By Aubrey Rose A. innocente, reporter
Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCI) said recent reforms in the tax audit process at the Bureau of Internal Revenue (BIR) send positive signals to global investors.
FFCCCI President Victor T. Lim said the group welcomes the “positive reforms” in the BIR designed to prevent abuse of authorization letters and related audit instruments, which are documents issued to revenue officials authorizing them to inspect company books.
“Secretary Go's decisive action is beyond a mere procedural adjustment; it is an investment in confidence,” Mr Lim said in a statement on Tuesday, referring to Finance Secretary Frederick D. Go.
Mr. Go said the Finance Department is seeking to limit the number of BIR offices authorized to issue letters, and will create a centralized digital platform to verify the authenticity of these LOAs and mission orders.
BIR Commissioner Charlito Martin R. Mendoza in November ordered the suspension of field audits, which require the release of such documents.
“By establishing greater transparency and accountability in tax audit processes, we protect the integrity of our institutions and foster the confidence that drives job creation, innovation and shared national progress,” Mr Lim said.
The group said fair play and clear rules boost investor morale, but arbitrary enforcement undermines confidence and growth.
FFCCII has also identified practices such as audits exceeding its scope, overlapping investigations and weak digital traceability in regulatory issuances as sources of uncertainty that discourage compliance and capital flows.
It said Mr Go's move addresses these issues, strengthening due process and accountability in state power.
“These reforms are also a powerful signal to the international investment community. They demonstrate the Philippines' commitment to developing into a rules-based, predictable and fair destination for capital,” it said.
“Protecting foreign and domestic investors from arbitrary administrative actions is not a concession; it is a cornerstone of competitive modernity and a prerequisite for long-term economic partnerships.”
Philippine Exporters Confederation, Inc. President Sergio R. Ortiz‑Luis said he hoped the BIR would address the problem of selective issuance of LOAs and reduce the total number of issuances.
“From my perspective as an exporter, the LOA issue has been addressed, I hope it will not come back after December' maybe there will be duplication of LOAs issued. I hope only one LOA is issued,” Mr. Ortiz-Luis said by phone last week.
Mr Go also said that the government is seeking frequency of LOAs being issued once a year.
“Sometimes, the issuance of LOAs seems selective, with the same ones being targeted year after year, and even different BIR branches issuing them. I hope this will be addressed,” he said.
Mr. Ortiz‑Luis The improvement in investor confidence will depend on how the government shows resolve to address corruption in infrastructure projects.
“First and foremost, if it can be shown that it can solve this problem of corruption, which is clearly not going very well right now, then trust can be regained,” he said.
“The year is about to end and they are still waiting for the mastermind. There is no clarity yet on whether he will be charged or not,” he said.
Chris Nelson, executive vice president of the British Chamber of Commerce Philippines, said improving investor confidence in 2026 could be challenging.
“I think what we need to see is a clear step that the government should try to make,” he said, describing the flood control glitch as “Floodgate,” a reference to the Watergate political scandal that ousted U.S. President Richard M. Nixon from office.
Mr Nelson also said the passage of key legislation such as general tax amnesty and continued outreach and engagement could boost investor confidence.