Ressa, Rappler Holdings beat tax evasion raps anew
A PASIG City court has cleared Rappler Holdings Corp. and its founder and Chief Executive Officer Nobel Peace Prize laureate Maria A. Ressa of tax evasion, four months after the country’s tax court acquitted her of the same charge.
“This is a victory not just for Rappler but for everyone who has kept the faith that a free and responsible press empowers communities and strengthens democracy,” Rappler said in a statement, citing the ruling handed down by the Pasig City Regional Trial Court Branch 157 on Tuesday.
The Bureau of Internal Revenue (BIR), during the presidency of Rodrigo R. Duterte, accused Ms. Ressa and her company of evading taxes by failing to declare Philippine depositary receipts it sold to foreign investment firms North Base Media and Omidyar Network Fund LLC in their income tax returns in 2015.
A Philippine depositary receipt is a security that gives its holder the right to the sale of the underlying shares of stock, according to the Philippine Stock Exchange. It is not evidence or certificates of ownership in a company.
The court said Rappler had not gained taxable income from the receipts. Under the country’s Tax Code, income tax may be imposed on ventures that yield profit.
In May, the Court of Tax Appeals stood by its decision to acquit Ms. Ressa and her media organization’s holdings company, citing a lack of evidence. — John Victor D. Ordoñez
