Zambales 1st District Representative Jay Khonghun has filed a resolution seeking a congressional investigation into the alleged misuse, abuse, and “weaponization” of letters of authority (LOAs) and mission orders (MOs) by officials and personnel of the Bureau of Internal Revenue (BIR).
Khonghun said the inquiry aims to strengthen anti-corruption safeguards, ensure fair and transparent tax administration, and protect taxpayers from harassment and alleged extortion.
While recognizing the BIR’s vital role in revenue generation, he pointed to whistleblower accounts, investigative reports, and taxpayer complaints indicating serious irregularities in how LOAs and MOs are implemented.
“Taxpayers have come forward with credible accounts of inflated assessments that are later negotiated down through unofficial ‘packages,’ clandestine payments via drop boxes, instructions to falsify receipts, and even threats of retaliation or blacklisting for those who resist or expose these practices,” Khonghun said.
“Reports even suggest that up to 70% of collections tied to certain LOA audits may be diverted to private pockets instead of going to the national treasury. This is not tax enforcement—it is extortion disguised as enforcement,” he added.
The lawmaker warned that such practices erode public trust, weaken investor confidence, and distort the business environment as the country seeks sustainable investments. He said Congress must exercise its oversight powers to push reforms and accountability.
“Every Filipino, whether a small business owner or a large investor, deserves a tax system that collects what is due to the State without becoming a tool for personal enrichment or intimidation. We owe it to our people to act decisively,” Khonghun said.
The proposed probe will review LOA and MO issuance and audit protocols, assess current safeguards such as the audit suspension and LOA verifier system, recommend protections against abuse, and propose stronger penalties to restore confidence in the tax system.