Pacquiao Owes The Government 2.2 billion in Taxes

[CVT]

TAX101

1. A Filipino Citizen (which, last I know Manny Pacquiao is) is taxed for ALL his income.. whether earned within the country, or outside (may mga listed exceptions - but for the purpose of this thread, MP really should be taxed for all his income)... so.. yung trail ng BIR na check all Earnings... nasa lugar (at least on paper)...

2. May tax treaty between Manila and Washington... somehow.. the taxes (perhaps not all, but some as those agreed upon in the treaty) paid in the US (as host country) can be CREDITED in the PH for the purposes of computing total tax due... so in this case.. tama din lang ang trail ng BIR na get the earnings.. then get the actual tax paid... para ma credit...

yung usapan sa media.. well.. nasa Pilipinas tayo... lahat yan na mamaniobra... perhaps MP has a play on this.. and BIR has no choice but to respond thru media lest the government be seen in a bad light, which will ultimately affect the popularity of the one residing in Malacanang...

possilbe na yung letter ni Top Rank ay letter lang... not certification.. as mentioned earlier.. kung accountant sana sa US ang nag issue nun.. maaari din baka tanggapin na... dito nga eh.. certificaiton from bank lang on interest paid ubra na sa BIR eh...

as per interview kanina kay Henares.. 2.2B is total inclusive of penalties and surcharges... so kung 2 years na to.. lobo na talaga to... but on the other hand... BIR also has the tendency to bloat the assessment.. kasi in our tax environment, it is the taxpayer who has the burden of proof on income earned... and allowable deductions incurred... all the BIR has to do is show a semblance of income (no matter how bloated).. it is the taxpayers duty and defense.. to double check what BIR is alleging... sabi nga ni Henares kanina.. mukhang di naman kino contest ni MP yung part ng assessment.. ang kino contest ni MP ay yung taxes paid... style yata dapat dito as a defense.. is to attach both ends: yung basis ng BIR sa assessment which is san nila na base yung earnings / income... to arrive at the computed tax... then secondly.. attack the merits of the taxes being imposed... and the allowed deductions... then sa dulo attack / defend also on the taxes already paid in the US... although sa ganitong laban.. documentation talaga... burden of proof is on the taxpayer.. so minsan.. kung maayos ang records ng taxpayer.. at kita nya exposure nya... titimbangin din.. kung maliit ang nasilip ng BIR... sige na.. kung mas malaki.. laban...

may mga nasagap na ako na experiences.. na say... Letter of Notice issued to taxpayer.. kesyos TPI (third party info)... so lalabasan ka ng assessment na say 100M underdeclared sales... pero di nya ilalabas kung pano nya na compute yung 100M... kung may abilidad ka.. makukuha mo.. kung wala.. or kung inunahan ka ng takot / overwhelmed sa assessment na 100M.. tapos ka na... . now pag nakuha mo yung basis nila sa 100M.. even from BIRs own listing. makikita mo.. bloated.. may mga entries na multiple times lalabas sa listing.. para ma bloat.... sinasadya ba yan ng tao sa baba para kumita... o "honest error" ng system ng BIR.. we never really know... why? it works well for both.. yung corrupt na BIR na empleyado... at sa BIR mismo.... iipitin ang tax payer.. kung mapilitan magsuhol ang taxpayer.. matuwa yung mga tataba ang bulsa sa BIR... pag nagbayad ng may resibo sa BIR.. matutuwa pa rin sila kasi credited sa collection effort nila... so either way.. the taxpayer gets scr*w*d..

which makes the PDAF / DAP issue more painful... iipitin nila taxpayer... mapupunta sa PDAF / DAP... and yet.. tapos yung kaso ng mga senador / congressman will drag for how many years.. they are still called honorable... and yet ordinary tax payer... ipinapasara agad ang negosyo... garnish agad ang assets... tahimik sila o wala sila (BIR) quota sa pagtanggal o sa pag file ng cases sa mga tiwaling BIR na kawani... importante habulin lang taxpayer.. pero sa loob.. hindi nila malinis...

secondly.. I believe the real solution to this is tax education... ieducate ang lahat.. common tao.. businessmen etc... on tax issues... how to compute.. the right way to compute etc.. ano ang pwede.. ano ang di pwede... sa part ng BIR be transparent to the taxpayers.. para mapadali ang tax administration... ang problema sa Pilipinas / BIR.. they prey on the ignorance of the taxpayers.. kasi nga.. either makinabang sarili nilang bulsa .. or credited sa collection effort nila kung talagang nagbayad ng naka resibo sa BIR.. wala silang talo...

pero ang talo.. taxpayer... ang talo.. yung sinasabi nilang BOSS NILA...

That is the way I understood it too, bro.

And so, the burden of proof normally rests on the shoulder of the taxpayer,- PacMan in this case.

May mga BIR auditors nga kami rito sa kumpanya,- halungkat lahat for 5 years.... And, shotgun approach... Lahat isasama....

Ang trabaho namin,- isa-isahin ang mga isinama nila for tax at i-prove na nabayaran na namin ng tama o hindi kami dapat magbayad,.. Nakatabi lahat ng references namin.

Kapag nakita nilang may malaking butas,- kawawa ka na.... Hahalungkatin hanggang 10 years(?) before.....



21.7K:outcold:

[_Qwerty_]

diba may period lang na pwede nila halungkatin? 3 years lang yata? after that hindi na pwede?

That is the way I understood it too, bro.

And so, the burden of proof normally rests on the shoulder of the taxpayer,- PacMan in this case.

May mga BIR auditors nga kami rito sa kumpanya,- halungkat lahat for 5 years.... And, shotgun approach... Lahat isasama....

Ang trabaho namin,- isa-isahin ang mga isinama nila for tax at i-prove na nabayaran na namin ng tama o hindi kami dapat magbayad,.. Nakatabi lahat ng references namin.

Kapag nakita nilang may malaking butas,- kawawa ka na.... Hahalungkatin hanggang 10 years(?) before.....



21.7K:outcold:

[shadow]

its easy to disprove BIR, just show them the pertaining documents from IRS, eh di tapos na!

tama ba na tax payers still need to apply for tax exemption based sa tax treaty cuz ang normal talaga eh double taxation unless mag apply ka or submit documents diba?

and all the spins ha...where the money came from, he working hard to earned it, him being a hero...newsflash! irrelevant and was never the issue.

[Ry_Tower]

Certified true copy need nang BIR, kaso hindi nga daw nagbibigay IRS. So sabi ko nga, maki-usap na lang si pacman na baka puwede photocopy tapos tawagan nila IRS to confirm para tapos. Baka kasi may pinagtataluhan pa yan sa computation kaya tumagal nang ganyan.

Habang tumatagal yan, lalong masama para kay pacman. IMHO ayusin na niya agad yan ASAP.

[ayosbathere]

its easy to disprove BIR, just show them the pertaining documents from IRS, eh di tapos na!

tama ba na tax payers still need to apply for tax exemption based sa tax treaty cuz ang normal talaga eh double taxation unless mag apply ka or submit documents diba?

and all the spins ha...where the money came from, he working hard to earned it, him being a hero...newsflash! irrelevant and was never the issue.

actually .. ako yong kinikilabutan sa sinasabi ni Manny.. ni kesyon ngayon pa daw sya magsisinungaling eh nasa diyos na daw sya.

[claRkEnt]

Heard the interview kay Henares. Her points:
1. Dalawang acct lang may garnishment as certified ng banks. 1 is for 800k and the other is 300k (both pesos)

2. All the BIR had been asking from pacman for the past 3 years ay yung IRS form. Parang ITR natin. Ang sinubmit daw ng abogago ni pacman certification letter from Top Rank. How difficult is it ba to obtain copies from IRS? I dont think thats too difficult to obtain given his stature.

Henares is always on the straight-forward approach. Sa kanya laging B&W.

Tingin ko lang nededenggoy na nman si pacman ng abogago nya. Kinukwartahan na naman ang uto-uto!


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[Monseratto]

Daming memes lumalabas sa Social media...

[shadow]

But you goat give it to the PR team handling packy, timing's impeccable. Nilabas nila Ito after the fight, while he's still toast of the town...they're playing the underdog card...alam na nila ito weeks ago..


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#retzing

[oliver1013]

Yung nagnakaw ng tax hindi ma freeze yung pera...yung nagbayad pero walang kopya ng original copy ng pruweba, na freeze.

[kinyo]

ipaayos na lang sa hilaw na bayaw nya ang problema nya sa BIR ... tapos agad yan

[yebo]

so it goes the same way, for a foreigner, if the tax he paid in the host country is say $2000 and the tax due to is home country is only $1000.. he will no longer pay his home country as he already paid more in the host country..

No, depends on the country. See case 1 in my post you quoted. Sa US, Canada, UK, Australia, France, Norway (yan ang alam ko kasi may mga kasama ako dito sa rig) the taxes paid to the host country are only considered as deductible expense. So for example $200K ang income and taxes paid to the host country is $60K, then the taxable income in their home country will be $140K. (Pero sa totoo e $200k pa din yung take home nila at hindi $140k kasi company naman nagbayad ng $60k hindi naman sila. Nirereport lang nila na sila ang nagbayad ng tax sa host country kahit hindi.) Kaya nga inggit sila sa mga pinoy at indonesian kasi pag nagbayad na ng tax sa host country e wala na kami tax due sa home country.

Since sa contract namin e sagot ng company ang income tax sa host country naiuuwi namin ng buo yung salary namin (kaming mga pinoy, indonesian). Sa mga kasama namin na taga US, etc etc, yung binayaran na tax ng company namin e deductible lang yun sa taxable income nila.

isa pa, para makabawas sa tax yung"basic" namin mababa lang, halos 30% e allowances so non-taxable. Mas mababa ang magiging tax sa host and home countries kasi basic lang ang nirereport.

[yebo]

Mali din yata ang title ng news. Hindi naman 2.2Billion ang utang ni pacquiao, grabe din sa sensationalism ano. 2.2B yung hindi nya dineclare na income kasi nga bayad na sa US IRS yung tax. Pero hindi 2.2B yung utang nya. So kung taxable pa din yung 2.2B, sa 3% tax rate e P66M lang ang tax na utang at hindi 2.2B.

[wowiesy]

Mali din yata ang title ng news. Hindi naman 2.2Billion ang utang ni pacquiao, grabe din sa sensationalism ano. 2.2B yung hindi nya dineclare na income kasi nga bayad na sa US IRS yung tax. Pero hindi 2.2B yung utang nya. So kung taxable pa din yung 2.2B, sa 3% tax rate e P66M lang ang tax na utang at hindi 2.2B.

2.2B yung total inclusive of penalties and surcharges... that means.. taxes due plus penalties and surcharges...

the actual tax due is much smaller... yung gross earnings.. well.. mathematics na lang... di naman natin alam eh.. si MP din lang nakaka alam... but for BIR to come up with an assessment.. minsan kahit news clippings lang gagamitin na nila (hindi naman certified ang mga news items)... to give it better basis.. hanapin nila assests ng tao.. kung marami assets.. yet reported income maliit... may doubt talaga....

but in the case of manny... malinaw naman na may income source... malinaw marami asset.. so di yun ang pinag lalabanan dito...

[shadow]

It's just a ploy to gain public sympathy. Ginagamit pa yun mga yolanda victims. Kesyo umuutang pa daw siya ngayon para may pangtulong sa tacloban. Eh sabi ni Henares P1.1M lang yun na garnish. So ibig sabihin P1.1M lang yun pera niya at kailangan niya pang umuutang. Eh July pa daw nangyari yun garnishment. Wala naman daw na freeze na account.

Then yun hinihingi ng BIR eh yun na file nilanf returns sa IRS they were asking it for 2 yrs na daw. Saka hinde rin kailangan original like sinasabi ng PR team ni packy. Certified copy lang ok na.

Sabi ng team packy nagbigay na daw sila ng xerox copy ayaw daw accept ng BIR gusto original which is hiinde naman daw totoo, Ang binigay nila certification from top rank and not returns filed to IRS. Definitely BIR will not accept certification from top rank.

I think top rank is hiding something. Kaya hinde nila matulungan si packy kumuha ng certified true copy from IRS.


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[explorer]

It's just a ploy to gain public sympathy. Ginagamit pa yun mga yolanda victims. Kesyo umuutang pa daw siya ngayon para may pangtulong sa tacloban. Eh sabi ni Henares P1.1M lang yun na garnish. So ibig sabihin P1.1M lang yun pera niya at kailangan niya pang umuutang. Eh July pa daw nangyari yun garnishment. Wala naman daw na freeze na account.

Then yun hinihingi ng BIR eh yun na file nilanf returns sa IRS they were asking it for 2 yrs na daw. Saka hinde rin kailangan original like sinasabi ng PR team ni packy. Certified copy lang ok na.

Sabi ng team packy nagbigay na daw sila ng xerox copy ayaw daw accept ng BIR gusto original which is hiinde naman daw totoo, Ang binigay nila certification from top rank and not returns filed to IRS. Definitely BIR will not accept certification from top rank.

I think top rank is hiding something. Kaya hinde nila matulungan si packy kumuha ng certified true copy from IRS.

one doesn't have to be a tax expert to understand who's telling the truth... $50 lang naman kailangan gastusin para makakuha ng exact copy ng tax return sa IRS (kung totoo nga na may binayad na buwis sa USA)...eh kung wala...kahit anong gawin nyan wala talagang may maipapakita yan kung walang nai-submit sa IRS! kawawang mga ordinaryong employees...bawas agad tax bago makuha sweldo nila...eh yung may pera dinaan sa kasikatan at sa media...sa korte na sya magpaliwanag!!! anak ng £$%^&*

"Since 2010, pinapa-explain namin sa kanya kasi dapat nire-report niya ‘yung total na kinita niya. Dapat ipakita rin niya ‘yung total na binayad niya sa Amerika na buwis. Dalawang taon kami nag-antay, hindi siya makapagpakita ng mga dokumento na ‘yan...According to the IRS website, getting an exact copy of a previously filed and processed tax return requires completing a form and mailing it to the IRS...If you need an exact copy of a previously filed and processed tax return and all attachments (including Form W-2), you should complete Form 4506 (PDF), Request for Copy of Tax Return, and mail it to the address listed in the instructions, along with a $50.00...Henares said the BIR received a letter from Pacquiao's US promoter Top Rank Boxing verifying that the boxer paid his taxes, but the agency does not honor it as a valid document."

from: Henares: Only P1.1-M of Pacquiao deposits garnished

[Manilablock]

Kung ako si pacman ito ang sasabihin ko pag meron nag interview sa akin.

I am proud to be a Filipino and I dedicate my fight to every filipino, but I am ashamed to my corrupt goverment whom harrass private taxpayers but have a blind eye on goverment officials when they steal money from the national funds.

[A121]

OT: Even people working for embassies are now taxed by the BIR kahit sakop pa sila ng Treaties sa Vienna Convention. The BIR wants the treaties to be changed.

[explorer]

Kung ako si pacman ito ang sasabihin ko pag meron nag interview sa akin.

I am proud to be a Filipino and I dedicate my fight to every filipino, but I am ashamed to my corrupt goverment whom harrass private taxpayers but have a blind eye on goverment officials when they steal money from the national funds.

tax evader nga sya eh...tax evasion is no different from corruption...lalo na member sya ng congress

from: Pacquiao paid lower taxes as fortunes rose

Pacquiao paid lower taxes as fortunes rose

by RG Cruz, ABS-CBN News
Posted at 11/27/2013 1:07 AM | Updated as of 11/27/2013 1:12 AM

MANILA - As boxer Manny Pacquiao's fortunes rose, he also seemed to be paying lower taxes.

This is based on a comparison of Pacquiao's standing in the Bureau of Internal Revenue's (BIR) lists of top 500 individual taxpayers against his declared income in his Statements of Assets, Liabilties and Net worth (SALNs) filed as congressmen in the last 3 years.

All public officials are required to disclose their SALNs as soon as they assume office, and for every year they are in office.

Two years before becoming congressman in 2010, the BIR listed Pacquiao as its top individual taxpayer with tax payments of P125 million.

The next year, the professional boxer's tax payments dropped sharply to just P7.41 million.

Not being in government for those years, Pacquiao had no SALN.

That story, however, changed in 2010 when as a congressman, Pacquiao was compelled to submit a SALN. Records since then showed that for 3 years now, Pacquiao has been the lone billionaire in the House of Representatives.

In the annual SALN list, Pacquiao even knocked out old rich names likes the Marcoses, the Villars, and the Arroyos.

But while Pacquiao remains as one of the country's top 500 individual taxpayers, he also paid relatively low taxes.

For his SALN covering the period January 1 to December 31,2010, Pacquiao declared a net worth of P 1,143, 233,000. He had no declared liabilities for that year.

He also listed that of his total assets, P397,933,000 are real properties while the rest, P736,300,000 are personal and other properties.

For that year, he was also the BIR's 135th top individual taxpayer and paid individual taxes worth P9.19 million.

In 2011, Pacquiao was still the lone billionaire congressman. His net worth rose slightly to P1,352,689,980. Again, he declared no liabilities.

Of his total assets, P542,433,000 were real estate assets while the rest, P810,256,980, were listed as personal assets. The BIR listed him as the 158th top taxpayer, paying taxes of only P6,106, 040.96.

For 2012, Pacquiao's net worth ballooned to P1,770,566,772. This time though, he declared liabilities worth P258,000,000. His total declared assets are worth P2,028,566,772, of which P1,037,909,792 were listed as real properties while personal properties were listed as worth P990,656,980.

Based on the BIR's top 500 individual taxpayers' list that year, Pacquiao was the 36th top individual taxpayer in the country, paying P22.38 million in taxes for that year.

The drop in Pacquiao's tax payments from 2008 to 2009 caught the attention of the BIR based on a 2010 ABS-CBN News report.

As early as 2010, BIR Commissioner Kim Henares said the bureau was surprised that Pacquiao only ranked 113th in the list of top individual taxpayers for 2009, considering he had been topping the BIR annual list for the past years.

"Offhand, ang unang reaksyon namin ay bakit nagkaganito? Tinignan namin kung mayroong nag-iba sa 2008 at 2009. Wala naman kaming nakitang pagkakaiba. If there is no material difference or there is improvement, the tax should be the same or even higher. If there is a large discrepancy, we start thinking and we ask the taxpayer what happened and why their tax payment is so low," she told ABS-CBN's "Umagang Kay Ganda."

Pacquiao had two prize fights in 2009, both of which he won. The Filipino fighter knocked out British boxer Ricky Hatton in their May 2, 2009 fight and then followed it up with a TKO over Puerto Rican pugilist Miguel Cotto in November 14 of the same year.

In the Hatton fight, Pacquiao earned a reported $12 million for just 2 rounds of boxing. He also got an estimated $22 million for the Cotto fight, which included his fight purse and pay-per-view earnings.

The details of all congressmens' SALNs, however, remain mostly confidential as House leaders have repeatedly refused to release individual SALNs.

Requests for individual SALNs would have to be cleared by the secretary-general with each congressman.

In the past, few congressmen released their individual SALN which should have the complete detailed listing of their assets and interests.

Fresh from a victory in the boxing ring in Macau over the weekend, Pacquiao found himself fighting again, this time in the legal arena to lift the garnishment that froze some of his bank accounts.

The case stemmed from the supposed failure of Pacquiao's accountant to report in his income tax returns (ITR) the millions of dollars in taxes that he paid in the US in relation to his fight purses from 2008 to 2009.

[jansky]

Kim: pag nanalo si pacman sa laban ilabas ang report na ito

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[shadow]

Taena talaga itong si abnoy panot, wala ng ginawang tama...kasalan an ni abnoy bakit hinde magbayad ng tax si pacyou


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#retzing