Skip to main content

Manny Pacquiao's promoter says fighter will be vindicated over tax dispute

By Tim Hume, CNN
updated 4:33 AM EST, Wed November 27, 2013
Manny Pacquiao wears the champion's belt after defeating Brandon Rios on Sunday, Nov. 24, 2013, in Macau. Manny Pacquiao wears the champion's belt after defeating Brandon Rios on Sunday, Nov. 24, 2013, in Macau.
HIDE CAPTION
Philippines cheers Pacquiao win
Philippines cheers Pacquiao win
Philippines cheers Pacquiao win
Philippines cheers Pacquiao win
<<
<
1
2
3
4
>
>>
STORY HIGHLIGHTS
  • Filipino boxer Pacquiao has had his assets in his homeland frozen
  • Philippines tax authorities are seeking proof he paid $50 million in taxes on U.S. earnings
  • Pacquiao's promoter says he is seeking documentation from U.S. tax authorities
  • The freeze has delayed the boxer from delivering promised typhoon relief

(CNN) -- The promoter for famed Filipino fighter Manny Pacquiao says he expects to swiftly resolve a dispute with the country's tax authorities that have led to the boxer's assets being frozen in his homeland.

The 34-year-old Pacquiao, who is also a second-term Philippines congressman, announced Tuesday his domestic bank accounts had been frozen, along with his wife's, over allegations he had evaded paying $50 million in taxes on highly-paid bouts in the United States.

The move has prevented the boxer from following through on a pledge to help victims of Super Typhoon Haiyan on the back of his comeback win over American Brandon Rios in Macau over the weekend.

READ: 'Pac-man' thumps 'Bam Bam' to take title in Macau

Pacquiao not contemplating retirement

Pacquiao dedicated his victory to those affected by the disaster, tweeting after the fight: "Yesterday's victory wasn't about my comeback but a symbol of my people's comeback from a natural disaster and a human tragedy."

The fighter told reporters in his hometown, General Santos City, that he had paid the correct taxes in the United States, and was not required to pay additional tax in the Philippines under a treaty preventing double taxation.

"I am not a criminal or a thief," he said. "The money ... is not stolen... This came from all of the punches, beatings, blood and sweat that I endured in the ring."

Pacquiao's promoter, Bob Arum of Las Vegas-based Top Rank, said in a statement that Pacquiao had paid the necessary taxes to the United States government from the period under scrutiny, which included Pacquiao's boxing heyday from 2008-9. "Filipino authorities confirmed that Manny is not required to pay double tax," he said.

He said Top Rank had paid monies owed from Pacquiao's earnings -- 30% of fight purses -- to the U.S. Internal Revenue Service (IRS) via electronic funds transfer (EFT), and had submitted copies of deposit acknowledgments to the Philippines Bureau of Internal Revenue (BIR) as proof of payment.

But the tax authorities had rejected the documents as proof.

"The BIR received the documents but directed Manny to obtain 'certified' documents directly from the IRS itself," he said.

"As I am sure people appreciate, obtaining certified copies of documents from the IRS takes time. Manny made the formal request to the IRS and we have every expectation that the necessary documents will be furnished to the BIR very soon."

Pacquiao's unanimous points victory over Rios was seen as reviving his career following a knock-out loss to Mexico's Juan Manuel Marquez in December 2012. The win in Macau raised spirits in the Philippines, where thousands of fans in the city of Tacloban, one of the hardest struck cities, gathered to watch the fight in public spaces.

ADVERTISEMENT
Part of complete coverage on
updated 9:54 PM EST, Tue December 23, 2014
A decade on from devastating 2004 Indian Ocean tsunami, the Red Cross' Matthias Schmale says that the lessons learned have made us safer.
updated 7:24 PM EST, Tue December 23, 2014
As soon as word broke that "The Interview" will hit some theaters, celebrations erupted across social media -- including from the stars of the film.
updated 1:44 PM EST, Tue December 23, 2014
Did a rogue hacker -- or the U.S. government -- cut the cord for the regime's Internet?
updated 8:06 PM EST, Tue December 23, 2014
Monaco's newborn royals, Princess Gabriella and Crown Prince Jacques Honore Rainier, posed for their first official photos with their parents.
updated 12:06 PM EST, Tue December 23, 2014
Tim Berners-Lee, the man credited with inventing the world wide web, gives a speech on April 18, 2012 in Lyon, central France, during the World Wide Web 2012 international conference on April 18, 2012 in Lyon.
What's next for the Internet? Acclaimed scientist Sir Tim Berners-Lee shares his insights.
updated 3:22 AM EST, Tue December 23, 2014
The United States and North Korea have long been locked in a bitter cycle of escalating and deescalating tensions. But the current cyber conflict may be especially hard to predict.
updated 4:00 PM EST, Mon December 22, 2014
A chilling video shows Boko Haram executing dozens of non-Muslims.
updated 6:34 AM EST, Mon December 22, 2014
New planes, new flight tests ... but will we get cheaper airfares?
updated 12:46 PM EST, Sun December 21, 2014
The killing of two cops could not have happened at a worse time for a city embroiled in a public battle over police-community relations, Errol Louis says.
updated 9:51 PM EST, Sun December 21, 2014
The gateway to Japan's capital, Tokyo Station, is celebrating its centennial this month -- and it has never looked better.
updated 11:21 AM EST, Sat December 20, 2014
Unicef has warned that more than 1.7 million children in conflict-torn areas of eastern Ukraine face an "extremely serious" situation.
updated 12:01 PM EST, Mon December 22, 2014
Each day, CNN brings you an image capturing a moment to remember, defining the present in our changing world.
Browse through images from CNN teams around the world that you don't always see on news reports.
ADVERTISEMENT