Manila: Malaca±ang on Wednesday emphasized the need to investigate allegations that Bureau of Internal Revenue (BIR) officials are misappropriating up to 70 percent of collections from Letters of Authority (LOAs) due to corruption, highlighting the government's commitment to addressing any form of corruption.
According to Philippines News Agency, Senator Joseph Victor "JV" Ejercito disclosed reports suggesting that some BIR revenue officers and regional directors are allegedly involved in a scheme exploiting LOAs, which are official documents authorizing tax audits of businesses and taxpayers.
Presidential Communications Office (PCO) Undersecretary and Palace Press Officer Claire Castro stated that the Executive expects authorities to take swift action. She remarked, "Dapat imbestigahan. Kung meron ganyang mga nakita, na-report, hindi dapat makalipas 'to. Pa-iimbestigahan 'to (This should be investigated. If such incidents were seen or reported, they cannot be ignored. This will be investigated)."
The allegations raise concerns about the integrity of tax enforcement, given that LOAs are among the most powerful tools used by the BIR in auditing taxpayers. When asked if the alleged scheme contributed to the sudden removal of former BIR Commissioner Romeo Lumagui Jr., Castro responded, "Wala po nasasabi sa akin kung ganyan ang dahilan (Nothing has been said to me to indicate that this is the reason)."
She also refuted claims that the President is only concerned with infrastructure-related anomalies, asserting that corruption in any sector must be addressed. Castro added, "Lahat po ng anomalya. hindi po pwedeng tulugan ito. Kailangan investigahan kapag ka may anomalya (All anomalies. cannot be ignored. They must be investigated whenever anomalies arise)."
Ejercito's revelations increase pressure on the country's revenue-collection agencies, which are vital for financing government programs. The administration is currently conducting separate investigations into alleged irregularities in flood control and infrastructure projects.