BIZ BUZZ: PACQUIAO'S 'CRIBS' FOR SALE

January 8 -Just how deep in a financial hole is boxing champion Manny Pacquiao? Of course, we all know that the Bureau of Internal Revenue has dunned the gentleman from Saranggani for P2.2 billion in back taxes. And we all know that the US Internal Revenue Service has frozen a couple of his bank accounts in the United States with at least $18 million in them. So where is the future Boxing Hall of Famer getting the money to cover the day-to-day operations of his large entourage? Biz Buzz learned that Pacquiao has recently put on the selling block at least two of his houses in a bid to better balance his books. READ MORE BELOW...

ALSO: Will Manny Pacquiao Finish His Career in Financial Distress?

December 11 -Pacquiao lives a life that most of us can only dream of, but there's no doubt that he has worked hard to parlay two fists and a fighting spirit into worldwide fame and superstar status. Stories keep piling up about Pacquiao and potential financial distress and it would appear that where there's smoke, there may be a raging fire. Over the last couple of weeks, reports have surfaced about tax problems, both in the Philippines and in the United States, that have the fighter owing huge sums of money. According to Forbes magazine, Pacquiao's lifetime earnings surpassed the $300 million mark with his recent bout against Brandon Rios in Macau, China. Without having access to all the proper documents, though, it's really impossible to determine the exact state of Manny's finances.

ALSO: Manny Pacquiao’s IRS Problems

December 14 -After his rousing win over Brandon Rios in Macau on November 24, Pacquiao complained that he could not withdraw money to donate to the victims of Typhoon Yolanda (Haiyan) in Leyte after the BIR garnished his bank accounts. BIR Commissioner Kim Henares, however, said they were only able to garnish P1.1 million from Pacquio’s known bank accounts. A case is now pending before the Court of Tax Appeals which recently issued a gag order for both parties. His camp has also called the BIR move political harassment. Pacquiao campaigned for former Senator Manny Villar in the 2010 presidential elections which was won by President Benigno Aquino III. Pacquiao has since aligned himself with Vice President Jejomar Binay, who has expressed his intention to run in the 2016 presidential elections.


READ FULL MEDIA REPORTS:

Pacquiao’s ‘cribs’ for sale


Manny Pacquiao’s mansion in North Forbes (bought from RCBC president Lorenzo Tan, partially financed by a bank loan) is reportedly weighing heavily on him, with monthly amortization and assorted expenses costing him some P7 million a month. INQUIRER FILE PHOTO

[EARLIER REPORT ON THE FORBES PAK HOUSE: NEW KID ON THE BLOCK Boxing legend and Sarangani Rep. Manny Pacquiao will soon be moving into this house on Cambridge Street at North Forbes Park, Makati City. This early, residents on Millionaires’ Row are reportedly eager to welcome their newest neighbor. His immediate neighbors include Sen. Loren Legarda, Tonyboy Cojuangco and the Thai ambassador. RAFFY LERMA INQUIRER PHOTO - Boxing icon Manny Pacquiao will soon be moving to Millionaires’ Row, but will Mommy Dionisia bunk in with her celebrity son? Pacman, as the Sarangani congressman is known the world over, has reportedly bought a multimillion-peso property in Makati’s Forbes Park, probably the most expensive gated community in the country. The Pacquiaos’ new home on Cambridge Street, North Forbes, cost a reported P388 million and was reportedly bought from a bank president. Celebrity architect Anton Mendoza has been put in charge of renovating it. Pacquiao’s business manager Eric Pineda confirmed the boxer’s purchase of Forbes Park property, but declined to comment on the price tag. By Bayani San Diego Jr. Philippine Daily Inquirer 2:01 am | Saturday, June 11th, 2011]

MANILA, JANUARY 8, 2014, (INQUIRER) By the staff Philippine Daily Inquirer - Just how deep in a financial hole is boxing champion Manny Pacquiao?

Of course, we all know that the Bureau of Internal Revenue has dunned the gentleman from Saranggani for P2.2 billion in back taxes. And we all know that the US Internal Revenue Service has frozen a couple of his bank accounts in the United States with at least $18 million in them.

So where is the future Boxing Hall of Famer getting the money to cover the day-to-day operations of his large entourage?

Biz Buzz learned that Pacquiao has recently put on the selling block at least two of his houses in a bid to better balance his books.

One property is a 600-square-meter house and lot in Multinational Village in Parañaque, which is going for about P17 million.

Another property that was put up for sale is a 700-square-meter house and lot near Brent School in Laguna. That one, we hear, is going for about P15 million.

Given that these are houses Pacquiao actually used (as opposed to those owned just as investments), he should have no problem selling these to wealthy friends who want to own and live in what may turn out to be pieces of boxing history.

But the potential proceeds from the sale of these properties would be tiny drops in the big bucket that represents his financial challenges.

We hear that even his mansion in North Forbes (bought from RCBC president Lorenzo Tan, partially financed by a bank loan) is weighing heavily on him, with monthly amortization and assorted expenses costing him some P7 million a month.

So what else could Pacquiao plunk into the pile? Well, there’s that rose gold Patek Phillipe watch he’s always wearing.

That’s worth at least P1.5 million, we hear. Amy R. Remo with Daxim L. Lucas

FROM YAHOO SPORTS NEWS

Will Manny Pacquiao Finish His Career in Financial Distress? Yahoo Contributor Network By Paul Magno December 11, 2013 10:41 AM

COMMENTARY | Eight-division world champ and Filipino icon, Manny Pacquiao, literally, lives the life of a king.

With a small army of assistants, hangers-on, and yes men on staff, his every need is met and his every whim is a top priority.

Pacquiao lives a life that most of us can only dream of, but there's no doubt that he has worked hard to parlay two fists and a fighting spirit into worldwide fame and superstar status. If there's anyone in boxing impervious to the sport's oldest sad tale of riches to rags, it would appear to be Pacquiao.

However, stories keep piling up about Pacquiao and potential financial distress and it would appear that where there's smoke, there may be a raging fire.

Over the last couple of weeks, reports have surfaced about tax problems, both in the Philippines and in the United States, that have the fighter owing huge sums of money.

These reports have rekindled old, unsubstantiated stories claiming that through some of Pacquiao's highest-earning days as a professional fighter, politician, and multimedia darling he may actually have been surprisingly cash-poor.

This is certainly an odd turn of events, if true. According to Forbes magazine, Pacquiao's lifetime earnings surpassed the $300 million mark with his recent bout against Brandon Rios in Macau, China. It's hard to wrap your head around the concept that someone who has earned so much is now in the red.

Without having access to all the proper documents, though, it's really impossible to determine the exact state of Manny's finances.

So, before digging in and making sweeping accusations or generalized declarations, it should be made clear that nobody, without a direct and intimate knowledge of Pacquiao's finances knows the absolute truth and, as fans and media, we may never really know what's what when it comes to the Filipino buzzsaw's books.

But reports keep surfacing that paint a grim picture.

Most recently, celebrity gossip site, TMZ claims to have obtained access to some "official documents" showing that the beloved pugilist owes the IRS more than $18.3 million in back taxes for earnings from 2006 to 2010.

Could this problem be attributed to simple poor bookkeeping or neglect on the part of someone within Team Pacquiao? Could it be a symptom of a greater disease when it comes to Manny's finances?

It's hard to tell, but nothing coming from Pacquiao's inner circle has inspired much confidence in the financial well-being of the fighter.

In an ESPN.com article dated November 29, Dan Rafael questioned promoter Bob Arum about Pacquiao's alleged tax issues in the Philippines and was assured that everything was just a misunderstanding and a question of paperwork complications. The promoter also assured that Manny was similarly in good hands when it came to his U.S. earnings.

"For each of Manny's fights that occurred in the United States, including those in 2008 and 2009, Top Rank withheld 30 percent of Manny's purses and paid those monies directly to the Internal Revenue Service via electronic funds transfer," Arum told Rafael. "Top Rank has deposit confirmations for each payment. Top Rank has done the same for all U.S. endorsements it has facilitated on Manny's behalf."

But recent reports call this assurance into question.

Fighthype.com, which actually broke the story of Pacquiao's tax issues, is also reporting that a lien has been placed on one of Pacquiao's properties in Los Angeles, California.

All of this paints the picture of someone who may not be above boxing's oldest sad tale, after all. And with just a handful of fights left in him, the multi-division champ is simply too old to start building his fortune again.

Will Manny Pacquiao's inspirational rags to riches story have a sad ending?

Here's hoping that these reports are just misunderstandings and that Pacquiao and his family will be sitting pretty for quite some time. It's tragic to hear of any fighter not being able benefit from his own hard-earned money.

Paul Magno was a licensed official in the state of Michoacan, Mexico and is the author of Notes from the Boxing Underground. His work can also be found on Fox Sports and as Editor-in-Chief of The Boxing Tribune. In the past, Paul has done work for Inside Fights, The Queensberry Rules and Eastside Boxing. For breaking news, additional analysis, and assorted crazy commentary, follow him on Facebook, @TheBoxingTribune or on Twitter, @BoxingBTBC.

Sources: Yahoo Sports, TMZ, Forbes, ESPN, Fighthype

FROM HIGHBROWMAGAZINE.COM

Manny Pacquiao’s IRS Problems Posted Saturday, December 14, 2013 - 6:32 pm News & Features Edwin Espejo

From Rappler.com and our content partner New America Media:

MANILA, Philippines – Is the glass tower slowly crumbling?

A report is out that the Internal Revenue Service of the US is, after all, running after Manny Pacquiao for unpaid taxes to the tune of $18.3 million (over P770 million) covering the period 2006 to 2010.

TMZ, popular TV show in the US covering the lives and saga of Hollywood celebrities and political personalities, said it has obtained documents to prove that Pacquiao’s camp failed to settle Pacquiao’s tax obligations in the US despite lucrative purses he got from fighting as a marquee fighter and a top pay per view (PPV) attraction during the period covered by the IRS levy.

This report does not include the P2.2 billion ($50 million) that the BIR has been seeking from him for years 2009 and 2010 alone.

This is also contrary to the statement issued by Bob Arum of Top Rank, Pacquiao’s promoter, that the Filipino’s tax obligations in the US have already been paid.

Everything fine

But when reached, Mike Koncz, described by Arum as Pacquiao’s financial adviser, said everything has been taken care of.

“Everything is fine,” he briefly said before hanging the phone.

Koncz used to handle Pacquiao’s finances in the US before he was eased out following the entry of Vision Quest as the Filipino fighting congressman’s accounting firm in the US.

Vision Quest however was fired after it insisted on getting copies of the fight contracts of Pacquiao from Top Rank, including proceeds from his PPV fights.

Koncz is now back as Pacquiao’s trusted adviser.

An hour after the first call, however, Koncz called back to clarify the report that came out in TMZ.

He said the $18 million being sought by the IRS is for the deductions that the US revenue body has reportedly disallowed.

“This is now being handled by our lawyers in America. This is not something new that happened yesterday. We have been discussing this issue with the IRS during the last 3 years,” Koncz said.

Koncz did not specify which expenses they included and which were disallowed by the IRS.

He added that there may be some that will be disallowed but not as high as $18 million.

He added that the IRS issue is an entirely different situation from the case pending before the Court of Tax Appeals in the Philippines.

In the US, nonpayment of taxes could land one in jail.

Garnished accounts

The Sarangani congressman’s longtime lawyer, Franklin Gacal Jr, recently suffered a massive stroke and was not available for an interview. Gacal handled all fight contracts of Pacquiao since the two bosom friends teamed up in the early 2000s.

After his rousing win over Brandon Rios in Macau on November 24, Pacquiao complained that he could not withdraw money to donate to the victims of Typhoon Yolanda (Haiyan) in Leyte after the BIR garnished his bank accounts.

BIR Commissioner Kim Henares, however, said they were only able to garnish P1.1 million from Pacquio’s known bank accounts.

A case is now pending before the Court of Tax Appeals which recently issued a gag order for both parties.

Pacquiao, a sure lock to the Hall of Fame of boxing, has earned more than $100 million in purse money, PPV sales, endorsements and other sources over the last 10 years, making him the richest member of the House of Representatives.

He used his stature as boxing icon and purse earnings to win a seat in Congress, representing the lone district of Sarangani, home province of his wife Jinkee.

His camp has also called the BIR move political harassment.

Pacquiao campaigned for former Senator Manny Villar in the 2010 presidential elections which was won by President Benigno Aquino III.

Pacquiao has since aligned himself with Vice President Jejomar Binay, who has expressed his intention to run in the 2016 presidential elections.

Tags: manny pacquaio boxing irs us government taxes Photographer: Roger Alcantara, Wikipedia Commons


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