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Advocates Philippines
Pasig Court Acquits Nobel Laureate Maria Ressa And Rappler Of Tax Evasion Charges
Photo credit: Maria Ressa
News Website Rappler reported that a Pasig City court acquitted Nobel Peace Prize laureate and the media company’s chief executive officer Maria Ressa, along with Rappler Holdings Corporation (RHC), of tax evasion charges on Tuesday, September 12.
This ruling marks the end of a protracted legal battle that spanned nearly five years and had its origins during the administration of former Philippine president Rodrigo Duterte.
The Pasig City Regional Trial Court Branch 157, presided over by Judge Ana Teresa Cornejo-Tomacruz, delivered an 18-page decision, stating, “Rappler Holdings Corporation and Maria A. Ressa are hereby ACQUITTED in Criminal Case No. R-PSG-18-02983-CR for violation of Section 255 of the 1997 National Internal Revenue Code, as amended, on the ground that they did not commit the offense charged in the Information. Meanwhile, the civil aspect of the case is DISMISSED.”
The court's ruling emphasized that Rappler Holdings Corporation did not act as a securities dealer when issuing Philippine Depositary Receipts (PDRs) to North Base Media (NBM). It clarified that these PDR transactions were in line with RHC's purpose as a holding company, primarily intended to raise capital for its subsidiary rather than for profit. As such, the court determined that RHC was not liable to pay Value Added Tax (VAT) on these transactions under Section 105 of the Tax Code.
The grounds for acquittal in this case closely mirrored the earlier decision by the Court of Tax Appeals (CTA) in January, creating a legal precedent. With this latest verdict, the prosecution is unable to appeal the criminal aspect of the case due to the double jeopardy rule, as protected by Section 21 of the Constitution, which prevents a person from being tried twice for the same offense.
This court victory comes after years of legal battles and hardships for Rappler and Maria Ressa, who had faced relentless online attacks, unjust arrests, detentions, and red-tagging. Rappler released a statement celebrating the victory, stating, “This is a victory not just for Rappler but for everyone who has kept the faith that a free and responsible press empowers communities and strengthens democracy.”
The acquittal in this case follows the earlier CTA decision in January 2023, which cleared Maria Ressa and RHC of four tax-related charges, stating that the Bureau of Internal Revenue had "no factual or legal basis" for these complaints. With the dismissal of this last tax case, only two active cases remain against Rappler and its CEO: an appeal on their cyber libel conviction pending before the Supreme Court and an appeal regarding the closure order issued against Rappler pending at the Court of Appeals.
The case decided by the Pasig court revolved around the alleged violation of Section 255 of the National Internal Revenue Code, related to Rappler's second-quarter value-added tax (VAT) return for the taxable year 2015. This case stemmed from RHC's issuance of Philippine Depositary Receipts (PDRs) to NBM Rappler and Omidyar Network Fund. PDRs grant their holders certain rights but do not confer ownership of the underlying shares.
The prosecution had argued that RHC was involved in the issuance and sale of securities, making it liable for VAT, but the defense contended that the PDR transaction was solely intended to raise capital and did not involve the sale of securities.
This ruling marks the end of a protracted legal battle that spanned nearly five years and had its origins during the administration of former Philippine president Rodrigo Duterte.
The Pasig City Regional Trial Court Branch 157, presided over by Judge Ana Teresa Cornejo-Tomacruz, delivered an 18-page decision, stating, “Rappler Holdings Corporation and Maria A. Ressa are hereby ACQUITTED in Criminal Case No. R-PSG-18-02983-CR for violation of Section 255 of the 1997 National Internal Revenue Code, as amended, on the ground that they did not commit the offense charged in the Information. Meanwhile, the civil aspect of the case is DISMISSED.”
The court's ruling emphasized that Rappler Holdings Corporation did not act as a securities dealer when issuing Philippine Depositary Receipts (PDRs) to North Base Media (NBM). It clarified that these PDR transactions were in line with RHC's purpose as a holding company, primarily intended to raise capital for its subsidiary rather than for profit. As such, the court determined that RHC was not liable to pay Value Added Tax (VAT) on these transactions under Section 105 of the Tax Code.
The grounds for acquittal in this case closely mirrored the earlier decision by the Court of Tax Appeals (CTA) in January, creating a legal precedent. With this latest verdict, the prosecution is unable to appeal the criminal aspect of the case due to the double jeopardy rule, as protected by Section 21 of the Constitution, which prevents a person from being tried twice for the same offense.
This court victory comes after years of legal battles and hardships for Rappler and Maria Ressa, who had faced relentless online attacks, unjust arrests, detentions, and red-tagging. Rappler released a statement celebrating the victory, stating, “This is a victory not just for Rappler but for everyone who has kept the faith that a free and responsible press empowers communities and strengthens democracy.”
The acquittal in this case follows the earlier CTA decision in January 2023, which cleared Maria Ressa and RHC of four tax-related charges, stating that the Bureau of Internal Revenue had "no factual or legal basis" for these complaints. With the dismissal of this last tax case, only two active cases remain against Rappler and its CEO: an appeal on their cyber libel conviction pending before the Supreme Court and an appeal regarding the closure order issued against Rappler pending at the Court of Appeals.
The case decided by the Pasig court revolved around the alleged violation of Section 255 of the National Internal Revenue Code, related to Rappler's second-quarter value-added tax (VAT) return for the taxable year 2015. This case stemmed from RHC's issuance of Philippine Depositary Receipts (PDRs) to NBM Rappler and Omidyar Network Fund. PDRs grant their holders certain rights but do not confer ownership of the underlying shares.
The prosecution had argued that RHC was involved in the issuance and sale of securities, making it liable for VAT, but the defense contended that the PDR transaction was solely intended to raise capital and did not involve the sale of securities.
Sep 12, 2023
