Knock Out! Manny Pacquiao punches “insatiable” IRS.
I admit I’d never heard of Manny Pacquiao before today. I’ve now learned Pacquiao is a world class boxer and is the second highest paid athlete in the world.
American Spectator says Pac Man now “takes on his toughest opponent in his next fight: the Internal Revenue Service.”
Roy Jones, Evander Holyfield, and Floyd Mayweather all fought the most powerful three-letters in boxing and lost. Manny Pacquiao, a Filipino who doesn’t possess their home field disadvantage, has already defeated the IRS without stepping through the ropes.
By fighting in China instead of in US:
The Pac Man may be the first boxer to defeat the Tax Man. More amazingly, he may be the first tax refugee to flee the “land of the free” for China. Should he earn $20 million for his fall fight against Brandon Rios, the government in Macau will gobble up $2.5 million of it. Had he opted for Las Vegas, Uncle Sam would have seized $8 million.
Forbes explains it this way:
Because Pacquiao is neither a U.S. resident nor a citizen, he will not pay U.S. tax on any money earned from the fight, allowing him to pocket an extra 28 percent of the purse.
I’m a bit confused. Wouldn’t he have a Green Card because of his previous fights in US? Wouldn’t that still require him to pay US taxes?
In any case, I think we need the Pac Man in our ring as a FATCA fighter. Sock it to them, Manny!
3 thoughts on “Knock Out!”
The U.S. does hand out temporary work permits which allow you to escape any long term tax liability obligations.
Wiki writes that the US is his second home country.
He’s also a member of the House of Representatives in the Philippines Congress. Hmm. I wonder what his position is on FATCA in the Philippines.