Pacquiao shows US tax document but BIR says it has no proof of payment November 27, 2013 7:37am Tags:

Bureau of Internal Revenue , Manny Pacquiao ( !"ate" 12:20 a#m# Nov# 2$% &'e (olution to Manny Pacquiao)( ta* trouble( i( (im!le, accor"in+ to BIR ,ommi((ioner -im .enare(: (ubmit !roof t'at 'e !ai" 'i( ta*e( in t'e 0n 1e"ne("ay, Pacquiao ('o2e" to 3M4 Ne2( a !ur!orte" co!y of 'i( 2oul" !rove t'at Pacquiao !ai" 'i( an" t'e /#

/ nonre(i"ent alien

income ta* return for t'e year 200$52006# But t'e BIR 'a( "enie" receivin+ any "ocument( t'at / ta*e(, 2'ic' un"er a ta* treaty bet2een t'e P'ili!!ine( /, 2oul" cover Pacquiao)( P'ili!!ine( ta*e( for t'e (ame income#

7.in"i 'o (iya na+5(ubmit n+ co!ie( 8n+ Internal Revenue /ervice "ocument9# In t'e fir(t !lace, :ailan+an ;yun+ co!y niyo 8)yun+ ori+inal9# -un+ ini5imibe(ti+ia'an :ayo, an+ i!a!a:ita niyo ;yan+ ori+inal na ;yan !ero 2alan+ !ina!a:ita,< .enare( (ai" in an intervie2 aire" on 3M4 Ne2( &= on 1e"ne("ay mornin+# By t'e en" of t'e "ay on 1e"ne("ay, Pacquiao 'a" !re(ente" to 3M4 Ne2( 2'at a!!eare" to be a co!y of 'i( / nonre(i"ent alien income ta* return for t'e year 200$52006# &'e BIR 'a( "enie" / ta*e(, 2'ic' un"er a ta* /, 2oul" e*em!t Pacquiao from !ayin+ at lea(t muc' of receivin+ any "ocument( t'at 2oul" !rove t'at Pacquiao !ai" 'i( treaty bet2een t'e P'ili!!ine( an" t'e 'i( P'ili!!ine( ta*e( for t'e (ame income# 3M4 Ne2( i( tryin+ to +et a reaction of t'e BIR to Pacquiao)( / ta* "ocument#

Pacquiao al(o ('o2e" a letter bearin+ t'e letter'ea" of accountin+ firm &anner, Main(tain, Blatt, 3lynn > ?o'n(on 2'ic' Pacquiao (ai" committe" to +ive it( full coo!eration to t'e BIR# Pacquiao (ai" 'e (ubmitte" t'e(e "ocument( to t'e BIR 2'en 'e 2a( a(:e" to (ubmit !roof of 'i( / income an" ta*e( !ai"#

Letter from Top Ran 4ccor"in+ to .enare(, Pacquiao 'a( (ent a "ocument to t'e BIR, but it 2a( a mere letter from 'i( !romoter, &o! Ran: Promotion(# 7;@un+ :a(o na )to 'a( been +oin+ on for t2o year( an" 2e 'ave al2ay( +iven 'im all t'e con(i"eration(A 4n+ tanon+ :o 'an++an+ :ailan 'o :ami ma+'i'intayB /im!le lan+ ;yan, :un+ an"yan tala+a ;yun+ !a!el, e' )"i i!a:ita niyo na,< .enare( note"# But Pacquiao)( la2yer &ranquil /alva"or ar+ue( t'at t'e bo*in+ c'am! 'a( alrea"y turne" over t'e "ocument( from t'e Pacquiao a+ain(t t'e BIR# 71it' all "ue re(!ectA an+ (ulat 'o n+ &o! Ran: ay may attac'ment n+ IR/ !ayment( niya 8Pacquiao9# 4n+ !ani2ala !o namin ay na+!a(a na !o :ami n+ "o:umento,< /alva"or (ai" in a (e!arate !'one intervie2 on Ne2( to 3o# /) Internal Revenue /ervice (IR/%, but can)t ('o2 t'em to t'e me"ia# &'e "ocument( are alrea"y 2it' t'e ,ourt of &a* 4!!eal( 2'ic' i( 'earin+ a ca(e file" by

74t t'i( !oint of time ay na(a 'u(+a"o na !o itoA na(a Curi("iction na n+ ,ourt of &a* 4!!eal(,< 'e a""e", notin+ t'at anot'er 'earin+ on t'e ca(e 2ill be 'el" on December E# Pacquiao, al(o /aran+ani con+re((man, claime" in a !re(( conference &ue("ay t'at 'i( ban: account( 2ere froFen becau(e of 'i( ta* ca(e an" nee"e" to borro2 money to 'el! @olan"a victim(# In a""ition to t'e BIR)( t'reat to (eiFe Pacquiao)( ban: "e!o(it( to cover 'i( P2#25billion ta* liabilitie(, t'e a+ency i( al(o eyein+ t'e national icon)( immen(e real e(tate !ro!ertie(# .enare( (ai" t'e matter i( a (im!le ca(e of ta* collection, an" 'a( a(:e" t2o ban:( 2'ere Pacquiao i( :no2n to 'ave "e!o(it( to 'ol" t'e money in lieu of "elinquent ta* !ayment(# /ur!ri(in+ly, t'e only :no2n P'ili!!ine ban: account( of t'e !ur!orte" billionaire Pacquiao contain only P1#15million# 74n+ i((ue :o lan+, :un+ 2ala (iyan+ !era, 'in"i "a'il (a amin 8BIR9# -a(i an+ !era na na:aremata !ara (a BIR ay P1#1 milyon lan+ 'o# .in"i :o alam :un+ na(aan ;yun+ iban+ !era niya o :un+ meron ba (iyan+ !era o 2ala, !ero 'in"i "a'il (a amin :aya 2ala (iyan+ !era,< .enare( note"# If Pacquiao cannot ('o2 !roof t'at 'e !ai" ta*e( in t'e / in lieu of P'ili!!ine ta*e( ba(e" on 'i( / ta* aut'oritie( a( 2ell#

earnin+( in lucrative Ga( =e+a( fi+'t(, 'e may +et in trouble 2it'

But in a !'one !atc' intervie2, Pacquiao)( !romoter, Bob 4rum, (ai" t'e bo*er 'a( Hreli+iou(lyH !ai" 'i( ta* obli+ation( an" 2'at i( nee"e" i( a certification from t'e IR/ 'a( yet to i((ue t'at certification# 7MannyI( accountant in t'e / 'a( a(:e" IR/ to (en" (uc' certificationA IR/ 'a( yet to (en" nite" /tate() Internal Revenue /ervice (tatin+ t'e ta* !ayment( Pacquiao 'a( ma"e# &'e &o! Ran: !re(i"ent (ai" t'e

certification becau(e t'e bureaucracy i( (o (lo2,< 4rum (ai"# .e al(o (ai" 'i( income in t'o(e t2o year( 2a( not lar+e enou+' to lea" to a ta* liability of over P2 billion# Pacquiao (ai" t'e "e!o(it( in t'e t2o ban:( t'at t'e BIR 2ere able to +arni(' 2ere t'e account( of 'i( 2ife, ?in:ee#

Two!year!o"d tax case In an intervie2 on 3M4 Net2or:)( H nan+ BalitaH on 1e"ne("ay, .enare( (ai" Pacquiao)( ta* ca(e 'a( been !en"in+ for t2o year( an" t'at t'e revenue a+ency 'a( +iven t'e bo*er every o!!ortunity to a""re(( 'i( ta* liability# .enare( (ai" t'e BIR i((ue" a notice of levy to Pacquiao to inform 'im of 'i( ta* liability of P2#2 billion# 4rum (ai" Pacquiao)( ta* !ayment( are ma"e in t'e form of 2it''ol"in+ ta*e( an" via electronic !ayment(#

In a re!ort on 3M4 Ne2() /tate of t'e Nation ne2(ca(t on &ue("ay, 4tty# Paul =ela(co of t'e BIR liti+ation "e!artment (ai" t'ere i( a !en"in+ motion in court to (to! t'e BIR from collectin+ on t'e alle+e" ta* "eficiency of 1B0 2elter2ei+'t c'am!ion Pacquiao# =ela(co (ai" 2'ile t'e motion i( !en"in+ Pacquiao ('oul" (till be able to acce(( 'i( ban: "e!o(it(# 3M4 Ne2() Ivan Mayrina re!orte" t'at t'e BIR "i" i((ue a 2arrant of +arni('ment la(t ?une but only 13 ban:( re(!on"e" to t'e 2arrant# &'e BIR learne" from t2o ban:( t'at Pacquiao 'a( a total of about P1#1 million in "e!o(it(# &'e BIR)( .enare( (ai" t'ey 2rote to 3E ban:( an" only 11 re(!on"e" to (ay t'ere are no Pacquiao active ban: account( 2it' t'em an" t2o (ai" t'e Pacquiao( 'ave account( 2it' t'em# &'e a+ency)( action a+ain(t one of t'e country)( mo(t !o!ular !er(onalitie( i( a vivi" "emon(tration of it( !o2er( un"er t'e la2# 4ccor"in+ to t'e National Internal Revenue ,o"e, t'e BIR ,ommi((ioner or 'er "uly aut'oriFe" re!re(entative can re(ort to (eiFin+ or H"i(traint of +oo"(, c'attel(, or effect(, an" ot'er !er(onal !ro!erty of 2'atever c'aracter, inclu"in+ (toc:( an" ot'er (ecuritie(, "ebt(, cre"it(, ban: account( an" intere(t in an" ri+'t( to !er(onal !ro!erty, an" by levy u!on real !ro!erty an" intere(t in ri+'t( to real !ro!ertyH to collect "elinquent ta*e(# Jor ban: account(, a 2arrant of +arni('ment i( to be (erve" Hu!on t'e ta*!ayer an" u!on t'e !re(i"ent, mana+er, trea(urer or ot'er re(!on(ible officer of t'e ban:#H &'e ban: ('all t'en turn over to t'e BIR ,ommi((ioner H(o muc' of t'e ban: account( a( may be (ufficient to (ati(fy t'e claim of t'e 3overnment#H # $ndreo %a"on&o'Rouche""e (ing"asan')ar" *ictor Rosero'+,'*S'-S')LR. ,/$ 0ews Atty. Mel Sta. Maria is the resident legal analyst of TV5. He teaches at the Ateneo School of Law, and co-hosts the daily program ' elayson' on adyo Sing!o "#.$ %ews &M. &a* i( t'e Hlifebloo" of t'e +overnment#H But if t'e !o2er to ta* i( e*erci(e" 2ron+ly, 2'et'er intentionally or ne+li+ently, it can, a( former / ,'ief ?u(tice ?o'n Mar('all (ai", Hinvolve t'e !o2er to "e(troy#H &'i( H!o2er to "e(troyH, a( furt'er e*!laine" by 2ell5:no2n aut'or ,larence B# ,ar(on, Hcan "efeat an" ren"er u(ele(( t'e !o2er of in"ivi"ual( to create an" !re(erve 2'at t'ey 'ave create"#H In t'e 'an"( of any !o2er5tri!!in+ official, t'e !o2er to collect ta*e( can be a terrible +overnmental 2ea!on to cri!!le a ta*!ayer, to force a con(cientiou( citiFen5obCector to (ubmi((ion an" in"ee" to "e(troy 'i(K'er life# &'e official can even u(e t'e la2 for t'i( abu(ive !ur!o(e# Jor e*am!le, normally, 2'en a !er(on i( imminently to be inCure" or "ama+e", t'at !er(on can +o to court to (ee: atem!orary re(trainin+ or"er (&R0% or an inCunction a+ain(t t'e concerne" !ublic official# .o2ever, t'i( "oe( not a!!ly to collection of ta*e(# /ection 21$ of t'e National Internal Revenue ,o"e !rovi"e( t'at Hno court ('all 'ave t'e aut'ority to +rant an inCunction to re(train t'e collection of national internal revenue ta*, fee or c'ar+e im!o(e" by t'e co"e#H /o if you 2ere a((e((e" t'e 2ron+ ta* an" t'e BIR 2ante" to collect it, no one can (to! t'e inCu(tice# &'en, if it i( later foun" out t'at in"ee" t'ere 2a( a 2ron+ collection, you can (ee: reimbur(ement but, before +oin+ to court, you mu(t fir(t claim a refun" from t'e very office 5 t'e BIR 5 2'ic' committe" t'e inCu(tice# 4l(o, u(ually, +overnment can "e!rive t'e u(e of a !er(on)( !ro!erty only t'rou+' a court or"er, but /ection 207 of t'e National Internal Revenue ,o"e !o2erfully aut'oriFe( t'e BIR ,ommi(ioner, 2it'out court intervention, to H(eiFe an" "i(traint any +oo"(, c'attel( or effect(, an" t'e !er(onal !ro!erty, inclu"in+ (toc:( an" ot'er (ecuritie(, "ebt(, cre"it(, ban: account(, an" intere(t( in an" ri+'t( to !er(onal !ro!erty of (uc' !er(on(H for !ayment of ta*e(# /ection 20$ li:e2i(e !rovi"e( t'at Hban: account( ('all be +arni('e" by (ervin+ a 2arrant of +arni('ment u!on t'e ta*!ayer an" u!on t'e !re(i"ent, mana+er, trea(urer or ot'er re(!on(ible officer of t'e ban:#H

Manny Pacquiao lament( t'at after all t'at 'e 2ent t'rou+' 5 not bein+ 2it' 'i( family for a lon+ time in !re!aration for an international bo*in+ event 2'ic' t'e Jili!ino !eo!le lon+e" to (ee an" (ufferin+ many !'y(ical infliction( t'at, in reality, coul" 'ave been life t'reatenin+, an" t'en ultimately +ivin+ to all of u( t'at muc' nee"e" momentary feelin+ of Coy an" 'o!e after @olan"a 5 'e +et( a 2arrant of "i(traint an" +arni('ment , "e!rivin+ 'im of t'e !ro"uctive u(e of t'e 2ealt' 'e le+itimately create" an" !re(erve" 2it' bloo", (2eat an" tear(# 4llu"in+ to t'e PD4J an" D4P controver(ie(, Manny fru(tratin+ly commente" t'ieve( are better treate"# 1Read: Pacquiao. stunned by assets free&e. hits bac treated better34 at go2ernment: 3Thie2es are

&'e +overnment timin+ 2a( (o ba" it (mac:( of malice an" 'ara((ment, 2'et'er true or merely !erceive", an" re+ar"le(( of 2'et'er t'e Cu(tification +iven i( le+itimate or conCure"# Peo!le 2or: (o 'ar" for t'eir money in or"er to (urvive# 4n" for t'e citiFen(, every cent count(# 1it'out contributin+ to t'e ta*!ayer() creation of 'ar"5earne" 2ealt', t'e +overnment ta:e( (ome or mo(t of it# &'e lea(t +overnment official( can "o in collectin+ ta*e( i( to be (en(itive to t'e feelin+( of ta*!ayer(# 3overnment official( can !erform t'eir "utie( 2it'out !ointle((ly bein+ arro+ant# &o be (ure, Manny ('oul" !ay t'e ri+'t ta*e(# &'at i( 'i( obli+ation# 4n" t'e +overnment 'a( a corre(!on"in+ ri+'t to e*act t'at obli+ation# But if Manny in"ee" alrea"y !ai" t'e ta*e( !ur(uant to t'e &a*5&reaty bet2een t'e P'ili!!ine an" / +overnment( a+ain(t "ouble ta*ation, an" t'e only a"mini(trative matter left 2a( t'e !ro"uction an" (ubmi((ion of t'e nece((ary "ocument( for t'i( !ur!o(e, an" if Manny (ubmitte" !roof( 2'ic' t'e BIR con(i"ere" ina"equate accor"in+ to it( a((e((ment an" !rote(t !roce"ure(, 2a( +arni('ment of 'i( money, or "i(traint of 'i( !ro!erty, !ro!ortionate to t'e claime" ina"equate (ubmi((ionB /'oul" t'i( !roce"ural la!(e, mi(ta:e, ina"equacy be enou+' to 2it''ol" t'e !ro!erty of a !er(on "e!rivin+ 'im of it( !ro"uctive u(eB I( t'i( not relyin+ too muc' on tec'nicalitie( rat'er t'an (ub(tanceB If Manny !ai" an" 'e i( ma"e to !ay a+ain "ue to a mere infraction of a !roce"ure, i( t'i( not inCu(ticeB Ge+al !roce"ure( are meant to 'el! an in"ivi"ual ri+'t a mi(ta:e or an ina"equacy# It cannot be u(e" (im!ly a( a :in" of menu 2'ere official( Cu(t "etermine 2'at i( mi((in+ in t'e li(t an" t'en +o for t'e Cu+ular# In fact, our /u!reme ,ourt 'a" (ai": HIt i( a far better an" more !ru"ent cour(e of action for t'e court to e*cu(e a tec'nical la!(e A to attain t'e en"( of Cu(tice rat'er t'an "i(!o(e of t'e ca(e on tec'nicality an" cau(e a +rave inCu(tice to t'e !artie(, +ivin+ a fal(e im!re((ion of (!ee"y "i(!o(al of ca(e( 2'ile actually re(ultin+ in more "elay, if not a mi(carria+e of Cu(tice#H ( Barnes vs. Padilla, 3R No# 1L07E3 ?une 2$, 200E% In Manny)( ca(e, t'e be(t t'in+ to "o 2a( not for t'e +overnment to be arro+antly a"ver(arial to t'e ta*!ayer but for t'e +overnment to 'ave coor"inate" 2it' t'e ta*!ayer (o t'at it can 'el! 'im !rocure t'e official an" ori+inal "ocument( from t'e Internal Revenue /ervice( (IR/% of t'e nite" /tate( of 4merica# .a" t'at been "one, everyt'in+ mi+'t 'ave been (olve"# 4n" if after e*aminin+ t'e(e ori+inal "ocument(, t'e BIR "etermine( t'at no ta*e( 2ere !ai" or t'ere 2a( an ina"equacy of !ayment, t'en t'at)( t'e time notice of !ayment ('oul" be ma"e# &'i( i( ba(ic an" elementary "ue !roce((# /!ecial treatment for MannyB Not at all# In fact, t'at i( t'e :in" of 'el!ful (ervice 4GG citiFen( mu(t e*!ect from t'e BIR an" 2'ic' t'e BIR ('oul" an" ou+'t to e*ten" to all 2it'out e*ce!tion(# In(tea" of an a"ver(arial a!!roac', t'e "irection mu(t be one of "e"icate" (ervice to aut'entically 'el! an" a((i(t !eo!le in t'eir ta* !roblem(# Difficult to un"erta:e con(i"erin+ t'at t'ere may be 'un"re"( of !roblematic ta*!ayer(B 1ell, BIR official( Cu(t 'ave to "eal 2it' t'at "ifficulty an" !rovi"e t'at :in" of 'el!ful (ervice# 4fter all, t'ey are (u!!o(e" to be !ublic (ervant( 5 (ervant( of t'e !eo!le, an" not t'eir tormentor(#