BENGUET CORPORATION v. COMMISSIONER OF INTERNAL REVENUE and COMMISSIONER OF CUSTOMS

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY BENGUET CORPORATION, Petitioner, -versus- C.T.A. CASE NO. 5934 THE COMMISSIONER OF INTERNAL Promulgated: REVENUE and THE COMMISSIONER OF CUSTOMS, JAN 2 5 ~ #~~ Respondents. X---------------------------------------------------------~X DECISION Before Us is a Petition for Review filed on September 29, 1999 claiming for the refund or issuance of a tax credit certificate in the aggregate amount ofP16,185,725.99, allegedly representing the excess net creditable VAT input for the third and fourth quarters ended September 30, 1997 and December 31, 1997, respectively. Petitioner is a domestic corporation duly organized and existing under Philippine laws with principal office located at One Corporate Plaza, 845 Arnaiz Avenue, 1223 Makati City. It is primarily engaged in the mining business, which includes the exploration, development and operation of mining properties for purposes of commercial production, and also the marketing of marketable mine products. It is likewise registered with the BIR as a Value-Added Tax (VAT) taxpayer in accordance with Section 107 of the old Tax Code (now Section 236 par. H of the 1997 Tax Code) as evidenced by a VAT Registration Certificate No. 94-410-002700 wherein it has been issued Registration/Tax

DECISION- CTA CASE NO. 5934 PAGE 2 Identification Number 410-000-051-03 7 VAT on the sale of its goods effective June 30, 1994 (see Annex A, Petition for Review). On May 4, 1988, Petitioner filed with the BIR an Application for Zero Rate on Sale of its goods to persons or entities. On October 20, 1997, Petitioner filed with the BIR its third quarter VAT Return for the period ended September 30, 1997 (Exhibit "A"), reflecting a total creditable VAT input of P30,539,755.22 of which P13 ,088,027.83 was generated from its domestic purchases of goods and services and importation of goods for the said quarter, computed as follows: VAT INPUT TAX Carried over from previous quarter P17,451 ,727.39 Domestic purchases of goods and services 10,398 ,968.89 Importation of goods 2,689 ,058.94 P30.539.755.22 (Exhibits A, A-1) On January 20, 1998, Petitioner filed its fourth quarter VAT Return (Exhibit "C") for the period ended December 31 , 1997 with the BIR showing a total creditable VAT input ofP34,546,845.61 of which P4,661 ,448 .12 was generated from domestic purchases of goods and services and importation of capital goods for the said quarter, computed as follows: VAT INPUT TAX Carried over from previous quarter P29,885 ,3 97.49 Domestic purchases of goods and services 4,501 ,492.12 Importation of goods 159,956.00 Total P34.546.845 .61 (Exhibits C, C-1)

DEC I S I O N - CTA CASE NO. 5934 PAGE3 On July 1, 1999 and September 3, 1999, Petitioner filed with the Tax and Revenue Group of One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center of the Department of Finance (DOF), its applications for tax credit/refund of its excess or unapplied net creditable VAT inputs for the third quarter ended September 30, 1997 and fourth quarter ended December 31 , 1997, in the amount of P12,592.011.34 and P3 ,593 ,714.65 , respectively (Exhibit B-1 and Annex F). Since the aforementioned claims for refund m the aggregate amount of P16,185,725 .99 was not acted upon by the Respondent and in order to preserve its right to judicially claim the same, Petitioner filed its appeal before this Court by way of Petition for Review on September 29, 1999. In his Answer, Respondent Commissioner of Customs raised the following Special and Affirmative Defenses, to wit: "4. The petition states no cause of action as it does not allege the dates when the taxes sought to be refunded were actually paid (Manufacturer's Bank and Trust Co., etc. vs. Commissioner of Internal Revenue, Ledesma, 31 SCRA 95; Manila Electric Co. vs. Commissioner of Internal Revenue, 67 SCRA 35); 5. It is incumbent upon Petitioner to show compliance with the provision of Section 230 ofthe Tax Code, as amended; 6. Claims for refund are construed strictly against the claimant for the same partakes of the nature of an exemption from taxation (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA 95); 7. Taxation is one of the inherent powers of the state and taxes are considered the lifeblood of the nation. Hence, the burden is upon the taxpayer to prove that he actually paid the taxes in question and that he is entitled to the refund sought, and failure to do so, is fatal to the action for refund�."

DEC ISI O N - CTA CASE NO. 5934 PAGE4 Moreover, Respondent Commissioner of Internal Revenue, in his Answer, raised the following Special and Affirmative Defenses, thus: "5. Petition states no cause of action as it does not allege the dates when the taxes sought to be refunded were actually paid; 6. Pursuant to Section 112(D) of the National Internal Revenue Code, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within 120 days from the date of submission of complete documents in support of the application filed and not 60 days as alleged by Petitioner; 7. It is incumbent upon herein Petitioner to show that it has complied with the provision of Section 229 ofthe Tax Code; 8. Claims for refund are construed strictly against the claimant, the same being in the nature of exemption from taxes (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA 95; Manila Electric Co. vs. Commissioner of Internal Revenue, 67 SCRA 35); 9. One who claims to be exempt from payment of a particular tax must do so under clear and unmistakable terms found in the statute (Asiatic Petroleum vs. Llanes, 49 Phil 466; Union Garment Co. vs. Court of Tax Appeals, 4 SCRA 304); 10. In (sic) action for refui1d, the burden is upon the taxpayer to prove that he is entitled thereto, and failure to S'lstain the same is fatal to the action for tax refund. " In the Joint Stipulation of Facts and Restatement of Issues which was concluded between Petitioner and Respondent Commissioner of Internal Revenue, the following issues were agreed upon: "(a) Whether or not Petitioner has unutilized creditable VAT inputs for the period July 1, 1997 to December 31 , 1997 in the aggregate amount of P16,185,725.99 arising from its domestic purchases of goods and services, and importation of capital goods which is a proper subject of a claim for refund pursuant to Section 112 of the National Internal Revenue Code (Tax Code), as amended; (b) Whether or not the said creditable VAT inputs of the Petitioner for the period July 1, 1997 to December 31 , 1997 are substantiated by

DECISION- CTA CASE NO. 5934 PAGES documentary evidence in the form of invoices, official receipts and other acceptable supporting documents; and (c) Whether or not said unutilized creditable VAT inputs of the Petitioner for the period July 1, 1997 to December 31, 1997 was carried forward to the succeeding taxable quarter and applied against any output VAT of the Petitioner for the said period. We rule in favor of Petitioner. The instant case is not one of first impression. Quoted hereunder are the pertinent provisions of the 1997 Tax Code on the refund of excess input VAT paid on domestic purchases of goods and services and from importation of capital goods attributable to zero-rated or effectively zero-rated sales, thus: "Section 100. Value Added Tax on sale ofgoods or properties.- (a) Rate and Base of Tax.- There shall be levied, assessed and collected on every sale, barter or exchange of goods or properties, a value-added tax equivalent to 10% of the gross selling price or gross value in money of the goods or properties sold, bartered or exchanged, such tax to be paid by the seller or transferor. X X X X X X (2) The following sales by VAT-register ~d persons shall be subject to 0%: (A) Export Sales.- The term "export sales" means: "(i) The sale and actual shipment of goods from the Philippines to a foreign country, irrespective of any shipping arrangement 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 accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP)." "Section 106. Refunds or Tax credits of creditable input tax. - (a) 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

DECISION- CTA CASE NO. 5934 PAGE6 against output tax: Provided, however, That in the case of zero-rated sales under Section 1OO(a)(2)(A)(i), (ii) and (b) and Section 102 (b)(1) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the regulations of the Bangko Sentral ng Pilipinas (BSP): x x x." (b) Capital Goods. - A VAT-registered person may apply for the issuance of a tax credit certificate or refund of input taxes paid on capital goods imported or locally purchased, to the extent that such input taxes have not been applied against output taxes. The application may be made only within two (2) years after the close of the taxable quarter when the importation or purchase was made." In sum, the following basic requisites must be complied with in order for tax refunds or credits of excess input VAT paid may be granted as provided in Section 100(a)(2)(A)(i) ofthe 1997 Tax Code, thus: 1. That there be a sale of goods; 2. That the sale be made by a VAT-registered person; 3. That the sale qualifies as export sale as defined by law; 4. That the foreign exchange proceeds of said export sales were properly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas. On the other hand, Section 106(a) and (b) of the 1997 Tax Code specifically provides for the following requisites before a claim for refund can be granted, thus: 1. That the application of a tax credit or refund has been made within the two-year prescriptive period from the filing of the quarterly VAT return as provided under Section 4.106-2(c) of Revenue Regulations No. 2-95; 2. That the claimed input taxes on domestic purchases of taxable goods and services are directly attributable to its zero-rated sales;

DECISION- CTA CASE NO. 5934 PAGE 7 3. That the claimed input taxes were not offset/applied against any output tax nor carried over to the succeeding months/quarter. It is undisputed that Petitioner is a VAT-registered entity. (par. 4, Joint Stipulation of Facts, CTA Records, p. 54). Records reveal that Petitioner actually generated export sales and the foreign currency exchange proceeds thereof were inwardly remitted in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP). This is evidenced by the various export sales invoices, export declarations, airway bills, bills of lading, bank credit/memo(s) and official receipts which have been pre-marked by the independent CPA (Exhibit E). Considering that Petitioner's export sales qualify as zero-rated, it is not liable to pay the output tax due thereon. Petitioner's right to refund or credit the input VAT paid on its purchases of goods, properties or services related to such zero-rated sales is provided under Section 4.102 of Revenue Regulations No. 7-95 in relation to Section 106(a) of the 1997 Tax Code. Moreover, the right to refmd or credit the input tax paid is likewise applicable on its importation of capital goods as sanctioned by Section 106(b) of the same code. With regard to the timeliness of Petitioner's action both in the administrative and judicial levels, this Court finds that prescription had not yet set in. Records reveal that Petitioner filed its 1997 third and fourth quarterly VAT returns on October 20, 1997 and January 20, 1998, respectively. The administrative claims were filed on July 1, 1999 and September 3, 1999 for the third and fourth quarterly VAT returns, respectively, while the Petition for Review was filed on September 29, 1999. H.~nce, both the administrative and judicial claims were filed within the two-year prescriptive period provided under Section

DECIS ION- CTA CASE NO. 5934 PAGE& 4.106-2(C) of Revenue Regulations No. 7-95 . The said regulation provides that the application for the refund or credit of input taxes paid on capital goods imported or locally purchased shall be made within two years after the close of the taxable quarter when the importation or purchase was made. Petitioner declared the following in its third and fourth quarterly VAT returns for the year 1997, to wit: QTR. ZE RO-RATED DOM ESTIC IMPORTATIONS INPUT INVOLVED EX HIBIT SALES PURC HAS ES VAT 3RD QTR. NA-l P26 I,926,296.66 PI03 ,989,688.90 P26,890,589.40 P I3,088,027.83 4TH QTR. C/C- 1 169,296,479.55 45,0 I4,921.20 I,599,5 60.00 4,661 ,448. I2 TOTAL �131 222 ZZ6. 21 �112 QQH1Q 1Q �28 12Q 1121Q �1Z Z121Z5 25 Petitioner's applications for credit/refund of value added tax paid, declared the amounts of P12,592,011.34 (Exhibit B-1) and P3 ,593 ,714.65 (Annex F) for the third and fourth quarters, respectively, as input taxes being claimed for an aggregate amount of P16,185 ,725 .99. However, the total claim for refund as declared in Petitioner's third and fourth quarterly VAT returns is P17,749,475.95. Upon examination of Petitioner's 1997 third and fourth quarterly VAT returns (Exhibits A and C), the Court finds that the claimed input taxes were already net of Petitioner's output tax liabilities for the same quarters. Thus, the claimed input taxes on its purchases of taxable goods and services are directly attributable to its zero-rated sales. Records, likewise, reveal that the unutilized input taxes for the third and fourth quarters were carried-over up to the third quarter of taxable year 1998 (Exhibit D-5) but were nevertheless deducted from the total available input taxes for the fourth quarterly VAT of 1998 (Line 27, Exhibit D-6, CTA Records, p. 134).

DECISION- CTA CASE NO. 5934 PAGE9 Due to the voluminous nature of the evidence presented, Petitioner engaged the services of an independent accounting firm to conduct an audit and evaluation of the documents pertinent to the input VAT claimed for the period. The findings of the independent CPA, is thus, summarized as follows: (a) Sales amounting to P213,967.63 were not supported by sales invoices. Hence, the corresponding output tax ofP21 ,396.76 was Jeducted from Petitioner's claim for refund. (b) Input taxes amounting to P1,141 ,046.41 were disallowed for non-compliance with the VAT invoicing requirements. (c) No exception was noted for Petitioner' s inward remittances. Based on the findings of the independent CPA, Petitioner's claim was reduced to P15 ,023 ,282.78 (mentioned as Exhibit A in Exhibit E page 140, CTA Records). The Court finds the independent CPA's report to be in order. Upon further verification by the Court, the pre-marked documents presented in evidence resulted to an additional input VAT disallowance of P1 ,491 ,612.56 due to the following reasons: (a) Not supported by official receipts/invoices but by statement of account, account summary, statement of freight charges or debit note. QTR. ACCOUNT REFERENCE INVOICE INPUT NO. AMOUNT VAT SUPPLIER INVOLVED NO. DATE ARROW FREIGHT CORP . 3RD QTR AC 1701 5/29/97 16598 p 33,558.00 p 3,050.73 ARROW FREIGHT CORP. 3RD QTR AC 1701 5/31/97 16616 21 ,856.00 1,986 .91 ARROW FREIGHT CORP. 3RD QTR AC 1701 5/31/97 16620 21 ,856.00 1,986 .91 ARROW FREIGHT CORP. 3RD QTR AC 1701 6/16/97 16646 10 ,933 .00 ARROW FREIGHT CORP. 3RD QTR AC 1701 6/28/97 16678 993 .91 ARROW FREIGHT CORP. 3RD QTR AC 1701 7/14/97 1!"703 8 ,550 .3 2 777 .30 ARROW FREIGHT CORP. 3RD QTR AC 1701 7/17/97 16724 8,392 .00 762 .91 ARROW FREIGHT CORP. 3RD QTR AC 1701 7/23/97 16737 8,392 .00 762 .91 ARROW FREIGHT CORP. 3RD QTR AC 1701 7/30/97 16751 8,392.00 762 .91 ARROW FREIGHT CORP. 3RD QTR AC 0450 5/29/97 16595 8,392 .00 762.91 ARROW FREIGHT CORP. 3RD QTR AC 0450 5/29/97 16596 10,196.00 926 .91 42 ,215.00 3,837.73

DECISION- 3RD QTR AC 0450 5129197 16597 288 .71 26 .25 CTA CASE NO. 5934 3RD QTR AC 0450 5/31/97 16615 3,376.00 306 .9 1 PAGEIO 3RD QTR AC 0450 5/31/97 16619 10,196.00 926 .9 1 3RD QTR AC 0450 5/31/97 16633 5,113.00 464 .82 ARROW FREIGHT CORP. 3RD QTR AC 0450 5/31/97 16636 1,127.60 102 .51 ARROW FREIGHT CORP. 3RD QTR AC 0450 5/31/97 16640 5,103.00 463 .91 ARROW FREIGHT CORP. 3RD QTR AC 0450 6/16/97 16643 62 ,607.00 5,691 .55 ARROW FREIGHT CORP. 3RD QTR AC 0450 6120197 16660 31 ,544.00 2,867 .64 ARROW FREIGHT CORP. 3RD QTR AC 0450 6/28/97 16667 1,935.00 175 .90 ARROW FREIGHT CORP. 3RD QTR AC 0450 6/28/97 16669 26 ,902 .00 2,445 .64 ARROW FREIGHT CORP. 3RD QTR AC 0450 6/30/97 16684 63 ,501 .89 5,772 .90 ARROW FREIGHT CORP. 3RD QTR AC 0450 6/30/97 16695 29 ,225 .00 2,656 .82 ARROW FREIGHT CORP. 3RD QTR AC 0450 7/14/97 16702 15 ,299 .00 1,390.82 ARROW FREIGHT CORP. 3RD QTR AC 0450 7/17/97 16720 16 ,235 .00 1,475 .91 ARROW FREIGHT CORP. 3RD QTR AC 0450 7/19/97 16729 2 ,743 .50 249.41 ARROW FREIGHT CORP. 3RD QTR AC 0450 7/23/97 16734 14 ,762 .10 1,342 .01 ARROW FREIGHT CORP. 3RD QTR AC 0450 7/23/97 16735 8 ,469 .00 769.91 ARROW FREIGHT CORP. 3RD QTR AC 0450 7/23/97 16742 18 ,103 .00 1,645.73 ARROW FREIGHT CORP. 3RD QTR AC 0450 7/30/97 16753 20,392 .00 1,853.82 ARROW FREIGHT CORP. 3RD QTR AC 0450 7/31/97 16765 5,467 .00 497 .00 ARROW FREIGHT CORP. 3RD QTR AC 0450 7/31/97 16771 10,196.00 926 .91 ARROW FREIGHT CORP. 3RD QTR AC 0261 5129197 16594 8,252 .56 750 .23 ARROW FREIGHT CORP. 3RD QTR AC 0261 5/31/97 16627 19 ,134 .50 1,739 .50 ARROW FREIGHT CORP. 3RD QTR AC 0261 6/16/97 16644 8 ,090 .38 735 .49 ARROW FREIGHT CORP. 3RD QTR AC 0261 6/16/97 16650 26,400 .00 2,400 .00 ARROW FREIGHT CORP. 3RD QTR AC Q261 6/28/97 16670 8 , 182 .00 743 .82 ARROW FREIGHT CORP. 3RD QTR AC 0261 6/30/97 16683 16,334 .00 1,484 .91 ARROW FREIGHT CORP. 3RD QTR AC 0261 6/30/97 1l '591 16 ,400 .87 1,490.99 ARROW FREIGHT CORP. 3RD QTR AC 0261 7/14/97 16704 9,569.00 869 .91 ARROW FREIGHT CORP. 3RD QTR AC 0261 7/15/97 16707 3,000.00 272.73 ARROW FREIGHT CORP. 3RD QTR AC 0261 7/17/97 16721 19,128.00 1,738 .91 ARROW FREIGHT CORP. 3RD QTR AC 0261 7/19/97 16728 16 ,334 .00 1,484.91 ARROW FREIGHT CORP. 3RD QTR AC 0261 7/23/97 16739 16,334.00 1,484.91 ARROW FREIGHT CORP. 3RD QTR AC 0261 7/23/97 16743 16 ,344.00 1,485 .82 ARROW FREIGHT CORP. 3RD QTR AC 0261 7129197 16748 4 ,200.00 381 .82 ARROW FREIGHT CORP. 3RD QTR AC 0261 7/30/97 16754 32 ,678 .00 2 ,970 .73 ARROW FREIGHT CORP. 3RD QTR AC 0261 7/31/97 16759 26 ,400 .00 2,400 .00 ARROW FREIGHT CORP. 3RD QTR AC 0261 7/31/97 16766 19,128.00 1,738 .91 ARROW FREIGHT CORP. 3RD QTR AC 0633 74/18/97 16500 ARROW FREIGHT CORP. 3RD QTR AC 0633 5/29/97 16593 30 .00 2.73 ARROW FREIGHT CORP. 3RD QTR AC 0633 5/29/97 16599 144 .72 13.16 ARROW FREIGHT CORP. 3RD QTR AC 0633 5/19/97 16629 17 ,390 .00 1,580 .91 ARROW FREIGHT CORP. 3RD QTR AC 0633 6/16/97 16645 17,390 .00 1,580 .91 ARROW FREIGHT CORP. 3RD QTR AC 0633 6120197 16658 ARROW FREIGHT CORP. 3RD QTR AC 0533 6120197 16659 91.62 8.33 ARROW FREIGHT CORP. 3RD QTR AC 0633 7/31/97 16770 40,000 .00 3 ,636 .36 ARROW FREIGHT CORP. 3RD QTR AC 0633 7/31/97 16773 30 ,000 .00 2 ,727 .27 ARROW FREIGHT CORP. 3RD QTR AC 1701 7/17/97 103790 ARROW FREIGHT CORP. 3RD QTR AC 1701 7/17/97 103792 66 .87 6.08 ARROW FREIGHT CORP. 3RD QTR AC 1701 7/17/97 103798 17 ,390 .00 1,580 .91 ARROW FREIGHT CORP. 3RD QTR AC 1701 7/17/97 103812 AYALA BAIN INSURANCE 3RD QTR AC 1701 7/17/97 103818 266 .09 24.19 AYALA BAIN INSURANCE 3RD QTR AC 1701 7/18/97 103852 88 .00 8.00 AYALA BAIN INSURANCE 3RD QTR AC 1701 7/18/97 103858 AYALA BAIN INSURANCE 568.48 51 .68 AYALA BAIN INSURANCE 122.87 11 .17 AYALA BAIN INSURANCE 184.91 16.81 AYALA BAIN INSURANCE 88 .00 8.00 162.58 14.78

DECISION- 3RD QTR AC 1701 7/18/97 103877 388.41 35 .31 CTA CASE NO. 5934 3RD QTR AC 1701 7/21/97 103912 88 .00 8.00 PAGE 11 3RD QTR AC 1701 7/21/97 103914 88 .00 8.00 3RD QTR AC 1701 7/21/97 103916 9.65 AYALA BAIN INSURANCE 3RD QTR AC 1701 7/21/97 103920 106.15 8.00 AYALA BAIN INSURANCE 3RD QTR AC 1701 7/22/97 103938 88 .00 AYALA BAIN INSURANCE 3RD QTR AC 1'701 8/25/97 104834 52 .87 AYALA BAIN INSURANCE 3RD QTR AC 0261 6/25/97 43j 138 581 .57 177 .03 AYALA BAIN INSURANCE 3RD QTR AC 0261 7/10/97 435409 1,947 .33 2 ,222 .60 AYALA BAIN INSURANCE 3RD QTR AC 0261 7/28/97 435723 24,448 .58 3,146.02 AYALA BAIN INSURANCE 3RD QTR AC 0261 9/8/97 1053127 34 ,606.24 2,140.19 AYALA BAIN INSURANCE 3RD QTR AC 0261 9/8/97 1053167 23,542 .05 936 .10 AYALA BAIN INSURANCE 3RD QTR AC 0261 9/8/97 1037930 10 ,297 .08 1,895 .22 AYALA BAIN INSURANCE 3RD QTR AC 0261 9/8/97 0137933 20 ,847.42 AYALA BAIN INSURANCE 3RD QTR AC 0261 9/8/97 0138606 8.00 AYALA BAIN INSURANCE 3RD QTR AC 0261 9/8/97 0138766 88 .00 8.00 AYALA BAIN INSURANCE 3RD QTR AC 0261 9/8/97 0138770 88 .00 14.89 AYALA BAIN INSURANCE 3RD QTR AC 0261 9/8/97 0139290 163.75 8.00 AYALA BAIN INSURANCE 3RD QTR AC 0261 9/8/97 0139292 88 .00 8.00 AYALA BAIN INSURANCE 3RD QTR AC 0261 9/8/97 0139293 88 .00 8.00 AYALA BAIN INSURANCE 3RD QTR AC 0261 9/8/97 0139294 88 .00 8.00 AYALA BAIN INSURANCE 3RD QTR AC 0261 9/24/97 1060087 88 .00 45 .62 AYALA BAIN INSURANCE 3RD QTR AC 0633 7/17/97 1038206 501 .85 45.59 AYALA BAIN INSURANCE 3RD QTR AC 0261 7/31/97 501.49 2 ,896 .61 AYALA BAIN INSURANCE 3RD QTR AC 0261 8/31/97 561 31 ,862.73 8.00 AYALA BAIN INSURANCE 3RD QTR AC 0633 7/31/97 824 88 .00 5 ,600 .00 AYALA BAIN INSURANCE 3RD QTR AC 0633 8/31/97 f 51 61 ,600.00 5 ,600 .00 INT'L COMMUNICATION 3RD QTR AC 0261 8/12/97 824 61 ,600.00 9,781 .80 INT'L COMMUNICATION 3RD QTR AC 0261 9/19/97 107 ,599 .80 9,781 .80 INT'L COMMUNICATION 3RD QTR AC 0261 9/22/97 3552638 107 ,599 .80 668 .09 INT'L COMMUNICATION 3RD QTR AC 0261 6/18/97 1864017 7 ,349 .00 690 .27 PHILIPPINE AIRLINES 3RD QTR AC 0261 7/18/97 7, 593 .00 753 .45 PHILIPPINE AIRLINES 3RD QTR AC 0261 8/14/97 21348 8 ,288 .00 128.60 PHILIPPINE AIRLINES 3RD QTR AC 1701 9/1/97 131078 1,414 .60 126.50 PILl PI NO TELEPHONE 3RD QTR AC 1701 4/30/97 131269 1,391 .50 122.60 PILl PI NO TELEPHONE 3RD QTR AC 1701 4/30/97 1,348 .60 418 .29 PILl PI NO TELEPHONE 4,601.19 1,022 .73 SKYLAND BROKERAGE 11 ,250.00 14.20 SYCIP , SALAZAR 156.25 SYCIP , SALAZAR 132,516.23 Subtotal for 3rd quarter p 1,457,677.96 p 363 .64 219 .22 ADC GENERAL 4TH QTR AC 0451 11/7/97 0046 p 400.00 p ARTHUR RODRIGUEZ 4TH QTR AC 0451 2,41 1.45 20 .77 AYALA BAIN INSURANCE 4TH QTR AC 1701 10/1/97 0059 17.24 AYALA BAIN INSURANCE 4TH QTR AC 1701 228.47 AYALA BAIN INSURANCE 4TH QTR AC 1701 9/18/97 1057513 189 .64 8.95 AYALA BAIN INSURANCE 4TH QTR AC 1701 32 .87 AYALA BAIN INSURANCE 4TH QTR AC 1701 9/18/97 1057515 98.45 41 .56 AYALA BAIN INSURANCE 4TH QTR AC 1701 361 .57 10.99 AYALA BAIN INSURANCE 4TH QTR AC 1701 9/18/97 1057516 457 .16 37 .55 AYALA BAIN INSURANCE 4TH QTR AC 1701 120.89 AYALA BAIN INSURANCE 4TH QTR AC 1701 9/19/97 1o5�, 527 413 .05 8.00 AYALA BAIN INSURANCE 4TH QTR AC 1701 34 .05 AYALA BAIN INSURANCE 4TH QTR AC 1701 9/22/97 1057588 88.00 AYALA BAIN INSURANCE 4TH QTR AC 1701 374.55 8.00 AYALA BAIN INSURANCE 4TH QTR AC 1701 9/22/97 1058567 8.00 88 .00 32.43 9/22/97 1058568 88 .00 41 .91 356 .73 9/22/97 1058627 461 .01 9/22/97 1058647 9/22/97 1058687 9/22/97 1058727 9/22/97 1058747 9/22/97 1058767

DECISION- 4TH QTR AC 1701 9/24/97 1060107 63 .80 5.80 CTA CASE NO. 5934 4TH QTR AC 0632 7/22/97 10855 32 ,300.00 2,936.36 PAGEI2 4TH QTR AC 0633 9/30/97 1090 107 ,599 .80 9,781.80 4TH QTR AC 0633 11/30/97 1633 107 ,599 .80 9,781 .80 AYALA BAIN INSURANCE 4TH QTR AC 0~61 9/30/97 1090 57 ,127 .99 5,193.45 CAPITOL PUBLISHING 4TH QTR AC 0261 11/31/97 1358 61 ,600.00 5,600 .00 INTL COMMUNICATION 4TH QTR AC 0261 11/30/97 1033 61 ,600.00 5,600 .00 INTL COMMUNICATION 4TH QTR AC 0644 12/17/97 039 76 ,156 .44 6 ,923 .31 INTL COMMUNICATION 4TH QTR AC 0644 12/4/97 190 75 ,277 .82 6,843.44 INTL COMMUNICATION 4TH QTR AC 0644 11/22/97 189 74,812 .88 6,801 .17 INTL COMMUNICATION 4TH QTR AC 0644 11/3/97 0429 59 ,519.52 5,410 .87 JOMECA DETECTIVE INV. 4TH QTR AC 0451 10/17/97 745000 41 ,483.64 3,771 .24 JOMECA DETECTIVE INV. 4TH QTR AC 0644 12/31/97 341 18,600.00 1,690 .91 JOMECA DETECTIVE INV. 4TH QTR AC 0644 12/15/97 336 18 ,600 .00 1,690 .91 LIGHT SECURITY 4TH QTR AC 0644 1/25/97 332 18,600.00 1,690 .91 PHIL-FUJI 4TH QTR AC 0644 1/14/97 328 18 ,600 .00 1,690.91 RUBIE INTEL RUBIE INTEL 76,298.06 RUBIE INTEL RUBIE INTEL INPUT VAT Subtotal for the 4th quarter p 835,678.66 p 18.18 (b) Invoices/official receipts not in the name of Benguet Corporation 5 ,609 .09 2,881.82 QTR. ACCOUNT REFERENCE INVOICE INVOLVED NO. AMOUNT 158.18 SUPPLIER NO. DATE 136.36 477 . 18 ASCENDING RAY CORP. 3RD QTR 1705 7/11/97 3f 970 p 200.00 p 2,223 .28 AQUINO ENTERPRISES 3RD QTR IRISAN 10/16/97 0398 61 ,700.00 268 .87 AQUINO ENTERPRISES 3RD QTR IRISAN 10/30/97 0309 31 ,700.00 BAGUIO JBL SCHOOL 3RD QTR IRISAN 1302 20 .33 BAGUIO JBL SCHOOL 3RD QTR IRISAN 9/5/97 1300 1,740 .00 6.77 BAGUIO METROPOLITAN 3RD QTR IRISAN 8/30/97 10761 1,500.00 BAGUIO METROPOLITAN 3RD QTR IRISAN 8/6/97 10760 5 ,249 .00 12 .73 BAGUIO METROPOLITAN 3RD QTR IRISAN 8/6/97 10793 24 ,456 .05 235 .00 BENSO WINNER 3RD QTR AC 1705 8/11/97 34046 2 ,957 .60 109.09 BOTICAZOR 3RD QTR AC 1705 8/28/97 84147 COLORITE 3RD QTR AC 1705 8/7/97 2739 223 .65 54 .55 COMML FREIGHT SERVICE 3RD QTR AC 0450 2/14/97 9896 74 .50 127.27 CONSOLIDATED INDUS. 3RD QTR IRISAN 7/3/97 2169 CONSOLIDATED INDUS. 3RD QTR IRISAN 8/12/97 2164 140.00 17.27 CONSOLIDATED INDUS. 3RD QTR IRISAN 8/11/97 2421 2,585.00 17.27 DAIRES TRADING 3RD QTR AC 1705 9/11/97 22924 1,200.00 DAIRES TRADING 3RD QTR AC 1705 8/13/97 22876 3.91 DOUBLE HAPPINESS 3RD QTR AC 1705 8/6/97 26740 600 .00 REST. 7/5/97 1,400 .00 11.45 DOUBLE HAPPINESS 3RD QTR AC 1705 2(761 REST. 7/1/97 190.00 11 .18 DOUBLE HAPPINESS 3RD QTR AC 1705 26783 190.00 REST. 7/3/97 43 .00 13.36 DOUBLE HAPPINESS 3RD QTR AC 1705 27590 REST. 7/31/97 126.00 215 .82 EUROPA PARTS & ACCES. 3RD QTR IRISAN 66285 65.45 EUROPA PARTS & ACCES . 3RD QTR IRISAN 6/29/97 66429 123.00 20.45 EUROPA PARTS &ACCES. 3RD QTR IRISAN 7/22/97 66949 8.70 F & B INTL INC. 3RD QTR AC 1705 9/22/97 33943 147.00 8.91 FARMACIA CASTILLO 3RD QTR AC 1705 1/27/97 64163 15.00 FARMACIA CASTILLO 3RD QTR AC 1705 3/2/97 78053 2,374 .00 9.09 FARMACIA CASTILLO 3RD QTR AC 1705 8/2/97 78054 720 .00 8/2/97 225 .00 95 .75 98 .00 165.00 100.00

DECISION- CTA CASE NO . 5934 PAGE 13 FARMACIA CASTILLO 3RD QTR AC 1705 8/8/97 78780 100.00 9.09 FARMACIA CASTILLO 3RD QTR AC 1705 9/5/97 81674 155.00 14.09 FARMACIA VENTURA 3RD QTR AC 1705 5/31/97 96343 259.45 23 .59 FARMACIA VENTURA 3RD QTR AC 1705 5/31/97 96341 FARMACIA VENTURA 3RD QTR AC 1705 7/17/97 96847 40 .00 3.64 FARMACIA VENTURA 3RD QTR AC 1705 8/11/97 97 189 235 .00 21 .38 FARMACIA VENTURA 3RD QTR AC 1705 8/6/97 97120 FARMACIA VENTURA 3RD QTR AC 1705 9/11/97 97184 66 .60 6.24 FARMACIA VENTURA 3RD QTR AC 1705 8/14/97 97232 149.50 13.59 FARMACIA VENTURA 3RD QTR AC 1705 8/14/97 97266 FARMACIA WILMA INC 3RD QTR AC 1705 8/14/97 347621 61 .20 5.56 FXR ENTERPRISES 3RD QTR AC 1701 7/2/97 60.25 5.48 GABBY & ELLEN REST. 3RD QTR AC 1705 7/7/97 291 182 .20 16.56 GABBY & ELLEN REST. 3RD QTR AC 1705 6/28/97 8443 397 .80 36 . 16 GEMINI AUTO SUPPLY 3RD QTR AC 1705 8/7/97 8712 309 ,078.96 28 ,098 .09 GOLDEN CIRCLE , INC. 3RD QTR AC 1705 6/30/97 42497 275 .00 25 .00 HOLIDA YLAND 3RD QTR AC 1705 6/8/97 15028 140.00 12.73 JANET'S PHARMACY 3RD QTR AC 1705 7/3/97 11570 45 .00 4 .09 JANET'S PHARMACY 3RD QTR AC 1705 7/6/97 30126 144.88 13.17 JANET'S PHARMACY 3RD QTR AC 1705 6/28/97 30098 262 .00 23.82 JANET'S PHARMACY 3RD QTR AC 1705 6/25/97 30077 99 .75 9.07 JANET'S PHARMACY 3RD QTR AC 1705 8/7/97 30069 210 .00 19.09 JANET'S PHARMACY 3RD QTR AC 1705 8/24/97 30418 100.00 9.09 JV'S AUTO SUPPLY 3RD QTR AC 1705 8/19/97 30559 350 .00 31.82 KONG'S RESTAURANT 3RD QTR AC 1705 6/20/97 12275 25 .00 2.27 LA BOTICA 3RD QTR AC 1705 7/15/97 15...:206 615 .00 55 .91 LASER MKTG 3RD QTR IRISAN 6/30/97 236589 400 .00 36 .36 LASER MKTG 3RD QTR IRISAN 715197 25269 227 .00 20 .64 LASER MKTG 3RD QTR IRISAN 7/4/97 25375 135.80 12.35 LASER MKTG 3RD QTR IRISAN 7/8/97 25362 1,045 .00 95 .00 LASER MKTG 3RD QTR IRISAN 7/17/97 25413 99.25 9.02 LASER MKTG 3RD QTR IRISAN 8/15/97 25556 126.75 11 .52 LASER MKTG 3RD QTR IRISAN 7/29/97 25949 874 .50 79 .50 LASER MKTG 3RD QTR IRISAN 9/10/97 25718 208 .00 18.91 LRK GEN. MDSE 3RD QTR IRISAN 7/28/97 26343 105 .00 9.55 LRK GEN. MDSE 3RD QTR IRISAN 7/12/97 301 70.00 6.36 LRK GEN. MDSE 3RD QTR IRISAN 8/11/97 220 420.00 38 .18 LRK GEN. MDSE 3RD QTR IRISAN 8/16/97 0314 2,070.00 188.18 MAX RESTAURANT 3RD QTR AC 1705 7/3/97 0368 1,650.00 150.00 MERCURY DRUG 3RD QTR AC 1705 7/26/97 143112 630 .00 57 .27 MERCURY DRUG 3RD QTR AC 1705 7/4/97 679645 1,200.00 109.09 MERCURY DRUG 3RD QTR AC 1705 7/5/97 82145 432 .30 39 .30 MERCURY DRUG 3RD QTR AC 1705 9/2/97 82368 805.50 73 .23 MERCURY DRUG 3RD QTR AC 1705 8/4/97 201\088 835 .75 75.98 MERCURY DRUG 3RD QTR AC 1705 8/4/97 31914 235 .50 21.41 MERCURY DRUG 3RD QTR IRISAN 8/5/97 1217492 104.85 9.53 MOSA ANGALA ENT. 3RD QTR AC 1705 8/13/97 16242 131 .50 1.23 NEW MASINLOC HENRY'S 3RD QTR AC 1705 7/14/97 20131 60 .25 5.48 NEW MASINLOC HENRY'S 3RD QTR AC 1705 8/13/07 93151 9 ,836 .00 894 .18 NEW SOUTH STAR DRUG 3RD QTR AC 1705 7/15/97 93292 2,170.00 197.27 PYRAMID HARDWARE 3RD QTR IRISAN 6/30/97 47543 276 .00 25.09 PYRAMID HARDWARE 3RD QTR IRISAN 7/17/97 17468 1,000 .00 90 .91 PYRAMID HARDWARE 3RD QTR IRISAN 7/29/97 17637 65 .05 5.91 PYRAMID HARDWARE 3RD QTR IRISAN 8/16/97 17687 4 ,989 .80 453 .62 17904 540 .00 49.09 8 ,764 .00 796 .73 1,270.00 115 .45

DECISION- CTA CASE NO. 5934 PAGE 14 PYRAMID HARDWARE 3RD QTR IRISAN 9/2/97 17942 1 ,080 .00 98.18 PYRAMID HARDWARE 3RD QTR IRISAN 8/22/97 17884 180.00 16.36 PYRAMID HARDWARE 3RD QTR IF< ISAN 9/5/97 17986 178.18 REDISOL INC. 3RD QTR IRISAN 7/1/97 4392 1,960 .00 463.64 ROSJ MKTG 3RD QTR IRISAN 7/10/97 2529 5,100.00 54 .55 SAN ANDRES CONCRETE 3RD QTR AC 1705 8/11/97 1&400 137.27 SAN FERNANDO MOTOWN 3RD QTR AC 1705 8/19/97 26772 600 .00 11 .55 SAN FERNANDO MOTOWN 3RD QTR AC 1705 8/20/97 26950 1,510 .00 SHAKEY'S EDSA 3RD QTR AC 1705 1/15/97 80544 7.91 SILAHIS MKTG 3RD QTR IRISAN 8/15/97 53579 127.00 11.44 SM SUPERMARKET 3RD QTR AC 1705 7/7/97 477903 87.00 590 .91 T & J CUSTOMBUILT 3RD QTR IRISAN 5/5/97 35529 15.43 TCY MACHINERY 3RD QTR IRISAN 7/8/97 1154 125.84 650.00 TCY MACHINERY 3RD QTR IRISAN 7/17/97 1183 6 ,500 .00 431 .82 TCY MACHINERY 3RD QTR IRISAN 8/5/97 1238 545.45 TCY MACHINERY 3RD QTR IRISAN 8/21/97 1285 169.75 218.18 TCY MACHINERY 3RD QTR IRISAN 9/13/97 1344 7,150.00 860 .00 TCY MACHINERY 3RD QTR IRISAN 9/18/97 1366 4 ,750 .00 65.45 TIONGSON DRUGSTORE 3RD QTR AC 1705 6/6/97 24338 6 ,000 .00 58 . 18 TOP ACE MOTORWORK 3RD QTR IRISAN 7/1/97 40125 2,400.00 26 .21 TOP ACE MOTORWORK 3RD QTR IR.ISAN 8/4/97 40205 9,460 .00 216 .67 TOP ACE MOTORWORK 3RD QTR IRISAN 8/27/97 40217 345.45 VG COMML II 3RD QTR AC {705 9/4/97 19585 720.00 103.64 WAN-WAN RESTAURANT 3RD QTR AC 1705 7/2/97 640 .00 ~9 288 .35 4 .55 Subtotal for the 3rd quarter 2 ,383 .35 29 .55 p 3,800.00 1' 140.00 50,053.00 ARRIAGA ALUMINUM 4TH QTR IRISAN 10/28/97 8996 p ATA AUTO SUPPLY 4TH QTR AC 1705 10/7/97 212238 50 .00 681 .82 BAGUIO JBL 4TH QTR IRISAN 10/6/97 325 .00 122.73 BENGUET-DIZON CON. 4TH QTR AC 0452 5/23/97 1328 BENSO WINNER CORP. 4TH QTR AC 1705 11/27/97 76004 550,699.23 p 54 .55 BLOSSOM'S PHARMACY 4TH QTR AC 1705 11/2/97 38380 88 .81 BLOSSOM'S PHARMACY 4TH QTR AC 1705 11/21/97 1588 7,500.00 p 25 .55 BLOSSOM'S PHARMACY 4TH QTR AC 1705 10/27/97 2957 1,350 .00 26 .36 CITIMOTORS, INC. 4TH QTR AC 1705 9/6/97 1209 14.55 CONSOLIDATED INDUS. 4TH QTR IRISAN 10/7/97 283806 600 .00 66.82 CONSOLIDATED INDUS. 4TH QTR IRISAN 10/18/97 2657 976 .90 22 .73 CONSOLIDATED INDUS. 4TH QTR IRISAN 11/29/97 2779 281 .00 54.55 CONSOLIDATED INDUS. 4TH QTR IRISAN 12/12/97 3072 290 .00 181.82 DAGUPAN HONEYBEE 4TH QTR AC 1705 11/30/97 3225 160.00 163.64 DOUBLE HAPPINESS 4TH QTR AC 1705 1/10/98 22196 735 .00 163.64 DY AUTO SUPPLY 4TH QTR AC 1705 10/17/97 32912 250 .00 86 .16 EUROPA PARTS 4TH QTR AC 1705 10/13/97 89 :.1 311 600 .00 11.82 F & B INT'L 4TH QTR AC 1705 11/5/97 38049 2 ,000 .00 19.27 FARMACIA ESPERANZA 4TH QTR AC 0452 10/2/97 42492 1,800 .00 77.27 FARMACIA ESPERANZA 4TH QTR AC 0452 10/4/97 1,800 .00 FARMACIA ESPERANZA 4TH QTR AC 0452 12/2/97 100 947 .75 8.41 FARMACIA ESPERANZA 4TH QTR AC 0452 12/2/97 8808 130.00 695 .55 FARMACIA MANIAGO 4TH QTR AC 1705 11/2/97 8833 212 .00 5,212 .10 FARMACIA VENTURINA 4TH QTR AC 1705 9/29/87 8837 850 .00 965 .96 FARMACIA VENTURINA 4TH QTR AC 1705 10/20/97 20365 655 .35 FARMACIA VENTURINA 4TH QTR AC 1705 10/3/97 97787 92 .50 GARBES-DIZON SERVITEK 4TH QTR AC 1705 9/24/97 97786 7,651 .00 54 .55 97697 57 ,333 . 10 15.95 29400 10 ,625 .60 15.45 7,208.85 27 .15 250 .00 600 .00 175.40 170.00 298 .65 2,750.00

DECISION- CTA CASE NO. 5934 PAG E 15 GARBES-DIZON SERVITEK 4TH QTR AC 1705 9/23/97 29373 450 .00 40 .91 JANET'S PHARMACY 4TH QTR AC 1705 10/30/97 31130 754 .00 68 .55 JANET'S PHARMACY 4TH QTR AC 1705 9/26/97 30854 370 .00 33.64 JANET'S PHARMACY 4TH QTR AC 1705 11/4/97 31059 JANET'S PHARMACY 4TH QTR AC 1705 11/5/97 3")64 81 .00 7.36 JANET'S PHARMACY 4TH QTR AC 1705 11/27/97 31322 90 .00 8.18 JVS AUTO SUPPLY 4TH QTR AC 1705 10/22/97 12789 225 .00 20.45 KAYANG COMML 4TH QTR AC 1705 11/28/97 110491 430 .00 39.09 KOLORMATE PAINT 4TH QTR AC 1705 9/1 2/97 55596 38 .00 3.45 MAC-BER AUTO SUPPLY 4TH QTR AC 1705 10/29/97 35689 680 .00 61 .82 MAC-BER AUTO SUPPLY 4TH QTR AC 1705 11/13/97 35927 224 .00 20 .36 MERCURY DRUG 4TH QTR AC 1705 10/10/97 33251 110.00 10.00 MERCURY DRUG 4TH QTR AC 1705 9/27/97 32582 66 .25 6.02 MERCURY DRUG 4TH QTR AC 1705 12/15/97 44676 66 .75 6.07 MERCURY DRUG 4TH QTR AC 1705 10/31/97 24434 204 .00 18.55 MUY BIEN FOODS CORP. 4TH QTR AC 1705 9/22/97 7485 108.80 9.89 SM SUPERMARKET 4TH QTR AC 1705 11/20/97 497660 73.25 6.66 ST. JOSEPH DRUGSTORE 4TH QTR AC 1705 11/3/97 330876 113.65 10.33 SUNSHINE LUNCH 4TH QTR AC 1705 9/30/97 176504 121 .25 11 .02 SYNERCON ENTRP. 4TH QTR AC 1705 87206 223 .00 20.27 TAMBAL ATBPA 4TH QTR AC 1705 917197 28057 260 .00 23.64 TAMBAL ATBPA 4TH QTR AC 1705 10/27/97 30720 165.00 15.00 TEXAS MANOK 4TH QTR AC 1"705 12/10/97 89844 200 .00 18.18 11/8/97 105.00 9.54 Subtotal for the 4th quarter p 112,546.70 p 10,231 .54 (c) Invoices/official receipts without "TIN", "V"/"VAT". INPUT VAT QTR. ACCOUNT REFERENCE INVOICE NO. AMOUNT 1,473 .36 SUPPLIER INVOLVED NO. 491 .12 ACR JANITORIAL 3RD QTR AC 1701 8/14/97 1864 p 16,206.93 p 6 ,995 .68 ACR JANITORIAL 3RD QTR AC 1701 9/2/97 1867 5,402 .31 6 ,810 .63 ACR JANITORIAL 3RD QTR AC 1701 912197 1871 ACR JANITORIAL 3RD QTR AC 1701 9/2/97 1872 76 ,952 .50 566.66 BAGUIO COUNTRY CLUB 3RD QTR AC 0615 6/30/97 063097 74,916.93 357 .11 BAGUIO COUNTRY CLUB 3RD QTR AC 0615 7/31/97 073197 27,033 .58 BUNTAK MINES 3RD QTR AC 1705 7/31/97 80 6 ,233 .31 CRIBEN PRINTING 3RD QTR AG 0645 6/24/97 3440 3,928 .22 57.27 DOLOR HOTEL 3RD QTR AC 1705 7/3/97 4549 297,369.40 20 .00 DOLOR HOTEL 3RD QTR AC 1705 7/3/97 4548 20 .00 DOLOR HOTEL 3RD QTR AC 1705 7/3/97 4 150 630 .00 20 .00 DOLOR HOTEL 3RD QTR AC 1705 7/3/97 4522 220 .00 24.55 FXR ENTERPRISES 3RD QTR AC 1701 712197 290 220 .00 3 ,718 .96 FXR ENTERPRISES 3RD QTR AC 1701 7/2/97 292 220 .00 3,122.01 FXR ENTERPRISES 3RD QTR AC 1701 8/19/97 296 270 .00 2,360.96 FXR ENTERPRISES 3RD QTR AC 1701 9/11/97 298 40 ,908.52 1,221 .85 FXR ENTERPRISES 3RD QTR AC 1701 9/20/97 300 34 ,342.11 9,556 .39 FXR ENTERPRISES 3RD QTR AC 1701 9120197 301 25 ,970 .60 2 ,213 .98 MENDOZA BROS . RAD . 3RD QTR AC 0645 6/10/97 2631 13 ,440 .31 77.27 PENSIONNE VIRGINIA 3RD QTR AC 0633 6/30/97 5457 105,120.33 204 .55 SUBIC PROTECTORS 3RD QTR AC 1705 7/15/97 1652 24 ,353 .80 12,634.01 SUBIC PROTECTORS 3RD QTR AC 1705 8/16/97 1657 850 .00 12,636 .16 SUBIC PROTECTORS 3RD QTR AC 1705 7/31/97 1654 2 ,250 .00 13,478.57 138 ,974 . 14 138 ,997 .80 148 ,264 .32

DECISION- 3RD QTR AC 1705 9/ 1/ 97 1658 148,264.32 13,478.57 CTA CASE NO. 5934 3RD QTR AC 1705 9/16/97 1661 138,997.80 12 ,636 .16 PAGE16 p 1,443,303.65 p 131,209.40 SUBIC PROTECTORS SUBIC PROTECTORS 37,886.52 18 ,855 .78 Subtotal for the 3rd quarter 564 .55 BUNTAK MINES 4TH QTR AC 1705 Nov-97 081 p 416,751 .72 p 3,692.66 CRITERION MKTG 4TH QTR AC 0632 7/21 /97 207,412 .60 1,864 .46 DAGUPAN AIR PROD. 4TH QTR AC 1705 10/2 3/97 2843 FXR ENTRP 4TH QTR AC 0451 10/1/97 6,210.00 207 .16 FXR ENTRP 4TH QTR AC 0451 10/15/97 3844 40,619 .22 159 .55 FXR ENTRP 4TH QTR AC 0451 10/24/97 20,509 .10 NEW BAGUIO JOHNNY 4TH QTR AC 0645 10/16/97 303 35 .91 NEW BAGUIO JOHNNY 4TH QTR AC 0645 10/31/97 2,278 .78 10.00 NEW BAGUIO JOHNNY 4TH QTR AC 0645 10/13/97 305 1,755 .00 4.82 NEW BAGUIO JOHNNY 4TH QTR AC 0645 10/23/97 11 ,345.66 SUBIC PROTECTORS 4TH QTR AC 1705 12/1/97 306 395 .00 11 ,273.97 SUBIC PROTECTORS 4TH QTR AC 1705 11/15/97 110.00 11 ,327.74 SUBIC PROTECTORS 4TH QTR AC 1705 12/16/97 121 93 12 ,223 .92 SUBIC PROTECTORS 4TH QTR AC 1705 12/29/97 53.00 12 ,636 .16 SUBIC PROTECTORS 4TH QTR AC 1705 10/1/97 12026 124,802.28 12,636.16 SUBIC PROTECTORS 4TH QTR AC 1705 10/16/97 124 ,013 .64 13,460.65 SUBIC PROTECTORS 4TH QTR AC 1705 10/31 /97 12178 124,605 .12 134,463.12 148,185.67 12235 138 ,997 .80 138,997 .80 INPUT 1671 148 ,067.16 VAT 1669 3,600 .00 1673 18,181 .82 25 ,090 .91 1675 43,272 .73 1f63 INPUT 1E65 VAT 1667 6.81 13.50 Subtotal for the 4th quarter p 1,630,041.34 p 24 ,545.45 24 ,545.45 (d) Invoices/official receipts without BIR permit 43,617 .95 124.55 QTR. ACCOUNT RE!=<=RENCE INVOICE 440 .9 1 AMOUNT 25.45 SUPPLIER INVOLVED NO. DATE NQ, 2,166.82 CITIMOTORS INC 2,204 .97 3RD QTR AC 1705 43&362 p 39,600.00 p 1,730 .18 195.27 BENGUET BUILDERS 4TH QTR AC 1705 10/18/97 159 p 200,000 .00 p BENGUET BUILDERS 4TH QTR AC 1705 11/13/97 199 276,000 .00 Subtotal for the 4th quarter p 476,000.00 p (e) Without supporting document QTR. ACCOUNT REF.ERENCE INVOICE AMOUNT SUPPLIER INVOLVED NO. DATE .�o. ANITA'S DRUG 3RD QTR AC 1705 p 81.95 p BENGUET BUILDER'S 3RD QTR AC 1705 BENGUET MGT. 3RD QTR AC 0252 148.50 BENGUET MGT. 3RD QTR AC 0252 BENGUET MGT. 3RD QTR AC 0252 270 ,000.00 DIVINE MERCY 3RD QTR AC 0452 EDIFER'S TRADING 3RD QTR AC 1701 270,000 .00 FERNANDEZ ENTRP. 3RD QTR AC 0252 FERNANDEZ ENTRP. 3RD QTR AC 0252 479 ,7 97 .50 FERNANDEZ ENTRP. 3RD QTR AC 0252 FERNANDEZ ENTRP. 3RD QTR AC 0252 1,370.00 FERNANDEZ ENTRP. 3RD QTR AC 0252 4 ,850 .00 280 .00 23,835 .00 24 ,254 .68 19 ,032 .00 2,148 .00

DECISION - 3RD QTR AC 0252 8 ,920 .00 810 .91 CTA CASE NO . 5934 3RD QTR AC 0252 20 ,900 .00 1,900 .00 PAGEl ? 3RD QTR AC 0252 158 ,923 .18 14,447.56 3RD QTR AC 0252 216,478 .83 19,679 .89 FERNANDEZ ENTRP. 3RD QTR AC 0252 99 ,500 .81 9,045 .53 FIRST CORP. 3RD QTR AC 0252 227,001 .51 20,691 .05 GST PHILIPPINES 3RD QTR AC 0252 168,595.46 14,417.77 GST PHILIPPINES 3RD QTR AC 0252 322 ,026 .53 29 ,275 .14 GST PHILIPPINES 3RD QTR AC 0252 300,449 .01 27 ,313 .55 GST PHILIPPINES 3RD QTR AC 0252 233 ,804.08 21 ,254.92 GST PHILIPPINES 3RD QTR AC 1705 GST PHILIPPINES 3RD QTR AC 0452 135.00 12.27 GST PHILIPPINES 3RD QTR AC 1705 3,062 .00 278 .36 GST PHILIPPINES 3RD QTR AC 0252 JANET'S PHARMACY 3RD QTR AC 0252 68 .00 6.18 JCL'26 AUTO SUPPLY 3RD QTR AC 0615 6 ,264.00 569 .45 JOLIBBEE UNIWIDE 3RD QTR AC 0615 2 ,808.00 255.27 MACRO HARDWARE 3RD QTR AC 0615 59 ,540.20 5,412 .75 MACRO HARDWARE 3RD QTR AC 1705 74 ,249.07 6 ,749 .92 MERCURY DRUG 3RD QTR AC 0252 99 ,950.84 9,086.44 MERCURY DRUG 3RD QTR AC 0252 15 ,900 .00 1,445.45 MERCURY DRUG 3RD QTR AC 0252 725 ,898 .25 65 ,990 .75 NEW SOUTH STAR 3RD QTR AC 0252 181 '170.00 16,470.00 PHIL. EXPLOSIVES 3RD QTR AC 0252 181 '170.00 16,470.00 PHIL. EXPLOSIVES 3RD QTR AC 0252 179,492.50 16 ,317 .50 PHIL. EXPLOSIVES 3RD QTR AC 0252 401 ,555.00 36 ,505 .00 PHIL. EXPLOSIVES 3RD QTR AC 0252 164 ,395 .00 14 ,945 .00 PHIL. EXPLOSIVES 3RD QTR AC 0252 164 ,395 .00 14 ,945 .00 PHIL. EXPLOSIVES 3RD QTR AC 0252 5,350 .00 486 .36 PHIL. EXPLOSIVES 3RD QTR AC 0645 3,351 .00 304 .64 POWERLOCK INDUS. 3RD QTR AC 0252 11 ,080.00 1,007 .27 POWERLOCK INDUS. 2 ,250 .00 204 .55 POWERLOCK INDUS. 3RD QTR AC 0450 73 ,338.00 6 ,667 .09 RICMAR DIESEL CTR. SIMPLEX 2,255 .00 205 .00 MERCHANDISING UNION TRANSPORT 472,787 .88 Subtotal for the 3rd quarter p 5,210,073.90 p 527 .27 3.38 ARCHILLES MFG 4TH QTR AC 1702 p 5,800.00 p 3.38 FAIRCARGO 4TH QTR AC 0261 3.38 FAIRCARGO 4TH QTR AC 0261 37 .13 FAIRCARGO 4TH QTR AC 0261 410.30 FXR ENTRP 4TH QTR AC 0451 37.13 800 .00 GLENNWOOD COML 4TH QTR AC 1702 7 ,898 .16 GO TRADER'S 4TH QTR AC 045 1 37 .13 1,697 .78 JCR GEN SERV 4TH QTR AC 0451 JMK MARKETING 4TH QTR AC 1705 4 ,513 .25 77.27 JOMECA DETECTIVE I 4TH QTR AC 0644 7,392 .91 LIGHT SECURITY 4TH QTR AC 0644 8 ,800 .00 10 ,623 .31 MERCURY DRUG CORP. 4TH QTR AC 1705 PILIPINAS SHELL 4TH QTR AC 1702 86 ,879 .76 5.72 PILIPINO TELEPHONE 4TH QTR AC 0644 296.40 PILIPINO TELEPHONE 4TH QTR AC 0644 18 ,675 .61 462 .02 PILTEL 4TH QTR AC 0451 1,588 .63 TAMBAL ATBPA 4TH QTR AC 1705 850 .00 138 .18 81 ,322.04 32 .73 116,856.45 62.95 3,260.40 5 ,085 .03 17,474.94 2,325.43 360 .00

DECISION - p 352,377.25 p 31,960 .82 CTA CASE NO. 5934 PAGE!& INPUT VAT Subtotal for the 4th quarter 2 ,470 .93 (f) Invoices/official receipts without an indicated date 793 .39 QTR. ACCOUNT REFERENCE INVOICE 1,547.57 NO. AMOUNT 266.32 SUPPLIER INVOLVED NO. DATE 2 0 8 .52 215.91 MOTHER & CHILD 4TH QTR AC 0452 65 p 27,180.25 p MOTHER & CHILD 4TH QTR AC 0452 8 ,727 .25 1,671 .89 MOTHER & CHILD 4TH QTR AC 0452 853 1,339 . 11 MOTHER & CHILD 4TH QTR AC 0452 17 ,023 .25 2 ,616 .89 MOTHER & CHILD 4TH QTR AC 0452 854 2 ,929 .50 3 ,239.84 MOTHER & CHILD 4TH QTR AC 0452 2 ,293 .75 MOTHER & CHILD 4TH QTR AC 0452 855 2 ,375 .00 14,370.37 MOTHER & CHILD 4TH QTR AC 0452 MOTHER & CHILD 4TH QTR AC 0452 856 18 ,390 .75 INPUT MOTHER & CHILD 4TH QTR AC 0452 14 ,730 .25 VAT 857 28 ,7 8 5 .75 35 ,638 .25 2 ,858 .18 942 807 .27 943 3,252 .61 5,316.92 944 7,655.81 945 19,890.79 Subtotal for the 4th quarter p 158,074.00 p 2,413 .00 805 .60 (g) Non-VAT invoices/official receipts 3,218.60 QTR. ACCOUNT REFERENCE INVOICE NO. AMOUNT INPUT SUPPLIER INVOLVED NO. DATE VAT MADRIGAL-WAN HAl 3RD QTR AC 0261 8/5/98 0378 p 31 ,440.00 p 1,044 .67 MADRIGAL-WAN HAl 3RD QTR AC 0261 8/5/98 0379 8 ,880 .00 63.18 UNION GAS HAULING 3RD QTR AC 0261 6/17/97 658 UNION GAS HAULING 3RD QTR AC 0261 717197 664 35 ,778 .73 116.82 UNION GAS HAULING 3RD QTR AC 0261 9/8/97 680 58 ,488 .17 69 .55 84 ,213.92 85.45 55 .00 Subtotal for the 3rd quarter p 218,800.82 p 99 .55 20 .91 BENGUET CORP. 4TH QTR AC 0452 10/2/97 4153 26 ,543 .00 BENGUET CORP. 4TH QTR AC 0452 10/2/97 4167 8,861 .60 158.64 133.86 Subtotal for the 4th quarter p 35,404.60 p 75 .64 (h) Not within the period of claim QTR. ACCOUNT REFERENCE INVOICE NO. AMOUNT SUPPLIER INVOLVED NO. DATE BBC COMML TRUCKING 3RD QTR AC 1705 3/8/97 105 p 11 ,491 .35 p FARMACIA CASTILLO 3RD QTR AC 1705 5/22/97 695 .00 FARMACIA CASTILLO 3RD QTR AC 1705 9/18/97 77103 FARMACIA CASTILLO 3RD QTR AC 1705 6/18/97 1,285 .00 FARMACIA CASTILLO 3RD QTR AC 1705 6/10/97 77225 765 .00 FARMACIA CASTILLO 3RD QTR AC 1705 6/7/97 940 .00 FARMACIA CASTILLO 3RD QTR AC 1705 5/22/97 77226 605 .00 FARMACIA CASTILLO 3RD QTR AC 1705 6/11/97 FARMACIA CASTILLO 3RD QTR AC 1705 5/29/97 77228 1,0 9 5 .00 FARMACIA CASTILLO 3RD QTR AC 1705 6/12/97 230 .00 FARMACIA CASTILLO 3RD QTR AC 1705 6/20/97 77229 4 ,745 .00 77107 1,472 .50 77230 832 .00 77232 77233 77234

DECISION- 3RD QTR AC 1705 5/22/97 77106 1,445.00 131 .36 CTA CASE NO. 5934 3RD QTR AC 1705 5/22/97 77105 2 ,153 .00 195.77 PAGE \9 3RD QTR AC 1705 5/22/97 77104 3RD QTR AC 1705 6/18/97 77224 288 .00 26 .18 FARMACIA CASTILLO 3RD QTR AC 1705 3/8/97 1036 1,335 .00 121 .36 FARMACIA CASTILLO 3RD QTR AC 1705 2/19/97 2583 90 ,588 .30 8 ,235 .30 FARMACIA CASTILLO 3RD QTR AC 1705 2/4/97 2578 91,606 .80 8 ,327 .89 FARMACIA CASTILLO 3RD QTR AC 1705 2/13/97 2592 99,785 .80 9,071.44 GEOMETRIC CONS. 3RD QTR AC 1705 2/3/97 91 ,748 .60 8 ,340 .78 GEOMETRIC CONS. 3RD QTR AC 1705 5/20/97 119 11 ' 109.37 1,009 .94 GEOMETRIC CONS. 3RD QTR AC 1705 6/20/97 255 11 ' 109.37 1,009 .94 GEOMETRIC CONS. 3RD QTR AC 1705 6/20/97 312 11 ,109.37 1,009 .94 GRAM COMPUTER 3RD QTR AC 1701 2/26/96 313 11 ,109.37 1,009 .94 GRAM COMPUTER 3RD QTR AC 1702 5/14/97 157 38 ,280 .00 3 ,480 .00 GRAM COMPUTER 3RD QTR AC 1702 5/14/97 23828 17 ,310 .00 1,573 .64 GRAM COMPUTER 3RD QTR AC 1702 6/2/97 23829 GRAYBAR MKTG 3RD QTR AC 1702 6/20/97 24126 948 .00 86 .18 MACRO HARDWARE 3RD QTR AC 1705 5/20/97 24429 2 ,300 .00 209 .09 MACRO HARDWARE 3RD QTR AC 1705 5/20/97 92270 10 ,800 .00 981.82 MACRO HARDWARE 3RD QTR AC 1705 6/20/97 9 ~ 271 MACRO HARDWARE 3RD QTR AC 1705 6/3/97 92850 520 .00 47 .27 NEW MASINLOC 3RD QTR AC 1705 5/20/97 92317 6 ,830.00 620 .91 NEW MASINLOC 3RD QTR AC 1705 5/28/97 92272 3,200.00 290 .91 NEW MASINLOC 3RD QTR AC 0252 6/5/97 92269 1,340.00 121 .82 NEW MASINLOC 3RD QTR AC 1702 6/30/97 598 2,208.00 200 .73 NEW MASINLOC 3RD QTR AC 1705 4/15/97 0009 NEW MASINLOC 3RD QTR AC 0615 6/11/97 1185 600 .00 54 .55 NORDBERG PHILS 3RD QTR AC 1702 8/1/96 36827 12,100.00 1,100.00 PAULIRENZ RUBBER 3RD QTR AC 1702 9/11/96 2947 36 ,875 .00 3,352 .27 PHILGERMA MFG 3RD QTR AC 1702 6/16/97 3105 SYDEHAM PHARMA. 3RD QTR AC 1702 6/23/97 3351 5 ,937 .20 539.75 VF INDUSTRIAL SALES 3RD QTR AC 1702 6/23/97 3352 1,666.46 151 .50 VF INDUSTRIAL SALES 3RD QTR AC 0615 4/28/97 3353 38 ,840 .00 3,167.27 VF INDUSTRIAL SALES 3RD QTR AC 0615 4/28/97 630013 18 ,037 .50 1,639.77 VF INDUSTRIAL SALES 630014 25 ,727.35 2,338 .85 VF INDUSTRIAL SALES 6/24/97 35 ,793.75 3,253 .98 ZUELLIG INSURANCE 6/24/97 35,268 .75 3,206 .25 ZUELLIG INSURANCE 6/24/97 45 .00 4/28/97 495.00 2 ,085 .31 5/2/97 22,938 .41 8/27/96 Subtotal for the 3rd quarter 9/13/96 p 765,559.25 p - -6-8,9-59.9-8 1/7/97 BENGUETRADE, INC. 4TH QTR AC 1705 5/14/97 014 p 189,145.00 p 17,195.00 BENGUETRADE, INC . 4TH QTR AC 1705 6/25/97 189,145.00 17,195.00 BENGUETRADE, INC . 4TH QTR AC 1705 3/13/98 013 189,145.00 17,195.00 BONAVENTURE GRAPHIC 4TH QTR AC 0632 3/14/97 CAPITOL PUBLISHING 4TH QTR AC 0632 015 21 ,360.00 1,941.82 DIZ-MAC INSURANCE 4TH QTR AC 0633 6/17/97 32 ,300.00 2 ,936 .36 DIZ-MAC INSURANCE 4TH QTR AC 0633 2/21/96 00301 DIZ-MAC INSURANCE 4TH QTR AC 0633 3/18/96 550.00 50 .00 DIZ-MAC INSURANCE 4TH QTR AC 0633 6/18/96 7680 33 ,788.70 3,071 .70 DIZ-MAC INSURANCE 4TH QTR AC 0633 MEDAL PRINTERS 4TH QTR AC 0632 7126 1,017 .50 92 .50 PACIFIC OFFICE 4TH QTR AC 0615 118,053.40 10 ,732 .13 MACHINES 7183 R. CERVANTES ENG'G 4TH QTR AC 0452 22 ,000.00 2 ,000 .00 ZUELLIG INSURANCE 4TH QTR AC 0633 7502 6,866 .75 624 .25 ZUELLIG INSURANCE 4TH QTR AC 0633 1,430 .00 130.00 ZUELLIG INSURANCE 4TH QTR AC 0633 8043 8166 2266 47339 20503 15 ,500 .00 1,409.09 608279 172 ,975 .00 15 ,725 .00 609782 614494 3 ,160 .19 287 .29 664 .29 60 .39

DEC I S I O N - 4TH QTR AC 0633 1/8/97 623901 3,160.19 287 .29 CTA CASE NO. 5934 4TH QTR AC 0633 2/18/97 625898 172 ,975 .00 15,725.00 PAGE 20 4TH QTR AC 0633 2/28/97 626743 4TH QTR AC 0633 2/28/97 626744 8,018.98 729 .00 ZUELLIG INSURANCE 4TH QTR AC 0633 4/16/97 629281 1,056.00 96 .00 ZUELLIG INSURANCE 4TH QTR AC 0633 4/29/97 629899 9 ,007 .06 ZUELLIG INSURANCE 4TH QTR AC 0633 4/30/97 629904 2 ,586 .55 818 .82 ZUELLIG INSURANCE 4TH QTR AC 0533 5/31/97 632492 7 ,647 .73 235 .14 ZUELLIG INSURANCE 4TH QTR AC 0633 5/31/97 63?499 695 .25 ZUELLIG INSURANCE 4TH QTR AC 0633 6/11/97 633027 539 .00 ZUELLIG INSURANCE 4TH QTR AC 0633 6/23/97 633915 990 .00 49 .00 ZUELLIG INSURANCE 4TH QTR AC 0633 6/25/97 633952 552 .29 90 .00 ZUELLIG INSURANCE 4TH QTR AC 0633 6/25/97 633957 1,056 .00 50 .21 ZUELLIG INSURANCE 4TH QTR AC 1701 12/29/94 589070 5,730 .35 96.00 ZUELLIG INSURANCE 4TH QTR AC 1701 6/14/95 596944 9,326 .46 520 .94 ZUELLIG INSURANCE 4TH QTR AC 1701 7/14/95 598464 655 .93 847.86 ZUELLIG INSURANCE 4TH QTR AC 1701 8/18/95 600266 2,028 .51 59.63 ZUELLIG INSURANCE 4TH QTR AC 1701 3/18/96 609782 655 .93 184.41 ZUELLIG INSURANCE 4TH QTR AC 1701 10/22/96 621068 2,028 .51 59 .63 ZUELLIG INSURANCE 4TH QTR AC 1701 10/22/96 621069 187.88 184.41 ZUELLIG INSURANCE 4TH QTR AC 1701 10/23/96 621294 234 .30 17.08 ZUELLIG INSURANCE 4TH QTR AC 1701 1/8/97 623901 132.00 21 .30 ZUELLIG INSURANCE 4TH QTR AC 1701 4/24/97 629787 256.30 12 .00 ZUELLIG INSURANCE 4TH QTR AC 1701 4/30/97 629903 256 .30 23 .30 ZUELLIG INSURANCE 4TH QTR AC 1701 5/9/97 630979 3 ,278 .00 23 .30 ZUELLIG INSURANCE 4TH QTR AC 1701 5/15/97 631313 4,081 .11 298 .00 ZUELLIG INSURANCE 4TH QTR AC 1701 5/27/97 631430 357 .50 371 .01 ZUELLIG INSURANCE 4TH QTR AC 1701 6/11/97 62'1280 2,799 .83 325 .00 ZUELLIG INSURANCE 4TH QTR AC 1701 6/16/97 633416 8,678 .85 254 .53 ZUELLIG INSURANCE 4TH QTR AC 1701 6/30/97 634699 1,188.00 788 .99 ZUELLIG INSURANCE 770 .00 108.00 ZUELLIG INSURANCE 1,188.00 70 .00 ZUELLIG INSURANCE 108.00 ZUELLIG INSURANCE 113,794.63 Subtotal for the 4th quarter p 1,248,523.39 p INPUT (i) Pre-printed "TIN"f'V"/"VAT" after July 31, 1991 VAT QTR. ACCOUNT REFERENCE INVOICE 26,061 .68 NO. AMOUNT 18,202 .06 SUPPLIER INVOLVED NO. 9,704 .75 BEGONSA CONS . 3RD QTR AC 0251 8/15/97 1071 p 286,678.48 p 10,591 .27 BEGONSA CONS. 3RD QTR AC 0251 8/23/97 1073 200 ,222 .7 1 26,031 .85 BEGONSA CONS. 3RD QTR AC 0251 9/13/97 1075 106 ,752 .30 10 ,885 .72 BEGONSA CONS. 3RD QTR AC 0251 9/27/97 1076 116 ,503 .95 BEGONSA CONS. 3RD QTR AC 0251 7/9/97 1069 286 ,350 .32 9,495 .24 BEGONSA CONS. 3RD QTR AC 0251 7/29/97 1070 119 ,742 .90 572 .73 BEGONSA CONS. 3RD QTR AC 0251 8/1/97 1072 104 ,447 .62 261 .27 FERNANDEZ ENTRP. 3RD QTR AC 0645 6/17/97 261 .27 FERNANDEZ ENTRP. 3RD QTR AC 0645 7/4/97 4~52 6,300 .00 572 .73 FERNANDEZ ENTRP. 3RD QTR AC 0645 7/4/97 2,874 .00 286 .36 FERNANDEZ ENTRP. 3RD QTR AC 0645 7/19/97 4:.166 2,874 .00 290 .91 FERNANDEZ ENTRP. 3RD QTR AC 0645 7/16/97 4265 6,300 .00 FERNANDEZ ENTRP. 3RD QTR AC 0645 7/24/97 4271 3,150.00 1,570 .00 FERNANDEZ ENTRP. 3RD QTR AC 0645 8/12/97 4270 3,200 .00 574 .18 FERNANDEZ ENTRP. 3RD QTR AC 0645 8/14/97 4274 17 ,270 .00 287. 09 FERNANDEZ ENTRP. 3RD QTR AC 0645 8/18/97 4281 6 ,316 .00 4284 3,158.00 4288

DECISlON - CTA CASE NO . 5934 PAGE 2 1 FERNANDEZ ENTRP. 3RD QTR AC 0645 8/26/97 4296 6 ,040 .00 549 .09 FERNANDEZ ENTRP. 3RD QTR AC 0645 8/29/97 4299 5,361 .00 487 .36 FERNANDEZ ENTRP. 3RD QTR AC 0645 9/2/97 4300 FERNANDEZ ENTRP. 3RD QTR AC 0645 8/19/97 4291 480 .00 43 .64 FERNANDEZ ENTRP. 3RD QTR AC 0645 8/19/97 4292 6,477.00 588 .82 8 ,016 .00 728 .73 Subtotal for the 3rd quarter p 1,298,514.28 p 118,046.75 BEGONSA CONS. 4TH QTR AC 0251 10/3/97 1077 72 ,060.60 6 ,550 .96 BEGONSA CONS. 4TH QTR AC 0251 10/11/97 1079 133 ,785 .74 12 ,162 .34 BEGONSA CONS. 4TH QTR AC 0251 10/20/97 1080 BEGONSA CONS . 4TH QTR AC 0251 10/3/97 1078 15 ,023 .83 1,365 .80 FERNANDEZ ENTRP. 4TH QTR AC 0645 8/22/97 4294 5,056.48 459 .68 FERNANDEZ ENTRP. 4TH QTR AC 0645 9/17/97 2840 320 .00 29 .09 FERNANDEZ ENTRP. 4TH QTR AC 0645 9/17/97 2839 7 ,875 .00 715.91 FERNANDEZ ENTRP. 4TH QTR AC 0645 10/9/97 2881 FERNANDEZ ENTRP. 4TH QTR AC 0645 10/13/97 2884 15,100.00 1,372.73 FERNANDEZ ENTRP. 4TH QTR AC 0645 10/13/97 2885 3,432 .00 312 .00 FERNANDEZ ENTRP. 4TH QTR AC 0252 715197 2� 267 1,697.00 154.27 FERNANDEZ ENTRP. 4TH QTR AC 0252 7/16/97 4269 1,697 .00 154.27 FERNANDEZ ENTRP. 4TH QTR AC 0252 8/1/97 4276 FERNANDEZ ENTRP. 4TH QTR AC 0252 8/15/97 4286 53,261 .80 4,841 .98 FERNANDEZ ENTRP. 4TH QTR AC 0252 8/20/97 4293 280 .00 25.45 800 .00 72. 73 Subtotal for the 4th quarter p 620 .00 56 .36 33 ,636 .00 3,057 .82 344,645.45 p 31 ,331.39 (j) Invoice/official receipt twice recorded INPUT VAT QTR. ACCOUNT REFERENCE INVOICE INVOLVED NO. AMOUNT 3,633.52 SUPPLIER NO. DATE FRONTIER'S SEC & D.A. 3RD QTR AC 0615 9/10/97 91097 p 39,968.74 p (k) Overstatement of input tax claimed per invoices/official receipts QTR. ACCOUNT REFERENCE INVOICE INPUT INVOLVED NO. AMOUNT VAT SUPPLIER NO . DATE 6 ,985 .80 RENICA EARTHMOVERS 3RD QTR AC 1705 7/31/97 52 7,132.74 RENICA EARTHMOVERS 3RD QTR AC 1705 4 ,078 .11 RENICA EARTHMOVERS 3RD QTR AC 1705 181 ,677.50 VCP INTERMED 3RD QTR AC 1705 54 .55 104 ,833 .73 p 76,843.77 p 18,251 .20 78,460.19 9/1/97 53 44 ,859 .21 218 ,186 .50 600.00 139,726 .31 9/29/97 9 134,011 .75 89 ,152 .54 7/19/97 201567 861 7. 26 8017 .26 Subtotal for 3rd quarter p 200,763.17 p

DECISION- p 11,224,961.00 p 1,018,948.75 CTA CASE NO . 5934 p 5,193,291.39 p 472,663.81 PAGE 22 p 16,418,252.39 p 1,491,612.56 Total for the 3rd quarter Total for the 4th quarter Grand Total In fine, Petitioner is entitled to the refund of unutilized input VAT in a reduced amount of P13 ,531 ,670.26, computed as follows; Total Amount Claimed 3rd 4th Total Quarter Quarter p 16,185,725.99 Less : Disallowances p 12,592 ,011.34 p 3,593 ,714.65 (a) Per independent's CPA's verification p 797,122.78 p 343 ,923 .63 p 1,141 ,046 .41 472 ,663 .81 (b) Unreported sales 21 ,396.76 816 ,587 .44 21 ,396.76 (c) Per Court's verification 1,491 ,612.56 1,018 ,948 .75 Total Disallowances p 2,654,055.73 p 1,837,468.29 p Net Amount Refundable p 10,754,543.05 p 2, 777,127.21 p 13,531,670.26 WHEREFORE, in v1ew of the foregoing, the instant Petition for Review is hereby PARTIALLY GRANTED. Respondent is OR."'lERED to REFUND or ISSUE A TAX CREDIT CERTIFICATE in favor of Petitioner in the amount of P13 ,531 ,670.26. SO ORDERED. ~~ - O~...t- ERNESTo D. ACOSTA Presiding Judge

DECISION- CTA CASE NO. 5934 PAGE 23 WE CONCUR: y~ m;~~~~~e~ 'k:GA a-ut:;-C?. ~~A UANITO C. CASTANEDA, J Associate Judge CERTIFICATION I hereby certify that the above decision was reached after due consultation with the members ofthe Court of Tax Appeals in accordance with Section 13, Article VIII of the Constitution. L~. o~ ERNESTO D. ACOSTA Presiding Judge �