MANILA, Philippines - The Bureau of Internal Revenue (BIR) had filed contempt charges against world boxing champion and Sarangani Rep. Manny Pacquiao for failing to present his tax records to the agency.
BIR Commissioner Kim Henares told The STAR that Pacquiao is facing contempt charges but not tax evasion charges.
The BIR, through the agency’s regional director Rozil Lozares, issued a Letter of Authority to the boxing icon requiring him to submit documents to the agency regarding his earnings and corresponding tax payments.
“All our regional directors can issue a Letter of Authority. It’s a normal examination,” Henares said.
She said that normally, all taxpayers especially those with businesses should be subject to a tax audit by the agency at least once.
According to the BIR, a Letter of Authority is an official document that empowers a revenue officer to examine and scrutinize a taxpayer’s books of accounts and other accounting records, in order to determine the taxpayer’s correct internal revenue tax liabilities.
Henares said the BIR has been asking Pacquiao to submit his tax records to the agency to check if there are deficiencies.
Apparently, Pacquiao snubbed the BIR’s request for documents.
According to ABS-CBNNews.com, the BIR wants to investigate 33 tax records, including Pacquiao’s annual income tax return in 2010, his book of accounts, list of assets, as well as his earnings from his fights against Antonio Margarito and Joshua Clottey.
The agency also asked Pacquiao to submit data on his product endorsements.
Lozares was quoted by ABS-CBNNews.com as saying that Pacquiao was supposed to submit the records on Feb. 7, but failed to do so.
Thus, the BIR was forced to file contempt charges against the boxing champ.
The case is now with the Office of the City Prosecutor in Koronadal.
Under heavy pressure to raise revenues, the BIR has been stepping up efforts to collect taxes.
It is tasked to collect P1.066 trillion this year, higher than last year’s goal of P940 billion.