Boxing icon, Manny Pacquiao has taken a huge socking to the face after allegations from the Internal Revenue Service (IRS) emerged, claiming he owes them a whopping $18.3 million. The news came just weeks after “Pac Man’s” bank account and assets were frozen by the Phillipine government due to an alleged $50 million in unpaid taxes from 2008-2009. MP hit back by claiming his income had come from the US during those years and he had paid the IRS the correct amount of his winnings.
Yet recent reports from the IRS shed new light on the case, and create even bigger questions on if and to where Pacquiao’s tax money has been sent. His debt to the IRS was racked up from 2006-2010, which means $11 million relate exactly to the years he claimed to the Phillipines he was paying the US. PM is now fighting for China due to the lower tax rate of 12% compared to America’s 39.6%.
Manny Pacquiao adamantly opposes the charges: “I have already paid my taxes in America. Had I not paid the correct taxes they would have come after me and I would not have been able to travel there.”
Although the fighter continues to deny the allegations, it seems unlikely he’ll get out of this crisis scot-free. Boxing enthusiasts have encouraged Pacquiao to simply box his way out like he knows best with a 24-hour fight against the world’s top fighters. Winning a tournament such as that would surely be enough to pay off his taxes.
Rather than undergoing such a gruelling and risky operation, however, we agree with House Minority Leader Ronaldo Zamora that Pacquiao should simply seek high quality lawyers and expert advice from corporate accountants and consultants. Had MP simply ensured he had high quality accountants prior to owing various countries $68 million, he could have easily avoided such a conundrum.
Although your financial woes probably aren’t on the same scale as this world class boxer, it is still a lesson to get your tax right by using a leading chartered accountancy firm in Australia. Tax can be confusing and paying the small fee of a professional accountant is vastly insignificant to larger tax issues, which can evidently add up to millions of dollars. Go to Nexia Australia early before you end up embroiled in tax issues like the rather unfortunate Pac Man.