Manila, Philippines – Boxing idol Manny Pacquiao, who scored a unanimous victory over American Brandon Rios in their World Boxing Organization (WBO) international welterweight title fight last Sunday in Macau, suffered a setback at home when the Court of Tax Appeals (CTA) ordered his bank deposits frozen over a P2.2-billion tax case.

The tax court’s First Division issued the freeze order some two weeks ago but it was only known yesterday, a day after Pacquiao’s emphatic win. The boxing icon’s lawyers had earlier protested before the CTA the warrant of garnishment (WG) issued by the Bureau of Internal Revenue (BIR), attaching his personal assets that included his bank deposits.

The BIR normally issues WG to prevent delinquent taxpayers facing court suits from disposing of his or her assets during the trial.

US Income Unreported

The tax case arose from the alleged failure of Pacquiao’s accountant to report in his income tax returns (ITR) the multi-million-dollar taxes collected by the US Internal Revenue Service (IRS) from his prize winnings for the years 2008 to 2009.

Pacquiao said the assessment, which included interests and surcharges, was “arbitrary,” stressing he could not afford to pay the assessment because it was more than his net worth.

BIR lawyers said, however, that the tax debts have become “demandable, executor, and collectible” because the solon allegedly ignored to answer the final assessment notice (FAN) sent to him, which expired 30 days after receipt as provided for in the Tax Code.

Revenue officials explained that as a Filipino citizen, Pacquiao, a congressman representing Sarangani province, is required to declare in his ITR all his earnings, including those derived from abroad.

http://www.mb.com.ph/pacquiao-bank-deposits-frozen/