Key House members not keen on tax exemption for boxing champ Rep. Pacquiao

House Ways and Means committee chairman Marikina City Rep. Romero Quimbo, a lawyer, said the tax exemption eyed for Pacquiao will raise questions about fairness in the application of the law.

Quimbo also said the tax exemption should instead be granted to policemen, soldiers and other ordinary workers who help maintain the peace and order in the country.

 

“[While] we truly idolize Manny and laud his efforts for the country… there are other hardworking Filipinos, aside from athletes, who deserve more tax breaks than athletes. They are the soldiers and policemen who put their lives on the line. Unahin muna natin ang mga kawani ng gobyerno na makakuha ng tax break bago ang mga mayayaman,” Quimbo said.

 

Deputy Speaker Giorgidi Aggabao, also a lawyer, has a technical view. He said the proposal of Senator Aquilino “Koko” Pimentel to grant tax exemption to Pacquiao will pointless because the Sarangani congressman no longer has to pay taxes to the Bureau of Internal Revenue (BIR) once he is taxed by the United States Internal Revenue Service (IRS). 

 

“Manny Pacquiao would pay his taxes in the US primarily, because that is the situs of taxation. Now, that tax paid to the U.S. government would be credited against his tax  liability to the Philippine government. Since the tax that Manny would be paying abroad is higher than what he would owe the BIR, it stands to reason that Manny would not owe the BIR anything,” he explained.

 

Pimentel’s plan to file a bill exempting Pacquiao from paying taxes has been opposed by Senators Francis Escudero and Ralph Recto, who said the measure is unnecessary since the boxer will be taxed by the IRS.

 

Malacañang, meanwhile, said granting a tax exemption to Pacquiao will only raise questions on whether other professional athletes should also be exempted from paying taxes.

 

For his part, House Deputy Majority Leader and Quezon City Rep. Bolet Banal expressed confidence Pacquiao can comply with tax laws both in the Philippines and abroad. 

 

“Whether it's the money man (Mayweather) or the tax man (BIR), I think Cong. Pacquiao can fend for himself,” he said.

 

The much-anticipated mega-fight between Pacquiao and Mayweather at the MGM Grand in Las Vegas, Nevada, is touted as the biggest and richest fight in boxing history, with the estimated revenue ranging anywhere from $250 million to $400 million.

 

Pacquiao is expected to get the richest prize of his career, with some $100 million (P4.4 billion) guaranteed for the match.

 

With a net worth of P1.4 billion in 2013, the eight-division world boxing champ holds the distinction of being the richest House member and its lone billionaire.  — ELR, GMA News