MANILA, Philippines - Sarangani Rep. Manny Pacquiao was ordered yesterday to post a P3.29-billion cash bond or P4.94-billion surety bond as a condition for the lifting of a garnishment order of the Bureau of Internal Revenue (BIR).
In a post on its website, the Court of Tax Appeals (CTA) said its first division has denied Pacquiao’s motion for partial reconsideration of an order stopping the BIR from garnishing his properties to collect their alleged P3.289-billion back taxes.
On April 22, the CTA stopped the BIR from implementing the garnishment order in exchange for a P3.29-billion cash bond or P4.94-billion GSIS or surety bond.
Pacquiao partially appealed the order and asked the CTA to dispense with or reduce the bond.
He also asked for an extension of deadline to post bond if required to do so.
The CTA said Pacquiao must post the required bond within 30 days from receipt of resolution.
“Failure to do so within the period allowed by the Court will warrant the setting aside of the Resolution dated April 22, 2014 granting petitioner’s Urgent Motion for the Suspension of Collection of Taxes,” read the resolution.
The CTA said the ruling guarantees protection of government interest.
Pacquiao and his wife Jinkee are appealing the BIR’s tax assessment accusing them of failing to pay taxes amounting to P2.2 billion from his bouts in the US in 2008 and 2009.
As of last year, the amount has risen to over P3 billion due to surcharges and interest.
Pacquiao filed the urgent motion to suspend collection of taxes on Oct. 18 last year after the BIR supposedly issued a warrant of garnishment to collect the supposed unpaid taxes.
The garnishment order could technically freeze the assets of a person with supposed tax deficiencies.
Prior to the CTA’s latest ruling, the BIR has manifested that it will not execute the warrant in payment for the supposed collectible taxes from Pacquiao “until such time that the pending incident is resolved by the Court.”
The first division – comprised of Presiding Judge Roman del Rosario, and Associate Judges Erlinda Uy and Cielito Mindaro-Grulla – noted the undertaking of the BIR.
Based on court records, representatives of the Pacquiaos and the BIR informed the CTA on Dec. 5 that “there is an ongoing discussion between petitioners and respondent that would have a material effect in the outcome of the present incident.”
The lawyers moved for the resetting of the hearing.
“They need sufficient time to conclude the discussion and they endeavored to submit an appropriate pleading on or before Jan. 16, 2014, informing the Court of the status and/or results of the said discussion,” the lawyers said.