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Liuzhou Tax Bureau Penalizes Tax Service Professional for VAT Invoice Fraud Assistance

  • Liuzhou tax authorities found that tax service professional Liu Yaling helped Luzhai County Jinhui Wood Co., Ltd. issue false VAT special invoices by fabricating contracts, warehouse-out documents, understated unbilled income, and falsified financial statements from 2019 to 2022.
  • The scheme caused underpayment of RMB 1.0274 million in taxes; the company was ordered to pay back the underpaid tax, and input VAT that did not meet deduction requirements was reversed.
  • In November 2025, Liu was fined RMB 513,700 under the Tax Collection Administration Law Implementing Rules and was also listed as a dishonest tax service subject.
  • Authorities determined that 93 VAT special invoices issued by Jinhui Wood were false; the company’s actual controller was arrested, and the case was transferred for criminal prosecution.
  • Tax authorities also said downstream businesses that accepted the false invoices would be handled according to law.

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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