Erwin Tulfo: Senate blue ribbon to probe 'LOA scheme' at BIR
At A Glance
- The Senate is set to look into the alleged money-making scheme involving Letters of Authority (LOAs) issued by the Bureau of Internal Revenue (BIR), following a series of complaints from small to big businesses afflicted by such activity, according to Sen. Erwin Tulfo.
The Senate is set to look into the alleged money-making scheme involving Letters of Authority (LOAs) issued by the Bureau of Internal Revenue (BIR), following a series of complaints from small to big businesses afflicted by such activity.
Sen. Erwin Tulfo, in filing Senate Resolution No. 180 said it is imperative for the Senate Blue Ribbon Committee to investigate these allegations so as not to discourage investors in the Philippines in the long run.
“While we are busy investigating the flood control mess, there is corruption thriving in the BIR,” Tulfo said during a press briefing at the Senate on Monday, November 24.
“That’s why I said during the plenary debates of the agency that they are second among the most corrupt agencies, following the Department of Public Works and Highways (DPWH),” the neophyte senator pointed out.
Tulfo, vice chairman of the blue ribbon panel, said he is eyeing inviting BIR personnel—from examiners to regional directors—even former BIR commissioner Romeo Lumagui, to the investigation.
According to Tulfo, the BIR has been releasing LOAs to the detriment of business owners.
“This is too much! Even though the business owners are paying their taxes, they will still be given an LOA, like a search warrant into their business records,” he pointed out.
Aside from Tulfo, Senators Joseph Victor “JV” Ejercito and Loren Legarda have also received similar complaints from the business sector.
Aside from a Senate probe, Tulfo also urged the BIR, now under a new leadership, to reshuffle its officials.
“I urge the new commissioner to do a reshuffle because from the complaints we received, the regional directors may have a hand in this,” he declared.
Tulfo warned such scheme should stop as it not only degrades Filipino business owners but also discourages investors from generating business in the country.
Earlier, Ejercito exposed the BIR’s alleged “extortion scheme” and warned against the “weaponization” of LOAs after foreign chambers and diplomatic partners raised complaints against the “LOA scheme.”
“If not carefully regulated, [this] may create an atmosphere of uncertainty among businesses and discourage investors who may perceive it as a sign of unpredictability or overreach in tax administration,” Ejercito said.