But court tells Pacquiao to deposit P3.2B cash bond
MANILA, Philippines (UPDATED) – Rep. Manny Pacquiao apparently won the first round against the Bureau of Internal Revenue (BIR) after the Court of Tax Appeals (CTA) ordered the bureau to stop garnishing the boxer's properties.
Pacquiao and the BIR are currently locked in a legal battle on a P3.289-billion tax case.
The CTA's First Division favored Pacquiao's motion to lift the warrants of distraint and levy and garnishment issued by the BIR against him, according to a report by Christina Mendez in The Philippine Star on Wednesday.
“Accordingly, respondent is hereby ordered to cease and desist from enforcing the subject Final Decision of Disputed Assessment (FDDA) and from collecting the subject deficiency tax assessments issued against petitioners for taxable years 2008 and 2009,” said the CTA’s resolution issued on Tuesday.
The tax court, however, ordered Pacquiao to either deposit a cash bond equal to the amount that the BIR wants to collect or to file a surety bond with the court.
“The suspension of collection shall be subject to petitioner’s depositing of a cash bond in the amount of P 3,298,514,894.35 or posting of a GSIS bond or a bond from other reputable surety company duly accredited by the Supreme Court, in the amount equivalent to one and one half (1 ½) of the amount being collected or P 4,947,772,341.53,” the resolution said.
Pacquiao was ordered to post the bond within 10 days from receipt of the resolution.
BIR Commissioner Kim Henares, who is currently out of the country, said Pacquiao isn't out of the woods.
"To stay the garnishment, he has to post a cash bond or a surety bond. I do not see it as stopping the garnishment, as it will only stop if he is able to post the cash bond which is more than P3 billion or a surety bond of more than P4 billion," she told ABS-CBN News.
The BIR earlier issued warrants of distraint and levy and garnishment on some of Pacquiao's assets after the boxer reportedly failed to report his income taxes from his fights in 2008 and 2009.
Pacquiao filed an appeal before the CTA, questioning the agency’s action versus his alleged tax liability.
"Our assessment for 2008 and 2009 has a deficiency for income tax and deficiency of VAT. The total, as of Dec. 31, 2012 was P2.2 billion,” Henares said earlier.
Pacquiao has paid P32 million for surcharge and value-added tax.