The Department of Justice (DoJ) has filed cases before the Court of Tax Appeals (CTA) against Rappler Holdings Corp. (RHC) and journalist Maria Ressa.
Ressa is listed as the chief executive officer of RHC.
According to the CTA’s website, a case was filed on November 26 for alleged violation of Section 255 of the National Internal Revenue Code (NIRC) of 1997 as amended.
Two other cases were filed on November 28 also for alleged violation of Section 255 of the NIRC of 1997 as amended.
Also on November 28, a case was filed against RHC/Maria Ressa for alleged violation of Section 254 of the NIRC of 1997 as amended.
Earlier, in a resolution dated October 20 that stemmed from a complaint filed by the Bureau of Internal Revenue, state prosecutors found basis to file cases against RHC and Ressa.
“It is undisputed that respondent RHC purchased RI (Rappler Inc.) common shares at P1.00 per share and used them as underlying security for the PDRs (Philippine Depositary Receipts) that it sold at a mark-up price,” state prosecutors said in part in the resolution.
“Verily, the foregoing PDR transactions triggered taxable events. For failing to recognize the profit it derived totaling P162,412,783.67, [which represents the difference between the aggregate book value of the underlying stocks [P19,245,975.00] and the total consideration paid for the PDRs [P181,658,758.67], respondent RHC resultantly committed substantial under-declaration in the pertinent tax returns, tantamount to ‘Willful Attempt to Evade and Defeat Tax’ and ‘Willful Failure to Supply Correct and Accurate Information’… “
The state prosecutors recommended the filing of five informations for four counts of alleged “Willful Failure to Supply Correct and Accurate Information in Tax Returns” under Section 255 of the Tax Code, as amended, “relative to the income tax return and three value-added tax returns (2nd, 3rd and 4th quarters) for tax year 2015” and for one count of alleged “Willful Attempt to Evade and Defeat Tax” under Section 254 of the Tax Code, as amended, against RHC and Ressa.
Section 254 of the NIRC punishes “Attempt to Evade or Defeat Tax” with a fine not less than P30,000 but not over P100,000 with imprisonment of not less than two years, but not over four years.
Section 255 punishes “Failure to File Return, Supply Correct and Accurate Information, Pay Tax Withhold and Remit Tax and Refund Excess Taxes Withheld as Compensation” with a fine of not less than P10,000 and imprisonment of not less than a year, but not over 10 years.
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