BIR on Pacman’s tax reprieve: Fight not over

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has not given up despite the recent legal setback to its efforts to run after Sarangani Rep. Manny Pacquiao, saying the fight is not over until the boxing icon settles his tax liabilities amounting to more than P2.65 billion.

The Supreme Court (SC) issued a temporary restraining order enjoining the Court of Tax Appeals (CTA) from implementing its order last July requiring Pacquiao to post a cash bond of P3 billion or surety bond worth P4.95 billion for unpaid taxes in 2008 and 2009.

The SC also stopped the appellate tax court and the BIR from implementing garnishment orders and tax lien on Pacquiao’s assets.

BIR Commissioner Kim Henares said they would ask the SC to reconsider its decision.

She said the government’s main tax collection agency had put a lien on the boxing champ’s house in Forbes Park. Pacquiao acquired the property for P388 million in 2011.

A lien on the property means the BIR has legal claims on the assets until the tax deficiency has been paid.

“The garnishment has started. This can not be restrained anymore,” Henares said.

She said the high court ruling did not cover the freeze order on Pacquiao’s bank accounts totaling over P2 million.

Henares reiterated that Pacquiao has yet to show proof that he paid taxes in the US.

The BIR chief said the government has given the lawmaker enough time to present documents that would disprove the agency’s claims.

“It’s been more than two or three years and he has presented nothing to us. We’re just doing our job,” Henares said.

The SC also ordered the CTA to resolve Pacquiao’s case with dispatch.

The case stemmed from his failure to pay taxes on earnings from his fights in the US in 2008 and 2009, his shares in income from pay-per-view cable services that aired his fights and his endorsements of various products.

His tax liability has ballooned to almost P3 billion.