Senator Manny Pacquiao. INQUIRER FILE PHOTO / GRIG C. MONTEGRANDE

The Court of Tax Appeals (CTA) is set to resolve the motion of Filipino boxing champion turned Senator Emmanuel “Manny” Pacquiao and his wife Jinkee to lift the tax lien on their properties in connection with their alleged over P2-billion tax liability.

A tax lien attaches for as long as the deficiency taxes as well as the interest and surcharges have not been paid. The Bureau of Internal Revenue (BIR) issues a notice of tax lien to protect the interest of the government as stated under the Tax Code.

The Tax Court has submitted for resolution Pacquiao’s motion after the government, through the Office of the Solicitor General, failed to submit its comment.

READ: BIR given more time to answer motion on liens vs Pacquiao properties

Pacquiao’s original tax liability was P2.26 billion but it went up to P3.29 billion due to surcharges and penalties.

The BIR also issued a warrant of distraint and levy and garnishment order against the senator’s assets to cover his tax liability.

The Tax Court stopped its implementation but required him to pay either a P3.2-billion cash bond or a P4.9-billion surety bond which the senator questioned before the Supreme Court.

Pacquiao told the high court that their right to due process has been violated when the BIR proceeded with the tax collection process even without serving a Final Decision on Disputed Assessement (FDDA) against them.

READ: Manny Pacquiao, wife hit BIR for violating right to due process

An FDDA is needed to give the taxpayer the opportunity to question the final decision of the BIR.

The senator added that the BIR has yet to present proof that they committed fraud in the payment of taxes from 1995 to 2009.

The high court has ruled in favor of Pacquiao and ordered the Tax Court to recompute the bond or determine if it can be waived. RAM/rga