Govt open to compromise with Pacquiao on tax case, says BIR chief Kim Henares

“Nandoon ang panuntunan... Kung papasok s'ya, walang problema... kung 'di s'ya papasok sa panuntunan, magkakaproblema,” Henares noted.

 

Section 204 gives the BIR commissioner the authority to accept a compromise payment, especially when "a reasonable doubt as to the validity of the claim against the taxpayer exists, or the financial position of the taxpayer demonstrates a clear inability to pay the assessed tax."

 

But if the amount involve exceeds P1 million, "the compromise shall be subject to the approval of the Evaluation Board which shall be composed of the Commissioner and the four Deputy Commissioners."

 

After his dramatic boxing comeback in Macau against Mexican-American Brandon Rios last Sunday, Pacquiao faced a more formidable opponent at home – the tax collector – after his bank accounts were supposedly frozen in relation to a P2.2-billion tax case, prompting Pacquiao to hold a surprise press conference last Tuesday. 

 

However, Margaret Guzman, Court of Tax Appeals clerk of court, denied that the CTA First Division – which handles the boxing icon's case – issued such a freeze order. Guzman said the tax court is indeed hearing a tax evasion case against Pacquiao filed by the BIR last August 1, but has not yet issued any order to freeze the boxer's bank accounts.

 

The case stems from a BIR assessment that claimed the Pacquiaos had incurred "deficiency income and value-added tax" from 2008 to 2009, worth P2.2 billion and covered his fights in the US.


It's up to Pacquiao

 

In a separate interview on Unang Balita, Pacquiao's lawyer, Tranquil Salvador, said the ball is now in the boxer's court.

 

"S'yempre una, ang mag-di-desisyon niyan ay ang kliyente, hindi ang abogado. Pangalawa, kung babasahin ang probisyon, kung nakikita ng taxpayer na nag-da-doubt siya sa assessment... Kung duda siya, puwede siyang mag-compromise," he said.

 

However, Salvador maintained that Pacquiao had paid what was due before the US Internal Revenue Service and pleaded with the BIR to avoid double taxation.

 

"Malaki po talaga ang perang involved... higit P2 billion. Tama sinabi ng ahensya na kada-araw parang metro ng taxi. Ito ay pinaghirapan n'ya, kada pawis, dugo, blood money. Ang paniniwala n'ya nagbayad na s'ya, eh. Huwag naman double taxation," he said.

 

"'Yung dokumento, sinasabi diyan na nakita ko na for the last few days na madali lang – magpakita ng dokumnto. Sa parting legal, noon pang simula, sabi ni Manny Pacquiao ang dokumento napakita na sa BIR, 'yung sa IRS. 'Yung sulat ng Top Rank, may attachments, 'di lang ito sulat. 

 

“Kaya kanyang paniwala, na submit n'ya. Ngayon sinasabi wala, sinasabi na 'di orihinal. Ito ay matters of appreciation," he added.

 

Henares said the P2.2 billion tax liabilities was a result of the surcharge payment for not paying on time.

 

"'Yun P2.2 billion na 'yun, kasama na ang surcharge na 50 percent, kasama na ang interes na 20 percent kada taon kaya naging P2.2 billion, pero kung titingnan ang buwis involved P1 billion. Kung 'di kayo nagbabayad ng tama, mag-ka-ka-surcharge, mag-ka-ka-interes. Before you know it, magiging doble... triple," she said.

 

"Lahat ng leeway binigay na namin sa kanya. 'Yun pa nga 'yung isa – kayo na nagsabi – lahat ng element ng tax evasion nandun, 'di namin ginawa. Ang ginawa namin, inassess namin s'ya. Kung titingnan nyo ang nangyari, mabait kami sa kanya," Henares added. – Amanda Fernandez/VS, GMA News