DOJ set to charge Chingkoes, others over tax credit scam

The government is set to charge in court a businessman, his wife, their accountant, and an employee for allegedly perpetrating the multi-billion peso tax credit scam in 1998.

Gregorio Cabantac, internal revenue deputy commissioner for legal and inspection, said the Department of Justice (DOJ) has upheld the Bureau of Internal Revenue’s (BIR) position that charges be filed against businessman Faustino Chingkoe, his wife Gloria, their accountant Reynaldo Andaya and employee Benick Soriano for violating the tax code.

“We are very happy with (the resolution),” he said. “It’s important that we have a chilling effect against tax evaders.”

The DOJ resolution was promulgated last Dec. 26 and sent to the BIR yesterday, he added.

Chingkoe and his wife Gloria allegedly colluded with top officials of the Department of Finance in perpetrating the tax credit scam.

The scam defrauded the government of P2.5 billion in revenues from tax credit certificates.

A TCC serves as proof of a company’s claim for tax credits, which are granted either to exporting firms that are entitled to duty-free privileges or to those that have tax refunds.

The Chingkoe Group of Companies, chaired by Faustino, was one of the companies found to have used tax certificates to cheat the government.

Faustino was also found to have conspired with some government officials to secure the certificates.        – Iris Gonzales