Senator Erwin Tulfo on Monday, November 24, 2025, held a press conference to raise alarm over what he described as a “money-making scheme” within the Bureau of Internal Revenue (BIR), claiming that the agency has been abusing the issuance of Letters of Authority (LOA) to extort from taxpayers.

“Habang abalang-abala po tayo dito sa flood control, may nangyayaring korapsyon naman dito sa Bureau of Internal Revenue,”

Tulfo said, adding that he considers the BIR the second most corrupt government agency after the Department of Public Works and Highways (DPWH).

According to Tulfo, many business owners—from small enterprises to major corporations—have complained that BIR examiners continue to subject them to inspections even after they have fully paid their taxes. Tulfo likened the LOA to a “search warrant,” claiming that the document is used as a tool to pressure businesses.

“Eh bayad na po ng tax ang isang kumpanya… hindi na po pinapatawad. Kaya marami na pong umaray mula Luzon hanggang Mindanao,” he said.

The senator said his objective in raising the issue is to prompt the Senate Blue Ribbon Committee to investigate what he believes is systemic corruption inside the BIR involving the misuse of LOAs.

“Talagang inabuso po ito, habang busy pa ang lahat dito sa flood control mess or scam,” Tulfo stressed.

He also named examiners as among the personalities involved in the alleged scheme. Tulfo said former BIR Commissioner Romeo Lumagui Jr. should also be included in the inquiry, noting that the alleged abuses happened under his watch.

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