I. SMZ, Inc. is a VAT-registered enterprise engaged in the general construction business. HP International contracts the services of SMZ, Inc. to construct HP lnternational's factory building located in the Laguna Techno Park, a special economic zone. HP International is registered with the Philippine Economic Zone Authority (PEZA) as an ecozone export enterprise, and, as such, enjoys income tax holiday pursuant to the Special Economic Zone Act of 1995. SMZ, Inc. files an application with the Bureau of Internal Revenue (BIR) for the VAT zero-rating of its sale of services to HP International. However, the BIR denies SMZ, lnc.'s application on the ground that HP International already enjoys income tax holiday. Is the BIR correct in denying SMZ, lnc.'s application? Explain your answer. (6%)