Marilyn Cahatol

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

<p>MANILA — About 70 percent of the tax collected from the Bureau of Internal Revenue’s (BIR) letters of authority (LOA) is lost to corruption and only 30% is remitted to government, according to Senate Deputy Majority Leader JV Ejercito. </p><p>In a press conference on Tuesday, Ejercito condemned the rampant money-making scheme supposedly facilitated by BIR personnel. Ejercito was one of the senators who first brought up the issue of corruption regarding BIR’s LOAs.</p><p>“Marami na tayong mga complaints, mga nakakausap nating mga local businessmen pero nabahala ako when the European ambassadors, and some ambassadors of the different countries and the American and European Chamber started to complain na pati sila are being subject to harassment by BIR through the LOA. So they are weaponizing the LOA for corruption,” Ejercito said.</p><p>“Ang dami ko nang nakakausap na businessmen o yung random na in socials biglang magsasalita sila ng ganun. So ibig sabihin ganun katalamak, ganun kalala,” he added.</p><p>Involved in the scheme, which has been going on the past two years, are BIR revenue officers and regional directors, according to Ejercito.</p><p>He said the bureau projected a collection of P6 billion to P8 billion, but only raised about P2 billion to P3 billion because 70 percent of the tax collected went to kickbacks. He named Jet Lee, a Philippine motorcycle tourism ambassador, as one of those who became a victim of extortion losing at most P10 million.</p><p>Ejercito also said some businesses have claimed to have lost billions over the years.</p><div><a href="https://www.abs-cbn.com/news/business/2025/11/24/senator-calls-for-probe-on-alleged-bir-anomaly-1540">Senator calls for probe on alleged BIR anomaly</a></div><div> </div><div><strong>ROMEO LUMAGUI JR</strong></div><p>Asked if the abuse of LOAs could have been the reason why former BIR Commissioner Romeo Lumagui, Jr. was replaced, Ejercito said, “Well, I really do not know the reason kung ano, pero possible baka kasi masyado nang maraming umaangal eh.”</p><p>If the Senate Blue Ribbon Committee decides to investigate the issue as requested by Senator Erwin Tulfo in his Resolution 180, Ejercito believes it would be good if Lumagui is invited.</p><p>“Probably to clear his side or to air his side, it will be wise for him to go whether he took action or not. So mahirap naman kasing pagbintangan siya, no. I think it should come from him whether he took action or not upon hearing all these issues or complaints about the LOAs from different businessmen,” Ejercito commented.</p><p>He said he has not yet spoken with Lumagui, who still has to answer the allegations.</p><p>“This is accountability, eh. Kahit pa nag-resign na or replaced, I think they still have to be answerable doon sa kanilang actions or inaction,” Ejercito mentioned.</p><div><a href="https://www.abs-cbn.com/news/nation/2025/11/17/malaca-ang-remains-vague-over-lumagui-s-removal-as-bir-chief-2024">Malacañang remains vague over Lumagui’s removal as BIR chief</a></div><p>The senator stressed the need for safety nets to address the matter, especially since it is already affecting foreign investments, local businessmen, and confidence in government.</p><p>He thanked newly appointed BIR Commissioner Charlito Mendoza for listening and suspending the use of LOAs. </p><p>“Maglagay na siya siguro na mga clear cut policies,” Ejercito said. “Kailangan lang maging consistent.”</p><div><a href="https://www.abs-cbn.com/news/nation/2025/11/24/gatchalian-bares-top-10-most-complained-gov-t-agencies-1820">Gatchalian bares top 10 &#x27;most complained&#x27; gov&#x27;t agencies</a></div><div><br/></div><div><strong>RELATED VIDEO:</strong></div><div style="text-align:center"><iframe width="560" height="315" src="https://www.youtube.com/embed/ykVEgqOb0CU?si=94kIs3NRNYtQIQeI" title="YouTube video player" frameBorder="0" allowfullscreen=""></iframe></div>

<p><i>Senator JV Ejercito said </i>about 70 percent of the tax collected from the Bureau of Internal Revenue’s (BIR) letters of authority (LOA) is lost to corruption. </p>

Senator JV Ejercito said about 70 percent of the tax collected from the Bureau of Internal Revenue’s (BIR) letters of authority (LOA) is lost to corruption.

Senator says 70% of tax collected from LOAs of BIR lost to corruption

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Senator says 70% of tax collected from LOAs of BIR lost to corruption

Victoria Tulad,

ABS-CBN News

Published November 25, 2025 04:38 PM PHT

Read More:

LOA

BIR

jv ejercito

romeo lumagui jr

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