Filipino former professional boxing champion Manny Pacquiao is a cheerful man after the Court of Tax Appeal dropped his tax case.

The Filipino Bureau of Internal Revenue accused Pacquiao and his wife Jinkee Pacquiao in 2012 of owing over 2.2 billion pesos (Sh4.5 billion) in unpaid taxes for the years 2008 and 2009.

Manny Pacquiao and Jinkee Pacquiao. PHOTO/TWITTER

The court in its ruling said it found the subject assessment for deficiency in income tax void for violation of the petitioners’ right to due process and also said the case lacked sufficient evidence.

"The Court finds that the subject assessment for deficiency income tax is void for violation of petitioners' right to due process and for lack of sufficient factual basis," the court ruled.

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The boxing champion-cum-politician became among the high-profile targets of the tax office and a victim of President Benigno Aquino’s war against tax evasion.

Initially, the former boxer maintained he has the taxes in question in the United States and therefore did not need to pay the same in the Philippines.

This is because the U.S. and the Philippines have an agreement that cushions their citizens against double taxation.


Pacquiao stood to lose millions of dollars in extra taxes payments if the ruling went the other way.