Senator Bam Aquino on Thursday, December 11, warned that many businesses are staying silent about alleged corruption in the Bureau of Internal Revenue’s Letter of Authority (LOA) system due to fears of retaliation.
During the Senate Blue Ribbon Committee hearing on the BIR’s LOA, Aquino said he consistently heard complaints from local chambers, provincial business groups, and foreign investors about excessive assessments, fake LOAs, and alleged shakedowns linked to BIR audits.
“Grabe po talagang ang complaints ng mga negosyante pagdating sa BIR at sa LOA. Paulit-ulit po ’yan,” Aquino said.
He noted that firms publicly frame their concerns as “ease of doing business” issues but privately admit that corruption is their real problem.
“Pero ’pag kayo-kayo lang, ang sasabihin nila, ‘Corruption po ito.’ ‘Pero di ko ’yan masabi, di namin ’yan masabi in public. Ang sasabihin namin in public, ease of doing business ’yung problema namin.’”
According to Aquino, small and medium enterprises feel they “have nowhere to run” and are the most vulnerable to alleged harassment from revenue examiners.
He stressed that many taxpayers fear retaliation, a level of anxiety that discourages them from coming forward with complaints.
“Feeling po nila, walang mapuntahan, walang mahingan ng tulong. Sila po ’yung pinakatakot na takot kapag merong nangongorap po sa kanila,” the senator said.
Aquino urged the Senate Blue Ribbon Committee to secure and analyze at least three years of LOA data to detect fake issuances, repeat audits, unusual settlements, and potential red flags.
The senator pressed BIR Commissioner Charlito Mendoza to cooperate fully with the Senate’s planned review, which Mendoza agreed to support, including providing information in executive session.
“Kung mailantad po natin ’yung mga na-LOA at ma-analyze natin nang maayos, mas makikita talaga natin kung ano po ’yung ugat ng mga problemang lumalabas ngayon,” he said.
Aquino said business chambers will be summoned to the next hearing so they can directly relay their experiences to regulators and ensure that concrete action is taken on their complaints.
