Aguinaldo Tax & Accounting Consultancy

BIR Suspends All Audit and Field Operations

(RMC No. 107-2025)

Effective immediately, the Bureau of Internal Revenue (BIR) has ordered the suspension of all field audits and related field operations. This move aims to address systemic issues, protect taxpayer rights, and ensure integrity in the audit process.

The issuance of Letters of Authority (LOA), Mission Orders (MO), and the examination/verification of books of accounts are SUSPENDED until the order is lifted by the Commissioner.

While general audits are paused, the BIR will continue working on:
・Cases prescribing within six (6) months
・Estate Tax, Donor’s Tax, Capital Gains Tax, and Withholding Tax on land/share sales
・Retiring businesses
・Active criminal probes requiring immediate action
・Refund claims requiring an LOA
・Deadlines imposed by the Commissioner

The issuance of Assessment Notices, Warrants, and Seizure Notices will continue to maximize revenue collection.

Source: BIR website

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

Finance is not Accounting.

In many SMEs, it is almost impossible to have different teams for finance and accounting
and many folks have to perform both functions.

It still doesn't mean that they aren't different.

Here's a practical scenario:
→ We closed a sales order worth ₦20 million.
→ The client pays a 60% downpayment—₦12 million hits our bank account.
→ ₦8 million is still outstanding, to be paid once the job is complete.

What Accounting Sees:
- Records the ₦12m as a bank inflow and a contract liability.
- Doesn’t recognize the ₦8m as a receivable
- ₦8m is only recognized when we fulfil the entire value of our work to earn revenue

That ₦8m won’t show up anywhere until the full job is delivered.
From an accounting standpoint, it’s clean and compliant.

What Finance Sees:
- ₦12m lands in the bank and ready to be used for anything (preferably to complete the sales order first)
- The ₦8m is tracked. It’s tracked internally as “WIP cash.”
- It shows up in our internal receivables dashboard because it matters for cash planning.

Finance doesn’t wait for revenue recognition.
It keeps future potential inflows (and outflows) in view because that visibility drives action.

Tracking future cash isn’t just helpful.
It’s strategic.
It speeds up delivery, sharpens planning, and keeps teams focused on what unlocks the next payment.

Note that, in both scenarios, the balance is only collectible after we've done our part.
That doesn't change

But the main difference is:
Accounting tells you what’s happened.
Finance helps you act on what’s coming.
If you focus on accounting and not finance, you'll lose sight of information for real financial planning.
If you focus on finance and not accounting, you'll tell a false story of your business.

So no, one isn’t better than the other.
Both are essential.

We must know which hat to wear and when to wear it.

🔁 Share this to let someone know the difference

Good day taxpayers!

Revenue Regulation 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

for full text, please visit:https://bir-cdn.bir.gov.ph/BIR/pdf/RR%20No.%2024-2025.pdf

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Stay on top of your tax deadlines!
Avoid penalties and unnecessary stress by filing your tax returns on time this October & November 2025.

We help individuals, freelancers, and businesses handle all their BIR filing and compliance needs — so you can focus on growing your business while we take care of the deadlines.

MESSAGE US NOW!!

Don’t wait until the last minute. Message us today and let’s make tax filing hassle-free for you!

⚠️ Tick-tock! ⚠️

August 15 (1701Q) and

August 29 (1702Q) are just around the corner!

Don’t let deadlines sneak up on you — missing them can mean penalties you could’ve avoided.

📩 Let’s get your taxes filed right and on time: contact us and send us a DM for Tax Preparation Assistance.

Your Business Might Already Be on ’s Radar…
Most business owners only realize it when the Letter of Authority lands on their desk — and by then, it’s too late.

BE READY!!⚠️

I’ve prepared a BIR Audit Checklist Survival Kit that reveals:

🔍 The 5 red flags that trigger BIR audits
📋 A compliance checklist to avoid penalties
✅ Real cases where we reduced or canceled assessments

Are your business tax records audit-proof?

Comment down "Tax Audit Kit"

Send me a message or email

[email protected]

before the BIR comes knocking.

𝐇𝐞𝐚𝐝𝐬 𝐮𝐩, 𝐭𝐚𝐱𝐩𝐚𝐲𝐞𝐫𝐬! 𝐌𝐚𝐲 𝐛𝐚𝐠𝐨𝐧𝐠 𝐃𝐒𝐓 𝐫𝐚𝐭𝐞𝐬 𝐬𝐚 𝐢𝐥𝐚𝐥𝐢𝐦 𝐧𝐠 𝐑𝐀 𝟏𝟐𝟐𝟏𝟒 (𝐂𝐌𝐄𝐏𝐀).

Quick guide:
• DS101 – 75% of 1% ng par value
• DS103 – 75% of 1% ng transaction value
• DS106 – 75% of 1% ng issue price (prorated kung < 1 year)

Habang ina-update ang eBIRForms/eFPS:
• Manual filing ng BIR Form 2000
• Magbayad sa kahit anong AAB
• Itago ang OR at stamped Form 2000

Note: Para ito sa original issue (issuers), hindi sa mga bumibili sa secondary market. Para sa iba pang impormasyon, coordinate with your RDO or bisitahin ang https://www.bir.gov.ph/.

Follow Commissioner Lumagui’s official accounts: IG & TikTok:

How to claim the 8% Income Tax Rate Option under the TRAIN Law

Clarification on the Tax Treatment of the 8% Income Tax Rate Option under the TRAIN Law

The 8% income tax rate option was introduced under the TRAIN Law (RA 10963) to simplify taxation for self-employed and/or professionals whose gross sales/receipts do not exceed ₱3,000,000.

❗You are not required to update your Certificate of Registration (COR) to reflect the 8% option.

👇see comments on the full guide.👇

Email us at [email protected] or send us a message.

Which Income Tax Option Should You Choose? (₱3M Gross Sales Scenario)

A quick guide for professional freelancers and SMEs business owners.

Let’s compare the 3 income tax options available for those earning below ₱3M gross:

see comment. 👇👇

want to know more, to contact us for a professional tax and accounting consultancy

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