Manila: Department of Finance (DOF) Secretary Frederick Go on Monday announced the suspension of all field units and related operations of the Bureau of Internal Revenue (BIR) to improve public service through enhanced transparency in government policies. This move follows the directive from BIR Commissioner Charlito Martin Mendoza for the immediate halt of field offices and the issuance of Letters of Authority (LOAs) and Mission Orders (MOs).
According to Philippines News Agency, Mendoza stated that his decision, grounded in Revenue Memorandum Circular No. 107-2025, is designed to protect taxpayer rights, enhance internal discipline, and maintain the integrity of audit processes. “We take every complaint seriously and any misuse of authority, harassment or irregularity has no place in the Bureau,” Mendoza emphasized.
Secretary Go highlighted that Mendoza’s decision was a response to taxpayer concerns about the issuance of LOAs and MOs. “We hear the people. We hear your concerns and are immediately acting on them. The people deserve better,” he affirmed. Go further stated that all taxpayers should be treated with professionalism, courtesy, and a strict adherence to the rule of law, emphasizing the importance of fair and honest tax audits for the economy.
The suspension covers operations of the Large Taxpayers Service, Revenue Regions and District Offices, Assessment Divisions, VAT Audit Units, and Intelligence and Special Audit Units. However, it excludes urgent or legally mandated cases, including active criminal investigations, audits nearing prescription, refund claims needing audits, and immediate actions on taxpayers flagged by verified intelligence.
Mendoza also announced the formation of a Technical Working Group on LOA and MO Integrity and Audit Reforms, tasked with evaluating current procedures, identifying vulnerabilities, recommending revised protocols, and integrating digital safeguards and uniform audit standards. “Our 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,” he stated.
Meanwhile, Senator Erwin Tulfo commented that the suspension should not protect erring personnel from accountability. He insisted that those who have benefitted from irregular audit practices must still undergo investigation. “Officials who abused the LOA system must still be held accountable,” Tulfo stated, referring to his Senate Resolution No. 180, which aims to probe the alleged ‘weaponization’ of LOAs and ensure accountability for prolonged abuses.
