Maria Ressa acquitted in tax evasion cases by Court of Tax Appeals

The Court of Tax Appeals (CTA) on Wednesday acquitted Nobel laureate and Rappler CEO Maria Ressa and the Rappler Holdings Corporation (RHC) of four tax evasion charges that were filed under the Duterte administration.

The CTA First Division issued the decision acquitting Ressa and RHC, according to a report by Allan Gatus on Dobol B TV.

JUST IN: @rapplerdotcom chief executive officer @mariaressa, inabsuwelto ng Court of Tax Appeals (CTA) sa apat na bilang ng kasong tax evasion. | via @allangatus pic.twitter.com/lptTN9nVIX

— DZBB Super Radyo (@dzbb) January 18, 2023

Associate Justices Catherine Manahan, Jean Marie Bacorro-Villena, and Marian Ivy Reyes-Fajardo ruled to acquit RHC and Ressa “for failure of the prosecution to prove their guilt beyond reasonable doubt.”

“No civil liability may be adjudged against the accused as the alleged unpaid tax obligations have not been factually and legally established and proven,” the decision read.

The Court also ordered the respective cash bail bonds of Ressa and RHC for the cases be canceled and released to them upon presentation of proper documents, in accordance with the usual accounting rules and regulations.

Ressa was charged with three counts of violation of Section 255 of the National Internal Revenue Code (NIRC) for incorrect and inaccurate information on income tax return for 2015, and value-added tax returns for the third and fourth quarters of 2015.

She also faced one count of violation of Section 254 of the NIRC, also known as tax evasion.

The veteran journalist had argued that the CTA has no jurisdiction over her and RHC because of a pending motion for reconsideration on indictments filed by the Department of Justice.

In 2020, Ressa was arraigned at the Pasig Regional Trial Court on charges of failing to report sales receipts from the issuance and sale of Philippine Depositary Receipts (PDRs) in the second quarter of 2015.

Prosecutors alleged a deficiency of P294,258.58. However, Rappler argued that PDRs are not taxable income.

In 2018, the Department of Justice found probable cause to charge Rappler with tax evasion in relation to a complaint filed by the Bureau of Internal Revenue (BIR).

Rappler welcomed the development in a statement, calling out the BIR for alleged politicizing under the Duterte administration. The media firm said it would have caused “far-reaching repercussions” on both the press and the capital market if the Court upheld BIR.

“Rappler will continue to dream big and explore what technology can offer. This is what also fired our vision when RHC sought to increase capital and grow the business through Philippine Depository Receipts in 2015. We believed then, as we do now, that journalism, technology, and empowered communities will be the guardrails of any democracy,” it said.

“Maria Ressa and RHC may have won today. But so did the ordinary taxpayer and businessman being unjustly harassed by the BIR,” it added.

The National Union of Journalists of the Philippines (NUJP) also showed support for Rappler after the legal victory.

“While colleagues similarly face legal challenges–from libel to made-up terrorism charges—in relation to their work, we take inspiration from this acquittal that if we stand up and hold the line, we can win,” NUJP said in a statement. 

Meanwhile, Justice Secretary Jesus Crispin Remulla said he respected the court's decision, though the prosecution may file an appeal.

“Well, [it] shows you that the rule of law is here in the country. Wala tayong magagawa. Eh ayan talaga ang desisyon. We respect it. Although I believe that the prosecution is still filing a motion for reconsideration,” Remulla said.

Asked if the decision is final, Remulla said, "Not yet... until the resolution of the motion for reconsideration as far as double jeopardy is concerned."—with Richa Noriega/KG/VBL, GMA Integrated News