- Lianyuan Loulian Financial Management Co. and its controller Xie Jiuhua colluded with tax officials to issue 504 fake VAT invoices via 29 shell companies, involving 260 million yuan.
- The operation used a five-layer network including intermediaries and tax staff, with fake companies rapidly registered and closed to evade detection.
- The fake invoices were sold to Wuhan Ruiqi Bioengineering Co., which used them to inflate costs and evade corporate income tax; funds were laundered through multiple transfers and returned to the company’s controller.
- Authorities confiscated 9.55 million yuan in illegal gains, prosecuted key individuals, and blacklisted the involved financial company.
- The case was uncovered through big data analysis of abnormal invoicing patterns among 70 “guerrilla” companies, revealing a sophisticated, multi-layered tax fraud network.
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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