Finance chief vows LoA racket probe

Finance chief vows LoA racket probe | Daily Tribune

The Department of Finance (DoF) has pledged full cooperation with the Senate Blue Ribbon Committee’s ongoing investigation into the alleged misuse of Letters of Authority (LoAs) and Mission Orders (MOs) by the Bureau of Internal Revenue (BIR).

Speaking at the BRC hearing on Thursday, 11 December, DoF Secretary Frederick Go reaffirmed the agency’s commitment to safeguarding the welfare of Filipino taxpayers.

“The DoF extends its full support and cooperation in addressing the long-standing concerns of our taxpayers regarding red tape, audits, and alleged weaponization of letters of authority and mission orders,” he said.

Go earlier ordered the suspension of all field audits and the issuance of new LoAs and MOs during his first week in office.

Senator Erwin Tulfo, vice chair of the Senate panel, sought the investigation following reports of an alleged BIR-wide extortion scheme. He also claimed that as much as 70 percent of tax collections were being pocketed by BIR officials, with audits allegedly used to target small businesses.

The BRC formally opened its probe on Thursday. During the hearing, BIR Commissioner Charlito Mendoza announced that the Bureau has filed administrative complaints for alleged direct bribery and corruption against two employees arrested in an entrapment operation in Taguig City.

Mendoza said he immediately ordered the preventive suspension of Revenue Officer Elisha Dimayacyac and Group Supervisor Grace Lapu-os, while a formal internal investigation is now underway.

Suspended for 90 days

An administrative case was filed against them. It is undergoing investigation. They were suspended for 90 days as a preventive measure. Investigation and hearing are ongoing,” Mendoza said.

He added that the BIR is developing a digital system to identify which taxpayers will be audited, reducing discretion in the selection process. Any audits issued outside the system will be considered void, and those responsible will be held accountable.

“We welcome this investigation. President Ferdinand R. Marcos, Jr. has made it unequivocally clear that we will not tolerate corruption in government,” Go added.

The Bureau is also building a portal to track the status of all pending LoAs. It is refining its policy to ensure that only the BIR Commissioner or Deputy Commissioner may approve LoAs and MOs, strengthening checks and balances.