The Court of Tax Appeals (CTA) has given world boxing champion and Sarangani Rep. Manny Pacquiao an indefinite period to raise P4.9 billion in surety bond in connection with his running tax feud with the Bureau of Internal Revenue (BIR), it was learned yesterday.
The posting of the bond would be a prerequisite for the lifting of the seizure warrant issued by the BIR on his bank deposits.
The premium for the surety bond is placed at around P490 million, or 10 percent of the P4.9 billion.
The resolution released last May 2 by the CTA?s First Division was in answer to Pacquiao?s petition to extend the 10-day period imposed by the court to produce the bond.
The decision, however, was silent on Pacquiao?s new petition to reduce the amount of the bond.
Last month, the court rejected Pacquiao?s request to lower the surety bond, stating that there was ?no legal basis to deposit less than the amount disputed.?
The court fixed the bond at P3.9 billion cash, or a surety bond of P4.9 billion.
Pacquiao complained earlier that even the original BIR?s deficiency tax assessment of P2.2 billion was more than his net worth.
Revenue officials surmised that Pacquiao is having a hard time looking for a surety company to underwrite the huge amount because of the risk that the company might have to shoulder the loss in the event the boxing great loses his case.
They said the earlier decision of the court to lift the Warrant of Destraint and Levy (WDL) was a victory for the BIR and not Pacquiao since the BIR would just seize the bond in case it wins the case and would no longer embark in searching for his assets here and abroad.
The BIR issued the WDL against the bank accounts of Pacquiao after he allegedly ignored notices sent to him to settle his P2.2-billion tax debts incurred from 2008 to 2009 which ballooned to P3.9 billion due to interests and surcharges.
