CTA Case No. 6066 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY PHILIPPINE REALTY & HOLDINGS CORPORATION, Petitioner, -versus- C.T.A. CASE NO. 6066 COMMISSIONER OF INTERNAL Promulgated: REVENUE, JAN~~ Respondent . X- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - X DECISION This case involves a claim for refund of overpaid creditable withholding taxes in the amounts of P5,913,663 .00 and P28,874,007.00 for the taxable years 1996 and 1997, respectively. Petitioner is a domestic corporation duly organized and existing under and by virtue of the laws of the Philippines, with principal office and business address at 5/F Philippine Stock Exchange Centre, Exchange Road, Ortigas Center, Pasig City. On April 15, 1997, petitioner filed its Annual Income Tax Return for the taxable year 1996, declaring an income tax due of P115,152,618 .00 and creditable withholding tax of P121 ,066,281.00, resulting to an excess creditable withholding tax in the amount of P5,913,663 .00. In said return, petitioner indicated its option to apply this excess

DECISION C.T.A. CASE NO. 6066 Page 2 creditable withholding tax as tax credit to the succeeding taxable year 1997. (Exhibits For the taxable year 1997, petitioner filed its Annual Income Tax Return on April 15, 1998, declaring a net loss of P265,731 ,215.00 and creditable withholding tax of P28,874,007.00. Due to the net loss incurred during the taxable year 1997, petitioner was not able to apply its 1996 excess creditable withholding tax. Thus, in 1997, petitioner had an accumulated excess creditable withholding tax amounting to P34,787,670.00 consisting of its prior year' s excess credit in the amount of P5,913,663 .00 and its current creditable withholding tax ofP28,874,007.00. The return showed that petitioner opted to claim for the refund of its accumulated creditable withholding tax. (Exhibits "K8", "K8-1 " to "K8-3") On November 23 , 1998, petitioner filed with the respondent' s Bureau a letter- claim for the refund of its overpaid creditable withholding tax for the taxable years 1996 and 1997 in the aggregate amount of P34,787,670.00 (Paragraph 3, Unconditionally Admitted Facts). On November 26, 1998, the Chief of the Appellate Division of the Bureau of Internal Revenue (BIR) informed petitioner that its claim for refund was referred to the Revenue District Officer of Revenue District Office No. 43 , Pasig City, "for factual investigation, report and recommendation" (Paragraph 4, Unconditionally Admitted Facts) .

DECISION C.T.A. CASE NO. 6066 Page 3 In a Memorandum dated February 15, 1999, the BIR Revenue District Officer of Revenue District Office No. 43, Pasig City, assigned petitioner' s claim for refund to Revenue Officer R. Porlas and Group Supervisor G. Prado for "comment and/or observation" (Paragraph 5, Unconditionally Admitted Facts). Upon termination of the examination and investigation of petitioner' s corporate income tax return for the taxable year 1996, petitioner was assessed for deficiency tax in the amount of P59,394.57. (paragraph 7, Unconditionally Admitted Facts; TSN, December 6, 2000, pp. 24-25) On July 6, 1999, petitioner paid said deficiency assessment. (Exhibit "L8" ) For the year 1997, petitioner was assessed the amount ofP20,008.07 representing deficiency expanded withholding tax. Payment for the said assessment was made on February 23, 2001. (pp. 6-8, 8-14, TSN, May 29, 2001 ; Exhibits I-23 and J-23) Due to respondent's inaction over petitioner' s claim for refund, the latter filed its judicial claim with this court on April 13, 2000. In his Answer filed on May 15, 2000, respondent raised the following Special and Affirmative Defenses, to wit: "3. The claim for refund Is subject to investigation by the Bureau of Internal Revenue; 4. Taxes paid and collected are presumed to have been made in accordance with laws and regulations, hence, not refundable. Claims for tax refund are construed strictly against the claimant as they partake of the nature of an exemption from tax (Commissioner Internal Revenue vs. Ledesma, G.R. No. L-13509, January 30, 1979, 31 SCRA 95) and it is incumbent upon the petitioner to prove that it is entitled thereto under the

DECISION C.T.A. CASE NO. 6066 Page4 law (Western Minolco Corp. vs. Commissioner of Internal Revenue, 124 SCRA 121) and he who claims exemption must be able to justify his claim by the clearest grant of organic or statutory law. 5. Moreover, petitioner must prove that it has complied with the governing rules with reference to tax recovery or refund, which are found in Sections 204 (C) and 229 of the Tax Code, as amended, which are quoted as follows : "Section 204. Authority of the Commissioner to Compromise, Abate and Refund or Credit Taxes. The Commissioner may - x x x (C) Credit or refund taxes erroneously or illegally received or penalties imposed without authority, refund the value of internal revenue stamps when they are returned in good condition by the purchaser, and, in his discretion, redeem or change unused stamps that have been rendered unfit for use and refund their value upon proof of destruction. No credit of refund of taxes or penalties shall be allowed unless the taxpayer files in writing with the Commissioner a claim for credit or refund within two (2) years after payment of the tax penalty: Provided, however, That a return filed showing an overpayment shall be considered a written claim for credit or refund." "Section 230. Recovery of tax erroneously or illegally collected - No suit or proceeding shall be maintained in any court for the recovery of any national internal revenue tax hereafter alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to have been excessively or in any manner wrongfully collected, until a claim for refund or credit has been duly filed with the Commissioner; but such suit or proceeding may be maintained, whether or not such tax, penalty, or sum has been paid under protest or duress. In any case, no such suit or proceeding shall be begun after the expiration of two (2) years from the date of payment of the tax or penalty regardless of any supervening cause that may arise after payment: Provided, however, That the Commissioner may, even without written claim therefor, refund or credit any tax,

DECISION C.T.A. CASE NO. 6066 Page 5 where on the face of the return upon which payments was made, such payment appears clearly to have been erroneously paid." The sole issue to be resolved is: Whether or not on the basis of the evidence presented, petitioner is entitled to the refund of the amounts of P5,913 ,663 .00 and P28,874,007.00 representing excess creditable withholding taxes for the taxable years 1996 and 1997, respectively. Revenue Regulations No. 12-94 (amending Revenue Regulations No. 6-85), as affirmed by jurisprudence, laid down the following three basic requirements for the refund of excess creditable withholding taxes, thus: 1. That the claim for refund was filed within the two-year prescriptive period provided under Section 204(3) [now 204 (C)] in relation to Section 230 [now 229] ofthe Tax Code, as amended; 2. That the fact of withholding is established by a copy of a statement duly issued by the payor (withholding agent) to the payee, showing the amount paid and the amount of tax withheld therefrom; and 3. That the income upon which the taxes were withheld were included in the return of the recipient Citytrust Finance Corporation vs. The Commissioner ofInternal 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, CA. G.R. SP No. 28239, March 14, 1994; Citytrust Finance Corporation (formerly Investors 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 Internal Revenue vs. Citytrust Finance Corporation (formerly Investors Finance Corp.IFNCB Finance) and the Court of Tax Appeals, CA G.R. SP No. 31104, April 18, 1994; Ayala Life Assurance, Inc. vs. Commissioner of Internal Revenue, CTA Case No. 5631, dated May 11, 2000; Stock Transfer Service Inc. vs. Commissioner of Internal Revenue, CTA Case No. 5796, dated May 3, 2000; Union

DECISION C.T.A. CASE NO. 6066 Page 6 Bank of the Philippines vs. Commissioner of Internal Revenue, CTA Case No. 5623, dated April 12, 2000; Citibank, NA. vs. Court of Appeals and Commissioner of Internal Revenue, 280 SCRA 459; ACCRA Investments Corporation vs. Court of Appeals, 204 SCRA 957}. As to whether or not petitioner's claim for refund of excess creditable withholding tax for the taxable year 1996 was filed within the two-year prescriptive period, the court rules in the negative. Section 230 (now 229) of the NIRC provides, viz: "SEC. 229. Recovery of Tax Erroneously or fllegally Collected. - XXX XXX XXX In any case, no such suit or proceeding shall be begun after the expiration of two years from the date of payment of the tax or penalty regardless of any supervening cause that may arise after payment : Provided, however, That the Commissioner may, even without a written claim therefor, refund or credit any tax, where on the face of the return upon which payment was made, such payment appears clearly to have been erroneously paid." Based on the aforequoted provision of law, petitioner had until April 15, 1999 within which to file both its administrative and judicial claims for refund, its 1996 Annual Income Tax Return having been filed on April 15, 1997. While petitioner's letter claim for refund was filed on November 23, 1998, its judicial claim was filed only on April 13, 2000 or after the lapse of the two-year prescriptive period. Since petitioner's claim for refund in the amount of P5,913,663 .00, representing its excess creditable withholding tax for the taxable year 1996 has been barred by

DECISION C.T.A. CASE NO. 6066 Page 7 prescription, we find it no longer necessary to discuss petitioner' s compliance with the second and third requirements. We proceed to petitioner' s claim for refund of its excess creditable withholding tax for the taxable year 1997. For the said taxable year, petitioner filed its Annual Income Tax Return on April 15, 1998. The administrative and judicial claims for refund were filed on November 23 , 1998 and April 13, 2000, respectively. Clearly, petitioner was able to meet the first requirement since both the administrative and judicial claims for refund were filed within the two-year prescriptive period. To prove the fact of withholding, petitioner submitted vanous certificates of creditable withholding taxes. However, out of the total 1997 creditable withholding taxes of P28,874,007.00, petitioner was only able to substantiate the amount of P28,744,808 .15, to wit : WITHHOLDING EXHIBIT NATURE OF INCOME TAX AGENT INCOME PAYMENT WITHHELD A BROWN A Sale of real property 241 ,247,045.45 1 2,062 ,352 .27 Sale of real property 87 ,222 .40 43,861 .12 ACCURATECH MACHINE B Sale of real property 7 4 ,875 .0 0 Sale of real property 1,497,580.00 80,208.88 ADRIANA HU c Sale of real property 3 ,1 5 5,5 2 8.5 5 Sale of real property 4,491 ,940.00 224,592.00 AMADO MANUEL D Sale of real property 2,481 ,818.18 124,090.91 Sale of real property ANNIE LAO FERRER E Sale of real property 786,103.00 39 ,305 .1 5 Sale of real property 1' 197,582.00 59,879.10 ANTONIO MARTY F Sale of real property 6 ,185 ,454.60 309 ,272 .73 Sale of real property 1,187,723.20 59,386.16 BARBARA VARGAS G Sale of real property 1,335 ,467 .5 0 66 ,773 .3 7 Sale of real property 10,437,998.60 521 ,899.93 SELEY CHUA H Sale of real property 2 ,1 0 4,7 7 2 .8 0 105,238.64 Sale of real property 1,200 ,876 .6 0 6 0 ,043 .8 3 BELLE CORP Sale of real property 4 ,3 3 4,232 .0 0 216,711.60 40,847.10 BREPAC DEVT CORP J 816,942.00 116,569.11 2,331 ,382.20 BROADCAST & COMM K CENTURY CANNING L CHESTER CO M CHMTRDG N CHU KEN GIAP 0 CORAZON CLAUDIO p DAKILA FONACIER a

DECISION C.T.A. CASE NO. 6066 Page 8 DILIP SHRIVASTAVA s Sale of real property 983,704.00 49,185.20 DIANA SHRIVASTAVA Sale of real property 784,512.00 39,225.60 DIZON COPPER SILVER T Sale of real property 1,797,170.00 89,858.50 DOMINION PROPERTY Sale of real property 3,330,031 .20 166,501 .56 DOMINION PROPERTY u Sale of real property 4 ,762 ,000 .0 0 238,100.00 ELIZALDYCO Sale of real property 792,701 .00 39,635.05 ENRICO TENSUAN v Sale of real property 6 ,912 ,500.0 0 345,625.00 FIRST ABACUS w Sale of real property 2,061 ,818.20 103,090.91 FLORENCIA NEVALGA Sale of real property 4 ,2 1 7 ,5 0 0.0 0 210,875.00 GBW HOLDINGS CORP X Sale of real property 714 ,520 .0 0 35 ,726 .00 GBW HOLDINGS CORP y Sale of real property 714,320.00 3 5 ,726 .00 GBW HOLDINGS CORP Sale of real property 720,562.40 36,028.12 GBW HOLDINGS CORP z Sale of real property 714,320.00 35,726.00 GBW HOLDINGS CORP Sale of real property 714,320.00 35,726.00 GBW HOLDINGS CORP AA SaDie of real property 714,320.00 36,028.12 GILT EDGED PROPERTY Sale of real property 983 ,482 .00 49,174.10 GOLD CREST INTL BB Sale of real property 3 ,990 ,000 .00 199,500.00 GRANIN PROPERTIES Sale of real property 403,363.80 20,168.19 GREEN ACES HOLDINGS cc Sale of real property 1,601 ,640.00 90,082.00 DEVTCORP Sale of real property 4 ,2 0 9 ,5 4 5 .4 0 210,477.27 HENRY UY DO Sale of real property 398,629.60 19,931 .48 HOME CREATION Sale of real property 1,115,100.00 55,755.00 ITSHAK HAREL EE Sale of real property 527,187.40 26 ,359 .3 7 J-LO REALTY FF Sale of real property 1,225 ,100.0 0 61,225 .00 JAME DE JESUS Sale of real property 4 ,9 0 5 ,5 0 0 .0 0 245,275.00 JANUS MATUTA MGT GG Sale of real property 1 ' 180,000 .0 0 59 ,000 .0 0 JENNIFER ENRIQUEZ HH Sale of real property 1,790,684.80 89,534.24 LU , GEREMIAH II Sale of real property 4 ,527 ,000 .0 0 226 ,350 .00 JONATHAN LU JJ Sale of real property 4,217,500.00 210 ,875 .00 JOSEPHINE NG LO KK Sale of real property 3,951 ,780.00 197,589.00 LANDMINER'S INC LL Sale of real property 944,824.00 47,241.23 LANDMINER'S INC MM Sale of real property 944,824.00 47,241.23 LC LOPEZ RESOURCES NN Sale of real property 1,599,434.20 79,971 .71 MEl SU LEE Sale of real property 2 ,303 ,408 .40 115,170.42 LEONARDO CHUA LIAN 00 Sale of real property 1,008,032.00 50,401 .60 LEWIS EDWARDS Sale of real property 3 ,756,082.00 187,804.10 LIAN , CHING CHENG pp Sale of real property 1,700,870.00 85,043.50 LIRIO ANGELA CORP Sale of real property 1,556,250.00 77,812.95 LITTMAN DRUG CORP QQ Sale of real property 1,083,1 28.00 54,156.40 MA ANGELINE ESQUIVEL RR Sale of real property 4 ,7 1 5 ,5 0 0 .0 0 235 ,775.00 MANUEL CHUA Sale of real property 4,329,1 92.00 216,459 .60 MARCEL ALBARACIN ss Sale of real property 744,863.80 37,243.19 MARK LEROY YU Sale of real property 1,107,814.20 55,390.71 MARILOU MONASTERIO TT Sale of real property 1,779 ,915 .2 0 88,995.76 MAXIMO BALAJADIA Sale of real property 9 ,326 ,000 .0 0 466,300.00 MAXIMO KALAW uu Sale of real property 4 ,546 ,460 .00 227,325.00 MELTIP REALTY Sale of real property 4 ,083 ,450 .0 0 204,172.50 w ww XX yy zz AAA BBB CCC DOD EEE FFF GGG HHH Ill JJJ KKK LLL MMM

DECISION C.T.A. CASE NO. 6066 Page 9 MERIDIAN ASSURANCE NNN Sale of real property 960,212.40 48 ,010 .62 MERIDIAN ASSURANCE Sale of real property 960,212.40 48,010.62 MERIDIAN ASSURANCE 000 Sale of real property 1 ,548 ,785 .0 0 77,439.25 MERIDIAN ASSURANCE ppp Sale of real property 492,969.60 24,648.48 MERIDIAN ASSURANCE Sale of real property 673,200.00 33 ,660 .00 MLC-NOL REALTY QQQ Sale of real property 62,824,681 .82 3 ,141,234.09 ONNA NG SY Sale of real property 1,485,906.60 74,295.33 HUNG PAl RRR Sale of real property 1,240,586.20 62,029.31 PERPETUA MANALO Sale of real property 1,342,025.00 67,101.25 PETER YANG sss Sale of real property 2 ,077 ,316 .40 103,865.82 PHIL GENETICS INC Sale of real property 607,200.00 30 ,360 .0 0 PHIL GENETICS INC TTT Sale of real property 631 ,305.40 31 ,565.27 POB CORP Sale of real property 8 ,013 ,6 6 4.91 400,683.25 PROBITY SECURITY uuu Sale of real property 375,000.00 18,750.00 RBL FISHING vw Sale of real property ROBERTO SY www Sale of real property 45,157.20 2,257.86 SANTOS BAYLE Sale of real property 2,029 ,927 .0 0 101 ,496.35 SANTOS ,PARUNGAO XXX Sale of real property 2,673,131 .80 133,656.59 SEACAUCUS DEVT yyy Sale of real property 4,288,750.00 214,437 .50 SHADWELL LTD Sale of real property 4 ,209,545.4 0 210,477.27 SPS ANTONIO LIM llZ Sale of real property 2,063,253.80 103,162.69 SPS DOMINADOR LOPEZ Sale of real property 1,812,589.00 SPS EDGAR SALCEDO AAAA Sale of real property 1,666,700.00 90,629.49 SPS E. MACAIBAY Sale of real property 1,267,625.00 83 ,335 .00 SPS H. TAGAYSAY BBBB Sale of real property 1,608,200.00 63,381 .25 SPS MANUEL YNGSON Sale of real property 3 ,756 ,082 .0 0 84,910.00 SPS MANUEL YNGSON ecce Sale of real property 1,297,891 .40 187,804.10 SPS RICALDE Sale of real property 4 ,2 6 6 ,4 9 6.0 0 64,894.57 DODD Sale of real property 1' 120,933.00 213,324.80 SPS R. CALIMBARIN Sale of real property 56,046.65 EEEE Sale of real property 901 ,255.60 45,062.78 SPS R. CALIMBARIN Sale of real property 901 ,255.60 45,062.78 SPS ROBERT TY FFFF Sale of real property 1,278,028.00 63,901 .40 SPS RODOLFO TAN Sale of real property 666,005.00 33,300.25 STMARY ESTATE CORP GGGG Sale of real property 1,186,630.00 59,331 .50 STMARY ESTATE CORP Sale of real property 1' 186,630.00 59,331 .50 SUAN YUYITANG HHHH Sale of real property 4,480,000.00 224 ,000 .00 SUNNYVALE DEVT Sale of real property 437 ,5 0 0 .0 0 21 ,875.00 SYS PROPERTY 1111 Sale of real property 1,304,362.40 65,218.12 SYS PROPERTY JJJJ Sale of real property 1,304,362.40 6 5 ,218.12 TERESITA DAZA Sale of real property 522,682.00 26,134.10 THREE'S CO KKKK Sale of real property 818 ,840 .0 0 40 ,942.00 VENTURE COMML Sale of real property 781 ,725.00 39,086.25 VENTURE COMML LLLL Sale of real property 4 ,467 ,0 0 0 .0 0 223,350.00 VILSONS& CO Sale of real property 1,061 ,610.00 53,080.50 VISTA HOLDINGS MMMM Sale of real property 4,1 23,636.40 206,181 .82 WEALTH SECURITIES Sale of real property 541 ,227.20 27,061 .36 IGNACIO NNNN 1,485 ,925 .0 0 74,296.25 WONG LAI MING 2 ,9 5 7 ,0 6 2 .4 0 147,853 .1 2 0000 pppp QQQQ RRRR ssss TTTT uuuu ww wwww xxxx yyyy ZllZ AAAAA BBBBB ccccc DDDDD EEEEE FFFFF GGGGG HHHHH

DECISION C.T.A. CASE NO. 6066 Page 10 WONG LAI MING IIIII Sale of real property 2,956,562.40 147,828.12 ZEUS SYSTEMS JJJJJ Sale of real property 2,168,250.00 108,412.50 GREENHILLS PROP. Sale of real property 5,844,312.71 292,215.63 GREENHILLS PROP. KKKKK Sale of real property 5,156,742 .60 257 ,837 .3 4 GREENHILLS PROP. Sale of real property 3 ,437 ,831.02 171 ,891 .50 KINGSONS ENTRP LLLLL Sale of real property KINGSONS ENTRP MMMMM Sale of real property 902,580.00 45 ,129.00 QUORUM INTL Sale of real property 601 ,580.00 30,079.00 TV REALTY HOLDINGS NNNNN Sale of real property 696,243.20 34,812.16 BAKERS NINE REALTY Sale of real property 2 ,205 ,000 .0 0 110,250.00 PLO SHARES INC 00000 Sale of real property 134,468.55 A BROWN ppppp 134,468.55 6 ,723.42 A SORIANO CORP Lease 6 ,723.42 BANKARD aaaaa Lease 7 ,500 .00 CAPITOL SECURITIES Lease 36,000.00 375.00 CHOPSTIX EXPRESS RRRRR Lease 75,227.20 1,800.00 CHOPSTIX EXPRESS Lease 18,000.00 3,761 .36 CHOPSTIX EXPRESS sssss Lease 56 ,057 .20 COUNTRY HOUSE Lease 196,200 .00 900.00 COUNTRY HOUSE TTTTI Lease 196 ,200 .00 2,802.86 CRUMBS Lease 9 ,810 .00 DEL MONTE PHILS uuuuu Lease 8 ,448 .00 9 ,810 .00 FAR EAST BANK Lease 54,982.80 FIL-ESTATE REALTY wwwww Lease 111 '139.00 422.40 FRIGOS Lease 10,000.00 2,749.14 FRIGOS yyyyy Lease 533,1 68.00 5 ,556 .95 GAMMOX FOODS Lease GAMMOX FOODS ll222. Lease 3.750.00 500 .00 GAMMOXFOODS ll222. Lease 16,800.00 26,658.40 GDC REALTY ll222. Lease 56,774.20 GOLDEN MAPLE BBBBBB Lease 109,001.00 187.50 GRILL & BROIL BBBBBB Lease 107,171 .60 840.00 HOUSE OF MINIS Lease 79,775.80 2,838 .71 HOUSE OF MINIS cccccc Lease 108 ,000 .00 5 ,450 .05 JOCRISON Lease 108,000.00 5 ,358 .58 LG COLLINS DDDDDD Lease 206,995.20 3 ,988.79 MAE CHOW LINE EEEEEE Lease 75,000.00 5,400.00 MAE CHOW LINE Lease 50 ,000 .00 5 ,400 .00 MAE CHOW LINE FFFFFF Lease 36,000.00 10 ,349 .76 MARINO OLONDRIZ GGGGGG Lease 12,500.00 3 ,750 .00 MBF CARD GGGGGG Lease 36,935.60 2,500.00 MCRP CONSTRUCTION HHHHHH Lease 68,127.60 1,800.00 ML& H CORP Lease 98,632.00 625.00 NORTHERN TELECOM HHHHHH Lease 36,000 .00 1,846.78 OKAMURA-UBIX HHHHHH Lease 3 ,406 .38 PACIFIC ONLINE Lease 7 ,500 .00 4,931 .60 PARENT FOR EDUC I IIIII Lease 72,000.00 1,800.00 JJJJJJ Lease 18,000.00 375 .00 KKKKKK 20,000.00 3,600.00 1,641 ,600.00 900.00 LLLLLL 72,000.00 1,000.00 LLLLLL 82 ,080 .00 MMMMMM 4,000.00 3 ,600 .00 200 .00 NNNNNN 000000 000000 000000 pppppp QQQQQQ RRRRRR ssssss TTTTTT uuuuuu xxxxxx yyyyyy

DECISION C.T.A. CASE NO. 6066 Page 11 PSEI llllll. Lease 10,000.00 500.00 PUNO LAW OFFICE AAAAAAA Lease 108,000.00 5,400.00 Lease 1,212.37 SAINT CINNAMON BBBBBBB Lease 24,247.40 1,153.89 Lease 23 ,077.80 2,646.63 SAINT CINNAMON BBBBBBB Lease 52 ,932 .60 5,132.60 SAKI JAP Lease 102,652.00 2,540.74 SAKI JAP ccccccc Lease 50,814.80 7 ,021.40 SAKI JAP ccccccc Lease 140,428.00 10,898.53 SAKI JAP ccccccc Lease 217,970.60 1,723.50 ccccccc Lease 34,470 .00 6,669.18 Lease 133,383.60 3,900 .00 SIZZLING SEAFOODS DDDDDDD Lease 78 ,000 .00 2,918.66 Lease 58,373.20 2,992.22 SPRINT FITNESS EEEEEEE Lease 59,844.40 3,600.00 Lease 72,000.00 SPRINT FITNESS EEEEEEE Lease 345.44 Lease 6 ,908 .80 3,600.00 SPRINT FITNESS EEEEEEE Lease 72,000.00 1,800.00 Lease 36 ,000 .00 SUGBAAN FFFFFFF Lease 375.00 Lease 7,500.00 375.00 SUGBAAN FFFFFFF Lease 7,500.00 94,683.85 Lease 1,893,677.00 2,000.00 TAN LAW OFFICE GGGGGGG Lease 40 ,000 .00 5,369.70 Lease 107,394.00 6 ,783 .97 TASTE OF ASIA HHHHHHH Lease 135,679.40 412.50 Lease 8 ,250.0 0 1,125.00 TEKTITE TECH IIIII II Lease 22,500.00 5,242.62 Lease 104,852.40 39,225.60 ULTRALAND PROP JJJJJJJ Lease 784 ,512 .00 1,215 .81 Lease 24,316.20 6,189.75 UNIVERSAL LEISURE KKKKKKK Lease 123,795.00 1,129.51 Lease 22,590.20 3,592.43 UNIVERSAL RIGHTFIELD LLLLLLL Lease 71 ,848.60 5,275.07 Lease 105,501 .40 375.00 VIA MARE MMMMMMM Lease 7 ,500 .0 0 17,406 .08 Lease 348,121 .60 1,680.00 WBROWN&CO NNNNNNN Lease 33 ,600 .00 2,892.50 WEST LAKE GARDEN Lease 57,850.00 3,143.53 0000000 Lease 62 ,870 .60 2,000.00 Lease 40,000.00 2,250.00 AYUYAO, CARMINA U-22 45 ,000 .00 2,000.00 40 ,000.00 14,214.95 BANKARD V-22 284,299 .00 28,744,808.15 p 575,361,397.84 p BANKARD V-22 CRUMBS W-22 DIANA SHRIVASTAVA X-22 EGGS, BEANS & GRAINS Y-22 FRILLE & BROIL Z-22 GS& P FOODS A-23 INDAY-INDAY B-23 INDAY-INDAY B-23 JARDINE CMG LIFE C-23 QUORUM D-23 SIZZLING SEAFOODS E-23 SIZZLING SEAFOODS E-23 SIZZLING SEAFOODS E-23 WBROWN&CO F-23 WBROWN&CO F-23 WBROWN&CO F-23 WEST LAKE GARDEN G-23 Total f //,/1 /

DECISION C.T.A. CASE NO. 6066 Page 12 Finally, with regard to the third requirement, petitioner was able to establish that the income corresponding to the 1997 creditable withholding taxes was declared as part of its gross income in its 1997 Annual Income Tax Return. It bears stressing that the 1997 Income Tax Return of petitioner was examined by respondent's revenue examiner who found no finding of discrepancy of income except for the amount of P20,008.07, representing deficiency expanded withholding tax and penalties which, as stated earlier, was settled by petitioner (page 841-C, BIR records). In sum, petitioner is entitled to the refund of the amount of P28,744,808.15, representing its excess creditable withholding taxes for the year 1997, computed as follows : Total Excess Creditable Withholding Taxes for 1997 & 1998 P34 ,787,670 .00 Less : Exceptions 1. 1996 Excess Creditable Withholding tax P 5,913,663 .00 2. Not validly supported by certificates of creditable withholding tax 129, 198.85 6,042,861.85 Refundable Amount P28 744 808 .15 WHEREFORE, m vtew of all the foregoing, the instant petition Is PARTIALLY GRANTED. Accordingly, respondent is hereby ORDERED to REFUND to petitioner the amount of P28,744,808 .15 representing its overpaid creditable withholding taxes for the taxable year 1997. SO ORDERED. (;)__:; l9� o~ ' ERNEsTo D. ACOSTA Presiding Judge

DECISION C.T.A. CASE NO. 6066 Page 13 WE CONCUR: ru..\Niro s:L-~<?. ~~. Q . C. CASTANEDA,'fR. Associate Judge 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. ~l-9. CL-vt_ ERNESTO D. ACOSTA Presiding Judge