A senator has once again called for sweeping reforms to safeguard micro, small, and medium enterprises (MSMEs) from alleged corruption within the Bureau of Internal Revenue (BIR), as the Senate Blue Ribbon Committee continued its inquiry into the reported abuse and “weaponization” of Letters of Authority (LOA).
Senator Bam Aquino, a long-time champion of small entrepreneurs and the principal author of Republic Act No. 10644 or the Go Negosyo Act, said the LOA controversy has had its harshest impact on the country’s smallest business owners.
During the hearing, Aquino highlighted the fear and anxiety experienced by small entrepreneurs when subjected to tax audits, particularly those allegedly used as tools for extortion or coercion into unfair settlements.
“Iyong maliliit na negosyante po, sila po ’yung pinaka-natatakot kapag nilalapitan po sila… Sila po ’yung pinakatakot na takot kapag merong nangongorap po sa kanila. Walang mapuntahan, walang mahingan ng tulong,” he said.
Aquino explained that this climate of fear reflects the repeated complaints he encountered from business groups nationwide, both in provincial areas and major cities, during the recent campaign period. He noted that entrepreneurs consistently raised concerns about questionable assessments that were either unfounded or excessively high.
“Unang-una, let me premise by saying that in the previous campaign this year, sa lahat po ng naikutan ko, local chamber, Philippine Chamber, Chinese Chamber, ito man ay sa probinsiya o dito po sa siyudad, grabe po talaga ang complaints ng mga negosyante pagdating sa BIR at sa LOA. Paulit-ulit po ‘yan. Yung mga LOA, yung mga assessment, walang basehan. Or kung masyadong mang mataas,” he said.
To confront what he described as a systemic issue, Aquino pressed for radical transparency and structural reforms, urging BIR Commissioner Charlie Mendoza and Department of Finance Secretary Frederick Go to take decisive action. Among his proposals was the controlled public disclosure of LOA data, which would allow taxpayers to immediately verify the legitimacy of audit notices.
“That’s my intention. Kaya dapat kung ilabas sana. So people can check kung yung LOA ba ito ay talagang valid o hindi,” Aquino said.
He also called for stripping individual Revenue District Offices of the authority to select audit targets, advocating instead for a truly random or technology-driven audit system. Aquino said such a mechanism would curb arbitrary targeting and ensure that compliant taxpayers are not repeatedly audited without just cause. He welcomed the BIR and the Department of Finance’s commitment to review past LOA data with the Senate to identify patterns such as repeated audits and sharply reduced assessments after settlement.
Commending recent developments, Aquino cited the policy requiring all LOAs to be approved by the BIR Commissioner’s office and the establishment of a dedicated email address for audit complaints as positive steps toward accountability. He stressed that the ongoing investigation should result in lasting reforms that rebuild trust in government institutions and protect honest entrepreneurs.
“Mahalaga po na pakiramdam nila ang mga ahensiya ng gobyerno nasa panig nila,” he said.
