The Bureau of Internal Revenue has filed criminal cases with the Department of Justice against CHG Global Inc., the owner and distributor of the active-lifestyle brand World Balance, along with CHK Steel and Gammon Resources.
According to the BIR, these companies bought counterfeit receipts from Brenterprise International Inc., a company that was subjected to a raid on December 16, 2022.
Brenterprise is owned by esports executive and World Balance scion Bernard Chong whose family holds ownership of CHG Global Inc. Both CHK Steel and Gammon Resources list 5 Ris Industrial Complex along Mercado Street in Guiguinto, Bulacan as their registered places of business.
In addition to the companies themselves, the BIR has filed criminal cases against their officers, the accounting firms they hired, and the certified public accountants responsible for signing their documents.
“A total tax liability of P17.9 billion has been computed for this first set of cases. This is tax evasion of the highest order, and perhaps the most elaborate tax evasion scheme in the history of Philippine taxation,” BIR Commissioner Romeo Lumagui Jr. said as he emphasized the gravity of the situation.
Bilyonaryo.com was the first to report on Brenterprise’s ‘fake receipts scam,’ which deprived the government of massive revenues.
The criminal complaints, involving P17.9 billion in unpaid taxes, were formally lodged with the Department of Justice on June 21, 2023. These cases represent only the initial wave of charges filed against purchasers of counterfeit receipts.
In March, the BIR already initiated criminal cases against the sellers of the fake receipts and their certified public accountants, with the BIR seeking to revoke the licenses of CPAs registered with the Professional Regulation Commission.
To further intensify efforts in curbing tax evasion, Lumagui established the Run After Fake Transactions (RAFT) task force in April, specifically targeting buyers of fake receipts, their corporate officers, and their accountants.
According to the BIR, the scheme involving counterfeit receipts as a means to evade income and value-added taxes has been ongoing for over 15 years.
Lumagui has made the fight against this fraudulent practice a top priority for the BIR, ensuring that those engaged in tax evasion face the appropriate consequences.
“Buyers, sellers, corporate officers, accounting firms, and CPAs involved in this syndicate will suffer the full force of the BIR,” Lumagui said.
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