Business group supports measures to curb tax audit abuse

The Philippine Chamber of Commerce and Industry (PCCI) expressed support for Finance Secretary Frederick Go’s move to introduce measures curbing the alleged misuse of letters of authority within the Bureau of Internal Revenue.

The business group said the initiative is a timely step toward strengthening taxpayer protection and ensuring enforcement powers are exercised within the bounds of law.

PCCI President Enunina Mangio said tax enforcement should be firm but fair, noting that the misuse of audit powers erodes trust and discourages voluntary compliance.

The chamber said businesses have long raised concerns over tax audit practices, including the use of letters of authority and mission orders for activities beyond limited fact-finding.

Other issues include audits that continue beyond their validity or scope, repeated audit notices covering the same periods and a lack of transparency in the monitoring of audit authorities.

When left unchecked, these practices expose taxpayers to undue pressure and weaken confidence in the tax system, according to the PCCI.

The group said that while enforcement is essential to revenue generation, it should be balanced with safeguards that protect due process and ensure accountability.

PCCI officials said that properly issued, time-bound and digitally-tracked audit authorities are critical to maintaining a level playing field.

The group underscored the importance of these reforms to investment promotion, noting they help protect foreign investors from arbitrary or abusive practices.

Clear rules and consistent enforcement are key to reinforcing the Philippines’ reputation as a predictable place to do business, the group said.

Mangio said protecting taxpayers from abuse is not anti-enforcement, but is instead pro-good governance.

The chamber said it looks forward to collaborating with economic managers and the BIR through the BIR-Private Multisectoral Group.

The coalition of business organizations said it coordinates with the tax bureau on issues and concerns to support reforms that promote transparency and accountability.