Palace denies Pacman’s bid for lifetime tax exempt

MANILA, Philippines - Malacañang finds unreasonable proposals in Congress to grant boxing champion and Sarangani Rep. Manny Pacquiao a lifetime exemption from income tax.

Press Secretary Herminio Coloma said granting income tax exemptions to athletes would not be a good precedent.

“We hold the same view that it is important for our citizens to support their government in the form of paying their correct taxes on the right time. With this as basis, we think that the proposal (exemption) is unreasonable,” he said.

“It is the duty of every citizen to pay the right taxes. Paying taxes is one of the basic obligations of every Filipino citizen. That is why we think that the proposal (of Congress granting Pacquiao lifetime tax exemption) is not reasonable.” 

Sen. Grace Poe also believes no exemption must be given any Filipino in paying taxes whether he is the President or a hero, but that Pacquiao must be given some consideration to allow him to settle any tax deficiencies before the Bureau of Internal Revenue (BIR).

“All of us, whether the President or a hero has the responsibility to help boost the government coffers,” she said in Filipino. 

“But I hope Pacquiao will be given enough consideration to resolve the situation he is in.” 

On the other hand, Senate Deputy Minority Leader Vicente Sotto III said Pacquiao must be exempted from taxes for bringing honor to the country.

“Athletes should be exempt from taxes if winnings are from abroad,” he said in a text message.

Valenzuela Rep. Magtanggol Gunigundo has filed a bill seeking to exempt Pacquiao from income tax for life.

The boxer doesn’t deserve “ignominious treatment” from the BIR, he added.

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

It has garnished Pacquiao’s bank accounts containing P1.1 million.

Pacquiao is contesting the BIR’s assessment before Court of Tax Appeals.

He has already paid the taxes in the US, he said.

However, the BIR said it has not received official documents that would prove the payments.    – With Christina Mendez