Metro Manila, Philippines – The Senate will again summon the Bureau of Internal Revenue (BIR) following the resumption of the issuance of Letters of Authority (LOAs), this time to explain reforms implemented in response to corruption complaints.

LOAs mark the beginning of a full-scale tax audit, allowing the BIR to examine tax records, books, and other documents for compliance. Complaints that agency officials and personnel used LOAs to harass and extort money from both small and large businesses prompted the blue ribbon committee to investigate.

On Nov. 24, the BIR suspended all field audits and operations, including the issuance of LOAs, to review existing procedures and institute reforms.

Two months later, on Jan. 27, the agency resumed tax audits and field operations, introducing new policies to prevent the abuse of LOAs, such as limiting it to one issuance per taxpayer per year.

“The Senate BRC needs to be formally informed of the new reforms instituted by the BİR in relation to the issuance of LOA and if safeguards are already in place to prevent or at least minimize abuse committed against our taxpayers, then we may have to conclude the committee hearings on the matter,” Senate President Pro Tempore Panfilo “Ping” Lacson said in a statement on Monday, Feb. 2.

“We will schedule a hearing this week in this regard to hear what the BİR has to say,” the committee chairman added.

Senator JV Ejercito, who is vocal about the issue, noted that the issuance of LOAs will now require the green light of the BIR commissioner. Only the regional director’s approval was needed in the past.

“Big improvement ito, hopefully this will prevent further abuse from erring BIR officers who take advantage,” Ejercito said. “We have to give the new commissioner the chance to institute these reforms and clean up BIR.”