tax Photo: VCG

China's tax authorities, along with the police, have investigated and penalized five cases of tax fraud in which value-added tax (VAT) invoices were fabricated, worth more than 10 billion yuan ($1.54 billion) in total. People involved in the case were punished based on relevant laws, which aim to curb the rising momentum of tax fraud and help create a fair and legal tax environment, according to media reports.

In a case that involved 6.44 billion yuan of falsified VAT invoices, criminal gangs in Jinan, East China's Shandong Province used 436 "shell firms" to fabricate more than 20,000 VAT invoices for 11,000 companies across China. A total of 10 criminal suspects were detained in November 2018, and the main suspects were sentenced to 10 years and six months in prison.

In the next step, China's tax bureau will continue strengthening its crackdown on illegal activities involving tax, and those who are involved in major tax-related crimes will be seriously penalized. Criminal conduct will be included in the credit record of enterprises and individuals, and will be updated on the national credit information platforms.

The tax audit department is also launching investigations into certain individuals who do not make an accurate declaration of their high incomes.

Global Times