Palace eyes probe of alleged BIR money-making scheme

Malacañang on Wednesday said it intends to launch an investigation into the alleged money-making scheme within the Bureau of Internal Revenue (BIR). 

In a press briefing, Palace Press Officer Undersecretary Atty. Claire Castro said reports on the alleged misuse of the BIR’s Letters of Authority (LOA) should be looked into. 

''Dapat imbestigahan. Kung mayroong ganyang mga nakita, na-report, hindi dapat makalagpas to. Paiimbestigahan to,'' Castro said. 

(This should be investigated. If there were reports like this, this should be looked into.) 

On Tuesday, Senator JV Ejercito alleged that 70% of collections from LOAs issued by the BIR were supposedly wasted due to corruption, while only 30% of the proceeds was remitted to the agency.

Castro, however, would neither confirm nor deny that the alleged corruption scheme involving LOAs was the reason for the replacement of former BIR Commissioner Romeo Lumagui Jr.

''Wala pong nasasabi sa akin kung ganyan ang dahilan. Wala pa po,” she said. 

(I'm not informed if that was the reason. There's none.)

On Tuesday, the BIR ordered the immediate suspension of all field audits and related operations, including the issuance of LOAs 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,” Mendoza said.

Mendoza said he already ordered the creation of a Technical Working Group (TWG) on LOA and MO Integrity and Audit Reforms to lead the agency's reform efforts.—MCG, GMA Integrated News