PCCI welcomes suspension of BIR’s tax audit operations
The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business organization, has thrown its support behind the government’s decision to suspend all field audits and related operations of the Bureau of Internal Revenue (BIR).
In a statement on Tuesday, the PCCI said the temporary halt, announced by the Department of Finance (DOF) on Monday, would allow small businesses to focus on holiday sales and year-end planning instead of dealing with audit requirements.
“This intervention provides crucial and immediate relief to businesses, especially micro, small and medium enterprises, by granting them much-needed operational breathing room to better focus on year-end priorities such as strategic planning, inventory management and holiday season sales without the added pressure of a BIR audit,” the PCCI said on Tuesday.
Grave concerns
The suspension follows concerns raised in the Senate that Letters of Authority (LOAs), which empower the BIR to check a taxpayer’s documents to ensure tax compliance, were being “weaponized” to “make money.”
The suspension freezes the issuance, creation, printing and signing of LOAs and Mission Orders (MOs), effectively putting all audit-related enforcement on hold during the review period. Only legally required or urgent cases may proceed.
The PCCI praised the “decisive action” of newly appointed Finance Secretary Frederick Go and the “swift implementation” by the BIR under its new commissioner, Charlie Mendoza.
According to Mendoza, the BIR had also formed a technical working group (TWG) on “LOA and MO Integrity and Audit Reforms,” to review current tax audit protocols and recommend safeguards.
The PCCI—which counts 30,000 members from private firms, associations and chambers of commerce—said the move was a crucial step toward improving the audit system.
“The creation of the TWG to conduct a comprehensive review signals a concrete and meaningful step toward addressing long-standing concerns about clarity, consistency, and proper oversight in audit processes,” it said.
Internal controls
“PCCI sees this as an important opportunity to improve guidelines, strengthen internal controls, and ensure that the audit system fully aligns with established rules and the principles of due process,” it continued.
The group said it was ready to work with the DOF and BIR throughout the reform process.
“Our shared goal is to cultivate a tax system that protects compliant taxpayers, supports efficient and fair revenue collection, and upholds the standards of accountability, integrity, and transparency,” it said.
