Pacquiao dodges taxing problem

Normally, Manny Pacquiao would begin his training for a big fight in his native Philippines, then switch sites to Freddie Roach's gym in Hollywood, Calif., roughly two months out to complete his preparations.

However, Pacquiao has spent so much time in the United States the past few years, he risks being taxed as an American, even though he is a Filipino.

So Pacquiao will spend only four weeks in Los Angeles instead of the usual eight to prepare for his Nov. 14 fight with Miguel Cotto at the MGM Grand Garden.

"There's a new tax law that says if an alien has a substantial presence in the United States, he's taxed like an American," said Top Rank chairman Bob Arum, who promotes Pacquiao. "That would be devastating to Pacquiao. So we have to limit the number of days Pacquiao is in the country so he doesn't get taxed."

Nevada Athletic Commission records indicate Pacquiao has earned $24 million in purses from his fights from 2007 to 2009, including a career-high $7.4 million for his fight with Ricky Hatton on May 2. That number does not include revenue from Pacquiao's pay-per-view cut or any endorsement deals, of which he has several.

According to Arum, the formula to determine residency is made up of one-sixth of the days spent in the U.S. in 2007, one-third of the days spent in 2008 and 100 percent of the days spent in 2009. Arum said the magic number is 183 days. Anything more than that, and Pacquiao would be taxed on his earnings like any American.

"To avoid that, Manny's going to spend most of his time training in the Philippines," Arum said. "Freddie will go to Manny, then they'll come to L.A. together four weeks out from the fight. He's spent about 140 days in the States, so the four weeks plus the time he's spending this week to promote the fight should get him under the number."

Pacquiao, at Yankee Stadium on Thursday to promote the Cotto fight, is in San Francisco today for a news conference following the Dodgers-Giants game at AT&T Park. He'll be in Los Angeles on Monday and San Diego on Tuesday, then will head back to the Philippines to begin training.

Arum said there were discussions about holding training camp in Canada, going to Vancouver, British Columbia, which is in the Pacific time zone and would have helped Pacquiao acclimate to Las Vegas time. However, Pacquiao decided to stay at home and train, figuring four weeks is enough time to adjust his body clock.

• TWO LOSSES -- The local fight scene recently lost two members, as longtime fight judge Bill Graham died Aug. 23 after a lengthy illness, and longtime timekeeper Mike LaCella died Aug. 25 following two heart attacks.

Graham was 93 years old, and LaCella was 75.

Graham, who began working fights when he was 68, still was judging as late as last year. Referee Joe Cortez, a close friend of Graham's, said Graham had been battling health issues for a long time. But Cortez said Graham had a good run as a judge.

"I think Bill Graham brought a lot of credibility because of his honesty and integrity," Cortez said. "He was a strong-willed individual who called them as he saw them."

LaCella, a timekeeper since 1981, suffered a stroke at his Las Vegas home last month. His wife, Betty, said he later had two heart attacks and never recovered.

• KO'ING CANCER -- Cortez, who will referee the WBA featherweight title rematch between Chris John and Rocky Juarez on Saturday at the MGM on the undercard of the Floyd Mayweather Jr.-Juan Manuel Marquez welterweight fight, has been doing a lot of campaigning for testing for prostate cancer.

"It's a cause very close to my heart," aid Cortez, who was diagnosed with prostate cancer in 2007 and successfully beat it. "I've been doing a lot of TV and radio interviews, and I tell people that it's so simple and easy -- just a blood test -- and it can save your life."

Cortez said he is taking advantage of his celebrity as a world-class boxing referee to get the word out.

"It definitely helps," he said. "People know me from boxing, and it makes it easier to get people to listen."

Contact reporter Steve Carp at scarp@ reviewjournal.com or 702-387-2913.