CTA Case No. 3717 (Decision)

r~ e p �.tb l i c o f t I )(~ r �h i 1. i p p i n P. s COURT OF TAX APPEALS Qu ezo n C i ty INVESTORS FINANCE CORPORATION, <For�erly FNCB Finance} P et i t i o n et~, C. T.A. CASE NO. 3717 COMMISSIONER OF INTERNAL REV ENUE, Respondent . X ---- ---------------------- X D E C 1: s 1: 0 N Th is is a c l aim fo t~ t ax c t~e d it i n the amou n t of P2,583 , 901.28 represe n ting t h e excess c t~ e d it a b 1 e in c om e taxes over th e in co me t ax du e from p etit ione r for taxabl e year 1981 whi c h we re deducte d a nd withheld b y v ar i ou s pa yers from petitioner ' s in c ome. The facts_as g athere d f r om th e rec ord s of the c a s e are stated below ; .J P e t i t i onet~, In v e s t cn~s� Fi n a nce form e r ly F NCB Fi n ance, i s a d o mestic corpo r atio n duly organized a nd aut h oriz ed to eng a g e i n t h e financing busine ss . It d et~ives i'ts income p r imarily ft~om fin a n c in g o f r ecei vables a n d e quipme n t l eas ing . For t a xa b le y e ar end ed December 3 1 , 19 B 1, petition et'' s annu a l corpo rate i n co me tax re t u r n whi c h wa s filed on Apt'i l 1982 s howe d a refunda ble am o unt of PE.,810, 2 54.09 . An a me nd e d r eturn was sub s equentl y filed ton Nov e mb et' :1.2, 1 982 to s h ow its t n .te i n c ome and d eductions i ncluding creditable inco me t axes f or th e 4lu

- DEC I SION ..... C. T . A. Ca s e No . 37 17 i~ -- taxahle year i n ques tion. T h e tota l ,:\ITJOI..m t l' efu n dable as a dju s t ed is P2 , 583,90 1.28 and this was arrived at as follol'ls; Taxabl e I nco~e p 5,684,438. 00 Corporate lncoee Tax 25,000. 00 1, 954 ,554. 00 p 1001000.00 X 25~ p 1, 979, 551t, 00 51584,438,00 X 35~ TOTAL TAX DUE Less : Previous Year' s Ta~ Credit 2, 113,627.35 !Net of TCC of P3,03915G7.94 grant~d by BIR l A~ount of Taw Credi t Availabl e for succeeding Ouaterly Inco�e Tax Less : 1981 Credit able Withho lding Tax 1 2, 449,827.93 t lUTIL AltUfl REF1.flDABlE !P 2,583,901.28 ) ================ lln Apr~ i-1 8, 1'383 , p et i"l~ ioner' t tw-ough !JG IJ an d Co mp a ny filed wi th the Bureau of Internal claim for tax credit i n the amount of P2,583 , 90 1.28. f i l e d or. J .:TIIH.\ i;H' y 5, 1 '3SL~ in l1 t ' Ch? 1�~ t 0 two - year period from t he d ate cf pay me n t of th e ta x within which to judicially c l aim for tax c re dit. In its answer (p. 17-20, CTA record s ), resp on d ent prayed for the dismissa l of the p e t it i on o n, a mong other grounds, that it states no cause o f acti on, that c lc.-dm fo r refund is p ending investigation, its r ight

�- DECI S ION - C. T.A. Case No. 3717 .7... ha s pt'esct'ibed, the a mount vJitt1held must be shown to have been paid to the gov er nm e nt; and burden of proof lies on the taxpayer to show that taxes paid were erroneously or illega lly collected. Heari ng s of this case were repeatedly p o s tpo ned, and the Court res olv e d to achieve it upon motion of petitioner's c ounsel, with conformity of respondent, on the ground that its claim fo r tax credit i s still being administt,atively pt'oces se d in the BIR. (p. 27, Wh en hearing was re sumed, p e t i t i o n e t' ' s new counsel formally offered as evidence its exhibits. <Se e li s t on p � 55-192, CTA, Re sp ondent inter posed no objection except for the purpo se for which they we re off er ed as evidence. Accot'dingly, the Court ad mitted the same wi thout prejudice to the .) Court' s evaluation of their probative valu e and purpose for whi c h they were offered as evidence . submitted by the revenue examiner d a ted May� 9, 1985 (p.220-221, BIR records) showed that aft er inve s tigation, petition er has incurred on income tax deficiency for the year 1981. Of the aliened credit a ble income taxes withheld for 1981 amounting to p;;:: , 583, 901. 28, the amount of P 2 ,449,8 2 7.93 h as been I applied against the deficiency in co me tax due after 4 1~

- DEC ISION - C.T.n. Case No. 3717 .) - 4- inve s tig atio n. In ad d ition , the amount of P134,073. 35 was found t o pertain to a prior year a nd wa s not a ppt'ov ed <BI R Recot'ds, page 22 ;~~) � A detailed computation is sho wn below: Net Inco1e Per Return p 5,684,438.00 Add: Unallowable Deductions 1,421,178.59 p 7,105,616.47 Interest expense dis llowed p. 1,382,000.54 2, 476, 966.00 Taxes and licenses disallowed 39,177.99 2,449,827.93 Net lnco�e p@r Investigation p 27,138.07 Inco1e Tax Due Thereon p 100,000.00 ~ 25~ 25, 000.00 p 7100541616.47 X 35~ 2, 451 ,%6.00 Less : 1981 Creditable Withholding Tax Per Return 2, 583, 901. 28 Less: Pertaining to prior year 134,073. 35 Deficiency Tax Per Investigation Th e only issue for res olution of this Court is whether or not"pet'ti oner is entitled to a tax credit of P2,583,901.28 representing excess creditable fncome taxe s for taxable year 1981. It is significant to note i s that in the investigation of peti tio n et' ' s clai m fot' tax ct'edit , ther e was instead found due from petitione~ allege d deficiency income tax which respondent automatically set-off against the amount c l ai med as excess creditable income tax. The result was t hat petitioner has no l onget~ any excess Ct'e di ta ble 'income tax but a defi ciency tax do..te . <Ibid.) 4 1~

�- DECISION -�- C.T.A. Case No. 37 17 �- 5 ..... The act of respondent smacks of whim or caprice . was arb it rar y disallowance of d t?d uct i bl e ex pen ses to create a defi ciency tax. No . chance ~-Jas even accorded to petitioner to re bu t the findin g s . element of due proce ss wa s s or e ly lacking. To free any g over nment ~ ! action from imputation of legal infit�mity stJff ic:i ent to sp 11 its doom, t her�e must exist, both as a pra Pdural an d subst a nt i ve requisite , clue rwo r.::ess. (�Y'Ilfita-Malate Hote l and Motel Operators nssociatjon v~ City Mayo,.~ , 20 SCR/1 8 49.) Collection of ta xes shou ld be made in accordance with law as any will negate the very t' t?a so n f Ot' govern me nt itself. (Reyes v. 111manzor, 196 SCRI1 322.) fixe s and determines th~ tax liability of a taxpayer. <Ar�anas, Upd at ed National I nt er�� na 1 Reve nue Co d e (7th eeL 1988) p.22 . ) Wi thOI..\t an asse ss m n-c, ther~ is no debt from taxpayer, and i s no obligation on his part which c a n be enfor-c ed in a n ction. <Galusha v. Wendt, U .4 Io~1a E,(I L~ . ) According ly, respondent ca nnot b e a l lowed to apply the tax credit claim ed a gainst the alleged deficiency tax wh ~n no asse s sme n t h as b e en made . In lik e manner that a t~Hp aye r cannot r efuse to pay a tax on the grou n d th at th~ gove rnment ow es him a n a mount equal to or greater th a n the tax being collected 41J

-- DECI S ION - C.T .A. Case No. 37 17 �- E. -- <F rancia v. Appellate Cou r t, G.R. No. 76749, June 28 , 1988)' the government ca nnot auto ma tically set-off a lleged deficiency tax against a claim for tax credit. What is sauce for the goo se is a l so sauce fot' the gancj et'. To borrow the words of the Supreme Court in the case of Collector v. University of Sto. Tomas, L - 1127'+, Novembet' c~ 8, 1958, citing the t'ea s on s non --a pplic a ti on of the doctt� ine of e quitable recoupment in our jurisdiction. X>< X X>< X ><><X "And thi s not With() IJt it s resu lt ing danger, because a Commissioner of Intern a l Revenue to play sa fe an d have a fund ava ilable fo r sa id se t -of f and recoupment of a tax which he h a d f a il ed and n e glect e d to coll~ct may be tempt e d to make illegal assessment and co ll ectio ns, a nd the taxpaye r would be helpless beca use however illega l and unauthorized the assess men t ma y be, the Commi ssi oner can always e nforce t h e sa me by 1 e v y and d i s t t' .:d. n t x x x � " XXX XXX XXX Premises considered, We do not beli eve that t'es pond e nt can be allowed to s et-off alleged defi c iency tax a gainst petitioner's clai m for tax ct�edit. To allow the same is fr a ught with d a nger a nd pl ace claimants of refund and/or tax c redit at the

- DECHJION ��- C.T.A. Case No. 3717 .., I the requisites for ent itl ement to refund are complied with. T i me and <.1 !J a i n t h i s Co '-ll' t h a~, t~ 1.1 1 e d t hat in c 1 a i ms f o r' t' e f u n d I t <:>. x c r' e cl i. t t) f e x c e s s ltJ i t h h o l d i n 0 taxes petitioner-taxpayer ne>ed only the following: (1) that i t fil~d a claim for refund within the ( now :::-~30) of the N;:~.tional In t~n-nctl Revenue Code; (2) that the income upon which the taxes were wit hhel d were in clud �i 'nth~ return of the r ecipie nt; and (3) the fa ct of withhoJdjng is established by ~ copy of statement IBIR Form 17431) duly issu ed by .) <withholding agent) to the payee 1 showing thf.? ~tl it hh e l d amount paid and ~he a moun t () f 1 �t h et~e ft�o m. I n t h e c: .:~ s e b e f o r' e u s , t h P. c 1 a j m f tH' {; a x c t' e d i t with the BIR and tha petition for rev iew with thP sea s onably filed on April 8 , 1983 and Janu cn~y 5, 1'38'~, t'espectively. These were well within the two -year prescriptive period within which to c l ai m a refund/tax credit which commences tn run at the e;;w l i Pst, on the date tlf ttHl filing of the finaJ tax l Sec.lO, Rev. R~g. No. 6-85; see Pas~o Realty Dev loptent C~rporat ion, CTA C;e No. 42541 Marc 241 1993; Ci ytrust Finance Corporati n v. The Co� ";s�oner of In rnal er 11 1 1991; c� y ru t R~venue, CTA Case No. 4134, No e1 Finance orporation (F r erly ce Corpor~tio IF !C FinancP) v. Co �iss ion l' f Intern l Reven�1e 1 ~ asP I'lvPs ors Fi'l CT 'o. 4046, Fe!Jruary 24, 1993) 42.i "

-- DECISION - C.T.A. Ca s e No. 3 717 - 8 �-- on Apt' i 1 5, 1. 98 ;::: . The p e t' i o d t h '" t lapsed betwe e n th e f i ling a nd c l a im s fot' r e fund/tax credit wa s less th a n tw o ye a rs. As to the requirement that the income upon which the taxe s were withheld were in c luded in the petitioner presen t ed as documentary eviden ct~ i. t s Annual Corpo ra t e Income Tax Re turn for 1981 ( Ot� i gin a 1 and Amended) tog e ther with the supporting schedules to establish such fact. (See E><hibits "NE", "NF", "NG", "NH", "NI ", and "NJ".) H en t a 1 and o t h ~~ t' income subject to the expa nded withholding tax were noted to have been reported as part of th e income for the year undet' t�eview. Pt� oof of withholding of taxes fat' 1981 submitted by petitione r consists of confit�mation t' eceipts, wi thholding tax returns and st a tements/certifica t es of ta x withh e ld. This has in many cases di s mis s ed the allegations of counsels for respondent that the ot h et' t' e q u i t' e me n t s such as the pre s entation of withholding t <'I. X t' e t u t' n s, offici a 1 t' e c t;! i pt s s h o ~�~in g t' em i t t an c e of taxes withheld by the withholding agent and verification by revenue enforcement officer have to be pt' e sent ed before the issuance of tax c t' e d i t It� e f u n d � I (c i t yt t'l..l s t Finance Corporation v. C o mmi s s i o n e t' o f

-- DE C I f.-J I 01\1 -- C. T.n. Ca s e No. 37 17 �-- '3 -�- I nt e~~na 1 Rev en�..te, CT A Case No. F e b ~� a 1��1 t' y 13'3 3 ; The P hilippine Am erican Life Insurance Company v. C n mmi s s i o n e t' o f Internal Revenue , e-rn Case No. November' 5, l3'31.; A. Soriano Corporation v. Commi ss i onet~ of Internal Revenue, CTA Case No. August 7, 1'391; Commonwealth Pacific Co n s ul tan ts Ltd. v . Comnli ssionet~ of Int erna l Revenue, CTA Case No . ;=:35.3' May 15 , 1 3 8 2 ; At en e o De f'r1 an i 1 a v � Com miss i orHn�~ of In t er�nal Revenue , CTA Case No. 321.3, July 28, l '38'3. ) E >< H i b i t s f.) t o Z , i n c lu s i v e a s ~o-1 e 1 1 a s E >< h i b i t s AA to PP , inc l usive were not considered by the si nce these e >< h :i. bit s p e t~t c.-d. n to c t'e c:li �tab l e income t c."\><es deducted~ wit hheld and re mitt ed by I nve s tot~s F in ance as a withholdi ng a gent. Withh o ld inn taxes not �~a >< ~?s d �.te fr~ t.J m the withholding agen '. Th e y a l'P incomC:' ta>< due fr�om t h e of �t he income p ;ayme nt a nd c t~ ed it able aga in s t the income t a x due them. deducted an d v-1ithheld by t he wi thholding agent .::n~ e held as s p e c i a 1 f u n d i n t t' u s t f o t ' t h e g o v e t' n me n t u Tl t i 1 p a i d t o the co lle ctin g cfficet'. (At' an<.:~~;, Updated Nati o n a i Revenue Code (7th ed. :1 9 88 ) .J I nt e t' n a l p. Petitioner ca nn ot c l aim them as i ts t1 wn c t' e d i. t a b l e 4� I - (__. l.)

- DECISION -- C.T.A. Case No. 37 17 - to ��- i n come taxes ~tJh i ch a pply C:\l]ai n st its t ax liabil ity. Ex hib its SS to ZZ, inclusive; Exhi b its AB to AZ, inclusive; Exhibits BA to BZ, inclusive and Exhi bit s CA to CF, inclu s iye were also disregarded by the Cou r t since th e receipts were i 11 the of individual s and nothing in the said rece ipts indi cate that th e amount for' the account of petitioner'. Exhibit CG is like wi se ignored for b eing a lett er o f receipts purp ortedly to payment of taxes withheld . To tal< e up the same would also n�~sul �l; in double ctntnt in g si n ce th e referr~d therei n form part o f the evide n ce prese nted in support of the claimed creditable income t C:\){ . Exhibits FG to FZ , incl usive as wel l as Exhibits GA to G~, inclu sive do not indi cate th e y e ;:::~t' the income subjected to wit hholding wa s earned . is no way to determine evidence pt'ese nt ed whet h er' the taxes withheld pertain to petition et'' s 198 1 income h e nce, they were d isall owed. Only the followin[~ e><hibi t s wer'e found to substanti ate petitioner' s claim of cred itabl e income taxes withh e ld by various payors, to wit: 4 '1 r..:.. �i:

���- DECT '3 IfJtl ���� C.T. n. Case? f'.IIJ. 3 7l7 -- l1 ���- Exhibit Withholding ~ In!! of Inco1e A1ount Tax Withheld CG1-a &b Carter Marketing, Inc. Lease Rental p 21, 8'33.85 p 1, 094.70 CG2-a &b Carter Marketing Ph il s. Inc. Lease Rent 1 21 , 8':!3. 85 1, 0'34. 70 CG3-a &b - do - Lease Rental 21,8'33.85 1,094. 70 CG4-a &b - do - LP.ase Rental 20,558. 25 I, 027.91 CG5-a &b - do - Lease Rental 20,558.25 1, 027.91 CG6-a &b - do - Lease Rental 20, 558.25 1,027.'31 CG7-a &b - do - Lease Rent al 20, 558.25 1, 027.91 CG8-a &b Carter Int'l. Corp. Leas e Rental 20, 558.25 1, 027. 90 CG9-a &b - do - Lease Rental 20,558.25 1,027.91 CGIO-a &b - do - Lease Re ntal 13,110. 55 '355.52 CG11-a & b - do - Lease Rent al 19,1 10.55 955.52 CG!2-a &b - do - Lease Rent al 13, 110.55 '355.52 CH A. H. Robins (Phi 1. l Co., Inc, Cat' Rental 111,812. 01 5,410. 77 CI - do - Ci!t' Rental 1llt,9 7.01 5, 71t5 , 84 CJ - do - Car Ren tal %,.42. 18 4, 832. 11 CK - do - Car Rental 1! 't, 230.6 5, 711.53 CL ASEA !Phi ls.) Inc. Lease 95,042.01 4.752.10 CM Autosphet�e, Inc. Car Rental 26,3'30.00 1, 31'3.50 CN - do - Car Rental 10,556.00 527.80 co Cartel' Mat�ket ing Phils.I nc. Lease Ren ta l 6, 71't.00 335. 70 CP - do - Lease ent al 7, 285.40 36'3.27 - do - Lease Rental 65,691. 55 3, 284.1 0 co CR - do - Leas R ntal 3,0'38. '31 454 .95 cs - do - Lease Rental �~, 693. BO 234. % CT - do - LPn R n 1 4,':101.00 245.05 cu cv - do - Lease Rentnl 15,337. 00 766. 84 cw - do - Lease Renhl ~,310 .55 215.52 ex - do - Lease R ent <~ l 4, 310.55 215.52 Carter Int'l. Corp. lease Rental 3,090.00 154. 50 CY - do - Lease Rental 13,468.80 67 3.4 4 cz Atla Copc:o (rh '1 s. l Inc. Rental 1,01 2,828 . 99 50 , 64 1.43 Dl1 A� lg a~a gd Cre Jeri es Corp. Rental 15,406 . 20 770.35 DB Beta C e ita! Supply Re ntal 121617. iO 630.90 1, 251 . 80 DC ~ do - Rent al 25,235,110 DE Black &Decke r Phils. Inc. Ren t al 4,192.50 209.64 DF - do - Rental LtO, 2G5. 00 2,018.28 DG Ci tibank N.A. EWT (sic) 55 ,650.00 28,432.50 DH - do - [l.IT (sit) 568,650.00 28, 432.50 DI - do - Rent<~! 568,650. 00 28, 432.50 OJ - do - EWT (si c) 8,400.00 420.00 DK - do - EWT (si c) 8,400. 00 420.00 DL - do - Rental 8, 400.00 420. 00 DM - do - EWT (sic ) 8,400.00 420.00 DN - do - EWT (si c) 8, 400.00 420.00 DO - do - WT (sic) 8, 400.00 420.00 DP - do - Rental 8,400.00 420.,00 DO - do - EWT (sicl 8,400. 00 420.00 DR - do - Renta l 8,400.00 420. 00 _, 4r..:d /~

- DECISION -� C.T.A. Ca s e No . 3717 .) -� li~ - Exhibit Withholding 8Y!ni 1m of Inco1e A1ount Tax Withheld OS - do - HIT (sicl p 17,7'3?.33 p 88'3.'37 DT - do - EWT (s icl 17, 7'33. 33 88'3.'37 DU Cherry Foodal'a!a Rental 405, 3'31. ~8 20, 26'3. 56 DV CDCP Rental 535,324.80 26,766. 24 ow 208,058.4 0 10,402.'34 ox Cooper Laboratories(Phil.llnc. Rental 4,'358.55 248.42 Concrete Aggregates Corp. Rental DY - do - Rent al 4,963.56 248.42 DZ - do - Rental 5'3,522. 72 2, '381. 04 EA - do - Rental 4,953.55 2't8. lt2 EB - do - Re ntal 4, '3S8.56 2'�8. '�2 Re ntal 4,%8.55 248.4 2 EC - do - ED - do - Rental 4,'368.55 248.42 Rental 8'3,395.80 4,4459.79 EF Cu~ ins Diese l Sales & Service Corp. EG Cu ei ns Diesel Sal e Service Rental 128,602. 40 5, 430.12 Corp of the Phil. EH - do - Rental 89, 395.80 4,459. 79 EI Endo Laboratodes (Ph il.llnc. Car Rental 83, 61t3. '34 4,182. 22 EJ Fire1an1 s Fund Ins urance Co. Lease 2'�2, 581. 38 12, 12'3. Of. EK - do - Leas e '308, 37'�� 40 45 ,418 .72 EL Fabar Sales, Inc. qental 22,530.72 1,129.53 EM - do - Rental 22,5'30. 72 1,12'3. 53 EN - do - Rental 90,362. 08 4,518. 08 EO First Che ic~l Sales Corp. Rental 7,228.50 351 .Lt4 EP - do - Rental 7,228.50 351.44 m Rental 7, 228. 50 351.44 - do - ER - do - Rental 7, 228.50 351.411 ES DCCD Engineering Corp. . Rental 15,954.60 7'37.74 ET First Worldw ide Marketing Corp. Eqpt Rental 19,718.64 985.92 EU Gilbara Australia Ltd. Re nt al 42,997.46 2,111'3. 87 Rental 12,445.52 2,120.45 EV - do - EW - do - Rental 28,8&7.62 1,443.37 EX Group Deve 1opers, Inc. Rental 95,818. 00 4, 790.90 EY - do - Rental '377,4 42. 60 48,872.13 EZ Fuji -Haya Elect r ic Corp. Phils. Lease Renta l 217,342. 7(; 10,857. 07 FA Industrial Offset Press Rental 27,270.00 1,363.50 FB - do - Re ntal 27, 270.00 1,363.50 FC - do - Rental 54,540. 00 2,727. 00 FD Inland Enterprises Co. Re ntal 54, 068.53 3,077.47 FE Integral Che�ical Corp. Rental 84,0,0. 16 4,202.'37 GX Luzon Stevedoring Corp. Lease Rental 524,924.72 30,853.80 GY Lorenzo Shipping Corp. Rental 9'34,532.00 4'3,725. 60 Rent 1, 093,939.5'3 54,5%.98 GZ Mars1an &Co., Inc. HA Phil. Acetylene Co. , Inc. Renta l 21, 027. 00 1,051.35 HB - do - Rental 7,009. 00 350.45 HC I - do - Rental 28,035.00 1,401.80 HD Pelican, Inc. Rent 1&5,917. 48 8,734.56 ;< .J 4r.i,u .

_I [' ECTDI OI' I �-- C.T. n . Ca se N ~. 3 7 17 ���- 1. 3 �- Exhibit Withhnld ing Aq~nt !..Y.I!! nf lncoll! Anunt Tax Withheld H~ Ph i I. P '1 inu111 ~!h ee ls , Inc. Rent als p 10, 201.90 p 510. 09 HF Philips El ect r ical La ps,I nc. Rent al 17'�, 75'1.32 8,737. 58 HG Ravecar, Inc. Leas e 102, 891.75 5, 1114.54 HI Redson Textile Mfg. Corp. Rent al 63,831. 28 3,191. 50 HJ Ruby Ind ustrial Corp. Re nta l 739, 302.85 36,965.10 HK Rhon e-Poulenc Phi l. Inc. Renta l 93,893.88 4,6'34.70 HL - do - Rentc> l 104, 085. 49 5, 204. 28 HM - do - Re nta l 104, 085. 48 5, 204.28 HN - do - Ren t al 104, 085. 48 5,204. 28 HO Leonardo T. Sanchez Ren tal 7,'350.1 5 3'37.50 HP - do - Re nt al 7,'350. 15 397.50 HQ - do - Rent al 7,950. 15 3'37. 50 HR - do - Ren tal 7,950. 15 397.50 HS Sterli ng Product Int'l. Renta l 34, 71t 3. 15 1,737. 00 HT - do - Rent al 42,553. 07 2,129. 00 HU - do - R!>nt a1 4'3 ,7 49 .21 2, 1188.00 HV - do - Rental 55,662.85 2, 783.00 HW - do - R~ntal 55,662.85 2,783. 00 HX Standard Electr ic Mfg.Cor p. Renta l 565, 249.80 28, 262.64 HY Sulpicio Lines , Inc. Ren tal 1,, GB't, 0'35. 00 251,052.75 HZ Sweet Lin es, Inc. Renta l 15'3,310. 80 7, 955. 97 IA Transport Contractors, Inc. Rent al 21 ,384. 00 1, 05'3.20 IB - do - Rent al 29,512.00 1,425.60 IC .: do - Renta l 29,5!1t.lt0 1, 425. 72 ID Un ion Car bide Phils. Inc. Rent al 23,1 27.00 1,156.35 IE - do - R2nta l 23,1 27.00 1,155. 35 IF - do - Renta l 23,127. 0') 1,156.35 IG - do - R ~nta l 14,439. 60 721.98 IH Univ. Phys ician's Serv. Inc. Ren t 35, 5~1~1. 00 1, 775.00 IJ - do - Re11 t B5,'W!. OO 4,31 7. 20 IK - do - Rent 3Hi,000. W' 15, 8Lt0. 00 IL - do - Ren t 310,900. 00 15, 540.00 IM USV!Ph i l. l Phart. Corp. Cat' Rent al 42, '328. 68 2, 1116.44 IN - do - Car R~nta l 42,'328.68 2, 1lt6. 44 10 - do - Cat' Rent al 42,928. 68 2, 1'�5. 44 IP .USV !Phil . l Phar1. Corp. Car Rental 42, '328.68 2,1 46. 44 IQ Warn er Barnes Car Rental 1,1 37.10 56.85 IR - do - Rental 1,137.10 56. 85 IS - do - Car Rent al 1,137.10 55.85 IT - do - Car Re ntal 1,137.1<) 56.85 IU - do - Car Rental 1,1 37.1 0 56.95 IV - do - Car Rental 1,1 37.10 56 . 85 IW - do - Rent al 1,137. 10 55.85 IX - do - Rental 1, I37. 10 56.85 IY1 Warner-La .ber t Phils. Inc. Cont ractor 15,1 88. 04 75g, 4o A 4~ ,

��� or::c :u.n oN .. C.T.n. Ca s e No. 37 17 ..� 11.1. ... Exhi bi t Withholding Agent ~of Incou Atount Tax Withheld JZ - do - Contradot� p l B, '377. 16 p 948.86 Contractor 12, 112.58 605.63 JA - do - Cont ractor 23, 48~1 . 27 1,174.01 JB - do - JC - do - Cvntractor 12, '323. '�0 61t6.17 JD - do - Cont r ~ctor 13,8'32.'35 66'3.65 '16, 277.78 2,313.8'3 JE - do - Contractor 49,796.62 2,489.83 Contractor JF - do - JG - do - Contractor 46,277.78 2,313.8'3 Co t ractor 4'3, 7'36.62 2,489. 83 JH - do - JI - do - Contractor 45,181.8'3 2,25'3.0'3 JK - do - Cont ractor 45, 181.8'3 2, 259.09 Rental 48,52'3.35 2,426.47 JL - do - Rental 41,168.79 2,058.44 Rental 2,378.47 JM - do - Rental 47,56'3 . 1!~ 2, 280.50 Rental 1,54'3.68 JN - do - Rent al 45,60'3.93 2, 031.75 Rental 30, 9'33.ft5 1,54'3.67 JO - do - 40,635.06 30,'3'33.45 JP - do - JQ - do - JR - do - JS - do - Rental 39,088 .91 1,954.45 Le :e '�8,52'3. 35 2,426.47 JT - do - JU Warn~r-Lallber Phils. Inc. Lease 45, 181. 8'3 2,25'3.09 Contract or 2,25'3.09 JV - do - Cont r actor '�5, 181.8'3 2, 't ~6. 47 Rent al '�8, :~9. 35 1' 5'1'3. 67 JW - do - Cont ractor 30, 9'33. '15 2,48'3.83 '�3, 7'36. 62 2,48'3.83 JX - do - R ~ntal 4'3, 7%.62 51,575.32 1,02'3,506.36 5,651.21 JY - do - Rental 113, 0211, 34 6,272.43 Car Rental 125,4 8.56 2,676.27 JZ - do - Cat� Rent al 53,525.'12 Car Rental KA - do - KB Wellcolle !Phils. l Inc. KC � - do - 1\D - do - KE - do - Car Rental 2'3 1, '398.42 14,5'39. 91 KF Winthrop Ste at�ns , Inc. Rent al 240, '3't3. 65 12,047.17 KG - do - Rental 230,1 06.25 11, 50( 73 KH - do - Rent t~l 160,8'35.82 8, 044.25 J KI - do - Rental 1151 4ZO. Bit 5, 770.00 KJ Yu Eng Kao Electrical Lease Rental 111, '31t3. 23 5, 5'37.31 Supp1y & Hard~Jare KL Drilling Corp. of Asia Rental 31,950.00 1,598. 00 Rental 51,750.00 2,587.50 KM Neltex Dev. Co., Inc. KN RLM& Co. Rental 12,419.06 516. 60 KO Dia. ond Motor Corp. Cont rilr.t or 2,881.00 10.2& KP Econo1i l ine Offic~ Eqpt Sales Lt>asing 2,709. 00 135.45 in L~ase Corp. KQ Eft�en V. Garcia Car Rt>ntal 3'1,090.2'3 1, 704.02 ~R: Int' 1. Eood Housekeeping, I~c. Rental 22,500.00 1,125. 00 KS Lafu111ar Marketing Corp. � Appraisal fee 1,669.50 166.95 ~ 4r-;.; ~

-- DECI~3IOI' I C.T.A. ras~ No. 3717 �-- l. r.) ..._ Withholding Agent Tax Withheld KT P~a g atic Dev . t Const.C~rp. RDntal p 2, 521. 00 p 126.05 KU Phil. Cocoa Corp. Rental 365,85~.52 181292. 61 KV Technolux Marketing Inc. R~nt I 51883.00 29~. 15 f'.l,l St at e Inveshent House , Inc. Re ntal 2,500. 00 125.00 KX PDCP Rental 24,830.00 11241.25 KY Quality So lid Industrial Corp. Rental 11'31Clit'J. 00 5, 952. 00 321946.00 KZ Sta. Cl ara Estate, Inc. Rental 1, 647. 2'� LA Lacson Her1anos Ag~o- I ndustr ial Ren tal 511 , 501. 4& 25, 575.05 Corp. LB Menchaca Her1anos Lease 21!1594. 00 10,57'3.20 LC Nenaco Sale s Corp. Rental 36, 0811,40 1, BOlt . 22 LD Jon, Lopez &Co. CPA's Rental 7,200.00 360.00 LE Int egrated Stevedoring, Eqpt. Renta l 4101400. 00 20,520. 00 Arrastre Corp. LF - do - Eqpt. R.:o;t al 681/100. 00 3, 420.00 LG Dinglasan L wOffice R n al 8,400.00 1120.00 LH Perla Co~pania de Seguros, Inc. Insurance 14, 280. 75 714. 03 Colli issi ons 1o,7'3:. 75 LJ - do - Co �~ i- io'ls 215,'314 . '37 LJ - do - Co !!lissions E.0, 371. 45 3,018.57 LK - do - Co iss ions 601 371.45 31018.57 Li'l - do - Coll~issions /12,746. 10 2, 137.30 LN - do - Con issions 861835. 40 4134! . 77 LO - do - it14. 62 LP - do :.. 3, 327. 40 !66. 37 LQ Wor ld-Wide Ins. &Surety Co.Inc. 1, 468.04 LR - do - Co i5sion 13, 134. 711 656.71 LS - do - Co 'lliss ion 331332.66 1, 66'3.66 LT - do - ~l a g~( ~' cl 2, 16'3. 39 108. 1/ LU Mrs. Vola da n. Kilayco Al l ~l13nce(sic l 2'3 , 076. 00 1, it 53. so LV Fortune Jn :;urance ~ Surety Co . Inc. W1. 13 LW Manila Banking Corp. Interest 67, '312. 00 1011 86 .80 LX I1asco Rrrastre &Stevedoring Rental 5110, lt04 . 00 34,'386.30 Co. 1 Inc. LV Gold City Jrtegrated Port Rental 1I 0421 '3~17 , 03 521145. 35 Renta l 6831736. 22 34,186.8 1 Sel'vice 1 Inc. LZ - do - MA Bagonbon Faras, Inc. Lease - eqp t. 261,886. 23 13, 88'3. 74 MB El en ita Rgri.Dev. Corp. Rent I 318, 67'3. 92 15,933. 96 MC Ho!e Fi nancing Corp. 2'3, 106. 00 MD Gl obal El ectrification Syste'1 Rental %1244. 65 4,812. 26 Inc. ME C. B.Lopez Mngt &Consultant Re nt 241300. 00 1, 215. 00 Engineering MF Min . of Trade & IndJstl' y PP "t 819115. 00 447. 30 Wages !sicl 2, 3lt2. it2 117. 12 MG Sandvik Phils. Inc. MH Mandaue Warehousing Corp. Rent al 81736.00 436.80

DE:C I~:; I f"l\' 1 -- C. T . n . Caq' r rn . ?717 �- lE �- Exhibit Withholding Agent In!! of Inco1e A1ount ~.! Withh eld MI Nork is Int' 1. Co. Inc. R ~ ntal p 24,3311.36 p 1, 219.20 MJ Norkis Trading Co., Inc. Rental 314,501.17 15,725. 09 W< First Phil.Insurance Co. Inc. C(.ll!l:!ission 107, 700. 7'3 5, 385.04 ~L lilo-An Repair Shop, Inc. Rental 112,603. 00 5,630.15 M'l Gel ac Tradin g, Inc. R~nt 128,929.'33 6, lt-46. 46 MO INTERBANK Rent 110, 250.00 5,512.50 MP Phil. Index T rad~l'S Rent lt 13':Jit, 00 219.70 60,248.80 3,012.44 MO Heroinigildo Trinidad Rent MR Aveco Eqpt. Corp. Rental 11, %'3.75 598.49 MS - do - P.e11tal 11,953. 75 598.4'3 MT - do - Rental 11, '3 ':l.75 5'38.49 MU - do - Rent al 111%9. 75 538.49 MV - d~ - Rental 11, '35'3. 75 5'38.4'3 MW - ~0 - Rental 1119~'3 .75 5'38. 49 MX - do - Rental 11 1':JS':J, 75 5'38. 49 MY Mondr ~gon lnd ts . ries 1 lnr:. Rental 1I 1tG1, 958. 65 73, 0'37.'30 Rental 195, 127.40 '3 , 755.32 fi'I Z Cong r Chemit~l Corp. NA Phi 1. Rock P1� oduc s Inc. Eq pt . L~as e 507, !99. 57 25135'3. '38 NB - do - Eqpt. Lea~e 488,137 .80 24,ft05. 89 NC Gerardo D. C�manan1 M.D. 120.44 8,316.00 QQ Hose Financ ing Corp. flR - do - 411 58.00 T 0 TAl 1, 596,151 .05 T h f? 1'] fJ l C' l'" n c1 .i. 1~ a b 1 e i.. n c o m(~ I~ <'.:1 >< P lil vd. \; h 11 e 1 d h y pay tJt' r; f t' CJ m pet i t: i on f' 1-� pe t-� am c 1H i f> rJ "' n n u a 1 of which the evidence offered. Petiti oner has also failed to present any c laimed amounti ng to P 2 , 113 , 6 27. 3 5 p~r amended 1981 For thi s reason , the Court i. s 1 e ft with nc rec o ur s e but to h a r thn sa me .

- DECI S ION �- C.T.A. Ca s e No. 3717 �-- 17 �- Accordingly, we compute the r e sulting claim for tax credit as follows: TaKabl~ Inco.e p 516841 438.00 Corporate Inco1e Tax p 25,000.00 11 954,554.00 p 100,000 )( 251. p 1,979,554.00 p 5,584,438.00 X 351. 116%, 151.05 Total Tax Due p 283,402.95 L~ss : 1981 Withholding tax credits per ~vidence offered rom. A~U.trr M WHEREFORE, the Court denie s pet i tioner's claim fot~ tax ct~ edit. The instant petition for r e view is hereby di s missed for lack of merit. SO ORDERED. Quezon City, Mett~o Manila, Ma y 10, 1993. WE CONCUR: GRUBA ACOSTA .Judge ~ .) P.. ~ An-, / RAAMs OsNocDia. teDEJ~~=" A i L

- - DECISION - C.T.A. Case No. 3717 - 18 - I hereby c ertify that this de ci s i on was reached af ter du e ca n s ul t~tion bet ween the members of the Co urt o f ax App ea ls in accordance with Section 13 , Ar ti c l e VIII of the Constitution. ~Q-~ ERNESTO D. ACOSTA Presidi ng Judge Court of Tax Appeal s 4 3;_,