Senate Deputy Majority Leader Joseph Victor “JV” Ejercito on Tuesday, Nov. 25, expressed alarm over alleged corruption involving the Bureau of Internal Revenue’s (BIR) use of Letters of Authority (LOAs), claiming that a significant portion of collections from these audits do not reach the government.

During a press conference, Ejercito said complaints from local businessmen have been mounting for at least two years, with them reporting that even previously cleared fiscal years are being reopened through new LOAs.

He added that the issue has escalated to the foreign business community.

"Marami na tayong complaints, nakakausap na mga local businessmen pero nabahala ako na yung when the European ambassadors, and some ambassadors of the different countries, and the American and European chamber started to complain (We’ve received many complaints and have spoken with local businessmen, but I became more concerned when the European ambassadors, some ambassadors from other countries, and the American and European chambers also began to complain)," he said.

“They’re weaponizing the LOA for corruption,” Ejercito added.

Ejercito explained that while he supports legitimate revenue-generating measures, the system must not be abused.

“We have to strike a balance,” he said, warning that such practices send a negative signal to both local and foreign investors.

“Dapat clear-cut yung policies natin, may mga safeguards tayo na hindi prone to abuse (Our policies should be clear-cut, and we must have safeguards that are not prone to abuse),” he added.

Asked about who within the BIR was allegedly involved, Ejercito said the complaints cited personnel from various levels, from revenue officers up to regional directors.

According to the senator, the BIR had reportedly projected to raise ₱6–8 billion through LOA-related audits. However, the amount actually remitted was significantly lower. Ejercito alleged that this shortfall was due to large portions of collections being diverted.

“Ang na-raise nila P2-3 billion lang. Bakit? Kasi yung 70 percent na nakokoloketa hindi pinapasok, baligtad yun ang napupunta sa bulsa, 30% lamang pinapasok (They were only able to raise ₱2–3 billion. Why? Because 70 percent of what is collected isn’t remitted; it’s the other way around — that portion goes into pockets, and only 30 percent is actually remitted to the government),” he said.

Ejercito lamented what he described as a pattern of schemes across agencies.

“Parang nakakalungkot na lahat na lang di lang DPWH, lahat na gumagawa ng kanya kanyang diskarte (“It’s quite sad that now it’s not just the DPWH — everyone seems to be coming up with their own schemes),” he said.

“Nakakalungkot eh, sana mas malaki man lang pinapasok sa gobyerno eh, kumurot man lang nang konti pero baligtad eh 70 percent dinadakma 30 percent pinapasok sa gobyerno (It’s really disheartening. At the very least, they could have remitted a bigger portion to the government — maybe just taken a small cut — but it’s the opposite: 70 percent gets pocketed and only 30 percent goes to the government),” he added.

The Letter of Authority is the BIR's primary legal document empowering revenue officers to conduct audits. It is intended to ensure due process, proper identification of examiners, and a clear legal basis for any inspection of a taxpayer’s records.

Senator Erwin Tulfo filed Resolution No. 180, emphasizing that the Senate Blue Ribbon Committee must investigate these allegations so as not to discourage investors in the Philippines in the long run.