Metro Manila (CNN Philippines, October 8) — The Court of Tax Appeals has ordered the cancellation of ₱2.229-billion taxes of former Senator Manny Pacquiao, citing lack of sufficient basis for the tax assessments against the world boxing champion.
“In sum, the court finds that the subject assessment for deficiency income tax is void for violation of petitioners’ right to due process and for lack of sufficient factual basis,” the court said in the decision written by Special Third Division Chairperson Erlinda Uy.
The Bureau of Internal Revenue (BIR) in 2012 claimed that Pacquiao and his wife Jinkee owed more than 2.2 billion pesos ($37 million) in unpaid taxes for the years 2008 and 2009.
The couple’s taxes totaled ₱766.889 million in 2008 and ₱1.433 billion in 2009.
BIR froze Pacquiao’s bank accounts and assets in 2013 due to a tax deficiency assessment for both years.
Pacquiao earlier insisted that he has paid taxes in the United States (US) and would not need to pay in the Philippines as the countries have an agreement to avoid double taxation among citizens.
The taxes from the income in question are those that Pacquiao earned from his professional fights and for being a product endorser with various commercials and television appearances in the US and not the Philippines.
The Pacquiaos submitted their appeal in the same year that the final assessment of the ₱2.261 billion in unpaid income tax and VAT was released.
The Court also found that the tax office had relied on “unverified news articles” to make its assessment.
“Since the start of my career, I have made sure to pay all my taxes because this helps our government,” Pacquiao said in a statement. “I thank the Lord that the truth has come out.”
The tax office has yet to announce if it plans to appeal the decision. The ruling was handed down on Sept. 29 but was released on Friday.
According to Senate records, Pacquiao’s net worth was over $54 million in 2020.
