Email
Password
Remember meForgot password?
Log in with Facebook Log in with Twitter
Connect your Digital Journal account with Facebook or Twitter to use this feature.

article imageOp-Ed: Bankruptcy hounds Pacquiao as IRS, BIR take legal options

By Leo Reyes     Jan 28, 2014 in Sports
The Philippines' Bureau of Internal Revenue (BIR) appears to have scored another legal victory in its effort to collect outstanding tax dues from Manny Pacquiao and wife Jinkee estimated at $50 Million.
On Tuesday, BIR claims Pacquiao and Jinkee have lost their option to appeal on the lifting of assets freeze order or the BIR-imposed warrants on their bank accounts.
During the hearing at the Court of Tax Appeals on Tuesday, BIR lawyers maintained that the 30-day provision for an appeal has already lapsed when BIR issued a freeze order on their assets.
But Pacquiao's camp claimed that BIR failed to inform the Pacquiao couple of their tax liabilities, saying that their lawyers did not receive the BIR notice.
The bulk of the assessment imposed by the BIR which has reached over P2.2 billion were mostly based on Pacquiao's fight purse including endorsements in 2008-2009.
The arguments by Pacquiao's lawyer and the BIR Investigation officer on legal technicalities can be viewed on gmanetwork.com.
BIR is determined to collect from Pacquiao the P2.2 billion assessment, claiming that the fighting congressman has lost the right to appeal the case.
On the $18 million assessment by the IRS, it appears that Pacquiao's US lawyers were able to make arrangement for the temporary lifting of the freeze order on Pacquiao's US assets.
The US Internal Revenue Service has not given up on its claim of $18 million in tax dues and arrears. Pacquiao's adviser Michael Koncz said earlier that Pacquiao's US lawyers have already made arrangement with the IRS to lift the freeze order on Pacquiao's US assets. But such arrangements if true, are temporary and eventually the IRS may have to pursue its claim. Read more:
These so called "lifting actions" on the freeze orders of Pacquiao's assets are temporary and both the IRS and BIR can proceed with new orders to freeze his assets including bank deposits.
A swift action on the part of IRS and BIR which could include the garnishment of his purse in the upcoming Bradley fight on April 12, could take its toll on Pacquiao's already tight financial situation.
If Pacquiao is unable to fight because of injury or accident, he could be on the road to bankruptcy.
Pacquiao intends to retire by the end of next year which is good for four more fights including the bradley fight in April, though he can do six fights if he fight three times this year and another three next year.
If Pacquiao remains healthy in the next two years, he should be able to settle all his tax dues with surplus funds for eventual retirement.
Pacquiao's supporters and close family friends are worried though that any injury that will prevent him from completing his fight plan for the next two years could lead to financial meltdown and eventual bankruptcy.
This opinion article was written by an independent writer. The opinions and views expressed herein are those of the author and are not necessarily intended to reflect those of DigitalJournal.com
More about Boxing, Manny Pacquiao, Bob arum, Irs, bir
More news from
Sports Video
Latest News
Top News

Corporate

Help & Support

News Links

copyright © 2014 digitaljournal.com   |   powered by dell servers