Tax levy on Pacman’s assets in US lifted

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The United States (US) Internal Revenue Service (IRS) has lifted the tax lien on boxing champion Manny Pacquiao’s financial assets and properties in the US.

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A tax lien authorizes the IRS to seize the assets of a taxpayer who has unpaid back taxes.

Pacquiao’s personal and business adviser Mike Koncz forwarded the statement from their US tax lawyer Steven Toscher of Hochman Salkin Retting Toscher & Perez PC to the media on Sunday.

“There have been numerous public reports about tax issues involving boxing superstar Manny Pacquiao,” the statement said. “Many of those reports have contained inaccurate and misleading information and were triggered by the filing of a federal tax lien. The lien is in the process of being released by the Internal Revenue Service.”

“Manny’s US tax counsel has been working with the IRS and Manny’s counsel David Marroso stated that the IRS has abated the tax assessments against Manny which triggered the filing of the lien and has released or is in the process of releasing all federal tax liens and levies.”

“Mr. Toscher stated that Manny is serious about his tax obligations and will continue to work with the IRS to resolve any outstanding tax issues,” the statement said.

“The attorneys emphasized that matters regarding Manny’s finances and tax matters are confidential, and both the IRS and his advisors have respected his privacy and continue to focus their attention on the facts, not misleading rumors perpetuated by others.”

The IRS had given Pacquiao a notice of federal tax lien, claiming he failed to pay $18 million in income taxes from 2006 to 2010.

Pacquiao’s American tax lawyers questioned the lien.

“Our team of lawyers and bunch of accountants in America have exerted a total effort to lift the levy and finally no more freeze on Manny’s bank accounts and properties in the US,” Koncz told The Manila Times in a phone interview. “Manny is a good person and everything is fine now.”

“We’re making every effort to resolve whatever other taxes he may have in America too.”

Pacquiao and the Bureau of Internal Revenue (BIR) here in the Philippines are waiting for the final resolution of the Court of Tax Appeals regarding the writ of garnishment issued by the BIR to some of Pacquiao’s bank accounts and local properties.

The BIR issued the writ of garnishment to the Saranggani representative for allegedly failing to settle his tax debts.

Pacquiao has denied he has unpaid taxes, saying the issue is politically motivated.

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2 Comments

  1. The news article which appeared in this newspaper on December 11, 2013, “WHO IS AFRAID OF DUNKIN’ DONUTS?” by Columnist Emeterio Sd. Perez, mentioned that GOLDEN DONUTS, INC. (GDI), the local franchise holder of the American food brand “DUNKIN’ DONUTS”, has unpaid tax deficiency of P1.5 billion for year 2007, but BIR Commissioner Kim Henares refused to either collect it or sue the company for alleged fraud for under-declaring its revenues in the income tax return.

    Maybe Congressman Manny Pacquiao’s claim that the harsh action against him by BIR Commissioner Henares is politically motivated is true.

    Commissioner Henares’s refusal to collect GDI’s huge unpaid tax obligation and failure to charge the company for fraudulent act are obvious confirmation of former ABS-CBN correspondent, now Inquirer Radio newscaster, IRA PANGANIBAN’s open letter to the Commissioner on her arbitrary choice in the personalities she chooses to prosecute.

    I presume that Quezon City BIR Regional Director Jonas Amora’s statement “we intend to vigorously pursue the collection of unpaid taxes and we will bring them to court if necessary” referring to BIR’s drive on delinquent accounts, (Manila Bulletin, Dec. 10, 2013), is sincere.

    GDI’s unpaid tax obligation of P1.5 billion pertains to year 2007, so it is a delinquent account. But why did the BIR not enforce collection of it, and sue the company for under-declaring its revenues in the income tax return?

    DUNKIN’ DONUTS local seller….a TAX EVADER?

  2. If the US tax levy against the bank deposits and other US properties of Pacquiao is lifted then the Writ of Garnishment filed by Henares against Pacquiao now pending in the Court of Tax Appeals has no leg to stand on.

    Admittedly, I am not a tax expert but what I do know is that taxation strictly follows situs of the subject properties. Otherwise imposing taxes on Pacquiao’s US properties by BIR would constitute double taxation. Correct me if I am wrong and if there are any bloggers who are tax experts, your post is most welcome.