Virgilio Lorenzo Jr

The Bureau of Internal Revenue's central office in Quezon City. Mark Demayo, ABS-CBN News

Article (news)

BIR Central Office

Victoria Tulad

ABS-CBN News

MANILA -- A senator has called for a probe into an alleged anomaly in the country&#x27;s main tax agency.Senator Erwin Tulfo has filed Senate Resolution 180 directing the Blue Ribbon Committee to conduct an investigation into the alleged money-making scheme involving the use of Letters of Authority (LOA) of the Bureau of Internal Revenue (BIR).Tulfo said in a press conference on Monday that several complaints, from big companies and even micro, small, and medium enterprises, have reached his office.According to the Resolution, an LOA is a document that “empowers the BIR to examine a taxpayer’s books, records, and other relevant documents for the purpose of ensuring tax compliance.”“Habang abalang-abala po tayong lahat dito po sa flood control, may nangyayari pong korapsyon dito naman po sa Bureau of Internal Revenue,” Tulfo added.He said that BIR examiners, up to regional directors, are allegedly involved in the scheme.In one case where a company needed to pay P150 million, it was told that it would be given a discount of P25 million with the catch that only P100 million would be put in the receipt, and the other P25 million would be pocketed by the BIR personnel.Tulfo said the scheme has been going on for years.  He said some victims are scared of testifying against the BIR but some are willing.<div>DOF SUSPENDS FIELD AUDITS </div>The Department of Finance and the BIR meanwhile announced the immediate and temporary suspension of all BIR field audits and related operationsFinance Secretary Frederick Go said this was in response to the concerns over LOAs and Mission Orders.&quot;We hear the people. We hear your concerns and are immediately acting on them.  The people deserve better,&quot; Go said in a statment.BIR Commissioner Charlito Martin R. Mendoza said no LOA or MO shall be created, printed, signed, or served during the suspension period.&quot;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,&quot; Mendoza said.The BIR chief said the order applies to all BIR offices involved in audit and field operations, including the Large Taxpayers Service, Revenue Regions and District Offices, Assessment Divisions, VAT Audit Units, and Intelligence and Special Audit Units. &quot;The  exceptions to the suspension apply only to urgent or legally mandated cases such as active criminal investigations, one-time transactions, audits prescribing within six months, refund claims that require audits, or immediate action on taxpayers flagged by verified intelligence,&quot; the BIR said.The agency said this is meant to protect taxpayer rights, strengthen internal discipline, and ensure the integrity of our audit processes.

Senator calls for probe on alleged BIR anomaly

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Senator calls for probe on alleged BIR anomaly

Victoria Tulad,

ABS-CBN News

Published November 24, 2025 03:40 PM PHT

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Updated November 24, 2025 05:02 PM PHT

Read More:

Erwin Tulfo

BIR

tax collection

Senate

DOF

Frederick Go

Charlie Mendoza

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