FFCCCII backs reforms to curb tax audit abuse

The Federation of Filipino Chinese Chambers of Commerce and Industry Inc. (FFCCCII) on Tuesday expressed support for a government initiative to restrict the misuse of tax audit instruments, saying the move would boost investor confidence and economic growth.

Department of Finance Secretary Frederick Go led the reform to introduce rigorous measures curtailing the misuse of Letters of Authority (LOAs) within the Bureau of Internal Revenue (BIR).

The business group described the measure as a pivotal advancement in governance that aligns with calls for transparency and the equitable application of the law.

The FFCCCII said the engine of the economy requires systemic clarity and ease of doing business to encourage investments necessary for sustainable growth. Arbitrary or overreaching enforcement actions erode the confidence needed for businesses to expand and create jobs, according to the group.

FFCCCII president Victor Lim said the action by Go transcends mere procedural adjustment and represents an investment in confidence. By instituting greater transparency and accountability in tax audit processes, the government protects the integrity of institutions and fuels innovation, Lim said.

The federation said it has consistently advocated for a balanced approach where enforcement and taxpayer protection serve as complementary pillars of the fiscal ecosystem. It noted that practices such as audits exceeding their scope, overlapping investigations and a lack of digital traceability create uncertainty that discourages both compliance and capital.

The group said the reform signals to the international investment community that the Philippines is committed to being a rules-based and predictable destination for capital.

Protecting investors from arbitrary administrative actions is a prerequisite for long-term economic partnerships and competitive modernity, the group said.

The FFCCCII said it remains a partner of the government in fostering a policy environment where enterprise can flourish.

The organization said it is ready to work with the Department of Finance and the BIR to ensure the reform agenda results in a more robust and thriving Philippine economy.