ONLINE news site Rappler on Monday sought the dismissal of the P133.8-million tax evasion charge against the company and its executives for lack of evidence.
Rappler Holdings Corp., through its president Maria Ressa, submitted a counter-affidavit before investigating Assistant State Prosecutor Zenamar Machacon-Caparros, denying the allegations in the complaint filed by the Bureau of Internal Revenue against the company in March.
In particular, RHC denied violating the National Internal Revenue Code by failing to supply accurate information in its annual income tax return and value-added tax return for 2015.
Rappler rejected the BIR’s allegation that it acted as dealer in securities when it purchased common shares from Rappler Inc. and later on sold Philippine Depositary Receipts to two foreign firms.
“We adequately disclosed our PDR and subscription transactions in our reports to and filing with the SEC and BIR,” Ressa said.
“We could not be accused of misrepresentation in our tax returns because there was no reason for us to conclude that the claimed ties were due.”
Ressa, who appeared before the Justice department to subscribe to their answer, said the tax evasion charge was “harassment and selective prosecution” on the part of the BIR.
“They asked for our books three days before they filed the charges. This is another instance where you have a case of political harassment because we’re journalists trying to do our jobs,” Ressa said.
“I appeal again to the BIR. Their job is to investigate before filing charges. The complainants’ treatment of us is selective justice, and will have a chilling effect on PDR issuers.”
With the submission of Rappler’s answer, the prosecutor required the BIR to submit its comment in the next hearing set for May 21.
The BIR filed the complaint with the Justice department after its probe showed that RHC purchased common shares from Rappler Inc. worth P19,245,975. Then it issued and sold Philippine Depositary Receipts to two foreign firms worth P181,658,758.67.
The bureau 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 BIR also alleged that RHC was subject to income tax and VAT, being a dealer in securities.
However, the annual ITR and VAT returns for 2015, according to the BIR, did not reflect any IT and VAT from the PDR transaction.
The foreign owners of Rappler have reportedly donated their shares to local stockholders to comply with the constitutional requirement.
