BIR’s next target: ‘Ironman’ triathlon winners
The Bureau of Internal Revenue. AFP FILE PHOTO
CEBU CITY, Philippines—It’s Taxman versus Ironman.
The Bureau of Internal Revenue (BIR) in Central Visayas now wants to run after the organizer and winners of the recently-concluded Cobra Ironman 70.3 Philippines triathlon.
Lawyer Neri Yu, acting chief of legal division of the BIR for Region 7, said on Friday the prizes awarded to triathletes who won in the international event held in Cebu on Aug. 3 were taxable.
The winners, whether or not they’re Filipinos, are required to pay a 20-percent withholding tax for their winnings, he said.
Yu said the organizer has until next month to submit a report which will be used by the BIR to determine if the winners have paid their taxes.
“We’re waiting for their report on or before September. Let’s see if they have complied with their tax dues,” he said.
Ironman 70.3 Philippines, the country’s premier long-distance triathlon event, was organized by Wilfred Uytengsu Jr., president of Sunrise Events and Alaska Milk Corp. It was held in Cebu for the third straight year last Sunday. A triathlon is an event that combines swimming, cycling and running. It is the fastest growing sport in the country.
Canada’s Brent McMahon, a two-time Olympian, ruled the pro men’s division and bagged the top prize of $5,000 in cash (approximately P220,000). Caroline Steffen of Switzerland won the women’s pro division for the third year in a row. She also received $5,000.
Only the top six placers in the Ironman professional division received cash prizes starting at $750. Most of them are foreigners. In the elite division, the top three winners got P50,000, P30,000, and P20,000.
Princess Galura, project director of Sunrise Events Inc., said in a phone interview that the prize money of the winners in all divisions of the Ironman was already tax deducted—25 percent for foreign winners and 20-percent for locals.
“The organizers have been following all the requirements of the government, whether it’s for customs, airport regulations, as well as BIR. Why is the BIR suddenly interested in the Ironman triathlon?” she asked.
Yu said the Cobra Ironman organizer must submit a statement of expenses, income tax returns, value added tax returns, the amount of sales, and amount given to the winners.
“We will see through that report whether the corresponding withholding tax for winners was complied with,” he said.
Under the National Internal Revenue Code of the Philippines otherwise known as the Tax Reform Act of 1997, “prizes (except prizes amounting to P10,000 or less) shall be subject to tax.”
“The exemption is when the prize or award is granted to athletes who bring honor to the Philippines,” Yu explained.
He said the BIR usually monitors events like concerts, triathlons, and basketball games so they will know if the organizers pay the correct taxes.
Yu said the BIR will check whether the organizer and winners of the previous Ironman Philippines have paid the correct taxes.
“Each and every citizen is obliged to pay taxes to the government. Under the lifeblood theory, revenue collected by the government is for public expenditures. So we must pay taxes,” Yu said.
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