Palace orders probe into alleged BIR corruption

MANILA, Philippines —  Malacañang has called for an investigation into claims that about 70 percent of taxes collected from letters of authority (LOA) are pocketed by some personnel of the Bureau of Internal Revenue (BIR).

“That should be investigated. If something like that is uncovered, reported, it should not be allowed to pass,” Presidential Communications Undersecretary Claire Castro said at a press briefing yesterday.

“All anomalies, if they are detected and if they become an issue, cannot be ignored even if they are not about flood control projects,” she added.

On Tuesday, Senate Deputy majority leader JV Ejercito alleged that 70 percent of taxes generated from LOAs end up in the pockets of corrupt BIR personnel.

When asked whether the issue prompted the removal of BIR commissioner Romeo Lumagui, Jr., Castro said no such information was relayed to her.

Lumagui was replaced by former finance undersecretary Charlito Mendoza as BIR chief.

Malacañang has not disclosed the reasons for the leadership change.

In a statement, the Makati Business Club welcomed Finance Secretary Frederick Go and Mendoza’s immediate halt of pending LOAs and mission orders, which authorize audits and enforcement activities.

The Federation of Philippine Industries, for its part, said it supports the government’s efforts to address systemic issues, protect taxpayer rights, and develop a transparent, standardized, and modernized audit framework.

The German-Philippine Chamber of Commerce and Industry described the suspension as a reflection of the government’s commitment to transparency, accountability and fairness in tax administration. – Louella Desiderio