GENERAL SANTOS CITY, Philippines ? The Bureau of Internal Revenue (BIR) in Central Mindanao has vowed to pursue the tax case all the way up against world boxing icon and Sarangani Representative Manny Pacquiao.
Last March, the BIR regional office filed a formal complaint against Pacquiao for his failure to submit the 2010 tax documents after the agency had served several summonses.
Pacquiao was charged with violation of Section 266 of the National Internal Revenue Code, for ?failure to obey summons.?
Under this provision, violators, upon conviction, may be punished by a fine of not less than P5,000 but not more than P10,000 and suffer imprisonment of not less than one year but not more than two years.
The BIR has clarified that the complaint against Pacquiao is a not a tax evasion case, rather a criminal case arising from non-submission of tax documents by Pacquiao as required by the BIR.
In an eight-page resolution dated Oct. 12, Arnold D. Cruz, deputy city prosecutor and officer in charge of the City Prosecutor?s Office in Koronadal City, dismissed the case versus Pacquiao.
Cruz cited as primary basis in dismissing the case the failure of BIR regional office to personally serve the summons on Pacquiao.
?It would be absurd to hold the respondent liable for neglecting to obey a subpoena which he did not receive at all, in the first place,? an excerpt of the resolution said.
Cruz, citing jurisprudence, claimed that the service of summons has always been ?vital part and indispensable ingredient? of due process.
The prosecutor claimed that the BIR action has been contrary to Revenue Memorandum Order No. 88-2010 which has required for a personal service of summons to the respondent.
In his resolution, Cruz added Pacquiao had no intention to evade or refuse to receive summons and hence, resorting to substituted service was irregular and ineffectual.
The resolution further said that there was no proof the appearance of accountant Emma Cequina, general manager of Pap of Companies, was in connection with the subpoena sent to her employer and that she was authorized to represent him in the case.
In his motion for reconsideration, Eric Diesto, chief of the legal division of BIR-12, assailed the prosecutor?s resolution for its failure to appreciate probable cause involving violation of Sec. 266 of the Revenue Code.
Diesto explained that the BIR-12 revenue officer failed to personally serve the subpoena to Pacquiao as it was difficult to set an appointment with him and access to him was very limited.
Diesto claimed that in one instance, the revenue officer was not allowed to go inside the Pacquiao mansion and that all matters regarding BIR transactions were being handled by the boxer?s accountants.
The subpoena was served twice but Pacquiao was not around then and had just left for Manila with no information as to when he?s coming back.
Diesto said Pacquiao sent in February four representatives ? lawyers Francisco Gacal and Rommel Agan, as well as, accountants Emma Cequina and Richard Querido, in an attempt to settle his problem with the BIR.
?We will exhaust all legal remedies available just to overturn the decision of the City Prosecutor?s Office in Koronadal City,? BIR regional director Rozil Lozares said.
Lozares said BIR was just doing its job in collecting the right amount of taxes from the taxpayers.
?I believe, we have a very strong case so we will pursue this up to the end,? he said.
