Finance Secretary Frederick Go on Monday ordered the immediate and temporary suspension of all field audits and related operations of the Bureau of Internal Revenue (BIR) following allegations of a money-making scheme involving the agency’s Letters of Authority (LOAs).

“This is in response to concerns raised by taxpayers regarding the issuance of Letters of Authority and Mission Orders. We hear the people. We hear your concerns and are immediately acting on them. The people deserve better,” Go said.

He added that the Department of Finance is committed to protecting taxpayers from potential abuse through a comprehensive review of the BIR’s existing policies and procedures.

“All taxpayers shall be treated with the highest degree of professionalism, courtesy, and adherence to the rule of law. Our economy is built upon the contributions of our taxpayers who deserve fair and honest tax audits,” Go said.

BIR Commissioner Charlito Martin Mendoza said he ordered the suspension of all field audits and related operations, including the issuance of LOAs and Mission Orders, effective immediately under Revenue Memorandum Circular No. 107-2025.

“No LOA or MO shall be created, printed, signed, or served during the suspension period,” Mendoza said.

The suspension applies to all BIR offices involved in audit and field operations, including the Large Taxpayers Service, Revenue Regions and District Offices, Assessment Divisions, VAT Audit Units, and Intelligence and Special Audit Units.

Senators seek probe

Senator Erwin Tulfo, vice chair of the Senate Blue Ribbon Committee, said BIR personnel, from examiners to regional directors, and former Commissioner Romeo Lumagui, will be called once the Senate probe begins under Senate Resolution No. 180.

Tulfo said the investigation stems from complaints by businesses of all sizes affected by the LOA scheme.

“While we are busy investigating the flood control mess, there is corruption thriving in the BIR. That’s why I said during plenary debates that they are second among the most corrupt agencies, following the Department of Public Works and Highways (DPWH),” Tulfo said.

“This is too much! Even though business owners are paying their taxes, they are still served an LOA, like a search warrant into their business records,” he added.

Tulfo said his office has received at least five complaints about the scheme, while Senators JV Ejercito and Loren Legarda have also received similar complaints.

He also urged the new BIR leadership to reshuffle officials, citing possible involvement by regional directors in the alleged scheme.

Tulfo said the alleged practice undermines Filipino business owners and discourages investment in the country.