BIR orders immediate suspension of field audits amid call for Senate probe

The Bureau of Internal Revenue on Monday ordered the immediate suspension of all field audits and related operations, including the issuance of Letters of Authority (LOA) and Mission Orders (MO) amid complaints by some businessmen and taxpayers.

In a statement, newly-installed BIR commissioner Charlie Mendoza said no LOA or MO shall be created, printed, signed, or served during the suspension period.

“This suspension is necessary to protect taxpayer rights, strengthen internal discipline, and ensure the integrity of our audit processes. We take every complaint seriously, and any misuse of authority, harassment, or irregularity has no place in the Bureau,” he said.

The temporary suspension shall apply to all BIR offices involved in audit and field operations, including the Large Taxpayers Service, Revenue Regions and District Offices, Assessment Divisions, VAT Audit Units, and Intelligence and Special Audit Units.

Exceptions to the suspension are “urgent or legally mandated cases such as active criminal investigations, one-time transactions, audits prescribing within six months, refund claims that require audits, or immediate action on taxpayers flagged by verified intelligence.”

The directive came after Senator Erwin Tulfo on Monday filed a resolution urging the Senate Blue Ribbon Committee to investigate an alleged money-making scheme in the BIR involving LOAs.

Tulfo said five businessmen have approached him and expressed willingness to file complaints and submit documents.

Mendoza – who was sworn in by President Ferdinand Marcos Jr. earlier this month – said he has convened key units of the BIR in his first week of office “to gain a thorough understanding of existing audit operations and to identify long-standing issues that have affected taxpayer experience and internal discipline.”

“The suspension was issued after extensive internal consultations and was undertaken with the guidance and strategic oversight of Finance Secretary Frederick Go to ensure full alignment with national priorities on good governance, taxpayer protection, and efficient revenue administration,” he said.

Mendoza said he has ordered the creation of a Technical Working Group (TWG) on LOA and MO Integrity and Audit Reforms to lead the reform efforts.

“The group is tasked with evaluating existing procedures, identifying operational and systemic vulnerabilities, recommending revised LOA protocols, and integrating digital safeguards and uniform audit standards,” he said.

Mendoza said his goal is to “create processes that are predictable, evidence-based, technology-driven, and fair.”

“These systems are meant to protect taxpayers while helping the Bureau perform its mandate efficiently,” the BIR commissioner said, as he stressed Marcos’ directive for the BIR to “continue meeting revenue targets while strengthening service delivery for workers, small business owners, and all taxpayers who rely on predictable and transparent audit processes.”

“The overarching directive of the President when I assumed office is to ensure efficient and fair revenue collections,” Mendoza added.

For his part, Go said the immediate and temporary suspension of all field audits and other related operations is in response to Filipinos’ concerns.

“We hear the people. We hear your concerns and are immediately acting on them. The people deserve better. The Department of Finance is committed to protecting our taxpayers from potential abuse through a comprehensive review of our existing policies and procedures,” Go said.

“All taxpayers shall be treated with the highest degree of professionalism, courtesy, and adherence to the rule of law. Our economy is built upon the contributions of our taxpayers who deserve fair and honest tax audits,” he added. — JMA, GMA Integrated News