Pacquiao's bank accounts frozen over tax owed.

[STAX ON DECK]

Serves the clown right for ducking maylegend

[edgarg]

Could you explain the situation in layman terms of what this means?

EDIT: So I did a quick Google search and found out that the Philippine's tax collectors claim that Pacquiao didn't pay taxes for his earnings in 2008 and 2009. Pacquiao's camp is now arguing that since the fights were fought in the USA, which has a treaty with the Philippines preventing double taxation, that they already paid their taxes once - which should be enough.

Apparently there's something about a notice being sent to Pacquiao, which was ignored. There's also something about how the fine has grown to the point that it exceeds beyond Pacquiao's net worth, which is a site of argument between the government and Pacquiao's legal team.

Some comments in the news sources seem to be aimed at the political corruption in the Philippines, since Pacquiao's political opponents would like to prevent the $18 million USD from being donated to the Typhoon Haiyan, which could potentially give Pacquiao greater political leverage in the region.

Good find, interesting read OP. There's some shady shenanigans going on over there.

You're not exactly correct. The tax paid in the US is CREDITABLE against any taxes payable in the Philippines. If the Philippine taxes are greater than what was paid in the US, he still owes the difference. If they are less, then his accountants can claim a rebate from the US Government.

This is my understanding of the article. The amount claimed is over 50 million USD. So what Pacquiao means is that it's more than he can raise in cash, because he's worth close to $100 mill, all well invested.

[Bee Keepz]

Let me this right, he paid 8.4 mil in the US and is also getting taxed in the PI? Wow that sucks. Everyone seems to be sucking this dude dry.

[No.]

He should have left Top Rank a long time ago, he's big enough to promote himself. The Mayweather fight would have been made easily without Arum in the picture.

FROYD MAYFEATHER IS A COWARD DUCKER CHIKEN DAS SCARE OF DE PAKMEN!!!

[Slip Stream]

Let me this right, he paid 8.4 mil in the US and is also getting taxed in the PI? Wow that sucks. Everyone seems to be sucking this dude dry.

Yes they're sucking him dry because Pacquiao is a large intellectually motionless creature. He makes it easy for the people around him to gorge off of his lack of curiousness about his finances. He doesn't seem all that intellectually curious about anything and he keeps giving out his hard earned cash to a useless entourage. Pacquiao's story is how a lot of boxers end their careers, deep in dept and on the skids in the ring, its a natural progression in boxing on the way to palooka.

[edgarg]

Manila, Philippines – Boxing idol Manny Pacquiao, who scored a unanimous victory over American Brandon Rios in their World Boxing Organization (WBO) international welterweight title fight last Sunday in Macau, suffered a setback at home when the Court of Tax Appeals (CTA) ordered his bank deposits frozen over a P2.2-billion tax case.

The tax court’s First Division issued the freeze order some two weeks ago but it was only known yesterday, a day after Pacquiao’s emphatic win. The boxing icon’s lawyers had earlier protested before the CTA the warrant of garnishment (WG) issued by the Bureau of Internal Revenue (BIR), attaching his personal assets that included his bank deposits.

The BIR normally issues WG to prevent delinquent taxpayers facing court suits from disposing of his or her assets during the trial.

US Income Unreported

The tax case arose from the alleged failure of Pacquiao’s accountant to report in his income tax returns (ITR) the multi-million-dollar taxes collected by the US Internal Revenue Service (IRS) from his prize winnings for the years 2008 to 2009.

Pacquiao said the assessment, which included interests and surcharges, was “arbitrary,” stressing he could not afford to pay the assessment because it was more than his net worth.

BIR lawyers said, however, that the tax debts have become “demandable, executor, and collectible” because the solon allegedly ignored to answer the final assessment notice (FAN) sent to him, which expired 30 days after receipt as provided for in the Tax Code.

Revenue officials explained that as a Filipino citizen, Pacquiao, a congressman representing Sarangani province, is required to declare in his ITR all his earnings, including those derived from abroad.

$28M Earned In 2008, 2009

Records show that the boxing icon earned more than $28 million in prize money for successfully defending his various titles against Juan Manuel, David Rios, Oscar de la Hoja in 2008, and Ricky Hatton and Miguel Cotto in 2009.

Of the amount, the IRS collected $8.4 million or roughly about P395 million.

Pacquiao declared he did not include remittances to IRS in his returns due to the existing bilateral tax treaty agreement between Manila and Washington, which stipulates that income tax paid by Filipinos in the US is creditable against his income tax liabilities here.

He added that what he remitted to the BIR was the value-added tax (VAT) amounting to P12 million to cover P114 million earnings from endorsing at least 14 products.

He argued that the BIR assessment has no legal force because it was based on “best obtainable sources.”

He accused revenue probers of ignoring the financial reports submitted by his promoter, Top Rank Promotions and other actual transaction documents, relying only on the so-called “best obtainable evidence rule.”

http://www.mb.com.ph/pacquiao-bank-deposits-frozen/

If he sent 12 mill P to cover 114 millP earnings then the Philippine taxes must be low because that's only about 10-11%. If he paid the IRS $8.4 mill for earnings of $28 mill this is about what the tax rate was then, roughly 35% and he has a large claim for a rebate from the IRS. It has since gone up considerably to 39.8% which together with State and local taxes amounts to about 42%. Obama-size taxes.....

Some years ago I had a very large rebate due from the IRS and it took them over 4 years to send it-with good interest, so I didn't mind that much.

[edgarg]

Yes they're sucking him dry because Pacquiao is a large intellectually motionless creature. He makes it easy for the people around him to gorge off of his lack of curiousness about his finances. He doesn't seem all that intellectually curious about anything and he keeps giving out his hard earned cash to a useless entourage. Pacquiao's story is how a lot of boxers end their careers, deep in dept and on the skids in the ring, its a natural progression in boxing on the way to palooka.

A fortune-telling psychologist like you should be earning money from it. Set yourself up as a gypsy fortune teller. It'll only cost a few dollars for a licence.

[Daddy T]

both floyd and manny are going to end up broke

[MtClimber]

This is not about Arum or Pac's financial literacy.

This is all about the "Yellow".

You have the option to be allied with them but choose to be an enemy.

Now, feel the wrath of the Yellow Army.

Btw, should be in Politics forum.

[Check_hooks]

Pacquiao doesn't have to pay **** because he already paid U.S.A. taxes on them

I doubt the taxes in the Philipines are higher than they are in the U.S. at least going by what republicans are always saying

This is just a attack ad from one of his political opponents who are shook that Pacquiao is taking over politics there.

Pacquiao can afford the best accountants and lawyers in the world and from what I understand he did nothing wrong so this article is bull****