Business groups welcome suspension of tax audits

The Makati Business Club (MBC) and the Philippine Chamber of Commerce and Industry (PCCI) have welcomed the Department of Finance’s (DOF) directive to the Bureau of Internal Revenue (BIR) to immediately suspend all pending letters of authority (LoA), mission orders (MO) and related field audits. The directive was implemented through Revenue Memorandum Circular (RMC) 107-2025.

Both organizations said the move provides immediate relief to businesses, especially micro, small and medium enterprises, by easing audit pressures during a period when companies are focused on year-end operations, strategic planning and holiday sales.

The business community has long raised concerns over the misuse of LoAs and related instruments against legitimate taxpayers, instead of concentrating on actual tax evasion.

The groups expressed appreciation to Finance Secretary Frederick Go and newly-appointed BIR Commissioner Charlito Martin Mendoza for their swift action.

They also acknowledged former Finance Secretary Ralph Recto, who met with MBC weeks earlier, together with then-DOF Undersecretary Mendoza.

At that meeting, they agreed to form a technical working group (TWG) to address issues surrounding LoAs, tax refunds and ongoing digitization efforts across the DOF, BIR and the Bureau of Customs (BOC).

MBC and PCCI particularly welcomed the BIR’s creation of a TWG to review and update existing policy frameworks on LoA issuance and audit procedures to ensure clarity, consistency, stronger internal controls and full alignment with due process.

PCCI, as lead convenor of the Partnership with Multi-Sectoral Group (PMSG), pledged its readiness to provide technical inputs and practical insights to support this review.

MBC also noted that the Bureau of Customs has suspended the issuance of LoAs and has begun its own reforms following discussions with BOC Commissioner Ariel Nepomuceno.

Both organizations support Mendoza’s vision of making tax administration “predictable, evidence-based, technology-driven and fair,” with systems designed to protect taxpayers while enabling efficient revenue collection.

MBC and PCCI said they stand ready to collaborate with the DOF, BIR and BOC to advance meaningful reforms consistent with President Marcos Jr.’s directive for efficient and fair revenue collection.