Bureau of Internal Revenue (BIR) Commissioner Charlito Martin Mendoza assured the public that the agency will not tolerate corrupt personnel who use Letters of Authority (LOA) to harass businesses or earn illicit income.
In an exclusive interview in dzRH's Dos Por Dos, Mendoza clarified that LOAs are legitimate enforcement tools intended to verify whether taxpayers are paying the correct amount of taxes.
"Temporary lang naman po ang suspensyon na ito. Sabi ko nga po, hindi po masama ang letter of authority itself or ang audit, 'yan po ay itinatadhana ng batas. At kailangan naman po talaga ng BIR yan upang masiguro natin na talagang nagbabayad ng buwis," Mendoza said.
"This is a necessary enforcement tool po para maquantify natin at ma-verify natin kung talagang bang tama ang buwis na binabayad ng isang taxpayer. At ito po ay sanction naman ng batas," he added.
The problem, Mendoza stressed, arises when certain officials weaponize the LOA for extortion, such as some businesses reported being told by BIR staff that they would be “visited again later,” raising concerns that old practices may simply resume after the suspension.
"Nagkakaroon lamang po tayo ng problema kung hindi ito nagagamit ng maayos. Dapat pag mag-i-issue tayo ng letter of authority or magcoconduct tayo ng audit, kinakailangan tama ang basehan, legally at factually, and this should be done with a genuine intention. Titignan po natin yan, hindi po tamang pananaw ng ating mga kawani," he emphasized.
"I'm sure marami tayong mga kasamang mga kawani sa BIR na nagtatrabaho naman ng maayos. 'Yun po ang masama at hindi po natin itotolerate yan," he noted.
The commissioner dismissed fears that suspending LOAs might encourage tax evasion.
"Sisiguraduhin po natin na kapag nag-resume na po ang audit, mababawasan po ang kanilang discretion sa pagcoconduct ng audit upang naiwasan po natin yung mga ganitong nga po na nagagami sa pang-aabuso, sa extortion or panghaharap ng ating mga taxpayers," he said..
The agency is reviewing protocols with the goal of lifting the suspension within two to three months—possibly by late January or by February to March.
Meanwhile, Mendoza also acknowledged that ongoing investigations into alleged flood control anomalies in government projects have affected the BIR’s revenue performance.
"Because of these issues, especially itong flood control anomalies na iniimbestigahan ng gobyerno natin, ay nagkaroon po talaga ng impact, kung titingnan, sa ating revenue collection. Sapagkat during the first semester, mataas po ang growth natin year on year. But simula nung nagsimula nga po ang investigasyon, since July, bumababa po ang ating collection when we compare to our collection last year," he noted.
"During the first half, double digit ang growth natin. But since July, single digit na lang po. Medyo patuloy na bumababa," the BIR chief added.
He attributed the decline partly to slowed government spending and delayed remittances from agencies such as the Department of Public Works and Highways (DPWH).
"Ang taxes, lifeblood of the nation yan. Kailangan po natin yan. Pasweldo sa mga tao natin. Mga guru, mga pagpapatayong mga structure," Mendoza said.
Mendoza expressed frustration that even when the BIR successfully raises revenues, corruption in project implementation undermines public trust.
