Lumagui out as BIR chief, replaced by DOF usec

MANILA, Philippines — Malacañang has appointed a finance undersecretary to head the Bureau of Internal Revenue, replacing Romeo Lumagui Jr. under whose leadership the BIR is seen to miss its collection target for this year.

President Marcos appointed Charlito Martin Rada Mendoza as new BIR chief.

Mendoza took his oath at Malacañang yesterday, a day after Marcos signed his appointment.

No reason was given for Lumagui’s replacement. It was also unclear if he resigned or was fired. His wife is known to be close to First Lady Liza Marcos.

Before his appointment as BIR chief, Mendoza headed the Department of Finance (DOF)’s Revenue Operations Group, which oversees the tax collection operations of the BIR and Bureau of Customs (BOC).

He also chaired several key committees and councils, including the Technical Committee of the Inter-Agency Investment Promotion Coordination Committee, which is mandated to conduct risk assessments and comprehensive national security reviews of foreign investments.

Last month, the BIR filed criminal cases against the owners and officers of St. Gerrard Construction Gen. Contractor & Development Corp. for its failure to file as much as P7.1 billion in taxes from 2018 to 2021.

Multiple tax charges were also filed by the agency against contractor-couple Curlee and Sarah Discaya as well as against a corporate officer of St. Gerrard over unpaid income taxes, excise taxes on nine luxury vehicles and documentary stamp taxes on their supposed divestment from four Discaya-owned construction firms.

The BIR also filed tax evasion complaints against former Department of Public Works and Highways engineers Henry Alcantara, Brice Hernandez and Jaypee Mendoza involving billions in unpaid tax liabilities.

Finance Secretary Ralph Recto thanked Lumagui for being “a great partner and a fearless leader in our shared effort to ensure a reliable revenue flow for our people and to reform the tax system.”

Recto earlier said the BIR is likely to miss its collection target this year.

“Rest assured, the BIR is in good hands as commissioner Charlie will uphold the same integrity and excellence he has exemplified,” he said, referring to the newly appointed official by his nickname.

On Wednesday, Lumagui appeared before the Senate’s committee on ways and means to report on the BIR’s revenue and collection performance. Later that day, Presidential Communications Office Secretary Dave Gomez confirmed to reporters the exit of Lumagui, as signed by President Marcos.

The exit of Lumagui came at a time when the BIR was struggling to meet its collection target for the year.

Latest data from the Bureau of the Treasury showed BIR’s collection from January to September reaching P2.32 trillion, slightly lower than the P2.38 trillion targeted for the period.

Mendoza earned his Bachelor of Laws degree from San Beda University, where he placed fourth in the 2004 Philippine Bar Exams.

The finance department noted that Mendoza spearheaded a digitalization campaign aimed at eradicating smuggling and illicit trade across the country.

With the initiative in place, the DOF was able to exceed its 2024 revenue collection target, raising P4.42 trillion, equivalent to 16.7 percent of the country’s gross domestic product, the highest ratio recorded in 27 years.

Mendoza’s appointment drew praises from the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI).

“We are confident that under your (Mendoza’s) guidance, the BIR will uphold transparency, efficiency and fairness in tax administration – building greater trust between the government and the Filipino people,” SEIPI president Dan Lachica said in a statement.

He said that Mendoza is equipped with experience, knowledge, wisdom and integrity to succeed in his new role, given previous assignments with the DOF and the BOC . –  Louella Desiderio