Pacquiao Pays BIR P32M, But Still Owes Gov’t Over P2B

Boxing champ and Sarangani Representative Manny Pacquiao. Photo credit: HBO.
Boxing champ and Sarangani Representative Manny Pacquiao. Photo credit: HBO.
Boxing champ and Sarangani Representative Manny Pacquiao.
Photo credit: HBO.

Bureau of Internal Revenue (BIR) Commissioner Kim Henares revealed that boxing champ and Sarangani Rep. Manny Pacquiao has already paid P32 million but still owes the agency over P2 billion more in tax liabilities.

With a gag order issued by the court against both parties, Henares could not elaborate on the matter but said the boxing champ’s camp only managed to pay a small amount out of the total liabilities.

The P32 million that Pacquiao paid only covered the charges for the tax liabilities’ Value Added Tax (VAT) plus surcharges, she added.

Pacquiao owes the BIR P2.2 billion as of December 31, 2012 from tax assessments made for the period of 2008 and 2009 alone.

Despite the payment, Henares maintained that the BIR will still go after the boxing champ to recover the rest of the money he owes the government.

Henares said the BIR’s assessment on Pacquiao’s tax liabilities is already final. This means the boxing champ must pay the total amount indicated in his bill.

On the other hand, Pacquiao’s camp is still protesting the amount before the Court of Tax Appeals (CTA).

Both Pacquiao and his wife, Jinkee, are questioning the BIR’s calculations and assessments, insisting that the boxing champ does not owe the government a P2.2-billion tax liability.

Tax Liabilities Paid in the US

Before the gag order was given to all parties concerned, Pacquiao’s camp claimed that the boxing champ already paid his tax liabilities in the United States.

With the Philippines having an agreement with the US against double taxation, whatever amount paid in the US should already be deducted from tax liabilities in the PH.

The tax payments were not personally handled by Pacquiao but he claimed that necessary proofs have already been sent to the BIR regarding the matter.

On its part, the BIR insisted that Pacquiao repeatedly refused to provide them with a copy of the tax payments he made in the US. Because of this, it said, those could not be applied in his tax liabilities in the Philippines.

Pacquiao also claimed that the BIR wanted him to submit the original documents from the Internal Revenue Service (IRS), the tax body of the US.

However, the agency reportedly holds the original while taxpayers are merely provided with copies.   This led him to believe that BIR is just giving him a hard time for whatever reason.

That statement was refuted by Henares, saying that the agency has not received any such document from Pacquiao’s camp.

The BIR said Pacquiao had lost the right to appeal the warrant imposed against his bank accounts,  insisting that the couple could no longer appeal it in court because the decision was served on May 20, 2013.

The couple only had 30 days from that date to appeal the ruling.

BIR lawyer Felix Raul Velasco said that when the Pacquiaos failed to do so, the BIR issued the warrant of garnishment against the couple’s bank accounts.

To date, only two of Pacquiao’s bank accounts have been frozen, with the money only amounting to a few millions and not enough to cover his supposed tax liabilities.

However, the boxing champ was also able to get a temporary restraining order to prevent the BIR from taking the money from these bank accounts.

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