The Makati Business Club (MBC), the country’s premier association of top executives, threw its weight behind Bureau of Internal Revenue (BIR) Commissioner Charlito Mendoza, after the agency filed cases against 25 personnel for the alleged misuse and weaponization of tax audit orders.

The MBC said in a statement on Tuesday, Feb. 24, that the filing of cases involving Letters of Authority—the official documents that authorize revenue officers to examine a taxpayer's books—is a significant step toward upholding integrity and accountability within the tax administration.

The MBC move marks a rare public endorsement of a tax chief’s internal crackdown, signaling that the private sector views the purge as a critical prerequisite for improving the Philippine investment climate.

For years, the business community has complained that the LOA system is prone to abuse, often serving as a tool for harassment or extortion rather than legitimate revenue collection. These unjustified audit results and exploitative tax practices have long been cited as structural barriers to growth by both domestic and foreign investors.

By holding these 25 individuals accountable, the MBC said Mendoza is helping to dismantle decades-long practices that have historically made investors hesitant to maintain or expand their footprint in the Philippines.

The business group noted that establishing clear accountability for such abuses is essential to reassuring the global and local business community that the government is serious about systemic reform.

The goal, the MBC said, is to transition toward a fair and predictable tax environment that relies on transparency rather than the discretionary power of individual auditors.

The organization added that it intends to closely monitor the legal proceedings of these cases to ensure they are pursued to a just and final conclusion.

The endorsement comes at a sensitive time for the economy, which is still navigating the fallout from a period of heightened corruption concerns and policy uncertainty in 2025.

The MBC applauded Mendoza’s leadership, describing the crackdown as a demonstration of the political will necessary for long-term economic recovery.

The group expressed its willingness to support ongoing efforts to modernize and professionalize the tax bureau, framing the reform as a key pillar for a more investor-friendly Philippines.