Manny Pacquiao KO’d By Gov’t, Court Orders Bank Deposits Frozen – ReportA day after Manny Pacquiao again gave pride to Filipinos worldwide, the Philippine government itself has seemingly thrown a sucker punch against the “pambansang Kkamao” as it became known that the Court of Tax Appeals has ordered his bank deposits frozen in light of a P2.2-billion tax case.
The report comes to us via Manila Bulletin which said that the freeze was ordered by the First Division of the aforementioned court two weeks ago but only came to light on Monday, a day after Pacquiao won a unanimous decision against American Brandon Rios to clinch the World Boxing Organization (WBO) international welterweight crown.
According to the same report, Pacquiao’s lawyers has protested the Court of Appeals order known as a warrant of garnishment. The legal counsels of the boxing legend are said to have attached documents including those indicating his bank deposits over what the BIR claims are unpaid taxes for his income in the years 2008 and 2009.
Pacquiao’s camp said that he did not include taxes he paid to the US Internal Revenue Service in 2008 and 2009 from his wins against Juan Manuel Marquez, David Rios, Oscar de la Hoya, Ricky Hatton and Miguel Cotto since the U.S. and the Philippines have a bilateral treaty that forbids double taxation.
According to records, Pacquiao paid $8.4 million (nearly P400 million) to the IRS from his $28 million total prize money in 2008 and 2009.
Pacquiao’s camp said that he remitted P12 million to the BIR during those years for his P114 million income as endorser of at least 14 products.
As it appears based on the report from the Manila Bulletin, Pacquiao is being slapped with the tax evasion case because of a technicality.
The publication quotes Bureau of Internal Revenue lawyers saying that the tax debts have become “demandable, executor, and collectible” because Pacquiao did not answer what is called a final assessment notice (FAN) which was sent to him understandably to have him explain. He had 30 days to reply to the notice.
Pacquiao’s camp has also decried the total assessment of P2.2 billion that he has to pay according to the BIR because it is unreasonable and is over the boxing icon’s net worth. That assessment includes interest and surcharges.