Manila: Sen. Erwin Tulfo has filed a resolution urging the Senate Blue Ribbon Committee to investigate the alleged misuse and 'weaponization' of Letters of Authority (LOAs) issued by the Bureau of Internal Revenue (BIR). This move comes amid reports suggesting that some BIR personnel have transformed the LOA audit tool into a mechanism for harassment and extortion.

According to Philippines News Agency, the proposed Senate Resolution No. 180 by Tulfo references growing complaints from both foreign and local businesses. These complaints describe a pattern of excessive, improper, and irregular LOA issuances by the BIR. Reports indicate that LOAs have allegedly been turned into instruments for harassment, bribery, and extortion by certain BIR personnel.

Tulfo has raised concerns highlighted in the resolution about LOAs being issued for taxable years that have already been settled. There are also reports of combining multiple taxable years in a single audit and manipulating assessments in exchange for unofficial settlements.

The resolution notes that both foreign chambers of commerce and domestic businesses have expressed concerns over the excessive and irregular issuance of LOAs. These concerns include instructions to falsify receipts and pressure to pay 'discounted' settlements outside official government channels.