Senator seeks probe into alleged ‘weaponization’ of BIR audits

By Wilnard Bacelonia, Philippine News Agency

Senator Erwin Tulfo (Senate of the Philippines/facebook)

MANILA – Sen. Erwin Tulfo filed a resolution urging the Senate Blue Ribbon Committee to investigate the alleged misuse and “weaponization” of Letters of Authority (LOAs) issued by the Bureau of Internal Revenue (BIR), amid reports that some personnel have turned the audit tool into a source of harassment and extortion.

Under proposed Senate Resolution No. 180, Tulfo cited mounting complaints from businesses, both foreign and local, describing patterns of excessive, improper and irregular LOA issuances.

“LOAs have allegedly been ‘weaponized’ by certain BIR personnel, transforming what should be a lawful audit instrument into a tool for harassment, bribery, and extortion,” Tulfo said.

He raised concerns flagged in the resolution regarding LOAs being issued for taxable years that were already settled, combining multiple taxable years in a single audit, and manipulating assessments in exchange for unofficial settlements.

The measure notes that “foreign chambers of commerce and domestic businesses have raised concern over excessive and irregular LOA issuances,” including instructions to falsify receipts and pressure to pay “discounted” settlements outside government channels.