Global Daily Tax News, Philippines Suspends Tax Audits, Pending Review, (Dec 2, 2025)

The Philippines Bureau of Internal Revenue has suspended the launch of new audits and investigations, amid concerns raised by taxpayers, through Revenue Memorandum Circular No. 107-2025.

The tax agency has established an email address for taxpayers to lodge complaints regarding decisions to launch audits through the issuance of Letters of Authority (LOAs) and actions taken under Mission Orders (MOs).

LAOs are used to compel taxpayers to provide tax officials with access to their books and other records, while MOs enable officials to surveil and potentially take action against businesses.

Announcing the suspension, the BIR's new Commissioner, Charlito Mendoza, stated: "I have ordered the immediate suspension of all field audits and related operations, including the issuance of Letters of Authority and Mission Orders, effective immediately, in accordance with Revenue Memorandum Circular 107-2025. No Letter of Authority or Mission Order shall be created, printed, signed, or served during the suspension period."

"This suspension is necessary to protect taxpayer rights, strengthen internal discipline, and ensure the integrity of our audit processes. We take every complaint seriously, and any misuse of authority, harassment, or irregularity has no place in the Bureau," Mendoza said.

The BIR said: "The temporary suspension applies to all BIR offices involved in audit and field operations, including the Large Taxpayers Service, Revenue Regions and District Offices, Assessment Divisions, VAT Audit Units, and Intelligence and Special Audit Units. The exceptions to RMC 107-2025 apply only to urgent or legally mandated cases such as active criminal investigations, one-time transactions, audits prescribing within six months, refund claims that require audits, or immediate action on taxpayers flagged by verified intelligence."

Mendoza has appointed a Technical Working Group to review the program and propose improvements. The group is tasked with evaluating existing procedures, identifying operational and systemic vulnerabilities, recommending revised LOA protocols, and integrating digital safeguards and uniform audit standards, the BIR said.