The Senate Blue Ribbon Committee is expected to hold a hearing on alleged anomalies within the Bureau of Internal Revenue (BIR), including concerns over “ghost collection” practices, after recent reports from business sectors about irregularities in Letters of Authority (LOAs), Senator JV Ejercito says.
During an interview on Magandang Umaga Pilipinas, Ejercito said that the timing of the hearing remains uncertain following a temporary suspension of Senate operations due to a one-day fire incident.
“Nagkaroon ng sunog nung isang araw. Kaya hindi namin alam kung kailan makakabalik siya normal yung operation ng building,” he explained.
Ejercito noted that the investigation will likely encompass not only the issuance of LOAs but also the controversial practices of ghost receipts and ghost collections.
He highlighted that many business owners have reported being overcharged or repeatedly audited, even when prior obligations had already been cleared.
“Medyo sumobra na din kasi for the past two years. halos lahat umaangal. Halos lahat talagang iniiyak nila itong LOA at kung ano-ano pa sa BIR,” Ejercito said, stressing the inconsistency in BIR policies.
The senator also addressed concerns about the proper disposition of collected funds. According to Ejercito, a significant portion of collections—sometimes up to 70 percent—does not reach government coffers.
He cited examples where the official receipt for multi-million-peso assessments was far below the assessed amount, raising suspicions of misappropriation.
“Mayroong 50-50, mayroong 60-40. Pero ang nagugulat ako, marami akong narinig. Halimbawa isang million ng assessment, 300,000 lang ang resibo,” Ejercito said.
Ejercito said the issue had been raised during budget hearings for the Department of Finance, where he noted that even as the government increases its spending and borrowing for projects like flood control, inefficiencies in revenue collection allow certain anomalies to enrich private pockets instead of the state.
When asked who will be called to testify, Ejercito deferred to Senate President Pro Tempore Ping Lacson but emphasized that the challenge will be finding resource persons willing to confront the BIR while advocating for taxpayers’ rights.
“Si Senator Lacson, sa kanyang magagaling [yung] listahan. Ang problema ko lang dito, Yung mabigat na challenge, kung sino magre-resource person laban sa taxpayer,” the senator explained.
