Pacquiao and us against the ropes

BANGKOK, Thailand — As far away as Bangkok maybe from Manila, the news about Manny Pacquiao’s “Fight to the end” with the Bureau of Internal Revenue over taxes, has certainly received ample coverage here for the last two days, at least as far as the prominent English daily Bangkok Post is concerned.

While attending the 33rd Bangkok Motor Show courtesy of Ford Motor Company – Philippines, several members of Philippine Media have noticed the relatively big space given to the tax woes of Manny Pacquiao and the fact that the topic has been prominently featured for two consecutive days, with colored photos of the Filipino champ covering a space of approximately 8” x 4” in the upper corner of the Sports section.

By itself, it clearly shows that Manny Pacquiao is not just a Pinoy phenomenon or a Filipino concern. He is in every way a global boxing icon. Therefore anything of interest, proper or scandalous, will always be news and will be picked up all over the world. Unfortunately, Pacquiao’s tiff with the BIR is something that could have been handled better by all parties concerned because the unwarranted negative publicity affects how people view the Philippines in ways we never imagined.

The story which headlined “Pacquiao warned he’s not immune from prosecution,” and the fact that the BIR “last month had filed a criminal case against Pacquiao for failing to submit proper documents about his earnings from boxing matches and his numerous commercial endorsements” already gives a derogatory characterization of Pacquiao.

Some will think the worse of Pacquiao, while many more will resent how this hardworking fighter is being worked over by the Philippine government for every penny he’s worth.

After reading all the accounts and comments made by Pacquiao, Commissioner Kim Henares and Department of Finance Secretary Cesar Purisima, I was immediately reminded of the saying: “prudence is the better part of valor.” In plain English the statement suggests that it is best “to think carefully and not act, than to do something that may cause problems.”

I have long been supportive of the BIR and in general I fully appreciate where they come from when they become contentious, intimidating because tax evaders along with their tax lawyers and accountants will use every trick in the book to deny the BIR access to their records.

However, in the case of Manny Pacquiao, there simply has been too much said in public. The first lesson that the DOF and the BIR should learn is that “tax investigations” like other legal or police related investigations should be done discreetly and with no information being shared to the media, because it is suppose to be treated with confidentiality. Less talk, less mistake.

An investigation that is treated with absolute confidentiality and no commentary would be very hard to twist into an accusation of harassment, or claims that he or she is being singled out.

The problem is that in the shock and awe style of the BIR, they have ended up creating the impression that they are out to make an example of the Big Fish and the Big Players thereby lending credence to the belief or impression that Manny Pacquiao is indeed being singled out.

The Pacquiao camp or any other individual similarly situated should also realize that press releases, media leaks or presscons may draw public sympathy but that will not change the course of the law and the BIR. You have to defend your claims at the BIR and not at a presscon.

The Bangkok Post article which was taken from the Agence France Presse, quoted Secretary Cesar Purisima of the Department of Finance as saying: “We love Mr. Pacquiao, we respect Mr. Pacquiao... but at the same time we have a duty to make sure we review everyone’s income tax return and I don’t think Congressman Pacquiao should take this personally.”

This sort of off the cuff comments is what clouds the true intentions of the Department of Finance. Do you publicly audit someone you love? Do you file a criminal case against a national icon instead of discreetly but seriously pursue the resolution of the matter? If that’s the way we treat our “heroes” or people we love in the Philippines, it won’t be long before people like Pacquiao might copy European champions who migrated or moved to nations considered tax havens because they too felt singled out.

Secretary Purisima’s comment that Pacquiao should not take the matter personally qualifies as a Foot in Mouth disease. When the BIR filed a criminal case against Manny Pacquiao, the BIR and the DOF had in fact made it a “personal” matter for Manny Pacquiao.

If the tables were turned, I’m sure that just like Manny Pacquiao, even Secretary Purisima would also start feeling that he is being singled out and that someone is getting personal.

Those in government must truly realize that “prudence is the better part of valor” especially in a war of words that could go beyond tax matters. Pacquiao is popular, has many friends in Congress and can be a force to reckon with in the political arena if he chooses to make his differences with the BIR a political matter and not just a tax audit.

I hope that cooler and wiser heads prevail because in the end we are all parts of one body. The only rumble we want to be in is against the enemy and not amongst ourselves.