DOF’s Go backs probe into alleged BIR LOA misuse

Finance Secretary Frederick Go on Thursday said the Department of Finance (DOF) is in full cooperation with the Senate’s investigation into the alleged money-making scheme involving the Bureau of Internal Revenue’s (BIR) issuance of Letters of Authority (LOAs) and Mission Orders (MOs).

“The DOF extends its full support and cooperation in addressing the long-standing concerns of our taxpayers regarding red tape, audits and alleged weaponization of letters of authority and mission orders,” said Go at the Senate Blue Ribbon Committee Hearing.

The panel, on Thursday, opened its investigation into the supposed misuse of LOAs and MOs by some BIR personnel, citing complaints from small businesses and international firms. At the same hearing, the BIR said it has filed administrative complaints against two employees over the issue.

In his first week in office, Go said he ordered the immediate suspension of all field audits and related operations of the BIR to allow the government to review its existing policies and procedures.

“We welcome this investigation. President Ferdinand R. Marcos, Jr. has made it unequivocally clear that we will not tolerate corruption in government,” he said.

BIR Revenue Memorandum Circular (RMC) No. 107-2025 states that no LOA or MO shall be created, printed, signed, or served during the suspension period.

Among the major reforms the BIR is pursuing, Go said is the development of a digital system that will identify which taxpayers will be audited, minimizing discretion in the selection process. Audits issued outside of this system will be deemed void and those involved will be held accountable. 

The BIR is also working on a portal to closely monitor the status of all pending LOAs, while refining its policy to ensure that only the BIR Commissioner or Deputy Commissioner can approve LOAs and MOs before they are issued, enforcing checks and balances in the system.

“We want our taxpayers to see and feel that we truly reformed the system,” Go said. — BM, GMA Integrated News