by: Alex Q. Galang
Quezon City — Representative Jefferson F. Khonghun has formally filed House Resolution No. 743, directing the appropriate committee of the House of Representatives to conduct an inquiry, in aid of legislation, 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).
The resolution seeks to investigate mounting reports that certain revenue officers have allegedly exploited LOAs and MOs—legitimate tools intended to ensure tax compliance—as instruments of harassment, extortion, and personal enrichment.
“The Bureau of Internal Revenue plays a critical role in sustaining government operations and maintaining public trust,” Rep. Khonghun stated. “However, serious allegations have surfaced indicating that some enforcement mechanisms may have been abused in ways that undermine both taxpayer rights and national revenue collection.”
According to investigative accounts and testimonies cited in the resolution, up to 70 percent of collections tied to LOA audits are allegedly diverted into private hands through so-called “discounted” settlements that bypass proper remittance to the National Treasury. Reports also describe inflated tax assessments that are later negotiated down through unofficial arrangements, the use of clandestine payment methods, and alleged falsification of receipts.
The resolution further notes claims from whistleblowers and business owners who have reported threats of retaliation, blacklisting, or other forms of intimidation for exposing alleged irregularities—raising concerns about systemic corruption within certain sectors of the agency.
House Resolution No. 743 aims to:
Strengthen safeguards against corruption in tax enforcement;
Ensure transparency and accountability in the issuance and implementation of LOAs and MOs;
Protect the rights and welfare of taxpayers;
Restore public confidence in the integrity of the country’s tax administration system.
The proposed inquiry seeks to determine the veracity of these allegations and to identify potential legislative reforms that will prevent abuse while preserving the BIR’s mandate to enforce tax laws effectively and fairly.
“The objective is not to weaken tax enforcement, but to reinforce it by ensuring that it is exercised lawfully, transparently, and in the best interest of the Filipino people,” Rep. Khonghun emphasized.
Further details regarding committee hearings will be announced in due course.