Henares reminds Pacquiao: Settle P2.7B tax deficiency

by Cathy Rose A. Garcia, ABS-CBNnews.com

Posted at Apr 14 2014 12:02 PM | Updated as of Apr 15 2014 06:19 PM

MANILA, Philippines (UPDATE) - A day after he regained his WBO welterweight title, boxing champ and congressman Manny Pacquiao still faces a tough fight against Bureau of Internal Revenue (BIR) Commissioner Kim Henares.

Henares once again reminded Pacquiao to settle his previous tax deficiency.  She said Pacquiao's standing tax due from previous years is now more than P2.7 billion as of April 2014, due to interest.

Pacquiao's tax deficiency was assessed at P2.1 billion as of December 2012, after the BIR discovered that he has not been paying income taxes in the Philippines on his winnings for his previous fights in 2008 and 2009.

"As of December 2012, P2.1 billion. Pero may 2013, so 20% (interest) pa yan. Ngayon April, may 6.67% (interest) pa. So tumatakbo na yan... So yun P2.1 billion, madaragdagan ng P26.67% (interest)," she said on DZMM.

Henares said the boxer can settle his liability on a staggered basis but only within a year.

During the boxing champ's visit to the BIR last year, Henares said they discussed how he can settle his tax deficiency.

"Alam niyo ho, bumisita siya sa amin last year. Sinabi namin kung ano puede niyang gawin but since bumisita siya, wala ho ulit kaming communication," she said.

Last January, Pacquiao paid the BIR P32 million, but this is still a small part of what he owes the government.

Meanwhile, Henares reminded the boxing champ to report his tax payments on his winnings properly to the BIR this time. She noted this time, the BIR may not even collect any taxes on Pacquaio's winnings.

"Kung gagawin niya ang tama, tingin ko wala ho tayong makokoleta sa recent taxes (ng winnings). Kung di pa rin niya gagawin ang tama, eh may problema na naman siya," she said.

Pacquiao defeated Timothy Bradley Jr in Las Vegas on Saturday evening. He is guaranteed a $20 million (P888 million) payout plus a share of the pay-per-view buys for the fight.

If he already paid his taxes on his winnings in the US, Henares said Pacquiao only needs to provide the proper documents as evidence of his payment.

"Kailangan i-report pa rin niya yun $20 million as part of his income. Pagkatapos, irereport din niya (sa BIR) kung mag-kano ang binayad niya (taxes) sa America. Kung ang binayaran niya sa US ay 40%, so $8 million, eh sa Pilipinas 32% ay $6.4 million, so ibig sabihin wala na ho siyang babayaran," she said. - With report from Alvin Elchico, ABS-CBN News