Pasig court clears Rappler of tax evasion

FILE: Finally out. Thank you for your support! #HoldTheLine (Photo: Maria Ressa/Twitter)

MANILA – The Pasig Regional Trial Court (RTC) has cleared online news firm Rappler and its publisher Maria A. Ressa of tax evasion case arising from the investments of an American firm, North Base Media (NBM).

In her judgment, Pasig RTC Branch 157 Judge Ana Teresa T. Cornejo-Tomacruz acquitted Rappler Holdings Corp.

(RHC) and Ressa “on the ground that they did not commit the offense charged in the information.”

The court also ordered that the civil aspect of the case be dismissed.

The court said the investment instruments known as Philippine depositary receipts (PDRs) cannot be regarded as a revenue on the part of RHC as it was solely intended to be used as a fund for RHC to subscribe to Rappler Inc. shares.

“Consequently, RHC did not act as a dealer in securities through Ms.

Ressa when it issued the PDRs to NBM.

The PDR transactions were investment activities that were in line with the RHC’s primary purpose as a holding company of RI. RHC did not sell the PDRs in the regular course of its business to gain profit, but issued the PDRs as part of a larger scheme to legally raise capital for its subsidiary,” the court added.

The court also said the “PDR subscription price were not proceeds arising from the sale of the PDRs to NBM that should have been declared in RHC’s VAT (value added tax) return.”

“As a result, it cannot be said that RHC willfully filed an inaccurate VAT return or that it is liable for any deficiency VAT relative to the PDR transaction with NBM. RHC and Ms. Ressa are thus absolved from any criminal or civil liability in this case,” it added.

Pending before the Supreme Court (SC) and the Court of Appeals (CA) are cases appealing the conviction of Ressa for cyber-libel and an order for the closure of the news outfit.