MANILA, Philippines โ A ranking lawmaker is pushing for a House of Representatives investigation into alarming allegations of corruption within the Bureau of Internal Revenue (BIR). The lawmaker particularly cited the misuse and โweaponizationโ of letters of authority (LOAs) and mission orders (MOs) against taxpayers.
Deputy Speaker and Zambales 1st District Representative Jay Khonghun filed House Resolution No. 743 on Monday, February 9. The resolution seeks a congressional inquiry in aid of legislation into reports that BIR officials and personnel have abused audit powers for extortion.
โTaxpayers have come forward with credible accounts of inflated assessments that are later negotiated down through unofficial โpackages,โ clandestine payments via drop boxes, instructions to falsify receipts, and even threats of retaliation or blacklisting for those who resist or expose these practices,โ Khonghun said.
Two-third of collections may have gone to private pockets
The lawmaker cited reports suggesting that up to 70 percent or two-third of collections tied to certain LOA audits may be diverted to private pockets instead of being remitted to the National Treasury.
โThis is not tax enforcement โ it is extortion,โ he said.
The resolution seeks to strengthen safeguards against corruption, ensure fair and transparent tax administration, and protect taxpayersโ constitutional rights from harassment and abuse.
Khonghun acknowledged the critical role of the BIR in collecting revenues needed for national development. But the lawmaker said the growing number of whistleblower accounts, investigative reports, and taxpayer complaints point to serious irregularities in the issuance of LOAs and MOs.
The Senate has already initiated hearings into the alleged abuses. Khonghun, however, said it is imperative for the House to conduct its own inquiry to fully exercise its oversight and legislative functions.
โThese alleged practices erode public trust, undermine investor confidence, and distort the business environment at a time when the country is working to attract sustainable investments,โ he said.
BIR reforms insufficient
The deputy speaker also argued that recent reforms introduced by the BIR are insufficient to dismantle what he described as deeply entrenched extortion networks targeting taxpayers and businesses.
โWe need a comprehensive review of audit protocols, issuance procedures, the real impact of recent reforms, and stronger legislative and administrative protections for honest taxpayers,โ Khonghun said.
According to the resolution, the proposed House probe will review the integrity of current LOA and MO issuance and audit processes. The House will also assess the effectiveness of the audit suspension and the new LOA verifier system, propose concrete safeguards against harassment and abuse of authority, and recommend tougher penalties, accountability mechanisms, and structural reforms to restore confidence in the Philippine tax system.
Khonghun stressed that the House has a constitutional duty to conduct independent oversight and enact reforms where needed.
โEvery Filipino โ whether a small business owner or a large investor โ deserves a tax system that collects what is due to the State without becoming a tool for personal enrichment or intimidation. We owe it to our people to act decisively,โ he said.
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