The Bureau of Internal Revenue (BIR) has served Letters of Authority to the country’s top 15 flood control contractors during a Senate Blue Ribbon Committee hearing, formally launching parallel tax investigations into alleged irregularities in critical government projects.
In a post on his official Facebook page, BIR Commissioner Romeo Lumagui Jr. said the LOAs were issued Monday, September 1, under the bureau’s Run After Tax Evaders (RATE) program, which has empowered examiners to scrutinize the financial records and tax compliance of the country’s top flood control contractors.
He assured senators that the BIR would fully help President Marcos Jr. and the S enate in uncovering irregularities. The people’s taxes are for real projects, not for ghost projects,” he said.
The audit orders came as Lumagui also highlighted the bureau’s issuance of Revenue Regulation (RR) No. 17-2024, which requires contractors to present updated income tax returns and tax clearances before participating in public bidding.
Lumagui said new rules were meant to guarantee that all those who earn from government projects would pay the correct taxes.
RR 17-2024 strengthens Executive Order No. 398, Series of 2005, which mandates that all government contracts include a stipulation promoting full and correct tax payment, Lumagui explained. (PNA)
