Lowkey

Strange things were going on at the Bureau of Internal Revenue (BIR) under the past leadership.

- ALEX MAGNO

Field audits apparently surged. Letters of Authority (LOA) covering such audits were apparently issued with wild abandon.

Companies subjected to these heavy-handed audits complained. It was like the government's main revenue collection agency enforced a reign of terror on legitimate businesses.

Business associations raised a howl. Even foreign chambers of commerce took the matter up with senior officials. Several senators accused BIR personnel involved in these field audits of extortion. One even claimed that 70 percent of possible revenue were simply pocketed.

These are difficult times for Philippine businesses. The economy has slowed. Profit margins have shrunk. Many enterprises are simply trying to survive. No one needs to see the revenue agency running amuck.

Without giving the public an explanation, the former BIR commissioner was relieved of his post — notwithstanding his reported closeness to the President.

Then Finance secretary (now Executive Secretary) Ralph Recto appointed lawyer Charlito Martin Mendoza to head the BIR. Among the new commissioner’s first acts was the suspension of field audits. Through Revenue Memorandum Circular 107-2025, Mendoza ordered “(a)ll ongoing field units and related field operations, such as issuing LOA, MO, examination and verification of taxpayers’ books of account, records and other related transactions, are hereby suspended until the order is lifted by the Commissioner.”