The Manny Pacquiao Act of 2013, a bill seeking to exempt the People’s Champ from paying taxes for life, has been filed at the House of Representatives.
The bill’s author, Valenzuela Representative Magtanggol Gunigundo, says the honor that Pacquiao brought to the country is enough reason to exempt him from paying his dues to the government.
Gunigundo clarifies that his proposed measure will exempt Pacquiao from paying only his individual income taxes.
It is approved, the boxing champ will still have to pay his corporate and real estate taxes.
The Valenzuela Representative also cites Section 32, Paragraph B of the Internal Revenue Code as the basis of his proposed bill.
The law says prizes and winnings of athletes should be tax free.
Gunigundo did fall short of explaining why Pacquiao’s earnings from his endorsement contracts and hosting stints should also be covered by the proposed tax exemption.
He points out that a tax case that the champion boxer is currently facing prompted the crafting of the Pacquiao Act of 2013.
For her part, Bureau of Internal Revenue Commissioner Kim Henares says she sees no logic in granting government subsidy for Pacquiao’s lifestyle, as Pacquiao’s principal goal was to make money from boxing and not to reap honor for the country.
She adds that, if the government is to give tax exemptions to Filipinos who bring honor to the country, then soldiers and teachers should be on top of the list.
The BIR chief suggests that, instead of waiving Pacquiao’s taxes, the House should craft a measure that would benefit athletes in the long run.
Gunigundo snaps at Henares’ recommendation, saying that the tax commissioner should just mind her own business.
Meanwhile, Malaca?an also frowned on the proposed tax exemption.
Presidential Communication Secretary Herminio Coloma said: “Paying taxes is one of the basic obligations of every Filipino citizen.”
Pacquiao has yet to give his two cents’ worth on the proposed life-time tax exemption.
