MANILA, Philippines – The Bureau of Internal Revenue (BIR) said cases have been filed against 25 of its personnel over the alleged misuse of letters of authority (LOAs).

BIR Commissioner Charlito Mendoza told the Senate blue ribbon committee on Tuesday, February 10, that the tax bureau is also investigating 30 employees over alleged LOA abuse.

LOAs usually mark the start of a tax audit or investigation, as they authorize BIR revenue officers to examine a taxpayer’s books for a specified period.

“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,” he said.

(Our RMO clearly states that BIR personnel who do not follow these new guidelines will be held accountable – they will face cases either administratively, civilly, or criminally.)

Mendoza was referring to RMOs 1-2026 and 8-2026, which lifted the suspension of the BIR’s audit operations, including the issuance of LOAs. The BIR first announced the resumption of audit operations back in January.

Under the new guidelines, LOA issuances will now be limited to one letter per taxpayer per taxable year. LOAs will now also be system-generated to minimize human intervention.

To prevent overlapping audits, Mendoza also said the BIR shut the Value Added Tax audit section and VAT audit teams, limiting the power to authorize audits to regional offices and the large taxpayers’ service.

When asked if the employees were dismissed from service, Mendoza said the personnel could face penalties as heavy as dismissal if evidence proves they committed a serious crime.

Aside from the investigation of erring personnel, Mendoza also told senators that they are currently reshuffling revenue district office (RDO) personnel.

“Meron na po tayong ilang personnel movement na isinagawa noong mga nakaraang linggo at meron pa pong mga susunod na reshuffling (We already conducted some personnel movement in the past few weeks and there will be more reshuffling) ,” he said.

The BIR initially suspended its audit operations back in November following calls to investigate the alleged abuse and misuse of LOA issuances. Business owners, both local and foreign, told senators that BIR personnel would use LOAs to pressure them into paying a “discounted” rate to avoid an inflated assessment of their taxes due. – Rappler.com