PCCI backs reforms to curb LOA abuse

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

December 29, 2025 | 12:00am

MANILA, Philippines — The country’s largest business group has expressed support for initiatives aimed at addressing the reported abuse and misuse of letters of authority (LOAs) within the Bureau of Internal Revenue (BIR).

In a statement yesterday, the Philippine Chamber of Commerce and Industry (PCCI) welcomed the reforms eyed by the Department of Finance to tighten audits, noting that it would help strengthen taxpayer protection, restore confidence in tax administration and ensure fairness and transparency.

“Tax enforcement must be firm, but it must also be fair. Any misuse of audit and investigation powers erodes trust, creates uncertainty for businesses and discourages voluntary compliance,” PCCI president Enunina Mangio said.

Earlier, Finance Secretary Frederick Go said the government is looking at reforms including reducing the number of BIR offices authorized to issue LOAs, which allow the main tax agency to examine taxpayers’ books.

Businesses have long raised concerns over tax audit instruments such as the LOAs and mission orders (MO), which can go beyond fact-finding and the validity or scope of issued authorities.

Left unchecked, the PCCI said these practices bring undue pressure to businesses and weaken their confidence in the tax system.

While strong enforcement is necessary for revenue generation, the PCCI emphasized the need for balance through clear safeguards to protect and ensure accountability of both the government and businesses.

For the PCCI, clear rules, consistent enforcement and strong safeguards against misuse of LOAs and MOs are essential to strengthening investor confidence and positioning the Philippines as a fair, transparent and predictable place for business.