BIR to Pacman: Submit documents, we drop case

MANILA, Philippines - Bureau of Internal Revenue (BIR) Commissioner Kim Henares assured boxing champion and Sarangani Rep. Manny Pacquiao yesterday that the contempt charges the agency filed against him would be dropped as soon as he submits the documents being sought by the bureau.

“As of now, we are not even talking or thinking of tax evasion. We are only asking him to submit the documents. If he submits, we will withdraw the case,” Henares said.

Speaking to reporters at the Department of Justice (DOJ), Henares said Pacquiao only has to comply with the BIR order and show the documents to prove that he is paying the right taxes.

This way, Henares said the BIR could have a realistic assessment of Pacquiao’s taxable income.

She said that the agency could ask any taxpayer to submit documents that would show the proper payment of taxes, debunking claims by Pacquiao that the agency has been harassing him.

These documents include contracts from his fights, contracts for endorsing products and tax payments to the United States.

Henares said that if Pacquiao has made the proper payments, he would have all these documents with him.

The bureau filed contempt charges against the congressman in February for ignoring the BIR’s letters requiring him to submit documents to the agency regarding his earnings and corresponding tax payments.

The BIR, through the agency’s regional director Rozil Lozares, issued a Letter of Authority to Pacquiao requiring him to submit documents regarding his earnings.

The BIR said Pacquiao’s tax payments substantially declined from P100 million in 2008 to only P7 million in 2009.

Pacquiao snubbed the BIR’s request for documents.

The BIR wants to investigate 33 tax records, including Pacquiao’s annual income tax return in 2010, his book of accounts, list of assets, as well as his earnings from his fights against Antonio Margarito and Joshua Clottey.

The agency also asked Pacquiao to submit data on his product endorsements.

The contempt case is now pending at the Office of the City Prosecutor in Koronadal.

Under heavy pressure to raise revenues, the BIR has been stepping up efforts to collect taxes.

The bureau aims to collect P1.066 trillion this year, higher than last year’s goal of P940 billion and the actual tax-take of P924 billion.

Meanwhile, Senator Ramon Revilla Jr. advised Pacquiao yesterday to fight the BIR if he believes that he did nothing wrong as far as his taxes are concerned.

Just like Senator Ralph Recto, who previously denounced the way the BIR has handled the issue of Pacquiao’s tax payments, Revilla reminded the BIR that Pacquiao should be treated with more respect.

“If the BIR is certain that Manny committed an error, then just take the necessary actions and file the necessary charges. Why do you have to announce it in the papers?” Revilla said in a statement.

“My advice to Manny, take all these with a grain of salt. Kung alam niyang hina-harass lang talaga siya at malinis ang kanyang konsensiya, fight lang (If he knows that he is just being harassed and he has a clean conscience, then fight on),” he added.

Revilla said he was concerned over the manner of the BIR probe into Pacquiao’s taxes, which he likened to the collection agents of credit card companies.

He noted that the credit card collection agents employ very questionable tactics such as threatening and shaming the concerned individuals just to collect payments.

“They would do everything to destroy a person’s name and in the end, it may turn out that they just committed a mistake,” Revilla said.

“Then what happens after this, sorry na lang? At this point the damage has already been done,” he added. With Marvin Sy