BIR notes huge drop in Pacquiao tax payments

Posted at Mar 08 2012 03:58 PM | Updated as of Mar 09 2012 12:47 AM

MANILA, Philippines - Bureau of Internal Revenue commissioner Kim Henares explained Thursday that the bureau was forced to sue Sarangani Rep. and boxing champ Manny Pacquiao because he continued to ignore the BIR's requests for copies of his contracts.

Speaking to radio dzMM, Henares said Pacquiao's tax payments dropped from over P100 million in 2008 to only P7 million in 2009.

She said Atty. Rozil Lozares of BIR District 18 sued Pacquiao for violation of Article 266 of the National Internal Revenue Code because the boxing champ continued to ignore the BIR's requests for his contracts.

"We haven't reached to the point that he is evading taxes. We are asking him for copies of his contracts to different companies, which he has not given or has refused to give," she said.

The BIR wants to investigate 33 tax records, including Pacquiao’s annual income tax return in 2010, his book of accounts, list of assets, as well as his earnings from his fights against Antonio Margarito and Joshua Clottey.

The agency also asked Pacquiao to produce 29 copies of his contracts for endorsements, including endorsements with Ricoa, Pagcor, and PLDT.

Henares said the BIR has already stopped giving awards to the country's top taxpayers "because paying a large amount does not necessarily mean you are paying the correct amount."

Radio dzMM, March 8, 2012