Manila taxman demands Pacquiao pay $50 million
Mosley retires
MANILA, Nov 27, (Agencies): Philippines authorities demanded Wednesday that boxing great Manny Pacquiao pay a $50 million tax bill or risk having assets seized, but the national hero vowed to take the fight to court.
The battle between one of the best boxers in history and the taxman has shocked his army of fans in the Philippines, emerging just days after a comeback win in the ring was hailed as a moment of hope amid the aftermath of a deadly typhoon.
Pacquiao disclosed Tuesday the Bureau of Internal Revenue wanted 2.2 billion pesos ($50.2 million) for alleged unpaid taxes in 2008 and 2009, when he was at the peak of his career and one of the world’s highest-earning athletes.
Pacquiao, 34, insisted he had paid his taxes in the United States, and so did not need to do so in the Philippines because the two countries have an agreement allowing their citizens to avoid double taxation.
But tax commissioner Kim Henares, who has spearheaded a high-profile campaign against tax evasion in the Philippines, stood firm on Wednesday, saying Pacquiao had failed for two years to provide documents proving his US payments.
“2.2 billion (pesos) is what Pacquiao owes now because of surcharges and interest,” Henares said on ABS-CBN television.
Henares said the tax bill may be cut if Pacquiao did provide certified documents proving he paid the US Internal Revenue Service.
“What we want is evidence that he (Pacquiao) actually paid the tax.”
But she said that even if he had paid the 30 percent tax rate in the United States, there would still be extra charges due in the Philippines because it had a higher rate of 32 percent.
The tax office has frozen his bank accounts in the Philippines, which Pacquiao said had left him financially paralysed.
Meanwhile, Manny Pacquiao’s promoter says he expects certified US tax paperwork for the Philippines boxing hero to be received by authorities in his homeland “very soon” after they froze the fighter’s assets.
Bob Arum said that allegations of 2.2 billion pesos ($50.2 million) in unpaid taxes from US bouts in 2008 and 2009 are false and that his Top Rank agency made certain the proper money was paid to US authorities just to avoid such problems.
“Filipino authorities confirmed that Manny is not required to pay double tax,” Arum said in a statement Tuesday. “If Manny paid US taxes for fights and endorsements that occurred on US soil, he is not required to pay double taxes in the Philippines.” SYDNEY: Anthony Mundine
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scored a sixth-round technical knockout over Shane Mosley in their WBA international super welter- weight title fight on Wednesday, the first time the American has been stopped inside the distance.
Mosley, a 42-year-old with a record of 47-9-1, decided to retire before the seventh round due to back spasms. He said he would decide after he returns to the US whether he would retire.
“What’s done is done,” Mosley said when asked whether he would fight again.
Mundine, 38, improved to 45-5 with 26 knockouts at Homebush in western Sydney. Mundine was leading 58-56 on two cards and 60-55 on the third.