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‘Paying US taxes not Pacquiao’s duty’

Manny Pacquiao

By JUN RAMIREZ

Manila, Philippines – Tax experts and veteran officials from the Bureau of Internal Revenue (BIR) opined yesterday that it is not the duty of boxing icon Manny Paquiao to file and pay income tax in the United States out of his earnings from boxing there.

They said that responsibility lies with his promoter, Top Rank Promotions owned by Bob Arum, under the US withholding tax system upon which the withholding tax system provision in the Internal Revenue Code (NIRC) of the Philippines was copied.

The tax experts said that under the scheme, Pacquiao gets his cash prize net of tax and that the same formula is applied when Paquiao receives his pay for endorsing commercial products and his share from the pay-per view proceeds of his boxing fights.

In case of deficits in the payment of the final withholding tax, they said Bob Arum’s obligation is to remit the deficiency to the Internal Revenue Service (IRS) of the US and later he should ask Pacquiao to reimburse it because the solon is considered non-resident alien.

They said, however, it would be a different issue if Pacquiao is a holder of a dual citizenship and engaged in business or trade in the US.

The tax experts issued the comment following news reports that the IRS is going after Pacquiao for the unpaid taxes out of his boxing matches in the US although his camp denied the report.

They said Pacquiao’s situation could be likened to international artists performing in the country.

They said tax liabilities of Madonna, Justin Bieber and other foreign singers who visited the country were paid by their local organizers like Ovation Productions and not by the entertainers themselves.

comments
  • EnriqueM

    The problem is, as congressman, Manny did not bother to understand his responsibility as a taxpayer and mostly relied on “trusted” advisors. As such, he becomes mostly gullible and easy prey from those who want to bilk some money from his coffers.

  • EnriqueM

    The problem is, as congressman, Manny did not bother to understand his responsibility as a taxpayer and mostly relied on “trusted” advisors. As such, he becomes mostly gullible and easy prey from those who want to bilk some money from his coffers.