Pacquiao wins latest tax round

MANILA, Philippines – Fresh off capping his storied boxing career with a victory, Sarangani Representative Manny Pacquiao has also found success in the legal arena.

The second division of the Supreme Court (SC) has stopped the Court of Tax Appeals (CTA)  from requiring the boxing champion and his wife, Jinkee, to post a cash bond of P3.29 billion stemming from tax evasion charges for the period between 2008-2009.

In  a session on April 19, the SC  partially granted Pacquiao’s petition to do away with the bond by issuing a writ of injunction against the CTA requirement of the cash bond, the SC said in statement.

“The writ shall remain in effect until the issues aforementioned are settled in a preliminary hearing to be conducted by the CTA, First Division,” the decision read.

The High Court also remanded the case to the CTA’s First Division, which it ordered to conduct a preliminary hearing to “determine whether the dispensation or reduction of the required cash deposit or bond provided provided under Republic Act 1125 is proper to restrain the collection of deficiency taxes assessed against the petitioners.”

If required, the CTA’s First Division shall proceed to compute the amount of the bond in accordance with the guidelines, particularly the provisions of Administrative Matter No. 15-02-01-CTA. In doing so, it should take into account the money already provided by the couple, the SC said.

In particular, the SC pointed out, “The CTA should also consider the claim of [the Pacquiaos] that they already paid a total of P32,196,534.40 deficiency VAT assessed against them. Despite said payment, the Commission on Internal Revenue still assessed them the total amount of P3,298,514,894.35 including the amount assessed as VAT deficiency, plus surcharges, penalties and interest.”

After determining whether the bond is required “the CTA should then to proceed to hear and resolve the petition for review pending before it,” the SC said.

Tax evasion case

In August 2014, the SC granted Pacquiao’s plea to stop the Bureau of Internal Revenue (BIR) from collecting his alleged unpaid taxes from 2008 to 2009. The condition, however, was for Pacquiao to post a P3.29-billion cash bond or P4.98-billion ($110.69 million) surety bond.

The Pacquiaos’ original tax liability was P2.26 billion, but surcharges and penalties had bloated it to P3.29 billion.

A cash bond is paid in cash, while a surety bond is promised to be paid in the future.

Late last year, the couple  asked the SC to reverse the CTA order.

They also asked that the BIR be stopped from confiscating their assets stating that “the premature seizure and liquidation of all of [their] properties” would “destroy them financially.”

Pacquiao declared a net worth at the time of only P1.185 billion, based on his Statement of Assets, Liabilities and Net Worth.

This was before the earnings from his recent victory against Timothy Bradley Jr were added however.

Pacquiao is also in the running in May for a Senate seat where the latest polls show him running in the middle of the pack. – Rappler.com