THE Department of Justice has summoned Rappler president Maria Ressa and treasurer James Bitanga over the tax evasion complaint filed by the Bureau of Internal Revenue against Rappler Holdings Corp.
Ressa and Bitanga received the subpoena, signed by Assistant State Prosecutor Zenamar J.L. Machacon-Caparros on April 11, on April 16.
Caparros directed Ressa—who called the BIR complaint “ludicrous”—and Bitanga to submit their “counter-affidavit and other supporting documents” or affidavits by witnesses, if any, at 11 a.m. Two dates were listed: April 24 and May 7.
“You are hereby warned that failure on your part to comply with this subpoena shall be considered as a waiver to present your defense and the case shall be considered submitted for resolution based on the evidence on record,” Caparros said.
The BIR last March 8 claimed Rappler had profited from the sale of Philippine Depositary Receipts to two foreign entities in 2015 and that it should pay income and value added tax for the transaction.
Francis Lim, a securities law expert and legal counsel of Rappler argued the capital raised from issued PDRs had not been booked by Rappler as income.
“There is no income taxable event, so to speak. When you raise capital, that’s not income,” Lim said in an interview with ANC.
The BIR said Rappler was subject to income tax and VAT as the company is a “dealer in securities”—a claim also contested by Lim.
He said then that just because Rappler issued PDRs did not make it a dealer in securities.
This interpretation, Lim added, would make any company or person who buys and sells shares a dealer in securities.
In a referral letter dated March 8, BIR Commissioner Caesar Dulay told then Justice secretary Vitaliano Aguirre II that “RHC, Ms. Ressa, and Mr. Bitanga are being charged for willful attempt to evade or defeat tax and deliberate failure to supply correct and accurate information for taxable year 2015.”
Dulay said RHC, Ressa, and Bitanga violated Sections 254 and 255 in relation to Sections 253 and 256 of the National Internal Revenue Code of 1997, as amended.
The DoJ’s Caparros said Ressa and Bitanga should submit the necessary documents at the second floor of the Prosecution Building of the Department of Justice in Padre Faura, Manila.
“This is clear intimidation and harassment. The government is wasting its energy and resources in an attempt to silence reporting that does not please the administration,” Ressa said.