THE Makati Business Club (MBC) on Tuesday backed Bureau of Internal Revenue Commissioner Charlito Mendoza‘s act of filing cases against 25 BIR personnel for alleged misuse and weaponization of Letters of Authority (LOAs).
An LOA is a mandatory document authorizing revenue officers to examine a taxpayer’s books and records for specific tax liabilities and periods.
The cases against the 25 BIR officers were filed on Feb. 10, while 30 more are under investigation.
Reforms under Revenue Memorandum Circulars 5-2024 and 38-2024 clarify how income from cross-border services and foreign companies should be taxed, Mendoza said.
Unjustified audit results and exploitative tax practices have long been cited as barriers to business growth by domestic and foreign investors, the MBC said. “By holding these personnel accountable, Commissioner Mendoza is helping to dismantle decades-long practices that make investors hesitant to continue or expand operations.“
The MBC said that Mendoza‘s leadership and reforms ensure the country’s economic growth and recovery, after a year of uncertainty and corruption issues in 2025.
“Clear accountability for abuses in tax administration helps assure both domestic and foreign investors that the Philippines is serious about reforming its tax administration system to create a fair and predictable tax environment,“ the business group said.
“We encourage and are willing to support, in any capacity, continued efforts to modernize and professionalize tax administration as a key pillar of a stronger, more equitable, and more investor-friendly Philippines.“
