Arum defends Koncz over Pacquiao tax case

By Bev Llorente, ABS-CBN North America News Bureau

Dec. 4, 2013

LAS VEGAS, NV — Top Rank’s top gun Bob Arum defended Manny Pacquiao’s financial adviser, Canadian Michael Koncz, in connection with the boxer’s ongoing case with the Bureau of Internal Revenue (BIR).

“Michael Koncz has nothing whatever to do with this situation. The problem is with the politics being played in the Philippines by this head of the BIR who is part of the administration that Manny is not friendly with. Your Vice President [Jejomar Binay] has made that clear and that’s how politics is played and they picked on the wrong person,” claimed Arum.

Arum confirmed that Koncz owns a company called EDK, which handles the boxer’s bills, but stressed that everything is under Pacquiao’s direction.

“Michael Koncz has a company that he established, EDK, where that company pays a lot of Manny’s bills in the United States. So we, from time to time, make payments to that company at Manny’s instructions,” explained Arum.

“So if we have to send Manny $1 million, Manny may say send us $950,000, send $50,000 to EDK, so Michael can pay the bills. That’s what we do but only under the instruction of Manny because Manny is in the Philippines and he can’t come over here and pay his own bills,” he said.

Meanwhile, Arum said that if Pacquiao didn’t pay his taxes and declared all of his earnings in the United States for the years 2008 and 2009, the Filipino wouldn’t have been able to fight in the US because the IRS would have had their eyes on the boxer.

From 2010 to 2012, all of Pacquiao’s fights took place in the US, which were all sold out.

“To the BIR, forget that Manny Pacquiao is a national hero, forget that he may oppose to the administration currently in the Philippines. Just treat him like an ordinary citizen. We have given you the proof, the absolute proof, that the money Manny claims was paid to the IRS,” said Arum.

Arum added that it is his absolute obligation as a promoter to pay a guaranteed purse to his boxer.

“They tried to make it like Manny never paid in the United States the money. Well, Manny’s promoter who pays Manny has, under the law of the United States, the absolute and withhold and pay over to the IRS 30 percent of whatever we pay to Manny,” he said.

Although Pacquiao’s next opponent has not yet been announced, Arum confirmed that Pacquiao will be fighting in Las Vegas on April 12, 2014.

2 Comments on this post.

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  • brianna
    4 December 2013 at 7:00 pm - Reply

    the Philippine congress should not deal with the tax problem of MP, instead let the BIR take care of it. The Philippine Government has to pass laws that applies to the current situation of the country and prosecute the the people who are involved and was proven guilty of graft and corruption. Its about time to clean the image of the country!Nakakasawa na lang na puro problema ang nakikita sa mga news at wala ng nagbago.

  • Noel Garcia
    5 December 2013 at 12:35 pm - Reply

    Politics has nothing to do with Pacquioas Tax Problem. It’s Pacquioa who tried to evade the BIR for 2 years he was given a lot of notices about his Tax Liabilities bu play Deadma until it reaches 2.2 Billions. If only you can read the article posted ( Trapos) in the inquirer by Ms Solita Monsod dated 4 Dec 13, you will understand what the real story about the Tax problem of Pacquioa.