Go suspends BIR audit ops, cites need for policy review

Newly appointed Finance Secretary Frederick Go has suspended the issuance of Letters of Authority (LOA) and Mission Orders (MO) to allow a “careful and comprehensive review” of policies governing the Bureau of Internal Revenue (BIR) audit operations.

The move comes after multiple reports of taxpayer harassment, prompting Go to pause all LOA and MO activities.

“Kaya po natin sinuspinde muna ang pag-iisyu ng letter of authorities at mga mission order kasi kailangan nating gumawa ng isang careful at comprehensive review ng mga patakaran na ito, polisiya na namumuno ng mga letter of authority,” he said in an interview with DZRH, Tuesday.

Go, who assumed office last week, directed the immediate suspension of the Field Audit and Related Operations Act, as implemented Monday.

During the suspension period, no LOA or MO shall be created, printed, signed, or served.

He explained that MOs give the BIR authority to conduct surveillance or site inspections, while LOAs allow the agency to enter businesses and inspect books and documents, similar to a search warrant.

“May authority talaga po ang BIR to go into the books and documents of the company,” Go said, noting that taxpayers must comply once a LOA has been issued.

He stressed the importance of probable cause before audits.

“Dapat meron kang probable cause bago ka pwedeng pumasok. Hindi naman puwede po na wala kayong probable cause, basta lang papasok kayo at guguluhin ang taxpayer. Wala naman po kayong ebidensya o probable cause para gawin ang lahat ng actions na ito,” he said.