MANILA – Newly crowned WBA welterweight champion and senator Manny Pacquiao scored a victory outside of the ring – with regard to his tax evasion charges.
The Court of Tax Appeals ordered the Bureau of Internal Revenue to “cease and desist” from collecting deficiency tax assessments for taxable years 2008 and 2009 from Pacquiao and wife Jinkee.
“The CTA conducted hearings it is dispensing the required cash deposit or bond,” the court’s First Division said in a resolution. “Respondent (BIR) is ordered to cease and desist from implementing the Final Decision on Disputed Assessment (FDDA) for lack of merit.”
“The (BIR) is also ordered to lift the warrants of distraint and/or levy and garnishment issued in relation to the same FDDA and deficiency tax assessments pending the final disposition of this case,” added the CTA resolution released Wednesday.
Then under Secretary Kim Henares, the BIR said Pacquiao’s tax liability was P2.26 billion as of 2014 and this went up to P3.29 billion due to surcharges and penalties.
Pacquiao and wife Jinkee then went to CTA where they questioned the assessment of the BIR and the order for them to pay the supposed tax deficiency as the bureau proceeded with the collection process even without an FDDA.
Even without the FDDA, which gives the taxpayer the opportunity to question the final decision of the BIR, the agency issued a tax lien on the properties of Pacquiao and warrants of distraint and levy and garnishment to cover the liability.
Pacquiao appealed the BIR’s order before the CTA and later took the case to the Supreme Court, where they got a favorable ruling.
The high court ordered the tax court to recompute the bond or determine if it could be waived.
Aside from his tax deficiency with the BIR, Pacquiao also reportedly has a $20-million tax debt with the United States’ Internal Revenue Service, preventing him from staging his fights again in that country./PN
