The Department of Justice (DOJ) filed 34 criminal charges before the Court of Tax Appeals (CTA) and the Courts of Caloocan City against World Balance, also registered as CHG Global Inc. (CHGGI), in connection with its alleged P178.8-million basic tax deficiencies, according to the Bureau of Internal Revenue (BIR).
World Balance is a leading footwear and apparel brand established in 1980 in the Philippines by the Chong family.
The BIR said in a statement that on July 9, 2025, the DOJ filed before the CTA 30 criminal Informations 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).
It said that on July 16, 2025, another four criminal Informations were filed before the Regional and Metropolitan Trial Courts of Caloocan City for violations of Sections 254, 255, and 267 of the Tax Code.
The BIR said it uncovered fraudulent practices through its Run After Fake Transactions (RAFT) program, which targets the use of fictitious receipts issued by non-existent or ghost companies.
It said World Balance used the scheme to evade the correct payment of taxes constitutes willful tax evasion and deliberate misrepresentation in its tax filings, covering taxable years 2018, 2019, 2020 and 2021.
The Informations impleaded the officers of World Balance, Barnaby Chong and Bradley Chong.
“Their criminal liability is expressly provided under Sections 253(d) and 256 of the Tax Code,” the BIR said.
It said the DOJ also indicted Barnaby Chong, Bradley Chong and Audrey Suzanne Chong for alleged violation of Section 267 for making untruthful declaration, return, and other statement in the annual income tax returns of World Balance.
Aside from criminal penalties, the respondents are also liable for the payment of P178,838,936.00 in basic tax liabilities. Upon a finding of probable cause by the courts, warrants of arrest will be issued, the BIR said.
“We thank Secretary Remulla and the entire DOJ prosecution team for their swift and decisive action against World Balance and their use of Ghost Receipts. By working shoulder-to-shoulder with the DOJ, we are defending honest taxpayers and leveling the playing field against those who use ghost transactions to cheat the system,” BIR Commissioner Romeo Lumagui Jr. said.
