The Bureau of Internal Revenue (BIR) ordered an inventory of all pending Letters of Authority (LOAs) and Mission Orders (MOs) from regional directors, revenue district officers, and heads of audit units for immediate review.

BIR Commissioner Charlito Martin R. Mendoza’s latest order comes after he temporarily suspended last week the issuance of all field audit-related documents and operations.

The sweeping suspension follows serious allegations from senators and the business community that corrupt revenue examiners have been “weaponizing” these documents—which authorize tax audits and inspections—to harass taxpayers and solicit bribes.

Mendoza stated the suspension will remain in effect until the BIR establishes a more accurate, transparent, and taxpayer-protective audit system.

He has also formed a Technical Working Group to evaluate existing procedures, identify systemic vulnerabilities, and recommend new, integrity-based protocols, including the integration of digital safeguards.

The issue was brought to the forefront by Senator JV Ejercito, who claimed that only about 30 percent of the collections arising from LOA- and MO-initiated audits actually reach the government, with the remaining 70 percent allegedly pocketed by unscrupulous officials, potentially reaching up to the regional director level.

Ejercito noted the complaints came from both local and foreign chambers, warning that the corruption is creating a hostile investment climate.

Despite these accusations, some insiders maintain that the issuance of LOAs encourages voluntary compliance, as many taxpayers choose to submit more accurate declarations to avoid complications that may arise during future audits.

Records show that roughly 92 percent of the BIR’s annual collections come from voluntary compliance, with the remaining share generated through investigations. The peso currency remains the standard for all collections mentioned.