The AP reports that the Bureau of Internal Revenue in the Philippines has frozen the bank accounts of Manny Pacquiao. The Filipino tax authorities claim the fighter owes 2.2 billion pesos ($50 million) in unpaid taxes.
The news of the frozen accounts comes just after Pacquiao’s return to the ring where he defeated Brandon Rios. He is guaranteed $18 million from the fight and could make $30 million.
Pacquiao dedicated the fight to the typhoon victims of the Philippines and promised aid to the victims. But, Pacquiao had to borrow 1 million pesos ($22,700) to purchase relief supplies and pledged to borrow more.
Payout Perspective:
Unfortunately, Pacquiao’s story is going down the road of Mike Tyson and Evander Holyfield; boxers who have made millions in the ring but face financial setbacks outside. Hopefully for Pacquiao, who has reportedly made $300 million from his boxing earnings alone, his fate won’t end in bankruptcy. The frozen bank accounts appear to be temporary but if he has not paid his taxes, most of his recent fight purse will go to those unpaid taxes. How this will affect Pacquiao? We may see him fight past his prime in order to get current with his debts and obligations. This may also see him fighting in Macau and other places outside of the U.S. where he’d have to pay almost 40% of his pay to the IRS.
..top rank pays taxes to the IRS in behalf of pacman….so pacman dosent owe the bir in the Philippines because there is a treaty between the u.s. and the Philippines…if pacman already paid the IRS then he is not obliged to pay anymore taxes In the Philippines…no double taxation rule…
It’s pure political harrassment…pacman is with the opposition party and plans to run in the senate in 2016….
What the bir needs they say is official tax certification from IRS….good explanation from arum
http://www.philstar.com/headlines/2013/11/27/1261560/arum-bir-chief-pacquiaos-tax-mess-your-fault
As the official in the Philippines said. If what Pacman, and you, claim is true. All he needs to do is get the IRS to fax over confirmation. Something he refused to do and these taxes are 4-5 years old. He or Top Rank cant show any proof at all that he paid his taxes. If they did pay them there would be tons of ways of proving it. It isn’t like Top Ranked left a suit case of money on the steps of the IRS. They haven’t proven it because they cant prove it because they didn’t pay it.
There is also the chance Top Ranked took the money and didn’t pay his taxes. Wouldn’t be unusual for a promoter to screw the boxers like this.
Why does the IRS not chase pacman if he didn’t pay?
Good question. But why doesn’t he proved he paid? We have reached a stalemate. I think the difference is the IRS has 10 years before they have to take action. Just because they haven’t yet went after him, or the Philippine government acted first, doesn’t mean they were never going to go after him.
A simple tax filing form from the IRS could clear this up in one afternoon. It does seem odd that they don’t just send that. I’ve obtained one of those in less than a week before. Why not pay the roughly $15 and just get the specific proof they’re requesting? Top Rank should know that a letter simply saying “Yeah, we paid those” isn’t enough. Government officials in the Philippines must be pretty confident because they’re calling Top Rank’s bluff on this one.
The Phil govt is looking for the authentic original copy so I guess it’s taking a long time….I agree with arum that it should be a govt to govt discussion….so it would be faster….
So far this is basically a witch hunt that has been turned into a media circus, and ol BrainSmasher is brandishing his pitchfork the most, and grunting the loudest.
The truth will eventually come out, even if it is ugly. However, do not feel sorry for Pacman, he will be able to pay this off 3 fights tops. Its not like the man doesn’t have hundreds of millions left to make. You know he’s got money under his floorboards in the Jungle as well.