Palace orders probe on alleged 70% tax misuse by BIR personnel

Malacañang is ordering an investigation into claims that approximately 70 percent of taxes collected through Bureau of Internal Revenue (BIR) Letters of Authority (LOA) are pocketed by some BIR personnel.

Presidential Communications Undersecretary Atty. Claire Castro stated that such anomalies, if detected and become an issue, cannot be ignored and should be investigated.

Senator JV Ejercito alleged that 70 percent of taxes generated from LOAs are pocketed by corrupt BIR personnel.

Castro did not confirm if the alleged scheme was the reason for the replacement of former BIR Commissioner Romeo Lumagui Jr., as Malacañang has not disclosed the reasons for the leadership change.

New BIR Commissioner Charlie Mendoza and Finance Secretary Frederick Go have ordered an immediate halt to pending LOAs and mission orders to ensure audit integrity.