MANILA – After dominating American boxer Chris Algieri in Macau, boxing champion and Sarangani Rep. Manny Pacquiao will face a familiar foe when he returns to the Philippines: taxes.
Pacquiao has had issues with the Bureau of Internal Revenue (BIR) over alleged unpaid taxes from his earnings from previous fights and endorsements in the US.
According to BIR Commissioner Kim Henares, Pacquiao’s earnings from his most recent bout are also taxable because Macau has a lower income tax rate.
Macau has a top tax rate of 12 percent compared to the top tax rate of nearly 40 percent in the US, where most of Pacquiao's fights were held before last year's bout against Brandon Rios.
“Kung sa Macau siya lumaban, I would think na mayroon [siyang babayarang buwis] kasi mas mababa ‘yung income tax rate nila,” Henares told dzMM.
Pacquiao reportedly made more than $20 million (around P900 million) for the Algieri fight.
Henares said that if, for instance, Pacquiao made at least P1 billion for the fight, he will have to pay the Philippine tax rate of 32 percent, or P320 million, in taxes.
If Pacquiao already paid P100 million in Macau, he will still have to pay the remaining balance of P220 million to the BIR.
Pacquiao’s camp will have to declare this amount and pay before the April 15, 2015 deadline.
The boxer’s victory on Sunday again brought recognition to the country, with Henares saying she is happy because the fight will also contribute to the BIR’s collections.
“Masaya ako dahil magko-contribute siya sa ekonomiya ng Pilipinas, hindi naman sa akin. Kasi ‘yung lahat ng koleksyon wala naman akong matatanggap doon,” she said.
Pacquiao is currently facing a tax liability case amounting to an estimated P3 billion.
Pacquiao’s accountants have been criticized for the boxing champ’s tax woes, which hounded him since last year.
“Ang laki-laki naman ng kinikita niya, siguro naman dapat mag-hire din siya ng tamang tao na professional, na makakatulong sa kanya at hindi lang ‘yung mga taong nagte-take advantage sa kanya at walang binibigay na tamang serbisyo,” she said. - abs-cbnnews.com
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