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'Paying US taxes not Pacquiao’s duty’


WelshDevilRob
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'Paying US taxes not Pacquiao’s duty’

 

"They said that responsibility lies with his promoter, Top Rank Promotions"

 

 

By JUN RAMIREZ

 

 

Manila, Philippines – Tax experts and veteran officials from the Bureau of Internal Revenue (BIR) opined yesterday that it is not the duty of boxing icon Manny Paquiao to file and pay income tax in the United States out of his earnings from boxing there.

 

 

They said that responsibility lies with his promoter, Top Rank Promotions owned by Bob Arum, under the US withholding tax system upon which the withholding tax system provision in the Internal Revenue Code (NIRC) of the Philippines was copied.

 

 

The tax experts said that under the scheme, Pacquiao gets his cash prize net of tax and that the same formula is applied when Paquiao receives his pay for endorsing commercial products and his share from the pay-per view proceeds of his boxing fights.

 

 

In case of deficits in the payment of the final withholding tax, they said Bob Arum’s obligation is to remit the deficiency to the Internal Revenue Service (IRS) of the US and later he should ask Pacquiao to reimburse it because the solon is considered non-resident alien.

 

 

They said, however, it would be a different issue if Pacquiao is a holder of a dual citizenship and engaged in business or trade in the US.

 

 

The tax experts issued the comment following news reports that the IRS is going after Pacquiao for the unpaid taxes out of his boxing matches in the US although his camp denied the report.

 

 

They said Pacquiao’s situation could be likened to international artists performing in the country.

 

 

They said tax liabilities of Madonna, Justin Bieber and other foreign singers who visited the country were paid by their local organizers like Ovation Productions and not by the entertainers themselves.

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Re: 'Paying US taxes not Pacquiao’s duty’

 

Is it me, or is the US tax system almost designed to trap people into huge backdated tax bills at moments when they least expect it?

 

Unless it differs significantly for ultra-rich people, the UK system is relatively straightforward: an employer files an annual tax return by a set date stating the company's earnings for the year,anything it feels is deductible through allowances etc. and the taxman sends them a bill for the tax. The employer has already deducted the appropriate percentage value from each employee's salary and set this aside for tax and national insurance. The employer then pays the bill within a couple of months of receiving it or else is fined and prosecuted.

 

I've never heard of anyone being ambushed by a giant tax bill in the UK 12 years after the event, so why does it seem a weekly occurrence in America?

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Re: 'Paying US taxes not Pacquiao’s duty’

 

Gav its merely that the individual has more responsibility to pay his income Tax, however Im sure it never occurred to Manny that he would have to pay Tax on the millions he was earning because he thought it would already be sorted.....yeahhhhh right :mlol:

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