Insider Spotlight
In a press briefing, the head of the Marcos administration’s economic team said the changes come as the agency prepares to resume field audits that were suspended last November, following consultations with taxpayers and internal process reforms intended to reduce disruptions and strengthen trust in enforcement.
BIR Commissioner Charlito Martin Mendoza said a Revenue Memorandum Circular will soon be issued lifting the suspension on letters of authority and field audits, clearing the way for revenue officers to return to on-site examinations under the new framework.
Why it matters
Audits are one of the BIR’s most powerful enforcement tools, but they have long been criticized by businesses for being repetitive, unpredictable, and prone to abuse. The revised rules aim to balance revenue collection with taxpayer rights, while improving accountability within the agency as collections remain a priority for the government.
What’s changing
At the core of the reform package is the adoption of a single-instance audit framework. Under this system, there will generally be only one audit and one letter of authority issued per taxpayer per taxable year, reducing the risk of overlapping or repeated examinations.
The BIR is also abolishing value-added tax audit units and task forces, a move meant to streamline enforcement and eliminate parallel structures that often confused taxpayers and duplicated work.
Audit authority will now be restricted to regional offices and the Large Taxpayers Service, narrowing the number of offices that can initiate examinations and strengthening internal controls.
Go deeper
To enhance transparency, taxpayers may now verify the authenticity of audit orders through the BIR’s REVI chatbot, allowing them to confirm whether a letter of authority is valid before engaging with revenue officers.
Oversight and accountability measures have also been tightened, with clearer procedures and documentation requirements intended to make examiners more answerable for their actions during audits.
The bottom line
The resumption of field audits under a reformed system signals the BIR’s effort to professionalize tax enforcement while responding to long-standing concerns from the business community. By limiting audits, centralizing authority, and adding digital verification, the agency is positioning the new rules as a step toward a more predictable and rules-based tax environment as enforcement activities resume nationwide.
— Edited by Daxim L. Lucas
