The business community expressed relief over the suspension of the suspension of all pending Letters of Authority (LoA) and Mission Orders (MO) of the Bureau of Internal Revenue (BIR).
The Philippine Chamber of Commerce and Industry (PCCI), the voice of business, the Makati-based Makati Business Club (MBC), and the German-Philippine Chamber of Commerce and Industry (GPCCI) issued separate statements commending the guidance by Finance Secretary Frederick Go and the swift implementation by the Bureau of Internal Revenue (BIR) Commissioner Charlito Martin R. Mendoza, through Revenue Memorandum Circular (RMC) 107-2025, suspending all field audits and related operations of the agency.
Both business groups, vowed to stands ready to work with the Department of Finance (DOF) and the BIR in refining the LOA framework and related audit protocols. “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,” said PCCI.
PCCI particularly lauded the BIR’s establishment of a Technical Working Group (TWG) to review and update the Bureau’s existing policy frameworks on the issuance and implementation of Letters of Authority (LOA) and related audit procedures.
According to PCCI, 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.
“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,” said PCCI.
As lead convenor of the Partnership with Multi-Sectoral Group (PMSG), created under a Memorandum of Agreement with the BIR, PCCI welcomed this development and expressed readiness to contribute technical input and practical insights to the TWG’s review.
On the part of the MBC, the Makati-based business group, said the business community has been complaining about the weaponization of these instruments to squeeze more money out of responsible and legitimate taxpayers, instead of targetting tax evaders.
Earlier, MBC met with Secretary Go and Commissioner Mendoza where it was agreed to form a Technical Working Group to address issues like the LoA, Tax refunds as well as the ongoing digitization of the DOF, BIR and Bureau of Customs.
“We applaud Commissioner Mendoza’s vision of making tax administration predictable, evidence-based, technology-driven, and fair,” MBC said.
MBC quoted Mendoza as saying, “These systems are meant to protect taxpayers while helping the Bureau perform its mandate efficiently.”
MBC also noted that the BOC has likewise suspended the issuance of LoA’s. BOC Commissioner Ariel Nepomuceno met with MBC where they discussed the concerns of the business community. “We are likewise supporting him in his efforts to reform the Bureau,” MBC said.
From the manufacturing sector, the Federation of Philippine Industries (FPI) lauded the decisive efforts of Secretary Go and Commissioner Mendoza in addressing systemic issues, protect taxpayer rights, and develop a transparent, standardized, and modernized audit framework.
“The DOF and BIR’s objective of ensuring a fair, transparent, and efficient tax system that promotes compliance and fosters trust among taxpayers is fully aligned with President Ferdinand Marcos Jr.’s plan to stimulate business growth, attract investment, and generate sustainable employment opportunities,” said FPI in a statement.
“Industries have long carried their share in driving national development. Yet inconsistent practices have constrained their full potential. A fair and transparent tax system can unlock that potential, safeguard taxpayer rights, and build lasting trust for growth,” said FPI Chairperson Elizabeth H. Lee.
A system anchored in clarity and fairness empowers industries to contribute more fully to national development and reassures investors that the Philippines is committed to transparency and accountability.
