Palace: Lifetime tax exemption for Pacquiao 'unreasonable'

MANILA, Philippines - Malacañang won't support the pending legislations that would exempt Filipino boxing icon and Sarangani Rep. Manny Pacquiao from paying his taxes.

Presidential Communications and Operations Office Secretary Sonny Coloma said paying taxes is an obligation of every Filipino citizen and it is way to support the government.

"Tungkulin po ng bawat mamamayan ang pagbayad ng tamang buwis," Coloma said in a press briefing. "Kaya ang pananaw po namin, hindi makaturungan ang panukalang iyon."

Coloma said tax exemptions are based on a person's ability to pay taxes and among the factors considered are the taxpayers' family size and income.

Pacquiao's colleagues are now pushing for measures that would grant him tax exemptions amid the controversy that he is facing with the BIR due to his alleged tax deficiencies.

Valenzuela Rep. Magtanggol Gunigundo has filed a bill that would give Pacquiao a lifetime exemption from paying his income tax.

Gunigundo said the eight-division world boxing champion has brought “more countless honor and pride to the Filipino people.”

"His generosity and desire to help that extends even up to the use of his hard-earned money is noteworthy. He is an exemplar of humility, a refreshing soul in the Philippines,” a STAR report quoted Gunigundo as saying.

Read: Tax court gags Pacman, Kim | House bills exempt Pacquiao from paying taxes

The BIR is running after Pacquiao who has been assessed of having an income tax deficiency of P2.2 million in 2008 and 2009.

Pacquiao, whose bank accounts containing P1.1 million have been garnished by the BIR, is appealing before the tax court the assessment of the agency.

Pacquiao had insisted that he already paid the taxes in the US, but the BIR said it has not received from his camp official documents that would prove the payments.

Pacquiao's promoter and Top Rank chief Bob Arum had said that 30 percent of Pacquiao's earnings in the US were withheld by the company and paid to the US Internal Revenue Service.

Last week, President Benigno Aquino III himself urged Pacquiao to answer the queries of the BIR instead of engaging in a media war with the bureau.

He also denied that the government is harrassing the Filipino boxing icon.

“At the end of it, maybe, and with all due respect to Congressman Pacquiao, if he believes that he has complied with all the necessary rules and all the necessary laws, then I’m sure he has all the evidence,” Aquino said.

Read: Noy to Pacman: Pay up, shut up | PNoy to Pacquiao: Answer BIR, don't engage in media war