It is clear that unless authorized by the CIR himself or by his duly authorized representative, through a LOA, an examination of

the taxpayer cannot ordinarily be undertaken. In all tax assessments, the audit investigation must be conducted by a duly
designated Revenue Officer (RO) tasked to perform audit and examination of a taxpayer’s books, pursuant to a Letter of Authority
(LOA) issued by the Regional Director. In case of re-assignment or transfer of cases to another RO, a new LOA with a
corresponding notation thereto must be issued (The Aristocrat Franchise Corporation vs CIR, CTA E.B. No. 1575, March 21,
2018).

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A Revenue District Officer has no authority to issue a Letter of Authority (LOA) much less to re-assign them to other revenue
officer. Pursuant to Section 10 and 13 of the NIRC of 1997, as amended, it is the Revenue Regional Director who may issue an
LOA. A revenue officer cannot examine a taxpayer or recommend the assessment of any deficiency tax due in the absence of a
LOA (Composite Materials Inc. vs CIR, CTA E.B. No. 1314, March 21, 2018).

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To qualify for VAT zero-rating, one must prove by sufficient evidence that its reported zero-rated sales are valid sales to entities
duly registered and accredited with the PEZA and SBMA under Section 106(A)(2)(c) of the Tax Code, in relation to Section 4.113-
1 (A)(1), (B)(1) and (2)(c) of Revenue Regulation (RR) No. 16-05, by presenting the following documents:

1.) The sales invoice as proof of sale of goods; and

2.) Any proof of the buyer’s entitlement to tax incentives under special law (Colt Commercial, Inc. vs CIR, CTA Case
No. 9110, March 27, 2018).

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In order for the supply of services to be VAT zero-rated under Section 108(B)(2) of the NIRC of 1997, as amended, the following
requisites must be met:

1.) The services must be other than processing, manufacturing or repacking of goods;

2.) The recipient of such services is doing business outside the Philippines; and

3.) The payment for such services must be in acceptable foreign currency accounted for in accordance with the Bangko
Sentral ng Pilipinas (BSP) rules and regulation (Macquarie Offshore Services Pty. Ltd.- Philippine Branch vs CIR,
CTA Case Nos. 8936, 8994 &9040, March 27, 2018).

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Tax refunds, like tax exemptions, are construed strictly against the taxpayer. Hence, an applicant for a claim for tax refund or tax
credit must not only prove entitlement to the claim but also compliance with all the documentary and evidentiary requirements.

The taxpayer claiming a VAT input tax credit or refund has the burden of proving that he is entitled to the refund or credit by
submitting evidence that he has complied with the requirements laid down in the tax code and the BIR's revenue regulations
under which such privilege of credit or refund is accorded. The invoicing requirements for a VAT -registered taxpayer as provided
in the NIRC and revenue regulations are clear. A VAT registered taxpayer is required to comply with all the VAT invoicing
requirements to be able to file for a claim for input taxes on domestic purchases for goods or services attributable to zero-related
sales (WNS Global Services Philippines, Inc. vs CIR, CTA Case No. 8574, March 26, 2018).

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