BIR to block reduction of R3.2-B bail bond of Pacquiao

The Bureau of Internal Revenue (BIR) said yesterday it will oppose moves to reduce the R3.2 billion cash bond, or R4.9 billion surety bond that the Court of Tax Appeals (CTA) imposed against boxing icon and senator-elect Manny Pacquiao to stop the BIR from seizing his bank deposits and real estate properties,

BIR lawyers who declined to be named made known their intention after attending the resumption of tax collection hearing conducted by the tax court’s First Division following the order of the Supreme Court to lower the bail bond by more than one-half.

The high tribunal stated that the bail bond can be reduced by excluding surcharges and interests from the deficiency tax assessment.

However, revenue lawyers argued that CTA’s rules and regulations mandate that the amount of bail shall not be lower than the tax assessment, or the amount supposed to be collected by the BIR from delinquent taxpayers.

The First Division instructed both camps to submit within two weeks their respective position papers over the SC directive.

It was the lawmaker who petitioned the high tribunal for the lowering of the bail bond saying it was beyond his declared net worth of R1.3 billion.

The BIR originally imposed deficiency income tax assessment of about R1 billion, but the amount tripled due the imposition of one-time 50 percent surcharge and 20 percent interest to indebtedness incurred in 2008 and 2009 when Pacquiao earned huge prize money for defending his various world boxing titles.