Manny Pacquiao Disputing $18 Million Owed To The IRS
By Ronnie Nathanielsz
“Fighter of the Decade” Manny Pacquiao has denied allegations published by the entertainment website TMZ Sports that he owes the US Internal Revenue Service or IRS $18.3 million in taxes for the years 2006 to 2010.
TMZ claimed it had obtained official documents which show the IRS claims Pacquiao owes federal income taxes totaling $18,313,668.79 but Pacquiao said this was not true.
He maintained that Top Rank promoter Bob Arum deducts 30 percent from his purse in every fight and pays the IRS which Arum himself confirmed.
Pacquiao claimed there appears to be a concerted effort to destroy his image following an earlier report that he was a green card holder which he said was totally false.
BoxingScene.com/Manila Standard learned that a disgruntled individual who tried to wiggle his way into Team Pacquiao and was rejected, is behind the effort to besmirch the name not only of Arum and Pacquiao’s adviser Michael Koncz but the boxing hero himself.
Koncz told BoxingScene/Manila Standard “this allegation (about taxes) is nothing new. We have been under audit for three years. The scenario in America is totally different from the scenario here with the BIR” which he indicated is likely to be resolved soon.
Pacquiao reportedly met with his lawyers on Tuesday evening and discussed the tax issues with the BIR which is expected to be resolved amicably.
Koncz clarified that in the US it’s a very simple issue involving four categories of deductions. He said “when you file taxes in America you have to itemize every deduction and there are four areas of tax deductions that is being disputed between us and the IRS. Its not a question of earnings its a question of allowable deductions.”
One of the deductions being contested is the airfare of people whom we buy tickets for to come to the fights. Another issue is whether signing bonuses are taxable or not taxable.”
Koncz said “these are the issues at hand and its very simple. We have very competent accountants handling our taxes and a competent tax lawyer and this should be resolved shortly.”
Discussing the figure of $18.3 million Koncz said “if they disallow all our deductions then perhaps they are there. But that’s not our tax liability. We are not going to come anywhere near that.”
Koncz conceded that “we know we are going to end up owing some additional taxes but it will depend on what the tax appeals court will allow us to deduct and what they won’t allow us to deduct.”
[QUOTE=radioraheem;14024345]As time passes, more things come out... [IMG]http://www.fighthype.com/images/misc/PacquiaoIRSLienLoRes.jpg[/IMG][/QUOTE] Damn Pacquiao getting bent over.Comment by radioraheem on 12-13-2013
[QUOTE=techliam;14018615]In that case, i'm just gonna leave the thread lol. We're just going to find Pro-Floyd posters and Pro-Pac posters going on and on, as again there's no solid proof of anything.[/QUOTE] As time passes, more things come out... [IMG]http://www.fighthype.com/images/misc/PacquiaoIRSLienLoRes.jpg[/IMG]Comment by Dr Rumack on 12-12-2013
[QUOTE=mrjoeblive;14021932]Pac and all athletes dont pay taxes until the end of the year. This is so all income can be accounted for. Including salary and endorsements and camps. After all the write offs and exemptions there is no way he…Comment by the secret on 12-12-2013
Where are you getting 30%? The wealthy use so many loopholes it's difficult to keep up. Not to mention, there isn't any flat tax. To put it simply, Arum ripped Manny off, BIG TIME!Comment by mrjoeblive on 12-12-2013
[QUOTE=Dr Rumack;14020899]Athletes pay 30% on their earnings from athletic events. The promoter is required by law to withhold 30% for non-USA residents. That 30% is then paid to the IRS the following day as far as I know. The issue…Post a Comment - View More User Comments (98)