Pacquiao Owes The Government 2.2 billion in Taxes

**CVT** · November 27th, 2013 08:28 AM

Mukha yatang ang hinahanap sa kanya ay ang IRS document na nagpapatunay na he paid taxes in the US. Ang ibinigay lang yata ay ang sulat from Top Rank na nagsasabing nagbayad na sila ng tax sa US... 2 years+ na yatang walang ginawa ang kampo ni PacMan....

E ngayon, panalo!!... Ayos!... hahah!

21.7K:outcold:

**jansky** · November 27th, 2013 09:24 AM

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

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**yebo** · November 27th, 2013 09:48 AM

Originally Posted by CVT

... Ang ibinigay lang yata ay ang sulat from Top Rank na nagsasabing nagbayad na sila ng tax sa US...

which is a normal practice in the US and other countries. an accountant's certification is all the IRS (and other countries tax office) needs as proof that tax has been paid for an income earned overseas. this is what our company (and all drilling companies I have worked for) do, issue a "tax letter" signed by our company accountant or whoever accounting firm that handled our tax payments in our host country and this letter suffices as proof that the tax had been paid. so you see what pacquiao and top rank did was all within what is considered as normal practice in other countries.

i am not a pacquiao fan (read the boxing thread) but i believe he is being squeezed.

**_Qwerty_** · November 27th, 2013 09:50 AM

loko tong BIR ang gusto daw original docs from IRS.. eh hindi naman daw nag re release nang original docs ang IRS.. kaya ayun.. ni tax lahat nang kita ni pacman.. parang mga ogag tong nasa BIR..

**Ry_Tower** · November 27th, 2013 10:01 AM

Originally Posted by _Qwerty_

loko tong BIR ang gusto daw original docs from IRS.. eh hindi naman daw nag re release nang original docs ang IRS.. kaya ayun.. ni tax lahat nang kita ni pacman.. parang mga ogag tong nasa BIR..

Dapat sa BIR nag-iisip din na iba sistema sa amerika. Alangan namang pilitin natin US, papano kung hindi talaga puwede. Unfair kay Pacman yun.

Eh di i-verify nila sa IRS kung totoo details dun, if totoo, din no problem na dapat. Anyway tingin ko maaayos din yan.

**Monseratto** · November 27th, 2013 10:06 AM

That is normal for anyone whose income tax was withheld at source. Sa BIR, form 2307 Certificate of Creditable Tax Withheld at Source, EVERYBODY must surrender the ofiginal to the BIR when filing their income tax. A Top Rank letter is not a official IRS document. Also the what BIR held for garnishment is a mere P 1.1 million, not exactly billions he earned in every fight, unless naubos and pigang tuyo na si Pakyou. The timing maybe off, but puro drama and paawa effect si Pakyou ngayon...

**_Qwerty_** · November 27th, 2013 10:09 AM

out of 24 bank accounts ni pacman.. 2 lang daw ni hold.. with 1.1M in deposit..

**Monseratto** · November 27th, 2013 10:11 AM

Originally Posted by Ry_Tower

Dapat sa BIR nag-iisip din na iba sistema sa amerika. Alangan namang pilitin natin US, papano kung hindi talaga puwede. Unfair kay Pacman yun.

Eh di i-verify nila sa IRS kung totoo details dun, if totoo, din no problem na dapat. Anyway tingin ko maaayos din yan.

Normal people nga pinapahirap ng BIR to show every bit of proof na nag bayad... tapos si Pakyou papa special treatment? It's Top Rank's problem to give Pakyou the IRS document. Let Pakyou go after Bob Arum .

**wowiesy** · November 27th, 2013 10:12 AM

Originally Posted by 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.

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...

**wowiesy** · November 27th, 2013 10:18 AM

Originally Posted by yebo

mukhang tama naman yung accountant ni pacquiao ah. there was no need to report the earnings that were already taxed. and if ever there was a need to report it, the taxes due on it is only 3% max (as per philippine laws, for income earned abroad). since the taxes already paid to the US government exceeds that 3% then the tax liability to the philippine government is zero. the law will only require pacquiao to pay the 3% tax if the income was not taxed in the country where he earned it. example is his recent fight in macau where there is no tax, he will have to pay 3% as tax to the philippine government.

like me i do not report my income anymore since taxes are already paid to my country of assignment. the only ofw's that may have to pay (optional kasi for ofw) the 3% are those working in zero tax countries, like in the middle east. wala nga nagbabayad nun e.

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...