- Zhang Fengmei, the actual controller of Tianjin Changze Financial Management Co., Ltd., manipulated 49 shell companies to issue fraudulent VAT invoices from 2016 to 2024.
- The scheme involved issuing 2,643 ordinary VAT invoices (1.6 billion yuan) and 2,331 special VAT invoices (1.3 billion yuan).
- Tax authorities and police investigated, placing the company and Zhang under key supervision and investigating over 270 downstream recipient companies, recovering over 30 million yuan in taxes.
- The shell companies were registered with overlapping personnel, addresses, and contact information, with no real business activity.
- Funds from the scheme were funneled through company accounts to Zhang’s personal account and then partially returned to recipient companies and related individuals; the case has been transferred to prosecutors.
Source: chinatax.gov.cn
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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