It’s a talk of the netizens now if BIR can run after Marlisa Punzalan’s prize money. The X Factor Australia 2014 grand winner has Filipino parents now living in Australia.
Mon Abrea, a former BIR examiner and a chief strategy officer of the country’s first social enterprise, the Abrea Consulting Group, revealed via Rappler that the BIR can collect taxes on Marlisa’s income from all sources including her prize money from the X Factor competition in Australia if she is a Filipino citizen. “Unless the prize money has been subject to a higher tax, Marlisa will have to pay the tax on her winning,” Mon added.
A comment of @AgnethaLoves from the post said Marlisa Punzalan is an Australian of Filipino heritage. “She’s born there,” she added.
But a lengthy comment of @woodczar1 stated some conjectures. “The good author assumed that the winner is a resident Filipino. The winner in this case seems to be Australian. From what I understand, a child born in Australia (and who is not otherwise an Australian citizen) and who lives in Australia automatically acquires Australian citizenship on his or her 10th birthday, if the child has not been granted or otherwise acquired Australian citizenship in the meantime.”
“This occurs automatically by operation of law, and applies irrespective of the immigration status of the child or his/her parents.”
“Assuming the winner is Filipino, she still can’t be taxed because she is a nonresident Filipino being taxed on income sourced outside the Philippines. ”
“Nonresident Filipinos are only taxed for income sourced from inside the Philippines. This would probably be the argument the winner’s lawyers would be taking. I doubt though if BIR would run after her. The properties of the Punzalan family would all be located in Australia. BIR would be spending more than the amount of taxes it will potentially collect. It would be no use.”
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