Jejomar M. Concepcion December 9, 2013
AC09301 Prof. Bethlehem B. Moneza
A Simple Commentary on Manny Pacquiao‘s Tax Evasion Issue
Only a couple of days after his convincing victory over Brandon Rios in Macau, Manny
Pacquiao went through a massive setback when the Bureau of Internal Revenue (BIR)
spearheaded by Commissioner Kim Henares issued a freeze order to his bank accounts.
On a media conference last November 26, 2013 Manny said that the BIR has filed a case
on him for 2.2 Billion Pesos tax evasion case for nothing. He furthered that the amount he
earned in every single fight is a product of blood, sweat and hardships not from DAP or
PDAF and went on saying that he is not a thief.
According to the reports of Manila Bulletin, the freeze order has already been filed two
weeks before Manny’s fight in Macau. However, it was only announced on the said
conference, two days after Pacquiao’s forceful triumph against Rios. Furthermore, the
Manila Bulletin reported that the alleged tax evasion case arose when Pacquiao’s
accountant failed to explain the multi-million taxes obtained by the U.S. Internal Revenue
Service (IRS) from his prize winnings in 2009 and his income tax returns (ITR). For the
years 2008 and 2009, the BIR wants Pacquiao to pay $17.48 million and $32.6 million,
respectively. From 17.48 million and 32.6 million, the BIR is now going after Manny
Pacquiao for an amount almost a couple of times larger than what he originally owes, 2.2
Billion Pesos.
But do you really think Manny has to pay the said gigantic amount of tax? Let’s analyze it
little by little. Based on Citizenship, Manny is classified as a resident citizen of the
Philippines and according to Section 24 (A) of R.A. 8424 or otherwise known as the
National Internal Revenue Code of the Philippines, (NIRC), A citizen of the Philippines
residing therein is taxable on all income derived from sources within and without the
Philippines; This provision clearly explain that Manny Pacquiao’s earning from his fight
abroad should also be taxed by the Philippine Taxing Authorities.
In an interview with Top Rank promoter Bob Arum he said that Filipino authorities
confirmed that Manny is not required to pay double tax [for it is against the Constitution].
Moreover, he said that if Manny paid U.S. taxes for fights and endorsements that occurred
on US soil, he is not required to pay double taxes in the Philippines. But, technically what
