cta_decision CTA Case No. 64196419 2007-08-22

INTEL PHILIPPINES MANUFACTURING, INC. v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES Court Of Tax Appeals QUEZON CITY SECOND DIVISION SILICON PHILIPPINES, INC. C.T.A. CASE NO. 6419 (formerly INTEL PHILIPPINES MANUFACTURING, INC.), Members: Petitioner, CASTANEDA, JR., Chairperson UY, and -versus- PALANCA-ENRIQUEZ, JJ. COMMISSIONER OF INTERNAL Promulgated: REVENUE, AUG 2 2zoo~ Respondent. X ------------------------------------------------------------------------------------ X AMENDED DECISION PALANCA-ENRIQUEZ, J.: This resolves petitioner's "Motion For Reconsideration [of the Decision Dated October 25 , 2006] " fil ed on November 20, 2006, praying for reconsideration of this Court' s decision dated October 25 , 2006, the dispositive portion of which reads as follows: "WHEREFORE, premises considered, the instant petition is hereby DENIED DUE COURSE, and accordingly, DISMISSED for lack of merit. SO ORDERED." ~

C.T.A. CASE NO. 6419 2 AMENDED DECISION The motion is anchored on the following grounds: I THE SECOND DIVISION OF THE HONORABLE COURT OF TAX APPEALS ERRED IN DENYING PETITIONER'S CLAIM FOR REFUND OR ISSUANCE OF TAX CREDIT CERTIFICATE ON THE BASIS OF A NON-EXISTENT GROUND, THAT IS, ON ALLEGED VIOLATION OF INVOICING REQUIREMENTS. II THE SECOND DIVISION OF THE HONORABLE COURT OF TAX APPEALS ERRED IN INVALIDATING AND DENYING OUTRIGHT THE CLAIM FOR REFUND OF PETITIONER, THE SAME BEING NOT AMONG THE PENALTIES PROVIDED FOR UNDER ARTICLE 264 OF THE TAX CODE. III THE SECOND DIVISION OF THE HONORABLE COURT OF TAX APPEALS ERRED IN NOT GRANTING PETITIONER'S CLAIM FOR REFUND. Despite notice, counsel for respondent has failed to file his comment to the motion. After a careful examination of the Motion For Reconsideration, this Court holds that an amendment of the assailed decision dated October 25, 2006 is in order, in view of the recent decision of the Supreme Court in "Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue", G.R. No. 16673, promulgated on April27, 2007, inv~

C.T.A. CASE NO. 6419 3 AMENDED DECISION same herein parties and concemmg the same issue on whether the provision of Section 113, in relation to Section 237 of the NIRC of 1997, as amended, was violated when petitioner presented sales invoices that do not have the BIR permit to print and whether this alleged infraction is fatal to its claim for tax credit/refund. In Our decision dated October 25 , 2006, now sought to be reconsidered, We found that petitioner's export sales in the amount of P1 ,191 ,670,353 .33 for the period January 1, 2000 to March 21 , 2000 fall under the category of export sales transactions, subject to zero percent (0%) VAT, pursuant to Section 106 (A) (2)(a)(J) ofthe NIRC of 1997, as amended. We ruled petitioner to be legally entitled to a claim for refund or issuance of tax credit certificate of its unutilized VAT input taxes on domestic purchases of goods and services attributable to its zero-rated sales. We denied petitioner's claim, however, on the ground that it failed to comply with the invoicing requirements under Sections 113 and 237 of the NIRC of 1997, as amended, since the computer generated sales invoices issued by the petitioner do not bear the BIR authority to print (Exhibits "Y-1 " to "Y-3 "). We ruled that petitioner's failure to imprint the BIR permit number on the face of the sales receipts or invoices is fatal to its claim.

C.T.A. CASE NO. 6419 4 AMENDED DECISION In the aforesaid recent case of "Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue", supra, the Supreme Court reversed and set aside the decision of the Court of Appeals, dated August 12, 2004, in CA-G.R. SP No. 79327 which affirmed the decision dated April 21 , 2003 of the Court of Tax Appeals in C.T.A. Case No. 6128 denying petitioner' s claim for refund or issuance of a tax credit certificate, and ruled as follows: "Significantly, the CTA and the CA have similarly found petitioner to be legally entitled to a claim for refund or issuance of tax credit certificate of its unutilized VAT input taxes on domestic purchases of goods and services attributable to its zero-rated sales. They denied petitioner's claim, however, on the ground that it purportedly failed to comply with the invoicing requirements under Sections 113 and 237 of the Tax Code since its sales invoices do not bear the BIR authority to print, and several of the invoices do not indicate the TIN-V. On the latter point, the Court disagrees with the CTA and CA. As correctly argued by petitioner, there is no law or BIR rule or regulation requiring petitioner's authority from the BIR to print its sales invoices (BIR authority to print) to be reflected or indicated therein. Sections 113 , 237 and 238 of the Tax Code provide: Sec. 113. Invoicing and Accounting Requirements for VAT- Registered Persons. - (A) Invoicing Requirements. - A VAT-regi stered person shall , for every sale, issue an invoice or receipt. In addition to the information required under Section 23 7, the follo wing information shall be indicated in the invoice or receipt:

C.T.A. CA SE NO . 6419 5 A MENDED DECISION (I ) A statement that the seller is a VAT- registered person, fo llowed by his taxpayer's identification number; and (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax. (B) Acco untin g Requireme nts. - N otw ithsta ndin g the prov isio ns of Secti on 233, all persons subj ect to the va lu e-add ed tax under Secti o ns I 06 and I 08 s ha ll , in addit ion to the regul a r acco untin g reco rd s required, ma inta in a subsidi ary sa les j ourna l and subsidia ry purchase j o urn a l on w hi ch th e da il y sales and purchases are recorded . The subsidiary j o urna ls sha ll conta in such info rm ati on as may be required by th e Sec reta ry of F inance. (emphas is suppli ed) Sec. 237. Issuance of Receipts or Sales or Commercial Invoices. - All persons subject to an internal revenue tax shall, for eac h sale or transfe r of merc handi se o r fo r se rv ices re nd ered va lu ed at Twe nty-five pesos (P25 .00) or mo re, issue duly registered receipts or sales or commercial invoices, p repared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature ofservice: Provided, however, T hat in the case of sales, receipts or transfe rs in th e amount of One Hundred Pesos (PI 00.00) o r mo re, o r regard less of amo unt, w here the sa le o r transfe r is m ade by a perso n li able to va lue-add ed tax to anoth er person a lso lia ble to va lu e-added tax; or where th e receipt is iss ued to cover paym ent made as renta ls, co mmi ssions, co mpensati ons o r fees, rece ipts o r invo ices sha ll be issued w hich sha ll show th e nam e, bus iness style, if any, and address of th e purchase r, custo mer or c lie nt; Provided, further, T hat where the purchaser is a VAT-registered person, in addition to the information herein required, the invoice or receipt shall further show the Taxpayer Identification Number (TIN) of the purchaser. T he ori g in a l of eac h rece ipt or in vo ice sha ll be issued to the purchaser, customer o r c li ent at th e time the transactio n is effected, w ho, if e ngaged in business or in the exercise of profess io n, sha ll kee p and preserve the same in hi s place of business fo r a peri od of three (3) years fro m the c lose of th e taxabl e year in w hi c h such in vo ice or rece ipt was iss ued, while th e dupli cate sha ll be kept a nd prese rved by the issue r, a lso in hi s place of business, for a like peri od. The Co mmi ss io ner may, in merito ri o us cases, exe mpt any perso n subj ect to an intern a l reve nue tax from co m pi iance w ith the prov isio ns of thi s Secti o n. (e mph as is suppli ed)

C.T.A. CASE NO. 6419 6 AMENDED DECISION Sec. 238. Printing of Receipts or Sales or Commercial Invoices. -All persons who are engaged in business shall secure from the Bureau of Internal Revenue an authority to print receipts or sales or commercial invoices before a printer can print the same. No authority to print rece ipts or sales or commercial invoices shall be granted unless the receipts or invoices to be printed are seriall y numbered and shall show, among other things, the name, business style, Taxpayer Identification Number (TIN) and business address of the person or entity to use the same, and such other information that may be required by rules and regul ations to be promulgated by the Secretary of Finance, upon recommendation of the Commissioner. All persons who print receipt or sales or commercial invoices shall maintain a logbook/register of taxpayer who availed of their printing services. The logbook/register shall contain the following information: (I) Names, Taxpayer Identification Numbers of the persons or entities for whom the receipts or sales or commercial invoices are printed; and (2) Number of booklets, number of sets per booklet, number of copies per set and the serial numbers ofthe rece ipts or invoices in each booklet. (emphasis supplied) RR 2-90, as cited by respondent Commissioner, also states in its Section 19(d) that: Section 19. Authentication and registration of books, register, or records; authority to print receipts, sales or commercial invoices; and registration and stamping ofreceipts and invoices. xxxx (d) Registration and stamping ofreceipts and invoices Before being used, the printed receipts, sa les or commercial invoices shall be registered with the revenue di strict officer where the principal place of business of the taxpaye r is located within thirty (30) days from the date of printing the same. The registration of the printed receipts or invoices shall be evidenced by an appropriate stamp on the face of the taxpayer 's copy of the authority to print as well as on the front cover, on the back of the middle invoice or receipt and on the back of the last invoice or receipt of the registered booklet ~

C.T .A. CAS E NO . 6419 7 AM END ED DECISION or pad, authenticated by the signature ofthe officer authorized to place the stamp thereon. (emph as is suppli ed) RR 7-95 , the Consolidated VAT Regulations, also states in Section 4.108-1 that: Section 4.108-1. Invoicing Requirements. - All VAT- registered perso ns shall, fo r every sale or lease of goods or properti es or se rvi ces, issue duly registered receipts or sales o r comm e rc ial invo ices whi ch must show: 1. the name, TIN and address of se ller; 2. date of tra nsacti on; 3. qu antity, unit cost and descripti on of merchandi se or nature of se rvice; 4 . th e na me, TIN , bus iness sty le, if any, and address of th e VAT -registered purchaser, c ustomer or cli ent; 5. th e word "zero-rated" imprinted on the in vo ice coverin g zero-rated sales; and 6. th e invo ice va lue or co nsiderati on. In the case of sale of real property subj ect to VAT and where the zo nal or market va lue is hi gher than the actual cons ide rati on, the VAT shall be se parate ly indi cated in th e invo ice or rece ipt. Onl y VAT-registered persons are required to print the ir TIN fo llowed by th e wo rd " VAT" in the ir in vo ices or rece ipts and thi s shall be co ns ide red as a "VAT-invo ice." A ll purchases cove red by invo ices oth er th an " VAT Invoice" shall not give ri se to any input tax. If th e taxa ble perso n is also e ngaged in exempt ope rati ons, he should issue separate invo ices or receipts fo r the taxable and exempt operati ons. A " VAT-invo ice" shall be issued onl y for sales of goods, properti es or servi ces subj ect to VAT imposed in Secti ons 100 a nd 102 of the Code. The in vo ice or receipt shall be prepared at least in duplicate, the ori ginal to be give n to th e bu yer a nd the dupli cate to be reta ined by the se ller as pa rt of his accountin g reco rd s. It is clear from the foregoing that while ent1t1es engaged in business are required to secure from the BIR an authority to print receipts or invoices and to issue duly registered receipts or invoices, it is not required that the BIR authority to print be refl ected or indicated therein. Only the ()JJfv

C.T.A. CASE NO . 6419 8 AMENDED DECISION following items are required to be indicated in the receipts or invoices: (1) a statement that the seller is a VAT-registered entity followed by its TIN-V; (2) the total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax; (3) date of the transaction; (4) quantity of merchandise; (5) unit cost; (6) description of merchandise or nature of service; (7) the name, business style, if any, and address of the purchaser, customer or client in the case of sales, receipt or transfers in the amount of:P100.00 or more, or regardless of the amount, where the sale or transfer is made by a person liable to VAT to another person also liable to VAT, or where the receipt is issued to cover payment made as rentals, commissions, compensations or fees ; and (8) the TIN of the purchaser where the purchaser is a VAT-registered person." In the light of the aforequoted decision of the Supreme Court, We amend Our decision to conform with said decision. We rule that out of petitioner' s reported export sales in the amount ofP1,240,201 ,005 .61 for the first quarter of 2000 (Exhibit "D '), the amount of P1,191 ,670,353 .33 , which was verified to have been duly supported by export documents (Exhibits "U-19 " to "U-408", " V-1 " to " V-530 ", "W-1 " to " W-631 '), export declarations (Exhibits "X- 1 " to "X-38 '), sales invoices (Exhibits "Y-1 " to "Y- 3') and certificates of inward remittances, petitioner' s passbooks, statements of account, fund transfer reports issued by Citibank, N.A. and Rizal Commercial Banking Corporation (Exhibits "G ", "H ", "U-1 " to "U- 18'), qualifies for VAT zero-rating under Section 106(A)(2)(a)(l) of the NIRC of 1997, as amended. However, the rest of the declared export ~

C.T.A. CASE NO. 6419 9 AMENDED DECISION sales in the amount of P48,530,652.28 cannot qualify for VAT zero- rating for petitioner's failure to substantiate the same. Considering that petitioner's export sales ofP1,191,670,3 53.33 are subject to zero percent (0%) VAT, petitioner may validly claim for refund/tax credit certificate of the unutilized excess input VAT attributable thereto, pursuant to Section 112{A) of the NIRC of 1997, as amended, which provides: "SEC. 112. Refunds or Tax Credits of Input Tax. - (A) Zero-rated or Effectively Zero-rated Sales. -Any VAT- registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax : Provided, however, That in the case of zero-rated sales under Section I06(A)(2)(a)(l ),(2) and (B) and Section I 08 (B)( I) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP): Provided , further, That where the taxpayer is engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt sale of goods or properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales." We shall now determine whether petitioner was able to substantiate with proper documents its reported unutilized input VAT for the first quarter of2000 in the amount ofP23 ,151,845.40. (JP

C.T.A. CASE NO. 6419 10 AMENDED DECISION In her report dated November 17, 2003 (Exhibit "R "), the commissioned independent CPA, Ma. Wencita C. Salvador, disallowed the following amounts, insofar as petitioner's input VAT claim of P23 ,151,845.40 is concerned: Exceptions Findings Exhibit No. Amount Exception A Missing official receipts and invoices Exhibit T-1 p 1,089 ,232 .34 Exception B Incorrect computation of Input VAT Exhibit T-2 Exception C Claimant is not the actual buyer Exhibit T-3 800 ,924.95 Exception D Purchases with missing official receipts . Exhibit T-4 62 ,936.07 70,277.69 Total p 2,023 ,371 .05 Upon a careful examination of the CPA's report and the related invoices and receipts covering petitioner's domestic purchases of goods and services (Exhibits "0 ", "0-1 " to "0-4365 ') and petitioner's import documents (Exhibits "P- 1 " to "P-1 78'), this Court finds that of the total input VAT of P2,023,371.05 excepted by Ma. Wencita C. Salvador, the amount of P863 ,706 .68 (see detailed breakdown, hereto attached as Annexes B, C, D & E) represents petitioner's valid claim, as this is properly supported by VAT invoices or official receipts. Only the remaining input VAT of P1, 159,664.3 7 (P2,023,371.05 less P863 ,706.68) should be denied, broken down, as follows: Disallowed lnEut VAT Per this Court's Petitioner's Valid Input VAT Exceptions Findings Per CPA Report Verification Exception A Missing official receipts and invoices p 42,333 .69 Exception B Incorrect computation of Input VAT p 1,089 ,232.34 p 1,046 ,898 .65 800,762 .34 Exception C Claimant is not the actual buyer 800,924 .95 162.61 8,939.65 62 ,936.07 53 ,996.42

C.T.A. CASE NO. 64 19 11 AMENDED DECISION Exception 0 Purchases with missing official 70 ,277.69 58 ,606 .69 11 ,671 .00 Total receipts . P2,023 ,371.05 p 1,159,664.37 P863,706 .68 Furthermore, in addition to the input VAT of Pl , l59,664.37, the amount of P8,359,952.66 (see detailed breakdown, hereto attached as Annex A) should be disallowed for the fo llowing reasons: Findings Input VAT a) Input VAT on purchase of goods which are supported by TIN-VAT P3,468 ,112.46 Invoice dated not within the period of claim 686.73 b) Input VAT on purchase of goods supported by undated TIN-VAT 17,571 .96 133,035 .07 Invoice 89 ,695 .52 c) Input VAT on purchase of services supported by u ndated TIN-VAT OR 138,000.00 d) Input VAT on purchase of services supported by documents other than 534.55 VAT Ors 627.27 375 .00 e) Input VAT on purchase of goods supported by documents other than 903 ,696 .10 VAT Invoices 3.607 ,618 .00 P8.359.952 66 f) Input VAT on purchase of services supported by "TAN-VAT" OR g) Input VAT on purchase of goods supported by VAT Invoice issued not in the Company's name h) Input VAT on purchase of services supported by OR not classified as VAT registered i) VAT Invoice supporting purchase of goods was not formally offered as evidence j) Input VAT on purchases of goods and services without supporting documents k) Input VAT on Importations- corresponding Exhibits P-1 to P-178 were denied by the Court Total In sum, ofthe total input VAT claim ofP23 ,151 ,845.40, only the amount of Pl3 ,632,228.37, as computed below, is duly supported by VAT invoices and/or official receipts, in accordance with Section 4.I 04-5 of Revenue Regulations No. 7-95, in relation to Sections II O(A) and II3 ofthe NJRC of I997, as amended:

C.T.A . CASE NO. 6419 12 AMENDED DEC ISION Amount of Input VAT Claim P23 ,151 ,845.40 Less: Disallowances P1 ,089 ,232 .34 a) Per CPA's Report 800 ,924.95 Missing official receipts and invoices (Exhibit T-1) 62 ,936.07 Incorrect computation of Input VAT (Exhibit T-2) 70 277 .69 Claimant is not the actual buyer (Exhibit T-3) Purchases with missing official receipts (Exhibit T-4) P2 ,023 ,371 .05 Total Less: Petitioner's valid claim per this Court's (863 ,706 .68) p 1,159,664 .37 Findings 8,359,952 .66 b) Additional disallowances per this Court's findings p 9,519 ,617 .03 Total Disallowances P13.632.228.37 Validly Supported Input VAT Records further show that the substantiated input VAT of Pl3 ,632,228.3 7 was not applied against any output VAT during the first quarter of 2000 and in the succeeding quarters (Exhibits "D ", "L ", "M" and "N '). Petitioner has also proven that the subject claim was seasonably filed. The reckoning of the two-year prescriptive period for the filing of a claim for refund/credit input VAT on zero-rated sales is counted from the date of filin g of the return and payment of the tax due which, according to the law then existing, should be made within 20 days (now 25 days) from the end of each quarter (A tlas Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue, G.R. Nos. 141104 & 148763, dated June 8, 2007) .

C.T.A . CASE NO. 6419 13 AMENDED DECISION Counting from April 25 , 2000 (Exhibit "D "), the date when petitioner filed its VAT return for the first quarter of 2000, both the administrative claim and the Petition for Review were filed within the two-year prescriptive period on May 18, 2000 and March 26, 2002, respectively. This Court, therefore, concludes that petitioner has sufficiently proven its entitlement to the issuance of a tax credit certificate, representing unutilized excess input taxes, which are directly attributable to its zero-rated sales for the period January 1, 2000 to March 31 , 2000, but in the reduced amount ofP13,098,781.83 , computed as follows: Substantiated Zero-Rated Sales p 1'191 ,670 ,353 .33 Divided by Total Zero-Rated Sales per VAT Return + 1,240 ,201 ,005 .61 Multiplied by Validly Supported Input VAT X 13 ,632 ,228 .37 Input VAT Attributable to Substantiated Zero-Rated Sales p 13.098.781.83 In view of the foregoing, it is clear that an amendment of Our Decision dated October 25 , 2006 is in order. WHEREFORE, foregoing premises considered, petitioner's "Motion for Reconsideration" is hereby GRANTED . Respondent Commissioner of Internal Revenue is hereby ORDERED to ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner in the reduced amount of THIRTEEN MILLION NINETY EIGHT THOUSAND SEVEN HUNDRED EIGHTY ONE AND 83/100 PESOS

C.T.A. CASE NO. 6419 14 AMENDED DECISION (P13,098,781.83), representing unutilized excess input VAT attributable to zero-rated sales for the period January 1, 2000 to March 31, 2000. SO ORDERED. ~~~~ OLGA PALANCA-ENRIQUEZ Associate Justice WE CONCUR: EA~~~~.stUicYe ~-~ (2 0 a;r-~~ Q_ CfuANITO c. CASTANEDA(.ffi: Associate Justice ATTESTATION I attest that the conclusions in the above Amended Decision were reached in consultation before the case was assigned to the writer of the opinion ofthe Court's Division. ~~G.~~ \0 JUANITO c. CASTANEDAYJR: Associate Justice Chairperson, Second Division CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, and the Division Chairperson's Attestation, it is hereby certified that the conclusions in the above Amended Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court. t--.- Q. ~ ERNESTO D. ACOSTA Presiding Justice

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Vendor Name Exhibit No. Disallowed Input VAT Amount a) Input VAT on purchase ofgoods which 0-68 are supported by TIN-VAT Invoice dated 0-85 4, 143.94 not within the period ofclaim 0 -90 311.61 Alps Maintaineering Services 0-95 253 . 18 Amalgated Specialties Corp. 0-96 109 .00 Amalgated Specialties Corp. 0-97 110.00 Analogic Systems Corp. 0-98 78 .00 Analogic Systems Corp. 0-99 286 .00 Analogic Systems Corp. 0-101 22.00 Analogic Systems Corp. 0-139 220 .00 Analogic Systems Corp. 0-157 Analogic Systems Corp. 0-162 1,000 .00 Analogic Systems Corp. 0-167 10,058 .85 Anixter Phils., Inc. 0-168 Anzo Sales & Eng'g Services 0-178 127.27 Applied Precision Corp. 0-179 23 ,909.09 App lied Precision Corp. 0-180 Aqua Technologies Inc. 0-181 909.09 Aqua Technologies Inc. 0-182 1,409.12 Aqua Technologies In c. 0-183 Aqua Technologies Inc. 0-200 352 .27 Aqua Technologies lnc. 0-201 352.27 Aqua Technologies Inc. 0-202 880 .68 Abenson, Inc. 0-203 528.41 Abenson, Inc. 0-204 704.55 Abenson , Inc. 0-206 481.36 Abenson, Inc. 0-286 775.09 Abenson, Inc. 0-306 420 .09 Abenson, In c. 0-307 1,772 .73 AD Enterprises 0-308 545 .00 Advent Sales & Technologies 0-355 1, 170.00 Advent Sales & Technologies 0 -356 363 .64 Advent Sales & Technologies 4,545.45 Agro Printing & Publishin g, Inc. 4,545.45 Agro Printing & Publishing, Inc. 4,545.45 460.00 255.0~

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total Agro Printing & Publishing, Inc. 0-357 Agro Printing & Publishing, Inc. 0-358 420 .00 Agro Printing & Publishing, Inc. 0-359 Agro Printing & Publishing, Inc. 0-440 433.00 G . C. Emery Sales 0-595 G . C. Emery Sales 0-596 135 .00 G. C. Emery Sales 0-597 G. C. Emery Sales 0-598 620.02 G . C. Emery Sales 0-599 As ialift Incorporated 0-608 229.65 Atlas Copco (Phi ls.) Inc. 0 -629 Atlas Copco (Phils.) Inc. 0-631 676.63 A.T. Tonio Enterprises 0-634 A.T. Tonio Enterprises 0-635 2,553 .63 Aurotech Systems Phils. Inc. 0-638 0-735 1,353 .59 Consolidated Industrial Gases Inc. 0-736 Consolidated Industri al Gases Inc. 0 -737 I ,679.84 Consolidated Industri al Gases Inc. 0-738 Consolidated Industri al Gases Inc. 0-739 6,677.27 Consolidated Industri al Gases Inc. 0-740 Consolidated Industrial Gases Inc. 0-741 4,769 .79 Conso lidated Industri al Gases Inc. 0-742 Consolidated Industri al Gases Inc. 0-743 4 ,769 .79 Consolidated Industri a l Gases Inc. 0-744 Consolidated Industri al Gases Inc. 0-746 80 .00 Consolidated Industri a l Gases Inc. 0-749 Consolidated Industri al Gases Inc. 0-750 120 .00 Consolidated Industri al Gases Inc. 0-756 Consolidated Industri al Gases Inc. 0-757 682.27 Consolidated Industri al Gases Inc. 0-868 0-869 I ,704 .55 Chase Pacific Technology 0-902 Chase Pacific Techn ology 0-903 272 .73 CL Alapag Trad ing 0-904 CL Alapag Trad ing 0-905 1,227.27 CL Alapag Trading CL Alapag Trading 3,162.62 75 ,280.43 18,928.39 23 ,834.94 36,455 .04 1,890.91 36 ,693.32 1,090.91 681.82 1,227.27 5,454.55 5,500 .00 1,785 .00 3,155 .00 7 ,234 . 18 4,227 .27 2, 189.65 90 .00 ~ q~

AnnexA SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total CL Alapag Trading 0-906 Clean Living Inc. 0-943 I ,826.18 Clean Living Inc. 0-945 Clean Living Inc. 0-946 40 .35 Clean Living Inc. 0-948 Clean Living Inc. 0-949 103.91 Clean Living Inc. 0-950 Clean Living Inc. 0-952 339.20 C lean Living Inc. 0-953 Clean Living Inc. 0-954 579.35 Clean Living Inc. 0-955 Clean Living Inc. 0-956 438 .37 Clean Living Inc. 0-957 Clean Living Inc. 0-959 158.71 Clean Living Inc. 0-960 Clean Living Inc. 0-961 44.28 Clean Living Inc. 0-966 Clean Living Inc. 0-967 I 01.68 Clean Living Inc. 0-970 Clean Living Inc. 0-971 348 .74 Clean Living Inc. 0-972 Harvester Machine Works 0-1000 444.01 Harvester Machine Works 0-1003 Intertek Testing Services 0-1034 255.90 Intertek Testing Services 0-1036 Intertek Testing Services 0-1037 157.55 Jacinto Industrial Products Inc. 0-1048 Kimberly-Clark Phils. , Inc. 0-1144 233.29 Kimberly-Clark Phils., Inc. 0-1145 Kimberly-Clark Phils. , Inc. 0-1146 397 .50 Kimberly-Clark Phils. , Inc. 0-1153 La Rota Tools & Die Services 0-1178 305.26 La Rota Tools & Die Services 0-1179 La Rota Tools & Die Services 0-1180 I 06.70 La Rota Tools & Die Services 0-1181 La Rota Tools & Die Services 0-1182 270.85 87.00 24.66 14.53 1,272.73 2,000.00 664.52 7,729.24 I ,870.00 20,060.97 4,272 .72 I ,709.09 2,990.91 I, I 07.49 525.00 420.00 210.00 1,315.00 630.00 ~ QY

Annex A SILICON PHJUPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total La Rota Tools & Die Services 0-1184 LCU Designs Inc. 0-1199 6,000.00 Legaspi Import & Export Corp. 0-1236 13 ,645.45 Liang Chi Marketing Corp. 0-1249 3,600.00 Liang Chi Marketing Corp. 0-1250 0-1254 4,663.64 Locator International Telecom & Traders Corp. 0-1333 Trans World Trading Co., Inc. 0-1492 8,550.00 PVC International Sales Corp. 0-1550 Rapport Marketing 0-1600 2,818.18 RS Unitech Mfg. & Trading Corp. 0-1641 Seagull Glass Works Inc. 0-1666 3,818.17 Semicon Integrated Electronics Corp. 0-1667 Semicon Integrated Electronics Corp. 0-1677 867.85 Semicon Integrated Electronics Corp. 0-1678 Semicon Integrated Electron ics Corp. 0-1688 500.00 Sim Marketing Corporation 0-1695 4,958.18 SMC Pneumatics Phils., Inc. 0-1696 SMC Pneumatics Phils., Inc. 0-1734 63 .64 Spandex Marketing Corp. 0-2011 Wince! Enterpr ises 0-2052 3,275.00 Technico 0-2056 Techni-Tool Engineer ing 0-2060 1, 188.00 Techno Molds Inc. 0-2061 Techno Molds Inc. 0-2062 920.00 Techno Molds Inc. 0-2063 I ,045.00 Techno Molds Inc. 0-2118 Philman Commercial Inc. 0-2147 4,626.51 Premier Insurance & Surety Corp. 0-2149 Premier Insurance & Surety Corp. 0-2151 861.60 Premier Insurance & Surety Corp. 0-2153 312.00 Premier Insurance & Surety Corp. 0-2155 Premier Insurance & Surety Corp. 0-2157 II ,677.63 Prem ier Insurance & Surety Corp. 0-2159 3,100 .80 Premier Insurance & Surety Corp. 0-2161 Premier Insurance & Surety Corp. 0-2163 29,037.60 Premier Insurance & Surety Corp. 181.82 20,160.00 975.00 1,950.00 1,3 00.00 16,363 .64 814.17 3,074.40 5,954.40 5,954.40 5,954.40 5,954.40 5,954.40 5,954.40 5,954.4(,Al 0�))

AnnexA SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total 0-2165 Premier Insurance & Surety Corp. 0-2167 5,954.40 Premier Insurance & Surety Corp. 0-2169 Premi er Insurance & Surety Corp. 0-2171 5,954.40 Premier Insurance & Surety Corp. 0-2173 Premier Insurance & Surety Corp. 0-2175 252 .00 Premi er Insurance & Surety Corp. 0-2198 0-2200 5,954.40 PVC International Sales Corp. 0-2483 PVC International Sales Corp. 0-2554 5,954.40 Triton Communications Corp. 0-2555 Ventlor Enterprises Inc. 0-2556 5,954.40 Ventlor Enterprises Inc. 0-2557 Venflor Enterprises Inc. 0-2719 234.74 Ventlor Enterprises Inc. 0-3000 Versatrade Marketing 0-3005 312.00 D and A Construction Supply 0-302 1 0-3045 545.45 Dante's Radi ator Enterpri ses Corp. 0-3141 0-3142 2,400.00 Data Center Design Corp. 0-3143 Dingca Enterprise 0-3144 2,450.00 Corne rstee l Systems Corp. 0-3145 Cornersteel Systems Corp. 0-3146 2,360.00 Cornersteel Systems Corp. 0-3147 Cornersteel Systems Corp. 0-3150 560.00 Cornersteel Systems Corp. 0-3159 Cornersteel Systems Corp. 0-3263 1,077.06 Cornersteel Systems Corp. 0 -3287 Cornersteel Systems Corp. 0-3288 4,799 .99 Cornersteel Systems Corp. 0-3289 Domestic Trading Corp. 0-3290 28,227 .28 0-3291 Easycall Communications Phils., Inc. 0-3327 8,513 .27 Easycall Communicati ons Phils., Inc. 0-3328 Easycall Communicati ons Phil s. , Inc. 0-3341 222.20 Easyca ll Communications Phil s. , Inc. 3,818.18 Easycall Communi cati ons Phil s. , Inc. 8,510.45 Gascon Technology Inc. Gascon Technology Inc. 48 ,470.19 GC Emery Sales Inc. 64,636 .85 28 , 180 .59 8,408 .05 56 ,741.59 15 , 846.71 26,619.62 3 , 118.91 263.64 263 .64 75 .00 297 .64 75 .00 9,909.00 8,636.36 216 .00 ~

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total GC Emery Sales Inc. 0-3343 GC Emery Sales Inc. 0-3345 114.00 GC Emery Sales Inc. 0-3538 GC Emery Sales Inc. 0-3539 540.10 Materials Unlimited Corp. 0-4090 Mercury Drug Corp. 0-4113 498.21 Mercury Drug Corp. 0-4115 Mipco Inc. 0-4240 87 .24 0-4266 Nalco Chemica l Company (Phils.) Inc. 0-4267 32,290.91 Nalco Chemical Company (Phi Is.) Inc. 0-4268 Nalco Chemica l Company (Phil s.) Inc. 0-4275 7,244.35 0-4304 NCR Corporation 0-4334 28.64 Mabelle Printing & Trading 0-4335 0-4336 14 , 890 .88 NP Libalib Landscape Contractor Inc. 0-3423 NP Libalib Landscape Contractor Inc. 0-3424 10,905.42 NP Libalib Landscape Contractor Inc. 0-3529 0-3530 43 , I03.57 Eco-Triangle Techno logies Inc. 0-7 Eco-Triangle Technologies Inc. 0-8 26,785.78 Ergonomic Systems Phils. Inc. 0-9 Ergonomic Systems Phils. Inc. 0-31 95 ,872.87 Aleja Blower Corp. 0-31 Aleja Blower Corp. 0-31 14.32 Aleja Blower Corp. 0-31 0-31 45.45 Alpha Ri gging and Moving Systems Inc. 0-31 Alpha Rigging and Moving Systems Inc. 0-31 513.00 Alpha Ri gging and Moving Systems Inc. 0-31 Alpha Ri gging and Moving Systems Inc. 0-44 190 .91 Alpha Ri gging and Moving Systems Inc. 0-46 Alpha Rigg ing and Moving Systems Inc. 0-46 4,049.55 Alpha Ri gging and Moving Systems Inc. 0-46 Alpha Rigging and Moving Systems Inc. 0-46 3,239 .64 Alpha Ri gging and Moving Systems Inc. Alpha Rigging and Moving Systems Inc. 5,454 .55 Alpha Ri gging and Moving Systems Inc. Alpha Rigging and Moving Systems Inc. 4,636.36 Alpha Ri gging and Moving Systems Inc. 3, 185.27 7,285.95 300.00 26,585.90 14,693.40 3, 110.40 55 ,994.43 16,283 .20 8,058 .81 2,489.00 5,521.73 15 ,159.50 10,032.10 5,445.01 5,445.01 2,722.51 ~ (�5

AnnexA SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total 0-46 Alpha Rigging and Moving Systems Inc. 0-46 4,959.00 Alpha Ri gging and Moving Systems Inc. 0-46 Alpha Ri gging and Mo ving Systems Inc. 0-46 40,388.19 Alpha Ri gging and Moving Systems Inc. 0-46 Alpha Ri gging and Mo ving Systems Inc. 0-57 8, 800 .00 Alpha Ri gging and Moving Systems Inc. 0-58 Alpha Ri gging and Mov ing Systems Inc. 0-60 8,363 .64 Alpha Ri gging and Moving Systems Inc. 0-60 Alpha Ri gging and Moving Sys tems Inc. 0-60 17,247.70 Alpha Ri gging and Mov ing Systems Inc. 0-64 Alpha Rigging and Moving Systems Inc. 0-64 2,079 .04 Alpha Ri gging and Moving Systems Inc. 0-257 0-257 11 ,043.54 Add-Force Personnel Serv. Inc. 0-257 Add-Force Personnel Serv. In c. 0-257 5,885 .00 Add-Force Personnel Serv. Inc. 0-262 Add-Force Personnel Serv. Inc. 0-262 5,885 .00 Add-Force Personnel Serv. Inc. 0-262 Add-Force Personnel Serv. Inc. 0-262 8,203 .50 Add-Force Personnel Serv. Inc. 0-262 Add-Force Personnel Serv. Inc. 0-262 5,465.00 Add-Force Personnel Serv. Inc. 0-262 Add-Force Personnel Serv. Inc. 0-262 2,722 .51 Add-Force Personnel Serv. Inc. 0-262 Add-Force Personnel Serv. Inc. 0-262 734 .55 Add-Force Personnel Serv. Inc. 0-262 Add-Force Personnel Serv. Inc. 0-275 805.03 Add-Force Personnel Serv. Inc. 0-275 Add-Force Personnel Serv. Inc. 0 -275 705.83 Add-Force Personnel Serv. Inc. 0-275 Add-Force Personnel Serv. Inc. 0-275 1'111.13 Add-Force Personnel Serv. Inc. 0-275 Add-Force Personnel Serv. Inc. 0-282 1,089.20 Add-Force Personnel Serv. In c. 0-604 Add-Force Personnel Serv. Inc. 0-622 1,097.99 ASB Realty Corp. ATF Resources 1,060.09 1,060.09 356.73 720 .24 900.23 193.92 612.53 612.39 674 .62 2, 160.13 424.45 799.41 575 .51 1, 113.21 1,745.57 707.94 6,583.98 450 .00 {JP-/ @

AnnexA SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total ATF Resources 0-624 Automaster Rent A Car 0-673 405 .00 Automaster Rent A Car 0-675 Automaster Rent A Car 0-675 2,909 .09 Automaster Rent A Car 0-678 Automaster Rent A Car 0-688 3,636.36 Automaster Rent A Car 0-688 Automaster Rent A Car 0-688 3,636.36 0-829 Business Staffin g and Management Inc. 0-848 3,969 .55 0-850 Business Staffin g and Management In c. 0-850 588.41 Business Staffin g and Man agement Inc. 0-850 Business Staffing and Management Inc. 0-850 335 .86 Business Staffin g and Management Inc. 0-850 Business Staffin g and Management Inc. 0-850 3,636.36 Business Staffing and Management Inc. 0-850 Business Staffing and Management Inc. 0-850 3,074.61 Busi ness Staffin g and Management Inc. 0-850 Business Staffin g and Management Inc. 0-860 405.75 Business Staffin g and Management Inc. 0-897 0-1023 384.07 Business Sta ffin g and Management Inc. 0-1058 0-1062 884 .02 Chem-Perts Corp. 0-1064 INPAM 0-1064 2,713 .34 Jacob Machineries Inc. 0-1064 Jacob Machineries Inc. 0-1090 444 .37 Jacob Machineries Inc. 0-1100 Jacob Machineries Inc. 0-1193 68 .93 Jacob Machineries Inc. 0-1268 0-1268 82.42 JM Processing & Freezing Services Inc. 0-1375 0-1375 254.88 Jo Systems Enterprises, Inc. 0-1375 La Rota Tools & Die Services 0-1375 409.18 Locator International Telecom & T raders Corp . 723 .92 Locator Internati onal Telecom & T raders Corp. 437.47 Olive Maintenance Services Inc. Olive Maintenance Services Inc. 73 ,560.00 Olive Maintenance Services Inc. Olive Maintenance Services Inc. 2,000.00 240.00 2,384 .50 4,004.44 3,690.75 750 .00 18,036.00 2,500.00 98 .50 15 ,331.70 15 ,331.70 448 .18 34 , 190.10 34, 190.10 1 ,641.~ Gi9

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total Olive Maintenance Services Inc. 0-1375 Olive Maintenance Services Inc. 0-1375 120,5 63 .10 O live Maintenance Services Inc. 0-1375 Olive Maintenance Services Inc. 0-1375 34,190 . 10 Olive Maintenance Services Inc. 0-1375 O live Maintenance Services Inc. 0-1375 1,538.55 O live Maintenance Services Inc. 0-1375 RCF Contractor Services 0-1561 120,563. 10 RCF Contractor Services 0-1561 RCF Co ntractor Services 0-1561 1,466.75 Records Safekeeping Inc. 0-1569 Remelita F. Garcia 0-1571 34,190.10 0-1614 RS Unitech Mfg. & Trading Corp. 0-1616 458.94 RS Unitech Mfg. & Trading Corp. 0-1637 0-1662 3,022.73 San Miguel Corporation 0-1664 0-1664 4,181.80 Security and Safety Corp. of the Phils. 0-1729 Security and Safety Corp. of the Phils. 0-1904 3,181.82 Security and Safety Corp. of the Phil s. 0-2087 0-2087 10,085 .17 Soundcheck Inc. 0-2087 0-2115 156,000 .00 Systems Controls Instrum entati on Inc. 0-2115 0-2144 727.27 Techresq Computer Services 0-2144 Techresq Computer Services 0-2543 727 .27 Techresq Computer Services 0-2546 PLOT 0-2754 I ,593.55 PLOT 0-2754 Pilipino Te lephone Corp. 0-2759 1,220.55 Pilipino Telephone Corp. 0-2759 0-2759 867.70 UPS-Delbros International Express Ltd. , Inc. 0-2759 UPS-Delbros International Express Ltd ., Inc. 0-2769 398.00 Automaster Rent A Car 2,590.92 Automaster Rent A Car First Asia Semi-Tech Inc. 2,280.00 First Asia Semi-Tech Inc. First Asia Semi-Tech In c. 3,025.73 First Asia Semi-Tech Inc. Globe Te lecom, Inc. 1,654.55 3,025 .73 194,558.78 14,608.55 116.35 143.30 2,546.00 636 .83 2,909 .09 2,355.45 506.32 683.00 940.30 199.26 227.~ �

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total Globe Telecom, Inc. 0-2769 Globe Telecom, Inc. 0-2769 227 .27 Globe Telecom, Inc. 0-2769 GRM International Inc. 0-2797 181.82 GRM International Inc. 0-2797 GRM International Inc. 0-2797 181.82 GRM International Inc. 0-2797 GRM International Inc. 0-2797 8,517.81 GRM International Inc. 0-2797 GRM International Inc. 0-2797 29 .00 GRM International Inc. 0-2797 GRM International Inc. 0-2797 87 .00 GRM International Inc. 0-2797 GRM International Inc. 0-2797 595 .87 GRM International Inc. 0-2797 GRM International Inc. 0-2797 2,279.32 GRM International Inc. 0-2797 GRM International Inc. 0-2797 2,281.50 GRM International Inc. 0-2797 GRM International Inc. 0-2797 1, 150.72 GRM International Inc. 0-2797 GRM International Inc. 0-2797 I , 180 .62 GRM International Inc. 0-2797 GRM International Inc. 0-2797 566 .76 GRM International Inc. 0-2797 GRM International Inc. 0-2797 9,382.36 GRM International Inc. 0-2797 GRM International Inc. 0-2797 1,281.36 GRM International Inc. 0-2797 GRM International Inc. 0-2797 2,082.09 GRM International Inc. 0-2797 GRM International Inc. 0-2797 3, 145.46 GRM International Inc. 0-2797 GRM International Inc. 0-2797 I ,522.39 GRM International Inc. 0-2797 GRM International Inc. 0-2797 572.00 70.00 70.00 70.00 203.00 3,232.39 926 .63 1,489.83 2,334 . 18 70.00 3,462.40 2,444 . 17 372.00 3,462.40 977.41 6,242 .27 1,517 .89 I ,522.00 901.~ (}?

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Ex hibit No. Amou nt Total GRM International Inc. 0-2797 GRM International Inc. 0-2797 3,762 .97 GRM International Inc. 0-2797 GRM International Inc. 0-2797 7,965.17 GRM International Inc. 0-2797 GRM International Inc. 0-2797 1,952 .24 GRM International In c. 0-2797 GRM International In c. 0-2797 5,085.32 GRM International In c. 0-2797 GRM International Inc. 0-2797 4,173 .71 GRM International In c. 0-2797 GRM International Inc. 0-2797 I ,954.85 GRM International Inc. 0-2797 GRM International Inc. 0-2797 541.24 GRM International In c. 0-2797 GRM Intern ational In c. 0-2797 l ,565. 00 GRM International Inc. 0-2797 GRM International In c. 0-2797 1,032 .00 GRM International In c. 0-2797 GRM International Inc. 0-2797 2,997.00 GRM International Inc. 0-2797 GRM International In c. 0-2797 535.50 GRM Internationa l Inc. 0-2797 GRM International In c. 0-2797 58 .00 0-2858 RS Unitech Mfg. & Trading Corp. 0-2860 244 .00 Security and Safety Corp. of the Phils. 0-3012 0-3043 832 .26 Datacare Systems Corp. 0-3126 De-Aero Trading 0-3128 2,760.96 Conte! Communications Inc. 0-3130 Conte! Communications Inc. 0-3130 2,235 .95 Conte! Communications Inc. 0-3130 Conte! Communications Inc. 0-3130 2,393.67 Conte! Comm uni cations Inc. 0-3130 Conte! Communications Inc. 0-3130 2,704 .04 Conte! Comm unications Inc. Conte! Communications Inc. 4,793.46 6,949.88 3,270.15 7,440.56 I 0,702 . 14 1, 191.16 681.82 679 .30 2,763.64 636.36 469.88 450.00 450.00 253.63 253 .63 450.00 171.81 1 , 145.4~

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total Conte! Communications Inc. 0-3130 Conte! Communications Inc. 0-3130 1,718.17 Conte! Communications Inc. 0-3130 Conte! Communications Inc. 0-3130 1,431.81 Cummex Asia, Inc. 0-3170 OMS Engineering & Services 0-3239 171.81 OMS Engineering & Services 0-3239 OMS Engineering & Services 0-3239 1,431.80 OMS Engineering & Services 0-3239 OMS Engineering & Services 0-3239 1,090.91 OMS Engineering & Services 0-3248 OMS Engineering & Services 0-3250 578 .00 OMS Engineering & Services 0-3250 OMS Engineering & Services 0-3250 544.55 OMS Engineering & Services 0-3255 OMS Engineering & Services 0-3255 21,600.00 OMS Engineering & Services 0-3255 OMS Engineering & Services 0-3255 9,350.00 OMS Engineering & Services 0-3255 OMS Engineering & Services 0-3255 23, I00.00 0-3277 OS Steel Factors & Construction 0-3281 40,536.00 0-3285 Oynalab Corp. 0-3338 3,145.45 Oynavision Electronics Phils., Inc. 0-3619 Gascon Technology Inc. 0-3621 1,000.00 0-3621 Genetron Eng'g Supply & Services Corp. 0-3624 881.80 0-3626 Genetron Eng'g Supply & Services Corp. 0-3626 11,818.18 0-3637 Genetron Eng'g Supply & Services Corp. 0-3637 581.40 0-3646 Genetron Eng'g Supply & Services Corp. 0-3646 927.90 0-3649 Genetron Eng'g Supply & Services Corp. 0-3852 1,409.10 Genetron Eng'g Supply & Services Corp. 5,100.00 Grajm Engineering 1,257.50 Grajm Engineering Grajm Engineering 1,460.97 Grajm Engineering Grajm Engineering 2,863.64 Globe Telecom, Inc. 2,672.73 I ,763.60 I ,248.30 3,323.30 2,177.50 727.30 22,727.30 1,507.10 27,997.10 200.00 I ,060.00 8,081.82 900 .00 177.~

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total Globe Telecom, Inc. 0 -3852 Globe Telecom, Inc. 0-3852 66.30 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 168.00 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 27.72 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 106.64 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 113 .01 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 128 .09 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 113.10 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 36.03 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 112.70 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 121.00 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 152. 10 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 133 .59 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 125.20 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 115 .86 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 205.29 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 193 .73 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 262.18 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 219.82 328.55 162.56 157.40 113.14 154.21 26.79 124.92 125 .20 126.41 145.08 163.52 121.00 100.00 114.85 159.07 148.88 198 .68 150.30 (#0 (}fi;

Ann ex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total G lobe Telecom, Inc. 0 -3852 Gl obe Te lecom, Inc. 0 -3852 147.49 G lobe Te lecom, Inc. 0 -3852 G lobe Te lecom, Inc. 0 -3852 147.3 6 G lobe Te lecom, Inc. 0 - 3 8 52 G lobe Te lecom, Inc. 0-3 852 152. 88 G lobe Telecom, Inc. 0 -3852 G lobe Telecom, In c. 0-3 852 15 1.60 G lobe Teleco m, In c. 0-3 852 G lobe Telecom, In c. 0-3 852 164.42 G lobe Teleco m, In c. 0-3852 G lobe Teleco m, In c. 0-3 852 142.35 G lobe Teleco m, In c. 0 -3852 G lobe Teleco m, In c. 0-3852 14 1.60 G lobe Teleco m, In c. 0-3852 G lobe Telecom, In c. 0-3 852 144. 08 G lobe Telecom, In c. 0 -3852 G lobe Teleco m, Inc. 0-3852 155. 87 G lobe Telecom, In c. 0-3852 G lobe Telecom, Inc. 0-3852 180 .09 G lobe Telecom, In c. 0 -3852 G lobe Teleco m, In c. 0-3 852 14 8.69 G lobe Telecom, In c. 0-3 852 G lobe Telecom, In c. 0 -3852 367.86 G lobe Telecom, Inc. 0-3 852 G lobe Teleco m, In c. 0 -3852 131.3 0 G lobe Telecom, In c. 0 -3852 G lobe Te lecom, Inc. 0 -3852 3 8.71 G lobe Telecom, Inc. 0 -3852 G lobe Te lecom, Inc. 0-3852 148. 13 G lobe Te lecom, Inc. 0 -3852 G lobe Telecom, Inc. 0-3 852 125. 07 G lobe Te lecom, Inc. 0 -3852 G lobe Te leco m, Inc. 0 -3852 8 1. 30 G lobe Telecom, Inc. 0 -3852 G lobe Te lecom, Inc. 0-3852 84.2 1 328.27 146. 16 2 00 .00 188.3 1 150 . 18 158.44 75.1 4 I 0 7.34 126. 16 45 7.06 84 .33 125.20 326.38 177.36 100. 00 92. 64 100.00 83.44 ~ ljpt

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 119.62 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 100.36 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 200.00 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 168 .64 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 121.63 Globe Telecom, Inc. 0-3852 Globe Telecom, Inc. 0-3852 220.16 Globe Telecom, Inc. 0-3877 Globe Telecom, Inc. 0-3877 100.00 Globe Telecom, Inc. 0-3877 Globe Telecom, Inc. 0-3877 126.00 Globe Telecom, Inc. 0-3877 Globe Telecom, Inc. 0-3877 107.91 Globe Telecom, Inc. 0-3877 Globe Telecom, Inc. 0-3877 121.18 Globe Telecom, Inc. 0-3877 Globe Telecom, Inc. 0-3877 145.80 Globe Telecom, Inc. 0-3877 Globe Telecom, Inc. 0-3877 39.00 Globe Telecom, Inc. 0-3877 Globe Telecom, Inc. 0-3877 106.5 0 Globe Telecom, Inc. 0-3877 Globe Telecom, Inc. 0-3877 339.42 Globe Telecom, Inc. 0-3877 Globe Telecom, Inc. 0-3877 22.62 Globe Telecom, Inc. 0-3877 Globe Telecom, Inc. 0-3877 111.52 Globe Telecom, Inc. 0-3877 0-4000 100.00 NP Libalib Landscape Contractor Inc. 0-4000 0-4000 174.27 NP Libalib Landscape Contractor Inc. 322.60 NP Libalib Landscape Contractor Inc. 148.96 189.89 267.47 136.60 100.00 147.49 396.12 210 .51 142.72 166.59 115 .23 107 .32 110.38 158.07 386.40 1,171.20 1,5 14.40 ~ (W

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total NP Libalib Landscape Contractor Inc. 0-4000 216.00 NP Libalib Landscape Contractor Inc. 0-4000 916 .00 N P Li balib Landscape Contractor Inc. 0-4000 916.00 N P Libalib Landscape Contractor Inc. 0-4000 916 .00 NP Libalib Landscape Contractor Inc. 0-4000 38.40 Malabanan Eboy Excavator (Pozo Negro) & Plumb ing Servic 0-4079 I ,308.80 Malabanan Eboy Excavator (Pozo Negro) & Plumbing Servic 0-4081 9,014.49 Malabanan Eboy Excavator (Pozo Negro) & Plumbing Servic 0-4081 I ,586 .50 MBPS Cabling 0-4103 48 ,012 .00 Metro Engineering and Supply Co. 0-4149 3, 192 .00 Metro Engineering and Supply Co. 0-4149 3 ,000 .00 Metro Engineering and Supply Co. 0-4 153 5,175 .00 Metro-Lite General Services 0-4159 2,954 .55 Metro-Lite General Services 0-4166 2,454.54 Metro-Lite Gen eral Services 0-4 171 2,000 .00 Metro-Lite General Services 0-4173 6,818 .00 Micro-Mechanics (Phils. ) Inc. 0-4196 7,712 .73 Micro-Mechanics (Phils.) Inc. 0-4197 5,509.09 Micro-Mechanics (Phi ls.) Inc. 0-4198 7,712.74 Microwill Precision Tool Services 0-4229 3,822 .00 Microwill Precision Tool Services 0-4231 3,821.80 Microwill Precision Tool Services 0-4233 26,568.00 Microwill Precision Tool Services 0-4233 8,424 .00 Microwill Precision Tool Services 0-4236 11 ,664 .00 Microwill Precision Tool Serv ices 0-4238 7,216 .80 NCR Corporation (Phi ls) Inc. 0 -4284 19 ,569 .75 NCR Corporation (Phils) Inc. 0-4286 41 ,641.20 NCR Corporation (Phils) Inc. 0-4290 13 ,212.72 New World Rennaissance Hotel 0-4312 2, 100.92 Nikkita Business Systems Inc. 0-4324 198.00 O live Maintenance Services Inc. 0-4358 I ,624.37 Olive Maintenance Services Inc. 0-4358 380.37 Olive Maintenance Services Inc. 0-4358 446 .53 Olive Maintenance Services Inc. 0-4358 479 .60 Olive Maintenance Services Inc. 0-4358 120,563.10 Olive Maintenance Services Inc. 0-4358 120,563 .10 @AI�

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total Olive Maintenance Services Inc. 0-4358 Eduqu est In c. 0-3447 1,572.74 Eker Merchandising 0-3449 Eo! Supplies & Services 0-3518 90,803.36 Eo! Supplies & Services 0-3518 Eo ! Supplies & Services 0-35 I8 112.50 Eo ! Supplies & Services 0-3519 Eo ! Supplies & Services 0-3519 1,763 .60 Eo! Supplies & Services 0-3519 4,545.50 b) Input VAT on purchase ofgoods 0- 111 supported by undated TIN-VAT Invoice 0-112 19,379. 10 Analogic Systems Corp. 0-3993 Analogic Systems Corp. I,363 .64 Phil. Forklift Center Inc. 0-154 0-1555 1,094.00 c) Input VAT on purchase ofservices 0-1589 supported by undated TIN-VAT OR 0-1648 704.55 3,468,112.46 Analyst Supply House Inc. 0-3335 RCF Contractor Services 0-3335 264. 00 686.73 Romega Construction Inc. 150.00 0-153 272 .73 Security and Safety Corp. of the Phil s. 0-156 0-347 436.36 17,571.96 Gascon Technology Inc. 0-348 4,363.60 Gascon Technology In c. 0-349 6,776 .82 0-350 d) Input VAT on purchase ofservices 0-607 45 0.00 supported by documents other than 0-710 2, 818.18 VATORs 2,727.00 The Analyst Supply House, In c. Angeliglass Product Specialties 436.36 Agatep Associates, Inc. 6,036.36 Agatep Associates, Inc. Agatep Associates, In c. 324.76 Agatep Associates, In c. 543 .08 Asialift Incorporated 1,750.00 Automated Techno-Fit Resources 420 .16 363 .64 500.00 page ~

AnnexA SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total Automated Techno-Fit Resources 0-711 Autosys Technologies, Inc. 0-712 5,700.00 Jeshua Purposes Trading 0-1082 Jeshua Purposes Trading 0-1083 60,495.00 Top-Master Metal Corp. 0-1298 Robros Inc. 0-1584 6,395.53 0-1613 RS Unitech Mfg. & Trading Corp. 0-1630 552 .73 RS Unitech Mfg. & Trading Corp. 0-1735 0-1736 1,735.54 Speed line 0-1737 Speed line 0-1757 42 ,727.00 Speed line 0-3305 Suarez & Sons Inc. 909.09 First Asia Semi-Tech Inc. 909 .09 512 .73 341.82 512.73 1,681.82 187.63 133,035.07 e) Input VAT on purchase ofgoods supported 0 - 161 78 ,963.64 by documents other than VAT Invoices 0-3727 271.82 Anne Francis Cars 0-3729 271.82 Globe Telecom, Inc. 0-3730 271.82 Globe Telecom, Inc. 0-3731 271.82 Globe Telecom, Inc. 0-3732 271.82 Globe Telecom, Inc. 0-3733 271 .82 Globe Telecom, Inc. 0-3734 271.82 Globe Telecom, Inc. 0-3735 271.82 Globe Telecom, Inc. 0-3736 271.82 Globe Telecom, Inc. 0-3737 271.82 Globe Telecom, Inc. 0-3738 271.82 Globe Telecom, Inc. 0-3739 271.82 Globe Telecom, Inc. 0-3740 271.82 Globe Telecom, Inc. 0-3853 271 .82 Globe Telecom, Inc. 0-3854 271.82 Globe Telecom, Inc. 0-3878 50 .00 Globe Telecom, Inc. 0-3879 50 .00 Globe Telecom, Inc. 0-3880 50 .00 Globe Telecom, Inc. 0-3881 50 .00 Globe Telecom, Inc. Globe Telecom, Inc. ~ (}f!?

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total Globe Telecom, Inc. 0-3882 Globe Telecom, Inc. 0-3883 271.82 Globe Telecom, Inc. 0-3884 Globe Telecom, Inc. 0-3885 271.82 Globe Telecom, Inc. 0-3886 Globe Telecom, Inc. 0-3887 271. 82 Globe Telecom, Inc. 0-3888 Globe Telecom, Inc. 0-3889 271.82 Globe Telecom, Inc. 0-3890 Globe Telecom, Inc. 0-3891 271.82 Globe Telecom, Inc. 0-3892 Globe Telecom, Inc. 0-3893 271.82 Globe Telecom, Inc. 0-3894 Globe Telecom, Inc. 0-3895 271.82 Globe Telecom, Inc. 0-3982 Globe Telecom, Inc. 0-3983 271.82 Globe Telecom, Inc. 0-3984 Globe Telecom, Inc. 0-3985 271 .82 Globe Telecom, Inc. 0-3986 Globe Telecom, Inc. 0-3988 271.82 Globe Telecom, Inc. 0-3989 271.82 271.82 271.82 271.82 271.82 271.82 271.82 271.82 271.82 271.82 1,018.18 89,695.52 f) Input VAT on purchase ofservices 0-864 138,000.00 138,000.00 supported by "TAN-VAT" OR Carlos Angeles g) Input VAT on purchase ofgoods supported by VAT Invoice issued not in the Company's name Stordal Industrial Products 0-1752 534.55 534.55 h) Input VAT on purchase ofservices supported by OR not classified as VAT registered Safety Organi zation of the Phils. Inc. 0-1634 627.27 627.27 i) VAT Invoice supporting purchase ofgoods was not formally offered as evidence

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total Agro Printing & Publishing Inc. 45080 -----------3-7-5.-0-0- 375.00 j) Input VAT on purchases ofgoods and services without supporting documents 45418 688.80 Abs Bearing & Trading Corp. 46240 1, 119.30 Abs Bearing & Trading Corp. 38967 7,081.82 39926 ABI-CE Safety Goods 41183 453.64 ABI-CE Safety Goods 40567 354.09 ABI-CE Safety Goods 38714 927 .27 CL Manabat & Co. 42114 I ,227.27 44415 63 ,813.04 Consolidated Industri al Gases Inc. 38656 4 4 , 702 .75 Consolidated Industri al Gases Inc. 38657 23 ,241.02 Consolidated Industri al Gases Inc. 40913 11 ,620 .51 Gems Minerals Chemi cal (GM C) Inc. 40914 2,291.87 Gems Minerals C hemical (GM C) Inc. 40915 2,956.34 40918 I ,949.38 GRM International Inc. 10919 2,960.97 GRM International Inc. 40926 2,262.83 GRM International Inc. 40929 2,247.36 GRM International Inc. 40930 1,965.25 GRM International Inc. 41103 3,908.34 GRM International Inc. 41104 2,645.57 GRM International Inc. 41105 3,095.31 GRM International Inc. 41106 1, 168.65 GRM International Inc. 41107 2,574.25 GRM International Inc. 41108 5, 130.61 GRM International Inc. 41109 12,795.63 G RM International Inc. 41110 1,885.60 GRM International Inc. 41111 I ,5 4 9 .33 GRM International Inc. 41112 4 ,011.51 GRM International Inc. 41120 5,828 .53 GRM International Inc. 41121 GRM International Inc. 41122 81.00 GRM International Inc. 2,952.50 GRM International Inc. GRM International Inc. 81.00 GRM International Inc. (J4-R

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total GRM International Inc. 41124 GRM International Inc. 41123 360.00 GRM International Inc. 41771 GRM International Inc. 41772 2,069.50 GRM International Inc. 41774 GRM International Inc. 41776 2,004.69 GRM International Inc. 41778 GRM International Inc. 41783 2,745.67 GRM International Inc. 41786 GRM International Inc. 41791 7,019 .00 GRM International Inc. 41792 GRM International Inc. 41793 9,997.55 GRM International Inc. 41838 GRM International Inc. 41847 570.60 GRM International Inc. 41861 GRM International Inc. 41865 4,779.14 GRM International Inc. 41866 GRM International Inc. 41868 2,413.71 GRM International Inc. 41869 GRM International Inc. 41870 3,061 .76 GRM International Inc. 41871 GRM International Inc. 41874 2,391.47 GRM International Inc. 41875 GRM International Inc. 41880 3,090.57 GRM International Inc. 41860 GRM International Inc. 44455 1,55 8.28 GRM International Inc. 44458 GRM International Inc. 44459 1,058.93 GRM International Inc. 44460 GRM International Inc. 44461 768.30 GRM International Inc. 44462 GRM International Inc. 44463 145 .00 GRM International Inc. 44464 GRM International Inc. 44465 550.04 GRM International Inc. 44466 GRM International Inc. 44467 2,135 .51 492.63 577.65 1,128 .97 884.00 786 .00 19,730.26 3,386.24 3,238.20 4,218 .54 2,806.32 1,735.30 2,819 .88 3,747.55 3, 151.26 2,623.02 2,015.69 2,650.78 2,988.06 (JIJ/ Qi})

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total GRM International Inc. 44468 GRM International Inc. 44469 2,065.22 GRM International Inc. 44470 GRM International Inc. 44471 3,274 . 11 GRM International Inc. 44472 GRM International Inc. 44642 2,633.89 GRM International Inc. 44643 GRM International Inc. 44644 2,153.00 GRM International Inc. 44645 GRM International Inc. 44646 2, 109 .83 GRM International Inc. 44647 GRM International Inc. 44649 101.50 GRM International Inc. 44651 GRM International Inc. 44653 299.00 GRM International Inc. 44666 GRM International Inc. 44674 925.24 GRM International Inc. 44676 GRM International Inc. 44680 3,390.83 GRM International Inc. 44684 GRM International Inc. 44686 1,024.85 GRM International Inc. 44688 GRM International Inc. 44691 3,008.33 GRM International Inc. 44692 GRM International Inc. 44693 2,203.16 GRM International Inc. 44694 GRM International Inc. 44695 9,514.19 GRM International Inc. 44696 GRM International Inc. 44697 2,865 .10 GRM International Inc. 44698 GRM International Inc. 44699 4,226 .07 GRM International Inc. 44700 GRM International Inc. 44701 767 .00 GRM International Inc. 44702 GRM International Inc. 44703 425 .13 GRM International Inc. 44704 GRM International Inc. 44705 3,649.13 1,959.30 3,615 .85 4,885 .05 2,617 .88 6,053.02 4,964.41 2,730.22 1,605.05 8,483.10 5,728 .69 354.83 6,292 .65 I,923 .24 2,743 .80 1, 144.51 5,247.26 5,079 .09 3,398.38 fP(

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total GRM International Inc. 44706 GRM International Inc. 44707 1,214.51 GRM International Inc. 44714 GRM International Inc. 44715 I ,406.34 GRM International Inc. 44716 GRM International Inc. 44717 600.00 GRM International Inc. 44718 GRM International Inc. 44719 311.00 GRM International Inc. 44720 GRM International Inc. 44721 I ,887.50 GRM International In c. 44723 GRM International Inc. 44724 5,282.03 GRM International Inc. 44725 GRM International Inc. 44726 2,568.38 GRM International Inc. 44727 GRM International Inc. 44728 767.48 GRM International Inc. 44729 GRM International Inc. 44732 741.47 GRM International Inc. 44733 GRM International Inc. 44734 3,207.88 GRM International Inc. 44735 GRM International Inc. 44736 5,103.88 GRM International Inc. 44737 GRM International Inc. 44738 I ,090.42 GRM International Inc. 44739 GRM Internationa l Inc. 44740 624.10 GRM International Inc. 44741 GRM International Inc. 44742 5,354.11 GRM International In c. 44743 GRM International In c. 44744 4,836.31 GRM International Inc. 44745 GRM Internationai Inc. 44746 1,745 .00 GRM International Inc. 44747 GRM International Inc. 44748 8,662.70 GRM International In c. 44749 GRM International In c. 44755 145 .00 267.59 790.25 I ,533.38 2,101.28 1,165.26 592.44 7,215.75 505.05 1, 104.32 3,134.08 835.73 1,541.68 3,889.57 I ,282.94 1,792.07 1,2 16.66 I ,347.29 3,319.18 ~

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total GRM International Inc. 44759 GRM International Inc. 44763 2,407.00 GRM International Inc. 44766 GRM International Inc. 44770 6,373 .01 GRM International In c. 44775 GRM International Inc. 44872 2,590.47 GRM International In c. 44873 GRM International Inc. 44875 2,703.55 GRM International Inc. 44877 GRM International Inc. 44878 2,724.00 GRM International Inc. 44659 GRM International Inc. 45011 70.00 GRM International Inc. 45012 GRM International Inc. 45013 70.00 GRM International Inc. 45014 GRM International Inc. 45016 70.00 GRM International Inc. 45018 40938 70 .00 Guard-All Electronic Security Systems 40954 Guard-All Electron ic Security Systems 41280 I, 168.01 Guard-All Electronic Security Systems 43282 Guard-All Electronic Security Systems 43292 2,674.65 Guard-All Electronic Security Systems 45030 Guard-All Electronic Security Systems 46209 9,527.59 Guard-All Electronic Security Systems 46210 Guard-All Electronic Security Systems 39344 9,022.71 39345 GC Emery Sales Inc. 39414 9,075 .26 GC Emery Sales Inc. 45172 GC Emery Sales Inc. 46425 10,770 . 11 39960 Genetron Eng'g Supply & Sevices Co., Inc. 42014 47 ,996 .74 42699 Genetron Eng'g Supply & Sevices Co., Inc. 42701 38,851.93 39110 GRM International Inc. 38883 22 ,314.05 Junna Industrial Corp. Jo Systems Enterprises Inc. 6,817.66 Jo Systems Enterprises Inc. 220.00 Metro Engineering and Supply Co. 57 ,527 .98 Michen Industrial Supply 6,803.49 I ,222.60 2,500.00 2,500.00 1,4 18.20 709 .10 33.27 2,272.70 7,951. 3 0 1,914 .91 901.47 5, 190 .90 32 ,300.00 3,070.23 w3,000.00 (�lj

Annex A SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Additional Input VAT Disallowances per Court's Verification First Quarter of 2000 Disallowed Input VAT Vendor Name Exhibit No. Amount Total NCR Corporation Phils. 17282 Royal Asia Marketing Corp. 38622 13,514.69 Punlad Research House Inc. 41742 Punongbayan 41899 10,386.53 Punongbayan 42771 PVC International Sales Corp. 38812 1,818.18 39565 Rentokil Environmental Sal es Corp. 40872 5,000.00 31961 Romega Construction Inc. 37092 1,785 .00 Warme Water 39114 Warme Water 40800 234.74 Warme Water 46299 Warme Water 38794 3,535.86 Warme Water 38795 Tiq Construction 38797 17 ,056.88 Tiq Construction 38798 Tiq Construction 38801 701.82 Tiq Construction 38808 Tiq Construction 38809 526.36 Tiq Construction 38811 Tiq Construction 39416 263 .64 Tiq Construction 39417 Tiq Construction 39418 526.36 Tiq Construction 39419 Tiq Construction 39420 872 .73 Tiq Construction 43054 Tiq Construction 43609 1,363.64 Versatrade Marketing Versatrade Marketing 681.82 1,227.27 2 ,590 .91 2,727 .27 I ,363.64 I ,363 .64 2,727.27 818 . 18 2,318.18 2,045.45 545.45 681.82 3,202.45 1,067.48 903,696.10 k) Input VA T on Importations- corresponding 1,995,062.00 Exhibits P-1 to P-1 78 were denied by th e Court 30,354.00 Zevatech United Receptacle Inc. 329 ,750 .00 Excel Precision SDN.BHD 2,501 .00 Franklin Covey Product Sales In c. Intel Technology SON BHD 239 ,012.00

Annex B SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Exception A -Purchases with Missing Invoices and Official Receipts Ref. Supplier's Name Per CPA's Per Court's Discrepancy Report Verification 39233 Bernardsim 159,789.48 150.03 4,254.50 159,789.48 271.82 45862 DMS Engineering & Services 20,526.3 1 4,254.50 5,954.40 11 ,200.00 20,526.3 1 2,863.64 43689 Elizamatot 37,204.36 11 ,200.00 14,698.80 1, 17 1.75 37,204.36 374.00 46103 Environmental Systems Specialist 2,000 .00 1, 171.75 1,593 .00 3 18,600.00 2 ,000 .00 9,828.00 46108 Environmental Systems Specialist 202, 105.26 6,322.00 3,672 .70 3 18,600.00 39365 Hewlett Packard Philippines Corp. I3 1,305.32 202, 105.26 1.00 35 ,337.70 250.00 45362 In pam 8,679.55 3,672.70 1. 55 13 1,3 05 .32 2.00 45440 Merchantde 88.88 35,337.70 25 .00 2,000.00 42 ,333.69 4603 1 Metholding 27,000.00 8,679.55 64,462.8 1 1. 55 4564 1 Metro-lite General Services 1,390.9 1 8,600.08 88.88 39288 Metrosouth 5,563.3 1 2,000.00 859.64 27 ,000.00 43285 Nalco Chemical Co. (Phils.), Inc. 909.09 64,462.8 1 15 0.03 1,390.9 1 45439 Oscarpizar 27 1.82 8,600.08 5,954.40 5,563.3 1 39259 PLOT 2,863.64 14,698.80 859 .64 39267 PLOT 175.45 909.09 374.00 38919 R Alag Co. , Inc. 1,593 .00 175.45 9,828.00 39334 RCF Contractor Services 6,322 .00 I ,046,898 .65 1.00 40 199 Romega Construction, Inc. 250.00 2.00 43464 Safety Organi zation of the Phils. , Inc. 25 .00 I ,089,232.34 39537 Shangri lah 39538 Shangrilah 45925 Stordal Industrial Products 40056 Elasco International Corp. 40 126 Agatep Associates Inc. 43221 Globe Telecom 39088 Premier Insurance & Surety Corp. 45531 Speed line 45487 Technico 45854 Warme Water 428718 Bureau of Customs (Intel Technology SDN BHD) 673037 Bureau of Customs (Intel Technology Asia Pte Ltd) 738912 Bureau of Customs (BD & A Catalog Services) 1.60E+09 Bureau of Customs (Intel Corp) 18257 13 Bureau of Customs (Franklin Covey Product Sales Inc.) 9.00E+09 Bureau of Customs (BD & A Cata log Services) 4557 183 Bureau of Customs (Intel Corp) 1825662 Bureau of Customs (Franklin Covey Product Sales Inc.) Total ~

SILICON PHILIPPINES, INC. Annex C (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Exception B- Incorrect Computation ofInput VAT Ref. Supp lier' s Name Per CPA's Per Court's Di sc repancy Report Verification 0 .03 27797 Aqua Technologies Inc. 0.03 0 .01 0 .01 0 .01 0 .01 38748 Aqua Technologies Inc. 0 .01 69.34 0.01 0.01 38142 CL Alapag Trading 69.34 0 .01 0 .01 0.01 42475 CL Alapag Trading 0 .01 0.01 0.01 0.01 0.20 43540 CL Alapag Trading 0.20 0 .2 0 0.01 0.20 0.50 0.01 44776 CL Alapag Trading 0.50 393,044 .72 0.01 0 .01 59 ,400.65 40285 Oantes Radiator Enterprises Corp. 0.01 0 .01 315,039 .24 0.01 0 .01 38943 OMS Engi neering & Services 0.0 1 0 .56 0 .08 0 .01 38953 OMS Engi neering & Services 0.56 0.06 0.01 40304 OMS Engineering & Services 0.01 0. 16 0.06 0.01 42278 OMS Engi neering & Services 393,044.72 0.05 59,400 .65 0.01 43264 OMS Engineering & Services 315,039 .24 0 .2 4 0 . 16 0 .01 45944 OMS Engineering & Services 0.01 0.05 0.0 1 43337 Easy Call Communications Phils., Inc. 0.01 0.01 0.24 0.01 43165 Eco-Triangle Technologies Inc. 0.01 7 .2 7 0.08 0.45 44359 Eco-Triangle Techno logies Inc. 0.01 1.10 0.01 0.01 42707 Emcar Industrial Sales Corp. 0 .01 0.08 7 .2 7 0.03 42650 EOL Supplies & Services 0.45 0. 18 1.10 0.01 39583 Ergonomic Systems Phiis. , Inc. 0.01 0.03 0.08 0.01 45753 Gemataj Enterprises 0.03 0.18 41553 Globe Telecom Inc. 0.01 0 .03 41554 Globe Telecom Inc. 0.01 43648 Globe Telecom Inc. 4332 I Harvester Machine Works, Inc. 42630 Inpam 40820 Intaq Construction Services, Inc. 41252 Integrated Computer Systems, Inc. 38753 Jacinto Industrial Products, Inc. 41525 JB Toy Balloons & Party Needs 42289 Jeshua Purposes Trading 465 14 LCU Designs Inc. 45516 Liang Chi Marketing Corp. 45529 Liang Chi Marketing Corp. 42621 Mabelle Printing & Trading 42623 Mabelle Printing & Trading 43043 Mabelle Printing & Trading 43607 Mabelle Printing & Trading 43608 Mabelle Printing & Trading 4399 1 Mabelle Printing & Trading 39943 Macro Labels Center 34389 Maxima Equipment Co., Inc. 45598 Maxima Equipment Co., Inc. 41512 Mechatronics In struments & Contro ls Inc. ~ page 1 of3 G!Y

SILICON PHILIPPINES, INC. Annex C (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Exception B- Incorrect Computation ofInput VAT Ref. Supplier's Name Per CPA's Per Court's Discrepanc~ Report Verification 40862 Menejda Trading Corp. 0.04 20.38 0.03 0.04 40864 Menejda Trading Corp. 0.02 0.03 (0 .04) 0.02 0.02 10 ,407 .00 42716 Menejda Trading Corp. 0.04 0.02 22,950. 18 0.01 0.04 43770 Menejda Trading Corp. 0.01 0.01 (99.97) 0.02 0.01 44902 Menejda Trading Corp. 20 .38 0.02 0.01 39707 Metasystems Development Inc. 0.03 0.01 0.05 0.03 40973 Micro-Mechanics (Phils) Inc. 0.01 0.05 0.06 0.01 40876 Multi Electro Cirkel Phil., Corp. 0.05 0.06 40 .91 0.05 38901 Nalco Chemical Co 0.02 40 .91 0.04 0.02 39260 Office Club Corp. 0.01 0.04 0.08 0.01 39526 Office Club Corp. 0.01 0.08 0.02 0.01 40090 Office Club Corp. 0.01 0.02 0.03 0.01 40616 Office Club Corp. 0.06 0.03 0.02 0.06 40617 Office Club Corp. 0.01 0.02 0.01 0.01 41356 Office C lub Corp. (0 .02) 0.01 10,407.00 0.02 41465 Office Club Corp. 0.34 22,950.18 0.34 42070 Office C lub Corp. 0.22 0.01 0.22 42305 Office C lub Corp. 0.05 0.01 0.07 0.05 42306 Office Club Corp. 0.03 0.07 0.03 0.03 43199 Office Club Corp. 0.03 0.03 0.01 0.03 43203 Office Club Corp. (99 .97) 0.01 0.23 43777 Office C lub Corp. 0.03 0.23 0.03 44152 Office Club Corp. 44315 Office Club Corp. 45590 Office Club Corp. 45593 Office Club Corp. 45930 Office Club Corp. 46150 Office Club Corp. 42626 Perkin Elmer Instruments 44603 Philippine Packings & Seals Corp. 44002 R & I Electronics Inc. 45728 Rejan Technology Inc. 44154 Scantek 439 I0 Thermodynamics Commercial , Inc. 42349 Van-Com Dynamic Enterprises 43192 Van-Com Dynamic Enterprises 44323 Yamatake Phils., Inc. 41725 Zorin Systems International Inc. 43923 Zorin Systems Internationa l Inc. 44582 Globe Telecom Inc. 33696 Mercury Drug Corp. 39229 Mercury Drug Corp. 40327 Mercury Drug Corp.

Annex D S ILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Exception C- Claimant (IPMI) is not the Actual Buyer Ref. S u~:mlier' s Name Per CPA Per Court's Di s crepanc~ Report Verification 46580 Add-Force Personnel Serv. Inc. 762.38 762 .38 267.74 39355 Globe Telecom Inc. 136.84 267 .74 176.67 136.84 38712 Globe Telecom Inc. 100.00 176.67 163 .58 100 .00 39411 Globe Telecom Inc. 163.58 57 .66 57.66 39412 Globe Telecom Inc. 145.44 145.44 145 .20 145 .20 39546 Globe Telecom Inc. 153 .78 153 .78 359.50 359 .50 39736 Globe Telecom Inc. 146 .85 146 .85 162 .80 162 .80 40347 Globe Telecom Inc. 100 .00 100 .00 43 .16 43.16 40349 Globe Telecom Inc. 232 .09 232 .09 233 .26 233 .26 4035 1 Globe Telecom Inc. 154 .65 154 .65 167 .58 167 .58 40422 Globe Telecom Inc. 31.04 31 .04 161.46 161.46 43 11 2 Globe Telecom Inc. 48.42 48.42 127.24 127.24 43113 Globe Telecom Inc. 139 .90 139 .90 125.20 125 .20 43115 Globe Telecom Inc. 238. 17 238 .17 248. 13 248. 13 43312 Globe Telecom Inc. 182 .54 182.54 181.66 181.66 43326 Globe Telecom Inc. 18 6 .06 186 .06 2 16. 13 216. 13 40731 Globe Telecom Inc. I 06.44 I 06.44 128.65 128.65 43725 Globe Telecom Inc. 163.25 163.25 55.57 55 .57 43727 Globe Telecom Inc. 34.51 34.5 1 12.41 43728 Globe Telecom Inc. 2 19.44 12.41 18 5.69 219.44 43730 Globe Telecom Inc. 367 .86 185.69 174 .27 367.86 43731 Globe Telecom Inc. 17 4 .27 43732 Globe Telecom Inc. v 43733 Globe Telecom Inc. 44136 Globe Telecom Inc. 44137 Globe Telecom Inc. 41392 Globe Telecom Inc. 41395 Globe Telecom Inc. 41397 Globe Telecom Inc. 41398 Globe Telecom Inc. 44395 Globe Telecom Inc. 44577 Globe Telecom Inc. 44579 Globe Te lecom In c. 42342 Globe Telecom Inc. 42515 Globe Telecom In c. 4273 I Globe Telecom Inc. 42762 Globe Telecom Inc. 42764 Globe Telecom Inc. 42834 Globe Telecom Inc. 45639 Globe Telecom Inc. 46174 Globe Telecom Inc. Qg

Annex D SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Exception C- Claimant (/PM/) is not the Actual Buyer Ref. Su~~lier' s Name Per CPA Per Court's Di s cre~ancy Verification 46 175 Globe Telecom Inc. Re~ort 322.60 15,490.92 148.96 46 176 Globe Telecom Inc. 322.60 4, 057 .36 267 .4 7 148 .96 1,44 0 .0 0 147.9 0 46530 Globe Telecom Inc. 26 7 .4 7 1,800 .00 100.00 147.90 30,445 .76 72.4 1 44962 Globe Telecom Inc. 100.00 53,996.42 185 .83 72.4 1 44963 Globe Telecom Inc. 185.83 1,4 13.64 15,490 .92 44964 Globe Telecom Inc. 4,057.36 8,939.65 1,4 13.64 45283 Globe Telecom Inc. 1,440.00 tu I,800 .00 4 1509 Magneto Enterprises 30,445 .76 62,936.07 4 15 11 Magneto Enterprises 43824 Makati Language and Study Centre Inc. 45677 Teknoware Engineering Co 45678 Teknoware Engineering Co 4 1728 Uni ted Laboratori es Inc. Total

Annex E SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.) vs. COMMISSIONER OF INTERNAL REVENUE CTA CASE NO. 6419 Exception D - Purchases with Missing Official Receipts Ref. Supplier's Name Per CPA's Per Court's Discrepancy Report Verification 210 .00 43566 La Rota Tools & Die Services 100.00 591.00 100.00 9,720 .00 44356 La Rota Tools & Die Services 210 .00 591 .00 1,741.00 600.00 11,671.00 44357 La Rota Tools & Die Services 1,925 .00 600 .00 8,736.00 1,925.00 v 46577 La Rota Tools & Die Services 3,544.36 8,736 .00 8,736.00 3,544 .36 41390 Oracle Systems (Phils) Inc. 2 ,250.00 8,736 .00 4 ,500 .00 2,250 .00 39563 Rentokil Environmental Services 17 ,952 .50 4,500 .00 4,702 .3 I 17,952.50 39564 Rentokil Environmental Services 2 ,239.52 4 ,702.31 I ,550.00 2 ,239 .52 46462 Rentokil Environmental Services 1, 180.00 I,550 .00 9,720 .00 1, 180.00 42598 Sybase Philippines Inc. I ,741.00 70,277.69 58,606.69 42599 Sybase Philippines Inc. 39091 Sykes Asia Inc. 41970 Sykes Asia Inc. 43885 Sykes Asia Inc. 38876 Waterfront Container Leasing Co. , Inc. 38878 Waterfront Container Leasing Co., Inc. 738912 Bureau ofCustoms (Bensussen Deutsch & Assoc.) 4829615 Bureau of Customs (Lab Safety Supply) Total

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