Rod to show tax receipts

Bristling in the wake of innuendoes that he shortchanged two-time world boxing champion Manny Pacquiao, business manager Rod Nazario is arriving from the US tomorrow with tax receipts to show payments were dutifully paid to the Internal Revenue Service (IRS) since 2001.

Nazario’s associate and L&M Gym co-owner Moy Lainez told The Star yesterday Pacquiao was misinformed when advised that he had not paid taxes to the IRS for six fights in the US dating back to the Lehlo Ledwaba bout four years ago.

"I think Manny is confused," said Lainez. "It is true the Nevada State Athletic Commission withheld 30 percent of his purse for the (Erik) Morales fight but that was to pay the current tax. He has no back taxes to pay."

According to Lainez, Pacquiao has a year to submit receipts of expenses to claim deductions on the $525,000 withheld from his purse to pay the IRS.

Lainez said it’s unfair to Nazario to suggest he was remiss in paying Pacquiao’s taxes. To clear his name, Nazario is willing to face the press and answer any questions regarding his management of Pacquiao’s business affairs. He will also show official tax clearances from the IRS and receipts of tax payments from 2001 to 2004.

Lainez also said there is nothing in Pacquiao’s fight contract stipulating a share in the pay-per-view receipts.

Pacquiao was originally booked to face Juan Manuel Marquez, explained Lainez, and that was not a pay-per-view fight. When Morales replaced Marquez as Pacquiao’s opponent, promoter Bob Arum of Top Rank increased the Filipino’s purse from $900,000 to $1.75 million but claimed world-wide TV rights and never promised a share of the pay-per-view buys.

Lainez said Solar Entertainment paid Arum a fee of $150,000 for the Philippine TV rights.

Before the fight, Lainez said Nazario told Pacquiao to just focus on Morales and not worry about his pay-per-view share.

"Ang advise ni ‘Dolfo kay Manny ay habulin nila ‘yung pay-per-view pagkatapos ng laban kasi wala naman sa kontrata," added Lainez. "Stick to the $1.75 Million purse for the moment and worry about the pay-per-view later."

Lainez said Arum, not New Jersey promoter Murad Muhammad, is liable under the Muhammad Ali Boxing Reform Act to provide full disclosure of the terms and conditions of the fight as lead promoter. Muhammad was Arum’s co-promoter of the Las Vegas match.

But Pacquiao, now in the US, is set to file a suit against Muhammad for allegedly withholding information on what he claims to be his share of the pay-per-view receipts. Pacquiao said he should get 40 percent of the pay-per-view upside or net of cable network expenses and estimated the amount to be about $3 million.

Lainez said a prolonged case against Muhammad could work against Pacquiao.

"Kung may kaso sa korte, sinong promoter ang kukuha kay Manny?" wondered Lainez. "Baka magkaroon ng injunction preventing Manny to fight. Si Murad kayang mag-promote even with a case against him. But si Manny, baka mapigilan lumaban. Sa tingin ko, amicable settlement is the best solution. Agrabyado si Manny kung tumagal ang kaso sa korte."

Lainez said he doubts if Pacquiao can return to the ring in July for a tune-up fight because of his cut. Games and Amusements Board physician Dr. Nasser Cruz told Lainez it will take about four months for Pacquiao’s wound over the right eye to heal. Morales opened the cut with a headbutt in the fifth round of their fight last March 19. It took 15 stitches to sew up the wound.

Lainez said Pacquiao was too hasty in signing up new manager Shelly Finkel when his contract with Marty Elorde expired last Feb. 1.

"Yari na ang laban kay Morales bago dumating si Finkel," said Lainez. "Hindi naman si Finkel ang nagayos ng laban kaya bakit siya may por siento sa premyo ni Manny? Nag-promise si Finkel na may makukuha si Manny sa pay-per-view receipts kanya sila’y nagkasundo sa kontrata. Sana, hindi muna pumirma si Manny at ginawang conditional ang share ni Finkel, depende kung may makuha sa pay-per-view."

Lainez said Pacquiao will end up on the short end of the stick if he fails to get a cent from the pay-per-view buys because he has already paid Finkel and his lawyers Keith Davidson and Nicholas Khan a combined 15 percent of his purse.

Lainez said Pacquiao could’ve pocketed the 15 percent for himself instead of giving it to Finkel and the lawyers in case the court rules he has no rightful claim to the pay-per-view buys. The 15 percent of his purse amounts to $262,500 or over P14 million.