DEUTSCHE KNOWLEDGE SERVICES PTE. LTD. v. COMMISSIONER OF INTERNAL REVENUE

Republic of the Philippines COURT OF TAX APPEALS Quezon City SECOND DIVISION ******** DEUTSCHE KNOWLEDGE SERVICES, CTA CASE No. 8443 PTE. LTD., Petitioner, Members: -versus- CASTANEDA, JR., Chairperson, CASANOVA, and COTANGCO-MANALASTAS, JJ. COMMISSIONER OF INTERNAL REVENUE, Promulgated: Respondent. JUL 0 7 2014 / x--------------------------------------------------------------------------------------~-----------------x I' '/:''f.,. . DECISI0 N CASTANEDA, JR., J.: This is a Petition for Review filed by Deutsche Knowledge Services, Pte. Ltd. to seek the refund or the issuance of tax credit certificate in the amount of P33,868,101.19, representing alleged excess and unutilized input value-added tax (VAT) attributable to its zero-rated sales for the first quarter of calendar year 2010. THE FACTS Petitioner Deutsche Knowledge Services Pte. Ltd. is the Philippine branch of a multinational company organized and existing under and by virtue of the laws of Singapore, with registered office address at One Raffles Quay, 17-10 South Tower, Singapore 048583.1 It was registered with the Bureau of Internal Revenue (BIR) on June 16, 2005 as a VAT-registered taxpayer with Taxpayer Identification No. (TIN) 238-763-115-000.2 Petitioner is licensed to do business as a regional operating headquarters (ROHQ) in the Philippines to engage in general administration and planning; business planning and coordination; sourcing/procurement of raw materials and components; training and personnel management; logistic services; product A- 1 Par. 1, Admitted Facts, Joint Stipulation of Facts and Issues, docket, p. 73. 2 Exhibit "B"

DECISION CTA Case No. 8443 Page2of23 development; technical support and maintenance; data processing and communication; and business development.3 Respondent is the duly appointed Commissioner of the SIR empowered to perform the duties of her office, including, among others, the duty to act upon and approve claims for refund or tax credit as provided by law. She holds office at the 51h Floor, SIR National Office Building, Agham Road, Diliman, Quezon City. Petitioner entered into several IntraGroup Service Agreements (Service Agreements) with foreign clients with business addresses located abroad .4 On October 21, 2011, petitioner filed its Application for Tax Credits/Refund (SIR Form No. 1914) and letter claim for refund, together with the relevant supporting documents with the SIR Large Taxpayers Regular Audit Division 3.5 The refund claim purportedly represented the unutilized input VAT attributable to its zero-rated sales of services to its foreign clients during the first quarter of calendar year 2010. Since respondent failed to resolve petitioner's administrative claim for refund, petitioner filed the instant claim before this Court on March 19, 2012. In her Answer6 filed on May 11, 2012, respondent interposed the following Special and Affirmative Defenses: "4. Petitioner is not entitled to refund or tax credit in the amount of P33,868, 101.19 representing alleged unutilized input tax because it failed to submit necessary and relevant documents pertaining to the above-mentioned amount with respondent in the administrative claim for refund or tax credit of excess input tax. 5. In an administrative claim for refund or tax credit of input taxes attributable to zero-rated sales, a VAT registered person must submit complete documents to support its application for refund pursuant to Section 112 (D) of the National Internal Revenue Code (NIRC) of 1997. Otherwise, there will be no sufficient compliance with the filing of an administrative claim for refund, which is a condition sine qua non prior to the filing of judicial claim. r 6. To support its claim, it is imperative for petitioner to prove and present the following, viz: 3 Exhibit "A" 4 Exhibits "K-1" to " K-22" 5 Exhibits "G" and "H" 6 Docket, pp. 40-46.

DECISION CTA Case No. 8443 Page3of23 a. The registration requirements of a value-added taxpayer in compliance with Section 6(a) and (b) of Revenue Regulations No. 6-97 in relation to Section 4.107-a (a) of Revenue Regulations No. 7-95, and Section 236 of the NIRC of 1997; b. The invoicing and accounting requirements for VAT- registered persons, as well as the filing and payment of VAT in compliance with the provisions of Sections 113 and 114 of the NIRC of 1997; c. Proof of compliance with the prescribed checklist of requirements to be submitted involving claim for VAT refund pursuant to Revenue Memorandum Order No. 53-98. It is worthy of emphasis that Section 112 (D) of the NIRC of 1997 requires the submission of complete documents in support of the application filed with the Bureau of Internal Revenue before the 120-day audit period shall apply, and before the taxpayer could avail of judicial remedies as provided for in the law. Hence, petitioner's failure to submit proof of compliance with the above-stated requirements warrants immediate dismissal of the petition for review. d. That the input taxes of P33,868,101.19 allegedly paid by petition on its domestic purchases of non-capital goods and services, services rendered by non-residents and importation of non-capital goods for the 4th quarter of taxable year 2009 were attributable to its zero-rated sales and such have not been applied against any output tax and were carried over in the succeeding taxable quarter or quarters; e. That petitioner's administrative claim for tax credit or refund of the unutilized input tax (VAT) was filed within two (2) year after the close of the taxable quarter when the sales were made in accordance with Sections 112 (A) and (D) of the NIRC of 1997; f. That petitioner's domestic purchases of goods and services were made in the course of its trade or business, properly supported by VAT invoices and/or official receipts and other documents, such as subsidiary purchase journal, showing that it actually paid VAT in accordance with Sections 110 (A) (2) and 113 of the NIRC of 1997, and in pursuance to Section 4.104-5 (a) and (b) of Revenue Regulations No. 7-95 (RE: Substantiation of Claims for Input Tax Credit); g. The requirements as enumerated under Section 4.104-2 of Revenue Regulations 7-95 (Re: Persons who can avail of the Input Tax Credits). ~

DECISION CTA Case No. 8443 Page4of23 7. Petitioner's alleged claim for refund is subject to administrative routinary investigation/examination by the Bureau of Internal Revenue (SIR). 8. Petitioner likewise did not submit any proof that it rendered services to persons engaged in business conducted outside the Philippines, the payments of which were made in Euro and other acceptable foreign currency in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas . 9. Section 108 (B) (2) of the NIRC of 1997 states that: 'SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties. - X X X (B) Transactions Subject to Zero Percent (0%) Rate. - The following services performed in the Philippines by VAT-registered persons shall be subject to zero percent (0%) rate. X X X 2) Services other than those mentioned in the preceding paragraph , the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (SSP);' As shown by the above provision , the taxpayer must comply with the following requirements: 1) the recipient is doing business outside the Philippines , 2) the payment of the service fees was in acceptable foreign currency, and 3) accounting of such remittance was in accordance with SSP rules. 10. In the case of Commissioner of Internal Revenue vs. Burmeister & Wain Scandinavian Contractor Mindanao, Inc., GR No. 153205, January 22, 2007, the Supreme Court stated: The Tax code not only requires that the services be other than 'processing , manufacturing or repacking of goods' and that payment for such services be in ~

DECISION CTA Case No. 8443 Page5of23 acceptable foreign currency accounted for in accordance with BSP rules. Another essential condition for qualification to zero-rating under Section 102 (b) (2) is the recipient of such services is doing business outside the Philippines. While this requirement is not expressly stated in the second paragraph of Section 102 (b) this is clearly provided in the first paragraph of Section 102 (b) where the listed services must be 'for other persons doing business outside the Philippines.' The phrase 'for other persons doing business outside the Philippines 'not only refers to the services enumerated in the first paragraph of Section 102 (b), but also pertains to the general term 'services: appearing in the second paragraph of Section 102 (b). In short, services other than processing, manufacturing, or repacking of goods must likewise be performed for persons doing business outside the Philippines. This can only be the logical interpretation of Section (b) (2). If the provider and recipient of the 'other services' are both doing business in the Philippines, the payment of foreign currency is irrelevant. Otherwise, those subject to the regular VAT under Section 102 (a) can avoid paying the VAT by simply stipulating payment in foreign currency inwardly remitted by the recipient of services. To interpret Section 102 (b) (2) to apply a payer-recipient of services doing business in the Philippines is to make the payment of regular VAT under Section 102 (a) dependent on the generosity of the taxpayer. The provider of services can choose to pay the regular VAT or avoid it by stipulating payment in foreign currency inwardly remitted by the payer-recipient. Such interpretation removes Section 102 (a) as a tax measure in the Tax Code, an interpretation this Court cannot sanction . A tax is a mandatory exaction , not a voluntary contribution. Hence, petitioner should have at the very least shown evidence on where their recipient is doing business. Outside such proof, there is negligence on petitioner for not showing sufficient evidence to support its claim. 11 . Petitioner filed their judicial claim for refund prematurely as less than 120 days have passed from the alleged filing of the administrative claim to the filing of the judicial claim. Under Section ('-

DECISION CTA Case No. 8443 Page6of23 112(D) of the NIRC of 1997, petitioner has 120 days within which to process claims for refund of unutilized input tax, to wit: 'SEC. 112. Refunds or Tax Credits of Input Tax. XXX (D) Period Within Which Refund or Tax Credit of Input Taxes Shall be Made. - In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsections (A) and (B) hereof. In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one hundred twenty day-period, appeal the decision or the unacted claim with the Court of Tax Appeals .' 12. Furthermore, in an action for refund the burden of proof is on the taxpayer to establish its right to refund and failure to sustain the burden is fatal to the claim for refund/credit. This is so because exemptions from taxation are highly disfavored in law and he who claims exemption must be able to justify his claim by the clearest grant of organic or statutory law. An exemption from the common burden cannot be permitted to exist upon vague implications (Asiatic Petroleum Co. vs Llanes, 49 Phil. 466 cited in Collector of Internal Revenue v Manila Jockey Club, Inc., 98 Phil. 670)." During trial, petitioner presented and formally offered pieces of documentary and testimonial evidence. In a Resolution7 dated May 10, 2013, petitioner's Exhibits "A" to "D-2", "D-4" to "D-7" , "G" to "1-13", "1-15" to "J-6", "K-1" to "K-9", "K-11" to "K- 22", "M1" to "M2401 ", and "S" to "AA-1" were admitted; while Exhibits "D-3", "E-1" to "E-12", "F", "K-10", "L", "R-1" and "R-2" were denied admission. Petitioner then filed a y Motion for Reconsiderations on June 5, 2013; while respondent filed her Comment9 thereto on June 21, 2013. In a Resolution1 o issued on July 9, 2013, this Court 7 Docket, pp. 1056-1058. 8 Docket, pp. 1062-1070. 9 Docket, pp. 1078-1083. 10 Docket, pp. 1086-1088.

DECISION CTA Case No. 8443 Page7of23 partially granted petitioner's Motion for Reconsideration and admitted Exhibits "D-3", "E-1" to "E-3", "F", "R-1 " and "R-2", but denied admission of Exhibits "L", "E-4", "E-5", "E-6" "E-7" "E-8" "E-9" "E-1 0" "E-11 " and "E-12"'',,'I In a Resolution 11 dated July 10, 2013, counsels for respondent manifested that they are submitting the instant case for decision considering that no Memorandum Report was made in this case. Thus, counsels for respondent were given thirty (30) days within which to file respondent's Memorandum. On the other hand, petitioner was given twenty (20) days from receipt of the said Resolution to file its Memorandum. Petitioner filed its Submission (With Motion to Set Commissioner's Hearing)12 on August 6, 2013, praying for the following: (1) noting the submission of the original computer print-out of Exhibit "L"; (2) setting of a Commissioner's Hearing for the comparison of the formally offered copy of Exhibit "L"; and (3) allowing the deferment of the filing of petitioner's Memorandum pending the resolution of the said Submission and Motion. In the Resolution 13 promulgated on August 13, 2013, the Court noted the Submission (With Motion to Set Commissioner's Hearing) and respondent was ordered to comment on petitioner's motion . Respondent failed to file her Comment.14 In a Resolution 15 dated September 25, 2013, this Court denied petitioner's Submission (With Motion to Set Commissioner's Hearing) for lack of merit. On November 4, 2013, the instant case was submitted for decision,16 considering respondent's Memorandum17 filed on August 7, 2013 and petitioner's Memorandum1s filed on October 29, 2013. THE ISSUES The issues19as stipulated by the parties are as follows: "A. WHETHER OR NOT PETITIONER IS ENTITLED TO THE CLAIM FOR REFUND OF OR THE ISSUANCE OF TAX CREDIT CERTIFICATE (TCC) FOR EXCESS OR UNUTILIZED INPUT VAT IN ?z--- 11 Docket, p. 1091. 12 Docket, pp. 1092-1096. 13 Docket, p. 1119. 14 Docket, p. 1121. 15 Docket, pp. 1123-1125. 16 Docket, p. 1147. 17 Docket, pp. 1097-1112. 18 Docket, pp. 1126-1146. 19 Docket, pp. 74-75.

DECISION CTA case No. 8443 Page8of23 THE AMOUNT OF PHP33,868, 101 .19 FOR THE 1sT QUARTER OF CY 2010. B. WHETHER OR NOT PETITIONER INCURRED INPUT VAT ON ITS PURCHASES OF GOODS AND SERVICES ATTRIBUTABLE TO ZERO-RATED SALES FOR THE 1ST QUARTER OF CY 2010. C. WHETHER OR NOT THE INPUT VAT INCURRED BY PETITIONER FOR THE 1ST QUARTER OF CY 2010 IS DULY SUPPORTED BY VAT INVOICES AND OFFICIAL RECEIPTS. D. WHETHER OR NOT THE INPUT VAT INCURRED BY PETITIONER FOR THE 1ST QUARTER OF CY 2010 AMOUNTING TO PHP33,868,101.19 WAS APPLIED AGAINST ANY OUTPUT VAT OR CARRIED OVER TO SUCCEEDING TAXABLE PERIODS. E. WHETHER OR NOT PETITIONER HAD ZERO-RATED SALES FOR THE 1sT QUARTER OF CY 2010, THE CONSIDERATION FOR WHICH WAS PAID FOR IN ACCEPTABLE FOREIGN CURRENCY AND ACCOUNTED FOR IN ACCORDANCE WITH THE RULES AND REGULATIONS OF THE BANGKO SENTRAL NG PILIPINAS (BSP) IN RELATION TO THE PROVISIONS OF SECTION 108(B)(2), TAX CODE, AS AMENDED. F. WHETHER OR NOT PETITIONER'S FILING OF ITS ADMINISTRATIVE CLAIM FOR REFUND CONSTITUTES EXHAUSTION OF ADMINISTRATIVE REMEDIES .AND COMPLIES WITH THE REQUIREMENTS UNDER SECTION 112(C), TAX CODE." THE COURT'S RULING Section 112(A) of the National Internal Revenue Code (NIRC) of 1997 allows the refund of unutilized input VAT earned from zero-rated or effectively zero-rated sales. The provision reads: 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 fJc-

DECISION CTA Case No. 8443 Page9of23 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 106(A)(2)(a)(1), (2) and (b) and Section 108(B)(1) 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): x x x x Based on the above-quoted provision , in order to be entitled to a refund or tax credit of input VAT payments attributable to zero-rated or effectively zero-rated sales, the following requisites must be satisfied: 1. that the taxpayer must be VAT-registered; 2. that there must be zero-rated or effectively zero-rated sales; 3. that input taxes were incurred or paid; 4. that such input VAT payments are directly attributable to zero-rated sales or effectively zero-rated sales; 5. that the input VAT payments were not applied against any output VAT liability; and 6. that the claim for refund was filed within the two-year prescriptive period. Before discussing the other requisites mentioned in the preceding paragraph , the Court shall first rule on the timeliness of the filing of the instant claim. In the case of Commissioner of Internal Revenue v. Mirant Pagbilao Corporation (formerly Southern Energy Quezon, lnc.) ,2othe Supreme Court held that the reckoning of the two-year prescriptive period for filing a claim for input VAT refund under Section 112(A) of the NIRC of 1997 should start from the close of the taxable quarter when the relevant sales were made pertaining to the input VAT regardless of whether the said tax was paid or not. In the instant petition , the subject of the claim for refund or issuance of tax credit certificate is petitioner's unutilized creditable input VAT attributable to its zero- rated sales for the first quarter of 2010. Hence, counting from March 31 , 2010, the close of the first quarter of 2010, petitioner had until March 31, 2012 within which to file its administrative claim with respondent. Evidently, petitioner seasonably filed its Jv administrative claim for the period covering the first quarter of 2010 on October 21 , 2011.21 20 G.R. No. 172129, September 12, 2008. 21 Exhibits "G" and " H"

DECISION CTA Case No. 8443 Page10of23 With respect to the filing of the judicial claim, Section 112(C) of the NIRC of 1997, as amended, is instructive. The said provision is quoted hereunder for ready reference: SEC. 112. Refunds or Tax Credits of Input Tax.- XXX XXX XXX (C) Period within which Refund or Tax Credit of Input Taxes shall be Made. - In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsection (A) hereof. In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one hundred twenty day-period, appeal the decision or the unacted claim with the Court of Tax Appeals. The nature of the 120-day period was discussed by the Supreme Court in the consolidated cases of Mindanao II Geothermal Partnership v. Commissioner of Internal Revenue and Mindanao I Geothermal Partnership v. Commissioner of Internal Revenue.22 The pertinent portions of the said decision read : We summarize the rules on the determination of the prescriptive period for filing a tax refund or credit of unutilized input VAT as provided in Section 112 of the 1997 Tax Code, as follows: (1) An administrative claim must be filed with the CIR within two years after the close of the taxable quarter when the zero-rated or effectively zero-rated sales were made. (2) The CIR has 120 days from the date of submission of complete documents in support of the administrative claim within which to decide whether to grant a refund or issue a tax credit certificate. The 120-day period may Jh- 22 G.R. Nos. 193301 and 194637, March 11, 2013 .

DEaSJON CTA case No. 8443 Page11 of23 extend beyond the two-year period from the filing of the administrative claim if the claim is filed in the later part of the two-year period. If the 120-day period expires without any decision from the CIR, then the administrative claim may be considered denied by inaction. (3) A judicial claim must be filed with the CTA within 30 days from the receipt of the CIR's decision denying the administrative claim or from the expiration of the 120-day period without any action from the CIR. (4) All taxpayers, however, can rely on BIR Ruling No. DA-489-03 from the time of its issuance on 10 December 2003 up to its reversal by this Court in Aichi on 6 October 2010, as an exception to the mandatory and jurisdictional120+30 day periods . Based on the foregoing, the 120-day period ended on February 18, 2012 reckoned from October 21, 201123, the date when petitioner filed its administrative claim and submitted the documents in support of its application for refund. Counting therefrom, petitioner may appeal its claim for refund to the CTA within 30 days or until March 19, 2012. Clearly, the instant Petition for Review was timely filed on March 19, 2012. The Court shall now discuss whether or not petitioner complied with the other requisites for it to be entitled to its claim for tax refund. Petitioner's claim for refund of excess or unutilized input VAT finds legal support in Sections 108(B)(1) and (2) and 110(B) of the NIRC of 1997, as amended, which state: SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties. - XXX XXX XXX (B) Transactions Subject to Zero Percent (0%) Rate. - The following services performed in the Philippines by VAT- ?z- registered persons shall be subject to zero percent (0%) rate: 23 Exhibits "G" and "H"

DECISION CTA Case No. 8443 Page12of23 (1) Processing, manufacturing or repacking goods for other persons doing business outside the Philippines which goods are subsequently exported, where the services are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP); (2) Services other than those mentioned in the preceding paragraph rendered to a person engaged in business conducted outside the Philippines or to a nonresident person not engaged in business who is outside the Philippines when the services are performed, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP) ; SEC. 110. Tax Credits.- XXX XXX XXX (B) Excess Output or Input Tax. - If at the end of any taxable quarter the output tax exceeds the input tax, the excess shall be paid by the VAT-registered person. If the input tax exceeds the output tax, the excess shall be carried over to the succeeding quarter or quarters: xxx Provided, however, That any input tax attributable to zero-rated sales by a VAT- registered person may at his option be refunded or credited against other internal revenue taxes, subject to the provisions of Section 112. In the case of Commissioner of Internal Revenue v. Burmeister and Wain Scandinavian Contractor Mindanao, lnc. ,24 the Supreme Court held that in order for the supply of services to be VAT zero-rated under Section 108(8)(2) of the NIRC of 1997, as amended,25 the following requisites must be met: 1. the services by a VAT-registered person must be other than processing , manufacturing or repacking of goods; 2. the payment for such services must be in acceptable foreign currency accounted for in accordance with the BSP rules and regulations; and Jv 3. the recipient of such services is doing business outside the Philippines. 24 G.R. No. 153205, January 22, 2007. 25 Formerly Section 102(b)(2) of the NIRC of 1977, as amended.

DECISION CTA Case No. 8443 Page13of23 Corollary to the second requisite, Sections 113(A)(2), (8)(1), (2)(c) and (3) of the NIRC of 1997, as amended, as implemented by Sections 4.113-1(A)(2), 8(1) and (2)(c) of Revenue Regulations (RR) No. 16-05 provide that a VAT taxpayer, like herein petitioner, shall for every lease of goods or properties and for every sale, barter or exchange of services, issue a VAT official receipt which must contain the following information : SEC. 113. Invoicing and Accounting Requirements for VAT-Registered Persons.- (A) Invoicing Requirements. - A VAT-registered person shall issue: XXX XXX XXX (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. (B) Information Contained in the VAT Invoice or VAT Official Receipt. - The following information shall be indicated in the VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person , followed by his Taxpayer's Identification Number (TIN); (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: Provided, That: XXX XXX XXX (c) If the sale is subject to zero percent (0%) value- added tax, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; XXX XXX XXX (3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; ft-

DECISION CTA Case No. 8443 Page14of23 SECTION 4.113-1. Invoicing Requirements. - (A) A VAT-registered person shall issue:- XXX XXX XXX (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services . Only VAT-registered persons are required to print their TIN followed by the word 'VAT' in their invoice or official receipts. Said documents shall be considered as a VAT Invoice or VAT official receipt. All purchases covered by invoices/receipts other than VAT lnvoiceNAT Official Receipt shall not give rise to any input tax. VAT invoice/official receipt shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of his accounting records. (B) Information contained in VAT invoice or VAT official receipt. - The following information shall be indicated in VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person , followed by his TIN ; (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the VAT; Provided, That: XXX XXX XXX (c) If the sale is subject to zero percent (0%) VAT, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; (Emphasis supplied) Pursuant to the foregoing provisions, the foreign currency remittances referred to under Section 108(8)(2) of the NIRC of 1997, as amended, must likewise be supported by VAT zero-rated official receipts. 9'Y

DECISION CTA Case No. 8443 Page15of23 Records confirm that petitioner is duly registered with the BIR as a VAT taxpayer26 and the services it performs in the Philippines, through its regional operating headquarters (ROHQ), such as accounting, valuation and information systems maintenance and development services27 are not in the same category as "processing, manufacturing or repacking of goods ." For services rendered for the first quarter of 2010, petitioner received foreign currency payments which were accounted for in accordance with the BSP rules and regulations , as evidenced by sales invoices and official receipts issued by petitioner to its alleged non-resident foreign clients, various inward remittance advices, and bank statements.2a For the said taxable quarter, petitioner allegedly rendered services to the following entities:29 1. Deutsche Bank Aktiengesellschaft, lnlandsbank 2. Deutsche Bank Aktiengesellschaft, Filiale Amsterdam 3. Deutsche Bank, Sociedad Espanola 4. Deutsche Bank Aktiengesellschaft, Filiale Zurich 5. Deutsche Bank Aktiengesellschaft, Asia Pacific Head Office 6. Deutsche Bank Aktiengesellschaft, Filiale Singapur 7. Deutsche Bank Aktiengesellschaft, Filiale Karachi 8. Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi-Minh-Stadt 9. Deutsche Bank Aktiengesellschaft, Filiale Seoul 10. Deutsche Bank Aktiengesellschaft, Filiale New York 11. Deutsche Bank Aktiengesellschaft, Filiale London 12. Deutsche Bank Aktiengesellschaft, Filiale Tokyo 13. Deutsche Bank Aktiengesellschaft, Filiale Paris 14. Deutsche Bank Aktiengesellschaft, Filiale Prag 15. Deutsche Bank Luxembourg S.A. 16. Deutsche Securities, Inc. 17. Deutsche Bank (China) Co. Ltd. , Beijing Branch 18. Deutsche Bank (China) Co. Ltd., Guangzhou Branch 19. Deutsche Bank (China) Co. Ltd., Shanghai Branch 20. DWS Holding &Service GmbH 21. RREEF Management GmbH 22. DB Hedgeworks, LLC 23. Deutsche Bank Real Estate (Japan) Y.K. 24. Deutsche Bank Securities, Inc. 25. Deutsche Asia Pacific Holdings Pte Ltd J'V 26. PT. Deutsche Securities Indonesia 27. Deutsche Group Services Pty Limited 26 Exhibit "B" 27 Exhibit "F"; Notes to the Financial Statements, No. 1, Reporting Entity, docket, p. 664. 28 Exhibits " M-1" to " M-673" 29 Exhibit "S", docket, pp. 1010 -1011.

DECISION CTA case No. 8443 Page16of23 28. Deutsche Bank PBC Spolka Akcyjna 29. Deutsche Bank Trust Company Americas 30. DB Services New Jersey, Inc. 31 . Deutsche Bank National Trust Company 32. DB Finance, Inc. 33. DB International (Asia) Limited 34. DBOI Global Services Private Limited To prove that its clients are non-resident foreign corporations doing business outside the Philippines, petitioner presented the following documents: 1. SEC Certifications of Non-Registration of Company;3o 2. Authenticated Articles of Association of Deutsche Bank Aktiengesellschaft; 31 3. Authenticated Certificate of Registration of Deutsche Bank Aktiengesellschaft, Singapore;32 4. Authenticated Certificate of Registration of Deutsche Bank Aktiengesellschaft, Asia Pacific Head Office;33 5. Authenticated Certificate of Good Standing of Deutsche Bank Aktiengesellschaft, New York;34 6. Authenticated Certificate of Incorporation of Deutsche Asia Pacific Holdings Pte. Ltd. ;3s 7. Authenticated Certificate of Incorporation of Deutsche Securities lnc. ;36 and 8. IntraGroup Service Agreements.37 However, this Court finds that the enumerated documents, standing alone, are insufficient to prove that petitioner's clients are non-resident foreign corporations doing business outside the Philippines . While the SEC Certificates of Non-Registration show that the named entities therein are not registered corporations/partnerships in the Philippines, the same do not prove that such entities are non-resident foreign corporations doing business outside the Philippines. Likewise, the IntraGroup Service Agreements only show the names of petitioner's customers to whom it rendered services but the same do not establish that such customers are non-resident foreign corporations doing business outside the Philippines. Also, the Articles of Association and Certificates of Registration/Incorporation of Foreign Company only prove that the named entities ~ 30 Exhibits "1-1" to "1-35" 31 Exhibit "J- 1" 32 Exhibit "J-2" 33 Exhibit "J-3" 34 Exhibit "J-4" 35 Exhibit "J-5" 36 Exhibit "J-6" 37 Exhibits "K-1" to "K-22"

DECISION CTA Case No. 8443 Page17of23 therein were incorporated/organized abroad but do not establish that such entities are not doing business in the Philippines. To be considered as non-resident foreign corporation doing business outside the Philippines, each entity must be supported , at the very least, by both SEC certificate of non-registration of corporation/partnership and certificate/articles of foreign incorporation/association. Thus, only the following clients of petitioner shall be considered as non-resident foreign corporations doing business outside the Philippines : COMPANY NAME LOCATION 1. Deutsche Bank (China) Co., Ltd., Beijing Branch Beijing, China 2. Deutsche Bank (China) Co., Ltd., Shanghai Branch Shanghai, China 3. Deutsche Bank Aktiengesellschaft, Asia Pacific Head Office Singapore - APHO 4. Deutsche Bank Aktiengesellschaft, Filiale Ho-Chi-Minh-Stadt Ho Chi Minh City, Vietnam 5. Deutsche Bank Aktiengesellschaft, Filiale London 6. Deutsche Bank Aktiengesellschaft, Filiale New York London 7. Deutsche Bank Aktiengesellschaft, Filiale Singapore New York 8. Deutsche Bank Luxembourg S.A. Singapore 9. DB Finance Inc. Luxembourg 10. DB International (Asia) Limited Tokyo, Japan 11 . Deutsche Asia Pacific Holdings Pte Ltd . Singapore 12. Deutsche Group Services Pty Limited Singapore- DAPH 13. Deutsche Securities Inc. Sydney, Australia 14. DWS Holding & Service GMBH 15. PT Deutsche Securities Indonesia Tokyo Frankfurt, Germany Jakarta, Indonesia Accordingly, petitioner's sales of services to the afore-mentioned entities for the first quarter of 2010 in the amount of 9,859,736.48 with peso equivalent of P627,255,650.48, as presented below, qualify for VAT zero-rating under Section 108(8)(2) of the NIRC of 1997, as amended: OR Inward Amount Ex h. Remittance Collected in Company Name OR# No. Exh. No. Euro Peso Equivalent DB China Beijing DB China Shanghai 718 M-286 M-287 18,499.48 ~ 1,141 ,540.01 DB China Shanghai DB China Shanghai 630 M-145 M-146 27,955.62 1,851 ,506.30 DB China Shanghai DB China Shanghai 630 M-145 M-146 22 ,244 .15 1,473,234 .50 DB China Shanghai DB China Shanghai 630 M-348 M-349 8,349.15 552,965.87 DB AG Asia Pacific H.O. DB AG Asia Pacific H.O. 705 M-449 M-452 12,331.91 770,681 .48 DB AG Asia Pacific H.O. DB AG Asia Pacific H.O. 726 M-291 M-292 13,875.03 843 ,529 .68 DB AG Asia Pacific H.O. 726 M-291 M-292 27,750.60 1,687,092.1 8 726 M-576 M-577 3,764 .50 228,862.02 635 M-132 M-133 394 ,160 .29 26,127,308.98 636 M-368 M-369 21 ,501 .92 1,425 ,276 .27 638 M-398 M-399 17,079.14 1,132,107.87 641 M-169 M-170 6,032.34 401 ,207.92 642 M-165 M-166 17,584 .20 1,169,516.35

DECISION 644 M-161 M-162 62 ,269 .31 4,141,500.67 CTA case No. 8443 645 M-181 M-182 62,389.38 4,149,486.47 Page18of23 648 M-177 M-178 44,993 .83 2,979,401 .43 649 M-201 M-202 24,041 .78 1,591 ,998.59 DB AG Asia Pacific H.O. 653 M-520 M-521 6,824 .91 DB AG Asia Pacific H.O. 654 M-433 M-434 292 ,870 .92 443,898.29 DB AG Asia Pacific H.O. 655 M-536 M-537 112,370.67 19,048,588.22 DB AG Asia Pacific H.O. 656 M-475 M-476 17,432.74 7,308,689 .51 DB AG Asia Pacific H.O. 657 M-480 M-481 5,480.82 1,133,841 .00 DB AG Asia Pacific H.O. 659 M-515 M-515 2,748.62 DB AG Asia Pacific H.O. 668 M-28 M-29 12,600.00 356,477.47 DB AG Asia Pacific H.O. 671 M-38 M-39 12,500.00 178,772 .72 DB AG Asia Pacific H.O. 674 M-65 M-66 15,000.00 807,070.32 DB AG Asia Pacific H.O. 675 M-74 M-75 5,000.00 800 ,665 .00 DB AG Asia Pacific H.O. 676 M-70 M-71 4,000.00 960,798.00 DB AG Asia Pacific H.O. 677 M-79 M-80 58 ,064 .51 320,266 .00 DB AG Asia Pacific H.O. 678 M-89 M-90 12,000 .00 256 ,212 .80 DB AG Asia Pacific H.O. 679 M-104 M-105 24 ,000 .00 3,719,217.67 DB AG Asia Pacific H.O. 683 M-84 M-85 12 ,000 .00 768,638.40 DB AG Asia Pacific H.O. 684 M-109 M-110 12,000.00 1,537,276.80 DB AG Asia Pacific H.O. 685 M-2 M-3 12,000.00 768,638.40 DB AG Asia Pacific H.O. 686 M-16 M-17 12,899 .99 768,638.40 DB AG Asia Pacific H.O. 714 M-552 M-553 65,341 .53 768,638.40 DB AG Asia Pacific H.O. 720 M-608 M-609 78 ,693 .93 826,285.64 DB AG Asia Pacific H.O. 722 M-221 M-222 144,121.22 4,023,293.63 DB AG Asia Pacific H.O. 724 M-57 M-58 449,291 .54 4,786,731.42 DB AG Asia Pacific H.O. 661 M-500 M-501 8,766,490.27 DB AG Asia Pacific H.O. 702 M-562 M-563 3,860.51 27,329,146.36 DB AG Asia Pacific H.O. 709 M-624 M-625 941.95 249,590.08 DB AG Asia Pacific H.O. 660 M-191 M-192 58,949.87 DB AG Ho Chi Minh 699 M-353 M-354 3,538.50 219 ,977 .22 DB AG Ho Chi Minh 716 M-637 M-638 451,787.52 29,209,011 .28 DB AG Ho Chi Minh 721 M-632 M-633 1,457,267.26 91 ,361,476.42 DB AG London 693 M-127 M-128 567,057.78 34 ,915 ,618.81 DB AG London 701 M-11 M-12 107,168.22 6,515,270.50 DB AG London 707 M-260 M-261 930,121 .30 DB AG London 725 M-121 M-122 14,792 .57 23,952,363.79 DB AGNew York 637 M-363 M-364 381 ,255.90 130,061 ,885.32 DB AGNew York 639 M-393 M-394 2,075 ,285 .62 599,685.63 DB AGNew York 643 M-250 M-251 3,765 ,382 .20 DB AGNew York 646 M-186 M-187 9,858 .84 20,349.80 DB AG Singapore 651 M-206 M-207 56 ,805 .09 2,386,835.07 DB AG Singapore 658 M-468 M-469 7,306 ,818 .80 DB AG Singapore 662 M-441 M-442 307.00 192,389 .78 DB AG Singapore 667 M-245 M-246 35,887.13 5,811 ,717.91 DB AG Singapore 669 M-43 M-44 109,861 .28 7,642,509.06 DB AG Singapore 670 M-7 2,905.40 1,601 ,331.28 DB AG Singapore 672 M-33 M-8 89 ,354 .82 1,801 ,496.25 DB AG Singapore 673 M-24 M-34 116,702.69 960,798.00 DB AG Singapore 680 M-99 M-25 25,000.02 1,815 ,908 .22 DB AG Singapore 681 M-94 M-100 28,125 .00 1,032,859.13 DB AG Singapore 687 M-20 M-95 15,000 .00 1,601 ,330.00 DB AG Singapore 713 M-557 M-21 28,350.00 960,798.00 DB AG Singapore 723 M-612 M-558 16,125.02 1,594 ,924 .68 DB AG Singapore M-613 25 ,000.00 7,656,258.10 DB AG Singapore 15,000 .00 DB AG Singapore 24 ,900 .00 2,207.42 DB AG Singapore 124,343.80 36.29

DECISION CTA Case No. 8443 Page19of23 DB Finance Inc. 691 M-334 M-335 1,382 .50 88,096 .36 M-340 46 ,250 .10 3,068,994.76 DB International (Asia) Limited 640 M-339 M-671 46 ,250 .10 2,813 ,264 .08 M-545 6,981 .30 DB International (Asia) Limited 729 M-670 M-446 31 ,776.99 462,287.72 M-661 10,170.01 2,017,403 .52 DB Luxembourg S.A. 650 M-544 M-314 27,750.06 618 ,613 .23 DB Luxembourg S.A. 692 M-445 M-324 498 ,208 .72 1,821 ,844.16 DB Luxembourg S.A. 727 M-660 M-197 25,973.26 32 ,634 ,315 .25 DT Asia Pacific Holdings 633 M-313 M-217 7,443 .75 1,680 ,815 .19 DT Group Services Pty M-374 23,710.43 481 ,709.58 Limited 663 M-323 M-486 31,791 .20 1,534 ,380 .01 DT Group Services Pty M-528 6,958.43 2,057,313.25 Limited 666 M-196 M-580 29 ,326 .91 450,302.92 DT Group Services Pty M-404 3,930.37 1,832,782.31 M-281 984,749.96 Limited 666 M-216 M-62 118,150.10 246,577.26 M-666 65,275,135.85 DT Group Services Pty 18,500.04 7,341 ,256.46 M-319 1'141 ,574.57 Limited 666 M-373 1,850.01 9,859, 736.48 115,628.77 DT Group Services Pty P627,255,650.48 Limited 666 M-485 DT Group Services Pty Limited 666 M-527 DT Group Services Pty Limited 704 M-579 DT Group Services Pty Limited 706 M-403 DT Securities Inc. 634 M-280 DT Securities Inc. 711 M-61 DWS Hold Service 717 M-665 PT Deutsche Securities Indonesia 700 M-318 TOTAL The rest of petitioner's declared zero-rated sales in the amount of P231 ,060,219.61 (P858,315,870.09 less P627,255,650.48) shall be denied VAT zero-rating for petitioner's failure to prove that the entities to whom it rendered services are non-resident foreign corporations doing business outside the Philippines. Petitioner alleged that the entire amount of P33,868, 101.19, reflected in its Quarterly VAT Return for the first quarter of 2010 as input VAT from current purchase transactions, is attributable to its zero-rated sales of services for the said quarter. Below is the breakdown of the input tax of P33,868,101.19: Input VAT from Current Transactions p 1,256,449.28 Purchase of Capital Goods exceeding 1 Million 36,803.79 Purchase of Capital Goods not exceeding 1 Million Domestic Purchases of Goods Other than Capital Goods 1,664,409.91 Domestic Purchases of Services 30,812,560.86 Services Rendered by Non-Residents Total Input VAT 97,877.35 P33,868,101.19

DECISION CTA Case No. 8443 Page20of23 It must be noted that part of the total input VAT claim of P33,868,101 .19 is the amount of P1 ,256,449.28, representing input VAT on purchases of capital goods exceeding P1 Million. Pursuant to Section 110(A) of the NIRC of 1997, as amended, as implemented by Section 4.110-3 of RR No. 16-2005, input VAT claim on capital goods purchases attributable to zero-rated sales may be claimed either in full during the month of acquisition , or spread over a period of time, depending on the aggregate acquisition cost of the capital goods in the calendar month. If the aggregate acquisition cost exceeds P1 Million, the claim for input tax should be spread over 60 months or the estimated useful life of the capital goods, whichever is shorter. On the other hand, if the aggregate acquisition cost does not exceed P1 Million, the total input taxes shall be allowed as crediUrefund in the month of acquisition . While petitioner was able to substantiate the amount of P741 ,571.07 out of the total claimed input VAT of P1 ,256,449.28 on capital goods purchases exceeding P1 Million, only the amortization3s for the first quarter of 2010 in the amount of P22,027.35 may be claimed by petitioner as valid input tax credits for the same taxable quarter, as determined below: Registered Name of Supplier Exhibit Invoice Date of Input VAT Amortization Accent Micro Technologies Inc. No. Number Invoice Reported per p 160.71 Accent Micro Technologies Inc. 107845 1/14/2010 QVAT Return Accent Micro Technologies Inc. M-709 107846 1/14/2010 p 3,214.29 42 .84 Accent Micro Technologies Inc. M-710 107850 1/14/2010 375 .00 Accent Micro Technologies Inc. M-711 108013 1/20/2010 856 .71 9,011 .31 Accent Micro Technologies Inc. M-712 108037 1/20/2010 7,500 .00 851.79 Accent Micro Technologies Inc. M-713 108086 1/22/2010 180,226 .29 552 .00 Accent Micro Technologies Inc. M-714 108098 1/22/2010 17,035 .71 77 1.43 Accent Micro Technologies Inc. M-715 108143 1/25/2010 11 ,040.00 771.43 Accent Micro Technologies Inc. M-716 108163 1/25/2010 15,428.57 1,960.71 Accent Micro Technologies Inc. M-717 109303 03/09/2010 15,428.57 7,317 .77 Accent Micro Technologies Inc. M-732 109555 03/22/2010 39 ,214 .29 Accent Micro Technologies Inc. M-733 109683 03/25/2010 439 ,066 .07 7.68 Accent Micro Technologies Inc. M-734 109734 03/26/2010 22.46 Accent Micro Technologies Inc. M-735 109736 03/26/2010 460 .71 69.68 Total M-736 109754 03/26/2010 1,347.43 42.86 M-737 4,180.50 69.68 2,571.43 p 22,027.35 4,180.50 p 741 ,751.07 Consequently, the unamortized input VAT of P719,723.72 (P741,751.071ess P22,027.35) and the input VAT of P514,698.21 pertaining to purchase of capital goods exceeding P1 Million, the supporting VAT invoice of which was not presented before this Court, shall be deducted from petitioner's input VAT claim. 9z- 38 Based on estimated useful life of 60 months since the Court cannot ascertain the estimated useful life used by petitioner in depreciating the said capital goods.

DECISION CTA Case No. 8443 Page21 of23 In addition, the input VAT of P11 ,556,290.62,39 as summarized below, shall be disallowed for petitioner's failure to meet the substantiation requirements under Sections 110(A) and 113(A) and (B) of the NIRC of 1997, as amended by RA No. 9337, and as implemented by Sections 4.110-2, 4.110-8 and 4.113-1 of Revenue Regulations No. 16-05: FINDINGS DISALLOWED INPUT VAT 1. Domestic purchases of services supported by VAT ORs wherein ~ 5,470,274.88 the input VAT were not separately indicated 71 ,165.89 2. Domestic purchases of goods other than capital goods 3,527,052.60 11135,586.84 supported by VAT invoice wherein the input VAT were not separately indicated 6,596.14 3. Domestic purchases of services without supporting VAT ORs 3,235 .68 4. Domestic purchases of goods other than capital goods without 89,424.36 supporting VAT invoice 97,877.35 5. Domestic purchases of capital goods not exceeding P1 M supported by VAT invoices dated outside the period of claim 1'155,076 .88 6. Domestic purchase of services supported by VAT OR dated p 11,556,290.62 outside the period of claim 7. Overclaimed input VAT on domestic purchases of service supported by VAT OR 8. Input VAT on services rendered by non-residents without supporting documents 9. Input VAT on services supported by documents imprinted with the statement "This document is not a valid source of input tax" TOTAL Thus, only the remaining amount of P21 ,077,388.64 represents petitioner's valid input VAT for the first quarter of 2010. After applying petitioner's valid input VAT of P21 ,077,388.64 against its output VAT of P713,041.78 for the subject period of claim, there remains an excess input VAT of P20,364,346.86, which can be attributed to the entire zero-rated sales/receipts declared by petitioner in the amount of P858,315,870.09. Accordingly, only the input VAT of P14,882,227 .02 is attributable to the valid zero-rated sales of P627,255,650.48, as computed below: Input VAT claimed for refund ~ 719,723.72 ~ 33,868,101.19 514 ,698 .21 Less: Disallowances 12,790,712.55 Unamortized Input VAT on Capital Goods 11 ,556,290 .62 P21 ,077,388.64 exceeding ~1 Million Input VAT on Capital Goods exceeding ~1 Million without supporting documents Input VAT on purchases of services and goods other than capital goods Valid Input VAT 39 See Annex A of this Court's Findings for details.

DECISION 713,041 .78 CTA Case No. 8443 P20,364,346.86 Page22of23 Less: Output VAT Valid Excess Input VAT Valid Zero-Rated Sales/Receipts 627,255,650.48 Divided by Total Reported Zero-Rated Sales/Receipts 858,315,870.09 Multiply by Valid Excess Input VAT 20 ,364 ,346.86 Excess Input VAT attributable to the Valid Zero-Rated Sales/Receipts P14,882,227 .02 Even though the claimed input VAT was carried over by petitioner in the succeeding Quarterly VAT Returns,4o the same remained unutilized until it was deducted41 from petitioner's total available input tax in the fourth quarter of 2011 . As a result, the subject claim no longer formed part of the excess input VAT of P254,551 ,269.8642as of the fourth quarter of 2011 which was carried over/applied to the succeeding first quarter of 2012.43 WHEREFORE, premises considered, the instant Petition for Review is hereby PARTIALLY GRANTED. Accordingly, let a tax refund or a tax credit certificate be issued in favor of petitioner in the amount of P14,882,227.02 representing its unutilized input VAT attributable to its zero-rated sales for the first quarter of 2010. SO ORDERED. ~~~ L?.C17'--~t'1 , 1UANITO C. CASTANEDA, Jf. J Associate Justice WE CONCUR: CAESAR A. CASANOVA (On Leave) Associate Justice AMELIA R. COTANGCO-MANALASTAS Associate Justice 40 Exhibits " D-1" to "D-6" and "R-1" 41 Line 23E of Exhibit "R-1" 42 Line 27, Exhibit"R-1" 43 Line 20E, Exhibit "R-2"

DECISION CTA Case No. 8443 Page23of23 ATTESTATION I attest that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. ~'1oC~~A 1JRQ.- lJUANITO C. CASTANEDA, Associate Justice Chairperson 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 Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court. Presiding Justice

AnnexA CTA Case No. 8443 Findings Exhibit Invoice Number Input VAT No. Amount 1 Domestic purchases of services supported by VAT ORs wherein the input VAT were not separately indicated 6-24 PROPERTY HOLDINGS INC. M-675 210-213 377 508.24 6-3 PROPERTY HOLDINGS INC. M-693 SA294 167 013.36 6-3 PROPERTY HOLDINGS INC. M-693 SA295 6-3 PROPERTY HOLDINGS INC. M-693 SA296 1065.96 ACCENTURE M-2249 3 511.62 ACCENT MICRO TECHNOLOGIES INC M-729 512 1 021 265.43 ACCENT MICRO TECHNOLOGIES INC M-730 107413 11040.00 ACCENT MICRO TECHNOLOGIES INC M-731 108316 ASIA SELECT INC M-756 109054 277.45 ASIA SELECT INC M-757 10317 11 040.00 ASIA SELECT INC M-758 10409 4 731.58 ASIA SELECT INC M-759 10460 4 492.58 ASIA SELECT INC M-760 10563 4 074.13 ASIA SELECT INC M-761 10647 4 519.19 BENCHMARK CONSULTING CO. M-811 10721 BENCHMARK CONSULTING CO. M-812 20100001 3 964.18 Biq Media Imaqinq Systems Inc. M-819 2010-00-24 4 279.18 BIGFISH RESTAURANT CONCEPTS INC M-822 10 800.00 BIGFISH RESTAURANT CONCEPTS INC M-822 2942 1 200.00 BIGFISH RESTAURANT CONCEPTS INC M-823 404 BONIFACIO BISTRO ITALIANO M-824 405 85.71 BONIFACIO BISTRO ITALIANO M-825 408 1 607.14 BUSINESSWORKS INC. M-829 11210 BUSINESSWORKS INC. M-830 21510 916.07 BUSINESSWORKS INC. M-831 2651 13 323.21 BUSINESSWORKS INC. M-832 2653 CIBI INFORMATION INC. M-845 2659 353.57 CIBI INFORMATION INC. M-846 2660 5 560.71 DHL EXPRESS PHILS CORP M-996 28712 1 408.16 DHL EXPRESS PHILS CORP M-1000 29150 10 714.29 DHL EXPRESS PHILS CORP M-1000 D01469802A 10 714.29 DHL EXPRESS PHILS CORP M-1000 D01477492A DHL EXPRESS PHILS CORP M-1002 MNL976157 428.57 DHL EXPRESS PHILS CORP M-1004 D01475199A 2 106.00 DHL EXPRESS PHILS CORP M-1005 D01480902A DHL EXPRESS PHILS CORP M-1015 D01509310 630.00 DHL EXPRESS PHILS CORP M-1016 D01509812 3.60 ELCRON CONSTRUCTION M- 1017 MNL978732 ELLENAIRE ELECTRO MECHANICAL CORP M-1019 MNL981149 483.60 ELLENAIRE ELECTRO MECHANICAL CORP M-1020 5 718.75 ELLENAIRE ELECTRO MECHANICAL CORP M-1021 3 ELLENAIRE ELECTRO MECHANICAL CORP M-1022 150 3.60 EXCELSIOR TOURS AND TRANSPORT M-1041 166 3.60 Extreme Operations Protective M-1129 181 3.60 FIRST FORTUNA INSURANCE M-1153 189 502.60 FIRST FORTUNA INSURANCE M-1154 1110 5 148.21 FMR CORPORATION M-1155 PRF 11.12.2009 5 719.69 GA-10-00000578 3 053.57 GA1000000579 9 798.00 121209-BIR 9 798.00 9 798.00 9 798.00 910.71 6 227.89 2 950.64 2 950.64 846.43 1

AnnexA CTA Case No. 8443 Findings Exhibit Invoice Number Input VAT No. Amount FTL HOTELS INC SOMl0-0047 FTL HOTELS INC M-1160 SOMl0-0051 14 711.76 FTL HOTELS INC M-1160 SOMl0-0046 1 326.72 FTL HOTELS INC M-1161 SOM10-0049 FTL HOTELS INC M-1161 SOM10-0050 10 428.06 FTL HOTELS INC M-1161 SOM10-0072 1 325.09 GOUDIE ASSOCIATES MANILA LTD. M-1164 39978 INV10/7699 4 515.84 HOSPITAUTY INTERNATIONAL/ INC M-1652 HOSPITALITY INTERNATIONAL INC M-1676 12-85/09 11498.20 HOSPITALITY INTERNATIONAL INC M-1676 10-79/09 71657.14 HOSPITALITY INTERNATIONAL, INC M-1676 12-44/09 10 528.07 I SYSTEMS INTEGRATORS INC. M-1679 12-45/09 18 767.79 INTERNATIONAL ELEVATOR & EQUIP M-1683 66 731.40 JALTAR CORPORATION M-1787 996 10 026.73 JOHN CLEMENTS CONSULTANTS INC M-1789 7974 124 875.00 JOHN CLEMENTS CONSULTANTS INC M-1795 PRF 1/12/2010 127 652.68 JOHN CLEMENTS CONSULTANTS INC M-1796 21967 97 497.24 JOHN CLEMENTS CONSULTANTS INC M- 1796 21971 23 814.00 JOHN CLEMENTS CONSULTANTS INC M-1797 21972 33 806.16 JOHN CLEMENTS CONSULTANTS INC M-1798 21973 33 806.16 KC INDUSTRIAL CORP M-1799 21998 77 678.57 LANTRO PHILS INC M-1807 2818 LANTRO PHILS INC M-1808 58419 960 .00 MANILA PENINSULA HOTEL INC. M-1809 2139 77 678.57 MC ENGINEERING INC. M-1821 2218 27 053.57 MC ENGINEERING, INC. M- 1830 47723 MEC NETWORKS CORPORATION M-1832 3204 1116.33 MICRO-D INTERNATIONAL INC. M-1833 3206 368.12 MICRO-D INTERNATIONAL INC. M-1838 3635 MICRO-D INTERNATIONAL INC. M- 1838 14493 1 632.00 MICRO-D INTERNATIONAL INC. M-1839 14494 452 702.15 MICRO-D INTERNATIONAL INC. M- 1838 14578 270 745 .14 MICRO-D INTERNATIONAL INC. M- 1839 14579 MICRO-D INTERNATIONAL INC. M- 1840 14585 14 464.29 MICRO-D INTERNATIONAL INC. M-1840 14580 11 250 .00 MICRO-D INTERNATIONAL INC. M- 1842 14581 11 250.00 MICRO-D INTERNATIONAL INC. M- 1843 14676 129 645.67 MISNET EDUCATION INC. M- 1843 14678 35 519 .78 NEXSTEP INC M- 1845 14679 NEXSTEP INC M- 1851 10309 3 985.71 NEXSTEP INC M- 1852 2010001 2 310 .52 PLDT M- 1853 2010002 PREMIUM SECURITY & INVESTIGATION M-1887 2010003 191.69 PREMIUM SECURITY & INVESTIGATION M-2098 25497744 125 608.28 PREMIUM SECURITY & INVESTIGATION M-2099 92795 PREMIUM SECURITY & INVESTIGATION M-2099 93063 2 433.21 PREMIUM SECURITY & INVESTIGATION M-2099 93066 57.51 PREMIUM SECURITY & INVESTIGATION M-2100 93238 PREMIUM SECURITY & INVESTIGATION M-2101 93239 2 057.14 M-2102 93240 186 000.00 93376 156 000.00 43 200.00 188 340.22 76.63 6 790.06 4 139.23 54.35 36.23 1136.58 120.77 2

AnnexA CTA Case No. 8443 Findings Exhibit Invoice Number Input VAT PREMIUM SECURITY & INVESTIGATION No. Amount PREMIUM SECURITY & INVESTIGATION 93486 PREMIUM SECURITY & INVESTIGATION M-2102 93489 4 115.54 PREMIUM SECURITY & INVESTIGATION M-2102 93487 191.57 PREMIUM SECURITY & INVESTIGATION M-2103 93488 PREMIUM SECURITY & INVESTIGATION M-2103 93619 6 767.04 PREMIUM SECURITY & INVESTIGATION M-2103 94200 229.89 PREMIUM SECURITY & INVESTIGATION M-2109 94478 PREMIUM SECURITY & INVESTIGATION M-2112 94476 4 067.81 PREMIUM SECURITY & INVESTIGATION M-2112 94477 18.12 PROFESSIONAL SKILLS ENRICHMENT M-2113 94479 PROFESSIONAL SKILLS ENRICHMENT M-2115 3960 114.94 PROFESSIONAL SKILLS ENRICHMENT M-2122 3961 7 115.32 PSEI FIRESAFETY SYSTEM M- 2123 3963 3 817.10 PSEI FIRESAFETY SYSTEM M-2124 1426 PSEI FIRESAFETY SYSTEM M-2129 1389 18.12 PSEI FIRESAFETY SYSTEM M-2126 1390 10 920.00 PSEI FIRESAFETY SYSTEM M-2127 1413 22 920.00 PSEI FIRESAFETY SYSTEM M-2128 1414 11460.00 PSEI FIRESAFETY SYSTEM M-2128 1427 REALFORM FURNITURE SHOP M-2130 1442 2 340.00 REALFORM FURNITURE SHOP M-2132 4 146.43 REALFORM FURNITURE SHOP M-2142 331 2,340.00 SERVCOM INCORPORATED M-2143 340 2 340.00 SINCLAIR KNIGHT MERZ (PHILIPPINES) M-2144 348 4 146.43 SYCIP SALAZAR HERNANDEZ & GATMAITAN M-2162 6533 4 146.43 TAGAYTAY HIGHLANDS INTERNATIONAL M-2177 PS02909 4,146.43 THEUER EUROLIGHTING M-2209 5088178 16 800.00 TIERRA INTERNATIONAL CONSTRUCTION M-2212 SOA 02.05.2010 UNITED GLOBAL REAL ESTATE M-2220 SOA 03 .04.10 110.40 UNIVERSITY OF STO. TOMAS M-2221 PRF 12/21/2009 9,600.00 UPS-DELBROS INTERNATIONAL M-2232 PRF 01.05.2010 4 821.43 UPS-DELBROS INTERNATIONAL M-2233 PRF 12.22.09 30 720.00 VIVENTIS SEARCH ASIA INC. M-2234 4E+11 12 107.76 VIVENTIS SEARCH ASIA INC. M-2235 4E+11 15 722.68 VRJ HOLDINGS INC. M-2240 2381 3 214.29 WIL-AN COMMERCIAL INC M-2241 2493 432 000.00 PLOT M-2243 10/01-002 48 870.00 PLOT M-2245 1830 PLOT M-1898 28163770 975.00 PLOT M-1899 28754640 2 897.00 PLOT M-1904 29032066 127 620.00 PLOT M-1906 29363209 43 200.00 PLOT M-1907 29363211 13 356 .00 PLOT M-1909 29363224 273 908.52 PLOT M- 1914 29363245 1 339.29 PLOT M- 1917 29363257 PLOT M- 1927 29363280 394.00 PLOT M- 1928 29363281 239.40 M- 1933 29363289 16 200.00 M- 1940 29363301 197.59 42 695.61 160.71 239.40 239.40 389.38 389.38 239.40 239 .40 3

AnnexA CTA Case No. 8443 Exhibit Input VAT Findings No. Invoice Number Amount PLOT M-1947 29363313 6 127.56 PLOT M-1972 29630760 19 980.00 Sub-total 5. 470. 274.88 2 Domestic purchases of goods other than capital goods supported by VAT invoice wherein the input VAT were not separately indicated AB METAL CRAFT MFG M-707 8266 1 392.86 2 828.57 AB METAL CRAFT MFG M-708 8279 3 092.14 3 642.86 FIRENZE OF CHICAGO INC. M-1152 1468 925.71 INTENSE CAR AUTO SALON CORP. M-1786 2093 535.71 6 787.50 NATIONAL BOOK STORE INC. M-1850 843851 5 575.71 1 479.11 PETALS GALORE FLORIST M-1862 637 2 098.93 9 878.57 PRECISION BLACK TONER INC. M-2091 12507 2 098.93 20 796.43 PRECISION BLACK TONER INC. M-2092 12751 7 714.29 1 461.43 PRECISION BLACK TONER INC. M-2093 12760 857.14 PRECISION BLACK TONER INC. M-2094 12816 71,165.89 PRECISION BLACK TONER INC. M-2095 12906 5 400.00 24 652.80 PRECISION BLACK TONER INC. M-2096 13043 280 901.50 258 843.26 PRECISION BLACK TONER INC. M-2097 13146 259 380.85 274 373.58 PSEI FIRESAFETY SYSTEM M-2125 1425 275 892.35 10 714.29 RELECH TRADING M-2145 83 11 764.29 SERVCOM INCORPORATED M-2161 6649 3.60 667.60 Sub-total 635.60 3 916.18 3 Domestic purchases of services without supportin~ VAT ORs 3 048.10 6 003.35 ACCRA LAW OFFICE 1187323 184 488.24 183 606.48 ASCOTT MAKATI INC. AM09-2309 185 931.12 185 169.60 AVAYA PHILIPPINES INC AIP0910028/ AOS 194 964.72 487 669.72 AVAYA PHILIPPINES INC AIP0910029/ AOS 14 464.29 9 964.29 AVAYA PHILIPPINES INC AIP0912003/ AOS 29 288.57 2 892.86 AVAYA PHILIPPINES INC AIP0912004/ AOS 2 940.00 AVAYA PHILIPPINES INC AIP1001002/ AOS BUSINESSWORKS INC. 2654 DEVELOPMENT DIMENSIONS 3240 DHL EXPRESS PHILS CORP 001457544 DHL EXPRESS PHILS CORP 001457643 DHL EXPRESS PHILS CORP 001457647 DHL EXPRESS PHILS CORP MNL954316 DHL EXPRESS PHILS CORP MNL959362 DHL EXPRESS PHILS CORP MNL968382 DIGITAL TELECOMMUNICATIONS 126490000 DIGITAL TELECOMMUNICATIONS 128433944 DIGITAL TELECOMMUNICATIONS 130481479 DIGITAL TELECOMMUNICATIONS 132445913 DIGITAL TELECOMMUNICATIONS 134439730 E.E. BLACK LTO. 1294 ESCO Audio Visual Pte.Ltd. ESI26240A ESCO Audio Visual Pte.Ltd . ESI 26240B ESCO Audio Visual Pte.Ltd. ESI26241A ESCO Audio Visual Pte.Ltd. ESI26241B ESCO Audio Visual Pte.Ltd. ESI29361 4

AnnexA CTA Case No. 8443 Exhibit Input VAT Findings No. Invoice Number Amount ESCO Audio Visual Pte.Ltd. ESI29655 690.00 ESCO Audio Visual Pte.Ltd. ESI29827 6 060.00 ESCO Audio Visual Pte.Ltd. ESI29904 690.00 Extreme Operations Protective SOAl/29/10 6 561.53 Full Circle Communications Inc 175 13 695.00 HEADSTRONG PHILIPPINES INC. 392 24 658.30 HEADSTRONG PHILIPPINES INC. 395 28 060.20 HEADSTRONG PHILIPPINES INC. 396 18 549.51 HEADSTRONG PHILIPPINES INC. 397 22 287.31 HEADSTRONG PHILIPPINES INC. 398 23 108.71 HEADSTRONG PHILIPPINES INC. 445 18 378.36 HEADSTRONG PHILIPPINES INC. 446 25 957.15 HEADSTRONG PHILIPPINES INC. 447 18 378.36 HEADSTRONG PHILIPPINES INC. 448 11 730.64 HEADSTRONG PHILIPPINES INC. 449 9 706.20 HEADSTRONG PHILIPPINES INC. 469 15 667.08 HEWLElT-PACKARD PHILIPPINES R1FI060172A 146 807.28 I-2 INDUSTRIES 10002015 79 164.00 MAXICARE HEALTHCARE CORP C017631080018 3 277.66 MAXICARE HEALTHCARE CORP C017631080021 715.02 PRIMOVER CONSULTANCY SERVICES 3546 2 628.57 REUTERS LIMITED 10-000198 139 441.61 REUTERS LIMITED PH01167-010 694.75 Serqio D. Gacias Jr D-0006 494.85 SGV & CO. ITR PREPARATION 2 160.00 SMART COMMUNICATIONS INC 13223408 472.42 TEAM ALLIED 538947 1 547.00 TEAM ALLIED 539439 7 893.85 Sub-total 3,527. 052.60 4 Domestic ourchases of goods other than caoital goods without suooortinq VAT invoice CHEO SYSTEMS INC. 1942 348 000.00 CHEO SYSTEMS INC. SOA 2010-22 1 653.12 CffiMEX INC. 28748 117 120.00 CONTRADE ENTERPRISES INC. 2 88 936.40 CONTRADE ENTERPRISES INC. 3 57 242.23 CONTRADE ENTERPRISES INC. 4 2 017.35 DATACRAFT PHILIPPINES INC. 7710006517/6402 436 189.00 ESCO Audio Visual Pte.Ltd. ESI29529 1 710.00 FACILITIES MANAGERS INC. 90564 300.64 FACILffiES MANAGERS INC. 90567 599.83 FUJI XEROX PHILIPPINES INC 336665 107.14 JJED PHILIPPINES INC 81420 1 682.37 MERCURY DRUG CORPORATION 28367550 1 659.70 MERCURY DRUG CORPORATION 28367951 1144.93 MERCURY DRUG CORPORATION 28367952 1 862.97 MERCURY DRUG CORPORATION 28367993 586.61 Paoertech Inc. 205694 8 775.00 Papertech Inc. 206934 19 504.26 Papertech Inc. 208983 4 834.27 5

AnnexA CTA Case No. 8443 Exhibit Input VAT Findings No. Invoice Number Amount Papertech Inc. 208984 514.29 PHILIPPINE VENDING CORPORATION 63560 9 477.38 PHILIPPINE VENDING CORPORATION 76117 3 507.05 PHILIPPINE VENDING CORPORATION 78371 9 959.91 QUARTZ BUSINESS PRODUCTS CORP 411203 980.36 RICH MARK TRADE DEVELOPMENT 30951 261.37 RICH MARK TRADE DEVELOPMENT 31057 262.45 SHELLSOFT TECHNOLOGY CORPORATION 3506 9 428.57 SKY COMPUTER AND OFFICE SUPPLIES 183879 349.93 SKY COMPUTER AND OFFICE SUPPLIES 184078 93.21 SKY COMPUTER AND OFFICE SUPPLIES 191579 2 421.43 SKY COMPUTER AND OFFICE SUPPLIES 191580 1 987.50 SKY COMPUTER AND OFFICE SUPPLIES 192005 85.71 SKY COMPUTER AND OFFICE SUPPLIES 194098 285.00 SKY COMPUTER AND OFFICE SUPPLIES 194543 2 046.86 Sub-total 1,13~586.84 5 Domestic purchases of capital goods not exceeding PlM supported by VAT invoices dated outside the period of claim ACCENT MICRO TECHNOLOGIES INC M-718 107223 804.43 ACCENT MICRO TECHNOLOGIES INC M-719 107431 1178.57 ACCENT MICRO TECHNOLOGIES INC M-720 107455 1 232.14 ACCENT MICRO TECHNOLOGIES INC M-721 107590 2 415.00 ACCENT MICRO TECHNOLOGIES INC M-722 107591 966.00 Sub-total 6,596.14 6 Domestic purchase of services supported bv VAT OR dated outside the period of claim ASCOTT MAKATI INC. M-741 330400011420 3 235.68 Sub-total 3,235.68 7 Overclaimed inout VAT on domestic purchases of service supported bv VAT OR AUTOHOME BUSINESS SOLUTIONS INC M-766 733 4 086.21 AUTOHOME BUSINESS SOLUTIONS INC M-767 734 3 494.12 BUSINESSWORKS INC. M-827 2642 4 591.83 BUSINESSWORKS INC. M-828 2643 7 755.10 CAREER MANAGEMENT CONSULTING M-833 153 2 630.73 CAREER MANAGEMENT CONSULTING M-834 154 1 545.82 CAREER MANAGEMENT CONSULTING M-835 156 1 786.80 CAREER MANAGEMENT CONSULTING M-836 157 2 208.00 CAREER MANAGEMENT CONSULTING M-837 158 1 772.64 DHL EXPRESS PHILS CORP M-992 D01451882 16 592.49 DHL EXPRESS PHILS CORP M-994 D01464220 3 082.93 DHL EXPRESS PHILS CORP M-995 D01469723A 702.44 DHL EXPRESS PHILS CORP M-998 D01472693A 436.00 FACILffiES MANAGERS INC. M-1138 90825 272.63 FUJI XEROX PHILIPPINES INC M-1165 144400 to 144402 2 406.27 FUJI XEROX PHILIPPINES INC M-1166 144536 to 144539 2 853.36 HOSPITALITY INTERNATIONAL INC M-1674 02-03/10 581.69 LEAVES & BRANCHES ENTERPRISES M-1810 5607 8 090.62 LEAVES & BRANCHES ENTERPRISES M-1811 5714 12 365.44 LEAVES & BRANCHES ENTERPRISES M-1812 5865 8 090.62 U SYNERGY INCORPORATED M-1813 419 160.57 6

AnnexA CTA Case No. 8443 Exhibit Input VAT Findings No. Invoice Number Amount U SYNERGY INCORPORATED M-1814 428 160.57 NO KA 01 (PHILS) INTL INC. M-1854 24661/24663 125.06 NO KA 01 (PHILS) INTL INC. M-1855 24662 50.22 NO KA 01 (PHILS) INTL INC. M-1857 24820 75.71 ORACLE PHILIPPINES CORP. M-1858 3013460/3013503/3013566 508.67 ORACLE PHILIPPINES CORP. M-1859 SOA 02.03.2010 2 097.82 VIVENTIS SEARCH ASIA INC. M-2242 2634 900.00 Sub-total 89,424.36 8 Inout VAT on services rendered bv non-residents without suooortina documents FIRST ADVANTAGE AUSTRALIA 48887 23 051.32 FIRST ADVANTAGE AUSTRALIA 48888 5 674.70 HDAP SINGAPORE PTE LTD HDAP/017/JAN 10 69 151.33 Sub-total 97,877.35 9 Input VAT on services supported by documents imprinted with the statement "This document is not a valid source of inout tax" PLDT M-1869 28754740 239.40 PLDT M-1870 20473026 239.40 PLDT M-1870 20861146 (691.31) PLDT M-1870 20025516 239.40 PLDT M-1870 30572330 (533.90) PLDT M-1870 16712142 239.40 PLDT M-1870 17272404 239.40 PLDT M-1870 22776257 239.40 PLDT M-1870 23390443 239 .40 PLDT M-1870 24354603 436.17 PLDT M-1870 25497762 239.40 PLDT M-1870 28754619 160.71 PLDT M-1870 28754651 239.40 PLDT M-1871 20861106 (181.85) PLDT M-1871 20025476 160.71 PLDT M-1871 17786932 160.71 PLDT M-1875 20473075 239.40 PLDT M-1875 23390444 239.40 PLDT M-1875 26965015 (333.85) PLDT M-1875 20025567 239.40 PLDT M-1877 20473074 239.40 PLDT M-1881 26070304 104.26 PLDT M-1881 25497738 239.40 PLDT M-1881 24354579 239 .40 PLDT M-1881 23958743 239.40 PLDT M-1881 19492037 239.40 PLDT M-1881 16189586 239.40 PLDT M-1884 24354585 43 261.60 PLDT M- 1885 28754739 (39.35) PLDT M-1885 26070328 239.40 PLDT M-1885 26965038 239.40 PLDT M-1885 27602758 239.40 PLDT M-1885 15823402 436.17 PLDT M-1885 16479824 239.40 7

AnnexA CTA Case No. 8443 Findings Exhibit Invoice Number Input VAT No. Amount PLDT 25497744 PLDT M-1887 26070310 188 340.22 PLDT M-1890 26070331 201 497.13 PLDT M-1892 28754742 PLDT M-1892 26965020 628.35 PLDT M-1894 28754724 (31.48) PLDT M-1895 26965026 PLDT M-1895 27602761 75 524.43 PLDT M-1897 28754727 (47.23) PLDT M-1901 29032067 239.40 PLDT M-1905 29363213 239.40 PLDT M-1908 29363241 239.40 PLDT M-1910 29363242 PLDT M-1911 29363243 19 980.00 PLDT M-1912 29363244 239.40 PLDT M-1913 29363247 239.40 PLDT M-1915 29363256 239.40 PLDT M-1916 29363260 239.40 PLDT M-1918 29363261 239.40 PLDT M-1919 29363263 160.71 PLDT M-1920 29363264 239.40 PLDT M-1921 29363265 239.40 PLDT M-1922 29363266 239.40 PLDT M-1923 29363269 239.40 PLDT M- 1924 29363273 239.40 PLDT M-1925 29363279 239.40 PLDT M-1926 29363283 239.40 PLDT M-1929 29363285 239.40 PLDT M-1930 29363286 160.71 PLDT M-1931 29363288 389.38 PLDT M-1932 29363291 PLDT M-1934 29363292 69 431.94 PLDT M-1935 29363293 239.40 PLDT M-1936 29363296 239.40 PLDT M-1937 29363298 239.40 PLDT M-1938 29363299 239.40 PLDT M-1939 29363302 239.40 PLDT M-1941 29363303 239.40 PLDT M-1942 29363304 160.71 PLDT M-1943 29363305 239.40 PLDT M- 1944 29363309 239.40 PLDT M-1945 29363311 239.40 PLDT M-1946 29363314 160.71 PLDT M-1948 29363315 160.71 PLDT M-1949 29363318 PLDT M- 1950 29363322 6 190.50 PLDT M-1951 29363323 217.68 PLDT M-1952 29363325 160.71 PLDT M-1953 29363326 239.40 M-1954 239.40 239.40 239.40 239.40 217.68 217.68 8

AnnexA CTA Case No. 8443 Findings Exhibit Invoice Number Input VAT No. Amount PLDT 29363327 PLDT M-1955 29363328 77 612.55 PLDT M-1956 29363330 239.40 PLDT M-1957 29363331 239.40 PLDT M-1958 29363332 239.40 PLDT M-1959 29363333 239.40 PLDT M-1960 29363334 239.40 PLDT M-1961 29363335 239.40 PLDT M-1962 29363336 239.40 PLDT M-1963 29363337 239.40 PLDT M-1964 29363338 239.40 PLDT M-1965 29363339 239.40 PLDT M-1966 29363340 239.40 PLDT M-1967 29363341 239.40 PLDT M-1968 29363342 239.40 PLDT M-1969 29363344 239.40 PLDT M-1970 29363349 239.40 PLDT M-1971 29958718 239.40 PLDT M-1973 29958720 428.59 PLDT M-1974 29958731 239.40 PLDT M-1975 29958748 160.71 PLDT M-1976 29958749 239.40 PLDT M-1977 29958750 239.40 PLDT M-1978 29958751 239.40 PLDT M-1979 29958752 239.40 PLDT M-1980 29958754 239.40 PLDT M-1981 29958763 160.71 PLDT M-1982 29958764 239.40 PLDT M-1983 29958767 239.40 PLDT M-1984 29958768 239.40 PLDT M-1985 29958770 239.40 PLDT M-1986 29958771 239.40 PLDT M-1987 29958772 239.40 PLDT M-1988 29958773 239.40 PLDT M-1989 29958776 239.40 PLDT M-1990 29958780 239.40 PLDT M-1991 29958786 160.71 PLDT M-1992 29958787 389.38 PLDT M-1993 29958788 389.38 PLDT M-1994 29958790 389.38 PLDT M-1995 29958792 PLDT M-1996 29958793 71 807.19 PLDT M-1997 29958795 239.40 PLDT M-1998 29958796 239.40 PLDT M-1999 29958798 239.40 PLDT M-2000 29958799 239.40 PLDT M-2001 29958800 239.40 PLDT M-2002 29958803 239.40 PLDT M-2003 29958805 239.40 M-2004 160.71 239.40 9

AnnexA CTA Case No. 8443 Findings Exhibit Invoice Number Input VAT No. Amount PLDT 29958806 PLDT M-2005 29958808 239.40 PLDT M-2006 29958809 239.40 PLDT M-2007 29958810 239.40 PLDT M-2008 29958811 160.71 PLDT M-2009 29958812 160.71 PLDT M-2010 29958816 6 123.84 PLDT M-2011 29958818 217.68 PLDT M-2012 29958820 160.71 PLDT M-2013 29958821 6 120.00 PLDT M-2014 29958825 239.40 PLDT M-2015 29958829 239.40 PLDT M-2016 29958830 239.40 PLDT M-2017 29958832 239.40 PLDT M-2018 29958833 217.68 PLDT M-2019 29958834 217.68 PLDT M-2020 29958835 79 450.92 PLDT M-2021 29958837 239.40 PLDT M-2022 29958838 239.40 PLDT M-2023 29958839 239.40 PLDT M-2024 29958840 239.40 PLDT M-2025 29958841 239.40 PLDT M-2026 29958842 239.40 PLDT M-2027 29958843 239.40 PLDT M-2028 29958844 239.40 PLDT M-2029 29958846 239.40 PLDT M-2030 29958847 239.40 PLDT M-2031 29958848 239.40 PLDT M-2032 29958849 239.40 PLDT M-2033 29958856 239.40 PLDT M-2034 30232176 239.40 PLDT M-2035 30572326 19 980.00 PLDT M-2036 30572327 368.59 PLDT M-2037 30572328 27 000.00 PLDT M-2038 30572341 24 480.00 PLDT M-2039 30572358 160.71 PLDT M-2040 30572359 239.40 PLDT M-2041 30572361 239.40 PLDT M-2042 30572362 239.40 PLDT M-2043 30572373 239.40 PLDT M-2044 30572377 239.40 PLDT M-2045 30572378 239.40 PLDT M-2046 30572380 239.40 PLDT M-2047 30572381 239.40 PLDT M-2048 30572382 239.40 PLDT M-2049 30572383 239.40 PLDT M-2050 30572386 239.40 PLDT M-2051 30572390 239.40 PLDT M-2052 30572397 160.71 M-2053 389.38 10

AnnexA CTA Case No. 8443 Findings Exhibit Invoice Number Input VAT No. Amount PLDT 30572398 PLDT M-2054 30572400 389.38 PLDT M-2055 30572403 74 611.44 PLDT M-2056 30572406 PLDT M-2057 30572408 239.40 PLDT M-2058 30572409 239.40 PLDT M-2059 30572410 239.40 PLDT M-2060 30572413 239.40 PLDT M-2061 30572415 239.40 PLDT M-2062 30572416 160.71 PLDT M-2063 30572418 239.40 PLDT M-2064 30572419 239.40 PLDT M-2065 30572420 239.40 PLDT M-2066 30572421 239.40 PLDT M-2067 30572426 160.71 PLDT M-2068 30572431 160.71 PLDT M-2069 30572435 217.68 PLDT M-2070 30572439 239.40 PLDT M-2071 30572440 239.40 PLDT M-2072 30572443 239.40 PLDT M-2073 30572444 239.40 PLDT M-2074 30572445 217.68 PLDT M-2075 30572447 99 300.53 PLDT M-2076 30572448 239.40 PLDT M-2077 30572449 239.40 PLDT M-2078 30572450 239.40 PLDT M-2079 30572451 239.40 PLDT M-2080 30572452 239.40 PLDT M-2081 30572454 239.40 PLDT M-2082 30572455 239.40 PLDT M-2083 30572456 239.40 PLDT M-2084 30572457 239.40 PLDT M-2085 30572458 239.40 PLDT M-2086 30572459 239.40 PLDT M-2087 30572461 239.40 PLDT M-2088 30572466 239.40 PLDT M-2089 31044868 239.40 M-2090 239.40 Sub-total 19 980.00 Grand Total 1,155. 076.88 11 556 290.62 11