Tax court stands by ruling clearing Ressa in tax case

CTA.JUDICIARY.GOV.PH/

THE COURT of Tax Appeals (CTA) has stood by its decision to acquit Rappler Holdings Corp. and its founder, Maria A. Ressa, of tax evasion.

In an 11-page resolution made public on Wednesday, the CTA First Division said government prosecutors had failed to present compelling arguments to reverse the ruling.

“Not having been found liable for said deficiency taxes, no civil liability may be imposed upon the accused,” CTA Associate Justice Catherine T. Manahan said in the ruling.

“This court will no longer belabor the justifications and discussions made in disposing of said issues as these will merely repeat disquisitions and rulings embodied in the assailed decision.”

In January, the CTA acquitted the journalist and the news website’s holding company for lack of factual and legal basis.

The Bureau of Internal Revenue under ex-President Rodrigo R. Duterte accused Ms. Ressa and her company of evading taxes by failing to declare Philippine depositary receipts it sold to foreign investment firms North Base Media and Omidyar Network Fund LLC in their income tax returns in 2015.

The government alleged that Rappler had earned P162.41 million in income from the receipts. Ms. Ressa and Rappler denied the charges, saying the transactions involved legitimate financial mechanisms that did not generate taxable income.

A Philippine depositary receipt is a security that gives its holder the right to the sale of the underlying shares of stock, according to the Philippine Stock Exchange. It is not evidence or certificates of ownership in a company.

The tax court ruled Rappler had not gained taxable income from the receipts. Under the country’s Tax Code, income tax may be imposed on ventures that yield profit.

In July, the Court of Appeals convicted her and a former Rappler researcher of cyber-libel over a 2012 article that claimed a businessman had been involved in human trafficking, murder and drug smuggling.

Her lawyer has said they would bring the case to the Philippine Supreme Court.

Last year, the Securities and Exchange Commission upheld Rappler’s closure for allegedly violating restrictions on foreign ownership in mass media.

Senator Ana Theresia N. Hontiveros-Baraquel said in January the dismissal of the tax evasion case was an important victory for free press in the Philippines.

“In a democracy, truth-telling and sharing independent views is not a crime, even if it irks and annoys the powers that be,” she said in a statement. — John Victor D. Ordoñez