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

REPUBLIC OF THE PHILIPPINES Court of Tax Appeals QUEZON CITY Third Division DEUTSCHE KNOWLEDGE CTA CASE NO. 8402 SERVICES, PTE. LTD., Members: Petitioner, Bautista, Chairperson -versus- Fabon-Victorino, and Ringpis-Liban, JJ. COMMISSIONER OF INTERNAL Promulgated: REVENUE, JAN 0 6 2015 Respondent. ~ ;o:toa-,.., X ---------------------------------------------------------------------------------------------------------------------- X RES OL UTI ON BAUTISTA, J: On September 16, 2014, the Court promulgated a Decision, disposing of the case as follows: "WHEREFORE, in view of the foregoing, the Petition for Review by petitioner Deutsche Knowledge Services, Pte Ltd. is hereby PARTIALLY GRANTED. Accordingly, respondent is hereby ORDERED to refund to petitioner or issue a tax credit certificate in its favor the amount of Php15,859,091.24 representing the latter's unutilized input VAT attributable to its zero-rated sales for the fourth quarter of taxable year 2009. SO ORDERED." On October 9, 2014, respondent filed a "Motion for Par~~~ Reconsideration (Re: Decision promulgated on 16 September 2014('

RESOLUTION CTA CASE NO. 8402 interposing the sole issue of whether or not petitioner was able to substantiate its administrative claim for refund. It is respondent's claim that petitioner failed to do so, thus the Court cannot exercise its appellate power to review and has no jurisdiction in the present case. On October 9, 2014, petitioner filed through registered mail an "Omnibus Motion," asking the Court for the following: "2. Petitioner respectfully seeks partial reconsideration by this Court of its Decision insofar as the denied amount is concerned on the basis of the following: a. This Court erred in ruling that Petitioner failed to prove its zero-rated sales in the amount of Php1,782,873,522.27 for the 4th quarter of calendar year (CY) 2009; b. This Court erred in ruling that only the amortization for the 4th quarter of CY 2009 in the amount of Php31,796.71 may be claimed by Petitioner as valid input tax credits for the same taxable year; and c. This Court erred in ruling that Petitioner's input VAT for the 4th quarter of CY 2009 should be applied against its output VAT of Php1,353,651.47. 3. Petitioner likewise begs the indulgence of this Court to re-open the trial in this case and allow Petitioner to present additional evidence in support of its Motion for Partial Reconsideration. 4. With all due respect to this Court, Petitioner also humbly seeks clarification of its Decision, particularly with respect to the specific documentary evidence which allegedly failed to comply with the substantiation requirements under Sections llO(A) and 113(A) and (B), National Internal Revenue Code (the "Tax Code"), as implemented by Sections 4.110-2, 4.110-8 and 4.113-1, Revenue Regulations (RR) No. 16-05." (

RESOLUTION CTA CASE NO. 8402 Page 3 of16 On October 14, 2014, the Court issued a Resolution ordering petitioner to Comment on the "Motion for Partial Reconsideration (Re: Decision promulgated on 16 September 2014)." On October 21, 2014, Court issued a Resolution ordering respondent to file her Comment on the "Omnibus Motion." On October 30, 2014, through registered mail, petitioner filed a "Comment (Re: Respondent's Motion for Partial Reconsideration dated October 8, 2014)." On November 6, 2014, respondent filed her "Motion for Extension of Time to File Comment," praying for a ten (10) day extension, which was granted via a Resolution dated November 25, 2014. On November 21, 2014, respondent filed through registered mail a "Comment (To petitioner's Omnibus Motion dated 09 October 2014)." Thus, respondent's "Motion for Partial Reconsideration (Re: Decision promulgated on 16 September 2014)" and petitioner's "Omnibus Motion" is now submitted for resolution. Jurisdiction of the Court At the onset, respondent's "Motion for Partial Reconsideration (Re: Decision promulgated on 16 September 2014)" cannot be given any merit. Respondent's main argument is that petitioner failed to submit complete documents, as per Revenue Memorandum Order (RMO) No. 53-98.1 As correctly pointed out by petitioner, RMO No. 53-98 is an issuance by the Bureau of Internal Revenue to its revenue officers to serve as a guide with regard to the documentary requirements for a r tax audit, not for administrative claim for refund. In addition, the case cited by petitioner, Commissioner of Internal Revenue v. Team Energy Corporation,2 was on point when it stated that the submission 1 DatedJunel, 1998. 2 CTA EB Case No. 652, October 4,2011.

RESOLUTION CfA CASE NO. 8402 of complete supporting documents is necessary for a favorable consideration of the said claim but it does not preclude a taxpayer from filing a judicial claim after the denial or the lapse of the 120-day period granted to the Commissioner of Internal Revenue to decide on the said administrative claim. This being said, the contention of respondent that the Court does not have jurisdiction has no basis. Petitioner failed to prove its zero- rated sales in the amount of Php182,581,582.83 Petitioner alleges in the "Omnibus Motion" that it sufficiently established the zero-rated sales in the amount of Php182,581,582.83, however a careful review of the evidence submitted by the petitioner reveal the following: Client OR Provisional Exhibit Remarks Inward Remarks Remittance DB AG, Inlandsbank No. Receipt No. Exhibit No. OK DB Vienna AG BR OK DB AG Singapore 601 M-55.2 Missing M-55.3 OK DB (Suisse) SA OK Rued, Blass & Cie AG 606 M-60.1 OK M-60.2 OK Rued, Blass & Cie AG OK DB AG Asia Pacific HO 542 48 M-1.1 Missing OR; OK M-1.2 OK DB AG Hongkong OK 543 49 M-2.1 Missing OR; OK M-2.2 544 50 M-3.1 Missing OR; OK M-3.2 545 51 M-4.1 Missing OR; OK M-4.2 546 52 M-5.1 Missing OR; OK M-5.2 618 M-72.1 While Official Receipt No. 606 formed part of petitioner's Formal Offer of Evidence ("FOE"), the same did not indicate the amount of VAT in such transaction as required in Section 4.113-1 of Revenue Regulation No. 16-05. On the other hand, Official Receipt Nos. 542 to 546, 601, and 618 were not part of petitioner's FOE and were merely annexed to the "Omnibus Motion." The Court finds no merit in petitioner's prayer that the Official Receipt Nos. 542 to 546, 601, and 618 be accepted in the interest of substantial justice and equity. The petitioner was already given ample time to submit the necessary documents in order to properly substantiate its claim yet the FOE submitted by petitioner did not11 / include the same. This oversight is not excusable negligence. /v

RESOLUTION CTA CASE NO. 8402 Petitioner's allowable input VAT for purchases of capital goods exceeding Php1 Million for the 4th Quarter totals to Php28,430.61 Petitioner states that the estimated useful life of its purchases of capital goods exceeding Php1 Million for the 4th quarter of taxable year 2009 should be 48 years instead of 60 years. Thus, petitioner alleges that it should have an allowable Input VAT of Php65,503.30. A perusal of the audited financial statements and the sales invoices on record show the following findings: 1) The notes3 to the audited financial statement for the year ended December 31, 2009 expressly states that the Company Policy is to use a ten-year estimated useful life for its office equipment; 2) All the sales invoices complied with the invoicing requirements pursuant to Section 4.113-1 of RR 16-05; and 3) Almost all the submitted sales invoices relative to this transaction pertain to purchases of office equipment such as laptops or laptop batteries, except for Exhibit M-113 which indicated a Service Charge rather than a purchase of goods. Since petitioner's Company Policy is based on an estimated useful life of ten years for its purchased office equipment, then its contention that the purchase of capital goods exceeding Php1 million be amortized only for 48 months is untenable. Consequently, as based on Section 4.110-3(a) of the RR 16-05,4 the said purchases should be amortized over 60 months computed as follows: _;Exhibit "M-1310." 4 Section 4.110-3. XXX XXX XXX (a) If the estimated useful life of a capital good is five (5) years or more - The input tax shall be spread evenly over a / period of sixty (60) months and the claim for input tax credit will commence in the calendar month when the capital good is acquired. The total input taxes on purchases or importations of this type of capital goods shall be divided by 60 and the quotient will be the amount to be claimed monthly.

RESOLUTION CTA CASE NO. 8402 Registered Name Exhibit Input VAT per Life Date of Months Allowable of Supplier No. QVATRetum Purchased Used Input VAT Accent Micro Technolo!ties Inc. M-99 536.57 60 9/24/2009 3 26.83 Accent Micro Technologies Inc. M-109 168,846.43 60 10/19/2009 2 5,628.21 Accent Micro Technologies Inc. M-110 10/19/2009 3 Accent Micro Technologies Inc. M-111 483.00 60 10/19/2009 3 24.15 Accent Micro Technologies Inc. M-112 1,449.00 60 10/20/2009 3 72.45 Accent Micro Technologies Inc. M-114 236,385.00 60 10/29/2009 3 11,819.25 Accent Micro Technologies Inc. M-115 11/5/2009 2 40.22 Accent Micro Technologies Inc. M-116 804.43 60 11/9/2009 2 75.00 Accent Micro Technologies Inc. M-117 2,250.00 60 11/9/2009 2 20.77 Accent Micro Technologies Inc. M-118 11/9/2009 2 16.61 Accent Micro Technologies Inc. M-119 623.14 60 11/17/2009 2 23.63 Accent Micro Technologies Inc. M-120 498.21 60 11/17/2009 2 16.10 Accent Micro Technologies Inc. M-121 708.86 60 11/17/2009 2 16.10 Accent Micro Technologies Inc. M-122 483.00 60 11/27/2009 2 450.26 Accent Micro Technologies Inc. M-123 483.00 60 12/2/2009 1 70.24 Accent Micro Technologies Inc. M-124 13,507.71 60 12/2/2009 1 4,502.57 2,107.29 60 5,628.21 TOTAL 270,154.29 60 337,692.86 60 28,430.61 1,037,01279 Further, it should be noted that Exhibit "M-113" was removed from the list above since it pertains to a "service charges for 4 Technical Support for BCP Project for the period of SEPTEMBER 26 to OCTOBER 25, 2009," which should be considered as purchase of services. Since petitioner submitted only a sales invoice to substantiate this transaction instead of an Official Receipt as required by Section 4.113-1(A) of RR 16-05, then the same should be disallowed. Petitioner failed to substantiate its excess input tax carried over from the previous quarters Petitioner avers that it has an excess input VAT carried over from the previous quarters amounting to Php320,171,664.12, as indicated in Line 20E of its Quarter!y VAT Return for the 4th Quarter of taxable year 2009. Petitioner states that this amount is more than sufficient to cover its output tax liability in the amount of Php1,353,651.47,s and that it has sufficiently proven said amount by indicating the same in its Quarterly VAT Return for the 3rd quarter of taxable year 2009 and submitting a Sworn Statement6 dated June 15, 2012 by Ms. Rachel Concepcion, the Legal Entity Controller. However, in the case of Chevron Holdings, Inc. vs. Commissioner of Internal Revenue/ the Court En Bane reiterated the discussion of requ~ring the submission of documentation for input tax carried over,( to w1t: 5 Exl1ibit "M-1300." 6 Exhibit"]." 7 CTA Case No. 940, October 28, 2014.

RESOLUTION CTA CASE NO. 8402 "A mere reliance on an entry in the current year's Quarterly VAT Return that a certain amount was carried over from the previous taxable year is not enough. Petitioner must be able to prove that the amount in the Quarterly VAT Return is accurate and that it was properly carried over, before the Court En Bane can allow it." Consequently, petitioner's contention that its input VAT for the 4th quarter of taxable year 2009 should not be applied against its output VAT for the same quarter since it has excess input VAT carried over from previous quarters in the amount of Php320,171,664.12 is untenable. Upon review of petitioner's FOE, the Court notes the following: 1) Only Monthly VAT Returns for October 20098 and November 20099 and Quarterly VAT Return for the fourth quarter of 200910 was submitted by the petitioner; 2) Line 17A (Input Tax Carried Over from Previous Period/ Excess over 70% of Output VAT to Input Tax Carried Over from Previous Period) for both Monthly VAT Returns for October and November 2009 did not indicate any amount of Input VAT carried over from previous period; 3) Line 17E (Others) indicated the amount Php320,171,664.12, while Line 20E (Others) indicated the amount Php320,171,664.12; 4) Line 20A (Input Tax Carried Over from Previous Period) did not indicate any amount of Input Tax Carried Over from Previous Period; 5) The third quarter VAT Return was submitted as Annex "A-7" of the subject Omnibus Motion; and ( s Exhibits "M-1296" and "M-1297." 9 Exhibits "M-1298" and "M-1299." 10 Exhibits "M-1300" and "M-1301."

RESOLUTION CTA CASE NO. 8402 Page 8 o�16 6) No additional official receipts or invoices were submitted to support the input VAT carried over from previous period in the amount of Php320,171,664.12. Therefore, petitioner's mere declaration in its fourth quarter VAT return of the amount of input tax carried over without further supporting invoices and/ or official receipts to substantiate the claim is insufficient. Thus, the Court did not err in deducting the input VAT for the fourth quarter of taxable year 2009 to the output VAT for the same quarter. Petitioner failed to comply with the necessary invoicing requirements Petitioner also prayed for a clarificatory judgment, asking the Court to point out the documents which allegedly fail to comply with the substantiation requirements under Sections 110(A) and 113(A) and (B) of the 1997 NIRC, as implemented by Sections 4.110-2,4.110-8 and 4.113-1 of RR No. 16-05. Consequently, the requested breakdown of documents based from the original computation is as follows: Findings Disallowed Exhibits Input VAT Input VAT on purchases of goods M-208, M-210, M-215 to M-254, M-267, M- supported by invoices dated outside (Php) 660, M-683, M-684, M-906, M-907, M-916, the period of claim 558,887.64 M-1192 to M-1194, M-1204, M-1243 to M- 1246, and M-1255 to M-1259 Input VAT on purchases of goods 115,281.31 M-98, M100 to M-103, M-207, M-745 toM- supported by invoices dated outside 804, M-808 to M-898, M-911, M-912, and M- the period of claim wherein the 1283 amount of input VAT were not separately indicated 21,956.84 M-353, M-354, M-899, M-908, M-1160, and Input VAT on purchases of goods M-1161 supported by invoices wherein the amount of input VAT were not 529,827.08 M264, M-265, M-373, M-281, M-669, M-708 separately indicated to M-711, M-904, and M-1239 Input VAT on purchases of services supported by OR dated outside the 393,410.91 M-190, M-192, M-362, M-681, M-734, and period of claim M-1295 Input VAT on purchases of services supported by OR dated outside the ~;� period of claim and wherein the amount of input VAT were not sevaratelv indicated.

RESOLUTION CTA CASE NO. 8402 Input VAT on purchases of services 4,490,869.15 M-104, M-136, M-137, M-148 to M-152, M- supported by OR wherein the 191, M-193 to M-195, M-199, M-200, M-268, amount of input VAT were not 3,477,697.40 M-287, M-290, M-291, M-295, M-305 to M- separately indicated 794,303.25 308, M-356, M-377, M-682, M-687, M-690 to 87,920.61 M-694, M-699 to M-705, M-712, M-715 to Input VAT on purchase of services 1,679.46 M-720, M-722, M-724 to M-728, M-928, M- supported by documents other than 935, M-937, M-939, M-940, M-945, M-946, VAT OR M-961, M-1008, M-1061/1127, M-1075, M- Input VAT on purchases of services 1100 to to M-1104, M-1107, M-1108, M- supported by documents imprinted 1110, M-1111, M-1118, M-1120, M-1122, M- with the statement 11This document is 1123, M-1126, M-1132, M-1137, M-1139 to not a valid source of input tax11 M-1142, M-1144 to M-1151, M-1153 to M- 1155, M-1158, M-1159, M-1162, M-1163, M- Over-claimed input VAT on 1167 to M-1172, M-1175, M-1179, M-1187 to purchase of services M-1191, M-1208, M-1224, M-1226, M-1229 to M-1231, M-1252 to M-1254, M-1262, M- Input VAT on purchase of services 1263, M-1272, M-1285, M-1286, and M-1288 supported bv VAT Zero-rated OR M-158 to M-162, M-196 to M-198, M-274, Input VAT on purchase of goods M-275, M-296, M-297, M-322 to M-324, M- supported by invoices without BIR 661, M-1209, M-1210, and M-1213 Authority to Print M-919 to M-927, M-929 to M-934, M-936, Without supporting documents M-938, M-941 to M-944, M-947 to M-960, M-962 to M-1007, M-1009 to M-1060, M- Total 1062 to M-1074, M-1076 to M-1099, M-1105, M-1106, M-1109, M-1112 to M-1117, M- 1119, M-1121, M-1124, M-1125, M-1128 to M-1131, M-1133 to M-1136, M-1138, M- 1143, M-1152, M-1156, and M-1157 M-155 to M-157, M-201 to M-206, M-211, M-292 to M-294, M-363, M-364, M-375 , M- 376, M-378, M-706, M-707, M-730, M-900 to M-902, M-914, and M-1287 M-1242 66,859.74 M-662 and M-663 3,529,526.80 Please refer to TabIe A below 14,068,220.19 Table A. Without Supporting Documents Registered Name of Supplier

RESOLUTION 4,714.29 GLOBE TELECOM A/C 52797637 128.57 CTA CASE NO. 8402 11,379.40 GLOBE TELECOM A/C 52961747 321.43 Page 10 of16 559,262.39 GLOBE TELECOM A/C 52961747 788.02 31,517.66 GLOBE TELECOM A/C 52973621 128.57 DB WIZARD, INC. GLOBE TELECOM A/C 52973621 246.77 DHL EXpRESS PHILSCORP 2,153.37 GLOBE TELECOM AjC 52973745 128.57 3,841.73 GLOBE TELECOM A/C 52973745 128.57 I ePLDT INC 7,950.00 GLOBE TELECOM A/C 52973745 246.77 1,647.66 GLOBE TELECOM A/C 53167858 248.57 ESCO Audio Visual Pte.Ltd. 4,051.09 GLOBE TELECOM A/C 53235098 128.57 3,303.14 GWBE TELECOM A/C 53235098 222.86 l f;"Xll .Tl'iiVE CARS, INC 3,386.50 GLOBE TELECOM A/C 53235144 128.57 2,882.95 GLOBE TELECOM A/C 53235144 222.86 E CARS, INC 2,882.95 GWBE TELECOM A/C 53235187 128.57 E CARS, INC 2,882.95 GWBE TELECOM A/C 53235187 222.86 E CARS, INC 2,882.95 GLOBE TELECOM A/C 53235195 128.57 ;JVE CARS, INC 2,882.95 GLOBE TELECOM A/C 53235195 222.86 E CARS, INC 2,882.95 GLOBE TELECOM A/C 53235209 222.86 2,882.95 GLOBE TELECOM A/C 53235209 128.57 :ARS, INC 2,882.95 GLOBE TELECOM A/C 53235217 128.57 ;JVE CARS, INC 2,882.95 GLOBE TELECOM A/C 53235217 128.57 2,882.95 GLOBE TELECOM A/C 53235225 128.57 E CARS, INC 2,882.95 GLOBE TELECOM A/C 53263148 342.86 E CARS, INC 2,637.59 GLOBE TELECOM A/C 53263172 228.57 2,882.95 GLOBE TELECOM A/C 53263261 228.57 :::ARS, INC 2,882.95 GLOBE TELECOM A/C 53307366 307.14 ;IVE CARS, INC 2,882.95 GLOBE TELECOM A/C 53307366 214.29 2,882.95 GLOBE TELECOM A/C 53307382 214.29 E CARS, INC 2,882.95 GLOBE TELECOM A/C 53307382 307.14 E CARS, INC 2,882.95 GLOBE TELECOM A/C 53307463 214.29 E CARS, INC 3,126.21 GLOBE TELECOM A/C 53307471 214.29 ;IVE CARS, INC 2,620.78 GLOBE TELECOM A/C 53307471 307.14 E CARS, INC 2,979.64 GLOBE TELECOM A/C 53307722 307.14 ~ E CARS, INC 2,215.61 GLOBE TELECOM A/C 53337028 214.29 E CARS, INC 2,597.04 GLOBE TELECOM A/C 53413204 214.29 E CARS, INC 2,155.62 GLOBE TELECOM A/C 53413204 221.43 E CARS, INC 2,937.83 GLOBE TELECOM A/C 53413239 214.29 2,773.73 GLOBE TELECOM A/C 53413263 221.43 , INC 3,127.29 GLOBE TELECOM A/C 53413271 221.43 E CARS, INC 2,660.14 GLOBE TELECOM A/C 53459778 414.75 E CARS, INC 2,866.85 GLOBE TELECOM A/C 53459794 414.75 E CARS, INC 3,335.27 GLOBE TELECOM A/C 53459808 414.75 2,881.82 GLOBE TELECOM A/C 53459824 414.75 :::ARS, INC 1,131.45 GLOBE TELECOM A/C 53459859 414.75 E CARS, INC 2,882.95 GWBE TELECOM A/C 53555106 207.37 E CARS, INC 2,821.61 GWBE TELECOM A/C 53555467 207.37 E CARS, INC 2,882.95 GWBE TELECOM A/C 53555475 207.37 2,882.95 GWBE TELECOM A/C 53555513 207.37 :::ARS, INC 2,882.95 GLOBE TELECOM A/C 53555629 128.57 E CARS, INC 2,882.95 GLOBE TELECOM A/C 53555661 128.57 E CARS, INC 2,882.95 GLOBE TELECOM A/C 53555777 128.57 E CARS, INC 2,882.95 GLOBE TELECOM A/C 53556013 141.01 ;IVE CARS, INC 2,584.19 GLOBE TELECOM A/C 53556013 128.57 E CARS, INC 2,882.95 GLOBE TELECOM A/C 53556021 128.57 E CARS, INC 2,882.95 GLOBE TELECOM A/C 53647973 290.32 2,882.95 GLOBE TELECOM A/C 53648058 290.32 ~ARS, INC 2,882.95 GLOBE TELECOM A/C 53668636 VE CARS, INC 2,882.95 GLOBE TELECOM A/C NO. 52180311 165.9 IE CARS, INC 2,882.95 GLOBE TELECOM A/C NO. 52316108 446.76 2,054.89 GLOBE TELECOM A/C NO. 52316108 245.65 ~ARS, INC 2,103.23 GLOBE TELECOM A/C NO. 52316108 321.43 :::ARS, INC 1,876.53 GLOBE TELECOM AC 46328361 214.29 fE CARS, INC 2,080.61 GWBE TELECOM AC 46328361 128.57 ~CARS, INC 3,002.17 GWBE TELECOM AC 46328728 128.57 1E CARS, INC 1,445.36 GWBE TELECOM AC 46328728 128.57 IE CARS, INC 1,658.57 GLOBE TELECOM AC 46640608 128.57 IE CARS, INC 1,763.57 GLOBE TELECOM AC 46640659 IE CARS, INC 2,681.56 GLOBE TELECOM AC 46640659 204 EXCLUSIVE CARS, INC 2,002.42 128.57 1E CARS, INC "98 128.57 :ARS, INC I EXCLUSIVE CARS, INC LEXCLUSIVE CARS, INC I IE CARS, INC EXCLUSIVE CARS, INC I EXCLUSIVE CARS, INC ~EXCLUSIVE CARS, INC IE CARS, INC IE CARS, INC I EXCLUSIVE CARS, INC :ARS, INC :ARS, INC VE CARS, INC :;: CARS, INC EXCLUSIVE CARS, INC

RESOLUTION CTA CASE NO. 8402 Page 11 ofl6 ARS, INC 210.25 GLOBE TELECOM AC 51252106 128.57 ARS, INC 1,939.19 GLOBE TELECOM AC 51252203 204 EXCLUSIVE CARS, INC ,127.75 GLOBE TELECOM AC 51252815 204 VECARS,INC 1,553.47 GLOBE TELECOM AC 51252815 ECARS, INC 1,335.98 GLOBE TELECOM AC 51771456 128.5i EXCLUSIVE CARS, INC 2,664.62 GLOBE TELECOM AC 51771456 538.64 CARS, INC 1,494.54 GLOBE TELECOM AC 51771456 158.57 CARS, INC 1,566.43 GLOBE TELECOM AC 51771456 -221.77 EXCLUSIVE CARS, INC 349.29 GLOBE TELECOM AC 51771499 3,622.40 CARS, INC 785.36 GLOBE TELECOM AC 51771499 535.7 1,150.06 GLOBE TELECOM AC 517715% 535.71 FACILITIES GLOBE TELECOM AC 51771596 214.29 FACILITIES MANAGERS,INC 79.3 GLOBE TELECOM AC 51771596 214.29 FACILITIES MANAGERS,INC 2,690.18 GLOBE TELECOM AC 51823014 214. FACILITIES MANAGERS,INC 2,621.49 GLOBE TELECOM AC 51823014 275.6: FACILITIES MAl\ 5,360.68 GLOBE TELECOM AC 51963754 214. 2,030.60 GLOBE TELECOM AC 51963754 214.29 5 HOSPITALITY INVESTMEN1 153,176.36 GLOBE TELECOM AC 51963754 315.83 27,473.04 GLOBE TELECOM AC 51963983 214.29 5 HOSPITALITY INVESTMENT 4,173.12 GWBE TELECOM AC 51964076 214.29 2,289.42 GWBE TELECOM AC 51964106 214.29 GLOBAL CITY CAR LEASE & 8,771.57 GWBE TELECOM AC 51964106 214.29 8,368.82 GWBE TELECOM AC 51964122 214.29 GLOBAL CITY CAR LEASE & 8,732.25 GWBE TELECOM AC 51964122 214.29 1 7,809.75 GWBE TELECOM AC 51964181 214.29 I GLOBAL CITY CAR LEASE & 8,113.07 GLOBE TELECOM AC 51964181 214.29 7,974.64 GWBE TELECOM AC 51964203 214.29 LCITY CAR LEASE & 9,126.11 GWBE TELECOM AC 51964203 214.29 8,156.14 GLOBE TELECOM AC 51964335 214.29 GLOBAL CITY CAR LEASE & 7,912.07 GWBE TELECOM AC 51964335 214.: 7,800.11 GWBE TELECOM AC 51964408 214.: I GLOBAL CITY CAR LEASE & 7,157,04 GWBE TELECOM AC 51964408 214.: 7,376.04 GWBE TELECOM AC 51964475 214.29 LCITY CAR LEASE & 7,644.43 GWBE TELECOM AC 51964475 222.16 8,628.21 GWBE TELECOM AC 51964475 214.29 GLOBAL CITY CAR LEASE & 7,849.82 GWBE TELECOM AC 51964505 214. 8,537.36 GLOBE TELECOM AC 51964505 214.: I GLOBAL CITY CAR LEASE & 9,559.50 GLOBE TELECOM AC 51964505 214.29 4,027.29 GLOBE TELECOM AC 52116672 214.29 ~GLOBAL CITY CAR LEASE & 6,767.14 GLOBE TELECOM AC 52116729 214.29 5,375.68 GLOBE TELECOM AC 52142096 321.43 LCITY CAR LEASE & 5,174.25 GLOBE TELECOM AC 52142126 192l 6,269.68 GLOBE TELECOM AC 52142134 192.81 L CITY CAR LEASE & 1,819.18 GLOBE TELECOM AC 52142134 192.81 4,326.75 GLOBE TELECOM AC 52142843 128.5' GLOBAL CITY CAR LEASE & 4,425.43 GWBE TELECOM AC 52142916 128.57 4,892.89 GLOBE TELECOM AC 52142916 128.51 ;LOBAL CITY CAR LEASE & 4,049.14 GLOBE TELECOM AC 52142967 192.8 3,470.68 GLOBE TELECOM AC 52142967 192.86 CAR LEASE & 3,319.07 GLOBE TELECOM AC 52142975 3,434.25 GLOBE TELECOM AC 52143025 128.~ GLOBAL CITY CAR LEASE & 3,314.25 GLOBE TELECOM AC 52143025 128.~ 3,328.29 GLOBE TELECOM AC 52143033 ~GLOBAL CITY CAR LEASE & 6,248.79 GWBE TELECOM AC 52143033 192.81 6,175.39 GWBE TELECOM AC 52143041 ;LOBAL CITY CAR LEASE & 12,453.32 GWBE TELECOM AC 52143068 128.~ GWBE TELECOM AC 52143076 128.~ GLOBAL CITY CAR LEASE & 463.93 GLOBE TELECOM AC 52143092 8,327.68 GWBE TELECOM AC 52143149 192.8' GLOBAL CITY CAR LEASE & 9,389.68 GLOBE TELECOM AC 52143149 192J 6,387.75 GLOBE TELECOM AC 52143165 ~GLOBAL CITY CAR LEASE & 5,449.61 GLOBE TELECOM AC 52143211 192.8o I 5,480.79 GLOBE TELECOM AC 52143211 CAR LEASE & 1,787.68 GLOBE TELECOM AC 52143254 192.81' I 5,236.82 GLOBE TELECOM AC 52143297 ~CAR LEASE & 6,310.61 GLOBE TELECOM AC 52143297 192.~ 1,493.57 GLOBE TELECOM AC 52143319 GLOBAL CITY CAR LEASE & 10,174.07 GLOBE TELECOM AC 52143319 192J 14,436.21 GWBE TELECOM AC 52146784 128.! i GLOBAL CITY CAR LEASE & 1,021.39 GWBE TELECOM AC 52180265 192.86 GLOBE TELECOM AC 52180265 128.57 I GLOBAL CITY CAR LEASE & 652.5 GLOBE TELECOM AC 52315659 192.81 2,072.04 GLOBE TELECOM AC 52471952 128.5/ J I GLOBAL CITY CAR LEASE & GLOBE TELECOM AC 52471952 192.811 I 908.57 GLOBE TELECOM AC 52499385 GLOBAL CITY CAR LEASE & 772.5 GWBE TELECOM AC 52499474 128.~ 290.32 GLOBE TELECOM AC 52534261 I GLOBAL CITY CAR LEASE & GLOBE TELECOM AC 52534369 192J -320.23 GLOBE TELECOM AC 52534369 GLOBAL CITY CAR LEASE & 128.57 GLOBE TELECOM AC 52556842 128.~ 128.57 L CITY CAR LEASE & 128.57 192.8 128.57 1,748.10 L CITY CAR LEASE & 128.57 128.57 938.41 ;WEAL CITY CAR LEASE & 321.43 192.86 '(CAR LEASE & 128.57 192.86 GLOBAL CITY CAR LEASE & 192.86 290.32 ;LOBALCITY CAR LEASE & 218.46 GLOBAL CITY CAR LEASE & I 290.32 I /\ 1/1/ 214.29 A.L CITY CAR LEASE & GLOBAL CITY CAR LEASE & GLOBAL CITY CAR LEASE & GLOBAL CITY CAR LEASE & GLOBAL CITY CAR LEASE & GWBALCITY CAR LEASE & L CITY CAR LEASE & ;LOBAL CITY CAR LEASE & _ CAR LEASE & GLOBAL CITY CAR LEASE & ;LOBALCITY CAR LEASE & ;LOBAL CITY CAR LEASE & GLOBAL CITY CAR LEASE & GLOBAL CITY CAR LEASE & GLOBAL ONE SHUTTLE SERVICE GLOBE A/C 53648112 GLOBE TELECOM GWBE TELECOM A/C 43789236 GWBE TELECOM A/C 43789236 GLOBE TELECOM A/C 43834592 GLOBE TELECOM A/C 45413292 ;LOBE TELECOM A/C 45413314 1 A/C 45413314

RESOLUTION CTA CASE NO. 8402

RESOLUTION 128.57 INNOVE A/C 832233222 5,574.19 CTA CASE NO. 8402 128.57 INNOVE A/C 832588997 152.18 Page 13 o�16 128.57 INNOVE A/C 832588997 111.38 INNOVE A/C 832989314 138.75 GLOBE TELECOM A/C 49231849 204 INNOVE A/C 832989314 138.75 GLOBE TELECOM A/C 49231903 192.86 INNOVE A/C 833014662 254.95 GWBE TELECOM A/C 49235747 192.86 INNOVE A/C 834053949 138.75 GLOBE TELECOM A/C 49235747 192.86 INNOVE A/C 834053949 212.3 GLOBE TELECOM A/C 49301219 128.57 INNOVE A/C 834279883 138.75 GLOBE TELECOM A/C 49301219 128.57 INNOVE A/C 834279883 211.11 GWBE TELECOM A/C 49301219 128.57 INNOVE A/C 834617514 166.05 GWBE TELECOM A/C 4%22201 128.57 INNOVE A/C 834620623 166.05 GWBE TELECOM A/C 49622201 128.57 INNOVE AC 106796221 138.75 GWBE TELECOM A/C 49622252 128.57 INNOVE AC 106796221 138.75 GWBE TELECOM A/C 49622252 128.57 INNOVE AC 106797149 304.86 GLOBE TELECOM A/C 49622279 128.57 INNOVE AC 106797900 304.86 GLOBE TELECOM A/C 49622279 128.57 INNOVE AC 106858805 208.23 GLOBE TELECOM A/C 49622287 128.57 INNOVE AC 106858805 160.18 GLOBE TELECOM A/C 49622287 128.57 INNOVE AC 106884061 208.23 GLOBE TELECOM A/C 49622325 128.57 INNOVE AC 106884061 160.18 GLOBE TELECOM A/C 49622325 128.57 INNOVE AC 106886134 160.18 GLOBE TELECOM A/C 49622341 128.57 INNOVE AC 106886134 160.18 GLOBE TELECOM A/C 49622341 128.57 INNOVE AC 106886134 160.18 GWBE TELECOM A/C 49622384 128.57 INNOVE AC 106922948 160.18 GLOBE TELECOM A/C 49622414 128.57 INNOVE AC 830635288 258.35 GLOBE TELECOM A/C 49622414 128.57 INNOVE AC 830635288 160.18 GLOBE TELECOM A/C 49622414 128.57 INNOVE AC 830635381 304.86 GLOBE TELECOM A/C 49622422 128.57 INNOVE AC 830635436 304.86 GLOBE TELECOM A/C 49622422 128.57 INNOVE AC 830744573 120.82 GLOBE TELECOM A/C 49622449 128.57 INNOVE AC 830744573 106.61 GLOBE TELECOM A/C 49622449 128.57 INNOVE AC 831003302 160.18 GLOBE TELECOM A/C 49622449 128.57 INNOVE AC 831003302 208.23 GLOBE TELECOM A/C 49622457 128.57 INNOVE AC 831003652 154.91 GLOBE TELECOM A/C 49622457 128.57 INNOVE AC 831003652 208.23 GLOBE TELECOM A/C 49622457 128.57 INNOVE AC 831003770 208.23 GLOBE TELECOM A/C 49622503 128.57 INNOVE AC 831003770 160.18 GLOBE TELECOM A/C 49622503 128.57 INNOVE AC 831003897 160.18 GLOBE TELECOM A/C 49622554 128.57 INNOVE AC 831003897 208.23 GLOBE TELECOM A/C 49622554 128.57 INNOVE AC 831004083 208.23 GLOBE TELECOM A/C 49622554 128.57 INNOVE AC 831004083 160.18 GLOBE TELECOM A/C 49622597 128.57 INNOVE AC831004175 208.23 GLOBE TELECOM A/C 49622597 128.57 INNOVE AC 831498908 157.25 GLOBE TELECOM A/C 49622635 128.57 INNOVE AC 831498908 138.75 GLOBE TELECOM A/C 49887779 128.57 INNOVE AC 831502594 157.25 GLOBE TELECOM A/C 49888007 128.57 INNOVE AC 831502594 138.75 GLOBE TELECOM A/C 49888007 128.57 INNOVE AC 831577371 255.12 GLOBE TELECOM A/C 49888112 128.57 INNOVE AC 831577371 138.75 GLOBE TELECOM A/C 49888112 128.57 INNOVE AC 831577518 214.32 GWBE TELECOM A/C 49888287 128.57 INNOVE AC 831578785 250.65 GWBE TELECOM A/C 49888287 INNOVE AC 831579340 241.69 GWBE TELECOM A/C 50038488 204 INNOVE AC 831579420 241.69 GLOBE TELECOM A/C 50038488 128.57 INNOVE AC 831580652 138.75 GLOBE TELECOM A/C 50038488 128.57 INNOVE AC 831589996 223.79 GLOBE TELECOM A/C 50040024 128.57 INNOVE AC 831589996 138.75 GLOBE TELECOM A/C 50040032 128.57 INNOVE AC 831613073 223.79 GLOBE TELECOM A/C 50082169 128.57 INNOVE AC 831613073 138.75 GLOBE TELECOM A/C 50082169 128.57 INNOVE AC 831685892 138.75 GLOBE TELECOM A/C 50310544 128.57 INNOVE AC 831685892 138.75 GLOBE TELECOM A/C 50310773 128.57 INNOVE AC 831758723 223.79 GLOBE TELECOM A/C 50310803 128.57 INNOVE AC 831758723 138.75 GLOBE TELECOM A/C 50310803 128.57 INNOVE AC 831759013 223.79 GLOBE TELECOM A/C 50310803 128.57 INNOVE AC 831759013 138.75 GLOBE TELECOM A/C 50574134 128.57 INNOVE AC 831759191 138.75 GLOBE TELECOM A/C 50574169 387.19 INNOVE AC 831759191 214.67 GWBE TELECOM A/C 50574169 128.57 INNOVE AC 831759283 138.75 GWBE TELECOM A/C 50574193 128.57 INNOVE AC 831759283 223.79 GWBE TELECOM A/C 50574193 128.57 INNOVE AC 831819390 138.75 GWBE TELECOM A/C 50574193 128.57 INNOVE AC 831819745 152.69 GWBE TELECOM A/C 50574355 INNOVE AC 831819745 138.75 GLOBE TELECOM A/C 50612672 204 INNOVE AC 831819794 157.25 GLOBE TELECOM A/C 50612672 464.35 INNOVE AC 831819794 129.63 GLOBE TELECOM A/C 50612672 INNOVE AC 831819886 138.75 GLOBE TELECOM A/C 50612672 204 INNOVE AC831819886 138.75 GLOBE TELECOM A/C 50613776 128.57 INNOVE AC831962678 134.19 GLOBE TELECOM A/C 50613776 INNOVE AC831962678 138.75 GLOBE TELECOM A/C 50613792 204 INNOVE AC 831962887 264.66 GLOBE TELECOM A/C 50613792 128.57 INNOVE AC 831963085 138.75 GLOBE TELECOM A/C 50613814 INNOVE AC 832009304 241.52 GLOBE TELECOM A/C 50613814 204 INNOVE AC 832231843 180.38 GWBE TELECOM A/C 50613822 128.57 INNOVE AC 832231843 138.75 GWBE TELECOM A/C 50613822 128.57 GLOBE TELECOM A/C 50613822 128.57 GLOBE TELECOM A/C 50613822 128.57 GLOBE TELECOM A/C 50613849 128.57 204 128.57

RESOLUTION CTA CASE NO. 8402 GLOBE If A/C 50613865 128.57 lNNOVE AC 832231972 180. 204 INNOVE AC832232133 180.38 138.75 1 A/C 50613873 128.57 INNOVE AC 832232133 157.:"'" 138.' 1 A/C 50613873 128.57 INNOVE AC 832232213 138.75 -~ 180.38 1 A/C 50613873 204 INNOVE AC 832232213 138.75 157.25 GLOBE' 1 A/C 50613881 204 INNOVE AC 832232274 196.68 138.75 GLOBE A./C 50613903 204 INNOVE AC 832232274 138.75 GLOBE A./C 50613911 128.57 INNOVE AC 832388686 210.36 I GLOBE A./C 50613911 204 INNOVE AC 832388686 196.68 I A./C 50613938 GLOBE" 204 INNOVE AC 832588740 138.75 138.7Sl GWBE 1 A/C 50613946 128.57 INNOVE AC 832588740 180.:'" I GWBE :51 l613946 204 lNNOVE AC 832589240 138.: GWBE TELECOM A/C 50613954 128.57 INNOVE AC 832589240 180.38 15J GWBE TELECOM A/C 50613954 204 INNOVE AC 832589539 138.: 138.75 GWBE TELECOM A/C 50613962 204 INNOVE AC 832589539 152.62 I GWBE TELECOM A/C 50613962 128.57 INNOVE AC 832589712 138.75 I GWBE TELECOM A/C 50613997 128.57 INNOVE AC 832619585 138.75 128.57 INNOVE AC 832620049 180.38 GWBE TELECOM A/C 50613997 180.38 138.75 GWBE TELECOM A/C 50613997 204 INNOVE AC 832620049 138.75 I 15~--~5 I GWBE TELECOM A/C 50614004 128.57 INNOVE AC 832686745 138.i5 GLOBE TELECOM A/C 50614012 204 INNOVE AC 832744520 157. 203.5 GWBE TELECOM A/C 50614012 204 lNNOVE AC 832744520 138.75 138. GWBE TELECOM A/C 50614039 128.57 INNOVE AC 832762090 255.i..: I 138.75 I GLOBE TELECOM A/C 50614039 204 INNOVE AC 832762328 129.63 138.75 GLOBE TELECOM A/C 50614047 128.57 INNOVE AC 832762328 138.75 138.75 GWBE TELECOM A/C 50614047 204 INNOVE AC 832876577 138.75 138.75 I GWBE TELECOM A/C 50658656 8.3 INNOVE AC 832877040 138.75 I 138.75 GWBE TELECOM A/C 50799845 128.57 INNOVE AC 832877040 138.75 I 138.7"' I GLOBE TELECOM A/C 50799845 128.57 INNOVE AC 832878073 129.63 128.57 ~NOVE AC 832878073 223.79 GLOB~ TELECOM A/C 50799934 __ 128.57 INNOVE AC 832881157 __ 223.79 -- ---- 138.7. I GLOBE TELECOM A/C 50799934 138.75 223.79 GLOBE TELECOM A/C 50799934 128.57 INNOVE AC 832881157 138.75 I 210.36l GLOBE TELECOM A/C 50799977 128.57 INNOVE AC 832882511 223.79 138.75 GLOBE TELECOM A/C 50799977 128.57 INNOVE AC 832882511 138.75 223.79 GLOBE TELECOM A/C 50799993 128.57 INNOVE AC 832929772 264.07 264. GLOBE TELECOM A/C 50799993 128.57 INNOVE AC 832929772 264.07 I 264.07l GWBE TELECOM A/C 50800002 128.57 INNOVE AC 832989283 264.07 264.07 I GLOBE TELECOM A/C 50800002 128.57 lNNOVE AC 832993708 138.75l 264.07 GWBE TELECOM A/C 50832281 128.57 INNOVE AC 832993708 264.0i 264.0i GLOBE TELECOM A/C 50832281 128.57 INNOVE AC 833013284 106.61 106.61 GLOBE TELECOM A/C 501f832338 128.57 INNOVE AC 833013284 138.75 138.75 GLOBE TELECOM A/C 50883536 128.57 INNOVE AC 833013850 I f f 138.75 GLOBE TELECOM A/C 50883536 128.57 INNOVE AC 833013850 138.75 GLOBE TELECOM A/C 50883544 128.57 INNOVE AC 833015032 147.7 GWBE TELECOM A/C 51251983 204 INNOVE AC 833015032 138.75 138.75 I GLOBE TELECOM A/C 51251983 128.57 lNNOVE AC 833015230 70.32l GLOBE TELECOM A/C 51252122 128.57 INNOVE AC 833015230 GLOBE TELECOM A/C 51252173 204 INNOVE AC 833127460 128.57 INNOVE AC 833127460 GLOBE TELECOM A/C 51252203 GLOBE TELECOM A/C 51252262 128.57 INNOVE AC 833127620 GLOBE TELECOM A/C 51252262 204 INNOVE AC 833127620 GLOBE TELECOM A/C 51252262 128.57 INNOVE AC 833128087 GWBE TELECOM A/C 51424322 605.83 INNOVE AC 833128087 GWBE TELECOM A/C 51424322 128.57 INNOVE AC 833128690 GLOBE TELECOM A/C 51424772 605.83 INNOVE AC 833128690 GLOBE TELECOM A/C 51424772 128.57 INNOVE AC 833128782 GLOBE TELECOM A/C 51424888 605.83 INNOVE AC 833128782 GLOBE TELECOM AjC 51424888 128.57 INNOVE AC 833129000 GLOBE TELECOM A/C 51771332 321.43 INNOVE AC 833129000 GLOBE TELE<;_OM A/C 51771332 321.43 INNOVE AC 833325452 GLOBE' M A/C 51771421 535.71 INNOVE AC 833335605 GLOBE' f A/C 51771421 535.71 INNOVE AC 833336466 GLOBE' f A/C 51771545 321.43 INNOVE AC 833339260 693.69 INNOVE AC 833340732 GLOBE 1 A/C 51771545 GLOBE f A/C 51771561 1,695.91 INNOVE AC 833342307 GLOBE 1 A/C 51771561 321.43 INNOVE AC 833342830 GLOBE 1 A/C 51771561 321.43 INNOVE AC 833342830 GWBE 1 A/C 51963878 214.29 INNOVE AC 833342910 1 A/C 51963878 -"'GLOiiE 214.29 INNOVE AC 833343304 GLOBE 1 A/C 51963886 214.29 INNOVE AC 833570193 f A/C 51963886 214.29 INNOVE AC 833570193 JM AjC 51963991 214.29 INNOVE AC 833592216 1 A/C 51963991 214.29 INNOVE AC 833592216 ~ A/C 51963991 214.29 INNOVE I 214.29 INNOVE AC 833986113 ~" A./C 51964017 OBE JM A/C 51964017 214.29 INNOVE AC 833986113 GLOBE 1 A/C 51964084 214.29 INNOVE AC 834268082 GLOBETl 1 A/C 51964114 214.29 INNOVE AC 834268082 GLOBE 1 A/C 51964114 214.29 INNOVE COMMUNICATIONS A/C 8335 GWBE 1 A/C 51964173 214.29 INNOVE COMMUNICATIONS A/C 8335

RESOLUTION CTA CASE NO. 8402 Page 15 of16 In addition, the Court finds no compelling reason to re-open the trial for the presentation of supplemental evidence. The Court has already given petitioner sufficient time to present evidence as it deems sufficient to substantiate a claim for refund. It bears stressing that tax refunds are in the nature of tax exemptions. As such, they are regarded as in derogation of sovereign authority and to be construed in strictissimi juris against the person or entity claiming the exemption.! I WHEREFORE, in view of the foregoing, the Court Motion for Partial Reconsideration (Re: Decision promulgated on 16 September 2014) filed by respondent is hereby DENIED, while the Omnibus Motion filed by petitioner is resolved, as follows: 1. Motion for Partial Reconsideration is hereby DENIED for lack of merit. However, the dispositive portion of the Decision dated September 16, 2014 is hereby modified as to Procter and Gamble Phil. Mfg. Corp., G.R No. 66838, December 2, 1991, 204 I SCRA 377; Commissioner of Internal Revenue v. S.C. Johnson & Son, Inc., G.R. No. 127105, June 25, 1999, 309 SCRA 87. ~

RESOLUTION CfA CASE NO. 8402 Page 16 o�16 the amount granted for the issuance of tax credit certificate to Php15,856,069.97;I2 2. Motion to Reopen Trial for Presentation of Supplemental Evidence is hereby DENIED. 3. Motion for Clarification is hereby GRANTED. SO ORDERED. LOVELLR. ~ Associat, ~. -f'}.,d4... � t._ ' R. FABON-VICTORINO MA. BELEN M. RINGPIS-LIBAN ssociate Justice Associate Justice 12 Input VAT claimed for refund Php 34,107,284.30 Less: Disallowances Php 1,019,622.18 Unamortized Input VAT on Capital Goods exceeding P1M 14,068,220.19 15,087,842.37 Input VAT on purchases of goods and services other Php 19,019,441.93 than capital goods 1,353,651.47 Valid Input VAT Php 17,665,790.46 Less: Output VAT Valid Excess Input VAT (Php1,048,052.79less Php28,430.61) Valid Zero-Rated Sales/ Receipts Php1,600,232,233.09 Divided by Total Reported Zero-Rated Sales/Receipt 1,782,873,522.27 ( Multiply by_ Vabd Excess Input VAT 17,665,790.46 Excess Input VAT attributable to the Valid Zero-Rated Sales/Receipts Php15,856,069.97