AFTER being taxed by Mexican idol Eric ?El Terrible? Morales for 12 rounds, Filipino boxing hero Manny Pacquiao now faces another tough challenge ? settling his tax obligations.
Out of his $1,750,000, the 26-year old Pacquiao must pay the Internal Revenue Service (IRS) $525,000 or 30 percent of the gross purse, based on the regular tax cut in Las Vegas.
But a report coming out of the Nevada State Athletic Commission (NSAC) disclosed that the same commission allegedly withheld some $800,000 from Pacquiao?s gross purse or about 45 percent.
****
The issue on Pacquiao?s tax woes is not actually new.
Late December 2003, the topic came to light after his business manager Rod Nazario admitted their remiss in settling their tax obligations incurred during the last four of Pacquiao?s five outings in the United States from 2001 to 2003.
Nazario however assured that all the said payments are safely deposited in a US bank and that he already hired an American accountant to settle their tax commitments at that time.
Whether Pacquiao?s tax responsibilities have been settled or not is something that has to be cleared from his camp.
****
This brings back to memory the miserable experience of the legendary former world heavyweight champion Joe Louis.
During his prime in the 1940?s, the celebrated Louis was consistently a top boxing draw in Las Vegas.
But after being swindled by his managers, Louis ended his days scrambling for a living as a greeter in a Las Vegas casino.
Also because of his generosity in sharing his winnings to relatives, friends and even charitable institutions, Louis overlooked new tax laws at that time.
He ended up owing the IRS a seven-figure tax debt that ballooned as interest payments were compounded each year.
Louis, in failing to earn enough to meet his tax liability, died in debt.
