Metro Manila, Philippines – The Bureau of Internal Revenue (BIR) announced on Tuesday, Jan. 27 the resumption of tax audits, after lifting the suspension on the issuance of letters of authority (LOA).
In a press briefing, Finance Secretary Frederick Go said the BIR held a comprehensive framework review amid complaints of irregularities and inconsistencies in the audit process.
The LOA issuance was suspended in November to allow the agency to “address systemic issues, protect taxpayer’s rights, and develop a transparent framework.” It ordered all BIR offices to temporarily stop field audits, including the examination and verification of taxpayers’ accounts and other related transactions.
An LOA authorizes revenue officers to examine a taxpayer’s books of accounts and records to audit tax compliance
“It (BIR) has designed concrete reforms to make audits fairer, more predictable, and more accountable… As audits resume, we urge taxpayers and the public to actively participate in implementing these reforms,” said Go.
BIR Commissioner Charlito Mendoza said the agency will carry out a single-instance audit framework as part of the reforms.
“Generally, one letter of authority per taxpayer per taxable year with the consolidation of multiple audit authorities into a single letter of authority subject to clearly defined exceptions,” he said.
Mendoza said the BIR is launching a new feature in its chatbot called LOA Verifier, where taxpayers can validate the authenticity of LOAs by inputting the taxpayer’s name, identification number, and case number. It is accessible through the website <bir.gov.ph>.
“This is now up in the system and the taxpayers can now verify if the letter of authority that was issued to them was indeed officially issued by the BIR,” he said.
Mendoza said the BIR will also launch a so-called audit-the-auditor program to ensure accountability of its officers.
