Corazon B. Zabala Auditing & Accounting Services

𝐁𝐈𝐑 𝐂𝐨𝐦𝐦𝐢𝐬𝐬𝐢𝐨𝐧𝐞𝐫 𝐌𝐞𝐧𝐝𝐨𝐳𝐚 𝐨𝐫𝐝𝐞𝐫𝐬 𝐭𝐡𝐞 𝐭𝐞𝐦𝐩𝐨𝐫𝐚𝐫𝐲 𝐬𝐮𝐬𝐩𝐞𝐧𝐬𝐢𝐨𝐧 𝐨𝐟 𝐋𝐞𝐭𝐭𝐞𝐫𝐬 𝐨𝐟 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐭𝐲, 𝐌𝐢𝐬𝐬𝐢𝐨𝐧 𝐎𝐫𝐝𝐞𝐫𝐬, 𝐚𝐧𝐝 𝐫𝐞𝐥𝐚𝐭𝐞𝐝 𝐟𝐢𝐞𝐥𝐝 𝐚𝐮𝐝𝐢𝐭𝐬

In a joint announcement at the Department of Finance today, Finance Secretary Frederick Go and Bureau of Internal Revenue Commissioner Charlito Mendoza announced the immediate and temporary suspension of all field audits and related operations of the BIR.

“I have ordered the immediate suspension of all field audits and related operations, including the issuance of Letters of Authority and Mission Orders, effective immediately, in accordance with Revenue Memorandum Circular 107-2025. No Letter of Authority or Mission Order shall be created, printed, signed, or served during the suspension period,” detailed Commissioner Mendoza.

In his first week in office, Commissioner Mendoza convened key units of the Bureau of Internal Revenue to gain a thorough understanding of existing audit operations and to identify long-standing issues that have affected taxpayer experience and internal discipline. The suspension was issued after extensive internal consultations and was undertaken with the guidance and strategic oversight of Finance Secretary Frederick Go to ensure full alignment with national priorities on good governance, taxpayer protection, and efficient revenue administration.

“This is in response to the concerns raised by the taxpayers regarding the issuance of Letters of Authority and Mission Orders. We hear the people, we hear your concerns, and are immediately acting on them. The people deserve better,” said Secretary Go, emphasizing that the Department of Finance is committed to protecting taxpayers from potential abuse through a comprehensive review of our existing policies and procedures.

The temporary suspension applies to all BIR offices involved in audit and field operations, including the Large Taxpayers Service, Revenue Regions and District Offices, Assessment Divisions, VAT Audit Units, and Intelligence and Special Audit Units. The exceptions to RMC 107-2025 apply only to urgent or legally mandated cases such as active criminal investigations, one-time transactions, audits prescribing within six months, refund claims that require audits, or immediate action on taxpayers flagged by verified intelligence.

“This suspension is necessary to protect taxpayer rights, strengthen internal discipline, and ensure the integrity of our audit processes. We take every complaint seriously, and any misuse of authority, harassment, or irregularity has no place in the Bureau,” Commissioner Mendoza emphasized.

“All taxpayers shall be treated with the highest degree of professionalism, courtesy, and adherence to the rule of law. Our economy is built upon the contributions of our taxpayers, who deserve fair and honest tax audits,” explained Secretary Go.

Commissioner Mendoza also instructed the creation of a Technical Working Group on LOA and Mission Order Integrity and Audit Reforms to lead the reform efforts. The group is tasked with evaluating existing procedures, identifying operational and systemic vulnerabilities, recommending revised LOA protocols, and integrating digital safeguards and uniform audit standards.

“Our goal is to create processes that are predictable, evidence-based, technology-driven, and fair,” explained Commissioner Mendoza, reiterating that these systems are meant to protect taxpayers while helping the Bureau perform its mandate efficiently.

“I cannot overemphasize President Ferdinand Marcos, Jr.’s directive for the BIR to continue meeting revenue targets while strengthening service delivery for workers, small business owners, and all taxpayers who rely on predictable and transparent audit processes. The overarching directive of the President when I assumed office is to ensure efficient and fair revenue collections,” Commissioner Mendoza said to end the joint announcement.

RMC No. 107-2025: https://tinyurl.com/bdynx69h

Revenue Memorandum Order (RMO) No. 46-2025

New Alphanumeric Tax Code (ATC) of Selected Revenue Source under Revenue Regulations (RR) No. 24-2025.

of IFRS-18

The new presentation and disclosure standard is mandatory effective January 1, 2027, bringing the biggest shake-up to financial reporting in years. Here's what you need to know:
📊 Key Changes:
• New required subtotals in P&L (operating profit, profit before financing & income tax)
• Stricter rules on what goes in "operating" vs "investing" activities• Management
Performance Measures (MPMs) must be clearly defined and reconciled
• Enhanced transparency requirements for unusual items
• Clearer guidance on income statement aggregation and disaggregation

💼 Why This Matters:
• Better comparability between companies
• Reduced confusion around adjusted earnings
• More standardized financial analysis
• Improved investor confidence
The transition might feel overwhelming, but early preparation is your best friend. Companies should start mapping their current reporting to new requirements now.

Accounting Knowledge Concepts

Accounting reports are the backbone of financial decision-making. They don’t just track numbers — they tell the story of a business’s performance, health, and compliance.

✓ Understanding these reports helps in smarter planning, better control, and transparent financial management.

1. Financial Accounting Reports: These reflect a company’s financial position and performance.
• Income Statement (P&L): Shows revenues, expenses, and profit/loss.
• Balance Sheet: A snapshot of assets, liabilities, and equity.
• Cash Flow Statement: Tracks inflows and outflows of cash.
• Statement of Changes in Equity: Explains owner’s equity movements.

2. Management Accounting Reports: Used internally for business decisions.
• Budget Report and Variance Report compare targets vs. actuals.
• Cost Report and Break-even Analysis help in cost control.
• Segment Report provides insights by product, unit, or region.

3. Tax Accounting Reports: Ensure tax compliance
• GST Return Summary, Income Tax Report, and TDS/TCS Reports summarize tax liabilities and deductions.

4. Auditing Reports: Ensure transparency and accountability.
• Statutory, Internal, and Audit Opinion Reports assess accuracy and compliance.

5. Specialized Reports: Focused on specific operational areas.
• Accounts Receivable/Payable, Inventory, Payroll, and Depreciation Reports track financial movement and asset values.

✓ These reports together form the complete financial ecosystem helping organizations stay compliant, profitable, and data-driven.

Kindly share this post within your network to help others gain valuable insights as well.

𝗟𝗮𝗯𝗼𝗿 𝗔𝗱𝘃𝗶𝘀𝗼𝗿𝘆 𝗡𝗼. 𝟭𝟯-𝟮𝟱
𝗦𝗽𝗲𝗰𝗶𝗮𝗹 (𝗡𝗼𝗻-𝗪𝗼𝗿𝗸𝗶𝗻𝗴) 𝗗𝗮𝘆𝘀
𝟯𝟭 𝗢𝗸𝘁𝘂𝗯𝗿𝗲 𝟮𝟬𝟮𝟱 and 𝟬𝟭 𝗡𝗼𝗯𝘆𝗲𝗺𝗯𝗿𝗲 𝟮𝟬𝟮𝟱 (All Saints' Day Eve and All Saints' Day)

𝗥𝗲𝗴𝘂𝗹𝗮𝗿 𝗛𝗼𝗹𝗶𝗱𝗮𝘆
𝟯𝟬 𝗡𝗼𝗯𝘆𝗲𝗺𝗯𝗿𝗲 𝟮𝟬𝟮𝟱 (Bonifacio Day)

BIR Revenue Regulations (RR) No. 027-2025 amends Section 8 of RR No. 25-2003 on the tax treatment on subsequent sale, transfer or exchange of tax-exempt automobile by a tax-exempt person/entity to a non-exempt person/entity.

BIR RMC 55-2025
SEC. 258 unlawful Pursuit of Business - Any person who carries on any business without registering the same in accordance with Section 236 punishable by fine of P5,000 to P20,000 AND imprisonment of not less than 6 months but not more than 2 years.

Please be guided accordingly.

Effective Oct. 10, 2025 transaction (filing date Nov. 10).
Change from 1% to 0.5% Withholding tax rates for manufacturer and importer of Motor vehicle parts, Medicine / phramaceutical products and fuel related products.

Revenue Regulations (RR) No. 24-2025 further amending the pertinent provisions of Section 2.57.2.(I) under RR No. 2-98, as amended by RR No. 11-2018, RR No. 7-2019 and RR No. 31-2020, on the imposition of Creditable Withholding Tax on Top Withholding Agents.

SEC REMINDER:

The deadline for filing your Audited Financial Statements (AFS) is approaching! Ensure timely submission to stay compliant with SEC regulations. Don’t delay—file before the deadline!

BIR REMINDER:

The deadline for filing your Income Tax Return (ITR) is fast approaching! Make sure to file before April 15 to avoid penalties. Don't wait—file on time and stay compliant!