BIR asks DOJ to prosecute Rappler for tax evasion

March 8, 2018

The Bureau of Internal Revenue (BIR) on Thursday asked the Department of Justice to prosecute Rappler Holdings Corporation (RHC) and its officers for tax evasion.

In a complaint, the BIR accused  RHC and its president, Maria Ressa, and its treasurer James Bitanga of violating the National Internal Revenue Code, specifically for willful attempt to evade or defeat tax and for deliberate failure to supply correct and accurate information in its annual income tax return (ITR) and value added tax returns (VAT) for 2015.

The complaint alleged RHC bought common shares from Rappler Inc. worth P19, 245,975.00. Then, it issued and sold Philippine Depositary Receipts (PDRs) to two foreign firms worth P181, 658,758.67.

BIR said RHC used the same common shares it purchased from Rappler Inc. as the underlying share of the PDRs for profit and transmitted economic rights to the PDR holders.

The bureau said RHC is subject to income tax and VAT, being a dealer in securities.

But the annual ITR and VAT returns for 2015 does not reflect any IT and VAT from the PDR transaction, the BIR said.

“As consequence of its acts and omissions, the aggregate tax liability of RHC amounted to P133,841,305.75 broken down as follows: IT-P91,320,481.08 and VAT-P42,520,824.67,” the BIR alleged. DMS