Senator Erwin Tulfo has called on the Senate Blue Ribbon Committee to open a formal investigation into what he describes as the rampant and abusive use of the Bureau of Internal Revenue’s (BIR) Letter of Authority (LOA), alleging that some revenue personnel have been extorting money from business owners under the guise of tax inspections.

Tulfo said his office has received multiple complaints from entrepreneurs who claim they were pressured into paying off BIR personnel to avoid repeated or unnecessary audits—even when their taxes had already been settled.

“Habang abalang-abala tayo sa flood control, may nangyayari pong corruption naman dito sa Bureau of Internal Revenue,” Tulfo said.

According to the senator, the LOA—meant to authorize an audit only when there is doubt regarding a taxpayer’s declared payments—has been weaponized against businesses of all sizes, from large corporations to single proprietors.

“Ang pagka-intindi ko sa LOA, ito ay parang search warrant. Bibigyan ka lamang kapag may duda sa binayad mong tax,” he said. “Pero kahit bayad na, iniinspeksiyon pa rin. Marami nang umaray mula Luzon hanggang Mindanao.”

Tulfo warned that the alleged scheme has turned the LOA into a “money-making operation” for rogue personnel and stressed the need for urgent Senate scrutiny.

“Ang objective po natin sa pagfafile nito ay para maimbestigahan ng blue ribbon itong money making scheme na corruption sa loob ng BIR gamit-gamit itong LOA o Letter of Authority,” he said.

Tulfo further expressed hope that the Senate Blue Ribbon will tackle the issue in the near future.

The Committee has yet to announce when it will officially take up the probe.