FIVE THINGS TO KNOW…

Short explainers published throughout the day.

1:18 PM7-minute read

ABOUT THE NEW SWS POVERTY NUMBERS

Self-rated poverty and food poverty declined in June, but the figures also show how many Filipino families remain under pressure and why lower household budgets do not necessarily mean life became cheaper.

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2:02 PM11-minute read

ABOUT THE CHILDREN'S SOCIAL MEDIA SAFETY ACT

House Bill No. 9965 would bar children below 13 from having social media accounts, require parental consent for users aged 13 to 17, regulate platform algorithms, and impose fines reaching P50 million. It is still being deliberated in the House.

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12:02 PM7-minute read

ABOUT THE SEALED BIR BOX

Marcos authorized the BIR to comply with the Senate subpoena. That did not open the records to the public or prove the unexplained-wealth allegation.

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MCT READER PULSE · MCT-PULSE-2026-007

MCT READER SURVEY

House prosecutors are considering whether to stop presenting evidence on the bribery article against Vice President Sara Duterte and move directly to the unexplained-wealth charge. Do you agree with that strategy?Pinag-iisipan ng mga prosekutor ng Kamara kung ititigil ang paghaharap ng ebidensiya sa artikulo tungkol sa panunuhol at tututok sa kasong hindi maipaliwanag na yaman laban kay Bise Presidente Sara Duterte. Sang-ayon ka ba sa estratehiyang ito?

Some prosecutors want to move directly to the unexplained-wealth charge; others want to proceed with all four articles. No final decision had been announced when this survey opened. The question is about prosecution strategy, not guilt.

Background: The Philippine Star and Daily Tribune.

This is an informal survey of verified MCT readers who choose to participate. It is not nationally representative.

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September 6, 2026 · 10:15 AM8-minute read

FIVE THINGS TO KNOW IF YOU RECEIVE A BIR AUDIT NOTICE

The authority, records and questions to check under the consolidated audit rules.

Conceptual illustration of a shopkeeper and customer handling fabric in a Philippine textile shop. Fictional people; not an actual BIR inspection.
Conceptual illustration made by MCT with AI, September 6, 2026. Fictional people and shop; not a photograph of an actual tax audit.

A letter from the Bureau of Internal Revenue can send a small-business owner straight to the filing cabinet, then to the accountant. Which records are being requested? Which tax year is involved? Has the same period already been examined? These are sensible questions to ask before making assumptions about what the letter means.

The BIR's consolidated audit program, contained in Revenue Memorandum Order 22-2026, was issued in August and received renewed news coverage this weekend. It brings together rules on selecting cases, assigning examiners, requesting records and reviewing findings. Its promises of more consistent treatment need to show up in the actual handling of taxpayers' cases. Here are five places to look when reading a notice and discussing it with the professional helping you respond.

1

IDENTIFY WHAT THE NOTICE ACTUALLY AUTHORIZES

Start with the document itself. An electronic Letter of Authority, or eLA, authorizes a tax examination within its stated scope. Other authorized instruments, including a Tax Verification Notice or Mission Order, serve their own purposes under the applicable rules. A request to examine records should not be confused with a final determination of additional tax due.

That difference affects what you need to prepare. At the examination stage, the work concerns checking records and explaining discrepancies. If the BIR later issues an assessment, the taxpayer is dealing with claimed tax liabilities and the procedures for responding to them. Treating every letter as an identical demand can lead to the wrong response.

Read the taxpayer details, issuing office, document number and stated purpose with your accountant or tax adviser. Keep a copy of the entire notice and a record of when it was received. Those basic details help establish which communication you are answering and allow someone reviewing the case later to follow its sequence.

If something appears inconsistent, seek verification through the responsible BIR office. A question about authority needs to be addressed promptly; it is not a reason to leave the correspondence unattended.

WHAT TO WATCH

Check whether the next request or notice corresponds to the authority already served. Any unexplained change in the purpose or issuing office deserves clarification before you assume it is the same step in the case.

2

CHECK WHY YOUR BUSINESS WAS SELECTED

The program distinguishes mandatory cases from priority cases. Some audits or verifications arise because a transaction or application requires checking, including certain tax-clearance, refund and credit cases. Others are selected using risk indicators and information available to the BIR. These categories explain why a case may begin; they do not settle what the examination will find.

For priority cases, the order generally uses the BIR's computer systems to select taxpayers using defined criteria and verifiable data, subject to the commissioner's approval. Mandatory cases follow a different selection route. It would be misleading to say that a computer now chooses every taxpayer who will be examined, or that human recommendations have disappeared.

An unexplained difference between records can require examination without proving dishonesty. Think of a business asked to reconcile figures from its returns with information supplied by other parties: the next useful task is to identify the records behind each figure and explain any difference. That example is a reason to prepare the evidence, not an assurance that every discrepancy is harmless.

Ask the person helping you respond to identify the stated basis for selection and how it relates to your records. The answer should be more specific than a general claim that everyone is now being audited.

WHAT TO WATCH

Look for a concrete selection basis and the records supporting any claimed discrepancy. Those will help you focus your response on the actual question being examined.

3

CHECK THE TAX YEAR AND SCOPE, INCLUDING ANY REPLACEMENT AUTHORITY

The single-instance audit framework generally provides one eLA for a taxpayer's taxable year covering the applicable internal revenue taxes, subject to the rules' exceptions. It aims to avoid splitting examinations for the same year across separate authorities. The word “one” still needs careful reading: the rules allow documents to be replaced or combined so an existing examination can lawfully continue.

A replacement eLA, for example, can allow an existing examination to continue when the assigned officers change. A consolidated eLA can bring earlier authorities for the same taxpayer and year together. Receiving another document therefore does not, by itself, prove an improper duplicate audit.

Compare the old and new documents with your adviser. Which year and taxes are covered? Who is authorized to handle the case? Does the letter explain the replacement or consolidation? Keeping these documents together makes that comparison possible without relying on someone's memory of an earlier visit.

The reverse assumption is risky too. A previous examination should not be treated as permission to disregard all later correspondence. Where the scope or authority is disputed, the response needs to address the specific document and the rules that apply to it.

WHAT TO WATCH

Watch for a written notice identifying the authority being replaced or consolidated. Clarify any unexplained difference in years or tax types rather than assuming the new letter changes everything.

4

ORGANIZE THE RECORDS AND PUT THE ARRANGEMENTS IN WRITING

An audit can take time away from running a shop, serving clients or managing deliveries. The consolidated program retains a standard requirements checklist and provides a form addressing the audit venue and an authorized representative. Read those documents carefully with the person assisting you, especially if your books and supporting records are extensive.

The rules allow arrangements for examining records at the appropriate BIR office or the taxpayer's principal place of business, subject to coordination and the applicable conditions. The choice is not unlimited. If a valid subpoena requires the records, they must go to the BIR office specified in that order.

Begin with an organized inventory of what has been requested, what has been supplied and what still needs clarification. Keep copies of submissions and acknowledgments. If the owner and accountant are both communicating with examiners, make sure each knows what the other has already provided; inconsistent or incomplete handovers make a response harder to reconstruct.

Do not assume a generic online deadline fits every document. The order sets a sequence of notices for missing records, and continued noncompliance can escalate. Have the actual notice, service date and applicable response period checked promptly instead of waiting for the next letter.

WHAT TO WATCH

Track the next submission date and any written follow-up about missing records. A clear record of requests and responses helps prevent uncertainty over whether an item was supplied or remains outstanding.

5

THE AUDITORS' WORK CAN ALSO BE CHECKED

The program provides for Revalida, described as an audit of auditors. This covers review of findings, computations and assessment documents, and the order calls for separate detailed guidelines. It sets out an accountability mechanism on paper; it does not establish that every taxpayer has already benefited from such a review.

For someone facing a disputed finding, the practical question remains specific: which transaction, document or calculation supports it? Ask your adviser to work through the written explanation alongside your own records. A broad promise of fairness cannot answer whether a particular amount has been calculated correctly.

The BIR's own documentation should allow the case to be followed from the authority and requests through the findings and subsequent action. Keeping your side of that record organized helps an adviser identify what was submitted, what was discussed and where disagreement remains.

Auditor accountability and a taxpayer's response obligations run alongside each other. An announced review mechanism should not be treated as an automatic appeal, a promise to cancel an assessment or a reason to miss a response deadline. If a finding is contested, obtain advice on the procedure and timing that apply to that particular notice.

WHAT TO WATCH

Check the BIR's separate Revalida guidance and, in your own case, the written findings and response requirements. Those are more useful than assuming the reform has already corrected a disputed assessment.

BOTTOM LINE

You do not need to memorize every BIR abbreviation to begin responding sensibly. You need the complete notice, the relevant records and a clear account of what has happened so far. Take those to the accountant or tax adviser helping you, and ask concrete questions about authority, scope and the next response date. The same care should be expected from the BIR: requests that can be understood, findings supported by records and procedures followed consistently. A new audit program will earn confidence through those everyday dealings with taxpayers.

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