Pacquiao wins initial bout vs. BIR

MANILA, Philippines - More than a week after world boxing champ Manny Pacquiao unanimously won his fight and reclaimed the WBO welterweight title from American boxer Timothy Bradley, the Philippine's boxing pride won the initial bout in his fight against the Bureau of Internal Revenue (BIR).

This, after Court of Tax Appeals (CTA) stopped the BIR from garnishing Pacquiao's properties in connection with the P3.289-billion back taxes being collected against the Filipino boxer.

Pacquiao won the initial bout against BIR chief Kim Henares, who is the respondent in the case lodged under case number 8683.

The Court, meanwhile, directed Pacquiao and his wife, Jinkee, to either deposit some P3 billion in taxes being collected or to file a surety bond of not more than double the said amount with the Court.

In a decision last April 22, The CTA's First Division granted Pacquiao’s urgent motion to lift the warrants of distraint and levy and garnishment and for the issuance of an order to suspend the collection of tax against him.

In the 10-page resolution, the First Division granted the instant urgent motion for the suspension of collection of taxes. The resolution was signed by presiding justice Roman Del Rosario and concurred by associate justices Erlinda Uy and Cielito Mindaro-Grulla.

“Accordingly, respondent is hereby ordered to cease and desist from enforcing the subject Final Decision of Disputed Assessment (FDDA) and from collecting the subject deficiency tax assessments issued against petitioners for taxable years 2008 and 2009,” the ruling said.

The Court also lifted the warrants of distraint and levy, garnishment issued in relation to the FDDA and deficiency tax assessments, pending the final disposition of this case.

“However, the suspension of collection shall be subject to petitioner’s depositing of a cash bond in the amount of P 3,298,514,894.35 or posting of a GSIS bond or a bond from other reputable surety company duly accredited by the Supreme Court, in the amount equivalent to one and one half (1 ½) of the amount being collected or P 4,947,772,341.53,” the resolution said.

The Court's order came with a warning that “failure to post the required cash or surety bond and submit the above-stated requirements within 10 days from receipt of the resolution will warrant the setting aside of the suspension of collection of taxes as herein granted.”