SC orders Pacquiao to comment on BIR’s motion to pursue collection of over Php2 billion tax due

By on October 7, 2014


People's Champ and Sarangani Representative Manny Pacquiao. Photo by Chris Farina / Pacquiao's official Facebook page
People’s Champ and Sarangani Representative Manny Pacquiao. Photo by Chris Farina / Pacquiao’s official Facebook page

MANILA — The Supreme Court (SC) has ordered Filipino boxing champion and Sarangani Rep. Emmanuel “Manny” Pacquiao to comment on the motion for reconsideration (MR) of the Bureau of Internal Revenue (BIR) to lift the restraining order and pursue the collection of over Php2 billion tax due, including penalties and surcharges.

The SC Third Division earlier issued a temporary restraining order (TRO) stopping the order of the Court of Tax Appeals (CTA) directing Pacquiao to deposit a Php3-billion cash bond or Php4-billion surety bond.

Aside from stopping the deposit of a Php3-billion bond, the SC also ordered the CTA First Division to conduct a hearing of the said case, as well as the warrant of distraint and levy issued by the BIR against the bank accounts of Pacquiao.

With the SC order, the BIR cannot yet collect the alleged tax deficiency of the Filipino boxing champion.

In the resolution, the SC gave Pacquiao a period of 10 days within which to answer the MR filed by the BIR.

The BIR filed the MR to the SC’s Aug. 22, 2014 ruling that stopped the CTA from collecting Php3-billion cash bond to Php4-billion surety bond from Pacquiao and his wife Jinkee in exchange for lifting of warrant of distraint and levy and garnishment by the BIR.

Pacquiao went to the SC after the CTA required him to either deposit a cash bond in the amount of Php3,298,514,894.35 or to post a surety bond in the amount of Php4,947,772,341.53 as a condition for the suspension of collection of deficiency income taxes.

The same SC ruling also stopped the BIR from implementing the warrant of distraint and levy against Pacquiao.

In a separate motion, the BIR also asked the SC to set a hearing on their MR.

Pacquiao’s tax liability was placed at Php2.2 billion.

According to the BIR, the bond was based on the updated amount, including surcharges and penalties.