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Ex-commissioner acknowledges potential for BIR’s LoA to be abused
Business World Philippines
|November 27, 2025
FORMER Bureau of Internal Revenue (BIR) Commissioner Kim S.Jacinto-Henares said the agency’s use of Letters of Authority (LoA) to look into taxpayers’ books remains crucial in meeting revenue collection goals, but acknowledged the risk of such orders to be abused without proper controls.
“We have to recognize that a lot of people are not paying the right taxes. You really have to audit them and usually your collection from assessment will (make up) around 5% of the total collection of the BIR,” Ms. Henares said in a Nov. 24 appearance on The Big Story on One News.
In the first nine months, the BIR collected P2.65 trillion, equivalent of 82.35% of its P3.219-trillion collection target this year. Former BIR Commissioner Romeo D. Lumagui, Jr. has said the bureau may struggle to meet its collection target this year as sluggish government spending weighed on overall tax receipts.
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