Pacman mega fight tax exemption up to Congress, BIR

MANILA, Philippines - Malacañang is leaving it up to Congress and the Bureau of Internal Revenue (BIR) to consider a proposed special tax exemption for boxing icon Manny Pacquiao in his much-awaited fight with Floyd Mayweather.

Deputy presidential spokesperson Abigail Valte said yesterday it will have to be discussed by Congress because lawmakers are the ones who enact tax exemptions, special or general.

Pacquiao has been dogged by unsettled tax obligations with the BIR. The boxing champ claimed that he had settled his taxes with the United States Internal Revenue Service (IRS), but the BIR said he failed to report it to the Philippines as he was still required to do as a Filipino citizen.

Last Thursday, BIR Commissioner Kim Henares reminded Pacquiao to accurately report to the BIR the taxes he will be paying the IRS.

Sen. Aquilino Pimentel III on Friday said he will file a bill granting the tax privilege to Pacquiao for the honor he gave to the Philippines and for promoting the country.

But Valte said the Palace will have to defer to Henares for inputs in the proposed tax exemption for the boxing champ, and reminded that other athletes should be considered as well.

“There will be questions on the state of other athletes. They also go out and compete and they bear the flag. Will they be included, if ever? That may also be one of the points that will be discussed,” she said.

On May 2, Pacquiao will put his World Boxing Organization title on the line against undefeated Mayweather. The mega-fight is worth anywhere from $250 million to $400 million, experts say.