BIR lauds DoJ over bizman indictment for tax evasion

The Bureau of Internal Revenue (BIR) has commended the action taken by the Department of Justice (DoJ) who filed 34 criminal charges against popular footwear and apparel brand World Balance, also registered as CHG Global Inc. (CHGGI), and its corporate officers in connection with an alleged P178.8 million in basic tax deficiencies.

In a statement, the BIR lauded the DoJ for its successful action, stemming from the BIR’s “Run After Fake Transactions” (RAFT) program.

Thirty criminal informations were filed by the DoJ last 9 July 2025, before the Court of Tax Appeals (CTA) against World Balance and its corporate officers for alleged violations of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

These sections relate to attempting to evade or defeat tax and failure to supply correct and accurate information.

Additionally, four more criminal informations were filed on 16 July 2025, before the Regional and Metropolitan Trial Courts of Caloocan City. These charges also include alleged violations of Section 267 of the Tax Code, which pertains to making untruthful declarations in tax returns and other statements.

The BIR said that its RAFT program uncovered fraudulent practices by World Balance, which allegedly used fictitious receipts from non-existent or “ghost” companies.

This scheme, according to the BIR, constitutes willful tax evasion and deliberate misrepresentation in the company’s tax filings for the taxable years 2018, 2019, 2020 and 2021.

The charges specifically name Barnaby L. Chong and Bradley L. Chong, officers of World Balance, citing their criminal liability under Sections 253(d) and 256 of the Tax Code. Barnaby L. Chong, Bradley L. Chong and Audrey Suzanne L. Chong were also indicted for violating Section 267.