China News Service, Beijing, March 18 (Reporter Zhang Su) China's Supreme People's Court and Supreme People's Procuratorate issued judicial interpretations on the 18th, clarifying the signing of "yin and yang contracts" as one of the methods of tax evasion for the first time.
Cases of tax evasion by fabricating false tax calculation bases occur from time to time, especially in the entertainment field where several cases occurred in which income and property were concealed in the form of signing "yin and yang contracts" or decomposed in the name of others for tax evasion, which had extremely negative consequences.
The "two highs" issued an explanation on several issues concerning the application of laws in handling criminal cases that endanger tax collection and administration. The first article listed the "deception and concealment methods" used by taxpayers when making false tax returns, including "signing a 'yin and yang contract'" Concealing income or property in other forms or disaggregating it in the name of others."
Teng Wei, a member of the Judicial Committee of the Supreme People's Court and the president of the Fourth Criminal Tribunal, said that the explanation clearly clarified the signing of "yin and yang contracts" as one of the methods of tax evasion, providing a precise basis for judicial organs to handle such cases in the future.
In response to the frequent cases of fraudulent export tax refunds, this explanation clearly lists 8 forms of "false export declarations" to provide guidance for judicial authorities to severely crack down on such crimes.
Among the typical criminal cases released by the "Two Highs and Highs" on the 18th to punish those who endanger tax collection and administration in accordance with the law is the "Case of Shi Moumou and Others Fraudulently Obtaining Export Tax Refunds."
Criminals falsely issued special value-added tax invoices for low-priced goods, inflated the prices and then declared them for export, defrauding more than 5.7 million yuan in export tax refunds. Shi Moumou was sentenced to 11 years in prison.
From 2019 to 2023, the procuratorial organs approved the arrest of 19,393 people in criminal cases that endangered tax collection and administration, and prosecuted 54,176 people.
Yu Shuangbiao, deputy director of the Legal Policy Research Office of the Supreme People's Procuratorate, said that the procuratorate will take serious measures to defraud export tax refunds by using methods such as paying bills and matching invoices, recycling exports, low-value and high-declaration, and using "shell companies" to defraud financial refunds and government subsidies. Tax-related crimes will be resolutely and severely punished in accordance with the law, and other crimes such as money laundering, smuggling, and fraud related to tax-related crimes will also be cracked down in accordance with the law.
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