PASAY CITY—Senator JV Ejercito has brought to light a shocking corruption scandal within the Bureau of Internal Revenue (BIR), alleging that certain personnel are pocketing a staggering 70% of the tax collection generated through the use of the agency's Letter of Authority (LOA). 

The LOA, a document used to authorize revenue officers to examine a taxpayer's books of account, is reportedly being "weaponized" by corrupt individuals for their own gain. 

The senator revealed he has received numerous complaints that the process has been systematically abused, transforming the mandatory tax audit procedure into a tool for extortion by rogue officials.

“Marami na tayong complaints, mga nakakausap nating local businessmen. Pero nabahala ako when the European ambassadors and some ambassadors of different countries, and the American and European chambers started to complain na pati sila had been subject to harassment by BIR through the LOA. So, they’re weaponizing the LOA for corruption.” The senator said in a press conference.

He warned that this corruption is creating a hostile investment climate, which sends a poor signal to both local and foreign investors. 

According to Ejercito, the corrupt practice has been particularly rampant from 2022 up to 2025, with the scheme allegedly involving personnel up to the regional director level. 

A common tactic cited in the complaints involves reopening past fiscal years' records that were already cleared, putting businesses under perpetual duress.

“As early as two years ago madami nang umaangal na kahit mga nakaraan na nilang fiscal years doon sa kanilang negosyo na cleared na, through LOA binunuksan ulit.”

Senator Ejercito, furthermore, has urgently called for comprehensive reform within the BIR and the establishment of clear, unambiguous policies to prevent the LOA from being abused. Immediate action has already been taken by BIR Commissioner Charlito Mendoza, who has ordered the suspension of the issuance of all new Letters of Authority and Mission Orders, as well as a halt to all existing field audits and operations, pending a thorough review.

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