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China's Tax Authorities Expose Three Invoice Economy Cases
China's tax authorities reveal three major 'invoice economy' cases with illegal invoicing exceeding 10 billion yuan.
In brief
China's tax authorities reveal three major 'invoice economy' cases with illegal invoicing exceeding 10 billion yuan. China's State Taxation Administration exposed three 'invoice economy' cases involving illegal invoicing of over 10 billion yuan, with tax officials disciplined and criminal sentences handed down…
First Exposure of Three Cases
China's State Taxation Administration publicly exposed three 'invoice economy' cases on October 19 with total illegal invoicing exceeding 10 billion yuan.
Nanchang Case: Fiscal Subsidies for 4.34 Billion Yuan
Nanchang Economic and Technological Development Zone attracted Zhima Kaimen E-Commerce Co., Ltd. through tax rebates, which illegally issued 4.34 billion yuan in invoices and received 24.0751 million yuan in fiscal subsidies.
Honghe Case: Criminal Gang Sentenced
A criminal gang led by Li Husen issued fake invoices totaling 27.3997 million yuan and defrauded 10 million yuan in subsidies, with the ringleader sentenced to 14 years and 4 months.
Nanning Case: SOE Loans and Fleeing Controller
Xuanpeng Agricultural Development Co., Ltd. used fake hog trades to issue nearly 8.8 billion yuan in invoices, extracting loans from state-owned enterprises before its controller fled abroad.
Tax Officials Disciplined in Nanchang
Twenty-four tax officials were disciplined in Nanchang after the company was found to have issued illegal invoices and received fiscal subsidies.
First Half Invoicing Down 37.7%
Enterprises with 'invoice economy' problems saw invoicing amounts fall 37.7% year-on-year in the first half of this year.
State Taxation and SASAC Joint Directive
China's State Taxation Administration and the State-owned Assets Supervision and Administration Commission jointly issued a directive to strengthen governance in state-owned enterprises.
Fake Invoices Defrauded 10 Million Yuan
The Honghe case defrauded 10 million yuan in subsidies through fake invoices issued by Senmao Honghe Electronics Co., Ltd.
Ringleader Sentenced to 14 Years
Li Husen, the ringleader of the Honghe criminal gang, was sentenced to 14 years and 4 months in prison for contract fraud and fake VAT special invoices.
Xuanpeng's Fake Hog Trade Loop
Xuanpeng used fake hog trades to create a closed loop where state-owned enterprises borrowed money before the controller fled abroad.
SOE Lost 60 Million Yuan
One state-owned enterprise lost 60 million yuan after Xuanpeng's fake invoicing scheme.
Tax Authorities Investigate Cases
Tax authorities opened cases against Xuanpeng and Yipindan, suspended their invoice use, and investigated the controller's flight abroad.
Invoicing Down 37.7% Year-on-Year
Enterprises with 'invoice economy' problems saw invoicing amounts fall 37.7% year-on-year in the first half of this year.
State Taxation and SASAC Focus on SOEs
China's State Taxation Administration and the State-owned Assets Supervision and Administration Commission jointly issued a directive to strengthen supervision in state-owned enterprises.
The one thing
China's State Taxation Administration exposed three 'invoice economy' cases involving illegal invoicing of over 10 billion yuan, with tax officials disciplined and criminal sentences handed down.
