• Pacquiao owes US taxman $18M

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    Sarangani Rep. Manny Pacquiao receives a commendation from the House of Representatives for his victory over American Brandon Rios. The boxing champ was lauded by his peers amid reports he still has tax debts in the United States. PHOTO BY MIGUEL DE GUZMAN

    Sarangani Rep. Manny Pacquiao receives a commendation from the House of Representatives for his victory over American Brandon Rios. The boxing champ was lauded by his peers amid reports he still has tax debts in the United States. PHOTO BY MIGUEL DE GUZMAN

    The tax woes of boxing champion Manny Pacquiao continue to pile up.

    Pacquiao still owes the United States Internal Revenue Service (IRS) $18.3 million (about P800 million) in unpaid taxes over years 2006 to 2010, according to a TMZ Sports article.

    TMZ said Pacquiao failed to settle his taxes for three big fights—against Oscar dela Hoya in 2008, and Ricky Hatton and Miguel Cotto in 2009. He also allegedly did not settle his yearly tax liability in those five years.

    Based on IRS documents retrieved by the TMZ, Pacquiao owed the IRS $1.2 million for 2006, $2 million for 2007, $2.9 million for 2008, $8 million for 2009 and $4.2 million for 2010.

    The Bureau of Internal Revenue (BIR) froze the bank accounts of the Sarangani lawmaker and garnished his assets to force him into paying P2.2 billion in tax liabilities, in the absence of documents that he paid taxes in the United States (US).

    Pacquiao’s camp has assured the BIR it will submit the documents to prove that he paid his taxes in the US.

    The Court of Appeals has prohibited Pacquiao and BIR officials from further discussing the issue.

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    7 Comments

    1. Interesting how legitimate sports news outlet like ESPN has not picked-up on this report by TMZ.

    2. TMZ will not publish nor disclose the source of their documents or information. The actual TMZ report stated that they acquired documents but did say it came from the IRS. This reporter now is stating it came from the IRS. I am US based and have worked with foreign investors. I know for a fact that when a non-resident sells their property, the escrow is instructed to fill-up the FIRTA form and deduct taxes before any of the proceeds are released. Top Rank is responsible to do that. This is a hatchet job where PNoy’s popularity went down when the BIR issue came out. Knowing that ABS-CBN owes a debt of gratitude to the Aquino family for getting ABS-CBN back from Cory Aquino after the departure of Marcos. It is not beyond ones imagination that they have something to do with it. TFC has their contacts with TMZ to get this done. They are also the first to report that Pacquaio is a green card holder yet careful in their report as not to make it a certainty.

    3. The U.S. IRS is very strict and they would never allow tax liabilities to go over 1 year what more to pile up over 5 years.

      The IRS would have garnished the assets of Pacquiao in the U.S. by now, if the TMZ report is true.

    4. Rome your response seems accurate & i agree with you but if pac had given the correct documents to the bir & showed he had paid this wouldnt be an issue. Its strange that pac had his last fight in china because he said he didnt want to pay so much tax. Then pac said people are trying to smear my name. What he should have done is produce the correct documents to the bir & i know he has top accountants & lawyers working for him so i think he is pulling a fast one. Someone has leaked this information to the bir & i think he cant produce the documents as he does owe it. Lets see who is right. Its also strange why you blindly take pacquiaos side over these others could it be only because he is a pinoy & a famous pinoy.

    5. Mr. Arum, Manny’s promoter is responsible for payment of all his tax liabilities after the fight, after all the prize money and pay per view money were in. As I understand this from Mr. Arum, 30% of this amount is sent to the IRS to pay Manny’s taxes. If there was any discrepancy, Mr. Arum will be notified by the IRS., and in turn will notify Manny, but we have not heard from Manny’s promoter relative to the TMZ news account, therefore the public need to wait for the real story to come out.

    6. I would not give any credence to any IRS documents purportedly gathered by TMZ. Unless an IRS document is officially certified by the IRS, it is just a piece of paper not worth anything nor to be accepted as genuine as to itself or its contents. The only time such documents will be certified and released by the IRS is with the permission or authorization of the taxpayer (Pacquiao) by his own request or legal representative or by Court order. Without these circumstances, any IRS documents is spurious. In using the words “gathered”, it is possible that TMZ made some assumptions, extrapolations and calculations to arrive at their numbers but by no means are they taken to be taken as true.

      • Agreed. But what is sad to note is that Pacquiao’s camp is not denying this. What they are saying is that negotiation is going on and that the amount mentioned by TMZ is just too much.