THE Philippine Chamber of Commerce and Industry (PCCI) on Wednesday welcomed the resumption of tax audit and field operations of the Bureau of Internal Revenue, which were temporarily suspended in November 2025.
On Jan. 27, the 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 audit procedures.
The restart of tax audits was authorized through Revenue Memorandum Circular (RMC) 8-2026. The notice comes with Revenue Memorandum Order (RMO) 1-2026, which outlines revised audit policies, stricter control measures, and updated procedures.
“These landmark issuances lift the suspension on enforcement activities and introduce a modernized audit framework designed to strengthen transparency, predictability, and fairness in tax administration,“ PCCI said in a statement.
Finance chief Secretary Frederick Go said the BIR reviewed its systems thoroughly and worked closely with the private sector to design safeguards that addressed long-standing concerns from taxpayers.
The real difference lies in the safeguards and procedural reforms introduced under RMO 1-2026, PCCI President Perry Ferrer said.
“The adoption of the Single Instance Audit Framework — ‘One LOA per taxpayer per year’ — is a game-changer,” Ferrer noted. “This policy consolidates all internal revenue tax types, including VAT, into a single authority. It rationalizes the audit process, minimizes disruption to business operations, and ensures efficiency through the automatic consolidation of multiple electronic letters of authority (eLAs) into one letters of authority (LOA).“
Part of the BIR reforms which PCCI acknowledged are:
– Objective selection criteria: Transitioning to a risk-based, data-driven audit selection process, reducing subjective discretion;
– Rationalization of enforcement authority: Abolishing task forces and shutting down VAT Audit Sections (Vatas) and Large Taxpayers VAT Audit Units (LT-VAU), returning assessment functions to regular BIR offices;
– Protection of due process: Ensuring audit notices are anchored strictly on unresolved issues with clear factual and legal bases, prohibiting unreasonable assessments, and mandating documentation of audit events through signed minutes;
“These reforms strengthen the principles of fairness and accountability," PCCI director for taxation Alfredo Yao said. “By requiring transparency in taxpayer interactions and eliminating redundant audit units, the BIR is sending a strong signal that it values both efficiency and integrity.“
The reforms will foster a climate of mutual trust between government and the private sector, PCCI said.
“A predictable and transparent tax environment encourages voluntary compliance and builds confidence among businesses,” PCCI tax committee chairperson Benedicta Du-Baladad added. “We believe these measures will contribute to a more stable and competitive business climate in the Philippines.”
