BIR firm on chess purse tax

The Bureau of Internal Revenue, acting on a request from the Philippine Chess Federation, yesterday released a copy of the revenue regulations, stating that players' winnings are subjected to 20 percent final tax.

This upheld the PCF's decision to impose the tax scheme on the recent Chess Pambansa Millennium Grand Prix prize money, a move that drew an uproar from the players, particularly GM Rogelio Antonio, Jr., who was hardest hit by the regulation. Antonio won the P1 million top prize.

This developed even as Antonio and IM Bong Villamayor denied their participation in the alleged player revolt against the PCF leadership, an offshoot of the controversy that marred the aftermath of the biggest, richest-ever chess tourney here.

Under Sec. 2.57 of the revenue code, the liability for payment of the tax rests primarily on the payor as a withholding agent - in this case the PCF, which organized the event - thus scuttling talks that the players should pay the tax themselves.

It further stated that winnings derived from sources within the Philippines are subjected to a 20 percent tax, which should be withheld at source.

Antonio hit the PCF for deducting the final withholding tax from his winnings and refused to receive his prize unless the chess body restored the total winning pot of P1 million. The original amount withheld was P100,000 but the PCF later realized it should be P200,000 or 20 percent of the winnings.

The row prompted Reynato Sarmiento, president of the sponsoring Real Bank, to call for a settlement of the problem although he stressed that Real Bank won't pay the 20 percent tax since the (tax) scheme is mandated by law.

Earlier, IM Nelson Mariano II and NM Richard Bitoon also denied their involvement in the so-called "rebel group" which is reportedly spearheading a move to replace the PCF as the country's governing chess body.

Speaking in behalf of his husband, Aileen Antonio finally broke her silence and lambasted some dailies, not The STAR, for publishing incorrect stories at the expense of her husband.

"Hindi totoo 'yung sinasabi nilang kasama 'yung asawa ko sa revolt na 'yan. Puro kasinungalingan lang 'yan ( It's not true my husband was involved in the said revolt. That's pure lie)," Aileen told The STAR.

"Imbis na makatulong sa problema 'yung mga maling istorya na lumalabas sa diyaryo na nagsasangkot sa asawa ko, lalo lamang pinalala ang problema (Instead of helping solve the problem, these stories further compounded it)."

She also said that no meeting ever took place at the Bayview Plaza Hotel last week and the reported renegade group was just a figment of their imagination.

Villamayor, a semifinalist in the chess grand prix, supported the claim of Antonio's wife, saying there was indeed no meeting, and if one even took place, he was not a part of the group.

"Hindi naman galit si Joey sa PCF. Ang gusto lang niya, ma-solve na ang problema na ito dahil naapektuhan na siya sa preparasyon niya sa dalawang tournament na sasalihan niya sa ibang bansa (Joey is not mad at PCF. All he wanted was for the problem to be solved since it is affecting his preparation for two big tournaments abroad)," Aileen added, referring to the May 3 event in Bali, Indonesia and the May 20 tilt in the Asian Championship Zone 3.2a in Vietnam.- With reports from Joey Villar