BIR files cases vs. 25 personnel for misuse of letters of authority

The Bureau of Internal Revenue (BIR) said Tuesday cases were filed against 25 of its personnel due to the alleged abuse or misuse of letters of authority (LOAs). 

BIR Commissioner Charlito Martin Mendoza stated this during the resumption of the Senate Blue Ribbon Committee's hearing into the LOA issue, when asked by Senator Erwin Tulfo if there were people held accountable over the misuse of LOAs. 

"Well, maliwanag po na nakalagay sa ating RMO (revenue memorandum order) na ang mga kawani ng BIR na hindi susunod sa mga bagong panuntunan ay mananagot, makakasuhan sila either administratively, civilly, or criminally," Mendoza answered.

(Well, it is clearly stated in our RMO that BIR personnel who do not follow the new rules will be held liable, they will be charged either administratively, civilly, or criminally.) 

"But meron din po kami mga ongoing investigations of BIR personnel. As of now ho, meron kami 30 employees that are undergoing investigation. In fact, 'yung 25 po sa kanila ay mayroon nang formal charge," he added.

(But we also have ongoing investigations of BIR personnel. As of now, we have 30 employees that are undergoing an investigation. In fact, 25 of them are already facing formal charges.) 

Mendoza added that the BIR is also currently implementing a reshuffling of district office personnel. 

Tulfo then asked if there were personnel already dismissed from office. 

"Definitely po, Mister Chair. Kung ang ebidensya ay magpapatunay na talagang may malaking kasalanan na nagawa na nangangahulugan na dapat siyang mabigyan ng parusang dismissal. Idi-dismiss po natin sila," the BIR chief said.

(Definitely, Mister Chair. If the evidence proves that a serious crime has been committed, that means those implicated should face the penalty of dismissal. We will dismiss them.) 

The LOA authorizes revenue officers to examine a taxpayer's books and records.

Senator JV Ejercito, meanwhile, expressed optimism that reforms in the issuance of LOAs would lead to stronger revenue collection. 

"We badly need revenues right now. We are already facing around a P200-billion shortfall early this year. That is a heavy burden on our fiscal position," Ejercito said.

Last month, the BIR announced it would resume tax audits under a tighter framework after it had secured broad support from the private sector to achieve its proposed reforms. The bureau said the reforms would govern audits when the suspension of LOAs was lifted.

To recall, the BIR ordered the immediate suspension of all field audits and related operations, including the issuance of LOAs and Mission Orders in November 2025 amid complaints by some businessmen and taxpayers.

This prompted the Senate blue ribbon committee to probe the alleged abuse and misuse of LOAs, formally opening its legislative inquiry into the alleged scheme in December 2025.

During the hearing, Mendoza also detailed key features of RMO No. 1-2026, which governs the conduct of tax audits, following the lifting of the audit suspension on January 27. 

According to the BIR chief, the reforms included clearer definitions of audit authority, as well as the Single-Instance Audit Framework, which limits examinations to one LOA per taxpayer per year. — VDV, GMA Integrated News