Manila: A Senator and House member defended Manny Pacquiao from apparent persecution by the revenue bureau in connection with alleged non-payment of taxes in his fights in the United States.
In separate statements, both Senator Ralph Recto and Representative Amado Bagatsing said that Pacquiao, 33, deserves better treatment from the Bureau of Internal Revenue (BIR), which they said is portraying the Sarangani Representative as a "tax evader."
"How much goodwill and pride has he given to the country? Manny deserves a better treatment," Recto, who co-chairs the Joint Oversight Committee on the Proper Implementation of the National Internal Revenue Code said.
Pacquiao was recently charged by BIR collection for failing to "obey the summon" of the BIR to explain discrepancies in his declared income.
The wealthy Sarangani lawmaker was also ordered to show tax records in 2010 as owner of the Pacquiao Group of companies.
For his part, Rep. Amado Bagatsing, House Games and Amusement Committee chair, said that the issue concerning Pacquiao's declared revenue involves earnings he made in his million dollar fights in the US.
The lawmaker said that the Philippine government will be committing "double taxation" on Pacquiao's winnings and earnings outside the country.
Just like Recto, Bagatsing said that the government should have given consideration to the honour given by Pacquiao to the country instead of going after him for perceived tax evasion.
Recto stressed that Pacquiao's earnings from his fights in the US should no longer be taxable since he has already paid for it with the Internal Revenue Service (IRS).
"His income was not generated from here and he has already paid his taxes in the US. That would be double taxation," Recto said.
Similar to OFWs
Recto and Bagatsing said Pacquiao's case is similar to that of overseas Filipino workers.
"OFWs (overseas Filipino workers) earnings which are derived from working abroad are not subject to tax. I think the same principle should also apply to Pacquiao, who may not be a true-blue OFW but still our very own ‘Overseas Fighting Worker'," Recto said.
The senator said he was appalled on how Pacquiao is being treated here compared to the "respect and adulation" that he enjoy before the global sporting community.
He said Pacquaio's wealth is borne out of hard work and not a mere inheritance from affluent relatives or from lotto winnings.
"Why don't they try getting clobbered in the ring to see for themselves the beating Pacquiao experience everytime he fights," he said as he referred to the BIR. "Why are they doing this to him?" he added.
He said even the people running after him would not be able to equal the amount of taxes that he paid in recent years, which had made him as one of the consistent top taxpayers.
He said the BIR could only run after Pacquiao's earnings from commercial endorsements and other local income-generating activities.
"It seems personalities who clobbered poverty and became successful are now natural suspects for tax evasion and ill-gotten wealth," Recto said.
