GLENDALE, California – Tax woes are nothing new for the boxing champ Manny Pacquiao. However, a 2011 lawsuit brought on by his former accountants may have foreshadowed the Pacman’s global battle against the taxman.
Legal documents show that Pacquiao brought several years’ worth of unorganized taxes to VisionQwest accountancy group, but the short business relationship turned into an exchange of lawsuits between the accountants, Pacquiao, his financial advisor Michael Koncz, and Top Rank’s chief Bob Arum after Pacquiao terminated his contract with the firm.
In an email, VisionQwest President and CEO Michael Lodge explained that they had a big concern over Pacquiao’s tax situation in the US and in the Philippines. He said the Filipino boxing champ had no accounting organization behind him to generate true income and expense numbers to file a tax return.
He claimed that Koncz never gave them proper documents to back up income and expense numbers.
Lodge said they expressed their concerns to Pacquiao and his Philippine lawyer, Franklin Gacal.
Pacquiao later terminated his contract with VisionQwest after the firm had received over four large boxes from the boxer filled with thousands of receipts to begin the documentation process.
Lodge said he wishes Pacquiao the best of luck and hopes that he is able to resolve his tax issues and create a strong financial management team around him.
Pacquiao’s terminated contract with VisionQwest resulted in the firm suing him for some $649,000 for their unpaid services.
Pacquiao then countersued, saying they terminated the services after VisionQwest filed inaccurate, untimely and incomplete tax returns for him.
Pacquiao sought the accounting firm’s help in 2010 to deal with tax issues. Invoices show that the firm was working on taxes for Pacquiao’s individual taxes and his promotions company’s US taxes from 2008 through 2011.
TMZ reported Pacquiao’s IRS debts began in 2006. Pacquiao’s legal team as well as Koncz have circulated a statement saying the disclosure of Pacquiao’s personal tax information is wrong and the recent stories contain serious error. They said the boxer is committed to working with the IRS to resolve the outstanding issues.
Neither Top Rank nor VisionQwest would comment on the status of the legal case which records show was remanded to the Los Angeles Superior Court in the spring of 2012.
