Was Manny Pacquiao Avoiding The IRS?
By Erwin Lastimosa
Manny Pacquiao has been a world title holder spanning many different weightclasses. The vast majority of his boxing matches in recent years have taken place in the United States. As such, his income from these boxing matches is taxable in the U.S. and he must comply with IRS law (substantial presence test).
The United States is very strict in it’s IRS tax laws and incorrect reporting of income is subject to a IRS audit. The IRS law covers any individual deriving income in the U.S. they must file a proper tax return. Some people suggested that Manny Pacquio is trying to get tax relief by training outside of the United States. He is not avoiding the IRS, he just avoiding paying extra IRS taxes.
IRS help is systematically provided on any questions regarding IRS law or IRS audit, but it is advisable for an individual in Manny Pacquiao’s situation to consult tax attorneys specializing in IRS law and IRS audit, especially on complicated or difficult interpretation of the IRS law or in case of IRS audit where IRS help is no longer applicable.
In the case of Manny Pacquiao it is not a very complicated matter. It is just the compliance of substantial presence test usually applicable is the amount of income taxes that Pacquiao should pay under the IRS law.
How an individual can be considered a U.S. resident for tax purposes depending on his physical presence in the U.S. refer to IRS law.
Pacquiao fights are one of the highest Vegas boxing ticket sales. The boxing match tickets are always selling very fast whenever the Pacman has a up coming fight scheduled. The moment a live boxing match is scheduled, featuring Pacquiao the boxing machine from the Philippines, tickets quickly sell out. In fact the Pacquiao tickets are nearly sold out for his upcoming fight. There are no longer any cheap boxing tickets available for his fight with Miguel Cotto on November 14.
Vegas boxing tickets are available months earlier whenever the boxing match involves Manny Pacquiao. The same as a Mayweather Ticket or De La Hoya Ticket. These superstar names make Vegas boxing ticket prices high and their obligation to follow IRS law should not be ignored. So you can see why Manny trained outside of the the U.S. to avoid tax problems not the IRS.
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So Pacquiao was avoiding Taxes?
The more I want Cotto to KO him!
Hoy JEFE you stupid did you not read the article??? are you a moron? Pacquiao pays his Taxes he just didnt want to have to pay additional taxes and there is a rule on the IRS LAW… you are so ignorant it is not even funny
So JEFE are you stupid?
Well there’s nothing wrong about finding ways to cut costs as long as it’s legal. If the law says that if you stay for over a certain amount of days you’ll have to pay a fee, then you should be smart and stay less than the amount of days the law stated if you don’t want to pay what you can legally avoid.
The writer is recycling news that is 5 months old or even older.
Good Article I never knew what that shit was, why pac had to fight outside they never really explained it.
They really take a good chunk of your money. I hope pac just saves his cash wisely
This issue is just about where a person is taxable. We have this same set rules in the Philippines for Foreigners doing business in the Country. It is just normal and legal to find ways to effectively manage your tax costs. You can never avoid taxes legally, but you can and you are allowed to manage it well, just like Pacman…
just my 2cents worth of opinion
This article will not sit well on readers who have no idea on manging taxes. This can leave BAD impression against the PACMAN for no good reasons. Stop being Crab Erwin.
PACspy
Thats cool! I never knew about these things, its cool to find out about these deductions so basically normal people can get these type of deductions too? what is deductible only if you have a business?
PACspy how is Erwin being a Crab?
A CRAB IS WHAT HANGS on pacs Pubic Hairs LOL
Thats what all these PAC FANS ARE CRABS
JAJAJAAJAJAJ
You are correct Rolly. Everybody is subject to this rule, which is basically standard in most countries. If you are considered taxable in the country where you are doing business using above mentioned substantial presence test, your entire earnings in that country will be subjected to the tax rules applicable in that country. There are also other set rules you can use to minimize tax deductions you are earning from other countries – by applying applicable tax treaties. This is to prevent double taxation (being taxed locally and outside your country).
EL JEFE
If you didn’t know what I meant by saying Crab. try to think what you felt or realized just after reading the article….
now, did you get it? if you don’t, try consult a doctor…
LOL PACspy you are funny
Maybe you need to consult a doctor! For thinking Pac has a shot agaisnt Cotto!
Gran Campeon!
Stupid writer…fuck you asshole. write something more legitimate fucking asshole!
Are you one of those writers that trying to cash in with Pacman’s name? You’re just like Mike Marley. Every writer write something about Pacman, but you guys are cashing in. Stupid bastards. Leave boxing issues if you do not know anything about boxing…idiot! I’m sick you gay writers, maybe you guys jus get together and fuck each other’s assess. Asshole. LOL
Oh yeah, do you want to pay taxes? Fucking idiot! Don’t every write article again. Who the fuck is your Editor? Fucking stupid writers!!! Fuck all of you gay writers! LOL. Go fuck each other assess. ‘Is Pacquiao is avoding IRS”. Pacman already paid too much taxes in America asshole. What the fuck? Fuck yourself you fucking idiot!
lol Wow
Caveman why are you so angry at this writer? I do not see anything negative he said bro.
Relax you are acting crazy man he just did a Catching Title they do that on yahoo its to grab the attention of the reader, if you actually read this guys article he is not bashing pacquiao.
Caveman I suggest you not use internet for a week you are really strange bro.
calm down and take a deep breath.
And some of you actually agreed to this fucking asshole. everyone in America pays taxes idiot! Have you fucking noticed on your paycheck that taxes have been taken been taking out? Stupid assholes. LOL.
ANYONE BELIEVE THAt THE PACMAN WILL LOSE…FUCK YOU ALL! HE WILL KICK COTO’S ASS. JUST LIKE HATTON. FUCKERS!!! GO FUCK YOURSELF!!!! HAHAHA
Caveman, you give pac fans a bad name. Why are you so angry? when did the writer say pac never pays taxes, I think the writer was just explaining to people who were questioning pacs reason for not training in America.
If you look at other message board they are attacking pacquiao like he dont pay taxes.
This writer is not attacking pacquiao but explaining why he trained over sea.
you are really strange man just attacking people for no reason because 1 sentence got you mad?
PINOY POWER! WE KICK ASS MOTHERFUCKERS! COME TO VEGAS WE WILL SHOW YOU HOW BAD ARE THE PINOYS ARE!
Ondok, the negative is the fucking title…don’t you see that?
Caveman lol, thats a question he never made a statement they call that eye catching title so you can read more…look on yahoo news or aol news they do the same like is This person going to Jail? or is this celeb a Crook?
You didn’t even read the article pare so please do not talk man you are making us pacquiao fans look like angry.
Maybe Caveman doesn’t understand English? This guy is very hyper like scary man.
Yes, this is just a catching title that works for the writer, BUT nails against Pacman.
The writer didn’t even establish well his stand. the only thing he did wrote was “He is not avoiding the IRS, he just avoiding paying extra IRS taxes”, without expounding one bit.
Because the fact of this issue, other than the total taxes pacman will incur, is where the big chunk of the taxes will go. In the Philippines or in America. And if you will ask Manny, he will definitely want to give the big chunk to the Philippines.
There are only two things certain in life, DEATH & TAXES….
This kind of fans(caveman) will suffer alot if pacman loss the bout.. And maybe it will give him anxiety and if doesnt occur immedietly it will turn into mental illness… Fraud a master psychology said that.. ”unconcious” that makes man crazy! Sad to say. Hope pacman will not loss coz this freak caveman will throw to mental hospital!
To EL JEFE, read & understand this:
“He is not avoiding the IRS, he just avoiding paying extra IRS taxes”.
And you’re still arguing with people…
You are an IDIOT !!!
no need for all of this cussing…pacman pays his required US taxes. He trained outside of the US to avoid going over the “days in US” limit which accrues over 3 years. If he goes over the limit, he has to pay taxes to the US not only on what he makes here, but on what he makes all over the world. This article is old news, just trying to stir up controversy before the fight. Any smart person reading this can see that….all this was already explained in detail in previous articles some weeks ago. Look them up. What Manny is doing is perfectly legal & smart.
That Caveman guy reacts before he thinks lol. His name is very fitting CAVEMAN because he has the mentality of a primitve caveman, react first thinking last haha
Boys, boys let us stop the name calling. So many busineses anywhere in the world are avoiding taxes legally and illegally.
Mayweather did it! A lot of actors were into it, so keep call and keep your eyes on the gloves, er ball!
I believe that IRS wanted to tax also the income that comes from outside the US by that law. Pacquiao pays all taxes on income in the US.
who gives a rats ass!
Somebody please fix the grammar in this article… really atrocious.
The title is incorrect.
Pacquiao trained in the Philippines so he will pay less US taxes. THat is smart tax planning…not tax avoidance. The writer seems naive about the subject he is writing about.
Yes. Cost-cutting! So whats wrong with that???
At the end of the day, who loses in the end is the United States. Imagine all the businesses that could have earned some money if Pacman was training in the US- the restaurants Team Pacquiao goes to, the businesses they buy their necessities,etc. It is, IMHO, an inconvenience to Pacmans Training too, to be travewling all over the planet to train, what can he do. Some policy makers need to use common sense, and make exceptions.
I like the Klitschko Bros!
Every dollar ,every penny counts in converting it into Php(Philippine pesos).So,why not economize if there is a way to do it.What Mayweather was facing to the IRS before won’t happen to Pacquiao.
He is a Filipino citizen,after paying all his dues in relation to his professional boxing fight in the main ,then he will be back home.My hope and prayer for Pacquiao is to bring back with him the fruit of thy labor,a great win against Cotto.
Avoid extra tax to have something more to help the poor! Isn’t it Manny?
This article is crap and rubbish. The writter is spinning irrelevant issue which does not hold water and people quickly post stupid comments.
OK morons, first of, Pacquiao pays his taxes due at every fight so it is not a case of Mayweather doing “creative accounting” only to be found out later and chased with a heavy fine. What Pacquiao is avoiding if the clause of the technicallity where his no of stay would subject his earnings even in the Phils to be taxable. Why would Manny be taxed for his endorsement and other sources of income in the Phils when he is already taxed for the same in his country. That is called double taxation and only morons like you people would walk into that kind of careless and costly mistake!
Grow up people!
You remind me of a treasure hunter searching for the Golden Bhudda when it already has been found.