BIR resumes investigation of errant individual, business taxpayers
By Jun Ramirez
Newly installed BIR Commissioner Romeo D. Lumagui, Jr. has finally lifted the ban on the issuance of Letters of Authority (LAs) to investigate individual and business taxpayers suspected of under declaring earnings to reduce tax payments.
Lumagui decided to resume the audit apparently to reduce the huge collection deficits incurred during the first 10 months of the year.
"All field audit, field operations and any form of business visitation in the execution of LA, or mission orders can now be conducted, Lumagui stated in signing Revenue Memorandum Circular No. 147-2022.
Former BIR Commissioner Caesar Dulay stopped the issuance of LAs shortly before he resigned, and which policy was maintaining by his successor Lilia Catris Guillermo.
Some revenue regional directors and district officers said the audit ban has caused the bureau to sustain huge collection losses as many taxpayers were encourage to cheat in the absence of investigation.
Records prepared by the agency's collection service showed more than P23 billion collection shortfall from January to October of 2022.
It raised only P1.72 trillion against the goal of P1.95 trillion.
The BIR is targeting to raise P2.4 trillion.