“Honest Taxpayers Should Not Need Connections to Survive a BIR Audit”—Abrea

Following his interview with Luchi Cruz-Valdes, the Philippine Tax Whiz calls for structural reform, greater worker tax relief, and scrutiny of unexplained wealth.

“May kilala ako sa BIR” should never be a business survival strategy.

For global tax policy expert Mon Abrea, that is the challenge at the heart of Philippine tax reform: building a system where businesses can comply without fear, honest examiners can work without political pressure, and wealth or influence cannot buy protection from scrutiny.

Following his recent interview with Luchi Cruz-Valdes, Abrea is bringing his personal experience inside the Bureau of Internal Revenue into a broader public conversation about corruption, taxpayer rights, and the reforms needed to restore trust.

“Hindi madaling balikan ang pinagdaanan ko sa BIR. But sharing my story has a purpose: to help people understand why corruption persists—and what we must change so the next generation does not inherit it,” said Abrea, Chief Tax Advisor of Asian Consulting Group (ACGlobal).

Protect honest taxpayers—and honest examiners

Abrea cautioned against treating every BIR employee as corrupt. Many, he said, want to serve with integrity while navigating institutional pressures and supporting their families.

“Understanding the pressure does not excuse wrongdoing. It explains why accountability must reach those who create, protect, and profit from the system,” he said. “We must protect the examiner who refuses an illegal instruction as firmly as we protect the taxpayer who refuses an unofficial payment.”

Replacing officials alone, he argued, cannot resolve problems sustained by political interference, opaque processes, and opportunities for negotiated enforcement.

Follow the risk. Investigate unexplained wealth.

Abrea is calling for a nationwide, evidence-based investigation of potentially undeclared taxable income behind unexplained wealth, including that of public officials and high-net-worth individuals.

“An honest business struggling to survive should not be the easiest collection target while suspicious fortunes escape meaningful scrutiny,” he said.

His proposals include stronger interagency data sharing, reform of bank secrecy restrictions with appropriate safeguards, and matching tax declarations against lawfully accessible asset, property, and corporate records. Investigations must consider legitimate sources of wealth and respect due process.

He also advocates reducing routine audit frequency for demonstrably low-risk small businesses while retaining targeted examinations where credible evidence warrants them.

Give workers relief. Make compliance simpler.

Abrea’s reform agenda links stronger enforcement to concrete taxpayer benefits:

• A phased ₱1 million annual tax-free income threshold, supported by a credible fiscal plan and stronger revenue administration.

• Simpler taxation for small businesses, reducing repetitive requirements and the cost of compliance.

• A proposed National Revenue Authority integrating BIR and Customs, with stronger operational safeguards against political interference, professional accountability, and coordinated enforcement.

“Taxpayers deserve to know that government is serious about collecting correctly, spending responsibly, and pursuing those who deliberately evade their obligations,” Abrea said.

Know your rights before the audit notice arrives

To bring the discussion directly to business owners, Abrea’s three-part Ask the Tax Whiz series on Rappler examines why businesses are selected for audit, how to respond to an audit notice, and whether safeguards under RMO No. 22-2026 will protect honest taxpayers.

The series also discusses credible representation and preventive tax reviews—without promises of guaranteed reductions or reliance on supposed connections.

“Your business is worth protecting. So is your integrity,” he said. “No taxpayer should have to choose between the two.”

Watch the interview with Luchi Cruz-Valdes:

Mon Abrea: "Every 3PM Friday, oras ng pagpako ni Kristo, makakatanggap kami ng pera.

Originally published by Rappler, read the three-part “Ask the Tax Whiz” series on BIR audits:

Why is the BIR auditing your business?

The BIR sent an audit notice. What now?

Will the new audit rules protect honest taxpayers?

For tax inquiries or media interview:

Hazel Joy Mendoza, MBA 

+63 917 801 0191 | hazel@acg.ph

Asian Consulting Group (ACGlobal)

consult@acg.ph | www.acg.ph