Pacman seeks SC relief in tax case

MANILA, Philippines - World boxing champion and Sarangani Rep. Manny Pacquiao and his wife Jinkee have turned to the Supreme Court (SC) for help to stop the Bureau of Internal Revenue (BIR) from collecting their alleged tax deficiency of over P3.2 billion, including surcharge and interest, for 2008 and 2009.

In a 75-page petition filed last July 24 but made available to reporters only yesterday, the Pacquiao couple asked the high court to issue a temporary restraining order (TRO) to stop BIR from collecting the amount.

Petitioners asked the SC to also stop the implementation of a Court of Tax Appeals (CTA) order last July 11 requiring them to post a cash bond or a surety bond worth P4,947,772,341.53.

Through lawyers from the Romulo, Mabanta, Buenaventura, Sayoc & De los Angeles law offices, the Pacquiaos told the SC that the amount set by the CTA was “effectively an impossible condition given that their undisputed net worth is only Pl,185,984,697.”

They said the CTA committed “grave abuse of discretion amounting to lack or excess of jurisdiction” in setting the bond amounts and requiring them to post the same within 30 days from receipt of resolution.

The Pacquiao couple alleged that the BIR also committed the same offense and even violated their constitutional right to due process “in presuming the correctness of a fraud assessment without evidentiary support other than the issuance of the fraud assessments themselves.”

They said the tax agency “commenced tax collection process against Jinkee without issuing or serving a notice against her” and that it also “failed to comply with the procedural due process requirements for summary tax collection remedies under Sections 207(A) and (B) of the Tax Code when it commenced summary collection remedies before the expiration of the period for Petitioners to pay the assessed deficiency taxes.”

Petitioners also accused BIR Commissioner Kim Henares of violating the procedural requirements for summary tax collection remedies under Section 208 of the Tax Code when she failed to serve petitioners with warrants of garnishment against their bank accounts.

They likewise questioned why the BIR, allegedly without authority from Henares, increased the aggregate amount of assessed deficiency income tax and value-added tax from P2,261,217,439.92 to P3,298,514.894.35 after they filed the petition before the CTA in August last year.