The Bureau of Internal Revenue (BIR) has temporarily suspended all field audits and the issuance of Letters of Authority (LOA) following an increase in complaints of alleged abuse and corruption within the agency. According to new BIR Commissioner Charlito Mendoza, no LOA will be issued while the suspension is in effect as part of his reform agenda.
Mendoza said this step is guided by Finance Secretary Frederick Go to ensure good governance, protection of taxpayers, and more efficient revenue administration. Only urgent or legal cases are not covered by the suspension, including criminal investigations and one-time transactions.
The scope of the suspension also includes audits in the past six months, refund claims, and cases from intelligence reports. Mendoza ordered the creation of a technical working group to investigate weaknesses in the system and create a clearer and technology-driven process for the LOA.
As the suspension continues, some senators are calling for a deeper investigation into the growing allegations of money-making schemes at the BIR. Sen. Erwin Tulfo filed Senate Resolution 180 to investigate the alleged use of LOA to extort businesses—both small and large.
ITulfo said there were cases where the assessment of some companies was allegedly given a "discount" in exchange for a kickback, and several BIR officials were involved. According to him, the problem became more severe in 2024 due to the pressure to meet collection targets.I
