PHIL. GOLD PROCESSING & REFINING CORP. v. COMMISSIONER OF INTERNAL REVENUE

.. Republi c of th e Philippines COURT OF TAX APPEALS Qu ezon City FIRST DIVISION PHIL. GOLD PROCESSING & REFINING CORP. CTA Case No. 8652 Petition er, For: Refund -v e r su s- Members : DEL ROSARIO, PJ, COMMISSIONER OF INTERNAL UY, and REVENUE, MINDARO-GRULLA, JJ. Respond ent. Promulgated : DECISION MINDARO - GRULLA, ]_.: Thi s is a Petition for Review fil ed by Phil. Gold Processing and Refining Corp. as petitioner, again st Commissioner of Internal Rev enue as respond ent for th e Court in Division, pursuant to Section 7(a)(2) of Republic Act (RA) No . 1125, An Act Creating th e Court of Tax Appeal s, as ame nded 1, as well as Rul e 4, Section 3(a)(2), in relation to Rule 8, Section 4 (a) of th e Revised Rules of the Court of Ta x Appeal s (RRCTA)2 , as amend ed. ~ Sec. 7. Jurisdiction . - T he CTA shal l exercise: (a) Exclu sive appell ate j urisdictio n to review by appeal, as here in provided: XXX XXX ( 2) Inaction by t he Comm issioner of I nte rnal Revenue in cases involving disputed assessmen ts, refund s or internal rev en ue taxes, fees of other charges, penalties in relation t hereto, or o ther matters arising u nder the Nationa l Interna l Revenue Code or othe r laws adm in istered by the Bureau of Intern al Revenu e, w here the Na tiona l Interna l Revenue Code provides a specific period for action, in wh ich case th e inaction sha ll be d ee m ed a denial ; XXX XXX ' Ru le 4, Sec. 3. Cases within the jurisdiction of th e Court in Division. - The Court in Division shal l exe rcise : (a) Exclusiv e origina l over or appell ate jurisdiction to rev iew by appeal the following: XXX XXX

�. Page 2 of 29 Phil. Go ld Processing & Refi ning Corp. vs. CI R CTA Case No. 8652 DECI S ION Petitioner seeks the refund or the issuance of a tax credit certificate (TCC) in the amount of Thirty-Five Million Five Hundred Thirty Thousand Two Hundred Seventy-Nine Pesos (~35,530,279.00) and Forty-On e Million Four Hundred Fourtee n Thousand Pesos and 64/100 (~41,414,000 . 64), allegedly representing its creditable input t axes for t he periods January 1, 2011 to March 31, 2011 and April 1, 2011 to June 30, 2011, respectively. Petition er Phil. Gold Processing and Refining Corp. is a domesti c corporation duly organized and existing und er and by virtue of the laws of th e Re public of th e Philippin es, principally engaged in the business of processing, mil ling, crushing, refining, smelting, and concentrating mineral resources. It was issued a Ce rtificate of Incorporation on December 27, 2004 by th e Securities and Exchange Commi ssion (SEC) und er its form er nam e, LFT Processi ng C (2) Inaction by the Commissio ner of Internal Revenue in cases invol vi ng disputed assessments, refunds of internal reve nu e taxes, fees or other charges, pena lties in relation t hereto, or other matte rs arising und er the Na tional Internal Revenue Code or other laws administered by the Bureau of I nternal Revenue, where the National Internal Revenue Code or other applica bl e la w provides a specific period for action: Provided, that in case of disputed assessm ents, the inaction of t he Commissio ner of Interna l Reve nue within the one hundred eighty day-period under Section 228 of the National Internal Revenue Code sha ll be deemed a denial for pu rposes of allowing the taxpayer to appea l hi s case to the Court and does not necessarily constitute a fo rmal decision of the Comm iss ioner of Interna l Revenue on the tax case; Provided, further, that should the taxpayer opt to await t he final decision of th e Commi ssioner of Internal Revenue on the disputed assessm ents beyond the one hundred eighty day- period abovemen tioned, t he ta xpayer may appea l such final decision to t he Co urt und er Section 3(a), Rule 8 of these Ru les; XXX XXX Rule 8. Sec. 4. Where to appeal; mode of appeal. - (a) An appeal from a decision or ru ling or the ina ction of the Commissioner of Interna l Revenue on disputed assessments or claim for refund of internal revenue taxes erroneously or illegally collected, the decision or ruling of the Commissioner of Customs, th e Secretary of F-ina nce, t he Secreta ry of T rade & Industry, the Secretary of Agriculture, and the Reg ional T r ial Court in the exercise of their orig inal jurisd iction, sha ll be taken to the Court by filing before it a petition for review as provided in Rule 4 2 of the Rules of Court. Th e Court in Division shall act on the appeal. XXX XXX

; Page 3 of 29 .. Ph il. Go ld Processing & Refini ng Corp. vs . CIR CTA Case No. 8652 DECISION Corporation. 3 Likewise, petitioner is registered with the Board of Investments4 (BOI) and with the Bureau of Internal Revenue (BIR) as a value -added taxpayer. 5 Respondent Commissioner of Internal Revenue is the public officer authorized under the National Internal Revenue Code (NIRC) of 1997, as amended, to examine any taxpayer, to assess the correct amount of internal revenue tax, and to act on claims for refund or tax credit . Petitioner filed through the Electronic Filing and Payment System ( eFPS) its Quarterly and Amended Quarterly VAT Returns for the 3rd and 4 th quarters of fiscal year ending June 30, 2011 on April 20, 20116, July 25, 20117, and July 29, 20118, respectively.9 On December 10, 2012, petitioner filed an Application for Input Tax Credit for the 3rd and 4 th quarters of fiscal year ending June 30, 2011 with the Tax and Revenue (VAT) Group under the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center of the Department of Finance (DOF-OSS) in the amounts of P35,530,279.00 and P41,414,000.64, 10 respectively. Meanwhile, on December 13, 2012, 11 petitioner completed the submission of the supporting documents to its claim and paid the corresponding filing fee. Petitioner also obtained its claim stubs from the DOF-OSS. Respondent failed to act on the said claims for refund or issuance of tax credit certificates, prompting petitioner to file the instant Petition for Review on May 10, 2013. ~ 3 Par . 1, Summary of Stipulat ed Facts, Joint Stipulation of Fact s and Issues (JS FI), Docket, p. 1021. '1 Par. 3, Su mmary of Sti pulated Facts, JSFI, Docket, p. 1022; Exh ibits "P-5". ~ Pars. 4 and 5, Summary of Stipulated Facts, JSFI, Docket, p. 1022; Ex hibit "P-4" . 6 Exh ibi t "P- 13". 1 Ex hibit "P- 14". 8 Exhibit "P- 15". 9 Par. 6, Summary of Stipulated Facts, JSFI, Docket, p . 1022. 10 Par. 7, Summ ary of Stipulated Facts, JSFI, Docket, p. 1022. 11 Exhibits "P- 9", " P- 9", and "P- 10".

�. Page 4 of 29 Ph il. Gold Processing & Refin ing Corp. vs. CIR CTA Case No. 8652 DEC I S IO N In her Answer filed on July 11, 2013, respondent raised the following Special and Affirmative Defenses12 : " SPECIAL AND AFFIRMATIVE DE FE NSES XXX XXX XXX 2 . Petitione r's claim for refund is still subject to investigation by the Bureau of Internal Reve nu e ; 3 . Petition er fail ed to demon strate that th e tax , which is the subj ect of thi s ca se , wa s erron eously or illegally collected; 4. Taxes paid and coll ected are presumed to be m ade in accordance with th e laws a nd regulation s, hence, not refundabl e; 5 . It is in cumbent upon the Petition er to show that it has complied with th e provi sion of Section 204(C) in relation to Section 2 29 of t he 1997 Tax Cod e, as a m end ed; 6. Petitioner's claim fo r refund or issua nce of t ax credit certifi cate in th e amount of Php 35 , 53 0 ,279 .00 and Php41,4 14, 000 .64 as a lleged excess and unutili zed input VAT paid on pu rcha ses of good s a nd services attributabl e to its ze ro - rat ed sal es for the 3rd Quarter and 4th Qua rter of f iscal y ea r ending June 2011 (or f or th e period Ja nu a ry 31, 2010 to Jun e 30, 2011) was not fully subst a nti at ed by proper docum ents, such as sa les invoices, official rece ipts and others. 7 . I n an acti on for tax credit or refund, th e burd en is upon th e taxpa yer to prove t hat he is ent it led th ereto, and fa ilure to di scharge th e sa id bu rde n is f ata l t o th e claim (Emmanuel & Zenaida Aguilar v. Commission er, CA-GR No. Sp. 16432, Mar ch 3 0, 1990 cit ed in Aban, Law of Basic Taxation in t he Philippin es, 15 L Edition, p. 206); { 17 Pars . 2 t o 8, Special Affirm at ive Defenses, Answer, Docket , pp . 833- 834.

�. Page 5 of 29 Phil. Gold Processi ng & Refi ning Corp . vs. CIR CTA Case No. 8652 DECISION 8. Claims for refund are construed strictly against the claimant, the same partake the nature of exemption from taxation (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA 95) and as such, they are looked upon with disfavor. (Western Minolco Corp. vs. Commissioner of Internal Revenue, 12 4 SCRA 121)." The Court issued a Notice of Pre-Trial Conference13 on July 23, 2013, and on August 22, 2013 and August 29, 2013, petitioner and respondent filed their respective Pre - Trial Briefs. 14 Thereafter, the parties filed their Joint Stipulation of Facts and Issues15 and Supplemental Joint Stipulation with Manifestation and Motion for the Petitioner16 on November 4, 2013 and on November 28, 2013, respectively . Subsequently, the Court issued the Pre -Trial Order on January 2, 2014. 17 During trial, petitioner presented witnesses Juanita Lilet A. Dato-Abuel 18 and Atty. Clifford E. Chua 19 . After completion of their testimonies, petitioner filed its Formal Offer of Evidence20 on January 30, 2014. Petitioner offered the following exhibits, to wit: Exhibit Description P- 1 Secretary's Certificate dated May 9, 2013 P-2 Articles of Incorporation of LFT Processing Corp. P-3 Articl es of I nco rporation of PGPRC P- 4 BIR Certificate of Registration of PGPRC OCN9RC0000108340 P- 4- A BIR Certificate of Registration of PGPRC OCN8RC000036156 P-5 BOI Certificate of Registration P- 5-A Certificate of Registration with BOI dated Feb ruary 7, 2008 P-5-B PGPRC's BOI-10 Certificate No . 7010-094 dated .J uly 19, 2010C 13 Docket, p. 836. 14 Docket, pp. 837- 854 and 856-858. 15 Docket, pp . 1021-1023. 16 Docket, pp. 1042- 1046 . 17 Docket, pp. 1072- 1077. 18 Minutes of the Hearing, Docket, pp . 1037-1038. 19 Minutes of the Hearing, Docket, pp. 1063- 1067. 70 Docket, pp. 1087- 1162.

�. Page 6 of 29 Phil. Gold Processing & Refining Corp. vs. CIR CTA Case No. 8652 DECISIO N P-5-C PGPRC's BOI-ID Certificate No. 2 011-A098 dated P-5-D July 21, 2011 P- 6 PGPRC's BOI-ID Certi ficate No. 2012-078 dated P- 7 July 17, 2012 P-8 BIR Form No. 1914 Application for Tax Refund & P- 9 Credit for the 3'd Quarter of Fisca l Year Jun e 2011 P-10 BIR Form No. 1914 App li cation for Tax Refund & P-11 Cred it for the 4th Quarter of Fisca l Year June 2011 P- 12 O.R. Receipt No. 0616927 P-13 Department of Finance Claim Stub for the 3rd P-14 Quarter of the Fisca l Year June 20 11 P- 15 Department of Finance Claim Stub for the 4th Quarter of the Fisca l Year June 2011 P-16 BIR Ruling No. DA (VAT-073) 4 35-2009 dated P- 17 August 3, 2009 P-18 Letter dated July 8, 2009 SGV & Co. P-19 BITR Form No. 2550-Quarterly VAT Return for P- 20 Third Quarter (Ja nu a ry to March 201 1) for the P- 21 Fiscal Year ending June 2011 P-22 Quarterly VAT Return for Fourth Quarter (April to P- 23 June 2011) for the Fiscal Year ending June 2011 P-24 Amended Quarterly VAT Return for Fo urth P- 24-1 Quarter (Apri l to June 2011) for the Fi sca l Year P- 25 ending June 2011 P- 26 Sched ule of Export Sa les for the Month of P-27 January 2011 P- 28 Schedul e of Expo rt Sa les for t he Mo nth of P- 29 February 2011 P-30 Schedul e of Export Sa les fo r th e Month of March P-3 1 2011 P- 32 Sched ule of Export Sales for the Month of April 2011 P- 33 Schedu le of Expo rt Sa les for the Month of May 2011 P-34 Schedu le of Export Sa les for the Month o f June 2011 Autho rity to Print Sa les Invoice Authority to Print Officia l Rece ipt Proof of I nwa rd Remittances ( HSBC Certi f ication) Proof of Inward Remittances ( HSBC Certi fication) Schedule of Importations for the Month of Jan uary 2 011 Schedule of Importations for the Month of February 201 1 Sched ule of Importations for the Month of Ma rch 2011 Sched ul e of Importations for the Month of April 2011 Sched ule of Importations for t he Month of May 2011 Sched ule of Importations for the Month of June 2011 BIR Form No . 1702 Annu a l Income Ta x Retu rn for the Fisca l Year ending June 2011 Certification dated October 25, 2012 issued by RDO No. 70, Revenue Reg ion 10, BIR (Jan uary 2011 to March 2011) Ce rtification dated October 25, 201 2 issued by RDO No. 70, Revenue Region 10, BIR (Apri l 2011 to June 2011) Ju d icia l Affidavit of Atty. Juanita Lil et Abu el (

Phil. Gold Processing & Refining Corp. vs. CIR Page 7 of 29 CTA Case No . 8652 DECISION P-34-A Signature of Atty. Juanita Lilet Abuel P- 35 SALES INVOICE NO. 0061 Standard Chartered PLC P-36 SALES INVOICE NO. 0062 Metalor Technologies SA P-37 SALES INVOICE NO. 0063 West LB AG P- 38 SALES INVOICE NO. 0064 BNP Paribas Bank P- 39 SALES INVOICE NO. 0065 Standard Chartered PLC P-40 SALCS INVOICE NO. 0066 West LB AG P-41 SALES INVOICE NO. 0067 BNP Paribas Bank P-42 SALES INVOICE NO. 0068 Standard Chartered PLC P-43 SALES INVOICE NO. 0069 West LB AG P-44 SALES INVOICE NO. 0070 BNP Paribas Bank P- 45 SALES INVOICE NO. 0071 Standard Chartered PLC P-46 SALES INVOICE NO. 0072 West LB AG P- 47 S/\L[S INVOICE NO . 0073 BNP Paribas Bank P-48 SAl FS INVOICE NO. 0074 Standard Chartered PLC P- 49 S/\LC S INVOICE NO. 0075 Meta lor Technologies P- 50 SA P-51 SALES INVOICE NO. 0076 West LB AG P-5 2 SALES INVOICE NO. 0077 BNP Paribas Bank SALES INVOICE NO. 0078 Standa rd Chartered P-53 PLC SALES INVOICE NO. 0079 Metalor Technologies P- 54 SA P-55 SALCS INVOICE NO. 0080 West LB AG P- 56 SALES INVOICE NO. 0081 BNP Paribas Bank P- 5 7 Export Declaration No. E- 2010- 334 P- 58 Export Declaration No. E- 2010- 339 P- 59 Export Declaration No. E-2 011-001 P- 60 Export Declaration No. E- 2011 - 009 P-61 Export Declaration No. E- 2011 - 074 P- 62 Export Declaration No. E-2 011-011 P-63 Export Declaration No. E- 2011 - 013 P-64 Export Declaration No. E- 2 011-016 P- 65 Export Declaration No. E- 2 011-0 20 P-66 Export Declaration No. E- 2011 - 024 P- 67 Export Declaration No. E-2011-026 P- 68 Export Declaration No. E- 2011 - 041 P-69 Cxport Declaration No. E- 2011 - 044 P- 7 0 Export Declaration No. E- 2 011-046 P- 7 1 Export Declaration No. E- 2011 - 052 P-72 Expo rt Declaration No. E- 2011 - 057 P- 73 Export Declaration No. E-2011 - 059 P-74 Export Declaration No. E- 2011 - 061 P-75 Export Declaration No. E-2011-064 P- 76 Export Declaration No. E-2011-065 P-77 Export Declaration No. E- 2011 - 080 P- 78 Export Declaration No. E-2011 -082 P- 79 Export Declaration No. E-2011-085 P- 8 0 Export Declaration No. E- 2011 - 089 P- 81 Export Declaration No. E-2011-094 P- 82 Export Declaration No. E- 2011 - 099 P-83 Inv. No . 10 051 P- 84 Inv. No. 10-052 P- 85 Inv. No . 001 11 Inv. No. 00 / - 11 (

Phil. Gold Processi ng & Refining Corp. vs. CIR Page 8 of 29 CTA Case No. 8652 DECISION P-86 Inv. No. 018-11 P- 87 Inv. No. 003- 11 P-88 Inv. No . 004-11 P-89 Inv. No. 005-11 P- 90 Inv. No. 006- 11 P-91 Inv. No. 007-11 P- 92 Inv. No. 008- 11 P- 93 Inv. No. 009- 11 P-94 Inv. No . 010-11 P- 95 Inv. No . 011 11 P- 96 Inv. No. 012- 11 P-97 Inv. No. 013-11 P- 98 Inv. No. 014 - 11 P-99 Inv. No. 015-11 P-100 Inv. No. 016-11 P- 101 Inv. No. 017- 11 P-102 Inv. No. 019-11 P-103 Inv. No. 020-11 P- 104 Inv. No. 021 11 P-105 Inv. No. 022-11 P- 106 Inv. No. 023- 11 P- 107 Inv. No. 024 - 11 P-108 Transport Permit No. MPP-V-076-2010 P- 109 T ran sport Permit No. MPP- V- 0 77- 2010 P-110 Transport Permit No. MPP-V-078-2011 P-111 Transport Permit No. MPP-V-079-2011 P- 112 Transport Permit No. MPP-V - 095- 2011 P-113 Transport Pe rmit No. MP P-V-080-2011 P-114 Transport Pe rmit No. MP P-V-081-2011 P- 11 5 Transport Permit No. MPP- V- 082 - 2011 P-116 Transport Permit No. MPP-V-083- 2 011 P- 117 Transport Permit No. MPP- V- 084 - 2011 P- 118 Transport Permit No. MPP- V- 085- 2011 P-119 Transport Permit No. MPP-V-086-2011 P- 120 Transport Permit No. MPP- V- 087- 2011 P- 121 Transport Permit No. MPP-V - 088- 2011 P-12/ Transport Permit No. MPP-V-089- 2 011 P- 123 Transport Permit No. MPP-V- 090- 2011 P-124 Transport Permit No. MPP-V-091-2011 P-125 Transport Permit No. MPP-V- 092- 2011 P- 126 T ran sport Permit No. MPP- V- 093- 2011 P-127 Transport Permit No. MPP-V-094-2011 P- 128 T ran sport Permit No. MPP- V- 096- 2011 P- 129 Transport Permit No. MPP- V- 097- 2011 P-130 Transport Permit No. MPP-V-098-2011 P- 131 T ransport Permit No. MPP- V- 099- 2011 P- 132 Tra nsport Permit No. MPP- V- 100- 2011 P-133 Transport Permit No. MPP-V-101-2011 P- 134 Airway Bill No. 1485- 9460 P-135 Airway Bill No. 1485-9541 P-136 Airway Bill No. 1485-9810 P- 137 Airway Bill No. 1485- 9784 P- 138 Airway Bill No. 1534-2132 P- 139 Airway Bill No. 1500-7016 P- 140 Airway Bill No. 1500-707 5 P-141 Airway Bill No. 1500- 7241 P- 1'1 2 Airway Bill No . 1500- 7215 P- 143 Airway Bill No. 1500- 7 543 P-144 Airway Bill No. 1500-7705 P- 145 Airway 13ill No. 1500- 7871 P-146 Airway Bill No. 1513-3101 {.

Phil. Gold Processing & Refining Corp. vs. CIR Page 9 of 29 CTA Case No. 8652 DECISION P-147 Airway Bill No. 1513-3053 P- 148 Airway Bill No. 1513-3484 P-149 Airway Bill No. 1513-3495 P-150 Airway Bill No. 1513-3392 P- 151 Airway Bill No. 1513-3860 P-152 Airway Bil l No. 1513-3904 P- 153 Airway Bill No. 1534-2165 P- 154 /\irway 13ill No. 1534 - 2412 P-155 Airway Bill No. 1534-2364 P- 156 /\irway Bill No . 1534- 2876 P- 157 Airway Bill No. 1534- 2806 P-158 Airway Bill No. 1559-1030 P- 159 Airway Bill No. 1559- 1273 P-160 Audited Financial Statements P-161 Amended 4th Quarter VAT Return for the Fisca l Year ending June 2011 P-162 IEIRD C-206874 SCHENK PROCESS AUSTRALIA PTY LTD P- 163 IEIRD C 206208 GEA BLOKSMA B V P-164 IEIRD C-206607 NSL CHEMICALS MALAYSIA SDN 1311 1) P- 165 ICIRD C- 111180 SOLVAY PEROXYTHAI LIMITED P-166 IFIRD C-110687 TAPECASE LTD P- 167 IEIRD C- 111707 METALOR TECH NOLOGIES SA P-168 IEIRD C- 149 METSO MINERALS WEAR PROTECTION PTY LTD P- 169 IEIRD C- 1424 SPX PROCESS EQUIPMENT P-170 IEIRD C-1940 WEIR MINERALS P-171 IEIRD C-1983 WEIR MINERALS P- 172 IEIRD C- 1007 UPU SKAFF IlK INTERNATIONAL CO LTD P- 173 IEIRD C 2417 PANGANG GROUP INTERNATIONAL P- 174 IEIRD C- 1596 TAIWAN PURCHASING CO LTD P-17 5 IFIRD C- 3605 SYKES GROUP P- 176 I EIRD C- 5414 PT JEMBO CABLE COMPANY TBK P- 177 IEIRD C 5340 l ONGSUH PETROCHEMICAL CORP LTD P- 178 IEIRD C- 5323 PANGANG GROUP INTERNATIONAL P-179 IEIRD C-7769 SC HENK PROCESS AUSTRALIA PTY LTD P- 180 P-181 IEIRD C 6530 YOONSTEEL MALAYSIA SON BHD P- 182 IEIRD C-5879 VOITH TURBO PTE LTD ICIRD C- 10506 BEIJING SINO GRINDING P-183 INTERNATIONAL PTY LTD IEIRD C-9665 HANDAN ZHONGYAN CHEMICAL P- 184 CO LTD II:IRD C- 12/59 METSO MINERALS AUSTRALIA P- 185 LTD P-186 IEIRD C- 12207 THERMAL TR/\NSFER PRODUCTS P- 187 IEIRD C-14295 SELECTED INDUSTRIAL GROUP LIMITED P- 188 IE::IRD C- 14366 BEIJING SINO GRINDING INTERNATIONAL PTY LTD P-1?9 IEIRD C- 14339 BEIJING SINO GRINDING P- 190 IN rCRNATIONAL PTY LTD P- 191 IEIRD C-11459 METSO MINERALS OY DC EUROPE P-192 ICIRD C 1711/ RAND V AUSTR/\LI/\ PTY LTD P- 193 IEIRD C- 16867 ADVANCED PURCHASING LTD IEIRD C- 1242 7 ESC PALL EUROPE CORP IEIRD C 18025 BEIJING SI NO GRI NDING INTERNATIO NAL(

Phil. Gold Processing & Refining Corp. vs. CIR Page 10 of 29 CTA Case No. 8652 DECISION P-194 IEIRD C-13232 FLSMIDTH KREBS IN C P- 195 IEIRD C- 13198 METSO MINERALS AUSTRALIA PTY LTD P-196 IEIRD C- 13813 SCHEN CK PROCESS AUSTRALIA PTY LTD P-197 IEIRD C-14251 LUDOWICI AUSTRALIA P- 198 IEIRD C- 20899 PT JEMBO CABLE COMPANY TBK P- 199 IEIRD C- 13534 ELASTOMERS AUSTRALIA PTY LTD P- 200 IEIRD C- 23329 TONGSUH PETROCHEMICAL P- 201 IEIRD C- 22716 INDO GERMAN CARBO N LTD P-202 IEIRD C-16818 METSO MINERALS OY DC EUROPE P- 203 IEIRD C- 16571 RCR ENGINEERING P-204 IEIRD C-25254 ADVANCED PURCHASING SERVICES P- 205 IEIRD C- 31465 TONGSUH PETROCHEMICAL CORP P-206 IEIRD C-33450 NSL CHEMICALS MALAYSIA SD N BHD P- 207 IEIRD C- 34257 METSO MINERALS PTY LTD P-208 IEIRD C-35341 SCHE NCK PROCESS AUSTRALIA PTY LTD P- 209 IEIRD C- 29896 REQUIP SUPPLIES LTD P-210 IEIRD C-35399 NSL CHEMICALS MALAYSIA SDN BHD P-211 IEIRD C-34579 FLSMIDTH KREBS P- 2 12 I EIRD C-28693 METSO MINERALS OY DC EUROPE P- 213 IEIRD C- 39153 LOYTECH PTY LTD P-214 IEIRD C-39856 CRUSHIN G AND MINING EQ UIPMENT P- 215 IEIRD C- 33346 BATA SHOE COMPANY P-216 IEIRD C-43211 HANDAN ZHONGYAN CHEMICAL P- 217 co P-218 P- 219 IEIRD C- 42916 SOLVAY PEROXYTHAI LTD P- 220 IEIRD C-4393 2 METSO MINERALS FRANCE SA P-221 IEIRD C- 43962 METSO MINERALS FRANCE SA P- 222 IEIRD C- 34552 BATA SHOE COMPANY P-223 IEIRD C-45887 WEIR MINERALS P-224 IEIRD C- 33300 BRAECO SALES P- 225 IEIRD C-36499 METSO MINERALS OY IEIRD C- 37076 FL SMIDTH SHAN GHAI LTD P- 226 IEIRD C-32804 ADVANCED PURCHASING P- 227 SERVICES IEIRD C- 32876 RCR ENGINEERING P- 228 I EIRD C- 32 786 ELASTOMET ER AUSTRALIA PTY P- 229 LTD P- 2 30 P- 231 IEIRD C- 50362 TONGS UH PETROCHEMICAL CORP P-232 IEIRD C- 36136 FL SMIDTH SHANGHAI LTD IEIRD C-50987 SOLVAY PEROXYTHAI LIMITED P- 233 IEIRD C- 40105 METALOR T ECH NOLOG I ES SA P- 2 34 IEIRD C-52141 SC HECK PROCESS AUSTRALIA P-23 5 PTY P- 236 IEIRD C- 5 234 3 W EIR MINERAL P- 23 7 IEIRD C-41 277 METSO MINERAL OY P- 23 8 IEIRD C- 38419 LUDOWICI AU STRALIA PTY LIMIT IEIRD C- 41451 ANSAC PTY LTD P- 23 9 IEIRD C-50063 RCR EN GINEERING IEIRD C- 4 1533 SCHEN CK PROCESS AUSTRALIA P- 240 PTY LIMIT IEIRD C-41 59 3 ADVANCED PURCHASING SE RVICES IEIRD C- 3 6184 AUSSIE DIS POSALS C.

Phil. Gold Processing & Refining Corp. vs. CIR Page 11 of 29 CTA Case No. 8652 DECISION P-241 IEIRD C-56719 ERIEZ MAGNETICS SHANGHAI LT D P-242 IEIRD C-4 2 550 METSO MINERALS WEAR PROTECTION P- 243 IEIRD C-44743 METSO MINERALS OY P-244 IEIRD C-59077 RCR ENGINEERING P- 245 IEIRD C-46099 R AND V AUSTRALIA PTY LTD P- 246 IEIRD C- 59645 SEW EURODRIVE PTY LTD P- 247 IEIRD C-61428 METSO MINERALS INDIA PTY LTD P- 248 IEIRD C-45703 LUDOWICI AUSTRALIA P- 249 IEIRD C-4 7 122 TEGA INDUSTRIES LTD P-250 IEIRD C-47428 TEGA INDUSTRIES LTD P- 251 IEIRD C- 63492 METSO MINERALS WEAR PROTECTION P- 2 52 IEIRD C-63484 TONGSUH PETROCHEMICAL CORP LTD P- 253 IEIRD C-45814 SCHENCK PROCESS AUSTRALIA PTY LTD P- 254 IEIRD C-47405 WEIR MINERALS P- 2 55 IEIRD C-66247 NSL CHEMICAL MALAYSIA SDN BHD P- 256 I EIRD C- 64487 WEIR MINERALS P- 2 57 IEIRD C-67 094 TYCO PUMPING SYSTEMS P- 258 I EIRD C- 67 935 SEW UERODRIVE PTE LTD P- 2 59 IEIRD C-49860 THERMOFISH ER SCIENTIFIC P- 2 6 0 IEIRD C-50074 SULZER PUMPS ASIA PACIFIC PTE LT D P- 2 6 1 IEIRD C-4945 2 NETZSCH LAN Z HOU PUMPS CO LTD P- 262 I EIRD C- 697 04 ADVANCED PURCHASING SE RVICES P- 26 3 IEIRD C- 4 74 74 WEIR MIN ERALS P- 264 IEIRD C- 51 7 19 W EIR MIN ERALS P- 2 6 5 IEIRD C-5 200 5 METSO MINERALS OY P- 266 IEIRD C- 5201 3 AUSTMAIL WORLDWID E EXPRESS P- 2 6 7 IEIRD C- 7117 9 SOLVAY PEROXYTHAI LT D P- 2 68 IEIRD C- 71889 BEIJING SINO GRINDING INTERNATIONAL P- 2 69 IEIRD C- 76419 METSO MIN ERALS AUSTRALIA LTD P- 2 7 0 IEIRD C- 52266 METSO MINERALS T IANJIN INTERNATIONAL P- 2 7 1 IEIRD C- 54542 INTERNORMEN TECHNOLOGY INC P- 2 7 2 IEIRD C- 7 3961 SOLVAY PEROXYTHAI LTD P- 273 IEIRD C-5 5738 MULTOTEC PTY LTD P- 27 4 IEIRD C-7 1276 ADVANCED PURCHASING SERVICES P-27 5 IEIRD C- 75914 NSLCHEMICALS MALAYSIA SDN BHD P- 276 P-277 IEIRD C-76958 MCQUAID ENGINEERING LTD P- 278 IEIRD C-77048 DEPENDABLE GLOBAL EXPRESS P- 279 I EIRD C- 57983 METALOR T EC HNOLOGIES SA P- 280 IEIRD C- 58 184 RAND V AU STRALIA PTY LTD P- 28 1 IEIRD C- 79443 TONGSUH PETRO CHEMICALS P- 282 IEIRD C- 7939 9 INDO G ERMAN CARBONS LTD P- 283 I EIRD C- 8 1147 CS E UNISERVE PTY LTD P- 284 I EIRD C- 811 35 RCR ENGINEE RING P- 28 5 I EIRD C- 8 22 54 SOLVAY PEROXYTHAI LTD P- 28 6 I EIRD C-5 9 563 FL SMIDTH KREBS P-287 I EIRD C- 61 801 BATA SHOE COMPANY IEIRD C- 8 9 0 METSO MINERAL INC (

Phil. Gold Processing & Refining Corp. vs. CIR Page 12 of 29 CTA Case No . 8652 DECISION P-288 IEIRD C-62749 METSO MINERAY OY P- 289 I EIRD C- 86185 METSO MINERAL WEAR P-290 PROTE CT I O N IEIRD C-60828 SHAN GHAI JF MACHINERY CO P-291 LT D P- 292 IEIRD C-87339 ACT PRODUCING TRADING SERVICES P- 293 IEIRD C- 86464 TECO ELECTRIC AND MACHINERY P- 294 CO LTD IEIRD C- 62290 URAS TECHNO CO LTD P- 295 I EIRD C-88775 MINPRO MINING AND ENGINEERING P-296 IEIRD C- 90828 NSLCHEMICALS MALAYSIA SDN P- 297 BHD IEIRD C-66506 RCR MINI NG PTY LTD P-298 I EIRC C- 66821 ADVANCED PURCHASING P- 299 SERVICES IEIRD C-66346 LUDOWICI AUSTRALIA PTY LTD P- 300 I EIRD C- 66354 METSO MIN ERAL WEAR PROTECTION P-301 IEIRD C- 92630 FUJIAN PROVIN CE FA NG CHENG P- 302 TRADE CO P-303 IEIRD C-66359 NETZSCH LANZHOU PUMPS CO P-304 IEIRD C- 43362 FLSMIDTH KREBS P- 305 IEIRD C-65919 TH ERMO FISHER SCIE NTIFIC IEIRD C-93301 LUOYANG GUORU N PIPES CO LTD P-3 06 IEIRD C- 9366 1 TO NGSU N PETROCHEMICAL CORP LTD P-307 I EIRD C-93220 SCHENCK PROCESS AUSTRALIA PTY LTD P- 308 IEIRD C-94113 METSO MINERALS WEAR P-309 PROTECTIO N IEIRD C- 94903 SO LVAY PEROXYTHAI LT D P- 310 I EIRD C-95912 ACT PRODUCING TRADING P-311 SERVICES P- 312 IEIRD C-7 1117 WEIR MINERALS P-313 IEIRD C-95986 SOLVAY PEROXYTHAI LTD P-314 IEIRD C- 7 0193 THERMO FISHER SCIE NTI FIC P- 315 IEIRD C-72109 METSO MINERAL OYTAMPERREN P-3 16 IEIRD C-99461 METSO MINERAL INDIA PVT LTD I EIRD C- 58917 TAIWAN PURCHASING CO LTD P- 317 IEIRD C-81142 ADVANCED PURCHASING P-162-A SERVICES IEIRD C- 63187 METSO MIN ERAL INDIA LTD P- 163-A Statement of Settlement of Duties and Taxes bearing Official Rece ipt 52 P- 164 - A Sta tement of Settleme nt of Duties and Taxes bearing Official Receipt 53 P-165-A Statement of Settlement of Duties and Taxes bearing Official Receipt 61 P-166-A Sta t ement of Settlement of Duties and Taxes bea ring Officia l Receipt 108 P- 167 -A Statement of Settlement of Duties and Taxes bearing Official Receipt 163 P- 168- A Sta teme nt of Settleme nt of Duties and Taxes bea ring Officia l Receipt 76 1 P-169-A Statem ent of Settlem ent of Duties and Taxes bearing Official Receipt 758 Statement of Settl em ent of Duti es and Taxes bea ring Officia l Rece ipt 3039 4..

Phil. Go ld Processing & Refining Corp. vs. CIR Page 13 of 29 CTA Case No. 8652 DECISIO N P-170-A Statement of Settlement of Duties and Taxes P-171-A bearing Official Receipt 3048 P- 172- A P- 173 A Statement of Settlement of Duties and Taxes P-174-A bearing Official Receipt 3052 P- 175- A P- 176- /\ Statement of Settlement of Duties and Taxes P-177-A bea ring Official Receipt 3076 P-178-A Statement of Settlement of Duties and Taxes P- 179- /\ bearing Official Receipt 4208 P- 180- /\ Statement of Settlement of Duties and Taxes P-181-A bearing Official Receipt 4229 P-182-A P- 183- A Statement of Settlement of Duties and Taxes P-184-A bearing Official Receipt 4582 P-185-A Statement of Sett lement of Duties and Taxes P- 186- A bearing Official Receipt 7628 P- 187 - /\ P-188-A Statement of Settlement of Duties and Taxes P-189-A bearing Official Receipt 7581 P 190 A Statement of Settlement of Duties and Taxes P- 191 - /\ bea ring Official Receipt 7582 P-192-A P- 193 1\ Statement of Settlement of Duties and Taxes P- 194-A bearing Official Receipt 10861 P-195-A P-196-A Stat ement of Settlement of Duties and Taxes p 197-/\ bearing Official Receipt 9010 P- 198-A Statement of Settlement of Duties and Taxes P-199-A bearing Official Receipt 8253 Statement of Settlement of Duties and Taxes bearing Official Receipt 12819 Statement of Settlement of Duties and Taxes bearing Official Receipt 141 22 Statement of Settlement of Duties and Taxes bearing Official Receipt 14491 Statement of Settlement of Duties and Taxes bearing Officia l Receipt 15657 Statement of Settlement of Duties and Taxes bearing Official Receipt 16764 Statement of Settlement of Duties and Taxes bearing Official Receipt 16765 Statement of Settlement of Duties and Taxes bearing Official Receipt 16766 Statement of Settlement of Duties and Taxes bearing Official Receipt 12261 Statement of Settlement of Duties and Taxes bearing Official Receipt 19494 Statement of Settlement of Duties and Taxes bearing Official Receipt 19493 Statement of Settlement of Duties and Taxes bearing Official Receipt 13590 Statement of Settlement of Duties and Taxes bearing Official Receipt 20691 Statement of Settlement of Duties and Taxes bearing Official Receipt 14559 Statement of Settlement of Duties and Taxes bearing Officia l Receipt 14568 Statement of Settlement of Duties and Taxes bearing Official Receipt 15612 Statement of Settlement of Duties and Taxes bearing Official Receipt 15611 Statement of Settlement of Duties and Taxes bearing Official Receipt 24021 Statement of Settlement of Duties and Taxes bearing Official Receipt 16759 ~

Phil. Gold Processing & Refining Corp. vs. CIR Page 14 of 29 CTA Case No. 8652 DECISION P-200-A Statement of Settlement of Duties and Taxes P-201-A bearing Official Receipt 26030 P- 202 - A Statement of Settlement of Duties and Taxes P- 203 - A bearing Official Receipt 26715 P-204-A P- 205 - A Statement of Settlement of Duties and Taxes P- 206 A bearing Official Receipt 18569 P-207-A P- 2 08-A Statement of Settlement of Duties and Taxes P- 209 -A bearing Official Receipt 18570 P- 210 - /\ Statement of Settlement of Duties and Taxes P- 2 11 - A bearing Official Receipt 28008 P- 2 12- A P- 213 A Statement of Settlement of Duties and Taxes P-2 14-A bearing Official Receipt 36767 P- 2 15-A P- 216- A Statement of Settlement of Duties and Taxes P- 217- A bearing Official Receipt 37396 P- 2 18-A P-2 19-A Statement of Settlement of Duties and Taxes P- 220- A bearing Official Receipt 38983 P- 221 -A Statement of Settlement of Duties and Taxes P-222- A bearing Official Receipt 40235 P- 223 -A P- 224 - A Statement of Settlement of Duties and Taxes P-225- A bearing Official Receipt 32359 P-226-A Statement of Settlement of Duties and Taxes P- 227 -A bearing Official Receipt 44201 P- 228-A Statement of Settlement of Duties and Taxes P- 229-A bearing Official Receipt 37788 Statement of Settlement of Duties and Taxes bearing Official Receipt 33962 Statement of Settlement of Duties and Taxes bearing Official Receipt 47648 Statement of Settlement of Duties and Taxes bearing Official Receipt 47644 Statement of Settlement of Duties and Taxes bearing Official Receipt 35521 Statement of Settlement of Duties and Taxes bearing Official Receipt 49228 Statement of Settlement of Duties and Taxes bearing Official Receipt 49229 Statement of Settlement of Duties and Taxes bearing Official Receipt 50332 Statement of Settlement of Duties and Taxes bearing Official Receipt 50333 Statement of Settlement of Duties and Taxes bearing Official Receipt 37787 Statement of Settlement of Duties and Taxes bearing Official Receipt 51774 Statement of Settlement of Duties and Taxes bearing Official Receipt 38698 Statement of Settlement of Duties and Taxes bearing Official Rece ipt 39476 Statement of Settlement of Duties and Taxes bearing Official Receipt 39474 Statement of Settlement of Duties and Taxes bearing Official Recei pt419 59 Statem ent of Settlem ent of Duties and Taxes bearing Official Receipt 41956 Statem ent of Settlement of Duties and Taxes bearing Official Receipt 41954 Statem ent of Settlement of Duties and Taxes bearing Official Receipt 57861 Sta temen t of Settlement of Duties and Taxes bearing Official Receipt 42755 t.

Phil. Gold Processing & Refining Corp. vs. CIR Page 15 of 29 CTA Case No. 8652 DECISION P-230-A Statement of Settlement of Duties and Taxes P-231-A bearing Official Receipt 58627 P- 232- A Statement of Settlement of Duties and Taxes P- 233-A bearing Official Receipt 43499 P-234-A Statement of Settlement of Duties and Taxes P- 235- A bearing Official Receipt 60017 P- 236-A Statement of Settlement of Duties and Taxes P-237-A bearing Official Receipt 60018 P-238-A Statement of Settlement of Duties and Taxes P- 239- A bearing Official Receipt 45303 P- 240- A Statement of Settlement of Duties and Taxes P-241-A bearing Official Receipt 45304 P-242-A Statement of Settlement of Duties and Taxes P- 243 - A bearing Official Receipt 45299 P-244-A P-245-A Statement of Settlement of Duties and Taxes P- 246- A bearing Official Receipt 62825 P- 247 - A Statement of Settlement of Duties and Taxes P-248-A bearing Official Receipt 45302 P-249-A Statement of Settlement of Duties and Taxes P- 250- A bearing Official Receipt 45301 P- 251 - A P-252-A Statement of Settlement of Duties and Taxes P- 253 - A bearing Official Receipt 45781 P- 254- A Statement of Settlement of Duties and Taxes P-755-A bearing Official Receipt 63511 P-256-A P 257-A Statement of Settlement of Duties and Taxes p 258-/\ bearing Official Receipt 53392 P-759-A Statement of Settlement of Duties and Taxes bearing Official Receipt 48871 Statement of Settlement of Duties and Taxes bearing Official Receipt 68585 Statement of Settlement of Duties and Taxes bearing Official Receipt 50289 Statement of Settlement of Duties and Taxes bearing Official Receipt 70994 Statement of Settlement of Duties and Taxes bearing Official Receipt 70971 Statement of Settlement of Duties and Taxes bearing Official Receipt 51065 Statement of Settlement of Duties and Taxes bearing Official Receipt 51064 Statement of Settlement of Duties and Taxes bearing Official Receipt 51089 Statement of Settlement of Duties and Taxes bearing Official Receipt 72165 Statement of Settlement of Duties and Taxes bearing Official Receipt 72163 Statement of Settlement of Duties and Taxes bearing Official Receipt 56463 Statement of Settlement of Duties and Taxes bearing Official Receipt 51088 Statement of Settlement of Duties and Taxes bearing Official Receipt 74830 Statement of Settlement of Duties and Taxes bearing Official Receipt 74815 Statement of Settlement of Duties and Taxes bearing Official Receipt 76642 Statement of Settlement of Duties and Taxes bearing Official Receipt 76644 Statement of Settlement of Duties and Taxes bearing Official Receipt 53813 .("

Phil. Go ld Processing & Refining Corp. vs. CIR Page 16 of 29 CT/\ Case No. 8652 DECISION P-260-A Statement of Settlement of Duties and Taxes P-261-A bearing Official Receipt 53816 P- 262 1\ Statement of Settlement of Duties and Taxes P- 263- /\ bearing Official Receipt 53809 P-264-A P- 265- A Stat ement of Settlement of Duties and Taxes P- 266- A bearing Official Receipt 78655 P-267-A P-268-A Stat ement of Settlement of Duties and Taxes P- 269 -/\ bearing Official Receipt 54986 P- 270 - /\ P-271 -A Statement of Settlement of Duties and Taxes P-272-A bearing Official Receipt 56439 P- 273 -A P-274-A Statement of Settlement of Duties and Taxes P- 275-A bearing Official Receipt 56430 P- 276-A Statement of Settlement of Duties and Taxes P- 277-A bearing Official Receipt 56428 P- 278-A Statement of Settlement of Duties and Taxes P-279-A bearing Official Receipt 80699 P- 280-A Statement of Settlement of Duties and Taxes P- 281 - /\ bearing Official Receipt 80681 P- 282-A P- 283-A Statement of Settlement of Duties and Taxes P- 284- /\ bearing Officia l Receipt 84764 P-28~ -A Statement of Settlement of Duties and Taxes bearing Official Receipt 65792 P- 286-A Statement of Settlement of Duties and Taxes P- 287- A bearing Official Receipt 59024 P- 288- /\ P-289-A Statement of Settlement of Duties and Taxes bearing Official Receipt 84765 Statement of Settlement of Duties and Taxes bearing Official Receipt 59879 Statement of Settlement of Duties and Taxes bearing Official Receipt 85763 Statement of Settlement of Duties and Taxes bearing Official Receipt 88442 Statement of Settlement of Duties and Taxes bearing Official Receipt 88169 Statement of Settlement of Dut ies and Taxes bearing Official Receipt 88343 Statement of Settlement of Duties and Taxes bearing Official Receipt 61661 Statement of Settlement of Duties and Taxes bearing Official Receipt 61924 Statement of Settlement of Duties and Taxes bearing Official Rece ipt 88782 Statement of Settlement of Duties and Taxes bearing Official Rece ipt 90639 Statement of Settlement of Duties and Taxes bearing Official Receipt 91251 Statement of Settlement of Duties and Taxes beari ng Official Receipt 92491 Statement of Settlement of Duties and Taxes bearing Official Rece ipt 92488 Statement of Settlement of Duties and Taxes bearing Officia l Rece ipt 64919 Statement of Settlement of Duties and Taxes bearing Official Receipt 65839 Statement of Settl ement of Duties and Taxes bearing Official Receipt 991 Statement of Settlem ent of Duties and Taxes bearing Official Receipt 67557 Statement of Settlement of Duties and Taxes bearing Official Receipt 96989 ~

Phil. Gold Processing & Refining Corp. vs. CIR Page 17 of 29 CTA Case No. 8652 DECISION P-290-A Statement of Settlement of Duties and Taxes P-291-A bearing Official Receipt 76310 P- 292- A Statement of Settlement of Duties and Taxes P- 293 - /\ bearing Official Receipt 98945 P-294-A Statement of Settlement of Duties and Taxes P- 295- A bearing Official Receipt 98921 P- 296- A Statement of Settlement of Duties and Taxes P-297-A bearing Official Receipt 76515 P-298-A Statement of Settlement of Duties and Taxes P- 299- A bearing Official Receipt 99603 P- 300- A Statement of Settlement of Duties and Taxes P-301-A bearing Official Receipt 103601 P-302-A Statement of Settlement of Duties and Taxes P- 303- A bearing Official Receipt 72037 P-304-A Statement of Settlement of Duties and Taxes P-305-A bearing Official Receipt 72036 P- 306- A Statement of Settlement of Duties and Taxes P- 307- A bearing Official Receipt 72033 P-308-A Statement of Settlement of Duties and Taxes P-309-A bearing Official Receipt 72039 P- 310- A Statement of Settlement of Duties and Taxes P- 311 - A bearing Official Receipt 103577 P-312-A Statement of Settlement of Duties and Taxes P- 313- A bearing Official Receipt 72857 P- 314- A Statement of Settlement of Duties and Taxes P-315-A bearing Official Receipt 74387 P-316-A Statement of Settlement of Duties and Taxes P- 317- A bearing Official Receipt 74269 P- 318 Statement of Settlement of Duties and Taxes P- 318- A bearing Official Receipt 106615 P- 319 Statement of Settlement of Duties and Taxes bearing Official Receipt 106613 Statement of Settlement of Duties and Taxes bearing Official Receipt 106614 Statement of Settlement of Duties and Taxes bea ring Official Receipt 106801 Statement of Settlement of Duties and Taxes bearing Official Receipt 106794 Statement of Settlement of Duties and Taxes bearing Official Receipt 108162 Statement of Settlement of Duties and Taxes bearing Official Receipt 75302 Statement of Settlement of Duties and Taxes bearing Official Receipt 107762 Statement of Settlement of Duties and Taxes bearing Official Receipt 84718 Statement of Settlement of Duties and Taxes bearing Official Receipt 77701 Statement of Settlement of Duties and Taxes bearing Official Receipt 111242 Statement of Settlement of Duties and Taxes bearing Official Receipt 68588 Statement of Settlement of Duties and Taxes bearing Official Receipt 91252 Statement of Settlement of Duties and Taxes bea ring Official Receipt 68952 ICP/\ Report dated October 24, 2013 Signature of Atty. Clifford Chua in the ICPA Report dated October 24, 2013 Judicia l Affidavit of Atty. Clifford Chua~

Ph il. Go ld Processing & Refini ng Cor p. vs. CI R Page 18 of 29 CTA Case No. 8652 D ECIS I O N P-319-A Si gnatu re of Atty. Cli fford Ch ua in h is Judi cia l Affid avit In the Resolution21 dated March 181 20141 the Court admitted Exhibits "P- 1" to "P-4" "P- 5" "P- 5-A"I "P- 5- B"I "P- 1 1 5-C" I "P- 5- D" "P- 6" to "P- 24" "P-25" to "P- 55" "P- 58" to f f f "P-81"I "P-84" to "P-107"I "P-110" to " P-133"I "P-136" to "P- 301"I "P-303" to "P-303-A"I "P- 305-A" to "P- 311 -A"I and "P- 3 13-A" to "P- 319 -A" I� but denied Exhibits "P-4-A"I "P-24-1"I "P- 56"I "P-57"I "P-82"I "P- 83"I "P- 108"I "P-109"I "P-134"I "P-135"1 "P-302"1 "P- 304-A"1 and "P-312 -A". On April 111 20141 petitioner filed its "Manifestation with Motion for Partial Reconsideration of the Resolution dated 18 March 2014". 22 In the Resolution23 dated June 2 1 20141 the Court partially granted the said Motion and admitted Exhibits "P-4-A" "P-56" "P-57" "P-82" "P-83" f I I I f "P- 108" "P-109"I "P- 134"I "P- 135" "P- 302"I "P-304-A" and f f f "P- 312-A". The parties were also ordered to submit their respective memoranda. On June 20, 2014 and June 24, 2014 1 respondent and petitioner respectively filed their Memoranda. 24 The case was then submitted for decision on June 27, 2014. 25 The parties submitted the following issues26 for this Court's resolution : 1. Whether petitioner's sale of services in the Philippines to persons engaged in the business conducted outside the Philippines is subject to VAT at zero percent? 2. Whether petitioner is entitled to claim for a refund or tax credit in the amounts of 1=>35,530,279.00 and 1=>41,414,000.64 for the 3rd( 21 Docket, pp. 1218-1222. 22 Docket, pp. 1226-1233. 73 Docket, pp . 1255- 1257. 2 Docket, pp. 1258- 1263 and 1265-1283. " 7 ~ Resolu t ion d ated Jun e 27, 2014, Docket, p. 1285. 76 Statement of Issues, JSFI, Docket, pp. 1022 1023.

Phil. Gold Processing & Refin ing Corp. vs. CI R Page 19 of 29 CTA Case No . 8652 D EC I S I O N and 4 th quarters of the fiscal year ending June 30, 2011 representing alleged unutilized input VAT during the said periods? Petitioner anchors its claim on Section 112(A) of the NIRC of 1997, as amended, quoted hereunder for easy reference : "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 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): 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 : Provided, finally, That for a person making sales that are zero - rated under Section 108(B)(6), the input taxes shall be allocated ratably between his ze ro-rated and non- zero- rated sales." Based on the afore-quoted Section 112(A), the following requisites must be complied with in order to be entitled to a refund or tax credit of input tax due or paid attributable to zero-rated or effectively zero-rated sales :('

Phil. Gold Process ing & Refining Corp . vs. CIR Pa ge 20 of 29 CTA Case No. 8652 D EC ISION 1. the taxpayer is VAT-registered; 2. the taxpayer is engaged in zero-rated or effectively zero-rated sales; 3. the input taxes are due or paid; 4. the input taxes are not transitional input taxes; 5. the input taxes have not been applied against output taxes during and in the succeeding quarters; 6. the input taxes claimed are attributable to zero- rated or effectively zero-rated sales; 7. for zero-rated sales under Sections 106(A)(2)(1) and (2); 106(8); and 108(8)(1) and (2), the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas; 8. where there are both zero-rated or effectively zero- rated sales and taxable or exempt sales, and the input taxes cannot be directly and entirely attributable to any of these sales, the input taxes shall be proportionately allocated on the basis of sales volume; and 9. the claim is filed within two years after the close of the taxable quarter when such sales were made .27 The last requisite pertains to the period for filing of the administrative claim for refund or tax credit. As categorically stated under Section 112(A), the application for tax credit certificate or refund must be filed within two y ears after the close of the taxable quarter when the zero-rated or effectively zero-rated sales were made. The present claim covers the 3rd and 4 th quarters of fiscal year ending June 30, 2011, which closed on March 31, 2011 and June 30, 2011, respectively. Counting two years from these dates, petitioner had until March 31, 2013 and June 30, 2013 within which to fil e its administrative claim for refund. Thus, petitioner's filing of two (2) 8IR Forms No. C. n Luzon Hydro Corporation vs. Commissioner of Internal Revenue, G.R. No. 188260, November 13, 2013.

Phil. Gold Processing & Refin ing Corp. vs. CI R Page 21 of 29 CTA Case No. 8652 DECISION 191428 (Applications for Tax Credits/Refunds) on December 10, 2012 with the Tax and Revenue (VAT) Group under the DOF-OSS was well within the two-year prescriptive period provided under Section 112(A) of the NIRC of 1997, as amended. As to the timeliness of petitioner's judicial claim, Section 112(C) of the NIRC of 1997, as amended, provides: "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 above prov1s1on provides that the BIR Commissioner has 120 days from the date of submission of complete documents in support of the application for refund or tax credit within which to grant or deny the claim. In case of fu ll or partial denial by the SIR Commissioner, the taxpayer's recourse is to fil e an appeal before this Court within 30 days from receipt of the decision of th e SIR Commissioner. However, if after the 120- day period the BIR' 78 Par. 7 , Summary of Stipulated Fact s, JSFI, Dock et, p . 1022; Exhibits "P- 6" a nd "P- 7".

Phil. Go ld Processing & Refini ng Corp. vs . CIR Page 22 of 29 CTA Case No. 8652 DE CIS ION Commissioner fails to act on the application for refund or tax credit, the remedy of the taxpayer is to appeal the inaction of the BIR Commissioner to this Court within 30 days. Applying Section 112(C) of the NIRC of 1997, as amended, the following are the pertinent dates to petitioner's claim for refund: FY Date of Filing Date of End of 120 End of 30 Date of 2011 of Submission days for the days from Filing of , 3rd Qtr. Judicial 4th Qtr. Administrative of BIR the Claim Complete expiration Claim Documents Commissioner of the 120 May 10, Dec. 10, 2012 to decide on Dec. 13, days 2013 201219 the claim May 12, Apr. 12, 2013 2013 Based on th e above tabl e, petitioner's judicial claim was timely filed within the " 120+ 30 day" period required under Section 112(C) of the NIRC of 1997, as amended. After establishing the timeliness of the present petition, the Court shall now determine petitioner 's compliance with the remaining requisites. For the 3rd and 4 th quarters of fiscal y ea r ending June 30, 2011, petitioner allegedly exported one hundred percent (100 �/o) of its processed gold and si lver ore and generated sales therefrom in the respective amounts of P1,893,161,293.4030 and P3,152,355,597.983 1, or in the sum of P5,045,516,891.38. Th ese sa les were purportedly paid in foreign currency and duly accounted for based on the rul es and regulations of the Bangko Sentral ng Pilipinas. Petition er posits that such export sales are subject to ze ro percent (0�/o) VAT under Section 106(A)(2)(a)(1) of th e NIRC of 1997, as a m ended, which states : "SEC. 106. Value-added Tax on Sale of Goods or Properties. - C.. 29 Petition for Review, Docket, p. 9; Ex hibits "P-8" to "P- 10" . 30 Ex hi bit " P- 13". 3 1 Exh ibi t " P- 15" .

Phi l. Gold Processing & Refining Corp. vs. CIR Page 23 of 29 CT/\ Case No. 8652 DECISION (A) Rate and Base of Tax. - XXX XXX XXX (2) The following sa les by VAT - registered persons shall be subj ect to zero percent (0 �/o) rate: (a) Export Sales. - The term 'export sales' means: ( 1) Th e sa le and actual shipm ent of goods from the Philippin es to a foreign country, irrespective of any shipping arrang ement that may be agreed upon which may influence or determine the transfer of ownership of the goods so exported and paid for in acceptable foreign currency or its equivalent in goods or services, and accounted for in accorda nce with the ru les and regulations of th e Bangko Sentra l ng Pilipinas (BSP);" In order for an export sa le to qualify as zero - rated under Section 106(A)(2)(a)(1) of the NIRC of 1997, as amended, the fo llowing requisites must be present : 1. that there was sale and actual shipment of good s from the Philippines to a foreign co untry; 2. that the sa le was made by a VAT - registered perso n; 3. that the sale wa s paid for in acce ptable foreign currency or its equivalent in goods or services; and 4. that th e payment was accounted for in accordance with th e rul es and regulations of the BSP . Corollary to the first requisite, Sections 113(A)(l), (B)(l), (2)(c) and ( 3) of the NIRC of 1997, as amended, as implemented by Sections 4 . 113- 1(A)(1), (8)(1) and (2)(c) of Revenue Regulations (RR) No. 16- 20 05, as amended, provide that a VAT taxpayer, like herein petitioner, shall for~

Phil. Gold Processing & Refining Corp. vs. CIR Page 24 of 29 CTA Case No . 8652 D E C IS ION every sa le, barter or exchange of goods or properties issue a VAT invoice which must contain the fo llowing information: "SEC. 113. Invoicing and Accounting Requirements for VAT-Registered Persons. - (A) Invoicing Requirements. - A VAT-registered person shall issue: (1) A VAT invoice for every sale, barter or exchange of goods or properties; and XXX XXX XXX (B) Information Contained in the VAT Invoice or VAT Official Receipt. - The fol lowing 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�/o) value - added tax, the term ' ze ro- rated sal e' shall be written or printed prominently on the invoice or receipt; XX X XXX XXX (3) The date of tran saction, quantity, unit cost and description of the good s or properti es or nature of the servic e; and " (Emphasis supplied) "SEC. 4.113- 1. I nvoicing Re quire m e n ts. - C..

Phi l. Gold Processing & Refining Corp. vs. CIR Page 25 of 29 CTA Case No . 8652 DECISION (A) A VAT-registered person shall issue: - (1) A VAT invoice for every sa le, barter or exchange of goods or properties; and XXX XXX XXX On ly VAT- registered persons are required to print their TIN followed by the word 'VAT' in their invoice or official receipts. Said documents sha ll be considered as a 'VAT Invoice' or VAT official receipt. All purchases covered by invoices/receipts other than VAT Invoice/VAT 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 sell er as part of his accounti ng records. (B) Information contained in VAT invoice or VAT official receipt. - The following information sha ll 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 ob ligated to pay to the sell er with the indication that such amount includes the VAT; Provided, That: XXX XXX XXX (c) If the sa le is subject to zero percent (0�/o) VAT, the term 'zero- rate d sale' shall be written or printed prominently on the invoice or receipt;" (Emphasis supplied)(

Phil. Gold Processing & Refining Corp. vs . CIR Page 26 of 29 CTA Case No. 8652 DECISION Aside from the above-stated requirements, the invoice or receipt must be duly registered with the BIR as prescribed under Sections 237 and 238 of the NIRC of 1997, as amended, to wit: "SEC . 237. I ssuance of Receipts or Sales or Commercial Invoices. - All perso ns subject to an internal rev enu e ta x shall, for each sal e and transfer of merchandise or for services rendered valued at Twenty-five pesos (P25.00) or more, issue duly registered receipts or sales or commercial invoices, prepared at lea st in duplicate, showing the date of transaction, quantit y, unit cost and description of merchandise or nature of service. xxx" (Emphasis supplied) "SEC. 238. Printing of Receipts or Sales or Commercial Invoices. - All persons who ar e engag ed in business shall secure from the Bureau of Internal Revenue an authority to print receipts or sa les or co mm ercial invoi ces before a printer ca n print the sa me. No authority to print rece ipts or sa les or comm ercial invoices shall be granted unl ess the receipts or invoices to be printed are serially numbered and shall show, among other t hings, the nam e, bu sin ess styl e, Taxpayer Identification Number (TIN) and bu sin ess address of the person or ent ity to use the sa me, and such other information that may be required by rul es and regulations to be promulgated by th e Secretary of Fin ance, upon recommendation of t he Comm issioner." Pursuant to Section 106(A)(2)(a)(1) of the NIRC of 1997, as amended, in relation to Sections 113(A)(1), (8)(1), and (2)(c) of th e sa m e Code and Sections 4.113- 1(A)(1), (8)(1) and (2)(c) of Revenue Regulations No. 16-05, any VAT - reg iste red pe rso n claiming VAT ze ro - rated direct expo rt sa les mu st prese nt at least three (3) types of docum ents, namely : 1. Sales Invoice as proof of sa le of goods;'

Phil . Gold Processing & Refining Corp. vs. CIR Page 2 7 of 29 CTA Case No. 8 6 52 DEC I SI ON 2. Export Declaration and Bill of Lading or Airway Bill as proof of actual shipment of goods from the Philippines to a foreign country; and 3. Bank Credit Advice, Certificate of Bank Remittance or any other document proving payment for the goods in acceptable foreign currency or its equivalent in goods and services. In other words, only export sales supported by these documents shall qualify for VAT zero-rating under Section 106(A)(2)(a)(1) of the NIRC of 1997, as amended. Further, the sales invoices supporting the export sales must be registered with the BIR and must contain all the required information under the law and regulations, such as the imprinted word "zero-rated" and the taxpayer's TIN -VAT number. Records show that petitioner is registered with the BIR as a VAT taxpayer on March 15, 1996 with Tax Identification Number (TIN) 004- 498-686-000, as evidenced by its BIR Certificate of Registration. 32 Petitioner is also a SOl- registered enterprise with a Non-Pioneer Status with Pioneer Incentives, being located in Less Developed Area (LDA) as a new producer of gold and silver dare.33 However, while petitioner submitted before this Court documents such as zero-rated invoices34, export documents35, and certification from Hong Kong and Shanghai Banking Corporation Limited (HSBC), the same do not fully substantiate its purported export sales for the 3 rd and 4th quarters of fiscal year 2011. The Court-commissioned Independent Certified Public Accountant (CPA), Mr. Clifford E. Chua, noted in his report36 that petitioner's sales denominated in foreign currency relate to the foreign currency inward remittances, as evidenced by Exhibits "P-24" to "P-24-I". Records disclose that Exhibit "P- 24" pertains to the HSBC Certification, while Exhibits "P- 24- C. 32 Par. 4, Summa ry of Stipul ated Facts, JSFI, Docket, p. 1022; Exhibit " P-4". 33 Pa r. 3 , Summ ary o f Sti pulated Facts, JSFI, Dock et, p. 1022; Ex hibit " P- 5" a nd " P- 5-A". 3'~ Ex hibi ts " P-35" to " P-55". 3~ Ex hibi ts " P- 56" to P- 159". 36 Ex hibit " P- 3 18", p . 6, Results of Proced ures Pe rfo rm ed, pa r . 1 (f ) .

Phil. Gold Processing & Refin ing Co rp . vs . CIR Pag e 2 8 o f 29 CTA Case No. 8652 DEC I S I O N A" to "P-24-I" refer to BNP Paribas Consolidated Cash Statements. However, Exhibits "P-24-A" to "P-24-I" were not formally offered in evidence; hence, inadmissible and cannot be considered by this Court. It is well-settled that courts cannot consider evidence which has not been formally offered pursuant to Section 34 of Rule 132 of the Revised Rules of Court. 37 Moreover, it was noted that the foreign currency remittances indicated in the HSBC Certification do not reconcile with those reflected in the sa les invoices issued by petitioner to its clients for the 3rd and 4th quarters of fiscal year 2011. Thus, it cannot be ascertained whether such foreign currency remittances actually pertain to petitioner's export sales for the subject period of claim. This means that petitioner's alleged export sales for the said periods in the amount of ~5,045,516,891.38 cannot qualify for VAT zero - rating. Consequently, the alleged input VAT incurred by petitioner for the 3rd and 4th quarters of fiscal year 2011 in the amount of ~76,944,279.64 cannot be refunded. In a claim for tax refund or tax credit, the applicant must prove not only entitlement to the claim but also comp liance with all the documentary and evidentiary requirements. 38 Moreover, well-settled is the rule that tax refunds are in the nature of tax exemptions and as such they are regarded as in derogation of sovereign authority and to be construed in strictissimi juris against the person or entity claiming it.39 Since petitioner failed to prove that its foreign currency remittances actually pertain to its alleged export sales for the subject periods, the Court is constrained to deny the present claim. ( 3 Far East Bank & Trust Company vs. Commissioner of I nternal Revenue, G. R. No. ' 149589, September 15, 2006. 38 J. R.A. Philippines, I nc. vs. Commissioner of Internal Revenue, G.R. No. 17130 7, August 28, 2013, citin g Western Mindanao Power Corporation vs. Commissioner of I n ternal Revenu e, G.R. No. 18 11 36, Jun e 13, 2012 . 39 Commission er of I nternal Revenue vs. S.C. Jo hnson and Son , Inc. et. at., G.R. No. 127105, Ju ne 25, 1999; Commissioner of Internal Revenue vs. Tokyo Shipping Co., Ltd., et. a/., G.R. No. L- 68252, May 26, 1995.

Phi l. Gol d Processing & Refin ing Corp . vs. CIR Page 29 of 29 CTA Case No. 8652 D EC I SIO N WHEREFORE, premises considered, petitioner's claim for refund or issuance of tax credit certificate is hereby DENIED for lack of merit. SO ORDERED. Cltct; N. 1\A ~ .. c~ CIELITO N. MiNDARO-GRULLA Associate Justice WE CONCUR: ' J AEsRsL~~1~ .stUicYe (wit Dissenti Opinion) ROMAN G. DEL ROSARIO Presid ing Justice CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, it is hereby certified that the conclusions in th e above Decision were reached in consu ltation before the case was assigned to the writer of the opinion of the Court's Division. Presiding stice Chairperson, 1 st Division

REPUBLI C OF Tl IE PIIILIPPINES Co urt of Tax Appeals Q UEZON CITY FIRS T DIVISION PHIL. GOLD PROCESS ING & CTA CASE NO. 8652 REFINING CORP., Members: Petitioner, - versus - DEL ROSARIO, Chai1 person, UY, and MlNDARO-GRULLA, JJ. COMMISS.IONER OF P rom u lgated: INTERNAL REVENUE, Respondent. X- - --- - - - - - - - - --- - - - - - - - - - - - - -- - - - -- - DlSSENTING OPINION DEL ROSARIO, PJ: With utmost rcsrcct to the ponencia o f my esteemed co lleague, the Honorab le Associate J ustice C ie lito N. Mindaro-Grul la, I di sagree in the conc lus ion deny ing the c la im fo r refun d or iss uance of a tax credit cert ificate considering tha t pieces of documents duly identified by a w itness and fo rming part of the case records were not co nsidered . T he ponencia did not any more di scuss petit ioner's compliance w ith the other requ iremen ts lor entitle ment to c la im for refund of inpu t tax in vi ew of its fi ndi ngs tha t petitio ner failed to prove that its foreign curren cy remittances perta in to its expo tt sales during the period of claim, which according ly makes petitioner's export sales not quali fied for VAT zero- rating. T he said findin gs and conclusion were made as the ponencia d id not g ive any e v ide nti ary we ight on documents marked as Exh ibits " P-24-A" to " P-24-1" on th e g round th at said ex hibits were not form a lly o ffe red in evidence purs uant to Section 34, R ule 132 o f the Ru les o f Cou rt. While it is a ru le that the co urt shall conside r no ev idence w h ich has not been form all y o 1Tered , 1 jurisprudence, however, prov ided an exception to 1 SEC. 34. O ffer ofcv idcncc. The court shall co nside r no evidence whi ch has not been forma lly offered . The purpose for 11 hich the evidence is offered must be spec ilied.

Dissenting O pinion Phil. Gold Processi ng & Refining Corp. v . C' IR said genera l ru le. In Vda. de Oate v. Court of Appeals/ the Supreme Court he ld the follo w ing : ��Fro m the fo rego ing prov ision. it is c lear that for ev ide nce to be conside red , the same must be formall y o ffe red. Co rollaril y, the me re fact that a particular document is ide ntified and marked as an ex hibit does no t mea n that it has already been offered as pa rt of the ev idence of a pa rty. In Inte rpaci fie Trans it. Inc. v. Avi les [ 186 CRA 385]. we had the occasio n to make a disti nc tion between ide ntificatio n o f documentary evidence a nd its fo rm a l o fTcr as an ex hibit. We said that the first is done in the course of the trial a nd is accompanied by the marking of the evide nce as an ex hibit while the second is d one onl y \<\ he n the party rests its case and not before. A party. the refore, may o pt to formall y o ffe r hi s evidence if he be li eves that it w ill advance hi s cause or not to do so at a ll. In the eve nt he c hooses to do the latter. the trial court is not a uthor iLed by the Rul es to cons ide r the sa m e. I Iom.::ve r. in Peopl e v. apat-a [I 79 SCRA 403] citi ng People v. Mate II o:; SC RA 484 J. w e r elaxed th e fo r egoing r ule a nd a llowed evid e n ce not fo rm a lly o ffe red to b e admitte d a nd co ns ide r ed by the tria l court provided th e fo llow in g r equire me nt a r e present, viz.: fit�st, the sa me m ust have been duly identified by testimo ny duly record ed a nd, second, the same must have been incorporated in the records of th e case ."' (!3o/c(focing & Underscorinx supplied) In Dizon vs. Court o.f Tax 11ppeals,3 the Supreme Court stressed that the doctrine la id down in Vda. De Oate still subsists in thi s jurisdiction. fo llo w ing Vda. De Oate, it is my humble pos ition that the documents marked as Lx hibits " P-24-/\" to " P-24-1" m ay be considered in the di s posa l of thi s case as th ese exhi bi ts complied w ith the requ is ites mention ed in said Vda. De Oate case. E xhi b its " P-24-A" to "P-24- f" actually form part of the case records (con tained in black binder of the / CPA Report) and the same were identified by a testimony duly recorded." In vie w or the foregoing, l vote th at Exhibits "P-24-A" to " P-24-1" be g ive n probati ve va lu e, a nd th e case be re-evaluated as the excluded exhibits may change the conclusion of the case. Presidin g Justi ce 2 G.R. No. I 16149. November 23, 1995. ' G. R. No. 140944 . Apri l 30,2008. 4 Exhibit P-3 19: Dnckct. pp. I 04 7- 1058: I 053 in relation to Minutes o f Heari ng; Docket. pp. I 063- 1067: I064 .