• Palace rejects tax break for Pacquiao

    24

    Malacañang on Saturday said granting special tax privileges to world boxing champion and Sarangani Rep. Emmanuel “Manny” Pacquiao at this time will only raise more questions and should be deferred for further consultation with the internal revenue bureau.

    Reacting to a proposal by Sen. Aquilino Pimentel 3rd to grant tax incentives to the boxing hero, also known locally as the National Fist, before he faces the most anticipated fight of his career with the equally formidable Floyd Mayweather Jr. on May 2, palace deputy spokesperson Abigail Valte said giving him special tax treatment could create inequality in the policy application for athletes.

    “There will be questions on ‘yung paano ho ‘yung mga ibang atleta na (how about the other athletes?) they also go out and compete, they bear the flag, and kasama din po ba sila kung sakali, lalo ‘yung mga iba nating (are they also going to be given the same privilege, especially our) professional athletes?” Valte said in an interview over state-run Radyo ng Bayan.

    Pimentel’s proposal, which may be dismissed readily as being “selective,” will have to be studied not only by Congress but by the Bureau of Internal Revenue (BIR) Commissioner Kim Henares herself, Valte said.

    “We’ll defer to Commissioner Henares for inputs on that, because I understand that it’s a resolution to be filed by Senator Pimentel. And we’ll leave it also to our fellow workers in Congress to deliberate on that particular proposal,” she added.

    “And I’m quite certain that the BIR will participate if they are asked to sit in as resource persons,” she stressed.

    Earlier, Pimentel said he intends to file a measure seeking to exempt Pacquiao’s May 2 earnings from tax as the country’s “tribute” to him.

    Pacquiao is reportedly eyeing a take home pay of at least $120 million, or roughly P5 billion, for the Mayweather bout, the biggest fight in money terms.

    Analysts said the fight may rake in a whopping $300 million at the very least.

    Adding to Malacanang’s concern is the fact that Pacquiao is still embroiled in a P3.2-billion tax case with the BIR in connection with his earnings from previous matches.

    But Pimentel argued that the tax incentive is a way of recognizing the eight-division champion’s contributions in promoting the country and that such privilege will further inspire him to win the biggest fight of his career, which should bring more honor to his country.

    Pimentel, who also hails from Mindanao, also explained that a special tax exemption is one way the government could give back to his fellow lawmaker the generosity he has been extending to his constituents.

    For Valte, however, the Lower House should cast a deeper look into the possible ramifications of the proposal once approved.

    “In any case, that will have to be discussed by Congress because sila rin naman po ‘yung nagsasabatas nung mga tax, (they’re also the ones legislating the tax bills,” she pointed out.

    Pampanga Representative Yeng Guiao has also expressed opposition to Pimentel’s proposal, saying that Pacquiao himself is unlikely to accept such an offer.

    Guiao said that a tax exemption is not a necessity for an athlete as blessed as Pacquiao.

    “He’s been blessed, he’s been very lucky to earn that kind of money,” the lawmaker who is also the head coach of basketball team Rain or Shine, said in an earlier interview.

    Share.
    loading...
    Loading...

    Please follow our commenting guidelines.

    24 Comments

    1. Clem Asencio on

      I’m a member of team pacquiao here in the US. Manny says, if only given a choice, I would want to pay my taxes in the Philippines as i would only require to pay 32% compared to US’ 40%. But that is not the case here, IRS would automatically get its share the moment Manny gets his paycheck. He also says it would be a big honor for him if given a tax holiday for this fight so I could spend this amount to the poor Pinoys which he has done many times already. Manny is such a generous hardworking humble fellow and he deserves this tax break.

    2. nakaka awa naman ang mga tao sa pinas! bayad ng bayad ng buwis pero wala ka namang nakikitang ginagawa ang gobyerno. Pag may ginawa naman tulad ng hi way babayaran pa rin sa toll gate! hays! puro kabig…….saka nasan na nga pala yung Yolanda relief ng ibang bansa? nawala na? naglaho na ba?

    3. Bakit ganoon ang BIR? Ayon kay Kim Henare magbabayad si Pacman ng buis sa kanyang kikitain sa USA sa susunod na Mayo 2,2015 at on time pa. Ito ay kikitain
      sa taong ito (2015) at ang nakatakdang pagbabayad ng buis ay hanggang sa April 15,2016. Si Pacman ay kikita ng gross income, hindi na ba pueding aawasin ang kanyang mga nagustos niya sa preparation ng kanyang laban bago makamit ang kanyang gross income? Yong ibinayad niya sa pasahe,yong ibanayad niya sa Trainer,yong ibabayad niya sa spariring partners, yong share niya kay Bob Arum at
      marami pang mga gastusin sa preparation bago ang laban?

      Ang buis sa USA ay kaagad inaawas ang buis mula sa gross income niya. at ang matatanggap niya ay doon naman aawasin ang para kay Bab Arum, kay Freddy Roach, yong bayad sa mga sparring partners sa USA, at marami pang mga aawasin.
      Hindi ko maintindihan kung papano kinumpute ni Kim Henares ang dapat na bayaran ni Pacman sa BIR at sumapit siya sa mahigit na 3 billiong pesong atraso ni Pacman. Tama si Pacman, use yor common sense.
      Kung si Pacman ay lalaban sa middle east na libre ang buis hahabol ba si miss Henares? Kung oo huwag na idadaon ang laban sa middle east particularly sa Dabai. Common sense. kung mayroon pang natitirang common sense ng mga mga taga BIR.

    4. The proposal for a tax break for Pacquiao is crazy and meaningless. Why? If he fights in the US, the IRS most probably will require him to pay 100% of the tax (40% of his prize). Under the tax treaty between US & Phils., Pacquiao can pay tax either in the US or the Phils. But do you think US will agree that Pacquiao pays his taxes in the Phils. when he draw his prize from tickets paid by Americans & fans from other countries who watched the fight live in the US? The IRS is the most competent US agency and therefore it is unlikely it is remiss in seeing to it that Pacquiao pays his taxes. Therefore there is no substance in the BIIR’s allegation that Pacquiao evaded taxes in his fights in the US. Also, under the tax treaty it is the obligation of the BIR to secure tax payment records of Pacquiao which are easily secured from its counterpart, the IRS.

      BIR should re-visit the tax treaty so it will not embarrassed itself.

    5. I think having a debate about Manny’s soon to be earned income on his scheduled fight with Mayweather is very untimely at this point in time. The egg has not yet been hatched. Arguing tax issues to our nationally acclaimed treasure in Philippine sports in the person of Congressman Emmanuel D. Pacquiao is very unethical. Kim Henares knows his job very well. Why not set aside those sensitive topics after the fight. Why this particular issue comes out every time Manny has a fight, instead of inspiring comments, discouraging issues embrace Pacquiao, headlining our local daily tabloids. If it’s in our law that Manny should be imposed double taxation, so be it. But please , Mr. Kim Henares do it in a proper time after the fight, with all his earnings properly accounted .

    6. Tanong lang po, ang mga income ba ninyo ay galing sa mga suntok ng kalaban? If not there is no way you can compare yourself to Manny. Yes it’s right to pay your taxes but not to the extent na bayad ka na sa u.s. magbabayad ka pa rin sa pinas. Just imagine the BIR was asking more than 3billion pesos in dues for his settlement with the said agency. Come on man, those money were earned sacrificing himself and nearly got killed with KO he suffered from Marquez. 3 billion OMG, daming ibubulsa na naman ng mga kurakot.

    7. Payag ako sa 1 kundisyon na hindi na siya at mga pamilya nya (3rd degree) na tumakbo kahit anong posisyon sa gobyerno.

    8. What did the Philippines do to deserve billions of his hard earned money. Hard earned money from the US. We pay income tax because we use the country’s infrastructure, government resources, etc.. That’s why the US taxes his income there because he earned it there. The Philippines did not contribute to earn any of it so why should they take part in it. It’s called legalized stealing. OFWs do not pay taxes from income earned outside the Philippines.

    9. What is really in the mind of koko? Maybe because he’s guilty that as a politician they likewise earn billions without the need to pay taxes? I recall an old man telling me not to enter politics in spite of good intentions because according to him,in doing so my subconscious mind is preparing me to be corrupt.

    10. Sorry but i missed a little bit. Abigail valte, i would also get rid of her as she didnt say no, she said lets talk abiout it later. What is there to talk about. The philippines is a 3rd world country. Its poor are amongst the poorest in the world & she has to think & discuss if a mulit peso billionaire should be free of income taxes. To me its almost like treason. Its at the least a crime against the poor. To even consider a suggestion like that to me would disqualify them from being a part of my government.

    11. Norberto Manuel on

      It will be a big billion amount of taxes that will belong to the pork barrel fund.If ever the tax exemption privilege is granted, put it in foundations or charitable institutions for proper disposal.

    12. Koko should have his kokote examined. The principle of taxation is for the big earners to share their largesse with the rest of the people. Hindi sapat na mabigyan ng pride ang bayan kung ang billion na kita ni Pacquiao ay sasarilinin lang niya. Kahit sarilinin na niya ang pride basta magbayad lang siya ayon sa NIRC.

      • He cannot own that because it will be taxed already in The U. S. whatever the philippines get is the difference between the U.S. and Philippine tax rate if the philippines tax rate is higher. His tax case in the philippines is due to pure technicality.

    13. Virgilio C. Gonzales on

      I immigrated to the USA from the Philippines in September, 1968. I became an American citizen in 1975.
      How could the Filipino politicians even think of exempting Pacquiao from paying taxes? The hardworking Filipinos pay their taxes. Many of them could not even make the ends meet. Pacquiao makes hundreds of million dollars, and these Filipino politicians want to exempt him from paying tax on his coming bout.

      • Andrew Picana on

        I agree but…let me ask you a question. While working in the USA, do you file 2 income tax returns? One for IRS and another for BIR? If not, then you are exempt in the Phils. because you don’t reside and earn income there. Uncle Sam is very clear. If you make money in his country, then you should pay tax. Therefore, Pacquiao’s earnings in the USA is taxable in the USA. Because Manny resides in the Phils. he will file income tax return with the BIR. His earnings from the USA is also taxable to a certain extent but not all. He can claim tax credit for most of the taxes that he already paid in the USA.

      • First off, it would be good for the Philippines to do this to athletes, like paquiao, that contributed big to “put this country on the map”, per say. He is by far the successful ambassador of the Philippines since the US military left. You just can’t advertise philippines using local actress or actors for tourist to come visit. There has to be a phenomenon to cultivate interest, and Pacquiao did that. Right now, everytime Pacquiao move, even made up story like what happened to Orthon, it creates ripples around the whole world. I was in Colombia South America 3 mos ago, when they found out Im from here, they said they love Pacquaio, and would like to visit PI. So, they should give special tax exception to Pacquaio. He did a lot for this country, I am proud of him. US Army Retired, here.

      • Hey dude you dont know what you are talking about. you are out of your brain. paqman earned those pennies here in the USA. not in the phils.He already paid taxes here in the US and automatic deducted.pacman is also giving some millions to the poors.How about those politicians and crooks in the phils,where did they get all their millions, isn’t it from the government funds. Most of them are corrupt. during or before elections they spent millions of pesos, how did they get back their money, their salary is not even hundred k a month.Pacman earned those money in a nice way.

    14. Maria De Leon on

      Tax break should be given to the average working class Filipinos, not to a billionaire like Pacquiao.

      • Exempt pacman for the tax. And he will just share the prize to the poor. The government will just corrupt the money. Common sense

    15. Abnoy-noyingski on

      Kahit ano ag sabihin ninyo, pasensiya na sa mga ibang atleta, ibang iba si Pacquiao, worldwide ipinakilala niya ang Pilipinas – ibag iba. Ibag iba din naman iting administration na ito sobra sa pagkakaiba, pagdating sa pera – puro mukhag pera, wala nga naman silang paghahatian! Mga buwisit ng lipunan, dapat 2016 na para magkaalaman na….

      • Korek ka dyan sir. At ito namang mga politikong ito maglalaban pa lang ating Pambansang Kamao para sa bayan ay TAXES kaagad ang topic ng usapan. Anubayan. Wala na nga kayong ginawang tulong kundi palakpak sasakay pa sa isyu! Magbago na kayo!!!

    16. Kapag kinunan ng malaking buwis si Pacquio ay nanakawin lang yan ng mga magnanakaw sa Malacanan at liberal party.