The Bureau of Internal Revenue (BIR) held a public‑private consultation on Jan. 21. The meeting was part of the BIR‑Partnership with the Multi‑Sectoral Group (BIR‑PMSG). Its purpose was to discuss audit reforms and new guidelines for resuming tax audits. The reforms follow the suspension of Letters of Authority (LOAs) that began in November.

The Technical Working Group Review Committee on Assessment Integrity and Audit Reform (TWGRC‑AIAR) led the presentation. Deputy Commissioner Marissa O. Cabreros headed the committee. She walked participants through the draft order that outlines the proposed changes.

A key feature is the “single‑instance audit” framework. Under the new rule, a taxpayer will receive only one electronic Letter of Authority (eLA) per taxable year. This eLA will cover all internal revenue taxes. There are defined exceptions, but they are limited. The framework also allows the consolidation of multiple eLAs that target the same taxpayer and year. Consolidation will happen automatically. Taxpayers may request that their eLAs not be merged. Such a request must be filed within the deadlines set in the draft order.

The draft also revises audit selection. Non‑mandatory audits will become risk‑based. The BIR will use system‑assisted tools to pick cases. Anonymized taxpayer lists will guide the selection. This approach is meant to curb discretion. It should also improve objectivity.

To protect taxpayers, the BIR pledged stronger audit documentation. Checklists will be standardized. Supervisory oversight will be stricter. Officials who violate the rules will face sanctions. The bureau says these steps will curb inflated assessments and safeguard due process.

Private‑sector representatives responded positively. They offered constructive recommendations to fine‑tune the draft order. No one objected to lifting the audit suspension. Ruben Pascual, Secretary General of the Philippine Chamber of Commerce and Industry (PCCI), said the reforms hit core taxpayer concerns. He cited indiscriminate LOAs, bloated assessments, and inconsistent audit rules as long‑standing issues.

BIR Commissioner Charlito Martin R. Mendoza framed the reforms within the bureau’s D.A.R.E.S. agenda. D.A.R.E.S. stands for Digital and Data Transformation; Audit Reform and Accountability; Revenue Collection and Base Protection; Employee Empowerment and Welfare Promotion; Service Excellence and Stakeholder Engagement. Mendoza noted that some reforms can be applied immediately. Others, especially those involving digital tools and monitoring dashboards, will need more time. System development, data integration, and staff training are among the longer‑term tasks.

“The reforms cannot be completed overnight,” Mendoza said. “They are already underway. Progress will continue as we implement, monitor, and refine them.” He added that the technical working group will incorporate the feedback received before ending the LOA suspension. The goal, he said, is to move forward responsibly. Reforms must be workable, fair, and sustainable.

Department of Finance (DOF) Undersecretary Rolando Ligon Jr. echoed the bureau’s message. He linked the audit reforms to the administration’s broader economic agenda. Ligon said the changes reflect the “big, bold reforms” announced by Finance Secretary Go. He noted that the reforms should boost investor confidence in the Philippines. Ligon praised the positive private‑sector feedback and the strong working relationship within the BIR‑PMSG.

The consultation was attended by the BIR Management Committee. All Deputy Commissioners, Assistant Commissioners, and Chiefs of Offices were present. DOF Undersecretary Ligon Jr. and Assistant Secretary Nina Asuncion also joined the meeting. Twenty representatives from private‑sector member groups participated. They included PCCI, the Tax Management Association of the Philippines (TMAP), the Management Association of the Philippines (MAP), the Financial Executives Institute of the Philippines (FINEX), the Association of Certified Public Accountants in Public Practice (ACPAPP), the Association of Certified Public Accountants in Commerce and Industry (ACPACI), the Philippine Institute of Certified Public Accountants (PICPA), Makati Business Club (MBC), Alliance of Tech Innovators for the Nation (ATIN), Joint Foreign Chambers of the Philippines (JFC), Philippine Exporters Confederation (PHILEXPORT), and the Federation of Filipino Chinese Chambers of Commerce and Industry (FFCCCII).

The BIR expects to lift the audit suspension once the refined draft order is approved. The bureau says the new framework will create a more transparent, efficient, and fair audit system. It aims to protect revenue, support digital transformation, and restore confidence among taxpayers and investors alike.