Manny Pacquiao should focus on resolving his tax case to be of REAL service to Filipinos

manny_pacquiaoIt’s a he-said-she-said situation at the moment as mainstream media focuses its “news reporting” on the basis of soundbytes and snippets of statements made by boxing champ Manny Pacquiao and the Philippines’ chief tax collector Bureau of Internal Revenue (BIR) Commissioner Kim Henares. It all started with “reports” following the boxing match between Pacquiao and Brandon Rios in Macau that Pacquiao’s bank accounts were “frozen” over a long-pending Php2.2-billion rax case. The news first broke in a Manila Bulletin report of a warrant of garnishment (WG) issued by the BIR that effectively bars Pacquiao from accessing his bank deposits among other assets…

The tax case arose from the alleged failure of Pacquiao’s accountant to report in his income tax returns (ITR) the multi-million-dollar taxes collected by the US Internal Revenue Service (IRS) from his prize winnings for the years 2008 to 2009.

Pacquiao said the assessment, which included interests and surcharges, was “arbitrary,” stressing he could not afford to pay the assessment because it was more than his net worth.

BIR lawyers said, however, that the tax debts have become “demandable, executor, and collectible” because the solon allegedly ignored to answer the final assessment notice (FAN) sent to him, which expired 30 days after receipt as provided for in the Tax Code.

Revenue officials explained that as a Filipino citizen, Pacquiao, a congressman representing Sarangani province, is required to declare in his ITR all his earnings, including those derived from abroad.

The issue seems to be generally around Pacquiao’s failure to comply to the BIR’s reporting requirements. And with the sum of money and the multiple streams that characterise his income, it could be likely that this problem arose from an administrative failure on the part of his accountants. Back in March, 2012, reports of Pacquiao’s troubles with the Philippines’ tax office had already started emerging

Bureau of Internal Revenue regional director Rozil Lozares says a complaint was filed March 1 after Pacquiao failed to submit the documents despite three notices and a subpoena.

He said Thursday that Pacquiao’s 2010 tax return contained “discrepancies” considering his many businesses and endorsements.

The trouble with Pacquiao is that he has pitched himself to the Filipino public as the “pambansang ninong” to the extent of having to borrow money while his accounts are frozen to fulfill his promise to donate relief aid to the victims of Typhoon Yolanda (Haiyan)…

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Pacquiao, the wealthiest member of the Philippine Congress, said Tuesday he borrowed over P1 million ($22,700) to purchase relief supplies before his fight Sunday with Rios in Macau and will borrow more to keep his word to typhoon victims. Pacquiao said he plans to provide aid to more than 10,000 families.

Indeed, to follow through on his awesome achievements as a boxer, and then as a Philippine politician, Pacquiao has long been busy styling himself as the Ninong ng Bayan — the “godfather of the Filipino people”. But there is a looming risk to Pacquiao’s fortunes down the path if he is to go down this slipperly slope. When the awesome income he derives from his stellar boxing career dries up, where will he get the funds to sustain that image? Observed sports writer Rafe Bartholomew back in 2012…

Pacquiao’s boxing income has helped him maintain a clean reputation through his first two years in office, because he doesn’t need to divert government funds to side businesses or accept kickbacks from illegal lottery syndicates. Beyond that, I believe the hype about Pacquiao’s desire to be an honest politician and serve his country. But there will come a time when the boxing money faucet stops pouring, and all the hundreds — if not thousands — of people who look to Manny Pacquiao for their livelihoods will pressure him to find a way to keep the train moving, to keep giving out Manny’s many prizes.

The issue is really quite simple. Pacquiao’s current role in Philippine government is as a legislator. His job as legislator is to craft laws. As such, he does not owe a single cent to his constituents out of pocket. The concept of “duty” he applies are mere mal-concoctions of a mind ill-equipped to understand the true nature of his role as a government official.

That said, Pacquiao does owe a different sort of debt to the Filipino people — via the Philippine state’s taxation system. And therien lies the irony of it all. Why borrow to give to the victims when he can simply settle his tax debacle and set his accounts straight with the BIR? That way, Filipinos get from Pacquiao what is legally due them. In doing so, he will have done his duty to the state and, in principle, be absolved of his “debt” to Yolanda’s victims. That will leave him a bit of head space to do his other duty — to craft laws in his role as a member of the Philippines’ legislative body. Remember that part of the job description?

Perhaps what Manny Pacquiao should do is take notes in the course of sorting out this imbroglio. That way he might later have enough material to employ in aid of his legislative agenda. He should see this as an opportunity to perhaps make a name for hismelf as a true legislator in, say, the field of taxation reform.

16 Replies to “Manny Pacquiao should focus on resolving his tax case to be of REAL service to Filipinos”

  1. The ironic culture in Philippines is that if you’re rich & a public icon, you’re oblige to help the poor even though you’ve already paid your taxes. And the govt wash its hands.

  2. So apparently the only thing the BIR managed to garnished was 1.1M php. Something Manny’s lawyer corroborated.

    So ano to? drama for 2016? hmmmm.XD

  3. One of my friends, a Physician Surgeon, had an expired passport.His mother died recently. The Philippine Consulate, refuses to renew his Passport; until he declares his ITR (income tax return). He had already paid taxes here in the U.S. So, he showed his, U.S. IRS returns. The Consulate people; required him to pay a huge amount, in return of renewal of his Passport.
    The BIR is now subjecting people to: EXTORTION;of their hard earned money . Those Filipinos working abroad… beware of the BIR…

    1. @ HT, anyone who is smart enough and has the money to get out of the Fail-ippines should NEVER return.
      One can not be surprised by the extortion of the Dr. mentioned above. The BIR scumbags were counting on his desire to se his loved ones, even though dead, and saw an opportunity to exploit that desire. In an age with Skype and the Internet making communication instantaneous there is absolutely no need for that Dr. to pay the extortion demand, none. It is sad that he was too emotional to see that he has gone to a better place, and it is one from which a smart doesn’t venture away from…no matter what happens.

  4. Clearly pacquaios alliance with binay cuts him no slack, but why would he procrastinate 2 years hide behind a battery of lawyers, go on a ridiculous pr offensive (the offensive being his mother – the mouth of a fishwife), and create a mini drama when all the bir needs is the official form automatically sent to every individual from us irs as proof of tax payment.
    It is standard procedure and we all do it when earning income in multiple countries, so methinks there is more to it than meets the eye, and kim henares know more than she says. She is bright enough not to make a fool of herself in such a high profile case
    bob arum – pacquaos manager – even suggested the philippine president get involved!
    pman up, pay up, shut up, and do some work congressman!!

    1. The IRS does not issue an official form as proof of tax payment to taxpayers! Tax payers kept a copy of their W-4 (Earned Income Statement) and/or IRS Form 1099 for interest and dividends earned. These are the forms that an individual tax payer used to declare his/her Gross Income on the tax-return forms IRS 1040 for the calculation of taxes owed or tax refunds. There’s NO official receipt from the IRS and the original IRS Form 1040 and Schedules are sent to the IRS or sent electronically if it’s a simple IRS 1040EZ. The BIR asking for a certified copy of the original tax returns cannot be provided by the individual tax-payer, but as an official government agency of the Philippines, the BIR can request the IRS to provide them with the “certified copy” of the original document! The focus on PacMan is a diversionary tactic of the PNoy administration to deflect attention from their ineptitude in responding to the Typhoon Huiyan calamity and the Pork Barrel scandal where more than a couple of big name politicians are allegedly involved, including P-Noy.

      1. Thank you, I was wondering why I never received this “official receipt” of taxes paid that is “standard procedure” from all the years I worked in the US. You are correct, your personal copy is your proof. If the congressman paid, he needs to show the required proof from the IRS and stop the PR fiasco. I hope the voters are paying attention.

  5. Why borrow money? What a simple question. It is a lot easier to borrow money than to follow the government red tapes and adhere to corruption. As Bob Arum has explained about U.S. taxation, Pacman doesn’t even have to submit an iota of evidence that he had paid his dues in the U.S. Common sense, had Pacman defaulted his tax payment then Pacman should have been in jail in the U.S. (when he did a promotional tour for his fight against Rios)for tax evasion. Please see Bob Arum’s comments. He’s a lawyer , he explained it better. This is just mere politics. There are real tax evader that B.I.R. wont dare to touch.

  6. If Paquiao were to ‘due his duty’ and PAY the taxman what he owes them : WHO IS THEIR RIGHT MIND WOULD BE SOOO STUPID TO THINK THAT THE FILIPINO PEOPLE WOULD GET WHAT IS OWED TO THEM?
    The author of this essay is just as ill-equipped to understand the ‘true nature’ of the Filipino POLITICIAN. The author MUST live in a delusional world that is devoid of that reality just mentioned. All that DESPITE ranting against political corruption that is RAMPANT in the Fail-ippines.
    IF Paquiao really wants to help others? He must first help himself and I would recommend becominga citizen of Switzerland, fighting for another 3 years and amassing as much money for him and his family to survive the assault of the taxman/scumbags and secure a future for his family…and THEN make as many charitable donations as he likes.
    Paquiao wants to change the political landscape ina country where they dump those types of people on airport tarmac’s and I would even venture a guess that there are plans afoot to see to it that Paquiao NEVER gets the chance to make the changes he may very well think he can make. and THAT is where he is ill-equipped to understand the nature of his current and future situations in life.Despite what anyone else may say or do, Paquiao is a decent guy who is surrounded by scumbags that will see to it that he never really elevates himself above the ‘massa’ he came from.

  7. agree ako sayo dodge.

    gago yang Pnoy at gobyerno na yan e.yung mga taong nagnanakaw na nakaupo sa gobyerno d nya asikasuhin. yung taong nananahimik na totoong tumutulong sa tao titirahin nila.
    wala na kasing PORK BARREL na paghahatian ang gobyerno kaya naghahanap nang pagkakaperahan.

    mga abnoy nga naman sa gobyerno. pagdating sa pera ang bibilis kumilos.

    yung perang donasyon galing sa ibat ibang bansa hindi na binigay sa bayan pati pera ni pacman gagalawin pa :/

    cool songs here

  8. Sobra overcharged ginawa kay Pacquiao 2.2billion within 2 yrs w/ continous interest. Si Kim Pwet Henares talaga determinado makuha pera ni Pacman pati si Aling Dionisia pinatulan. kakaltasan pati charities. sana gawin nya kay Chavit & Enrile kahit pare pareho sila balasubas sa pera mabawasan man lang ng masamang tao tulad ni Henares.

    1. @land of THIEVES

      That’s true! Pati mga charities na pinagbigyan ni Manny, naging taxable.

      Why they have to take it on honest citizens like Manny because SC has ruled against their other source—Pork Barrel, is beyond me!

  9. Trust the IRS in USA period.

    Manny cannot fight in their country the second time without paying the tax due to them on the first fight… just remember that.

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