Taxes involving the affairs of international professional athletes are very complex, as are how they conduct their business. Usually, professional sports figures have a bunch of people handling their matters and sometimes, they can get into trouble, as is the case with Philippino boxer Manny Paquiao, says Robert Wood, tax lawyer in San Francisco, California.
Paquiao has an IRS lax lien of $18 million, which is probably due to one of his advisors in not being very responsive in the correspondence that has come through, Wood says. He also notes a "whip saw" effect going on between the U.S. and the Philippines. His advisors are telling the Philippines that he doesn't owe as much as they say because he's already paying so much in the U.S. but the Philippines is asking for evidence of payment.
Either way, Wood says this is embarrassing and can hurt an athlete's image.
For more information on the article written in Forbes magazine about this, click here. Robert Wood is a tax attorney with Wood, LLP in San Francisco, California and spoke with The Tax Law Channel, an affiliate of The Legal Broadcast Network. The Legal Broadcast Network is a featured network of the Sequence Media Group.