Pacquiao wins round in bruising tax fight

Boxing champion Manny Pacquiao has won a court reprieve in the Philippines as he tries to avoid tens of millions of dollars in extra taxes.

Philippine world boxing champion Manny Pacquiao has won a Supreme Court reprieve in his battle to avoid paying tens of millions of dollars in extra taxes, authorities said on Thursday.

Pacquiao will not have to post a cash bond of 3.3 billion pesos ($A81.35 million) and the government is banned from seizing any of his assets while his case is being heard, according to a Supreme Court ruling.

The ruling also ordered speedier proceedings which began last year and were still in pre-trial stage.

Pacquiao expressed relief at the ruling, which came ahead of a China tour to promote the Macau defence of his WBO welterweight title against unbeaten US challenger Chris Algieri in November.

"Let us now let the legal process take its course. For now, I am just glad I will be able to concentrate on training for my upcoming bout," he said.

The dispute arose from an initial assessment that Pacquiao, 35, owed 2.2 billion pesos in unpaid taxes for 2008-09.

President Benigno Aquino has waged a campaign against tax evasion as part of a crackdown on corruption during his four-year term.

Pacquiao, who has held world titles in eight weight divisions and is also a member of Congress, has become one of the highest-profile targets of the tax sweep.

The boxer insisted he paid the 2008-09 taxes in the US, so did not need to do so in the Philippines because the two countries had an agreement allowing their citizens to avoid double taxation.

The tax office alleges Pacquiao failed to provide documents proving his US payments.

It also says that, even if Pacquiao did pay in the US, he would still owe some money because of a higher tax rate at home.

Last year, the government froze several Pacquiao bank accounts and the financing of one of his properties in an exclusive Manila community.

It also threatened to take the money owed by seizing and selling his assets.

The tax court agreed in April to lift the asset freeze on condition Pacquiao posted the giant cash bond by August 17.

"We went to the Supreme Court to get the bond requirement removed, since it would defeat the purpose of the lifting of the asset freeze," Pacquiao's lawyer Tranquil Salvador said.

Being a civil case, the dispute does not involve prison penalties.


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Pacquiao wins round in bruising tax fight | SBS News