Senate to end BIR LOA misuse probe if reforms effective, says Lacson

LocalPolitics
3 Feb 2026 • 12:07 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

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SEN. Panfilo Lacson said the Senate will end its investigation on the reported misuse of letters of authority (LOA) by some Bureau of Internal Revenue (BIR) personnel if reforms are already in place to prevent the alleged anomaly.

Lacson, Senate Blue Ribbon Committee (BRC) chairman, made the remark following the BIR’s move lifting the suspension on the use of LOAs.

The senator on Monday said the BRC “needs to be formally informed of the new reforms instituted by the BIR in relation to the issuance of LOA.”

“And if safeguards are already in place to prevent or at least minimize abuse committed against our taxpayers, then we may have to conclude the committee hearings on the matter,” Lacson said in a text message.

“We will schedule a hearing this week in this regard to hear what the BIR has to say,” the Senate president pro tempore said.

Sen. Erwin Tulfo had asked the BRC in November 2025 to investigate the alleged extortion or “money-making” scheme of some BIR examiners.

Tulfo said the concerned BIR examiners have “misused” the LOA to harass businessmen, including micro, small and medium enterprises such as bakeries and grocery stores.

Tulfo likened the LOA to a search warrant that authorizes the examiner to review company books or business records.

Sen. JV Ejercito also slammed corrupt BIR personnel for allegedly using the LOA to extort from local and foreign businessmen.

“I got worried when EU (European Union) ambassadors, EU and American chambers [of commerce] started to complain that they too were being victimized,” Ejercito said.

“They’re weaponizing the LOA for corruption. We really need a hard reboot for the whole government,” he added.