The Bureau of Internal Revenue (BIR) said Tuesday that it is set to restart tax audits under a revised framework, following consultations with business groups and other stakeholders.
In a statement, the agency said the new rules would take effect once the suspension on Letters of Authority (LOA) is lifted in the coming weeks, ending a months-long pause on field audits.
Central to the proposed changes is a single-instance audit policy, which generally limits a taxpayer to one electronic LOA per taxable year covering all internal revenue taxes, except in clearly defined circumstances.
Under the draft guidelines, multiple audit authorities issued for the same taxpayer and period will be consolidated into one, although taxpayers may request non-consolidation within specified deadlines.
BIR Commissioner Charlito Martin Mendoza said the audit overhaul forms a key pillar of the agency’s D.A.R.E.S. reform agenda aimed at strengthening fairness and transparency. “While these reforms cannot be completed overnight, they are already underway,” Mendoza said. “Progress will continue as reforms are implemented, monitored, and refined over time.”
The proposals were crafted by a technical review group led by Deputy Commissioner Marissa Cabreros, which also pushed for risk-based, system-assisted audit selection using anonymized data to reduce discretion and promote objectivity.
According to the BIR, the measures address long-standing taxpayer complaints over inflated assessments and inconsistent audit practices, while private sector groups have expressed support for lifting the audit suspension under the tighter, more standardized framework.