PNoy to Pacquiao: Answer BIR, don't engage in media war

In this photo released by Team Pacquiao, Filipino boxing icon Manny Pacquiao shows reporters U.S. Internal Revenue Forms which he claims to have filed in 2008 and 2009, in General Santos, southern Philippines Wednesday, Nov. 27, 2013. Despite returning like a hero from beating American Brandon Rios over the weekend, Pacquiao recently said he has no money to keep his promise to help typhoon victims because Philippine revenue authorities have frozen his bank accounts. The Bureau of Internal Revenue says Pacquiao hasn't proved he paid taxes in 2008-2009. It has assessed that Pacquiao, once one of the world's highest paid athletes, owed P2.2 billion ($50 million) in back taxes as of July. 

MANILA, Philippines - President Benigno Aquino III himself has weighed in on the controversy that world boxing champion Manny Pacquiao is now facing over his supposed tax deficiencies.

In a televised press briefing in Bohol, the President advised Pacquiao to focus on answering the queries of the Bureau of Internal Revenue (BIR) instead of engaging in a media war with the agency.

Aquino said the boxing icon, who is also the district representative of Sarangani province, has noting to fear if he did not violate tax laws.

"[W]ith all due respect to Congressman Pacquiao, if he believes that he has complied with all the necessary rules and all the necessary laws, then I'm sure he has all the evidence to afford," Aquino said.

"If he did right, then I’m sure he will be able to prove that he did right, and therefore there is no issue. So the way to settle it is to answer all of these queries by the BIR and not to engage in a media war," the President added.

The President also denied Pacquiao's claim that he is being harassed by the government.

"Bakit siya iha-harass? Saan ba ang logic noon? I understand, the accounts total P1.1 million. What is that compared to all of his winnings?" he said.

Read: Pacquiao feels 'harassed' over freeze order, borrows money for 'Yolanda' survivors

BIR Commissioner Kim Henares said on Wednesday that two bank accounts of Pacquiao with a total amount of P1.1 million have been garnished by the agency due to the tax deficiencies.

The media had reported that Pacquiao's bank deposits had been frozen by the Court of Tax Appeals over a P2.2-billion tax case.

In a televised press briefing on Thursday in Manila, Henares said Pacquiao did not state in his income tax return for 2009 his earnings from the US, which included his guaranteed purse from his fights and revenues from pay-per-views and ticket sales, among others.

"Ito yung problema ng 2009 income tax return niya, wala siyang i-dineklarang American income, dinineklara lang niya 'yung Philippine source income, under declared pa," Henares added.

"Ang batas natin ganito, kung Pilipino ka, residente ka ng Pilipinas, kailangan ideklera lahat ng income mo saanman lupalop ng mundo mo kinita 'yun," she also said.

Henares also insisted that Pacquiao has yet to show proof of his tax payments in the US in 2009.

She reiterated that they have been waiting for two years for Pacquiao's camp to provide original documents or certified true copies from the US Internal Revenue Service.

Henares said they have given all the leeway to Pacquiao, who said he had to borrow money to help typhoon victims since his accounts have been frozen due to his tax mess.

"Pinagbibigyan na nga siya, kami pa ang mali," Henares said. "Lahat ng leeway binigay na namin, kami pa ngayon ang masama. Parang unfair naman po 'yan."

Related: Henares to Pacquiao: Don't use BIR as excuse

On Wednesday, Top Rank Promotions chief Bob Arum defended Pacquiao, claiming that the company withheld 30 percent of his purses in each fight in the US and were paid directly to the IRS through the (EFT).

“Top Rank submitted copies of the EFT deposit acknowledgements to the Bureau of Internal Revenue as proof of payment. The BIR received the documents but directed Manny to obtain ‘certified’ documents directly from the IRS itself," Arum said.

He noted that obtaining certified copies of IRS documents takes time but assured that these are expected to be furnished to the BIR "very soon."

Related: Arum to BIR chief: Pacquiao's tax mess is your faultArum comes to Pacman’s rescue; BIR open to compromise

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