Pacman vs taxman: Pacquiao faces ‘knockout’ charges
The taxman may yet deliver a knockout punch in its fight with boxing icon Manny Pacquiao, once the Bureau of Internal Revenue’s poster boy.
Finance Secretary Cesar V. Purisima on Tuesday said that the BIR was just doing its job. “No one is exempted from being investigated by the BIR—even myself, they asked for my files,” he said.
“I don’t think the BIR will dare harass an eight-time world champion,” Purisima said, noting that most revenue officers are big fans of Pacquiao.
Speaking on the sidelines of a Philippine Investment Forum organized by Euromoney magazine in Makati, Purisima said that part of the process of auditing a taxpayer was asking for tax documents.
“We love and respect [Pacquiao] and we wish him the best,” the finance secretary said. “But at the same time we have a duty to make sure that we review everyone’s income tax return, and I don’t think Congressman Pacquiao should take this personally.”
A lawmaker advised Pacquiao to just “prepare a TKO evidence and consult law and finance” [experts] and resolve his problems like any ordinary citizen instead of enlisting the help of President Benigno Aquino III.
Wealthiest House member
The BIR office in Central Mindanao has filed a complaint against Pacquiao for failure to submit complete tax records for 2010. If found guilty, Pacquiao could face up to two years in jail.
The boxer declared P1.13 billion in assets at the end of 2010 and no liabilities, making him the country’s wealthiest member of the House.
Forbes.com magazine estimated he spent $7 million in his election campaign in 2010 while also earning $35 million for his two fights against Joshua Clottey and Miguel Cotto.
Pacquiao’s lawyers have said the BIR director in Central Mindanao “railroaded” the tax charges.
Pacquiao maintained that he was not given enough time to comply with the BIR subpoena since it was given in the middle of his fight with Mexican Juan Manuel Marquez.
Singled out
The Sarangani lawmaker said the tax suit filed against him by the BIR had cost him millions of dollars in ad money.
“Why the BIR singled me out smacks of bad faith designed to tarnish my reputation. In just one instance, the BIR has tarnished my name. I shall rise to the occasion and I shall fight this case until the last and final round. We will fight,” Pacquiao said in a press conference on Monday.
Asked if there could be malicious motives for the BIR’s regional office to harass Pacquiao, Purisima said he did not know but he expressed confidence that the office would not dare do so.
“He’s a national icon, a national symbol, a national pride [but] I think that just like any Filipino citizen, we should open our records when asked by the bureau,” the finance secretary said.
Last year, the BIR issued Revenue Memorandum Order No. 3-2011 which said that the audit of lawyers, doctors, engineers, accountants and other taxpayers who rendered professional services would be prioritized.
No support from House
In Congress, the eight-time world champion might be well-loved but he did not get any support from other lawmakers in his gripes against the BIR.
Speaker Feliciano Belmonte Jr. and Representatives Antonio Tinio (ACT Teachers), Raymund Palatino (Kabataan) and Walden Bello (Akbayan) have advised Pacquiao against asking President Aquino to fire a BIR official for harassing him on his tax payments.
“I think you’re correct,” Belmonte said when asked if Pacquiao should just use normal channels rather than seek presidential intervention in resolving his beef with lawyer Rozil Lozares, the BIR Central Mindanao director.
Inspire others
Tinio said that Pacquiao as a public official and role model should set the proper example and break the stereotype that the rich and powerful can evade the payment of proper taxes with impunity.
“If he feels he’s being unfairly targeted, then he should pursue it through the proper channels,” Tinio said.
Palatino said Pacquiao “shouldn’t bully, intimidate, threaten a coworker in government” and instead “inspire others not to abuse fame, wealth, and power to receive special treatment from the bureaucracy.”
Rather than ask the President to fire Lozares, Palatino said Pacquiao should just come up with “a TKO evidence” and resolve his problems like any ordinary citizen.
Bello said Pacquiao’s call for Mr. Aquino to step in his case was unjustified.
“Congressman Pacquiao, for whom I have a great deal of respect, should just comply with the BIR’s requests. If he’s telling the truth about his taxes, he has nothing to worry about,” the Akbayan lawmaker said.
Pacquiao’s tax problems are the latest colorful event in his career, which he hinted last week was nearing an end because God had told him to retire soon.
Pacquiao, who has a 54-3 win-loss record with two draws, will stake his World Boxing Organization welterweight crown against undefeated American Timothy Bradley in Las Vegas on June 9. With a report from AFP
