MBC hails BIR, BOC reformation efforts

The Makati Business Club (MBC) has expressed support for the Bureau of Internal Revenue’s (BIR) decision to immediately suspend all pending Letters of Authority (LoAs) and Mission Orders (MOs).

In a statement published Tuesday, 25 November, MBC commended the BIR and its parent agency, the Department of Finance (DOF), for swiftly responding to taxpayers’ complaints that LoAs and MOs were allegedly being weaponized as part of an agency-wide extortion scheme.

“The business community has been complaining about the weaponization of these instruments to squeeze more money out of responsible and legitimate taxpayers, instead of [targeting] tax evaders,” the statement read.

“MBC would like to thank the new Finance Secretary Frederick Go, and the new BIR commissioner [Charlito] Mendoza for their prompt action on this issue,” it added.

MBC said it recently met with newly appointed Executive Secretary Ralph Recto and BIR Commissioner Mendoza to discuss the concerns, including the creation of a Technical Working Group announced by Mendoza on Monday. The group will address the alleged extortion scheme within the BIR, propose improvements to the audit system, and tackle tax refund issues and the ongoing digitalization of the DOF and its attached agencies.

“We applaud Commissioner Mendoza’s vision of making tax administration ‘predictable, evidence-based, technology-driven, and fair,’” the group said.

The organization added that it also met with Bureau of Customs (BOC) Commissioner Ariel Nepomuceno to “discuss the concerns of the business community,” noting its support for the BOC—which also suspended LoAs—as part of broader reformation efforts under the DOF.

This week, Senator Erwin Tulfo made serious accusations regarding the BIR’s alleged weaponization of audit documents and called for a Senate Blue Ribbon Committee investigation into the Bureau’s supposed extortion practices.

The Anti-Red Tape Authority (ARTA) reported Tuesday that the BIR ranked as the third most-complained-about agency in the country, with the BOC ranking tenth, based on complaints filed between 1 January and 31 October 2025. The data reflects public sentiment toward the agencies during former DOF Secretary Recto’s tenure.

“MBC would be honored to collaborate with the Department of Finance, the Bureau of Internal Revenue, and the Bureau of Customs to achieve real reform toward President Marcos Jr.’s overarching directive for efficient and fair revenue collection,” MBC said.

“This is a key component in improving the business environment to attract investors that will generate more jobs and jump-start the economy,” the group added.