Manny Pacquiao to take tax battle to court
Philippine officials stand firm on alleged unpaid dues and threaten to seize assets, but champion boxer's lawyer lines up legal challenge
Philippines authorities stood firm in the face of insistence from Manny Pacquiao and his promoter that the boxer does not owe unpaid taxes, while the national hero vowed to take the fight to court.
Pacquiao has been told to pay a tax bill of 2.2 billion pesos (HK$390 million) or risk having assets seized.
Bob Arum, the promoter of Pacquiao's fights, insisted allegations of unpaid taxes from US bouts in 2008 and 2009 are false, and that his Top Rank agency made certain the proper money was paid to US authorities just to avoid such problems.
This is no longer within the jurisdiction of the BIR [Bureau of Internal Revenue]. The case is now with the court of tax appeals
But tax commissioner Kim Henares, who has spearheaded a high-profile campaign against tax evasion in the Philippines, stood firm on Wednesday, saying Pacquiao had failed for two years to provide documents proving his US payments.
"2.2 billion is what Pacquiao owes now because of surcharges and interest," Henares said. "What we want is evidence that he actually paid the tax [to the US]."
But she said that even if he had paid the 30 per cent tax rate in the United States, there would still be extra charges due in the Philippines because it had a higher rate of 32 per cent.
She said the tax office had already placed a lien on a Pacquiao property worth millions of dollars in one of Manila's most exclusive gated communities.
