The Rappler newsroom at Capitol Commons in Pasig City —GRIG C.MONTEGRANDE
An online news company that had irked President Duterte for its critical coverage of his administration now faces a tax evasion case approved for filing by the Department of Justice (DOJ).
The DOJ move came four months after the case against Rappler was submitted for resolution.
The complaint was filed by the Bureau of Internal Revenue (BIR) last March.
The BIR accused Rappler Holdings Corp. (RHC) of buying commons shares from Rappler Inc. worth P19 million.
It was followed by the issuance and sale of Philippine Depositary Receipts (PDRs) to two foreign companies worth P181 million.
The BIR alleged that the company was liable for not paying P108 million in taxes.
The BIR said RHC used the same common shares it purchased from Rappler as the underlying share of the PDRs for profit and transmitted economic rights to the PDR holders.
The revenue agency explained that RHC was subject to income tax and value-added tax, being a dealer in securities.
The company’s annual income tax return (ITR) and VAT returns for 2015, according to the BIR, does not reflect any ITR and VAT from the PDR transaction.—REPORTS FROM JEROME ANING AND TETCH TORRES-TUPAS