Hunan Cracked 700 Million Special VAT Invoice

Hire millions of workers to work overtime, hire equipment and invest in machinery and plants As far as the tax authorities are concerned, it is the normal means of dealing with the textile enterprises in louxin!

Recently, the intermediate people's Court of Loudi City sentenced Liu Guanghui, the boss of Hengxin and Xingheng textile factories in Loudi City, who falsely issued special invoices for value-added tax. The principal offender was sentenced to life imprisonment, while the other minor offenders were sentenced to two to five years' imprisonment. This is the first case in Loudi City and even in Hunan Province in recent years The cases of confession, arrest and sentence.

Purchase 100 million agricultural products in half a year

"How did these two textile companies get five million yuan of agricultural products purchase invoices from our tax bureau, and then received 100 million yuan of agricultural products purchase invoices in just half a year after their establishment. There is something wrong with this." One night in February 2018, an invoice statistical information aroused the vigilance of the staff of the Inspection Bureau of the State Administration of Taxation in Louxing district.

With his keen sense of occupation, he quickly reported the abnormal situation of Hengxin and Xingheng textile mills to the Bureau leaders. "These are the two textile enterprises that attract foreign investment. Without affecting the normal operation of the enterprises, the inspection bureau checks the production and operation on the spot and finds out the invoice and tax problems according to law." After collecting relevant data for research and judgment, the Municipal Bureau of inspection quickly established a special group and contacted the tax investigation team of the Economic Investigation Detachment of the Municipal Public Security Bureau to establish a joint case handling mechanism.

Is this textile factory really purchasing such a large amount of agricultural products in the local area because of its good benefits, or is there something else?

With such questions, the inspection team came to Hengxin and Xingheng textile mills. The scale of the textile mill is not large. Two workshops are rented in Gaoxi Industrial Park of Loudi Economic Development Zone, covering an area of only 2000 square meters.

"Business is so good. Our six air boat production lines work overtime day and night to produce fabrics, which are exported to coastal areas and even exported. Here are our sales documents and logistics transportation documents..." Liu Guanghui, the boss of the textile factory, enthusiastically introduced the production and development of the enterprise to the tax personnel who came to inspect. He said that he was attracted by the investment promotion policy of Loudi City, so he invested more than 3 million yuan in Gaoxi Industrial Park, economic development zone, Loudi City in June 2017.

Looking at the brand-new textile machines and rolls of brand-new fabrics in the workshop, although they were very suspicious of the situation introduced by Liu Guanghui, the inspection team said that this was only a routine inspection by the tax bureau, hoping that the textile factory could operate well in accordance with the law.

Working overtime day and night is an illusion! A glass leak reveals the layers of camouflage of textile mills

"Since the boss Liu Guanghui said that the textile mill worked overtime day and night, he would stay late at night to explore the real situation." When the tax bureau and the public security bureau held a joint meeting on handling cases, they proposed.

One night in April 2018, the police of the Municipal Public Security Bureau came near the textile factory and found that the lights were bright and the machines were roaring. It seemed that they were really working overtime. Because the factory is very closed and the glass is not transparent, tax inspectors can not directly see the production situation inside.

"There's something here. Come here to see..." When everyone was ready to return without success, suddenly a colleague called in a low voice. The inspectors were shocked by the situation in the factory. All the staff in the factory were sitting next to the machines "chewing melon seeds" and "playing with mobile phones". There was no cloth production at all. The so-called working overtime day and night was just the idling of the machine

The investigators found that the cloth in the workshop was bought temporarily to cope with the inspection, and the orders and logistics from Fujian, Guangdong and other places were also fictitious. The so-called production line day and night production and workers' overtime were all "props" purchased by Liu Guanghui, whose real purpose was to deceive the tax authorities and deduct the input tax by falsely issuing purchase invoices of agricultural products , wantonly make out special invoices for value-added tax to foreign enterprises to defraud state taxes and make huge profits.

"Since the tax bureau has only the power of tax inspection and no power of investigation, it must be transferred to the Municipal Public Security Bureau for filing a case if it wants to further find out the facts of relevant crimes." After basically concluding that there was a problem of counterfeiting in the production and operation of Hengxin textile factory, the leader of Loudi Taxation Bureau in charge of inspection required that the clues and evidence of the case should be formally transferred to the public security department to form a police tax linkage for joint handling.

Loushi Public Security Bureau was officially established in April 2019. The police will send police to the tax department to be responsible for liaison and early intervention of daily tax related criminal cases. They will jointly undertake the functions and tasks of liaison and communication, organization and coordination, analysis and research, intelligence research and judgment, supervision and command, etc., so as to realize the seamless connection of all links in joint handling of cases, and improve the precision of cracking down on tax related crimes.

The tax police jointly cracked the big case of making false invoices of 100 million yuan, and the principal criminal was sentenced to life imprisonment in the first instance

According to China's tax policy, in order to protect the agricultural real economy, the company's agricultural products purchase invoice can be issued by itself without paying value-added tax, which reduces the tax burden of farmers and agricultural production and sales enterprises.

"Many illegal businessmen aim at this business opportunity, register textile, fur and other similar production plants, go to the tax bureau to get a large number of agricultural products purchase invoices, create the illusion of agricultural products purchase, and sell the invoices to enterprises in need to offset tax, so as to make profits." Loudi City Public Security Bureau in the city tax bureau liaison mechanism office responsible person explained.

"We Loudi is not a cotton production base, villagers do not plant cotton, you can check the cotton procurement first." The special group started the investigation from the agricultural and sideline products purchasing link of Hengxin and Xingheng company. According to the purchase contracts provided by the two textile mills, the members of the joint case handling team visited more than 10 farmers in secret, and found that the farmers did not grow cotton at all. The villagers said that some people paid for them, as long as they cooperated in signing cotton purchase contracts and handling bank cards.

In order to fix the evidence, the special group transferred the relevant bank records. Faced with millions of bank transaction records, the police of the special group used various investigation methods and worked hard and painstakingly for more than 20 days to sort out the capital chain of the enterprise from the massive data, and basically mastered the fund flow evidence of Liu Guanghui Gang's crime.

Through the interrogation of the criminal suspect and the investigation and evidence collection of capital flow, logistics, ticket flow and other links, it is confirmed that the gang led by Liu Guanghui used the two textile mills to engage in "fake production and operation", but in fact relied on "invoice" to falsely open false offset to defraud the state tax. Liu Guanghui gang has wantonly issued special VAT invoices to 16 enterprises in Dongguan, Guangdong and Jinjiang in Fujian Province, making huge profits from them. In one year, they falsely opened up more than 700 million yuan, defrauded nearly 60 million yuan of state tax, and illegally gained 19 million yuan, seriously disrupting the order of tax collection and management and the management order of VAT special invoices.

After the case was transferred to the people's Procuratorate of Loudi City, Liu Guanghui still stood in the corner and refused to admit his guilt or admit punishment. With his rich experience in handling cases and his exquisite professional level, the public prosecutor thought that the facts of the case were clear and the evidence was conclusive. He approved his arrest and initiated a public prosecution with zero confession in accordance with the law, and suggested that the court should be punished severely The principal criminal of the case, Liu Guanghui Dingge, was sentenced to life imprisonment.