Pacman not being singled out – Palace

MANILA, Philippines - Boxing champion and Sarangani Rep. Manny Pacquiao is not being singled out or politically harassed, contrary to his claims, Malacañang said yesterday.

Deputy presidential spokesperson Abigail Valte said there is no reason to harass Pacquiao since the Bureau of Internal Revenue (BIR) and other collecting agencies such as the Bureau of Customs had been filing charges every other week against tax evaders and smugglers, respectively.

“As the President said, why would it be harassment? As (BIR) Commissioner (Kim) Henares has said, Congressman Pacquiao was given ample time, more than ample time, to comply with, not just the summons of the BIR, but (also) with other requests for the submission of documentation,” Valte said.

Valte said Pacquiao is welcome to pay a courtesy call on President Aquino in Malacañang but he has to deal with the BIR when it comes to his tax case.

Valte noted reports that Pacquiao is considering moving to the opposition following his tax woes.

“He (Pacquiao) remains in the majority. Because remember that his political party is UNA (United Nationalist Alliance) and UNA in the House (of Representatives) is aligned with the majority,” Valte said in a press briefing when asked if Pacquiao would be welcome to visit Malacañang, being an ally.

Valte said there was no request for a call but “that will have to be processed in the same way that we process all requests” for courtesy calls.

Asked if Pacquiao would be welcome, Valte remarked: “Bakit naman po hindi? Why not?”

Pacquiao is said to be thinking of transferring to the opposition bloc in the House of Representatives led by San Juan Rep. Ronaldo Zamora.

Valte noted the statements made by You Against Corruption and Poverty party-list Rep. Carol Jane Lopez, who said Pacquiao has expressed interest in joining the opposition bloc. She said the interest heightened during the tax case.

Lopez, who is also from General Santos City and is reportedly one of Pacquiao’s closest friends, said Pacquiao felt he was being politically harassed.

Lopez revealed that Pacquiao has hired “new accountants and lawyers.”

It is not clear if Pacquiao is preparing to throw in the towel and settle his case, or slug it out with Henares.  

Speaker Feliciano Belmonte Jr., for his part, advised Pacquiao to just provide all the documents requested by the BIR that would prove that he has paid all the necessary taxes from his income.

“Why does he not just show his US tax receipts to the BIR, was it that hard to do?” he asked.

Belmonte said he would be sorry to lose Pacquiao if he decides to join the opposition bloc in the chamber.

Dasmariñas Rep. Elpidio Barzaga Jr., also urged Pacquiao to settle his tax case and be the BIR’s poster boy again.

Barzaga said he supports the government’s call for the boxing icon to set an example on tax compliance.

“I think the BIR has found enough ground to run after him. So he should settle his tax issues with the agency,” Barzaga said.

He said being pictured as a billionaire boxing champion-lawmaker who is not able to pay the correct amount of taxes is not in Pacquiao’s interest.

Barzaga added that more Filipinos would idolize the boxing icon if he becomes the No. 1 individual taxpayer again.

Pacquiao topped BIR’s list of individual taxpayers in 2008 with income tax payments of more than P125 million. He slid in the list since then, ranking only 135th in 2010 with payments of only P9.2 million on earnings amounting to more than P500 million.

The top taxpayer in 2010 was businessman Vicente Lao, who paid P75 million on earnings of P235 million, less than half of what the BIR claimed Pacquiao pocketed.

Barzaga, a practicing accountant-lawyer for many years before seeking public office, said he agreed with Zamora that their colleague’s tax case is more an issue of documentation than a large amount of unpaid income taxes.

Barzaga said Pacquiao’s earnings are mostly covered by documents like contracts, tax returns in the United States and withholding tax statements for his commercial endorsements here. It would be a matter of collating all those documents and reconciling the boxing champion’s tax payments and the BIR’s assessment of his alleged tax obligations, he said.

Barzaga pointed out that this is where the possibility of settlement or compromise comes in. He noted that nearly half of the P2.2 billion the BIR wants Pacquiao and wife Jinkee to pay accounts for penalties and surcharges.

Zamora has advised Pacquiao to get “a good lawyer and a good accountant, and the reason is many of his problems are really documentary in character.”

“If Cong. Pacquiao wants to talk to anyone of us... we’ll be glad to help him, but basically I think it’s documentary more than anything else. In the end I’m not certain that any additional amounts will be due from him,” he said.  – Jess Diaz, Paolo Romero