The Fil-Chinese chamber sees the reform of tax audits as a good sign for global investors

By Aubrey Rose A. Inosante, A reporter

The Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) said that the recent changes in the tax assessment process at the Bureau of Internal Revenue (BIR) send a positive signal to global investors.

FFCCII President Victor T. Lim said the group welcomes “positive changes” in the BIR designed to curb the misuse of Letters of Authority and related audit tools, which are documents issued to financial officers authorizing them to examine a company’s books.

“Secretary Go’s decisive move is more than just a procedural fix; it is an investment in self-confidence,” Mr Lim said in a statement on Tuesday, referring to Finance Secretary Frederick D. Go.

Mr. Go said the Department of Finance wants to limit the number of BIR offices authorized to issue letters, and will create a central digital platform to verify the authenticity of these LoAs and equipment orders.

BIR Commissioner Charlito Martin R. Mendoza had ordered the suspension of the audit in November, requiring the release of those letters.

“By bringing transparency and accountability to the tax audit process, we protect the integrity of our institutions and promote confidence that leads to job creation, innovation, and shared national progress,” said Mr. Lim.

The group said investor morale is encouraged by fair play and clear rules, but unfair enforcement undermines confidence and growth.

The FFCCCII also flagged practices such as audits that exceed their scope, overlapping investigations, and weak digital traceability in regulatory issuances as sources of uncertainty that discourage compliance and cash flows.

The initiative of Mr. As we deal with these problems, we are strengthening due process and accountability in the power of the state, he said.

“These reforms are a strong signal to the international investor community. They demonstrate the Philippines’ commitment to transition as a rule-based, predictable, and fair capital environment,” he said.

“Protecting investors—foreign and domestic alike—from unfair administrative practices is not a concession; it is a modern basis for competitiveness and a requirement for long-term economic partnerships.”

President of the Philippine Exporters Confederation, Inc. Sergio R. Ortiz‑Luis said he hopes the BIR will address the selective issuance of LoAs and reduce the total number of issuances.

“From my point of view as a trader, the LoA issue has been resolved, I hope it won’t come back after December, maybe there will be multiple LoAs issued. I hope there is only one LoA issued,” said Mr. Ortiz-Luis by phone last week.

Mr. Go also said that the government wants LoAs to be issued once a year.

“Sometimes, the issuance of LoAs seems to be selective, with the same targets year after year, even with different BIR branches issuing them. I hope this will be corrected,” he added.

Mr. Ortiz‑Luis The stability of investor confidence will depend on the government showing determination in dealing with corruption in infrastructure projects.

“First of all, confidence can be restored if there is a show… that it can solve the problem of corruption, which is obviously not doing very well now,” he said.

“The year is about to end, they are still waiting for the masterminds, it is not yet clear whether they will be charged or not,” he added.

British Chamber of Commerce Philippines Executive Vice Chairman Chris Nelson said it may be a challenge to improve investor confidence in 2026.

“I think we should see a clear movement that the government should try to do,” he said, describing the flood control mess as “floodgate,” a reference to the Watergate political scandal that brought down US President Richard M. Nixon.

Mr. Nelson also said that the passage of important legislation, such as general tax amnesty, and continued communication and coordination could boost investor confidence.