BIR suspends audits amid ‘long-existing’ corruption, Senate launches probe

The Bureau of Internal Revenue has temporarily suspended all field audits and the issuance of new audit orders after Senate Deputy Majority Leader JV Ejercito claimed that only 30 percent of the total is remitted to the government. 

Ejercito and fellow lawmakers described LOA misuse as a long-existing problem that “exploded” in 2024, allegedly pushed by internal pressure to meet collection targets, with complaints coming from both large companies and small businesses.

On Nov. 25, Sen. JV Ejercito told reporters that revenue officers and regional directors at the BIR reportedly pocketed the majority, or 70%, of the collections from Letters of Authority (LOAs).

Senator JV Ejercito claimed that only P2 billion to P3 billion of an estimated P6 billion to P8 billion in LOA-related collections actually reached the government.

Last Monday, Nov. 24, Senator Erwil Tulfo urged the Blue Ribbon Committee to investigate what he described as a “money-making racket” involving revenue district offices nationwide.

LOAs are the official documents that grant revenue officers permission to conduct a tax audit on a business or taxpayer.

Newly appointed BIR Commissioner Charlito Mendoza ordered the move to pause audit operations under Revenue Memorandum Circular 107-2025 to immediately stop what he called “any misuse of authority, harassment, or irregularity.”

Mendoza said, “the suspension was issued after extensive internal consultations and was undertaken with the guidance and strategic oversight of Finance Secretary Frederick Go to ensure full alignment with national priorities on good governance, taxpayer protection, and efficient revenue administration.” 

The said suspension covers LOA issuance and all field audits, except for “urgent or legally mandated” cases such as ongoing criminal investigations or refund claims.