April 28, 2026 —The Bureau of Internal Revenue (BIR) has launched a formal tax audit on Vice President Sara Duterte, her husband Mans Carpio, and nine affiliated companies, citing “probable cause” based on discrepancies between their declared assets and reported financial transactions. The move comes amid heightened political tension and ongoing impeachment proceedings.

In a statement, BIR Commissioner Charlito Martin Mendoza confirmed the issuance of Letters of Authority (LOAs), which legally empower revenue officers to examine books of accounts and financial records. Mendoza stressed, “It is not a conclusion of liability, but it is a necessary step in determining the correct taxes due. Accountability begins with the consistent application of the law.”

The audit was triggered by third-party data, including Vice President Duterte’s Statements of Assets, Liabilities, and Net Worth (SALNs) and reports from the Anti-Money Laundering Council. Lawmakers revealed during impeachment hearings that Duterte’s bank transactions amounted to P6.7 billion over two decades, while her declared net worth peaked at only P88 million. In some years, her declared cash deposits were zero, raising questions about undeclared income.

The nine companies under scrutiny include Carpio Lawyers (formerly Carpio & Duterte Lawyers), Zelta Matiem Salon, City Hall King Chow Foods Corporation, Davao Bounty Times Foods Corporation, Madayaw Fisheries Inc., Davao Emerging Taipans Corporation, Amianan Shores Inc., Cale88 Foods Corporation, and Geometry Security and Investigation Agency Inc.

The BIR emphasized that the investigation will follow the Run After Tax Evaders (RATE) program protocols, the bureau’s primary enforcement mechanism against tax fraud. Mendoza added, “The end objective of this lawful exercise is to collect the correct taxes due to the government. Rights will be accorded to the audited entities. This will be fully compliant with all RATE protocols.”

This development comes just days after the House justice committee deferred opening a box containing the couple’s tax records, citing legal concerns over confidentiality provisions in the National Internal Revenue Code. The BIR’s decision to proceed independently underscores the seriousness of the allegations and the agency’s commitment to a rules-based approach.

The audit adds to mounting political pressure on Vice President Duterte, who is facing impeachment proceedings and scrutiny over her financial disclosures. Analysts note that the probe could have significant implications for her political future, as well as for the credibility of the administration’s anti-corruption and tax enforcement campaigns.