No more audits... for now

One truth universally acknowledged is that taxes are the lifeblood of the nation. Yet even the most essential systems sometimes need a pause when their integrity is at stake.

- MISHELLE ANGELI BOLIGOR

The enforcement of tax laws and the collection of taxes are of paramount importance to sustaining public services, building infrastructure and supporting the institutions that enable the Filipino government to serve its people. At the same time, such collection should always be carried out lawfully and fairly, as any arbitrary and abusive enforcement undermines the very purpose of the government itself.

In the wake of recent corruption scandals, particularly those involving allegations of irregular issuance and misuse of Letters of Authority (LOAs), the BIR issued Revenue Memorandum Circular (RMC) 107-2025. This circular imposes a temporary suspension of all field audits and issuances of LOAs and Mission Orders (MO) starting Nov. 24, 2025. For many taxpayers, this is a reassuring move that the government hears the woes of the public.

Understanding the Scope of RMC 107-2025

The circular temporarily halts all ongoing field audits and related field operations, including the issuance of LOAs, MOs and the conduct of examinations or verifications of taxpayers’ books, records and transactions. This applies to all BIR operating units involved in field audits nationwide, such as Large Taxpayers Service, Revenue Regions, Revenue District Offices, National and Regional Investigation Divisions, Assessment Divisions, VAT Audit Units and Sections, Office Audit Sections and any task force or committee authorized to conduct audits or investigations.

Note that the suspension covers all taxable years up to 2022. As of now, no issuance has been released specifically addressing taxable year 2023.

Exceptions to the suspension