Thursday, March 15, 2012

Pacquiao finds ally vs taxing earrnings from boxing


source: Maila Ager | INQUIRER.net

MANILA, Philippines — World boxing champion and Sarangani Representative Manny Pacquiao found an ally in Senator Ralph Recto, who believes that his earnings from his fights in the United States should be exempted from tax.

Recto, chairman of the Senate committeee on ways and means, said Pacquiao’s earnings from his fights in the United States should no longer be teaxable since he has paid part of it to the Internal Revenue Service.

“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 tru-blue OFW but still our very own ‘overseas fighting’ worker,” the senator said in a statement on Thursday.

It would “double taxation,” Recto said, if Pacquiao would pay his taxes here when he has already paid in the US.

“That would be double taxation,” he said.
Recto said the Bureau of Internal Revenue should only run after Pacquiao’s earnings from commercial endorsements and other local income-generating activities.


The BIR, the senator said, should give Pacquiao a better treatment instead of “unwittinly portraying” him as a tax evader.

“How much goodwill and pride has he given to the country. Manny deserves a better treatment,” he said.

“Sila kaya ang sumubok na magpagulpi sa ring? Bakit nila ginagawa ito sa kanya?” asked Recto
Recto pointed out that Pacquaio’s wealth was borne out of hard work and not a mere inheritance from affluent relatives or from lotto winnings.

“It seems personalities who clobbered poverty and became successful are now natural suspects for tax evasion and ill-gotten wealth,” the senator added.