Criminal tax probes to continue despite audit suspension – BIR

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December 21, 2025 | 12:00am

MANILA, Philippines — The Bureau of Internal Revenue (BIR) clarified that its suspension of memoranda orders and issuance of letters of authority does not cover investigations involving criminal tax fraud, which will continue if supported by intelligence or risk indicators.

In line with the agency’s legal obligation, the BIR said the investigations would continue because they involve potential tax fraud, which the agency is legally mandated to pursue without delay.

“The suspension does not apply to criminal tax investigations,” the tax agency said.

“The BIR may continue issuing letters of authority or memoranda orders for ongoing or new criminal investigations if validated intelligence reports, agency referrals, credible third-party information, or risk indicators support them,” it added.

Last November, the BIR suspended all ongoing and upcoming field audits, issuance of letters of authority, memoranda orders, tax verification notices and other notices related to the examination and verification of taxpayers’ books, records and transactions.

The suspension also does not apply to taxpayers who are retiring or closing their business. Requests for tax clearance from those with gross sales or receipts exceeding P1 million or gross assets exceeding P3 million are subject to mandatory audits, according to the BIR.

“The BIR must still review their books of accounts and records to determine any outstanding tax liabilities and ensure that all tax obligations are settled before a tax clearance can be issued,” it said.

Furthermore, the suspension does not apply to taxpayers seeking refunds, as claims or applications for tax refunds are exempt and will continue to be processed by the relevant authorities.

“They are required to undergo audits, investigations and verifications. Reports on refund cases must be submitted within the specified number of days, as required by the tax code,” the BIR added.

The tax agency may continue verifying withholding and related taxes on real property sales, as these checks ensure proper tax imposition and are among the exceptions allowed to proceed even during the suspension period.

One-time transaction cases are not covered by the suspension, as the BIR will continue to process and verify estate, donor’s, capital gains, withholding, documentary stamps and value-added tax returns related to these transactions.