Friday, April 6, 2012

News Update BIR: Pacman is 135th top taxpayer in 2010

World boxing champion and Sarangani Rep. Manny Pacquiao slid to 135th spot in the country’s Top 500 individual taxpayers in 2010, just two years after topping the list in 2008, latest data from the Bureau of Internal Revenue (BIR) showed.
For individual taxpayers, the top 10 noticeably did not contain the Filipino billionaires on the Forbes magazine list of wealthy individuals.

BIR Commissioner Kim Henares explained that Forbes magazine counts the market value of the individual’s assets, which do not have tax implication unless the assets are sold or have earned dividends.

“The way Forbes compute is based on market valuation of their known assets which as long as these remain an asset does not have a tax consequence,” Henares told The STAR.

BIR records showed that Pacquiao paid P9,190,691 in taxes in 2010, making him only the 135th top individual taxpayer in the country despite having a taxable income of P504.5 million.

BIR records showed that Pacquiao’s income was more than twice the taxable income of businessman Vicente Lao who was listed as the top taxpayer for 2010.

Lao had a taxable income of P235 million in 2010 and paid P75 million in taxes.

In 2008, Pacquiao paid over P125 million making him the top taxpayer that year.

The BIR’s inquiry was reportedly prompted by the drastic decline in the taxes paid by Pacquiao who was eventually charged with contempt last February for failing to submit the required financial records to the bureau.

The BIR filed contempt charges against the boxing champion for ignoring the BIR’s letters requiring him to submit documents to the agency regarding his earnings and corresponding tax payments.

BIR regional director Rozil Lozares issued a Letter of Authority to the boxing icon requiring him to submit documents regarding his earnings.

The BIR said Pacquiao’s tax payments substantially declined to some P7 million in 2009 from P125 million in 2008.

Pacquiao apparently snubbed the BIR’s request for documents.

The BIR wants to investigate 33 tax records, including Pacquiao’s annual income tax return in 2010, his book of accounts, list of assets, as well as his earnings from his fights against Antonio Margarito and Joshua Clottey.

After Lao, businessman Rolando Hortaleza placed second in the Top 500 individual taxpayers for 2010 with P69.665 million in taxes. Filmmaker Carlo Caparas, once the subject of a tax case filed by the BIR, came in third with P65.670 million in taxes.

For non-individual taxpayers, communications giant Smart Communications topped the list with P11.456 billion in taxes for 2010.

Other top corporate taxpayers were Chevron Malampaya LLC (4.378 billion) and Shell Philippines Exploration with P4.327 billion.

Nestle and San Miguel placed fourth and fifth, with P4.277 billion and P4.206 billion, respectively.