“Unfortunately, only two percent of the total tax collected by the BIR (Bureau of Internal Revenue) from the business sector came from LOAs (letters of authority) or Mission Orders. The 98%… from voluntary tax payments by the businesses. So ibig sabihin po… dalawang porsyento lamang ang pumapasok sa kaban ng bayan sa total tax collection. ‘Yung the rest, 98%, is voluntary.”
Thus bared Senator Erwin Tulfo on his opening statement at the Committee on Accountability of Public Officers and Investigations (Blue Ribbon) hearing, which was convened ‘to confront a matter that strikes at the very core of public trust and governance: the misuse and abuse of the Bureau of Internal Revenue’s Letters of Authority and Mission Orders—instruments that, by law, should protect the integrity of our tax system, but which have reportedly become tools for harassment, coercion, and worse, extortion.’
Sen. Erwin noted that for years, small and big businesses— from the smallest family convenience store to the biggest corporations— have raised serious concerns, recently, with many claiming that they were subjected not to fair tax assessment, but to pressure, intimidation and questionable demands in exchange for the withdrawal or softening of tax investigations.
“Kahit po ang mga international companies, hindi na ninyo pinatawad, pinatos na ninyo, itong mga kompanya na ito na nagdadala ng trabaho, teknolohiya, at pamumuhunan sa bansa, ay hindi raw nakaligtas sa ganitong uri ng pang-aabuso, ayon na rin mismo yan sa iba’t-ibang foreign chambers of commerce dito sa ating bansa at mismo sa kanilang mga ambassador,” the Senator lamented.
He stressed that the purpose of the Letters of Authority and Mission Orders from the BIR are supposedly meant to ensure that taxes owed to the government are collected properly, transparently and lawfully.
“Hindi ito dapat gamitin bilang sandata ng pananakot o instrumento ng korapsyon,” he said, also querying: “Where did the rest of the collection go from these instruments? E di sa bulsa ng mga examiner, RDOs at Regional Directors. Ganito po ang modus: 25 percent lang ng koleksyon kasi napupunta sa gobyerno yung may resibo, while the 75 percent goes straight to their pockets.”
“If these allegations are true, then we are looking at systemic abuse that harms not only individual taxpayers but also the nation’s business climate and international reputation. Kapag nawalan ng tiwala ang negosyo—local man o foreign—nawawala rin ang trabaho, nawawala ang kita, at oportunidad para sa ating mga kababayan,” he noted.
The Blue Ribbon Committee, Sen. Tulfo said, is there to seek the truth and examine how LOAs and Mission Orders have been issued, enforced and—allegedly—exploited, among others.
He vowed that the committee will hold accountable anyone who has betrayed their sworn duty to serve with integrity.
“Our goal here is simple: To restore trust, protect our taxpayers, and ensure that public power is never ever again used for private gain,” Sen. Erwin said.
