Aquino bats for MSMEs protection vs. erring BIR personnel

Senator Bam Aquino has called on the government to take decisive action to protect micro, small, and medium enterprises (MSMEs) from harassment and corruption.

Aquino made the statement after receiving numerous complaints from MSMEs across the country about abusive personnel from the Bureau of Internal Revenue (BIR) using letter of authority (LOAs) to extort money from them.

"In the previous campaign this year, in all the chambers I visited, local chambers, Philippine chambers, Chinese chambers, whether it was in the provinces or here in the city, the complaints from MSMEs when it comes to the BIR and the LOA were serious," Aquino said.

The senator added that many MSMEs are afraid to speak out due to fear of retaliation from erring BIR personnel, making them even more vulnerable to harassment, exploitation, and abusive audits.

Aquino also raised the possibility that some businesses received LOAs that do not appear in official records, suggesting that they could be fake and potentially issued by rogue BIR officials.

"If they receive a LOA that's not in a list, it's not real. Someone is scamming them, and sometimes, fake LOAs might actually come from officials of BIR," he pointed out.

To protect MSMEs, Aquino proposed stronger transparency measures, including the public release of all LOAs so businesses can verify whether an audit order is legitimate and prevent fraudulent issuance.

"If we have this level of transparency, I think many will be encouraged to come forward with their stories when it comes to harassment or extortion," he added.

Aquino also urged the BIR to analyze multiple years’ worth of audit data to determine whether certain taxpayers are being repeatedly targeted, flagged, or favored.

He also proposed removing the power of Regional District Offices to independently select audit targets and suggested instituting a truly random audit system to ensure fairness and prevent selective targeting.

Aquino, meanwhile, commended BIR Commissioner Charlie Mendoza for issuing a directive that all LOAs must now be approved by the Commissioner, strengthening oversight, ensuring accountability, and reducing potential abuse.