�w�.d+ t)y invoicet: :::md official receipts (Exlls. B to B-:3,472, inclusive. \�Vith sutm1arl:in2"s .E>- �~�. ?,62a. and B-.\."~62b): and �.J -�- -�- . c _). Credit 1viemos for the period September 1, 1991 to No:)Ver.nber .30, l 1 p-1-:-'t tl"� '� ('':())i t_r."..,l ln..rc~)~I't�:f ...J.J I,J, -� -� .t:: ;.:.>, �>�:"rT)l'._~.,rt-� .C._a�.;�_:l,:.>lv;:�.c-'� T):.1,\T'V;:.t��t�:�1 TI_y.o:..�l.f..�...IJ. .1-..J.. !. 1�1�1 �,_:,:_...-_.��.(_.�...:_>.lr_�.,1'-_�.:_1.. hlw t-.�J.'"-� �..i. oa.nt regulations (E:�tl)S. C to C- '7 1'7 1�1�1cll1 �=�1�;r;:. ��, 1 I} .� -��-' 1 �.� ,I. ~l!..fter careful examination of the:::e document.:::, the Court founf.l that petitio::mer i::: still entitled to a tax credit oi P 17.~).1 )6.09 (see Annex "/!�,." for det:J.iled cornr)utation ~.n?hich shall� -. - J. 1Ef~le been excluded in the computation of ;::dlO\�'l:::J.ble refund of t�- .., r,;,.�- ,-. ;1 1�t�l 1rJ�1-1�t, d~�,.e._C. r�(..�!Jt". t.i�.i-lt:'.�:' ,,.:1..~0t�1 tw"~�.l�o-:..t, t,\!l�t:'��~��.t::-.��:�' �.'.�.�<- :fh' lflO� t.� \u� e� .r-.1t,t_t�.�,\l�;.J1J tj:"}�.(.l ��..��l�lre.���..'.t.�.l T tr� k......f l�t�� ..,.:,..t�;'.t��f�.�_.l- t��C-�\t_�.�!:�;:1�. j ~ ���,.�.:-..1n..-.l.)t'r�t.,. :r;n�:~Jl.'�t:�;:-.:�a J ...J�.J ~a~'.'t�t..�-. 1. Purchases of office suppliet: :::uch 3S card holder, rnulti- lD-u.rp-0!=;;:-:._: d..e:-t�f'-l�i=>�-�l" I �c-�'f~-..:}:,;p� !l;�:-�.!� 'v-.'l"l(..l \~)�f:::C".J-CJ.�_�::� .0...:,�.1�6nl�i {\��,&-.U+J,.c�-'� 1 1 1 �~~ ':� ") �=: �( �j ~ f"1 �( .-, �(? �(~ ~ 'i �( ~ !:' �l '1� \) ._.1 ._}._..:.,.(;; ._}'-'._)��..� ._.ls!.._Jw, ._.1 ._.1 ._}_II.)._JJ.a (:Ji 1 C':~��.(.-i.� ("oC �I_;1,J..-J,.!..�...lf :1_.)

DECISIOll- C.T .A. CASE HO. 5028 15 - ("�t" ;�:;:;..'_:_:;l1:_:, ;t�lv J -=�~(~11rit1l Cb iU��=-.J'f.t"�".+(k�-�'(/t'..lt"i~Ir~t�c��J �!-1�!�.��..-�.�..i+ 1��1�=.,,'ft"liJ-1.f-).�.-)r1�.:.1I ._l. c���-rvi,���,:::.c:- ._1 �" ��� -� ,' ._It;: J.�.��-��...1 2.374 to 2.377, in(:lusive, 2.3~H) to 2.395. inclusive, 2.397 to 2400, inclusive, 2411 to 2415, inclusive, a.nd 2417 to and :::1.. not ~fllthin the period being cl::::l.imed_: b. cancelled the. in::mce. F ..-.. f ��-�"J. not listed in tlle. Cert.ifica.tir:::rn is:::ued t-...-.\,;.r the �..�--!+. no \lAT nutnl)er: and '. WHEREFORE, 1-.e-..-,-~-rr--'t�--..t�s..'.��.1.;_:..11.t. 1�,.,-:., '��-�'�t��'��-l;.:..!�.t-:.t(�1 t.�J�._�.. 1�.�~-�.�~-�u..:.:.:,. �~:-~. t.�..--~:t�..�:i '.�..�..�1�e-.��J��..it_. 1't�1 favor c�f p;,;.titioner in the. amount of P 17 }. 1~j6J)9, representing the. balance of input taxes paid f�:)f t11E> p;,;.rio.::l Sept.em1>::-r 1. 1991 SO ORDERED. I CONCUR: ~~~~ ERNESTO D. ACOSTA nrr-~c-�� l�-��rl�-it"�'"l,-C,:� .J. l.l. (J-rc;.;�:-�, 112&

DECISION- C.T.A. CASE HO. 5028 l6 - CERTIFICATION t� T�:� f���� (-J".,....-. �,r:.l._�,:�ul+'-�=Q>tir�..,..t-1 '�,'T, ltl-1 t"J".1.;.:.:.....n..l.;.::...l�,.-t....l JJ;�:�;1�1� ,...-...,!- tl�1�t�:�: 1.-_-.,J.-t._"l.r..+L. ,".-''-,1- 7 � i.r.! ~\...... 1:..L .1. .J...I",:.:':-."-~...~k,.._�.... Q~lO..G~ ERNESTO D. ACOSTA 112Ei

INTEL PHILS. INC. ANNEX "A" SUMMARRY OF THE REMAINING INPUT TAXES ALLOWABLE AS ATAX CREDIT PER THE COURTS COMPUTATION FOR THE 3RD QUARTER OF 1991 <SEPTEMBER 1991 TO NOVEMBER 19911 INVOICE INVOICE INVOICE NO. EXH. AMOUNT DATE SUPPLIER'S NAME VAT NO. PURCHASES INPUT TAX 10-22-91 OMS Engineering &Services 32A-9-004508 3940 A-959 p 3,500.00 p 3,181. 82 p 318.18 10-22-91 10-28-91 OMS Engineering &Services 32A-9-004508 3937 A-960 5,200.00 4, 727.27 472.73 10-25-91 10-28-91 OMS Engineering &Services 32A-9-004508 3953 A-961 4,440.00 4,036.36 403.64 10-28-91 09-11-91 DMS Engineering &Services 32A-9-004508 3961 A-962 1,850.00 1,681. 82 168.18 11-11-91 11-11-91 DMS Engineering &Services 32A-9-004508 3962 A-963 2,515.00 2,286.36 228.64 11-11-91 11-Q4-91 OMS Engineering &Services 32A-9-004508 3959 A-964 1,665.00 1,513.64 151.36 10-25-91 09-03-91 DMS Engineel'ing &Services 32A-9-004508 3907 A-969 4,805.97 4,369.06 436.91 09-16-91 09-28-91 DMS Engineering &Services 32A-9-004508 3964 A-977 2,960.00 2,690.91 269.09 10-02-91 09-03-91 OMS Engineering &Services 32A-9-004508 3966 A-978 3,515.00 3,195.45 319.55 09-03-91 09-16-91 DMS Engineering &Services 32A-9-Q04508 3965 A-979 4,514.00 4,103.64 410.36 09-16-91 10-16-91 MDA Woodcraft Mfg. 31-3-004801 271 A-2140 2,800.00 2,545.45 254.55 11-05-91 11-18-91 MDA Woodcraft Mfg. 31-3-004801 270 A-2146 4, 792.50 4,356.82 435.68 09-25-91 10-26-91 MDA Woodcraft Mfg. 31-3-004801 180 A-2148 522.05 474.59 47.46 10-26-91 11-22-91 MDA Woodcraft Mfg. 31-3-004801 188 A-2150 6,300.00 5, 727.27 572. 73 09-Q5-91 09-18-91 MDA Woodcraft Mfg. 31-3-004801 191 A-2156 . 5,271. 75 4, 792.50 479.25 09-10-91 11-19-91 Olive Maintenance 31-5-002076 908 A-2337 115,105.04 104,640.95 10,464.09 11-19-91 09-11-91 Olive Maintenance 31-5-Q02076 867 A-2351 14,835.00 13,486.36 1,348.64 09-17-91 09-17-91 Olive Maintenance 31-5-002076 866 A-2352 78,487.50 71,352.27 7,135.23 09-17-91 09-13-91 Olive Maintenance 31-5-002076 886 A-2356 14,835.00 13,486.36 1,348. 64 10-23-91 10-23-91 Olive Maintenance 31-5-002076 885 A-2357 78,487.50 71,352.27 7,135.23 09-30-91 09-20-91 Olive Maintenance 31-5-Q02076 918 A-2369 115,105.04 104,640.95 10,464.09 09-30-91 Olive Maintenance 31-5-002076 936 A-2416 115,105.04 104,640.95 10,464.09 09-30-91 10-30-91 Olive Maintenance 31-5-002076 947 A-2422 115,105.04 104,640.95 10,464.09 SAC Machining 35-2-001162 2917 A-2901 330.00 300.00 30.00 SAC Machining 35-2-001162 2988 A-2902 3,355.00 3,050.00 305.00 SAC Machining 35-2-001162 2989 A-2904 4,708.00 4,280.00 428.00 SDL Marketing 32-0-001917 1849 A-2925 20,796.25 18,905.68 1,890.57 9749 A-3147 9,600.00 872. 73 Unifor� Refrigeration &Aircon 24-7-000219 a, 727.27 Unifor1 Refrigeration &Aircon 24-7-000219 9814 A-3148 3,600.00 3,272. 73 327.27 Unifor� Refrigeration &Aircon 24-7-Q00219 9768 A-3149 8,600.00 7,818.18 781.82 Unifor1 Refrigeration &Aircon 24-7-000219 10210 A-3151 6,000.00 5,454.55 545.45 Unifor1 Refrigeration &Aircon 24-7-000219 10209 A-3152 11,500.00 10,454.55 1,045.45 Uniwell Tech. Corp. 31-0-005892 571 A-3154 1,950.00 1, 772.73 177.27 Viccat' Electronic Parts 21-2-001980 4905 A-3156 5,940.00 5,400.00 540.00 Viccar Electronic Parts 21-2-001980 4903 A-3157 6,600.00 6,000.00 600.00 Viccar Electronic Parts 21-2-001980 4904 A-3158 1,980.00� 1,800. 00 180.00 Viccar Electronic Parts 21-2-001980 4901 A-3162 1,650.00 1,500.00 150.00 Viccar Electronic Parts 21-2-001980 4956 A-3164 7, 722.00 7,020.00 702.00 Viccar Electronic Parts 21-2-001980 4957 A-3165 2, 750.00 2,500.00 250.00 Viccar Electronic Parts 21-2-001980 4935 A-3169 13,090.00 11,900.00 1,190. 00 Viccar Electronic Parts 21-2-001980 4920 A-3172 1,925.00 1, 750.00 175.00 Viccar Electronic Parts 21-2-001980 4938 A-3173 6,600.00 6,000.00 600.00 Viccar Electronic Parts 21-2-Q01980 4939 A-3174 5,940.00 5,400.00 540.00 Viccar Electronic Parts 21-2-001980 4961 A-3179 8,250.00 7,500.00 750.00 1130

INTEL PHILS. INC. ANNEX "A" SUMMARRY OF THE REMAINING INPUT TAXES ALLOWABLE AS ATAX CREDIT PER THE COURTS COMPUTATION FOR THE 3RD QUARTER OF 1991 (SEPTEMBER 1991 TO NOVEMBER 1991) 11-12-91 Viccar Electronic Pat�ts 21-2-001980 4980 A-3181 18,260.00 16,600.00 1,660.00 11-12-91 4982 A-3183 6,600.00 6,000.00 600.00 11-12-91 Viccar Electronic Pat�ts 21-2-001980 4981 A-3185 18,260.00 16,600.00 11-12-91 4983 A-3187 5,940.00 5,400.00 1,660.00 09-26-91 Viccar Electronic Parts 21-2-001980 003 A-3190 6,000.00 5,'t54. 55 540.00 11-13-91 010 A-3200 5,234.82 4, 758. 75 545.45 11-13-91 Viccat� Electronic Pads 21-2-001980 012 A-3201 5,514. 75 5,013.41 475.87 11-13-91 008 A-3202 8,849.40 8,044.91 501.34 11-13-91 Vintacan Develop11ent Corp. 48-8000168 011 A-3203 13,400.00 12,181.82 804.49 11-12-91 007 A-3204 31,250.25 28,409.32 09-05-91 Vintacan Developaent Cot�p. 48-8000168 106 A-3210 1,218.18 09-17-91 110 A-3212 900.00 818.18 2,840.93 09-09-91 Vintacan Development Corp. 48-8000168 107 A-3214 4,000.00 3,909.09 10-08-91 114 A-3217 2,568.50 2,335.00 81.82 10-01-91 Vintacan Develop1ent Corp. 48-8000168 112 A-3218 9,000.00 390.91 10-08-91 113 A-3219 15,000.00 a, 181.82 11-05-91 Vintacan Develop1ent Corp. 48-8000168 115 A-3222 25,000.00 233.50 11-05-91 116 A-3223 3,200.00 13,636.36 11-05-'31 Vintacan Develop1ent Cot�p. 48-8000168 117 A-3224 48,500.00 22,727.27 818.18 09-10-91 109 A-3226 13,873.15 2,90'3, 09 1,363. 64 11-11-91 VMLT General Services 32A-0-009183 7728 A-3335 2,271.50 44,090.91 2,272. 73 11-15-91 7737 A-3336 1,125.00 12,611.95 09-10-91 VMLT Genet�al Set�vices 32A-0-009183 A-3338 2,820.00 2,065.00 290.91 09-07-91 7<.J::''h':.). A-3342 9,800.00 1,022. 73 4,'t09. 0'3 09-13-9! VMLT Genet�al Services 32A-0-009183 A-334't 12,210.00 2,563.64 1,261. 20 10-03-91 7531 A-3346 14,400.00 8,90'3.0'3 11-07-9! VMLT General Services 32A-0-009183 7547 A-3348 15,588.10 11,100.00 206.50 11-07-91 7607 A-3349 12,210.00 13,090.91 102.27 10-15-91 VMLT General Services 32A-0-009183 7719 A-3351 9,240.00 14,171.00 256.36 10-15-91 7720 A-3352 9,240.00 11,100.00 890.91 09-13-91 VMLT Genel'al Services 32A-0-009183 7640 A-3356 19,200.00 8,400.00 1,110.00 09-30-91 7642 A-3358 74,750.00 8,400.00 1,309. 09 10-29-91 VMLT General Sel'vices 32A-Q-009183 2234 A-3360 146,363.64 17,454.55 1,417.10 10-23-91 2249 A-3362a 6,292.40 67,954.55 1, 110.00 09-24-91 VMLT General Set�vices 32A-0-009183 333050 A-3370 27,335.00 133,057.85 840.00 10-22-91 326830 A-3372 17,113.22 5, 720.36 840.00 10-09-91 VMLT General Services 32A-0-00'3183 066667 A-3373 59,8%.26 24,850.00 1, 745.45 11-04-91 001348 A-3375 28,702.30 15,557.47 6, 795.45 09-28-91 VMLT Genel'al Services 32A-0-009183 5755 A-3379 3,700.00 54,451.15 13,305.79 10-30-91 102841 A-3381 7,611.80 26,093.00 572.04 10-31-91 Wincell Enterprise 34-8-001349 43317 A-3386 9,080.60 3,363.64 2,485.00 10-30-91 43509 A-3389 93,753.00 6,919.82 1,555. 75 !0-17-91 Wincell Entel'prise 34-8-001349 077 A-3391 8,255.09 5,445.11 10-19-91 4311 fi-3392 247.50 85,230.00 2,609.30 11-18-91 Wincell Enterprise 34-8-001349 5262 A-3393 21,150.00 336.36 11-20-91 5267 A-3394 21,150.00 225.00 691.98 10-20-91 Wincell Entet�prise 34-8-001349 A-3395 18,800.00 1'3,227.27 825.51 10-29-91 5345 A-3396 4, 700.00 19,227.27 8,523.00 Wincell Enterprise 34-8-001349 5355 18,800.00 17,090.91 22.50 5354 10,575.00 4,272.73 1,922. 73 Wincell Entet�prise 34-8-001349 5296 17,090.91 1,922. 73 9,613.64 1, 709.09 Wincell Enterpt�ise 34-8-00!349 427.27 1,709.09 Wincell Enterprise 34-8-001349 961.36 Wincell Entet�prise 34-8-001349 Wincell Entet�pt�ise 34-8-001349 Zorin Syste1s Int'l. Inc. 32A-7-000797 Zol'in Syste1s Int'l. Inc. 32A-7-000797 Zuellig Phar1a Corp. 32-3-000221 Zuellig Phal'la Cot�p. 32-3-000221 Consolidated Industrial Gases 31-9-000019 Consolidated Industrial Gases 31-9-000019 Consolidated Industrial Gases 31-9-000019 Diston Enterprises 32A-4-000428 GRM International Inc. 34-9-000019 GRM International Inc. 34-9-000019 Industrial Controls Corp. 30-A-7-006711 JAG Ind'l Product Sales, Inc. 30A-5-002530 JCR Mercanti 1e 34-6-000350 JCR Mercantile 34-6-000350 JCR Mer�cant i Ie 34-6-000350 JCR Met�cantile 34-6-000350 JCR Mercantile 34-6-000350 JCR Mercantile 34-6-000350 �113i

INTEL PHILS. INC. ANNEX "A" SUMMARRY OF THE REI~AINING INPUT TAXES ALLOWABLE AS A TAX CREDIT PER THE COURTS COMPUTATION FOR THE 3RD QUARTER OF 1991 !SEPTEMBER 1991 TO NOV8~BER 1991) 10-03-91 Metro Motor Service 32-3-004157 33184 A-3404 5, 031.99 4,574.54 457.45 11-11-91 Michen Industl'ial Supply 31-1-002351 1739 A-3405 7,040.00 6,400.00 640.00 10-23-91 Reltech Phils. Inc. 32A-6-008585 A-3409 3,961.15 3,601. 05 360. 10 10-08-91 Robles Metal Mfg., Inc. 30f.J-B-001976 o~b","J A-3410 31,000.00 28,181.82 2,818.18 11-08-91 34-9-002940 A-3412 6,842.00 6,220.00 622.00 09-02-91 R &RSe1iconductor Services 21-6-Q03610 4106 A-3413 70,000.00 63,636.36 6,363.64 09-12-91 32A-9-000332 584 A-3415 87.57 09-16-91 S~lJ Construction, Inc. 32A-4-000535 301 A-3417 %3.30 875. 73 1,527.27 10-24-91 Ther1o Engineering 3-18-001711 50320 A-3419 16,800.00 15,272.73 610.90 09-17-91 Trans Wodd Trading Co. 21-0-001980 24105 A-3420 6,719.90 6,109.00 180.00 United Laboratories 752536 11980.00 11800.00 P173,156.09 Vicca1' Electronic Parts 4902 P1 1904,717.01 P11731 1560.92 T 0 TAL 1132