Barcelona’s Messi sentenced to 21 months for tax fraud

BARCELONA — A court in Spain on Wednesday sentenced Barcelona striker Lionel Messi and his father to 21 months in jail for tax fraud and slapped them with a fine of 3.7 million euros ($4.1 million).

But these prison sentences are likely to be suspended as is common in Spain for first offences for non-violent crimes carrying a sentence of less than two years.

A court in Spain on Wednesday sentenced Barcelona striker Lionel Messi and his father to 21 months in jail for tax fraud and slapped them with a fine of 3.7 million euros ($4.1 million).

But these prison sentences are likely to be suspended as is common in Spain for first offences for non-violent crimes carrying a sentence of less than two years.

The Argentina and Barcelona star and his father Jorge Horacio Messi were found guilty of using companies in Belize and Uruguay to avoid paying taxes on 4.16 million euros of Messi’s income earned from his image rights from 2007-09.

The income related to Messi’s image rights that was allegedly hidden includes endorsement deals with Banco Sabadell, Danone, Adidas, Pepsi-Cola, Procter & Gamble and the Kuwait Food Company.

source: sports.inquirer.net

Too early to talk of tax amnesty for Pacquiao

MANILA, Philippines—The possibility of extending amnesty to world boxing champion Manny Pacquiao for allegedly misdeclaring his income in 2009 is “a bridge that is too far away yet,” President Aquino said on Tuesday.

Aquino noted that Pacquiao, the representative of the lone district of Sarangani, had not even owed up to his tax deficiencies.

“I think the lesson has to be that if you are guilty of a particular crime, then…you have to exhibit a degree of remorse. But, at this point in time, he says that he has complied with all the requirements. So I think this is crossing the bridge that is too far away yet,” said Aquino, when interviewed at the 27th annual Bulong Pulungan Christmas Party.

Aquino explained that any amnesty proposal would emanate from his office and should be approved by Congress.

“Amnesty is (a) proposal by me (which) has to normally indicate, perhaps, a class of individuals, a group. It doesn’t refer normally to an individual,” said the President, when asked if he would be open to extending amnesty to Pacquiao.

An amnesty does not extinguish a taxpayer’s liabilities as it only condones penalties and does away with imprisonment for tax-evasion cases.

On Thursday, Revenue Commissioner Kim Henares said that Pacquiao “technically misdeclared” his income in 2009 when he stated in his tax return that he earned only less than P50 million in the Philippines and when he failed to include his earnings from his two fights in the United States that year.

Pacquiao’s gross income should have been closer to or even more than P1 billion, claimed Henares, who froze his bank accounts for allegedly failing to settle P2.2 billion in tax deficiencies.

Pacquiao, one of the world’s richest athletes, had just returned from a convincing victory over American Brandon Rios in a welterweight match in Macau when news about his tax problems resurfaced.

He protested the Bureau of Internal Revenues (BIR) move to freeze his bank accounts, insisting he had already furnished the bureau copies of tax returns submitted to the US Internal Revenue Service to show that he had paid his income taxes.

Pacquiao said he was not hiding or running away from his tax responsibility, and expressed confidence that the issue would be settled soon.

The BIR started to investigate and audit Pacquiao in late 2010 after an “abrupt” drop in his ranking among the country’s top taxpayers, said Henares.

From 2006 to 2008, Pacquiao was in the top 10 percent of highest taxpayers but he slid to the top 30 percent in 2009.

When the BIR audited him for his 2008 and 2009 income tax returns (ITRs), Pacquiao did not submit any documents, thus prompting the agency to subpoena him. He responded by executing an affidavit declaring his US income and tax payment in his 2008 ITR but without any supporting documents.

In that instance, Henares said the BIR did not become strict in asking documentation and allowed him to claim tax deductions.

But when Pacquiao claimed tax deductions for expenses, he was unable to provide documentation, she said. The BIR then assessed that he had P769 million in tax obligations, including value-added tax.

On his 2009 ITR, Henares said Pacquiao did not declare any US income but only less than P50 million earned in the Philippines, thus the “underdeclaration.”

The agency estimated his tax obligations for 2009 at P1.433 billion based on his income in the United States from “public information” on his bouts there and shares from pay-per-view and online ticket purchases, as well as endorsements.—With a report by Christine Avendaño

source: sports.inquirer.net

Biggest celebrity endorsers didn’t make it to list of top taxpayers

MANILA, Philippines–Some of the country’s biggest celebrity endorsers did not make it to the list of top individual taxpayers, according to the Bureau of Internal Revenue.

In its weekly print advertisement for the government’s tax campaign, the BIR cited the list of 24 biggest celebrity endorsers for 2011 published by Yes! Magazine and revealed whether they made it to the list of Top 500 taxpayers.

The BIR noted an interesting finding that more than half, or 15, of the Top 24 celebrity endorsers for 2011 were not in the list of Top 500 taxpayers for that year.

These were the following: couple Carmina Villaroel and Zoren Legaspi, Marian Rivera, Robin Padilla, Sarah Geronimo, Judy Ann Santos, Anne Curtis, Angel Locsin, Boy Abunda, KC Concepcion, Dingdong Dantes, Gerald Anderson, Bea Alonzo, Jericho Rosales, and Ai-Ai delas Alas.

For 2012, the couple Villaroel and Legaspi, Rivera, Rosales, and Delas Alas still did not make it to the BIR’s list of Top 500 taxpayers.



Ryan Agoncillo, husband of Judy Ann Santos, who was the 16th top celebrity endorser for 2011, was included in the BIR’s list of top taxpayers for the said year landing on the 194th spot. He paid P5.6 million in taxes that year.

However, Agoncillo did not make it to the list of top taxpayers for 2012.

Yes! Magazine has not yet published the list of top celebrity endorsers for 2012.

The list of top celebrity endorsers is based on the number of endorsements per celebrity and not based on amount of income earned from said endorsements.

The BIR clarified that one may not automatically conclude that the data provided in its weekly print advertisement showed tax evasion.

BIR Commissioner Kim Henares said the weekly advertisement was meant to encourage tax compliance.

She said people who may know whether individuals or corporations cited in the advertisements are indeed tax evaders are urged to report details to the BIR.

Meantime, the BIR ad likewise revealed that some of the biggest celebrity endorsers were also some of the biggest taxpayers in the country.

Kris Aquino, who was the top celebrity endorser for 2011, was also the No. 1 taxpayer for that year and was the 6th biggest taxpayer for 2012. She remitted P49.87 million and P44.93 million in taxes in the said years, respectively.



John Lloyd Cruz, who was the second biggest celebrity endorser for 2011, landed on the 205th rank of the BIR’s top taxpayers list for that year, having paid P5.4 million in taxes.

Cruz then significantly increased his ranking in the BIR’s list in 2012 to land on the 8th spot, having paid P42.79 million.

Piolo Pascual, who was the 3rd biggest celebrity endorser for 2011, ranked 123rd in the BIR’s list of top taxpayers for that year, having paid P6.98 million in taxes.

Pascual’s ranking with the BIR also substantially increased to 34th spot in 2012 when he paid P23.36 million in taxes.

Kim Chiu, who was the 7th biggest celebrity endorser for 2011, also was the BIR’s 133rd and 309th biggest taxpayer for 2011 and 2012, respectively. She remitted P6.7 million and P7.44 million in taxes in the said years.

Vic Sotto, who was the 11th biggest celebrity endorser for 2011, landed on the 19th and 89th spots of the BIR’s top taxpayers for 2011 and 2012, respectively. He paid P14.73 million and P14.62 million in taxes in the said years.

Michael V., who was the 19th top celebrity endorser for 2011, landed on the 178th and 118th spots in the BIR’s list of top taxpayers for 2011 and 2012. He paid P5.9 million and P12.6 million in taxes in those years, respectively.

Derek Ramsay, who was the 20th top celebrity endorser for 2011, landed on the 120th and 68th spots in the BIR’s list of top taxpayers for 2011 and 2012. He paid P7.08 million and P16.7 million in taxes in the said years, respectively.

source: business.inquirer.net

145 PBA players attend BIR seminar on tax filing

MANILA, Philippines—One hundred forty-five professional basketball players voluntarily attended a tax briefing at the Bureau of Internal Revenue headquarters in Quezon City after the BIR filed tax evasion complaints against two of them.

Last March 14, the BIR lodged cases at the Department of Justice against Talk N’ Text Tropang Texters teammates Jim Olmedo Alapag and Jared Ryan Dillinger.

On Monday, Philippine Basketball Association Commissioner Chito Salud said the league initiated the holding of the forum.

“These (cases) are honest mistakes because the players don’t know what should be done,” Salud said in an interview after the forum. “There was no bad faith or intention to defraud the government of revenues.”

“We approached the BIR for this because we want the players educated (in tax matters) lest there may be more of these (complaints),” he added.

During the forum, Salud reiterated his call for PBA players to meet their tax obligations, especially because of their status as role models to the young.

Internal Revenue Deputy Commissioner Nelson M. Aspe, who presided over the briefing, commended the players for coming to the BIR voluntarily and without any summons or subpoena.

“By coming here, we are able to help you increase your tax awareness that will ensure compliance and avoid consequential non-compliance troubles like a tax case,” Aspe said.

The discussion touched on what taxes the players are liable to and what expenses are allowed as deductions to taxable income.

In the complaint filed with the DOJ, the BIR said Alapag failed to file his income tax returns (ITRs) for taxable years 2007 to 2010 and that he also failed to file his value-added tax (VAT) returns from 2007 to 2012.

The BIR estimates Alapag’s total income for those years at P32.28 million. For the seven-year period, the bureau said he should pay the government P17.86 million in taxes, including surcharge and interest.

As for Dillinger, the BIR alleged that he did not file his ITRs from 2008 to 2011, his percentage tax return for 2008, and his VAT returns from 2009 to 2012.

The agency estimates that Dillinger as a basketball player earned a total of P22.19 million from 2008 to 2012. The BIR pegs his tax deficiency at P13.37 million, including the surcharge and interest.

Alapag and Dillinger both attended Monday’s forum. Dillinger said in an interview after the briefing that his tax problem was being attended to.

“It’s being cleaned up and I hope it gets finished very soon,” he said. “Having attended this forum, I know now what’s supposed to be done.”

In a short speech at the start of the forum, Internal Revenue Commissioner Kim Henares gave the players a tip: pay taxes with checks and spell out BIR to ensure that payments go to the government.

Last week Henares said the BIR has discovered instances when the tax practitioners hired did not pay the taxes and the taxpayer had to shell out the money to pay for the taxes twice.

Aspe told the PBA players they should hire accountants listed in the BIR’s roster of accredited professionals to prepare their tax filings.

source: sports.inquirer.net

Britain to offer childcare tax breaks to parents

LONDON - British Prime Minister David Cameron will unveil a new tax break on Tuesday to help working parents with their childcare costs from 2015, the government said, seeking to placate families squeezed by austerity, a stagnant economy and weak wage growth.

The announcement comes a day before finance minister George Osborne is due to reject calls to abandon the coalition government's deficit reduction programme when he delivers his budget statement to parliament.




Trailing in the polls before an election due in 2015, Cameron and Osborne's Conservatives are accused by the Labour opposition of choking the economic recovery with a focus on austerity rather than growth.

Under pressure to do more to revive the economy and help hard-pressed households, Cameron will visit a nursery school in London on Tuesday to set out details of the tax break. It will be open to 2.5 million families and will be worth up to 1,200 pounds ($1,800) a year per child.

Britain's childcare costs are among the highest in the world, hitting parents already struggling with years of rising household bills and economic uncertainty.

"This is a boost direct to the pockets of hard-working families in what will be one of the biggest measures ever introduced to help parents with childcare costs," Cameron said in a statement.

A finance ministry spokeswoman said around 1 billion pounds had been set aide for the scheme, doubling the existing budget and taking in five times as many parents. The annual breakdown of public funding for the system will be announced later.

The Labour Party, which urged Osborne on Saturday to cut payroll taxes to boost growth, said many families had already lost money in government cuts.

"This announcement will not make up for the up to 1,500 pounds that families on middle and low incomes have lost in cuts to childcare support," Labour education spokesman Stephen Twigg said. - Reuters


source: gmanetwork.com

Plan to Tax Coachella Suspended

The Indio City councilman who proposed a ticket tax on the Coachella festival relented yesterday after threats of relocation, reports NBC Los Angeles. Council member Sam Torres had suggested a 5-10 percent admission tax on the festival, which was met with severe opposition from Goldenvoice, the concert promoters behind Coachella. Paul Tollett, president of Goldenvoice, threatened to cancel the 2014 festival and move the event away from the city in 2015.

Tollett claims the tax would cost Goldenvoice $4 to $6 million, with Coachella grossing $47 million this year, while a city press release called the company a "major regional employer" that has brought "millions of dollars of revenue to support the local community." Indio Mayor Glenn Miller, who previously opposed Torres' proposal, affirmed his commitment to keeping Coachella in Indio. Coachella began in Indio in 1999 and attracted over 158,000 attendees this year.

source: rollingstone.com

In Tax Return Preparation, Tax Attorney is a Wise Investment

Just the mention of the word tax would send an eerie feeling to many individuals. However, every person must accept the fact that paying tax burdens is part of the duty as a citizen of a state. You are left with no choice but to pay tax liabilities. If you don't, you are to suffer tax penalties, fines, or even imprisonment. Moreover, it is better to comply with your duties on time to preclude you from further troubles with the government. Before a taxpayer can pay his taxes, he must first prepare his tax return. Tax return preparation is one ordinary thing to individuals earning income. This is because all income earners are duty-bound to pay taxes to the government. Taxes are paid annually. Hence, before the scheduled time for the collection of tax contributions, the taxpayer must already be ready.

Tax return is the official document given to taxpayers for them to list their tax contributions for a certain period. It is necessary that this document be prepared and submitted early in time so as to avoid penalties.

Preparing a tax return can be done personally by the taxpayer. This is if he is keen in doing the task on his own. However, if you want an easier way, there are currently advanced software that are especially designed to prepare tax returns. Taxpayers can use said software to help them compute tax contributions. This software can be had online. You just have to download and install it in the computer after that you will be able to use it to ease the burden of tax return preparation.

If you do not want the software, you can hire the services of expert tax return calculation personnel. You just have to be certain that the person you hire is the best that you can have. Better yet, hire the services of a tax attorney.

A tax attorney guides a client to avoid future tax problems. He also defends clients in cases of criminal and civil suits regarding tax troubles. When a taxpayer has trouble with the state department of revenue or Internal Revenue Service, he may opt to remedy it himself or hire the services of a tax attorney. However, the taxpayer can be better served by a tax attorney.

Tax attorneys specialize in solving tax problems with the IRS. They are experts in taxation issues and relief. Nonetheless, they are considered a great help in advising their clients on how to lessen their tax liabilities. They also can also give valuable advice on what exemptions are available to them. They can also give the demarcation line between legal and illegal ways of reducing or avoiding taxes.

One important thing in hiring the services of lawyers is that they must be equipped with knowledge and expertise about the subject matter. Alabama tax attorney, for instance, is an expert in terms of Alabama taxation laws. If you are a resident of Alabama, it is better to hire the services of a good Alabama attorney to assist and defend you.

Knowledge and expertise are boosted by the fact that the tax attorney is also a resident of your state. Hence, it can be presumed that he is updated with the laws and customs of the land than other lawyers.

Bear in mind that tax return preparation is an important process in taxation. One mistake can invite criminal actions and penalties. Moreover, it is better to consult a trusted tax attorney in your territory. A good tax attorney is considered a taxpayer's wise investment.

TRS can help you with your TaxRelief help, just call today!

Article Source: http://www.ArticleBiz.com

From being No. 1 taxpayer in 2008, Pacquiao slides to 135th spot in 2010

From being number one in 2008, Sarangani Rep. and world boxing champion Manny Pacquiao slid to the 135th spot among the country’s Top 500 individual taxpayers in 2010, latest data from the Bureau of Internal Revenue (BIR) showed.

Pacquiao, who is currently at loggerheads with the BIR, paid only P9,190,691 in taxes in 2010 despite having a taxable income of P504.5 million, the bureau said.

In 2008, Pacquiao paid over P125 million, making him the top taxpayer for that year.

The eight-time world champion is currently facing a criminal case for obstructing a tax investigation into his earnings, a case that he said has cost him a fortune in endorsements.

The case was filed by the BIR last February after Pacquiao allegedly failed to submit proper documents about his earnings from boxing matches and his numerous commercial endorsements.

The BIR, through the agency’s regional director Rozil Lozares, issued a Letter of Authority to the boxing icon requiring him to submit documents regarding his earnings. Pacquiao allegedly failed to comply.

The BIR wants to investigate Pacquiao’s 33 tax records, including his annual income tax return in 2010, his book of accounts, list of assets, as well as his earnings from his fights against Antonio Margarito and Joshua Clottey.

GMA News Online called Pacquiao's business manager Rex "Wakee" Salud over the phone, but the boxing champ's camp is still to issue an official statement as of this posting.

Pacquiao’s tax payments substantially declined to some P7 million in 2009 from P125 million in 2008–a drastic drop that got the bureau curious.

Pacquiao has vowed to fight the case in court and accused the BIR of singling him out for harassment.

According to the latest BIR list, businessman Vicente Lao was the top taxpayer for 2010. He had a taxable income of P235 million that year and paid taxes of P75 million.

After Lao, businessman Rolando Hortaleza placed second with P69.665 million in taxes. Filmmaker Carlo J. Caparas, once the subject of a tax case filed by the BIR, came in third with P65.670 million in taxes.

For non-individual taxpayers, communications giant Smart Communications topped the list with P11.456 billion for 2010. Other top corporate taxpayers were Chevron Malampaya LLC (P4.378 billion) and Shell Philippines Exploration (P4.327 billion).

Nestle and San Miguel placed fourth and fifth, with P4.277 billion and P4.206 billion, respectively. — KBK/VS, GMA News

source: gmanetwork.com

UK will cut top income tax rate

Britain's finance minister has cut the rate of income tax for the country's wealthiest citizens but insisted the rich will pay more through a raft of measures to prevent tax avoidance and a hefty new charge on expensive property sales.

In his annual budget statement on Wednesday, George Osborne said he was cutting the top rate from 50 per cent to 45 per cent by April next year on incomes over STG150,000 ($A228,000)a year. He argued that the original higher rate did not yield as much as expected, partly because the rich were able to avoid the tax.

Osborne sought to deflect criticism that any largesse was confined to the wealthy by announcing a big hike in the level Britons start paying tax to STG9,205. There are doubts, however, as to whether the poorest in British society will reap the full reward, given they may lose some benefits.

'Together, the British people will share in the effort and share the rewards,' Osborne said at the conclusion of his hour-long statement. 'This country borrowed its way into trouble, now we're going to earn our way out.'

The 50 per cent tax rate was introduced by the previous Labour government in response to the sharp deterioration in public finances in the wake of a banking crisis that led to the country's deepest recession since World War II.

The leader of the Labour opposition Ed Miliband pounced on Osborne's decision to cut the top rate of tax, mocking him for his oft-repeated mantra that 'we're all in this together.'

'After today's budget, millions will be paying more while millionaires pay less,' Miliband said.

Osborne insisted that the rich should pay a bigger proportion of their income than the poor and said he was offsetting the cut in the top rate by other taxes on wealth, including a new seven per cent charge on the sale of houses valued over STG2 million, up from five per cent.

Most of those residences are located in London, which has become a second home of choice for many of the world's super-rich - Russian oligarchs and hedge fund managers have all converged on the capital, driving up the cost of homes to levels that are unaffordable to the vast majority of Londoners.

Tony Ryland, a senior tax partner at London Chartered Accountants Blick Rothenberg, said the changes will have 'a major effect on the London housing market, potentially driving away overseas buyers.'

Overall, the budget measures were broadly neutral. Osborne has little room for manoeuvre, given the government's primary plan to dramatically reduce borrowing and recent warnings from credit ratings agencies that they could cut the country's cherished triple-A rating if public finances don't improve.

The government's debt-reduction program has been rewarded in the money markets to an extent, even though the economy has flatlined and unemployment stands at a near 17-year high. Unlike other big borrowers in Europe, such as Greece and even Italy, Britain - the biggest European economy that does not use the euro - has enjoyed super-low borrowing rates, making the deficit easy to finance.

Osborne said he was asking the Treasury to examine whether it would be wise for Britain to start issuing bonds of duration longer than 50 years to lock in the current historic low interest rates. The yield on Britain's ten-year bond is around 2.3 per cent, in line with the equivalent US rate.

Economic growth this year will be 0.8 per cent, up from a previous forecast for 0.7 per cent, according to the Office for Budget Responsibility, an independent agency tasked by the government to compile projections.

Osborne said Britain was likely to avoid a technical recession, officially defined as two consecutive quarters of negative growth. In the last three months of 2011, Britain contracted by a quarterly rate of 0.2 per cent.

In 2013, Osborne said Britain's economy would likely grow two per cent, slightly lower than the previous forecast of 2.1 per cent. The projected growth rates remain below the long-run average of 2.5 per cent.

Meanwhile, the budget deficit in the current fiscal year, which ends March 31, will be STG126 billion, STG1 billion less than expected. As a percentage of GDP, debt will peak at 76.3 per cent in 2014-15, lower than previously thought.

source: http://www.skynews.com.au/world/article.aspx?id=731491&vId=3139065&cId=World

EU 'open' to talks on airlines tax, but won't change law

BRUSSELS — EU officials said Sunday they will negotiate with international partners angry at what they see as a climate tax on airlines, but refused to change hotly disputed legislation despite fears in Germany.

“We have always been open to continuing discussions on the possibility of equivalent measures” outside Europe, Isaac Valero, spokesman for European Union climate action commissioner Connie Hedegaard, told AFP.

“This way we hope to reach a global agreement,” he said, referring to a longstanding failure to bring industrialised and emerging powers onto the same page over environmental objectives for big industry.

“But awaiting this global agreement, we are not going to change our legislation,” he underlined.

Hedegaard has insisted that equivalent measures by other countries would lead to like-for-like exemptions from the annual tax bill.

The charges imposed on airlines taking off or landing in Europe entered into force on Jan 1, designed to help the EU achieve its goal of cutting emissions by 20 percent by 2020.

Airlines backed by overseas governments have challenged the scheme’s legality in court, but for the first time Germany has expressed concerns mainly over Chinese threats that it could cancel orders for EU-built Airbus planes.

The growing tensions, with airlines having long warned of an inevitable protectionist backlash from Asia and the Americas in particular, will be debated when EU environment ministers meet on Friday in Brussels.

The German government urged the European Commission on Friday to negotiate with countries opposed to the EU’s airlines carbon emissions fee to “de-escalate” opposition and avoid trade disputes.

Germany’s economics ministry “is viewing the international development at the moment with the EU emissions trade with concern,” spokeswoman Tanja Kraus told reporters, adding that international trade conflicts should be avoided.

According to a report on Thursday, Hong Kong Airlines may cancel a $3.8 billion order for 10 Airbus superjumbo A380 jets after Beijing banned its airlines from paying the EU tax.

Germany anticipates raising $256 million from the tax in 2012, according to Commission figures.

China is among more than two dozen countries including India, Russia and the United States, strongly opposed to the tax.

source: japantoday.com