MANILA — Senator Bam Aquino questioned Bureau of Internal Revenue (BIR) officials during a Blue Ribbon Committee hearing about the issuance of Letters of Authority (LOAs) and concerns of harassment among small and medium business owners.

Aquino highlighted recurring complaints from businesses about the BIR’s LOAs, noting that assessments were often allegedly baseless or inflated to force settlements. “Paulit-ulit po yan. Yung mga LOA, yung mga assessment, walang basehan. Or kung masyadong mang mataas, ginagawang mataas para lang po mag-settle,” he said, commending Senators Tulfo and Ejercito as well as the new BIR commissioner and Finance Secretary Frederick Go for addressing the issue.

BIR Commissioner Charlie Mendoza provided data showing that 62,462 LOAs were issued in 2023, 75,510 in 2024, and 82,145 from January to October 2025. Mendoza said taxpayer information under these LOAs is protected under the National Internal Revenue Code but can be provided to the committee in executive session.

Aquino raised concerns about potential fake LOAs and repeated audits on the same taxpayers, emphasizing the need for transparency. Mendoza confirmed that a technical working group is reviewing audit processes and will propose recommendations.

The senator also asked which areas issued the most LOAs. Mendoza cited Manila, Caloocan City, Quezon City, South NCR, and Makati City, noting this is likely due to the concentration of businesses in Metro Manila.

Aquino praised the commissioner’s plan requiring National Office approval for all future LOAs to reduce potential fraud or corruption. Former Commissioner Romeo Lumagui explained the BIR’s automated audit selection program, which aims to minimize human intervention and fully automate the audit process, separate from the fake receipts syndicate cases.

Attorney Kim Jacinto-Henares noted that while automation exists, audit parameters should also consider business cycles to avoid unfairly penalizing companies during low-revenue years. She added that audits generally push compliance but must avoid creating corruption.

Finance Secretary Go said total collections from enforcement activities amounted to P63 billion in 2023, P85 billion in 2024, and P78 billion as of October 2025, representing about three percent of total collections in recent years. He acknowledged that BIR remains the top complaint among investors, especially foreign firms.

Aquino stressed the importance of addressing concerns from small and medium enterprises, which often feel helpless against potential harassment. Mendoza said the BIR has created a dedicated email account for audit concerns and commits to responding promptly while protecting whistleblowers’ identities.

Aquino concluded that further hearings would include direct consultations with Chambers of Commerce and MSME councils to ensure transparency and accountability in LOA issuance.