BIR wants Pacquiao to pay P3.2B outright

The Bureau of Internal Revenue (BIR) asked again the Court of Tax Appeals (CTA) to stop the public hearings on the R3.2-billion deficiency tax assessment imposed against world boxing champion Manny Pacquiao, and instead order him to pay the indebtedness outright, it was learned yesterday.

Pacquiao

The BIR reiterated its request in a motion for reconsideration (MR) filed last week after the CTA rejected on January 27 its petition for the immediate collection of the delinquent accounts.

BIR lawyers insisted that the tax court should terminate the deliberation because it has lost jurisdiction over the case as the final assessment or the final decision on disputed assessment (FDDA) has already been served against the Sarangani congressman.

They argued that the serving of the FDDA makes the collection of the tax demandable and executory as provided for in existing revenue rules and regulations, considering that taxes are the lifeblood of the government and should be collected without delay.

BIR lawyers added that the FDDA was received by Pacquiao’s chief-of-staff and brother-in-law Erwin Jamora when tax fraud investigators went to Pacquiao’s congressional office at the Batasan Pambansa on May 20, 2013 to serve it.

They said Pacquiao was aware of the FDDA because one of Jamora’s functions was to inform the solon of communication received by him.

The tax court stated in its January resolution that the FDDA was not yet final and executory because the BIR was not able to establish that Jamora was the duly authorized representative of Pacquiao.

Tax exemption pointless

Meanwhile, Pacquiao’s camp yesterday declared that he will pay the tax due from his purse in his biggest and richest fight with American champion Floyd Mayweather slated in Las Vegas, Nevada on May 2.

“He needs no exemption. Tax in the US is about 39 percent, thus, higher than in the Philippines which is 32 percent,” one of Pacquiao’s closest advisers who is with him in Los Angeles, California, told the Manila Bulletin yesterday.

The member of Team Pacquiao, who requested anonymity, was reacting to arguments among House members for or against tax exemption for the Sarangani congressman in his upcoming fight.

House Deputy Speaker Giorgidi Aggabao supported the Pacquiao team’s position on the issue as being pointless, saying any tax exemption has no effect on Pacquiao’s tax payments because of existing tax rules and arrangements between the Philippines and US. (With a report from Ben R. Rosario)