Tax Authorities in China Expose Three Cases of Tax Evasion and Fraud

Strategic Insights -

Tax authorities in China have uncovered three separate cases of tax evasion and fraud involving the issuance of false invoices and exploitation of preferential Value-Added Tax (VAT) policies for agricultural products. The cases were discovered by taxation authorities in Guizhou, Liaoning, and Jilin Provinces, and involve a total of six individuals and five companies.

Key Takeaways:

  • Three cases of tax evasion and fraud were exposed by taxation authorities in Guizhou, Liaoning, and Jilin Provinces, resulting in the recovery of approximately 38.38 million yuan in taxes and fees.
  • Guizhou Bofang Ethnic Pharmaceutical Development Co., Ltd. was found to have fraudulently registered a cooperative to secure agricultural tax incentives without actual goods transactions, obtaining 295 false invoices totaling 25.096 million yuan.
  • The company underpaid 2.4903 million yuan in taxes and fees through false tax returns, and was ordered to recover 4.4535 million yuan in taxes and fees, late payment fees, and fines.
  • A criminal gang led by Dai Yuanjun was convicted of issuing false agricultural product invoices to fraudulently obtain export tax rebates, resulting in the sentencing of the main culprit to ten years and one month in prison.
  • Yan Li's three companies, Jilin Qinhang Crafts Manufacturing Co., Ltd., Jilin Zhonghui Crafts Manufacturing Co., Ltd., and Changchun Weichun Economic and Trade Co., Ltd., were found to have defrauded export tax rebates by issuing false invoices for agricultural products, resulting in the recovery of 5.7812 million yuan in fraudulent export tax rebates.
  • Tax authorities will continue to investigate and punish tax-related violations, resolutely safeguarding national tax security and maintaining a law-based and fair tax order.

Statistics:

  • Approximately 26.326 million yuan was recovered in taxes and fees from Guizhou Bofang Ethnic Pharmaceutical Development Co., Ltd.
  • 2.4903 million yuan in taxes and fees was underpaid by Guizhou Bofang Ethnic Pharmaceutical Development Co., Ltd.
  • 18.5272 million yuan in fraudulent export tax rebates was recovered from Liaoning Taoyuan Home Furnishing Co., Ltd.
  • 5.7812 million yuan in fraudulent export tax rebates was recovered from Yan Li's three companies.
  • The main culprit, Dai Yuanjun, was sentenced to ten years and one month in prison, and was fined 25 million yuan.

Sources:

  • http://cqspb.gov.cn/zwyw/zwxw/bmdt/202510/t20251017_15091735.html