REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
REVENUE REGION NO. 008 - MAKATI
RDO No. 049 - NORTH MAKATI

PRELIMINARY ASSESSMENT NOTICE

November 27, 2017

PRESIDENT
BOTTLEZONE CORPORATION
#3029, MAYON STREET, OLYMPIA, CITY OF
MAKATI 1207
TIN: 006-814-922-00000

Sir/Madam:

Please be informed that after investigation there has been found due from you deficiency
Improperly Accumulated Earnings Tax, Documentary Stamp Tax, Value Added Tax for taxable period from
January 01, 2016 to December 31, 2016 as shown hereunder:

I. IMPROPERLY ACCUMULATED EARNINGS TAX

Assessment No. P-LA012144-IAET-049-2016-11-17-0000051083

Taxable Income P 4,108,763.00

Add: a) Income subjected to final tax P 0.00
b) NOLCO 0.00
c) Income exempt from tax 0.00
d) Income excluded from gross
income 0.00 0.00
Total P 4,108,763.00
Less: Income Tax Paid P 24,999.90
Dividends Declared / Paid 0.00 24,999.90
Net Amount P 4,083,763.10
Add: Retained earnings from prior years 9,778,463.00
Total Accumulated Earnings as of taxable
period ending (12/31/2016) P 13,862,226.10
(Less): Amount that may be retained
8,062,500.00
Improperly Accumulated Taxable Income
(IATI) P 5,799,726.10
Tax Rate (Section 29 of NIRC) 10%
Improperly Accumulated Earnings Tax
(IAET) P 579,972.61
Add: Surcharge P 144,993.15
*20% Interest per annum from 01/11/2017
to 11/15/2017 97,880.31
Compromise Penalty 0.00 242,873.46
*Total Deficiency Improperly Accumulated
Earnings Tax Due P 822,846.07

II. DEFICIENCY DOCUMENTARY STAMP

PRELIMINARY ASSESSMENT NOTICE Page 1 of 3

AUDM35/012144/2017
 Assessment No. P-LA012144-DS-049-2016-11-17-0000051084

Tax Due (Per Audit) P 40,000.00

Add / (Less) : Discrepancies / Adjustments
0.00
Tax Due (Per Audit) P 40,000.00
Less: Allowable tax credits /payments
Tax Paid Per Return P 0.00
Add/(Less): Tax Payment Adjustment 0.00 0.00
Deficiency Documentary Stamp Tax Due /
(Overpayment) 40,000.00
Add: Surcharge P 10,000.00
*20% Interest per annum from
01/05/2017 to 11/15/2017 6,882.19
Compromise Penalty 0.00 16,882.19
*TOTAL Documentary Stamp Tax Due 56,882.19

III. DEFICIENCY VALUE-ADDED TAX

Assessment No. P-LA012144-VT-049-2016-11-17-0000051085

Taxable Sales / Receipts(Per Return) P 130,869,470.24

Add / (Less) : Adjustments
2,812,751.76
Taxable Sales / Receipts (Per Audit) P 133,682,222.00
Output Tax 16,041,866.64
Less: Input Tax 15,597,641.67
VAT Due(Overpayment/Tax Credit Refund) 444,224.97
Less: VAT Withheld / Paid (Per Audit) 82,309.76
Deficiency Value-Added Tax Due /
(Overpayment) P 361,915.21
Add: Surcharge P 0.00
*20% Interest per annum from 01/26/2017
to 11/15/2017 58,104.74
Compromise Penalty 0.00 58,104.74
*TOTAL VAT Due 420,019.95

TOTAL AMOUNT DUE AND PAYABLE P 1,299,748.21

* Please note that the interest and the total amount due will have to be adjusted if paid beyond November
15, 2017.

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AUDM35/012144/2017
 The complete details of the factual and legal basis covering the aforementioned discrepancies
established during the investigation of this case and details of Administrative Penalties/Other Taxes, if
applicable, are shown in the accompanying ANNEX "A" of this letter.

The surcharge, if applicable, has been imposed pursuant to the provisions of section 248 of the
Tax Code of 1997, as amended.

The 20% interest per annum has been imposed pursuant to the provisions of Section 249(B) of the
Tax Code of 1997.

The compromise penalty, if applicable, has been imposed pursuant to RMO No. 7-2015.

Pursuant to the provisions of Section 228 of the National Internal Revenue Code of 1997 and its
implementing Revenue Regulations, you are hereby given fifteen (15) days from receipt hereof to pay the
aforesaid deficiency Improperly Accumulated Earnings Tax, Documentary Stamp Tax, Value Added Tax. If
we fail to hear from you within the said period, a formal letter of demand and assessment notice shall be
issued by this Office calling for payment of your aforesaid deficiency tax/es, inclusive of the
aforementioned civil penalty and interest.

We hope that you will give this matter your preferential attention.

Very truly yours,

CAESAR R. DULAY
COMMISSIONER OF INTERNAL REVENUE

BY:

GLEN A. GERALDINO
REGIONAL DIRECTOR

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AUDM35/012144/2017