REPORT: PACQUIAO OWES IRS $18 MILLION

Manny Pacquiao’s tax woes are apparently not confined to the Bureau of Internal Revenue. The IRS issue comes as Pacquiao is currently waging a separate battle with the BIR, which claimed the boxer owes the government $50 million in taxes from 2008 to 2009. This led to Pacquiao’s local bank accounts being frozen amid the fighting congressman’s claims that he had paid his taxes in the US instead, where the fights in question took place.

ALSO: Pacquiao deals with more US taxes in April

Pacquiao’s bank assets have been frozen by the Philippine government until he proves that he paid taxes in 2008-2009 in the US following his victories against Ricky Hatton and Oscar de la Hoya. A treaty between the US and PH prevents double taxation. Unless the issue is clarified though, he owes the BIR 2.2 billion pesos in back taxes as of July. Pacquiao’s fans here tend to commiserate with their idol when it comes to his tax woes. “If he hasn’t paid the taxes in the US for the bouts in question, Pacquiao will be hounded by the IRS when he returns to the US,” said Joe Jimeno, a Sacramento tax preparer.

ALSO:
Tax court resets hearing of Pacquiao petition to Jan 16

Both Pacquiao’s camp and the BIR agreed to reschedule the hearing next year. The bureau was supposed to present evidence of its allegation that the tax court has no jurisdiction to hear Pacquiao’s petition.

ALSO:
Pacquiao denies owing United States IRS $18-M in back taxes

Eight-division boxing champ and Sarangani Rep. Manny Pacquiao said reports that he has not paid $18 million in taxes to the Internal Revenue Service of the United States have been part of demolition job against him. “This is no doubt part of demolition job against me. I don’t know why there are people who want to destroy me. It’s not true I owe IRS $18 million in back taxes,” Pacquiao told the Philippin Daily Inquirer by phone. Just a few days back, he said, an article claiming that he was a green card holder came out. “It was meant to discredit me. I’m not a green card holder,” Pacquiao said. In its website, TMZ Sports claimed it has obtained official documents, showing that Pacquiao did not pay taxes to IRS from 2006 to 2010 amounting to $18,313,668.79. “How could it be? Top Rank Promotions is deducting IRS taxes automatically before giving or releasing my purse. In the US, taxes are immediately deducted from your income,” Pacquiao explained.


READ FULL MEDIA NEWS REPORT

Report: Pacquiao owes IRS $18 million



MANILA
, DECEMBER 16, 2013 (PHILSTAR) By Dino Maragay  – Manny Pacquiao’s tax woes are apparently not confined to the Bureau of Internal Revenue.

A report by entertainment website TMZ says Pacquiao owes the US Internal Revenue Service a total of $18,313,668.79 in back taxes for his fights from 2006 to 2010.

TMZ, citing official documents, included a breakdown of back taxes:

• 2006 – $1,160,324.30
• 2007 – $2,035,992.50
• 2008 – $2,862,437.11
• 2009 – $8,022,915.87
• 2010 – $4,231,999.01

From that span, Pacquiao fought a total of 11 times in the US – against Erik Morales (twice) in 2006, Jorge Solis and Marco Antonio Barrera in 2007, Juan Manuel Marquez, David Diaz and Oscar De La Hoya in 2008, Ricky Hatton and Miguel Cotto in 2009, and Joshua Clottey and Antonio Margarito in 2010.

Interesting to note is his massive showdown with Dela Hoya, wherein Pacquiao reportedly took home up to $30 million in purse. A good portion of his fights from that period also sold good on pay-per-view and live gate receipts.

The IRS issue comes as Pacquiao is currently waging a separate battle with the BIR, which claimed the boxer owes the government $50 million in taxes from 2008 to 2009. This led to Pacquiao’s local bank accounts being frozen amid the fighting congressman’s claims that he had paid his taxes in the US instead, where the fights in question took place.

Even Pacquiao’s promoter, Bob Arum, insisted that they’ve remitted to the IRS whatever amount Pacquiao owed to them for his fights in the US.

In an interview with ANC, Pacquiao's lawyer Atty. Tranquil Salvador said their camp is not aware of the IRS issue.

Pacquiao deals with more US taxes in April By Percy D. Della Philippine Daily Inquirer 10:30 pm | Sunday, December 8th, 2013



SACRAMENTO, California—Expect Manny Pacquiao to avoid fiscal landmines when he returns to fight in the United States in April of next year.

Currently locked in a tax dispute with the Bureau of Internal Revenue in Manila, Pacquiao will surely train at the Wild Card Gym of his long-time trainer Freddie Roach in Hollywood, California.

But the eight-division world champion, still a marquee name in boxing after his easy victory over Brandon Rios in Macau last month, will never fight his next opponent—either Timothy Bradley or Juan Manuel Marquez—in the Golden State.

“I am no tax attorney,” my daughter Teresa Paula, a lawyer, said at dinner last night. “But my colleagues who are tell me promoters of mega fighters like Pacquiao avoid California because of its mega-high income taxes.”

No wonder Bob Arum, Pacquiao’s promoter has never booked his cash cow in California although the state is home to huge Filipino and Mexican communities, boxing’s traditional hotbeds of support.

Instead, Arum always has the smarts to schedule the fighting congressman’s bouts in Texas, the Lone Star State and mostly in boxing’s hub, Las Vegas in the Silver State of Nevada to maximize his and his boxer’s after-fight profits.

Nevada has no personal income tax. Nevertheless, Pacquiao still pays a king’s ransom when he boxes in Vegas. That’s because as a foreign athlete, he still has to face special withholding rules from the Internal Revenue Service on income earned in the United States.

So if Pacquiao, scheduled by Arum to fight in Vegas next year makes $25 million, he could end up earning $15 million after taxes, based on calculations under a progressive tax system, says a tax expert writing for a boxing blog.

Should he fight either Bradley or Marquez in California, Pacquiao’s take, after Uncle Sam takes a big bite of his purse, will be considerably less.

A tax attorney writing in Forbes Magazine said that’s because of California’s high income tax rates for people earning $1 million and above. Besides, the state’s tax collectors will get a piece of everything related to a Pacquiao fight, including merchandise sales, pay per view shares and money earned from endorsements.

Pacquiao’s bank assets have been frozen by the Philippine government until he proves that he paid taxes in 2008-2009 in the US following his victories against Ricky Hatton and Oscar de la Hoya.

A treaty between the US and PH prevents double taxation. Unless the issue is clarified though, he owes the BIR 2.2 billion pesos in back taxes as of July.

Pacquiao’s fans here tend to commiserate with their idol when it comes to his tax woes.

“If he hasn’t paid the taxes in the US for the bouts in question, Pacquiao will be hounded by the IRS when he returns to the US,” said Joe Jimeno, a Sacramento tax preparer.

“You know the drill, pay the IRS right now or pay the piper later,” said Danny Vivar, a Baguio attorney who immigrated to California in the early ’80s.

***
Happy to hear about the engagement of veteran actress Boots Anson-Roa to lawyer Francisco “King” Rodrigo Jr.
Boots and her late husband Pete were among the entertainers who barnstormed the US and Canada in 1976 to drumbeat the government’s then fledgling Balikbayan program. I served as press officer of that delegation led by Lilia Rianzares-Andolong and included then San Juan Mayor Joseph Estrada, Gloria Diaz, Amalia Fuentes and Bert “Tawa” Marcelo, who I roomed with during the tour.

Tax court resets hearing of Pacquiao petition to Jan 16 By Tetch Torres-Tupas INQUIRER.net 11:22 am | Thursday, December 5th, 2013


http://sports.inquirer.net/files/2013/11/kim-henares-manny-pacquiao.jpg
BIR commissioner Kim Henares and Manny Pacquiao. INQUIRER AND AP FILE PHOTOS

MANILA, Philippines—The Court of Tax Appeals has rescheduled to January 16 the hearing on the petition of boxing champ Manny Pacquiao questioning the Bureau of Internal Revenue’s writ of garnishment against his assets.

Both Pacquiao’s camp and the BIR agreed to reschedule the hearing next year.

The bureau was supposed to present evidence of its allegation that the tax court has no jurisdiction to hear Pacquiao’s petition.

Pacquiao, in July filed with the tax court a petition questioning the assessment of the BIR that he has over a billion tax liability. Then, in October, the boxing champ again filed another petition assailing the writ of garnishment issued by the BIR.

“I think they are talking in the administrative level,” Court of Tax Appeals First Division Clerk of Court Margarette Guzman said.

Pacquiao denies owing United States IRS $18-M in back taxes By Aquiles Z. Zonio Inquirer Mindanao 11:40 pm | Wednesday, December 11th, 2013 43 0


http://globalnation.inquirer.net/files/2012/05/Manny-Pacquiao-Filipino-Boxer-25.jpg
Sarangani Rep. Manny Pacquiao


GENERAL SANTOS CITY, Philippines – Eight-division boxing champ and Sarangani Rep. Manny Pacquiao said reports that he has not paid $18 million in taxes to the Internal Revenue Service of the United States have been part of demolition job against him.

“This is no doubt part of demolition job against me. I don’t know why there are people who want to destroy me. It’s not true I owe IRS $18 million in back taxes,” Pacquiao told the Philippin Daily Inquirer by phone.

Just a few days back, he said, an article claiming that he was a green card holder came out.

“It was meant to discredit me. I’m not a green card holder,” Pacquiao said.

In its website, TMZ Sports claimed it has obtained official documents, showing that Pacquiao did not pay taxes to IRS from 2006 to 2010 amounting to $18,313,668.79.

“How could it be? Top Rank Promotions is deducting IRS taxes automatically before giving or releasing my purse. In the US, taxes are immediately deducted from your income,” Pacquiao explained.

The boxer-lawmaker could not say the people and the motive behind the demolition job against him.

“Even before I could climb up the ring, right inside my dressing room, IRS people were already waiting. So, how could I escape from paying my taxes?” Pacquiao said.

He said Top Rank big boss, Bob Arum, had already taken appropriate action in the US to clarify the issue.

“Bob Arum had already issued statements in the US to set the record straight. I’m confident this issue will be cleared up,” Pacquiao said.

The boxing icon said he’s taking this issue as another challenge, a test to his faith.

“When God and truth are on our side, who can put us down? I know these are all parts of the tests to gauge the strength of my faith in Him,” Pacquiao said.


Chief News Editor: Sol Jose Vanzi

© Copyright, 2013 by PHILIPPINE HEADLINE NEWS ONLINE
All rights reserved


PHILIPPINE HEADLINE NEWS ONLINE [PHNO] WEBSITE