MANILA, Philippines — The Bureau of Internal Revenue (BIR) lifted the suspension on the issuance of letters of authority (LOAs), allowing tax audits to resume after the completion of reforms following a comprehensive review of BIR audit procedures.
Finance Secretary Frederick Go said on Tuesday that BIR reviewed its systems thoroughly and worked closely with the private sector to design safeguards that addressed long-standing concerns from taxpayers.
“The BIR did a comprehensive review and engaged the private sector. It has designed concrete reforms to make audits fairer, more predictable, and more accountable,” Go added.
The DOF ordered the suspension of BIR field audits and related operations, including the issuance of LOAs, in November last year after complaints that the system was being abused to harass taxpayers.
LOAs give BIR examiners the authority to inspect a taxpayer’s books of accounts, but business groups and taxpayers had raised concerns over repeated and overlapping audits. There were also allegations that fake or unauthorized LOAs were being used to extort money.
BIR Commissioner Charlito Martin Mendoza said the temporary suspension gave the agency time to reassess its audit framework, consult stakeholders and implement structural reforms to restore trust in the system.
“As audits resume, taxpayers will feel the difference immediately,” Mendoza said.
