Tax Court defers ruling on liens vs Pacquiao properties

Senator Manny Pacquiao. INQUIRER FILE PHOTO / RICHARD A. REYES

Tax lien on the properties of Senator Emmanuel “Manny” Pacquiao and wife Jinkee stays.

This after the Court of Tax Appeals (CTA) has put on hold the resolution on Pacquiao’s bid to lift the tax liens until the termination of preliminary hearing on the main case.

READ: Tax Court to resolve motion on liens vs Pacquiao properties

“The petitioner’s motion to lift notices of tax lien annotated on properties registered in the name of petitioners is held in abeyance until the termination of preliminary hearing,” the Tax Court said on Thursday.
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.

According to the BIR, the senator’s tax liability is P2.26 billion but it went up to P3.29 billion due to surcharges and penalties.

Aside from the tax lien, 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: BIR given more time to answer motion on liens vs Pacquiao properties

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