ANG SIMPLENG PANAWAGAN NI REP. MANNY PACQUIAO
Sa larangan ng boksing, nakaukit na kaniyang pangalan bilang kaisa-isang naging world champion sa walong magkakaibang debisyon. Pagdating naman sa pagmamalasakit at pagtulong sa kapwa, numero uno rin ang tinaguriang Pambansang Kamao at People’s Champ ng Pilipinas.
ALSO: US taxman after Pacquiao Tax problems come amid fears he’s going broke
The taxman has Pacman against the ropes amid fears that he might be going broke, given his lavish lifestyle and propensity to dole out cash to friends, political supporters, hangers-on and even random strangers. Sarangani Rep. Manny Pacquiao was 14th on the list of highest-paid athletes last year, with estimated earnings of $34 million, according to Forbes magazine.READ MORE....
ALSO: ‘$54-M discrepancy’ in Pacquiao PPV income
With his fan-friendly style and unparalleled ring accomplishments, Manny Pacquiao has established himself as a true pay-per-view (PPV) star, arguably next only to the trash-talking Floyd Mayweather Jr.
But how much did Pacquiao, boxing’s only titlist in eight different weight divisions, actually earn from enormous PPV numbers, especially those generated in megabouts with the likes of Oscar de la Hoya and Ricky Hatton? Pacquiao himself wanted to know as early as 2011 when he granted his accountants then “unrestricted access to all documents and individuals within” his company, MP Promotions USA Inc. and Bob Arum’s Top Rank. A report subsequently prepared by VisionQwest Accountancy Group indicated supposed discrepancies between PPV proceeds remitted to Top Rank by HBO, which televised Pacquiao’s fights, and those reported in Top Rank’s financial statements.
VIDEO: MANNY NEAR THE END OF THE VIDEO: 'BANGON KANG MULI KAIBIGAN'...
BANGON KAIBIGAN I Kapuso All Stars I OFFICIAL music video
Published on Dec 14, 2013 BANGON KAIBIGAN Composer & Producer: Janno Gibbs Co-Producers: Kedy Sanchez & Alwyn Cruz Musical Arranger: Paulo Zarate Director: Vincent Gealogo Executive In Charge of Production: Lilybeth G. Rasonable GMA Entertainment TV GMA Records GMA Post Production GMA News & Public Affairs GMA Program Support Department GMA Corporate Communications GMA Artist Center
MANILA, DECEMBER 30, 2013 (GMA NEWS TV) Masasabing isa nang institusyon si Sarangani Rep. Manny Pacquiao. Sa larangan ng boksing, nakaukit na kaniyang pangalan bilang kaisa-isang naging world champion sa walong magkakaibang debisyon. Pagdating naman sa pagmamalasakit at pagtulong sa kapwa, numero uno rin ang tinaguriang Pambansang Kamao at People’s Champ ng Pilipinas.
Kamakailan, nagbigay muli ng karangalan sa bansa si Manny nang talunin niya si Brandon Rios sa kanilang laban noong Nobyembre 24 sa Macau. Ngayon, ibang klaseng laban naman ang isinusulong ni Manny -- ang pagbibigay pag-asa sa mga nasalanta ng bagyong Yolanda.
Kabilang si Manny sa mga Kapuso stars na nagbigay ng kanilang oras at talento para sa music video ng “Bangon Kaibigan”, isang awiting inilikha ni Janno Gibbs para sa Yolanda survivors.
“Isang karangalan ko na bahagi ako doon sa kanta na alay para sa mga nasalanta ng typhoon sa Visayas area at masaya ako,” wika ng Saranggani representative.
Ayon kay Manny, naiintindihan niya ang nadarama ng mga kababayan natin sa Eastern Visayas, kaya handa siyang magbigay ng tulong sa abot ng kanyang makakaya.
Aniya, “Doon sa mga binagyo, ako ang makapagsasabi na yung sitwasyon nila…naaawa ako sa sitwasyon nila. Siyempre, nawalan sila ng mga bahay. Feel na feel ko yung nararamdaman nila kasi diyan ako nanggaling sa mga pinakamahirap na pamilya.”
Maaari rin daw tayong tumulong kahit sa ating munting paraan.
Magkaisa tayong lahat. ‘Yung piso o limang piso na ihuhulog ng mga kababayan natin, kung magkakaisa ‘yan, malaking bagay iyan,” panawagan niya.
Pagpapatuloy ng fighting congressman, “Hindi lang pagkain ang kailangan nila dahil unang una, nawalan sila ng bahay. This time around, suportahan natin pati ang gobyerno natin. Actually, nagtra-trabaho sila para bigyan ng pabahay ang ating mga kababayan doon. Tulungan din nating mga mamamayan.”
Maaari nang i-download ang “Bangon Kaibigan” sa iTunes at OPM2GO. Ang mga pinirmahang “Tibay ng Pusong Pilipino” shirts na ginamit sa “Bangon Kaibigan” music video ay kasalukuyang pinapa-auction. Lahat ng makakalap na pondo ay mapupunta sa Yolanda relief efforts ng GMA Kapuso Foundation. -- Samantha Portillo/Bochic Estrada, GMANetwork.com
FROM THE INQUIRER
US taxman after Pacquiao Tax problems come amid fears he’s going brokeBy Francis T.J. Ochoa, Christian V. Esguerra Philippine Daily Inquirer 1:15 am | Friday, December 27th, 2013
The taxman has Pacman against the ropes amid fears that he might be going broke, given his lavish lifestyle and propensity to dole out cash to friends, political supporters, hangers-on and even random strangers.
Sarangani Rep. Manny Pacquiao was 14th on the list of highest-paid athletes last year, with estimated earnings of $34 million, according to Forbes magazine.
He was considered the wealthiest member of the House of Representatives, based on his statement of assets, liabilities and net worth (SALN). He reported a net worth of P1.77 billion in 2012, up from P1.13 billion in 2010.
But Pacquiao said he had to borrow more than P1 million so he could deliver aid to victims of Supertyphoon “Yolanda” in Leyte and Samar provinces late last month.
In the United States, the Internal Revenue Service (IRS) has issued a levy on Pacquiao’s US bank accounts in an effort to recoup more than $18 million in alleged tax liabilities from 2006 to 2010, documents obtained by the Inquirer showed.
US notice of tax lien
The IRS levy came after Pacquiao was issued a separate “notice of federal tax lien” in the amount of $18,313,669. The notice was issued by the Glendale office of the IRS in Los Angeles, California, on Nov. 22.
Pacquiao did not answer phone calls and text messages when reached by Inquirer Mindanao on Thursday.
Pacquiao’s former accountant, Michael Joseph Cabuhat, said the levy could jeopardize his planned bout in Las Vegas in April because the IRS could block ticket sales and similar activities related to the prize fight.
“Any compensation under your name will be taken out because there is an order of levy. So if the fight is next year, it will earn. The IRS may levy the earnings right away,” said Cabuhat, chief financial officer of VisionQwest, a California-based accountancy firm hired by Pacquiao in 2010 but was eventually fired the following year.
“They have to make an arrangement to settle this or at least take care of it through an installment agreement or negotiation or compromise. Otherwise, the April fight is in danger,” Cabuhat said.
But Pacquiao’s camp, through his Philippine lawyer Tranquil Salvador, on Wednesday insisted that the “IRS liens on his properties and bank accounts” were “vacated” (lifted) late last week.
“We have been told that the IRS liens on his properties and bank accounts were vacated on Dec. 20,” Pacquiao’s “team” told the Inquirer in an e-mail sent through Salvador.
“It means he has satisfied the requirements of the US law,” Salvador added in a text message.
On its official website, the IRS differentiated between a “lien” and a “levy.”
“A lien is not a levy. A lien secures the government’s interest in your property when you don’t pay your tax debt. A levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in,” the IRS said.
The IRS described a federal tax lien as “the government’s legal claim against your property when you neglect or fail to pay a tax debt.”
“The lien protects the government’s interest in all your property, including real estate, personal property and financial assets,” it said.
Pacquiao’s camp said stories about his alleged tax problems in the United States were full of errors.
“Representative Pacquiao’s US attorneys have previously commented that the recent stories regarding his problems with the IRS are seriously flawed and tainted with errors, and that he remains committed to working with the IRS to resolve any outstanding issues,” Pacquiao’s camp said in the e-mail.
Unless the alleged tax liabilities are settled, Cabuhat said the IRS could “barricade” the April clash, meaning it could step in and claim proceeds from the fight. He claimed that the IRS “almost did it” for another Pacquiao bout before VisionQwest came in.
Bank issued IRS levy
In a letter dated Nov. 27, one bank informed “Emmanuel D. Pacquiao,” one of boxing’s biggest draws, that it had been “served with an IRS levy in the amount of $18,564,663.6 naming you as debtor.”
As a result, the bank said it was putting the balance of his two accounts on hold for “21 days,” warning that it would be sent to the IRS unless the levy was lifted by next month.
“Unless we receive a Release of Levy from the IRS before 1/10/2014, we are required to hold these funds for 21 days, after which they will be remitted to the IRS,” Pacquiao, boxing’s only eight-division titleholder, was told.
As of Nov. 27, each of the bank accounts contained a balance of less than $100.
17 accounts, US properties
During the brief period that VisionQwest worked for Pacquiao, Cabuhat said the boxer was known to have 17 accounts in four banks.
Pacquiao is said to own properties in the United States—a five-bedroom house on Plymouth Boulevard in Los Angeles, a 10-unit apartment and another house in Orange County.
Cabuhat, whose company was dumped by Pacquiao in 2011, said the best option was for the boxer to settle with the IRS.
“If I [were] Manny Pacquiao and I am charged $18.3 million, I [would] pay it right now or make an installment agreement rather than ignore it because the IRS could come back and seek higher tax liabilities,” he said.
The IRS said “paying your tax debt—in full—is the best way to get rid of a federal tax lien.” It “releases your lien within 30 days after you have paid your tax debt.”
The writing was on the wall as early as 2010, the year VisionQwest was hired by Team Pacquiao to clean up his financial mess.
Michael Lodge, the firm’s president and CEO, said VisionQwest was tasked with “represent[ing] Manny Pacquiao and MP Promotions Inc. on a tax audit for 2006 and 2007, which then led to 2008 and 2009.”
Cabuhat said the agreement included a review of Pacquiao’s bout and endorsement contracts.
The company was also tapped “to organize his financial data and create an automated financial system to record everything.”
On its website, VisionQwest Accountancy Group is described as a firm that provides “full international tax services as it relates to entertainment and sports clients [who] need representation in the United States on special tax issues.”
But what was supposed to be a three-year engagement was cut short after VisionQwest uncovered alleged irregularities in Pacquiao’s finances and asked that they be fixed soon.
Asked why Pacquiao fired VisionQwest, his camp said in the e-mail: “Representative Pacquiao has the right to engage professional advisers of his own choosing and he can terminate their services if he no longer wishes to continue such professional relationship for whatever reason.
“It is public knowledge that Representative Pacquiao and VisionQwest parted ways on less than amicable terms and the manner by which VisionQwest handled the story publicly through media only reinforces the correctness of Representative Pacquiao’s decision to terminate their services in 2011.”
In a June 30, 2011, letter addressed to Pacquiao, Lodge raised a number of issues, warning in particular about Michael Koncz’s role as the boxer’s adviser.
“After a careful review of tax documents provided to us from Michael Koncz for 2006, 2007 and other years I feel that the documents that were in handwritten form, e-mails and written notes have been clearly misstated on revenue and expenses of Manny Pacquiao and MP Promotions USA Inc.,” Lodge wrote.
In the e-mail, Pacquiao’s camp said the issue raised against Koncz was among the “recycled issues that have been discussed by VisionQwest through the media over the past couple of years in an effort to discredit [promoter] Bob Arum and Mike Koncz.”
“To date, Representative Pacquiao continues to trust his team of advisers,” his camp said.
Lodge alleged that Koncz misstated the tax returns and that there was no reliability in the tax data provided to the IRS.
“Mr. Koncz has now placed our client in a possible tax liability based on his false documentation and that now VisionQwest Accountancy Group must justify through our own gathered and documented records a new tax position to the [IRS],” he said.
Lodge went as far as advising Pacquiao to get rid of Koncz. The Inquirer tried but failed to contact Koncz.
“I would request that Mr. Koncz be removed from his role immediately and that no further business that affects Manny Pacquiao or MP Promotions USA Inc. be done by Mike Koncz,” he said. “This is hereby stated so that our client may be protected from tax or legal liabilities.”
Pacquiao later terminated the services of VisionQwest, which then sued its erstwhile client for $649,017 in purported loan. Cabuhat said the case was settled in 2012, with Pacquiao paying an undisclosed amount.
In a 2011 report on The Ring Magazine’s website, Koncz was quoted as vowing that Pacquiao’s camp would “vigorously defend [itself against] these false allegations contained in the lawsuit.”
Koncz alleged that VisionQwest “has breached a number of confidentiality laws contained within their own contract and made a number of slanderous statements against Manny Pacquiao and myself alleging that I’m misappropriating money and stealing money, which is totally bulls**t.”
He said VisionQwest “spent more time focusing on trying to handle Manny’s endorsements and then subsequently trying to be fight promoters by putting together the fights, that they lost their focus and never worked on our taxes.”
“They didn’t inform Manny [about] the true standing of our taxes, which subsequently has been done by our new accounting firm.”
In the “Notice of Federal Tax Lien,” the IRS listed Pacquiao’s alleged tax liabilities over five years: $1,160,324 (2006), $2,035,992 (2007), $2,862,437 (2008), $8,022,916 (2009), and $4,231,999 (2010).
Pacquiao earlier denied owing the IRS such amounts, insisting that the allegation was “no doubt a demolition job against me.”
$25M in ’09, excluding PPV
The year 2009 was a banner year for Pacquiao in terms of earnings.
He fought twice—a second round knock out of Briton Ricky Hatton and a 12th round TKO of Puerto Rican star Miguel Cotto—and pocketed a combined $25 million, excluding pay-per-view (PPV) shares, based on his reported purses.
$40M earnings in 2008
The year before, his combined purses in three fights, as reported in media, were estimated at nearly $20 million. His bout with Mexican-American superstar Oscar De La Hoya alone earned him a reported purse of $11 million and a PPV share worth $20 million.
Back home, the Bureau of Internal Revenue (BIR) is also going after Pacquiao for his alleged failure to pay taxes for his fight earnings in the United States in 2008 and 2009. He was assessed a tax liability of P2.2 billion, including penalties.
Gag order, meeting with Kim
A court has issued a gag order to the BIR and Pacquiao regarding the tax issue, but two independent sources told the Inquirer that the boxer had sat down with Revenue Commissioner Kim Henares to discuss his problems.
One tax expert told the Inquirer that Pacquiao’s assessed liability with the BIR was already final, although the boxer could still seek relief through a compromise.
The BIR could supposedly agree to a compromise based on doubtful validity, but Pacquiao would have to provide supporting documents to prove that he had been wrongly assessed.
And the supposed lack of documents has proven to be at the root of Pacquiao’s current tax mess.
The BIR earlier issued a warrant of “distraint” to force Pacquiao to pay up, a move the congressman has questioned in the Court of Tax Appeals.
“There are many crooks in the government whose bank accounts and properties were not subjected to garnishment,” he complained in a previous press conference.
“I had absorbed many blows just to earn money and give pride to the nation, but this is what happened.” With a report from Aquiles Zonio, Inquirer Mindanao
‘$54-M discrepancy’ in Pacquiao PPV incomeBy Christian V. Esguerra, Francis T.J. Ochoa Philippine Daily Inquirer 1:50 am | Sunday, December 29th, 2013
With his fan-friendly style and unparalleled ring accomplishments, Manny Pacquiao has established himself as a true pay-per-view (PPV) star, arguably next only to the trash-talking Floyd Mayweather Jr.
But how much did Pacquiao, boxing’s only titlist in eight different weight divisions, actually earn from enormous PPV numbers, especially those generated in megabouts with the likes of Oscar de la Hoya and Ricky Hatton?
Pacquiao himself wanted to know as early as 2011 when he granted his accountants then “unrestricted access to all documents and individuals within” his company, MP Promotions USA Inc. and Bob Arum’s Top Rank.
A report subsequently prepared by VisionQwest Accountancy Group indicated supposed discrepancies between PPV proceeds remitted to Top Rank by HBO, which televised Pacquiao’s fights, and those reported in Top Rank’s financial statements.
Michael Joseph Cabuhat, VisionQwest executive vice president, estimated the alleged discrepancies at $54 million. The amount covered PPV figures in eight Pacquiao bouts in the United States.
Through Pacquiao’s lawyer Tranquil Salvador, the Inquirer asked the boxing superstar if he was aware of how much in PPV earnings he was supposed to get and was actually getting, from Top Rank. Pacquiao was also asked about the alleged $54-million discrepancy cited by his former accountants.
Salvador came back with an e-mail from Pacquiao’s “team,” saying the matters were “recycled issues that have been discussed by VisionQwest through the media over the past couple of years in an effort to discredit Bob Arum and Mike Koncz.”
“To date, Representative Pacquiao continues to trust his team of advisers,” the boxer’s camp added in the e-mail.
PPV earnings a tax issue
In an interview with the Inquirer, Cabuhat said that Pacquiao’s actual PPV earnings—if not properly declared—would have an impact on his current tax issues with the United States’ Internal Revenue Service (IRS).
Because it could be that Pacquiao owes the US government much more than the estimated $18-million tax liability the IRS is now trying to collect from him, according to Cabuhat, whose firm examined the boxer’s finances from 2010 to 2011.
“Unfortunately, I had already declared his income tax and I wasn’t able to include that [PPV earnings] as part of their income,” he said.
In the Philippines, the Bureau of Internal Revenue (BIR) is demanding around P2.2 billion in alleged back taxes from Pacquiao, and the purportedly undeclared PPV earnings could also affect the amount being collected from him here, according to a government tax expert.
The Inquirer source said the BIR could wait to see if Pacquiao would collect the PPV earnings from Top Rank.
“If he doesn’t complain [that he did not receive PPV shares], the BIR and IRS will still count that as his income,” the source said.
Funds owed to Pacquiao
Pacquiao signed a second contract with VisionQwest on July 18, 2011, supposedly because the boxer wanted to know how much he was getting in PPV earnings.
The contract gave VisionQwest “full access to documents prepared by Top Rank and to challenge any misstated financial statements; auditing of purse, perks, profit sharing, not limited to pay-per-view collection and to enforce contractual obligations and collect on funds owed to Emmanuel D. Pacquiao and/or MP Promotions USA Inc.”
Based on documents obtained by the Inquirer, Pacquiao’s December 2008 megabout with De la Hoya gave HBO a net profit of $31,996,576.
The amount HBO paid to Top Rank was $31,970,925, but the figure listed in Top Rank’s financial statement supposedly was only $5,468,174. The amounts represented a discrepancy (“out of balance”) of $26,502,751.
Cabuhat said the $5.47-million figure reported by Top Rank “reflected” the amount from which Pacquiao’s PPV earnings were computed.
After VisionQwest learned about the alleged PPV discrepancies, Cabuhat said his company wrote Pacquiao, telling him about the need to amend his 2009 and 2010 income tax returns.
But he claimed Koncz, Pacquiao’s business adviser, told him his firm “will no longer handle that.”
Chief News Editor: Sol Jose Vanzi
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