DOJ OKS tax evasion case vs Rappler: The Department of Justice (DOJ) has approved the filing of tax evasion case against online news outfit Rappler. The DOJ’s approval came almost four months after the case was submitted for resolution.
The complaint against Rappler was filed by the Bureau of Internal Revenue (BIR) last March. Based on the complaint, Rappler Holdings Corp. (RHC) purchased common shares from Rappler, Inc. worth PHP19,245,975. Then, it issued and sold Philippine Depositary Receipts (PDRs) to two foreign firms worth PHP181,658,758.
The BIR alleged the company is liable for non-payment of PHP133,841,305 — broken down into PHP91,320,481 in income tax and PHP42,520,824 in value-added tax (VAT) — for the year 2015.
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 agency explained that RHC is subject to income tax and VAT, being a dealer in securities. However, the 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. /kga