FIGHT IN THE U.S. & YOU OWE UNCLE SAM
The biggest misconception people have is that foreign fighters who fight and get paid here in the United States do not have to pay American taxes. That?s a far stretch from being the truth as any person who makes a paycheck must pay a certain amount of taxes in the United States of America.
SPEAKING FROM PAST FAMILY EXPERIENCE
Back in 2000, the former manager of Luisito Espinosa, Boots Aniel, she checked Espinosa?s tax records and found out that he hadn?t paid taxes during his fights in the United States. After doing some research and reading the contacts, she realized that in Espinosa?s contract with America Presents, his former promoter, it was America Presents? obligation to pay Espinosa?s taxes. In the end, Matt Tinley?s group paid the IRS about $120,000 in taxes, from which Espinosa received $39,000 in tax returns. Unfortunately for ?King? Louie,? it was his last big paycheck.
NO ROOM FOR ERROR IF IT?S IN THE CONTRACT,
It was clear in Espinosa?s contract that American Presents was responsible for Espinosa?s taxes. However, current fighter in question, Manny Pacquiao?s, it?s still unknown what it says in the contracts, who was responsible and for what. Obviously contracts have been the Achilles heel of Pacquiao?s career, only to be capped off by the recent drama with Pay Per View percentages and taxes.
BASIC TAX ISSUES
Foreign fighters who receive their purse want nothing more then to take it home immediately and forget about paying taxes. No American wants to see 30% percent of what they earned go to a government they don?t represent. In order for a fighter to file taxes, he must immediately hire an accountant. Once the accountant files his income tax and reports the many deductions and expenses taken from his purse, there?s a decent chance Manny will receive a refund check, like Espinosa did.
MANNY NOT PAYING PHILIPPINE TAXES?
Reading certain articles on the web, I came across several columns asking Manny Pacquiao to pay Philippine taxes from his fights in the United States. Yes, Manny should pay taxes in the Philippines, however it shouldn?t be on money he earned in the U.S. Manny is a movie star and the money he makes doing movies should be taxed. This is what you call double taxation.
MURAD MAKES IT BIG TIME!
Obviously spending some of the money he made on Pacquiao-Morales, Murad Muhammad, AKA everyone?s favorite promoter, won the purse bid for In Jin Chi?s mandatory WBC featherweight title defense against 2000 Olympic Silver Medallist Rocky Juarez. Murad?s whooping bid of $700,000 won the rights to be the lone promoter as he outbid Main Events, Juarez?s promoters by almost twice the amount. Even if Chi and Juarez split the purse 50-50, each will make $350,000, which is way more than anything Pacquiao ever made before Marco Antonio Barrera!
PEDRO TO WRITE TUESDAY ON PACQUIAO?S BACK FLIPS!
With Manny Pacquiao and advisor Rod Nazario again talking, to Pedro Fernandez this is just another example of Manny being short on smarts or being easily manipulated. Which is it? Look for that and more Tuesday AM only at www.RingTalk.com
Jason Aniel
