# 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.
- Title: China's Tax Authorities Expose Three Invoice Economy Cases
- Summary: China's tax authorities reveal three major 'invoice economy' cases with illegal invoicing exceeding 10 billion yuan. China's State Taxation Administration…
- Keywords: china, state taxation administration, invoice economy, illegal invoicing, tax subsidies, fiscal subsidies, state-owned enterprises, tax fraud, fake invoices, criminal cases, tax officials, nanchang
- Source: BigGo Finance — https://finance.biggo.com/news/1fbd8ddc-3026-4b59-b124-cbb8992e85ec
- Author: BigGo Finance
- Published: 2026-10-19T10:25:13+00:00
- Read time: 2 min
- Topics: china, state taxation administration, invoice economy, illegal invoicing, tax subsidies, fiscal subsidies, state-owned enterprises, tax fraud, fake invoices, criminal cases, tax officials, nanchang
## 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.
## Key takeaway

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.