BIR to halt all tax probes on Day One of Duterte admin

DAVAO CITY, Philippines - All pending tax investigations and audits will be stopped when the Duterte administration takes over, the incoming chief of the Bureau of Internal Revenue (BIR) said on Monday.

"We have considered, initially, for the first day (of our term), to recall all letters of authority (LOA)," Cesar Dulay told businessmen during the Sulong Pilipinas workshop here.

BIR issues a LOAs to inform taxpayers that they are being investigated for possible tax violations.

But according to Dulay, he received information that probes conducted under LOA are being abused and could last for "two to three years."

"We should put a cap on that period because it is an opportunity for what can we call negotiation (for corruption)," he pointed out to a cheering audience.

Aside from this, Dulay also vowed to conduct a "review" of revenue regulations to ensure tax requirements are reduced as part of the ease of doing business.

Dulay's pronouncements came after a new spat between outgoing BIR Commissioner Kim Henares and a tax managers' group over two orders issued weeks before she steps down.

Revenue Memorandum Order 24-2016 laid out tax probe rules for property buyers and sellers found not to have financial capacity to hold onto their assets. It was issued on June 7.

Meanwhile, Revenue Memorandum Circular 62-2016 clarified how banks and non-banks should treat "passed-on" gross receipts tax to their clients. It was issued June 13.

Henares cannot be reached for comment as of this post. She earlier said "it is up to" Dulay if he wants to reverse her rulings.