What is a Taxable Event?

"The First Tax Case of the Republic" refers to two tax cases that occurred in Jinhua, Zhejiang, and Chaoshan, Guangdong, in the 1990s in the southeast coast of China.

Republic First Tax Case

"The First Tax Case of the Republic" refers to two tax cases that occurred in Jinhua, Zhejiang, and Chaoshan, Guangdong, in the 1990s in the southeast coast of China.

From March 1995 to March 1997, a total of 218 enterprises in Jinhua County, Zhejiang Province participated in falsely issuing special value-added tax invoices, and issued 65,536 invoices, with a total price and tax of 6.31 billion yuan. The case involved 30 provinces, autonomous regions, municipalities directly under the Central Government and cities with separate plans. On March 28, 1997, the State Administration of Taxation received a report letter approved by the leadership of the State Council: "The 11 grassroots offices of Jinhua County Finance and Taxation Bureau in Zhejiang Province have opened up a total of 20 fare taxes for the development of virtual fares across the country. As much as ¹⁰⁰ million yuan ... "The incident was referred to by the media as" the first tax case of the Republic " ^[1]

From March 1995 to March 1997, a total of 218 enterprises in Jinhua County, Zhejiang Province participated in falsely issuing special value-added tax invoices, and issued 65,536 invoices, with a total price of 6.31 billion yuan. The case involved 30 provinces, autonomous regions, municipalities directly under the Central Government and cities with separate plans.

How was this startling Republican tax case discovered?

A letter of inquiry

At noon on January 8, 1997, the Jiangsu Provincial Jiangyan Procuratorate presented a special value-added tax invoice with a total price of 360,000 yuan to the inspection branch of the Jinhua State Taxation Bureau, and requested that the "Jinhua Anda Materials Industrial Corporation" issue this ticket. ". The inspection detachment immediately sent an investigation team to investigate. The address provided on the invoice was "107 Shengli Street", but there was no company at all. The inspectors realized that this is likely to be a purse company specializing in "invoice business".

On the morning of the 9th, the inspection detachment of the Jinhua State Taxation Bureau and the Economic Investigation Division of the Municipal Public Security Bureau formed a joint action group to investigate the legal representative of Anda Company, Wu Yuedong. Wu Yuedong confessed some of the criminal facts of his false invoice. At the same time, he told public security officers, like He did a lot of "invoice business" in Jinhua County, and confessed his "business partners" Lu Huaming, Huang Jinyue and other false invoicers. A preliminary investigation revealed that Wu Yuedong and three other offenders had registered 11 enterprises in Jinhua County, suspected of falsely issuing 205 invoices, with a total price and tax of 475 million yuan and a tax of 69 million yuan.

In the process of verifying Wu Yuedong's and other cases, it was found that there were 43 enterprises in Jinhua County that had false invoices. On March 20, the case of Wu Yuedong was notified to the Jinhua County Party Committee, the county government, and the county finance and tax bureau.

On April 17, Jinhua County Finance and Taxation Bureau held an emergency meeting of the backbone of the department and director. The Finance and Taxation Commissioner Wang Jinyu announced: "The Wu Yuedong case is a personal act. The county's fictitious enterprise is handled in accordance with the opinions of the county secretary meeting. The procuratorial intervention involved them. They had fewer staff and did not understand the business. The cases to be transferred must be reviewed and approved by the party committee and then submitted to the county governor for approval before being transferred. "

Based on this caliber, the Jinhua County Finance and Taxation Bureau selected 15 enterprises with a total of 655 million yuan of open-price taxes. After a fine was imposed, the case was hurriedly closed.

A report letter

On March 28, 1997, the State Administration of Taxation received a report letter approved by the leadership of the State Council: "In the 11 basic offices of Jinhua County Finance and Taxation Bureau in Zhejiang Province, the total amount of falsely developed fare taxes for all parts of the country in 1996 was 20 Billions of dollars ... "

The State Administration of Taxation's party group immediately deployed and formed a special task force to go to Jinhua County. As the case continued to make breakthrough progress, the figures verified were shocking. On June 13, the State Administration of Taxation reported the preliminary inspection of the case to the State Council. At the time, Deputy Prime Minister Zhu Rongji instructed: "Why can't this be discovered early?" It is believed that there must be no trace of apprehension for such a rampant criminal activity in this projectile place in Jinhua County. At this point, the Republic's first tax case has entered a powerful tackling phase. The incident was referred to by the media as "the first tax case of the Republic" ^[1]

At the turn of the century, what happened in Chaoshan, China? Why is a paper value-added tax invoice so mysterious that it has driven many "corporate elites" to test their lives at their own expense? How did the "807" working group of the State Council descend from the sky to wipe out more than a hundred tax fraud groups? How can the implementation of "Tax Flash Plan", "Operation Hurricane", and "Full Moon Plan" be thrilling and successful? Why is the deputy of the National People's Congress, the Secretary of the Municipal Party Committee, and the Director of Taxation trapped ... For this reason, Wu Yi, a member of the Political Bureau of the Central Committee of the Communist Party of China and vice premier of the State Council, said in a preface to the "National Mission" "Masterpiece", "a live textbook that demonstrates the strong determination of the Party Central Committee and the State Council to crack down on various economic illegal and criminal activities and to maintain the order of the market economy."

Thrilling boycott resists temptation to detect "Republic's First Tax"

The State Administration of Taxation revealed that the State Council's working group on cracking down on export tax rebates (the "807" working group) has withdrawn from Shantou recently. After inspection, it was found that criminals in Shantou and Puning forged and falsely issued 172,000 special value-added tax invoices, with a total false value of approximately 32.3 billion yuan, which could be called the "First Tax Case of the Republic."

At the end of October 2001, the Shantou Intermediate People's Court and the Jieyang Intermediate People's Court of Guangdong Province rendered judgments on 20 defendants and 7 unit defendants in 16 cases of falsely issuing special VAT invoices. So far, in Chaoyang and Puning, 30 people have been sentenced to life imprisonment or more and 19 have been sentenced to capital punishment. ^[2]

On August 25, 2000, the "807" working group launched a "Typhoon" operation together with the public security organs. In Chaoyang and Puning alone, 18 underground printing factories printing fake VAT invoices were destroyed, and fake VAT invoices were seized. It's not finished with 6 trucks.

It is understood that of the 1,142 companies inspected by the "807" working group before and after, 827 were false companies, accounting for 98.33% of the tax fraud and fraud. The working group sent more than 10,000 consultation letters to the country, and more than 9,000 were confirmed to be false. The "807" working group inspected and determined that 172,000 copies of the special value-added tax invoices were falsely opened, of which 88,000 were forged, and it was suspected of tax fraud of 4.2 billion yuan.

The inspectors found that some grassroots government leaders directly instructed the director of finance and the director of taxation to serve false enterprises; some tax cadres set up many false companies themselves and defrauded tens of millions of dollars in taxes; some customs officers received huge amounts of cash , The criminals used the notebook to record truthfully; tens of billions of funds were frequently transferred, withdrawn and exchanged by the underground bank in a very short period of time; some false enterprises not only obtained the right to import and export, but were even used by foreign economic and trade departments Named as "Advanced Unit for Earning Foreign Exchange through Export" at the provincial and ministerial levels

Puning City

The country s first tax case involved an amount of 32.3 billion yuan. The State Administration of Taxation revealed that the State Council s working group on cracking down on export tax rebates has withdrawn from Shantou recently. After inspection by the working group, criminals in Shantou and Puning forged and falsely issued 172,000 special value-added tax invoices, totaling approximately 32.3 billion yuan, known as the "Republic's First Tax Case."

At the end of October 2001, the Shantou Intermediate People's Court and the Jieyang Intermediate People's Court of Guangdong Province rendered judgments on 20 defendants and 7 unit defendants in 16 cases of falsely issuing special VAT invoices. At this point, Chaoyang and Puning cheated export tax rebates

In the case, 30 people have been sentenced to life imprisonment or more and 19 have been sentenced to capital punishment.

On August 25, 2000, in cooperation with the "807" working group, the public security organs launched the "Typhoon" operation. In Chaoyang and Puning alone, 18 underground printing factories printing fake special VAT invoices were destroyed. The seized fake value-added tax invoices have not been pulled by 6 trucks. China Mint has identified 110,000 incoming invoices of commercial enterprises seized and confirmed that 80% of them were counterfeit.

It is understood that of the 1142 companies inspected before and after the "807" working group, 827 are false enterprises, accounting for 98.33% of the problems of falsely opening and tax fraud. The working group sent more than 10,000 invoice consultation letters to the whole country, and more than 9,000 were confirmed to be false. The "807" working group checked and found that 172,000 copies of the special VAT invoices were falsely opened, of which 88,000 were forged and suspected of tax fraud of 4.2 billion yuan.

Some grassroots government leaders directly direct the director of the finance department and the tax department to serve false enterprises; some tax cadres set up many false companies themselves and swindled tens of millions of dollars in taxes; in the notebooks of criminals, records were made to the customs The personnel sent huge amounts of cash; the underground money bank frequently transferred tens of billions of yuan of funds in a very short period of time, withdrawing cash and swapping foreign exchange.

The inspectors found that some false enterprises not only obtained the right to operate import and export, but also were rated as "Provincial and Ministerial Advanced Units for Earning Foreign Exchange" by foreign economic and trade departments; out-of-control industrial and commercial enterprises and piled up false enterprises. After the "807" working group entered, the local industry once cancelled the business registration of thousands of enterprises; some financial institutions let the cash flow out; some individuals in the foreign exchange management department advised tax scammers to save tax fraud costs; transportation under customs supervision The convoy is full of individual vehicles. Many so-called vehicles for export cargo transportation are even scrapped and tractors, making it impossible to check the customs shipments.

While the "807" working group revealed and arrested criminals in the society, it investigated 328 persons involved in the case of party and government agencies, law enforcement departments, and other departments, and some offenders were transferred to judicial authorities for processing.

Jin Renqing, deputy leader of the State Council's leading group on cracking down on export tax rebates and director of the State Administration of Taxation, emphasized that the crackdown on export tax rebates has achieved phased victory, and the economic order in the country's import and export sector has also changed. This is a major achievement in rectifying and standardizing the market economic order in China.

The State Council's working group on cracking down on export tax rebates has withdrawn from Shantou recently. The criminal groups in Shantou and Puning have forged and falsely issued 170,000 special value-added tax invoices, which were valued at approximately 32.3 billion yuan, which are known as the "First Tax Case of the Republic"-Jinhua Tax Case. 6 times.

What Xinhua News Agency did not report is that since the State Council's anti-fraud export tax rebate working group entered Shantou in August 2000, for nearly 500 days and nights, the Shantou detachment of the Armed Police Force is undertaking special tasks to defend the working group and detain criminal suspects. Difficult task.

Absolutely guarantee the safety of the working group

On August 7, 2000, the Office of the Prime Minister of the State Council decided to establish a leading group to combat export tax fraud (referred to as the "807" working group). Just three days after the establishment of the "807" working group, a leader of the State Council called the commander of the Armed Police Force Wu Shuangzhan and asked the police for assistance. Commander Wu directly called the captain of the Guangdong Armed Police Corps Hong Shaohu. Captain Hong secretly issued an order to the Captain of the Armed Police Shantou City Branch Wu Tingfu to ensure that the "807" working group was foolproof! The Shantou detachment of the Armed Police Force accepted this difficult and special task.

Before the working group entered, there was an accident: a fire broke out in a building in Shantou Welcome Hotel, and a cadre of a unit in Guangdong Province died. Wu Yun immediately shrouded the members of the working group. When he came to a strange and complicated place, he first encountered a dismissal. Can the work be successfully completed in the future?

Here in Shantou, officers and men of the Shantou detachment of the Armed Police Force are also busy. They rushed to the station to survey the terrain, and analyzed the deployment of troops with the leader of the working group. Aiming at the fact that the working group stayed close to the sea and mastered the law of the tide rising and falling, a whistle-stop plan of "chaotic retreat and stay" was formulated to serve everyone's reassurance.

Shantou Chaoyang

Cooperate with the public security to carry out the operation of "Typhoon" and "Full Moon"

On the night of August 24, 2000, the haze shrouded the land of Shantou, and a strong tropical storm "Bilis" struck. The "Typhoon Operation" to combat the crime of value-added tax invoices, which was directly directed by the working group, the Ministry of Public Security and the Guangdong Provincial Public Security Department, was launched in secret. At 3 am, detachment leader Wu Tingfu and political commissar Li Yuanming personally led 200 armed police officers and soldiers, and cooperated with the Shantou public security organs to split the two roads and conduct raids on the production, sales, and false opening of special VAT invoices in 7 towns in Chaoyang.

After more than 3 hours of continuous operations, 8 tax-related dens were destroyed on the site, 27 persons involved in the case were arrested, 7750 sets of 310 special VAT invoices for 13 provinces and cities nationwide, 2191 sets of scattered invoices, and wigs of semi-finished products were seized. A batch of 3,800 tickets and counterfeit tools. The operation was a complete success. The Ministry of Public Security sent a congratulatory message praising the assault operation in Shantou "with close organization and remarkable results."

On the Mid-Autumn Festival night of the same year, officers and men were ordered to carry out the "full moon" operation, hunting down the key subjects involved in the case. At 3 am, a 7-storey mansion in Xiashan Town, Chaoyang City was closely controlled. Under the leadership of Squadron Li Jianqiang, he quickly occupied the seventh floor and controlled the commanding heights, and the rest cooperated with the police to conduct a search. Suddenly, there was a bang on the sixth floor. Captain Li heard the sound and chased after seeing a dark shadow fleeing along the sewer. He yelled and rushed forward. "Shadow of Shadows" was stunned. In Liangying Town, after Captain Zheng led 10 soldiers to search for a house and found that there was one less suspect, he conducted a net search in the vicinity and eventually arrested the suspect in the pigpen. By 8 am, the operation was successfully concluded, and 120 officers and men searched 12 dens and arrested 17 suspects, including 7 key subjects.

Resist temptation to detain suspects

In addition to defending the working group and cooperating with the actions of the public security department, the armed police officers and soldiers also have the task of detaining suspects. Some of these detainees are officials and big bosses, all of whom have special identities. Most of the officers and men came from the underdeveloped regions of the Mainland. Faced with these influential and wealthy people, all kinds of temptations came by no means. But officers and men can sit still and stay unmoved.

In custody, usually three soldiers in a room are responsible for two objects. You can't read the newspaper, you can't make phone calls. You must watch the subject's every move 24 hours a day. For these young fighters, it is undoubtedly accompanied by the criminal suspects.

For more than a year, the detainees walked from place to place, and officers and soldiers could only continue to accompany the new subject to sit still. There were even a group of soldiers who had not retired until recently and had not been to Shantou. Before leaving, their only wish was to make a circle in the urban area.

For more than a year, the officers and soldiers also resisted the temptations: the party committee of the detachment refused to attract more than 10 yuan in the name of sponsoring the detachment, totaling more than 800,000 yuan; the officers and soldiers refused to bribe more than 80 people, the total amount reached 200 More than ten thousand yuan.

In the past 500 days, from the leaders of the working group to the leaders of the provinces and cities, from the leaders of the Armed Police Force to the leaders of the Provincial Corps, the evaluation of the Shantou detachment of the Armed Police was 8 words: "absolutely reliable, absolutely trusted".

National mission, historical photo of the first tax case (excerpt) The sun is like a fire, glowing with blood. Yunxia huddled and fluttered like a burning dancer, proclaiming the ultimate glory of life. The reckless mountains, with the tiredness of restless day, lie in the faint mist ...

The car was like a spaceship, cut through the golden yellow Xilan, and ran towards Liusha Town. Sitting in an arrow-flying car, accountant Chen Hongli felt a little dizzy. She touched the arm of the company's owner Zhou Songqing, prompting: "Slow down!"

Zhou Songqing stepped on the accelerator foot. He is like a motorcycle "runaway" with his head tied to the waist of his pants. As long as he is on the road and oiled, the speed can no longer be reduced. Zhou Songqing likes to stimulate, like the speed of life and death that makes every cell stretch up. He feels that life is not as simple as life.

The sky was low, and the daisies had swallowed up half the sun. Zhou Songqing's angular face was cut into two shades of yin and yang by Xi Zhao, one side like sea water and one side like flames. Chen Hongqing looked sideways, a horror of fear in her heart. She would not have thought that the boss who was sitting next to her would soon be a suspect named by the Premier of the State Council, and she would also have spent ten years in prison for participating in the crime.

At that time, in the Chaoshan area of Guangdong, fraudulent export tax rebates have become a major industry in which some government officials and criminals have participated together. National taxes have been stolen madly, and the local economy and tax order have almost collapsed ...

In this warm and humid tax fraud soil, countless Zhou Songqing and Chen Hongli emerged from the ground, bathing in the warm sun, bathing in the rain and dew, and growing wild like grass. With his ability, Zhou Songqing knocked on the door of the procuratorate. After contracting the company of the Procuratorate, the "business" was really lively and prosperous.

With this golden signboard of the Procuratorate, Zhou Songqing's waist is even harder. In the past, getting invoices sometimes had some troubles; nowadays, people are enterprises under the Procuratorate, can you not rest assured? Besides, I am a prosecutor, unlike some self-employed people, I can't work in the field a day ago. And they are government officials, like your tax officials, they are all in uniform. Enter the tax office, no need to say good things, handed a smile. At most some of the money is handed over, and that's a plan.

"National Mission"

The company's "business" was done, and the solemn prosecutor's gate suddenly had more "business" people coming in and out. Zhou Songqing has the same skills as Sun Wukong. In a blink of an eye, a company expanded to 17 companies, and all of them have gone through legal procedures such as industrial and commercial registration. These companies are all "joint offices" in a room inside the gate of the prosecutor's office. In order to do a good job and not let the tax authorities at the place where the ticket was collected doubt Zhou Zhouqing engraved a total of 528 official seals, there are all kinds of seals in the printing factory, machinery factory, gas station, and medicine station, just like Sun Wukong's tricks Hundreds of industries, a family becomes a hundred, let you see no flaws, no doubt.

It is indeed much more convenient to take a brand-name office of the procuratorate. But the "clerk" in such an eye-catching place is not so easy. When some customers saw the majestic national emblem on the door of the procuratorate building, their hands sweated, their legs and stomach cramped, and their business was somewhat affected.

In order to make "business" bigger, Zhou Songqing moved the company to a small two-story building in the west of the city. About a hundred meters from the small building, is a bank. This is one of the reasons why Zhou Songqing chose the office here. On the first floor of the small building, he received "guests" and negotiated "business". Zhou Songqing spent 20,000 yuan to buy a long row of leather sofas and a water dispenser at the corner. He had to talk about services when doing business. Zhou Songqing knew this. The second floor is the place for billing. After completing the formalities, the staff will call the accountant on the second floor to issue the bill. The computer keyboards in several rooms crackled, and 12 accountants were so busy that they sent money to the bank twice a day.

Zhou Songqing's "business" is in full swing. He not only took the west of the city as a base, but also applied for tax registration at the tax bureaus of Daping, Lihu, and Hongyang, in order to expand the "business".

Zhou Songqing received tax deductions in the urban area, Lihu and Honghu smoothly, but encountered trouble in Daping. The reason is that too many invoices were received. An administrator of the invoice window said to the accountant Chen Hongli who went to claim the ticket: "People receive one in a few months, and many in a few months. You are good, one is ten or dozen. Ben, ca nt wait to pack it with sacks, it s not obvious that he is robbing money! Chen Hongli thought to himself, If I add up the tickets received by the four tax bureaus, I have to scare you into a fight. Chen Hong walked pitifully Now, hold your chest up and raise your head. Later, during the court trial, she also entered the court in this posture, and kept arguing that she was innocent. It's just that the former is angry, and the latter is a little disguised.

After Chen Hongqing was frustrated, it was Zhou Songqing's departure. Zhou Songqing saved 20,000 yuan, took Chen Hongli, drove the police car, flashed the police lights, and went straight to Daping. Daping is the southwestern border of Puning City, about one hundred kilometers from Liusha Town in the urban area. He rarely goes there. On State Road 324, he drove fast. He asked Chen Hongli: "Are you saying that 20,000 yuan is enough?" "It should be almost the same. He didn't do anything, so he would give him more invoices." "This is also a resource for others.

At the Daping Taxation Branch, the two went straight to Yu Xiaobing's office. Yu Xiaobing is deputy director and presides over the work. I heard that the number one leader has been planted too hard economically and has not been on the job recently. Yu Xiaobing crossed Erlang's legs, leaned his head, and kept smoking. After some greetings, Chen accountant almost went out and went out. Zhou Songqing took out the envelope and put it on Yu Xiaobing's table, saying, "This is a trivial matter. You buy two cigarettes."

Yu Xiaobing glanced at the envelope on the table with a serious face, saying, "We are all business, we don't need to do this." After that, he pushed the paper bag in front of Zhou Songqing. Zhou Songqing thought he was polite, but when he looked at him seriously, he knew it was unnecessary. Zhou Songqing walked out of the office awkwardly, cursing in her heart: "Wang bastard, 20,000 yuan is too small!"

What to do next? Thinking hard, Zhou Songqing remembered someone. This person has long been in his field of vision. Just such a small matter should not shock others. Now that Daping can't get through this, he can only ask him to leave the mountain. This person is a well-known figure in this case, named Lai Chunan, who is the leader of the State Taxation Bureau of Puning City.

Zhou Songqing came to Puning State Taxation Bureau and walked into Lai Chunan's office. Lai Chunan's office is large. The writing desk is facing the reception room. There are two phones on the table. Lai Chunan is picking up the mobile phone at this time. The short and fat Lai Chunan raised his hand to signal Zhou Songqing to sit down on the opposite sofa first.

As soon as he was seated, someone brought tea. Seeing that Lai Chunan answered the phone, Zhou Songqing walked over and sat on the chair in front of the writing desk. After a few words, Zhou Songqing presented a greeting, a large leather pocket. Lai Chunan was well-informed, weighed the weight of his pocket, smiled, and put it in the large drawer of the writing desk. Zhou Songqing thought that the Secretary was really polite, but here was 100,000 Hong Kong dollars! Seeing that Director Lai was smiling and satisfied, Zhou Songqing said the main purpose of the visit, saying that he was in trouble in Daping and asked him to say hello to Yu Xiaobing. Lai Chunan made a hum, saying that he accepted his request. "How's business lately?" Lai Chunan asked casually.

"It's okay, rely on your care!"

"Isn't it small?" Lai Chunan moved Norton's body ...