Pacquiao to fight tax evasion allegations against him

By Bev Llorente, ABS-CBN North America Bureau

Nov. 27, 2013

LAS VEGAS – $54 million — this is how much Philippine authorities said the Manny Pacquiao, the Filipino boxing champ, owes the Philippine government in unpaid taxes in 2008 and 2009, when he was at the peak of his career and one of the world’s highest paid athletes.

Just days after his heroic return to his home country following his win against Brandon Rios in Macau, China, Pacquiao showed a copy of his U.S. non-resident alien income tax return and documents sent by his accountants from the U.S., reportedly proving he paid his taxes.

He admitted they were only copies of the original. “That’s why it includes a letter from Bob Arum (his promoter/Top Rank CEO), so they will believe that the documents are authentic,” Pacquiao pointed out.

But tax authorities in the Philippines said if Pacquiao fails to pay what he reportedly owes, they could end up seizing his properties.

“Normally, we give them time to come up with the money before we start the next step, which is auctioning and bidding it out,” Kim Jacinto-Henares, Philippine BIR commissioner said.

Philippine tax officials said they’re leaving it up to the court to make a decision on Pacquiao’s case, even if the boxing star manages to provide them with the necessary documents from the IRS.

The Pacman said he’s ready to defend himself and his hard-earned wealth.

In Las Vegas, Nevada, Nadia Jurani, a certified public accountant and attorney-at-law said Pacquiao’s tax troubles should have been taken care of his by accountant and legal counsel in the U.S.

“Whoever is helping him is not doing a good job,” she said.

Before the Pacman’s latest bout in Macau, his previous winnings and earnings from boxing and other product endorsements took place in the U.S. Therefore, Jurani said, taxes were paid in America, as the U.S. government immediately withholds 35% to 40% of his net income for each transaction.

Jurani said Pacquiao should go back to his accountant and get the actual copy of his transcript.

Only the taxpayer himself can secure the release of his tax forms from the IRS, the 1040NR form, which is the tax form for non-resident aliens in the U.S.

“In the United States, if he paid taxes, he should be able to produce that tax return form 1040NR to take to the Philippines, to show that he paid taxes. The problem now is that the BIR in the Philippines doesn’t accept the transcript from the IRS, because the transcript doesn’t look like the real tax return,” Jurani pointed out.

She added that Pacquiao’s accountant or lawyer could go to the IRS and get an actual copy of the tax returns that were prepared that indicated how much taxes were paid. “The taxes he paid would be credited to whatever tax he would pay in the Philippines. So he will not be charged of double taxation,” Jurani stated.

She added that in the U.S., taxpayers are given ample time to fix their tax payments so garnishments and bank levies en masse would be avoided.

Balitang America tried to get a statement from Pacquiao’s promoter, Top Rank, but its offices are closed for the rest for the rest of the week due to the Thanksgiving holiday.

With a report from Francis Canlas.

6 Comments on this post.

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  • Kikay Pang0
    27 November 2013 at 8:45 pm - Reply

    Henares is putting a lot of pressure on Pac to pay his dues. While the useless congressman is using a delaying tactics and trying to stretch his case till the next administration takes over that may grant him a pardon to his legal obligation or may consider a bribe negotiation .

  • abe
    27 November 2013 at 11:44 pm - Reply

    Simple solution for both parties, Henares (BIR)should write her counterpart IRS for a copy of tax payment or ITR from 2008,to 2012. Pacquiao should had been arrested in the US if he did not pay his taxes from his income in Boxing, shoes,cognac advertisements, sale of his house in US, etc. Pacquiao, should hire a well connected tax lawyer-accountant in PH. BIR said they are willing for a compromise (arreglo),

  • JD
    28 November 2013 at 8:28 am - Reply

    @Abe and KiKay PangO you are right in your comment. The philippines should watch what they say ?

  • JD
    28 November 2013 at 3:59 pm - Reply

    Why is it a big deal, Manny can get the copies of his taxes paper from the U.S IRS office. The philippine government should worrie about the pork scam, than worrie about Manny tax evasion allegations. Manny got a lot of money to pay his taxes in the philippines.

  • Noel Garcia
    28 November 2013 at 4:01 pm - Reply

    Paquioa cannot even draft a Bill himself but relay most to his battalion of staffs were his Pork Barrel goes and what do you expect from him to understand how to pay his taxes due to the BIR. He is using the Media and the victims of typhoon Yolanda to gather sympathy and includes her mother who doesn’t control and respect what she says in the TV. This is a classic Tongressman who violates the Law because he simply doesn’t understand how to comply what the BIR needs but instead in 2008 submitted a certification that he paid the corresponding taxes in the US and its Bob Arum who signed it. That why the BIR let him to submit a original duplicate fro the IRS but never complied for less than 2 years Paquioa thinks he can fight the BIR. Now he is showing a copy of IRS but was not submitted to BIR and it doesn’t appear that tha BIR have received it because there was no mark Received bytheBIR. Stop making drama Tongressman and your nothing but a CROOKand becoming Monster in Phil politics. Stop your media appearance and go to the Phil BIR and present you’re evidence directly to Henares and not in the Media. Henares is not stupid to question you if your telling the truth. She is honest and fighting all types of corrupt govt and private individuals who want to make fool of the BIR.I pity you Paquioa and your Advicers are driving you and making money from you because you can’t understand the LAW and what inside your mind is the Law of Boxing.

  • Noel Garcia
    28 November 2013 at 4:11 pm - Reply

    The issue of the Pork Barrel Scamms is another issue and must not be a major factor for Paquioa to evade submitting the required documents that theBIR needs. My advice to you Paquio is go to Henares and stop your media appearance and stop soliciting sympathy from the victims of Typhoon Yolanda! Stop also using GOD Words for your personal interest infront of the TV. Shame on you!