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MANILA, Philippines – The Bureau of Internal Revenue (BIR) will have to wait before being able to temporarily seize the assets of world-renowned boxer Emmanuel “Manny” Pacquiao’s for his allegedly unpaid taxes.
In a notice made public Wednesday, August 20, the Supreme Court (SC) ordered a temporarily halt in the BIR’s issuance and execution of any warrant of distraint and/or levy and garnishment against Pacquiao’s assets.
Such warrant allows the government to take Pacquiao’s assets until the payment of his alleged obligation to the state.
The court also temporarily disallowed the BIR “from attempting to collect any tax on the basis of the deficiency income tax and VAT assessments against petitioners for the years 2008 and 2009.”
Pacquiao allegedly owes the government P2.2 billion (around $ 49.21 million)* in tax liabilities. The BIR said Pacquiao misdeclared his income tax returns for 2008 and 2009.
The BIR accused the former 8-division world champion of failing to report his dollar winnings from his fights against Juan Manuel Marquez, David Diaz, and Oscar de la Hoya in 2008, and against Ricky Hatton and Miguel Cotto in 2009.
He faces a tax evasion case filed by the BIR before the Court of Tax Appeals (CTA).
The SC ordered the “deliberate dispatch” of the CTA case.
TRO on bond requirement
The high court also issued a temporary restraining order (TRO) against an April 22 CTA resolution which imposed a bond requirement on the lifting of the subject warrant against Pacquiao.
The 10-page CTA resolution granted Pacquiao’s plea to stop the BIR from collecting his allegedly unpaid taxes from 2008 to 2009.
The condition, however, was for Pacquiao to post a P3.3-billion ($73.8-million)* cash bond or a P4.98-billion ($110.69 million) surety bond. (READ: BIR ‘happy’ with compromise Pacquiao cash bond)
A cash bond is paid in cash, while a surety bond is promised to be paid in the future.
In his petition before the SC, Pacquiao wanted to do away with the bond requirement.
Pacquiao sought the high court’s help through a petition for certiorari filed on August 4.
The TRO will be in place while the SC decides on Pacquiao’s petition. – Rappler.com
*$1 = P44.70
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