MBC, GPCCI welcome BIR audit freeze

MBC, GPCCI welcome BIR audit freeze | Daily Tribune

The Makati Business Club (MBC) and the German-Philippine Chamber of Commerce and Industry (GPCCI) have expressed support for the Bureau of Internal Revenue’s (BIR) decision to immediately suspend all pending Letters of Authority (LoA) and Mission Orders (MO).

In a statement published on Tuesday, 25 November, MBC commended the BIR and its parent agency, the Department of Finance (DoF), for responding quickly to taxpayers’ complaints that LoAs and MOs were allegedly being weaponized in an 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 group said.

MBC said its leaders recently met with former Finance Secretary and newly appointed Executive Secretary Ralph Recto, as well as new BIR Commissioner Charlito Mendoza, to discuss taxpayer concerns.

BIR Technical Working Group to address extortion schemes

The meeting also tackled the creation of a Technical Working Group — announced by Mendoza on Monday — to address the alleged extortion scheme, improve tax refund processes, and accelerate the digitization of the DOF and its attached agencies.

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

The group added that it also met with Bureau of Customs Commissioner Ariel Nepomuceno to discuss business sector concerns, expressing support for the BoC’s own suspension of LoAs as part of broader reform efforts.

Halting field audits welcomed

Meanwhile, GPCCI released a separate statement on Wednesday, 26 November, likewise welcoming the BIR’s decision to halt all field audits.

The chamber said the move reflects “the government’s commitment to transparency, accountability, and fairness in tax administration” amid rising concern from foreign companies operating in the Philippines.

“GPCCI underscores that transparent and predictable audit procedures are vital to sustaining investor confidence,” the statement read. German firms, the chamber noted, consistently emphasize the need for clear and stable tax rules — especially for cross-border operations and intercompany transactions.

GPCCI also stressed the importance of continuous dialogue between government and the private sector. “Ensuring clarity in such matters will further support efforts to enhance tax administration and reduce uncertainty for both local and foreign investors,” it added.

Weaponizing LoAs and MOs for extortion

The calls for reform come as Senator Erwin Tulfo accuses the BIR of weaponizing LoAs and MOs for extortion, urging the Senate Blue Ribbon Committee to launch a formal investigation.

The Anti–Red Tape Authority (ARTA) also reported that from 1 January to 31 October 2025, the BIR ranked as the third most-complained-about agency in the country, while the BoC placed tenth — reflecting widespread public frustration during former DoF Secretary Recto’s term.

In its concluding message, MBC reiterated its willingness to collaborate with the DoF, BIR and BoC to push for genuine reform. “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 said.

GPCCI echoed the sentiment, affirming its readiness to work with government partners to advance reforms that “reinforce good governance, strengthen investor trust, and enhance the Philippines’ competitiveness as a destination for trade and investment.”