DoJ junks Pacquiao tax case
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MANILA, Philippines—The Department of Justice (DoJ) dismissed the tax case filed by the Bureau of Internal Revenue against boxing champ Manny Pacquiao.
BIR ordered Congressman Pacquiao to submit documents to properly assess him to determine if he has a tax liability or not.
The BIR filed a case for violation of Section 266 of the National Internal Revenue Code (NIRC) against the boxing champ for failure to obey summons sent to him by the BIR.
In an eight-page resolution, the DoJ said there was no valid service of summons when Revenue Officer Abdul Jalil J. Taratingan delivered the subpoena in General Santos City and gave it to a certain Jocelyn Nebria instead of Pacquiao.
“It would be absurd to hold respondent liable for neglecting to obey a subpoena which he [Pacquiao] did not receive at all, in the first place,” the DoJ through Deputy City Prosecutor Arnold Cruz said.
The DoJ said Taratingan’s action is contrary to Revenue Memorandum Order No. 88-2010 which requires for a personal service to the person being summoned. It pointed that it is only upon refusal on the part of the respondent, in this case Pacquiao, to receive the summons that it can be given to another person.
The DoJ said, “there being no refusal on the part of the respondent [Pacquiao] to receive, resort to substituted service is irregular and ineffectual.”
Seen as the world’s best pound for pound boxer, Pacquiao declared assets at the end of 2010 at P1.13 billion and no liabilities, making him the country’s wealthiest member of Congress.
Forbes.com magazine early this year estimated he spent $7 million in his election campaign in 2010 while also earning $35 million for his two fights against Joshua Clottey and Miguel Cotto.
The BIR opted to investigate Pacquiao after paying only P7 million in taxes in 2009 from P125-million in 2008.
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