Rappler CEO Maria Ressa (CNN Ph photo courtesy)
MANILA — A Pasig court handed down an acquittal verdict for Nobel Peace Prize laureate and CEO of Rappler, Maria Ressa, as well as Rappler Holdings Corporation (RHC) in their tax evasion case on Tuesday, 12 Sept 2023.
The ruling, delivered by Presiding Judge Ana Teresa Cornejo-Tomacruz of Pasig City Regional Trial Court Branch 157, declared in its 18-page decision: “In light of the circumstances, both Rappler Holdings Corporation and Maria A. Ressa are hereby cleared of any wrongdoing in Criminal Case No. R-PSG-18-02983-CR, which pertained to the alleged violation of Section 255 of the 1997 National Internal Revenue Code, as amended. Additionally, the civil aspect of the case has been dismissed.”
The Pasig court justified the acquittal by stating that RHC had not functioned as a securities dealer when it issued PDRs (Philippine Depositary Receipts) to North Base Media. Instead, it emphasized that the PDR transactions were in accordance with RHC’s role as a holding company.
“The issuance of PDRs to NBM was not carried out by RHC as a means to generate profit in its regular business operations. Rather, it was part of a larger strategy aimed at legally raising capital for its subsidiary. Therefore, RHC is not liable for VAT on these transactions under Section 105 of the Tax Code,” clarified the court. (ai/mnm)
