BIR Denies Freezing Pacquiao’s Bank Accounts

Following reports on Tuesday that bank accounts of WBO champion and Sarangani Rep. Manny Pacquiao has been freeze, the Bureau of Internal Revenue (BIR) on Wednesday has denied that they issued no such order.

BIR Commissioner Kim Henares, in a television interview on Wednesday, said Manny Pacquiao’s tax case has been pending for about two years now and that the revenue agency has given the boxer every opportunity to address his tax liability. She added they issued a notice of levy to Pacquiao of his tax liability.

Attorney Paul Velasco of the BIR litigation department said there is a pending motion in court that stops the BIR from collecting on the alleged tax deficiency of Pacquiao, Gma News Online said.

Velasco has said that while the motion is pending Pacquiao should still be able to access his bank deposits.

The boxing champ’s promoter, Bob Arum, said the Pacquiao is “religiously” paying his tax obligations and what is needed is a certification from the United States’ Internal Revenue Service (IRS) stating the tax payments Pacquiao has made, Gma news Online reported. Arum said the IRS has yet to issue that certification.

Arum also said Pacquiao’s tax payments are made in the form of withholding taxes and via electronic payments, Gma News Online reported.

Reporter Ivan Mayrina of GMA News’ said the BIR did issue a warrant of garnishment last June but only 13 banks responded to the warrant. The BIR learned from two banks that Pacquiao has a total of about P1.1 million in deposits, Gma News online said.

Reports said the BIR wrote to 35 banks and only 11 responded saying there are no Pacquiao active bank accounts with them and two said the Pacquiaos have accounts with them.

Under Chapter II, Sec. 205 to 208 of the National Internal Revenue Code (NIRC), the BIR Commissioner or his duly authorized representative can resort to seizing or “distraint of goods, chattels, or effects, and other personal property of whatever character, including stocks and other securities, debts, credits, bank accounts and interest in and rights to personal property, and by levy upon real property and interest in rights to real property” to collect delinquent taxes.

For bank accounts, a warrant of garnishment is to be served “upon the taxpayer and upon the president, manager, treasurer or other responsible officer of the bank.” The code added the bank shall then turn over to the BIR Commissioner “so much of the bank accounts as may be sufficient to satisfy the claim of the Government.”

In an interview on GMA Network’s Unang Balita on Wednesday, Commissioner Henares said Pacquiao’s tax case has been pending for about two years already and that they have given the boxer every opportunity to address his tax liability, Gma News Online reported.

Source: Gma News Online