In a recent interview with AB Magazine, DivinaLaw Partner Atty. Danica Mae M. Godornes shared her insights on the new guidelines on tax audit issued by the Bureau of Internal Revenue (BIR).
In November 2025, the BIR ordered the suspension of all field audits and related operations nationwide as part of a review of audit practices and internal controls. Examinations resumed in January 2026 under a new framework aimed at reducing overlap, limiting discretion and making case selection more system-driven. The changes are already impacting how advisers approach audit engagements.
“With tighter rules on audit authority and scope, firms are more deliberate in confirming coverage at the outset and in monitoring how the audit develops,” said Atty. Godornes.
A central feature of the new framework is the move to a single electronic letter of authority (eLA) per taxable year, replacing the previous practice of issuing separate audit authorities, such as for VAT. This allows the BIR to review all internal revenue taxes together, enabling a more holistic assessment of taxpayer positions.
“The move to a single eLA per taxable year has reduced repetitive document requests and allowed the BIR to evaluate transactions in a more integrated manner, rather than revisiting the same records under different audit cycles,” said Atty. Godornes.
AB Magazine is the flagship publication of the Association of Chartered Certified Accountants (ACCA), a global body for professional accountants with more than 250,000 members worldwide.
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