He may be able to knock out prize fighters in the ring, but that doesn’t mean eight time world champion boxer Manny Pacquiao is free from the tax man.
Tax authorities in Pacquiao’s home country the Philippines are looking into the “Pac Man” and whether he’s paid his fair share of taxes. Pacquiao recently received a criminal complaint from the Philippines Bureau of Internal Revenue – think of it as the Filipino IRS – for failing to cooperate in its investigation.
Officials accuse him of stalling when it comes to producing documents about his fighting contracts and product endorsements. They’re being sought by the bureau’s tax investigators.
Pacquiao’s record in the ring is strong (54-3 with two draws) and so are his assets. He declared more than $26 million in assets in May 2011 with no liabilities. He’s also a member of the Filipino parliament, and its richest member.
Like other high-profile professional boxers, Pacquiao makes serious bucks. He reportedly earned $35 million for fighting Josh Clottey and Miguel Cotto. So he can be sure that the IRS is keeping an eye on his tax returns as well.
As for the tax authorities back home, they haven’t decided whether to file charges against Pacquiao. He said in a television interview that he wasn’t evading the tax man.
If you find yourself in a similar situation as the Pac-Man and owe the taxing authorities back taxes, don’t roll up your sleeves and go toe-to-toe with the IRS alone. By hiring a tax attorney or tax professional, you’ll have a strong corner when you get into the ring, helping you take a fair swing to knockout penalties, garnishments, and bank levies.
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