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DOJ summons Maria Ressa over P133-M tax rap


The Department of Justice (DOJ) has summoned online news network Rappler president Maria Ressa and treasurer James Bitanga over the P133.84-million tax evasion complaint filed by the Bureau of Internal Revenue (BIR) in March.

Assistant State Prosecutor Zenamar J.L. Machacon-Caparros ordered Ressa and Bitanga to submit their counter-affidavit and other supporting documents or affidavits by their witnesses, if any, on April 24 and May 7 at the DOJ office in Manila.

"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," the DOJ said in the subpoena signed April 11.

The BIR on March 8 filed a complaint against Rappler Holdings Corporation (RHC), Ressa, and Bitanga at the DOJ 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 (VAT) returns" in 2015.

The bureau alleged that the corporation did not pay income tax and VAT despite supposedly profiting from the sale of Philippine Depositary Receipts (PDR) to two foreign judicial entities in 2015.

“The purchase of shares and the subsequent issuance of the PDRs for profit that transmitted economic rights (e.g. financial returns or cash distributions) derived from the equity of Rappler Inc. to the PDR holders is proof that Rappler Holdings is engaged in purchase of securities and resale thereof,” the BIR's complaint claimed.

“As a consequence of its acts and omissions, the aggregate tax liability of Rappler Holdings amounted to P133,841,305.75," it said.

Ressa had said that the complaint was an "intimidation and harassment."

“The government is wasting its energy and resources in an attempt to silence reporting that does not please the administration,” she had said.

Rappler said it has been paying taxes “accurately, promptly, and diligently."

The BIR complaint was filed after the Securities and Exchange Commission revoked Rappler's incorporation papers due to an alleged violation of the constitutional restriction on foreign ownership of media companies. —ALG, GMA News

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