EXPLAINER: What are LOA, eCAR, transfer of deeds mentioned in VP Sara's impeachment trial?

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During the impeachment trial of Vice President Sara Duterte, Bureau of Internal Revenue (BIR) and land registry officials have testified about the alleged unexplained wealth of the second-highest elected official in the country.

BIR representatives mentioned the issuance of a letter of authority (LOA) for the audit of the tax records of Duterte and her husband, Atty. Manases Carpio.

Likewise, during the trial, BIR representatives testified that there is no record of an Electronic Certificate Authorizing Registration (eCAR) for the reported sale or transfer of Cale88 Foods Corporation shares.

Land registry officials testified about real properties linked to Carpio that were allegedly missing or mismatched in the Statement of Assets, Liabilities, and Net Worth (SALN).

It was alleged that Duterte’s SALN, which she filed jointly with Carpio, did not contain the P6 million property acquired by the latter in July 2024.

Some of the terms mentioned during the trial may sound technical, especially to those who are not familiar with the tax and asset transfer process.

The terms mentioned are the following:

LOA (Letter of Authority)

The BIR defines Letter of Authority (LOA) as a primary legal document that authorizes revenue officers to examine a taxpayer's books and records.

The taxman said a LOA grants the agency the authority to conduct audits based on a clear legal foundation, with proper identification of the examiner and adherence to due process.

Complementing the LOA is the Mission Order (MO) —an administrative instrument for authorizing surveillance, verification, site inspections, and other limited fact-finding activities.

Unlike LOA, an MO does not authorize audits, examination of books of account, or the issuance of assessments.

According to the BIR, the order applies to all its operating offices that conduct field audits and related field operations, including but not limited to:

• Large Taxpayers Service (LTS)
• Revenue Regions (RRs)
• Revenue District Offices (RDOs)
• National and Regional Investigation Divisions
• Assessment Divisions
• VAT Audit Unit (LTS)
• VAT Audit Sections
• Office Audit Sections
• All other offices, committees, and task forces authorized to conduct examinations, verification of taxpayers' books of account, records, and other related transactions or investigations.

eCAR (Electronic-Certificate Authorizing Registration (CAR)

An eCAR serves as tax clearance proving that all applicable taxes —such as Capital Gains Tax, Donor’s Tax, or Estate Tax— have been fully paid for the transfer of real property like land or houses or personal property such as shares of stock.

The BIR said that the eCAR being issued by the taxman allows the Land Registration Authority (LRA) to transfer ownership of real properties resulting from sale, donation, and other modes of transfer. The CAR is issued by the BIR as a proof that the transfer of property was reported and that all necessary taxes were paid in full by the taxpayer.

Transfer of deeds

Meanwhile, the transfer of deeds refers to the process of settling internal revenue taxes at the BIR and securing a Certificate Authorizing Registration (CAR) when transferring real property ownership in the Philippines