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Cayetano welcomes BIR reforms ending LOA abuse

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Cayetano welcomes BIR reforms ending LOA abuse

Senate Minority Leader Alan Peter Cayetano on Tuesday welcomed the Bureau of Internal Revenue’s new system to curb excessive issuance of Letters of Authority (LOAs), emphasizing that taxpayers should no longer face overlapping audits that create fear and uncertainty in the business community.

This follows reforms discussed during the Senate Blue Ribbon Committee’s probe on February 10, 2026 on the alleged misuse and weaponization of LOAs by BIR personnel.

“Almost all the businessmen I spoke with, small, medium, large, even oligarchs, were drowning in LOAs,” he said in a statement.

“Before, one LOA a year. Now, as soon as one ends, another LOA comes for income tax or VAT. Sometimes, there’s a risk of criminal penalties. It’s double, triple the fear,” he added.

During the Blue Ribbon hearing, BIR Commissioner Charlito Mendoza presented the new system, which directly addresses the issues Cayetano highlighted.

Taxpayers now receive only one electronic LOA (eLA) per taxable year, covering all tax types. The scope and limits of each LOA are clearly indicated, giving taxpayers the right to refuse requests beyond those limits.

Pending audits for the same taxpayer are consolidated into a single eLA, and all LOAs carry mandatory verification labels.

The reforms also introduce a risk-based, system-assisted selection of taxpayers, reducing unnecessary audits and ensuring that only those flagged by anonymized criteria are reviewed.

According to Commissioner Mendoza, these measures are designed to protect businesses from arbitrary or overlapping audits while still ensuring compliance.

Cayetano said the new system, following years of complaints, aligns with his long-standing calls for fairness and predictability in tax administration.

He noted that streamlining LOAs and enforcing clear rules will reduce harassment and restore confidence among taxpayers.

“In every crisis there’s a big opportunity. These reforms end that,” he said.

Cayetano, pabor sa reporma ng BIR laban sa abuso sa LOA

Suporado ni Senate Minority Leader Alan Peter Cayetano ang bagong sistema ng Bureau of Internal Revenue (BIR) na pinipigilan ang labis na pag-isyu ng Letters of Authority (LOAs).

Ayon sa kanya, hindi na dapat nakararanas ang mga nagbabayad ng buwis ng sabay-sabay o overlapping audits na nagdudulot ng takot at kawalang-katiyakan sa negosyo.

Kasunod ito ng mga reporma na tinalakay sa pagdinig ng Senate Blue Ribbon Committee nitong February 10, 2026 tungkol sa umano’y maling paggamit at weaponization ng LOAs ng ilang tauhan ng BIR.

“Almost all the businessmen I spoke with, small, medium, large, even oligarchs, were drowning in LOAs,” sabi ni Cayetano sa isang pahayag.

“Before, one LOA a year. Now, as soon as one ends, another LOA comes for income tax or VAT. Sometimes, there’s a risk of criminal penalties. It’s double, triple the fear,” dagdag niya.

Sa nasabing pagdinig, ipinakita ni BIR Commissioner Charlito Mendoza ang bagong sistema na direktang tumutugon sa mga isyung binanggit ni Cayetano.

Sa bagong sistema, tatanggap lamang ang bawat taxpayer ng isang electronic LOA (eLA) kada taon, na sumasaklaw sa lahat ng uri ng buwis. Maliwanag ang saklaw at limitasyon ng bawat LOA, at may karapatan ang taxpayers na tanggihan ang anumang request na lampas sa limitasyong iyon.

Pinagsasama rin ang mga pending audits para sa parehong taxpayer sa iisang eLA, at lahat ng LOA ay may mandatory verification labels.

Kasama sa reporma ang risk-based, system-assisted na pagpili ng mga taxpayer, para mabawasan ang hindi kailangang audits at masiguro na tanging mga taxpayer lamang na natukoy ng anonymized criteria ang rerepasuhin.

Ayon kay Commissioner Mendoza, layunin ng mga hakbang na ito na protektahan ang negosyo laban sa arbitrary o overlapping audits habang pinapanatili pa rin ang pagsunod sa batas.

Ayon kay Cayetano, ang bagong sistema, matapos ang maraming taon ng reklamo, ay tumutugon sa matagal na niyang panawagan para sa patas at predictable na pamamahala ng buwis.

Sinabi niya na ang pagsasaayos ng LOAs at pagpapatupad ng malinaw na patakaran ay magbabawas ng harassment at magbabalik ng kumpiyansa ng mga taxpayer.

“In every crisis there’s a big opportunity. These reforms end that.”

Cayetano welcomes BIR reforms ending LOA abuse

Senate Minority Leader Alan Peter Cayetano on Tuesday welcomed the Bureau of Internal Revenue’s new system to curb excessive issuance of Letters of Authority (LOAs), emphasizing that taxpayers should no longer face overlapping audits that create fear and uncertainty in the business community.

This follows reforms discussed during the Senate Blue Ribbon Committee’s probe on February 10, 2026 on the alleged misuse and weaponization of LOAs by BIR personnel.

“Almost all the businessmen I spoke with, small, medium, large, even oligarchs, were drowning in LOAs,” he said in a statement.


“Before, one LOA a year. Now, as soon as one ends, another LOA comes for income tax or VAT. Sometimes, there’s a risk of criminal penalties. It’s double, triple the fear,” he added.

During the Blue Ribbon hearing, BIR Commissioner Charlito Mendoza presented the new system, which directly addresses the issues Cayetano highlighted. 

Taxpayers now receive only one electronic LOA (eLA) per taxable year, covering all tax types. The scope and limits of each LOA are clearly indicated, giving taxpayers the right to refuse requests beyond those limits.

Pending audits for the same taxpayer are consolidated into a single eLA, and all LOAs carry mandatory verification labels.

The reforms also introduce a risk-based, system-assisted selection of taxpayers, reducing unnecessary audits and ensuring that only those flagged by anonymized criteria are reviewed. 

According to Commissioner Mendoza, these measures are designed to protect businesses from arbitrary or overlapping audits while still ensuring compliance.

Cayetano said the new system, following years of complaints, aligns with his long-standing calls for fairness and predictability in tax administration. 

He noted that streamlining LOAs and enforcing clear rules will reduce harassment and restore confidence among taxpayers.

“In every crisis there’s a big opportunity. These reforms end that,” he said.

Cayetano, pabor sa reporma ng BIR laban sa abuso sa LOA

Suporado ni Senate Minority Leader Alan Peter Cayetano ang bagong sistema ng Bureau of Internal Revenue (BIR) na pinipigilan ang labis na pag-isyu ng Letters of Authority (LOAs).

Ayon sa kanya, hindi na dapat nakararanas ang mga nagbabayad ng buwis ng sabay-sabay o overlapping audits na nagdudulot ng takot at kawalang-katiyakan sa negosyo.

Kasunod ito ng mga reporma na tinalakay sa pagdinig ng Senate Blue Ribbon Committee nitong February 10, 2026 tungkol sa umano’y maling paggamit at weaponization ng LOAs ng ilang tauhan ng BIR.

“Almost all the businessmen I spoke with, small, medium, large, even oligarchs, were drowning in LOAs,” sabi ni Cayetano sa isang pahayag.

“Before, one LOA a year. Now, as soon as one ends, another LOA comes for income tax or VAT. Sometimes, there’s a risk of criminal penalties. It’s double, triple the fear,” dagdag niya.

Sa nasabing pagdinig, ipinakita ni BIR Commissioner Charlito Mendoza ang bagong sistema na direktang tumutugon sa mga isyung binanggit ni Cayetano.

Sa bagong sistema, tatanggap lamang ang bawat taxpayer ng isang electronic LOA (eLA) kada taon, na sumasaklaw sa lahat ng uri ng buwis. Maliwanag ang saklaw at limitasyon ng bawat LOA, at may karapatan ang taxpayers na tanggihan ang anumang request na lampas sa limitasyong iyon.

Pinagsasama rin ang mga pending audits para sa parehong taxpayer sa iisang eLA, at lahat ng LOA ay may mandatory verification labels.

Kasama sa reporma ang risk-based, system-assisted na pagpili ng mga taxpayer, para mabawasan ang hindi kailangang audits at masiguro na tanging mga taxpayer lamang na natukoy ng anonymized criteria ang rerepasuhin.

Ayon kay Commissioner Mendoza, layunin ng mga hakbang na ito na protektahan ang negosyo laban sa arbitrary o overlapping audits habang pinapanatili pa rin ang pagsunod sa batas.

Ayon kay Cayetano, ang bagong sistema, matapos ang maraming taon ng reklamo, ay tumutugon sa matagal na niyang panawagan para sa patas at predictable na pamamahala ng buwis.

Sinabi niya na ang pagsasaayos ng LOAs at pagpapatupad ng malinaw na patakaran ay magbabawas ng harassment at magbabalik ng kumpiyansa ng mga taxpayer.

“In every crisis there’s a big opportunity. These reforms end that.”

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