Manila, Philippines – Got money? Watch out, Kim Henares will go after you.
Henares is the commissioner of the Philippines’ Bureau of Internal Revenue (BIR), the counterpart of the U.S. Internal Revenue Service (IRS). She has gained the reputation of going after the big fish – Filipinos like world boxing champion Manny Pacquiao and newly-crowned X Factor Israel winner Rose Fostanes. Henares wants a chunk of their earnings abroad.
Analysts say that Henares’ actions are a desperate attempt to save her tax agency from bankruptcy. The BIR, which many Filipinos consider among the most corrupt agencies, continues to face declining revenues due to widespread tax evasion schemes especially among the country’s richest tycoons.
However, The Adobo Chronicles learned that Pacquiao and Fostanes are joining hands to challenge Henares in court and prevent her from taxing their foreign earnings. In papers to be filed in court today, Pacquiao and Fostanes claim that the BIR has no authority to collect taxes from their prize money earned in the U.S. and Israel, respectively.
“That is why the agency is called Bureau of INTERNAL Revenue,” lawyers said, so earnings outside the Philippines should be off limits to the tax agency.”
Makes perfect sense.