Senator Manny Pacquiao could have easily avoided his P3-billion tax evasion case had he presented outright to the Bureau of Internal Revenue (BIR) his income tax payments from the United States' (US) Internal Revenue Service (IRS).
Several former and present BIR officials made the remark after President Duterte accused the boxing hero-turned-politician of being a tax cheat, apparently a retort for describing his administration as more corrupt than the previous ones.
The sources, who declined to be named, said that had the boxing icon promptly submitted the tax papers sought by the bureau, he could have been made to pay minimal taxes or even claim a refund out of his multi- million dollar prize winnings for successfully defending his various boxing titles in 2008 and 2009 in Las Vegas in the US.
They explained that the IRS withheld 39 percent of the prize money as income tax, which the boxing icon can claim as deduction in his income tax returns as stipulated under the tax treaty signed by both Washington and Manila to avoid taxing their citizens twice.
Likewise, Pacquiao is entitled to claim deductions for transportation and hotel expenses as well as payments for coaches, trainers, and aides.
The same sources said the IRS had actually furnished then-BIR Commissioner Kim Jacinto-Henares with copies of Pacquiao's withholding tax certificates.
But the BIR wanted the lawmaker to submit the original copies of the documents to match them with the bureau's records.
"We are not his lawyer, accountant to prepare and present evidence for him (Pacquiao)," a former top BIR official said.
The solon's tax debts was initially placed at more than P1 billion, but has since soared to P3.2 billion--and counting--due to the one-time 50 percent surcharge and yearly interest of 20 percent until the case is resolved by the Court of Tax Appeals (CTA) and the Supreme Court (SC).
Pacquiao has been insisting on fully paying his tax liabilities, even as the BIR declared him as its top individual income taxpayer in 2013 for remitting more than P138 million.