The business community in Cebu has warmly welcomed the government's decision to temporarily suspend all field audits conducted by the Bureau of Internal Revenue (BIR), a move seen as a major relief for companies grappling with compliance pressures and recovery from recent natural disasters.
Businesses Appreciate the Breathing Space
In an official statement released on Tuesday, November 25, 2025, the Cebu Chamber of Commerce and Industry (CCCI) described the audit pause as a "positive and confidence-building step." The chamber emphasized that this is particularly crucial for micro, small, and medium enterprises (MSMEs) that are still navigating significant economic headwinds.
"At a time when enterprises continue to navigate economic challenges, the suspension provides much-needed operational breathing space and reduces the uncertainties often associated with field audits," the CCCI stated. The chamber further explained that these audits frequently disrupt normal business operations, and the halt will help firms, especially smaller ones, maintain their stability and productivity.
Government Acts on Taxpayer Concerns
The directive for an immediate and temporary suspension of all BIR field audits and related operations was issued by the Department of Finance (DOF) on Monday. This action was taken in response to numerous complaints regarding the alleged misuse of Letters of Authority (LOAs) and Mission Orders (MOs).
Finance Secretary Frederick Go confirmed the pause, which was coordinated with newly appointed BIR Commissioner Charlito Martin Mendoza. Secretary Go stated that the measure aims to protect taxpayers while the government undertakes a comprehensive review of its audit protocols. "We hear your concerns and are acting on them. Taxpayers deserve fair and honest audits carried out with professionalism and full respect for the rule of law," Go affirmed.
Under Revenue Memorandum Circular No. 107-2025, Commissioner Mendoza clarified that no LOA or MO will be "created, printed, signed, or served" for the duration of the suspension. This order is effective for all BIR units across the nation, including the Large Taxpayers Service and regional offices. The suspension will only be lifted for urgent cases, such as active criminal investigations or audits nearing their legal expiration date.
A Step Towards a More Predictable Tax Environment
Business leaders see this suspension as more than just temporary relief. Mark Ynoc, President of the Mandaue Chamber of Commerce and Industry, hailed the development as "very positive and welcome," noting that unpredictable audit issuances have historically driven up compliance costs and created a climate of uncertainty.
This sentiment was echoed by the CCCI, which stated that the move signals a shift towards more consistent tax enforcement and fewer discretionary interventions. The chamber added that the suspension offers the BIR a valuable opportunity to revamp its processes, adopt digital tools, and develop more transparent mechanisms.
For a province like Cebu, which is still recovering from a 6.9-magnitude earthquake on September 30 and the successive impacts of Typhoon Tino and Typhoon Verbena, this decision allows businesses to channel precious resources away from audit preparation and toward core recovery and expansion efforts.
To ensure lasting reform, Commissioner Mendoza has ordered the creation of a Technical Working Group on LOA and MO Integrity and Audit Reforms. This group is tasked with reviewing current protocols and recommending digital safeguards and uniform standards to build a more robust and fair system for the future.
