PCCI exec: BIR corruption stays; examiner kickbacks bigger than taxes

A businesswoman and official of the Philippine Chamber of Commerce and Industry (PCCI) has accused Bureau of Internal Revenue (BIR) examiners of extorting entrepreneurs, stating that the kickbacks they receive are often larger than the taxes paid to the government. The accusation highlights ongoing corruption within the tax agency. Yolanda dela Cruz, PCCI vice president for the National Capital Region, testified before a Senate committee that after opening her food processing machinery company, Nisco Philippines, the BIR issued a Letter of Authority (LOA) demanding P6 million. Dela Cruz initially agreed to pay 10 percent (P600,000) as a contribution to the government, provided receipts were issued. However, she stated that subsequent examiners engaged in "under the table" transactions. "And what the BIR does, which I think everybody is experiencing, is they get more from under (the) table schemes than the one that we are paying BIR," dela Cruz said. Her 2022 LOA remains unsettled, with the BIR demanding P3 million, of which only P500,000 would have a receipt. Dela Cruz argued that if corrupt BIR examiners were removed, the government's revenue would increase. She detailed how her 2022 LOA has been pending, requiring her to visit the BIR five times and pay P50,000 each time, without resolution. Senator Bam Aquino, chairperson of the committee, thanked dela Cruz for speaking out and assured that the committee would act on the matter. He noted that while prior Senate investigations into BIR corruption had seemingly led to improvements, such practices might be resurfacing, causing hardship for businesses. Dela Cruz affirmed that many PCCI members share similar experiences and that her assignment is to address BIR-related issues. Aquino expressed concern that if even a PCCI officer like dela Cruz faces such difficulties, smaller and newer businesses would likely suffer even more. Accusations of BIR examiners using LOAs for extortion are not new. In December 2025, Senator JV Ejercito detailed modus operandi involving BIR personnel defrauding taxpayers, including the issuance of multiple LOAs within a year, baseless tax assessments, and demands for kickbacks significantly higher than the deficiency amounts.