Newly appointed Bureau of Internal Revenue (BIR) Commissioner Charlito Mendoza has issued a stern warning to employees involved in alleged abuses of letters of authority (LOA), promising strict sanctions during a press conference held on Thursday, November 27, 2025.
Investigation into Money-Making Scheme
Commissioner Mendoza revealed that an ongoing investigation is examining allegations of a money-making scheme involving the issuance of LOAs and mission orders (MOs). The BIR has already taken preliminary action by suspending the issuance of these documents, along with all field audits and related operations.
"That's why I'm calling on our stakeholders, our taxpayers who have experienced abuse, harassment from BIR personnel to approach us, to me directly, straight to my office, to provide details," Mendoza stated during the press conference.
Critical Tool Against Tax Evasion
Mendoza emphasized that letters of authority serve as essential instruments in the BIR's law enforcement arsenal, particularly in identifying potential tax evasion activities. However, the system appears to have been exploited for improper purposes, prompting the current crackdown.
The commissioner's strong stance comes after Senator Erwin Tulfo pushed for a Senate Blue Ribbon Committee investigation into the BIR's LOA-related scheme. According to Tulfo, five business owners had approached him reporting abuses involving LOAs, highlighting the widespread nature of the problem.
Immediate Actions and Future Measures
The BIR's suspension of LOA and MO issuance represents an immediate response to the allegations, while the internal investigation continues to identify responsible parties. Mendoza's direct appeal to taxpayers signals a new approach to addressing corruption within the revenue agency.
This development marks one of the first major actions under Mendoza's leadership, demonstrating his commitment to cleaning up the bureau's operations and restoring public trust in the country's tax collection system.
