DOJ probe into tax evasion case vs Rappler starts Tuesday

MANILA, Philippines — Executives of online news agency Rappler are set to appear at the Department of Justice on Tuesday morning to attend the preliminary investigation into a multimillion-peso tax evasion case against them.

Assistant State Prosecutor Zenamar Machacon-Caparros sent summonses to Rappler president Maria Ressa and treasurer James Bitanga to appear before the panel of prosecutors to answer allegations in the P133-million tax evasion case.

The Bureau of Internal Revenue has accused Rappler Holdings Corp. of violating the National Internal Revenue Code of a willful attempt to evade or defeat tax and of a deliberate failure to supply correct and accurate information in its annual income tax return and value-added tax returns for 2015.

The BIR said that its probe showed that Rappler has a total tax liability of P133,841,305.75 tax for 2015.

A second preliminary investigation is set on May 7, which will also be held at the DOJ office in Manila.

The multimillion-peso tax evasion case is just one of the court battles Rappler is facing. The Securities and Exchange Commission earlier this year cancelled the media agency's business registration after it found out that company violated constitutional restrictions on ownership and control of mass media entities.

Rappler has questioned the SEC ruling before the Court of Appeals.

Malacañang, citing the SEC ruling, has denied Rappler access to the compound and to President Rodrigo Duterte's speeches and events.

The agency’s editorial board is also facing raps, filed by the National Bureau of Investigation, over a 2012 investigative report that allegedly violated the Cybercrime Prevention Act .