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In addition to a case before the Court of Tax Appeals, the Department of Justice files a new tax charge in the Pasig Regional Court of First Instance
CHARGES. Rappler Holdings Corporation and Maria Ressa face another tax case in a separate court in Pasig over the company's Philippine Depositary Receipts (PDR). Screenshot of Rappler video
MANILA, Philippines – A separate tax case has been filed in the Pasig Regional Court of First Instance against Rappler Holdings Corporation and Maria Ressa, adding to the list of charges also pending before the Tax Court of Appeal.
On 26 and 28 November, the Ministry of Justice (MJ) referred four tax cases to the CTA, but Rappler's lawyers discovered on Thursday 29 November that a fifth case had been filed separately before RTC Pasig.
The charges were filed in the Pasig court on 14 November. This occurred one day before the DOJ decided to serve a copy of the indictment on Rappler's boards.
This separate case means that two courts can now issue an arrest warrant against Ressa, which has received two major awards from international groups this month. (WATCH: Maria Ressa receives the Knight International Award for Journalism)
The case in Pasig RTC concerns an alleged violation of Article 255 of the Tax Code, related to Rappler's alleged failure to provide correct information in its VAT return for the second quarter of the year. taxation year 2015.
The Department of Justice has accused Rappler of having earned a taxable income worth $ P2.45 million (46, 693) for this period, and thus "resulting in a value-added tax due to deficiencies of $ 294,258 (US $ 5,608), excluding surtax and interest, to the damages suffered by the Government".
Ressa has described it as a desperate move to silence independent voices. (READ: The story of Rappler)
"We continue to tell the story of the nation," Ressa said. "These cases will not intimidate us and prevent us from holding civil servants accountable through our stories." (WATCH: Maria Ressa receives the International Press Freedom Prize)
A provision of the CTA Act states that the Tax Court must have jurisdiction over the origin of all tax code cases "provided that … the principal amount of the costs and penalties claimed is less than one million".
The Ministry of Justice has recommended a deposit of 60,000 pesos ($ 1,145). The charges in the CTA recommended a deposit of P240,000 (approximately $ 4,000). The two courts would now proceed to assess the probable grounds for issuing an arrest warrant.
The charges stem from Filip's Filipino Filing Receipts, a mechanism through which Filipino companies can have foreign investments. Rappler handed over RDPs to the foreign investor Omidyar.
The RDPs were the basis of the Order of the Securities and Exchange Commission (SEC) of last January revoking the license of Rappler, an order that the Court of Appeal has not upheld.
In its July ruling, the Court of Appeal (CA) said the default was resolved when Omidyar donated the RDPs to Filipino's Rappler executives. He referred the case to the SEC for review. (LILY: As usual for Rappler, CA urges the revision of the stop order)
The Secretary of Justice, Menardo Guevarra, said that the filing of an appeal by Rappler did not prevent the Ministry of Justice from going ahead and laying charges in front of the tribunal. Rappler has filed a petition for reconsideration with the Department of Justice.
The DOJ stated that the published PROs made Rappler a reseller of titles. Rappler's General Counsel, Francis Lim, rejected this complaint, claiming that he had no legal right.
Lim had already pointed out that the network giants, GMA and ABS-CBN, had RDPs similar to those of Rappler, with similar agreements.
Ministry of Justice also investigates Ressa for cyber-defamation and violation of the fake law. – Rappler.com
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