MANILA, Philippines - Bureau of Internal Revenue Commissioner Kim Henares denied yesterday that the agency is harassing Sarangani Rep. Emmanuel Pacquiao and said the BIR is just doing its job.
“What we’re just asking is a realistic assessment. There’s no harassment. We’re doing what we do with any taxpayer, big or small,” Henares said in an interview.
She said the agency did not even file a tax evasion charge against the world boxing champion but only contempt charges for ignoring the BIR’s letters requiring him to submit documents regarding his earnings and corresponding tax payments.
Henares said Pacquiao’s tax payments substantially declined to P7 million in 2009 from P100 million in 2008.
She said the issuance of a Letter of Authority to taxpayers is part of the agency’s procedures.
She said that normally all taxpayers, especially those with businesses, should be subject to a tax audit by the agency at least once in their lives.
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, but the latter snubbed the request.
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 for data on his product endorsements. He was asked to submit his records last month but failed to do so.
Thus, the BIR was forced to file contempt charges against the boxing champion 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.