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Home > Resources > News > China Tax News > China Makes Remarkable Progress in Cracking down on Invoice Illegalities
China Makes Remarkable Progress in Cracking down on Invoice Illegalities 2010-11-29 13:29:12

State Administration of Taxation


China has witnessed great improvement in cracking down on invoice illegalities since this year as it stepped up its efforts in this concern. In the first half of this year, China made a clean sweep of 13211 cases involving invoice counterfeiting and sales and illegal issuance of invoices, up 47.7 per cent compared with the same period of last year; of over 200 million illegal invoices in different forms, doubling that of last year; and of 9386 enterprises involved in purchasing invoices illegally, through which the taxes retrieved and the fines levied upon them totaled RMB1.23 billion, up 132.1 per cent year on year.

  According to the officials with the State Administration of Taxation, starting from this year, all the competent authorities of the regions across the country, following the centralized planning of the national working panel for cracking down on invoice illegalities and by taking prompt and efficient actions and with concerted efforts, struck a blow on the illegal activities involving scalping or vendoring invoices in public premises, as well as on illicit advertising information distributed through mobiles and the Internet, tracked down all the way and smashed up criminal rings who sent illegal invoice-advertising text messages, printed and issued invoices in the inexistent name, and raided on a batch of criminals' whereabouts. While cracking down on the "vendor's market" in this regard, authorities in charge of taxation, public security, auditing and inspection stepped up efforts against the "buyer's market", and meted out severe punishment according to law upon tax payer, government departments, administrative institutions involved in using falsified invoices for such purposes as accounting and calculating, reimbursement, tax deduction, and export rebates.

  According to relevant sources, the work on rectifying the "buyer's market" is going smoothly this year, and in the coming three months, a phase of centralized rectification, all the relevant authorities would, by taking concerted actions and integrating with the inspection of special cases, root out some exemplary cases relating to purchase and use of falsified invoices. Subject to the requirements of the working schedule and following the principle of "combining punishment with preventative measures, stressing the key point, addressing both the symptoms and root causes, and carrying out centralized governance", under the centralized leadership of the national working panel, the authorities concerned would act like a joint force by lubricating coordination and taking combined actions under their respective jurisdiction, thus speeding up the efforts in fighting illegal activities involving purchase and use of falsified invoices. In the meantime, the State Administration of Taxation would also inspect some key sectors, overhaul some major fields, handle some exemplary cases, and extend support to the inquiry about and identification of invoices as well as follow-ups.

  It has been learned that the inspection bureaus under local taxation bureaus across the country has stepped up efforts in this pursuit. Recently, the Inspection Bureau under Wuhan Local Taxation Bureau, Wuhan City, Hubei Province, in conjunction with the local public security bureau, has smashed up a hiding place where invoices are falsified and issued in the inexistent name. Right after cracking the case, the Inspection Bureau under Wuhan Local Taxation Bureau, Wuhan City, following the practice of "blowing up hiding places, hunting for clues, and tracing buyers", promptly set up a "7.22" special working panel for invoice inspection, listed out units prioritized for inspection by analyzing and filtering 172 pieces of information saved in the computers of the hiding place, and carried out inspection or extended inspection on 68 enterprises suspected of purchasing falsified invoices, through which the taxes retrieved numbered RMB10.9615 million; fines imposed upon them RMB3.1041 million; and overdue fines RMB1.9563 million.