MANILA, Philippines — The Bureau of Internal Revenue (BIR) has officially ordered a comprehensive tax audit of Vice President Sara Duterte, her husband Manases “Mans” Carpio, and nine business entities linked to the couple. On Tuesday, April 28, 2026, the bureau announced the issuance of Letters of Authority (LOAs), stating there is “probable cause” to examine their financial records.
The move comes amid intensifying impeachment proceedings in the House of Representatives, where recent testimonies have raised questions about the Vice President’s financial disclosures and banking activities.
The BIR’s decision to initiate the audit is based on a “rules-based approach” involving data from several high-level sources:
- AMLC Reports: The Anti-Money Laundering Council (AMLC) reportedly flagged over 33 suspicious transactions and 630 covered transactions totaling P6.7 billion involving the couple.
- Ombudsman Testimony: Analysis of Duterte’s Statements of Assets, Liabilities, and Net Worth (SALNs) showed she declared no petty cash or bank deposits since 2019, despite declaring significant liquid assets.
- Historical Transactions: Records indicate a total of P3.9 billion across 417 transactions spanning from 2005 to 2026.
“It is not a conclusion of liability, but it is a necessary step in determining the correct taxes due,” said BIR Commissioner Charlie Mendoza.
The LOAs authorize revenue officers to examine the books of accounts for the following nine companies:
- Carpio Lawyers
- Zelta Matiem Salon
- City Hall King Chow Foods Corp.
- Davao Bounty Times Foods Corp.
- Madayaw Fisheries Inc.
- Davao Emerging Taipans Corp.
- Amianan Shores Inc.
- Cale88 Foods Corp.
- Geometry Security and Investigation Agency Inc.
The audit was announced just one day before the House justice committee’s final hearing to determine probable cause for impeachment. It also follows a counter-legal move by the Vice President’s husband:
- Lawsuit Against AMLC: On Monday, Mans Carpio filed a criminal complaint against the AMLC and the Bangko Sentral ng Pilipinas (BSP) for the “illegal and felonious disclosure” of their private bank records.
- RATE Protocols: The BIR clarified that the audit will strictly follow Run After Tax Evaders (RATE) protocols, the government’s primary enforcement program for tax fraud and evasion.
The Vice President has previously characterized the investigations and impeachment moves as politically motivated attacks. However, the BIR maintains that “accountability begins with the consistent application of the law,” and it is their duty to pursue appropriate administrative or criminal remedies if evidence of tax violations is found.