Newly appointed Bureau of Internal Revenue Commissioner Charlito Mendoza has taken a strong stance against corruption within the agency, vowing to pursue punishment against employees involved in abuses using Letters of Authority.
Commissioner's Direct Appeal to Taxpayers
During a press conference on Thursday, November 27, 2025, Mendoza made a direct appeal to stakeholders and taxpayers who have experienced harassment or abuse from BIR personnel. "I am calling on our stakeholders, on our taxpayers who have experienced abuse or harassment from BIR personnel, to come to us—directly to me, to my office—so they can provide details," Mendoza stated emphatically.
The commissioner revealed that an investigation is currently ongoing regarding claims of a money-making scheme involving the issuance of LOAs as well as mission orders. This investigation comes amid growing concerns about systematic corruption within certain segments of the revenue agency.
Understanding Letters of Authority
Letters of Authority serve as essential enforcement tools for the BIR, particularly in identifying possible tax evasion activities. These documents authorize BIR officers to examine taxpayers' books of accounts and other accounting records to verify tax compliance.
However, the system has reportedly been exploited by some corrupt employees who use LOAs to harass businesses and extract illegal payments. Mendoza emphasized that while LOAs remain crucial for legitimate tax enforcement, their abuse will not be tolerated under his leadership.
Senate Investigation Triggers Action
The BIR's crackdown follows significant political pressure after Senator Erwin Tulfo filed a resolution urging the Senate Blue Ribbon Committee to investigate the alleged money-making scheme within the BIR involving LOAs. Senator Tulfo disclosed that five businessmen had approached him reporting abuses using the authority documents.
In response to these developments, the BIR has already taken preliminary action by ordering the suspension of LOA and Mission Order issuances, along with all field audits and related operations. This temporary halt aims to prevent further abuses while the investigation proceeds and reforms are implemented.
Commissioner Mendoza's strong position signals a new direction for the Bureau of Internal Revenue, focusing on cleaning house and restoring taxpayer confidence in the agency's operations and integrity.
