GENERAL SANTOS CITY: The Bureau of Internal Revenue District Office here summoned world boxing champion Manny Pacquiao to explain why he had failed to declare his income from 42 fights since 1995 and from his product endorsements.
Assistant Revenue District Officer Noel Gonzales refused to divulge how much Pacquiao owed the government in taxes but hinted that the boxer recently paid some $565,000 in taxes to the US Internal Revenue System.
“The government could have derived sizable taxes from Pacquiao had he declared his income properly,” Gonzales said, adding that Pacquiao is also liable for income taxes from his endorsement of products like Talk ’N Text and Smart cellular phones, Pony and “No Fear” sports wear, Burlington socks, Red Bull, Family Rubbing Alchol, Mareishi herbal coffee, Alaxan, products of the Lucio Tan group of companies and Surf laundry soap.
But Pacquiao said he really had no knowledge of his tax liabilities and blamed his former manager, Rod Nazario, for failing to explain to him his tax obligations.
“Hindi naman kasi ito pinaliwanag sa akin ni Nazario kaya hindi ko alam na may babayaran din pala ako sa iba ko pang pinagkakakitaan [Nazario never really explained this to me so I really didn’t know I also had obligations from my other earnings],” Pacquiao said.
Saying his tax debt was a mistake made in good faith, Pacquaio said he was more than willing to settle his obligations.
“If I honestly paid my tax obligation in the US, how much more here that it would benefit my poor kababayan,” Pacquiao told The Manila Times in Bisayan when interviewed after meeting with BIR Regional District Officer Eric Furia at the BIR office here.
Gonzales said all international and local fights of Pacquiao, except those sanctioned by the national sports association and the Philippine Olympic Committee, are taxable.
Gonzales said the BIR will also impose a 10-percent value-added tax on the earnings of Pacquiao since 2003.
