Former Bureau of Internal Revenue (BIR) Commissioner Atty. Romeo Lumagui Jr. on Thursday vowed full cooperation with the Senate Blue Ribbon Committee as it begins its investigation into the alleged anomalies involving Letters of Authority (LOAs).
Lumagui issued the statement as the committee opened its probe into the supposed misuse of LOAs. His remarks came after Senator Erwin Tulfo, in his opening statement, criticized the alleged abuse of LOAs and mission orders by “unscrupulous” BIR personnel based on complaints from small business owners and international companies.
Tulfo said traders have long complained about uneven tax assessments, but instead of addressing their concerns, they were allegedly subjected to intimidation and dubious demands in exchange for the withdrawal or partial resolution of tax investigations. He further claimed that some BIR personnel were extorting businessmen by taking at least 25 percent from tax collections through LOAs and mission orders.
In response, Lumagui said he had implemented four key programs to curb corruption in the agency, particularly focusing on strengthening integrity and professionalism among employees.
“Number two, of course, in conjunction with the excellent or bringing about the integrity and professionalism of the institution. We focused also on the digitalization program of the BIR. That would focus also on integrity and professionalism as well as give excellent tax payers service,” Lumagui said.
He added that the fourth program aims to level the playing field by aggressively running after tax evaders, including large businesses that have avoided paying correct taxes.
“That's why we went all out war, we raged all out war against illicit trades and all these illicit traders. And this is also, again, as I mentioned, not just to collect taxes from the big-time tax evaders, but also to protect the legitimate tax payers and legitimate businesses because we want to level the playing field,” he said.
Records show Lumagui emerged as one of the most reform-driven leaders of the BIR following his appointment as commissioner in November 2022.
Under his tenure, he launched an ambitious digital transformation agenda, highlighted by the Online Registration and Update System (ORUS), which digitized core taxpayer services and reduced reliance on physical transactions.
He also led the BIR in achieving full nationwide ISO certification for the first time, standardizing processes, strengthening internal controls, and improving service quality across all regional and district offices. These reforms were complemented by enhanced engagement with the private sector, streamlining compliance and building stronger trust between the BIR and business communities.