MANILA – The Department of Justice (DOJ) has found probable cause to indict Rappler Holdings Corporation (RHC) and two of its staff for tax evasion and failure to file tax returns.
In a resolution penned by Assistant Prosecutor Zenamar Machacon Caparros released on Friday, those held liable for violation of the National Internal Revenue Code are RHC, its corporate president Maria Ressa, and accountant Noel Baladiang.
Based on the resolution, the respondents showed “willful attempt to evade or defeat tax and willful failure to supply correct and accurate information” in the company’s income tax returns and value added tax in 2015.
The RHC acted as a middleman in the buying of shares of stock from Rappler, Inc. for the purpose of underwriting Philippine Depositary Receipts (PDRs) for resale, the resolution said.
Ressa, meanwhile, is being held liable for the infractions as she was the president of the RHC at the time of transaction – following Section 253 of the Tax Code.
Also recommended for charges is RHC accountant Noel Baladiang for violating Section 257 of the Tax Code as he certified the financial statements of RHC despite its alleged failure to disclose the purchase of Rappler, Inc.’s shares.
RHC treasurer James Bitanga, meanwhile, was absolved from the case upon Ressa’s certification that he “was an inactive and nominal treasurer who did not participate in the management and operations of RHC.”
The BIR, in its complaint earlier this year, said that the RHC and Ressa failed to indicate in the company’s 2015 tax returns a total gain of almost P162.5-million for the issuance of Philippine Depositary Receipts (PDR) to Washington DC-based NBM Rappler LP, a unit of North Base Media and Omidyar Network Find LLC (Omidyar).
A PDR is a security which grants the holder the right to the delivery or sale of the underlying shares of stock. It derives its value from an underlying asset. Its value depends on the value of its underlying asset, which is the shares of stock of a corporation.
Rappler, in a statement, maintained that the indictment “is a clear form of continuing intimidation and harassment” against the company and “an attempt to silence reporting that does not please the administration.”/PN
