Pacman willing to settle tax deficiency on Porsche

A top Customs official revealed yesterday boxing champion Manny “Pacman” Pacquiao has expressed willingness to settle any tax deficiency arising from the importation of the Porsche sports utility vehicle (SUV) bought in the US.

According to Bureau of Customs’ Post Entry Audit Group (PEAG) director Jun Ligon, Pacquiao had made representations through his lawyer expressing the effort to settle any tax obligation arising from the importation of the vehicle.

Ligon said lawyer Jeng Gacal appeared before his office to relay Pacquiao’s decision to settle any tax payments for the importation of the Porsche.

Pacquiao reportedly bought the Porsche Cayenne Turbo as a “bonus” following his successful bout against Mexican rival Eric Morales in the US in January last year.

The five-seater German vehicle, which cost $93,700 at the time of purchase, and has 171 miles-per-hour top track speed, reportedly entered the country in July last year.  

“His (Pacquiao’s) lawyer has signified Mr. Pacquiao’s intention to apply for voluntary disclosure under the bureau’s Voluntary Disclosure Program which encourages legitimate importers to correct errors in their import entries without being penalized,” Ligon said.

Ligon said the BOC is currently implementing the self-assessment scheme where importers can file the actual value of their goods for necessary taxation.

PEAG, however, is currently auditing and reviewing all import entries made over a three-year period.

“We are now reviewing shipments that entered the country in 2004 and 2005. Pacquiao’s SUV came in 2006, that is why we were not able to touch on his shipment yet,” Ligon said.

“Besides, in fairness to Pacquiao, we found an affidavit together with his import entry that it was his first and last entry for last year,” he said.

Ligon said Pacquiao’s lawyer assured he will submit a revised assessment at the end of the week even as the BOC is set to take action over the im-portation of the SUV early next week.

Customs Commissioner Napoleon Morales welcomed Pacquiao’s decision to voluntarily settle any tax obligation for the imported vehicle.

“I don’t think there will be any problems if we ask Manny to pay additional taxes should we find deficiencies in his payment,” Morales said.

“For the record, I do not think he will deliberately try to cheat the government as he is very well off,” Morales said.

“But still, I am glad that he has come forward now that he has been made aware of the error and offered to settle the difference.”

Morales also did not rule out giving a discount for Pacquiao in the payment of taxes.

“We will still have to check, because sometimes, if the importer gets a discount in the transaction value, we cannot impose the test value we have on record, we have to abide by the discounted price,” Morales said.

He said the evaluators will seek the difference between the transaction value and book value of the imported vehicle to determine any fraudulent transaction.

Morales said it would take them until early next week to completely review all documents of the boxer’s imported car.

Sources in the bureau, however, identified the broker of Pacquiao’s Porsche as Benjamin Valic.