Basketball players urged to pay taxes

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has urged the country’s professional basketball players to pay their taxes by issuing checks to make sure that the money goes directly to the government’s coffers.

BIR Commissioner Kim Jacinto-Henares advised players of the Philippine Basketball Association (PBA) to avoid paying cash and instead issue checks to ensure that payments go to the Bureau of Treasury, therefore preventing any diversion of the payments into other accounts.

During the tax clinic held by the BIR for the PBA players yesterday, Deputy Commissioner of Internal Revenue (DCIR) Nelson Aspe briefed the players on their duties and obligations as professional taxpayers, especially on the matter of filing their returns and the payment of their tax dues.

Aspe also urged players to engage the services of accredited tax practitioners to handle their tax transactions amid the influx of people posing as BIR agents as the deadline for filing income tax returns nears.

Among the issues that were raised by players were the payment of withholding taxes and what expenses might be deducted from their professional income and whether gym fees and player fines, among others, were deductible.

James Yap of San Mig Coffee and Chris Tiu of Rain or Shine were among the players who attended the BIR forum.

PBA Commissioner Chito Salud said the 38-year-old league supports the BIR’s campaign for tax compliance and payment of correct taxes.

Salud said the tax forum sends a strong message that the PBA is a partner of the BIR in nation building.

“We want our players to be model citizens insofar as paying what is due to the government. We trust that this relationship between the PBA and the BIR would go a long way in helping the government collect higher revenues,” Salud said.

Salud reiterated that findings of non-compliance are not deliberate on the part of the players concerned but borne out of lack of awareness/knowledge of tax matters.

The tax forum was an offshoot of the BIR’s filing of a tax evasion case against Talk n’ Text players Jimmy Alapag and Jared Ryan Dillinger.

Alapag and Dillinger were assessed a combined tax deficiency of P31.23 million.

Based on the complaint filed by the BIR at the Department of Justice, Alapag failed to file his income tax returns as well as value added tax returns from 2007 to 2010. His tax liability was computed at P17.86 million, inclusive of surcharge and interest.

Dillinger, on the other hand, was found to have failed to file his income tax returns from 2008 to 2011.

He also did not file his percentage tax return for 2008 and failed to file his value added tax returns from 2009 to 2012. His tax deficiency stood at P13.37 million, including surcharge and interest, the BIR said.