Garment industry export tax fraud benefit chain big secret

Garment industry export tax fraud benefit chain big secret Recently, the reporter learned from the interview that the Ministry of Public Security and the State Administration of Taxation listed and supervised the “7.18 Case” fraudulent export tax rebate case. The case amounted to 1.28 billion yuan, and the tax involved amounted to 180 million yuan. 23 people were criminally detained. . On August 1, the “Lightning One” fraudulent export tax rebate case that was cracked last year will be held in the Shenzhen Intermediate People’s Court for the second time. The amount involved will be as high as RMB 2.4 billion, and the tax rebate for export tax will be RMB 328 million. *** , arrested 37 members of the gang. One gang controlled 17 manufacturing companies and eight foreign trade companies, using 17 manufacturing companies to counterfeit production illusions, and falsely developed invoices for trading companies. A total of 7,787 virtual invoices were issued across Fujian, Jiangsu, Gansu, Jiangxi, and other provinces and cities. Taxes involved exceeded RMB 100 million. By defrauding export tax rebates, the money is quick, and even buying a car to buy a sports car can drive some people into the vortex of crime.

These two cases are the epitome of fraudulent export tax rebates in recent years, and their success has led to the loss of more than 200 million yuan in tax recovery for the country. However, the cases reflect the increasingly rampant tactics of fraudulent export tax rebates, the formation of upper-middle-middle-scale gang crimes, the strong concealment of distribution tickets, and the extension of new features from ports to the mainland. At the same time, we need to trigger our thinking: How can the regulatory authorities strengthen supervision and plug loopholes in the situation where criminal suspects are pursuing “better”?

Gang swindle tax: upstream, midstream and downstream operations

“Currently, the fraudulent tax has been chained. From the imaginary opening and laundering of the upstream, to the use of foreign trade companies to tax refunds, to the distribution and distribution of counterfeits, all have professional operations, so the threshold is very low.” said the investigators. Under the guidance of the 'teacher', it took just a few months."

On March 20 this year, in a residential building in Shenzhen, Zhang Jianshe (a pseudonym), the core character of the “7.18” case, was arrested at home. From the capture of the live video, Zhang builds a small, round-headed body. He had two large drawers under his double bed, covered with plywood, and he was hidden under the plywood, in the slit next to the drawer.

After being discovered by the police, Zhang Jianshe was not panicked. On the contrary, he was very calm and silent. As the Shenzhen State Taxation Inspection Bureau stated, “Under his control, there were more than a dozen manufacturing companies set up. Although he wasn’t alone, there was a team to run this thing, but if not, A considerable amount of driving power cannot be achieved."

The “7.18” case was cracked by the Ministry of Public Security and the State Administration of Taxation, and was jointly managed by the Shenzhen Municipal Public Security Bureau and the Shenzhen State Taxation Bureau. So far, the most concealed large-scale group of gangs have been committing crimes.

In 2007, Zhang Jianshe, who just graduated from college, entered a foreign trade company in Shenzhen. Here he met Zhang Hongwei (a pseudonym), that is, he led him to “cheat” on the road to fraudulent export tax rebates.

In May 2008, Shenzhen Longtaixiang Import & Export Co., Ltd. was registered and established. Zhang Jianshe is a legal representative. According to Zhang Construction’s query transcript, “The purpose of establishing the Longtaixiang company is to defraud the tax. All invoices received by Long Tai Xiang are false.”

In August 2008, Zhang Jianshe established a Shenzhen Yongguan Garment Co., Ltd. through a costume friend Xie Mou. The garment factory has a simple production to meet the inspection, while the company's accounting is controlled by Zhang Jian, and the foreign value-added tax invoice is falsely created. Zhang Jianshe said: "I give him a tax-free coupon amount of RMB 1 million for every $1 million. The company's business is completely false and there is no real business."

In the "7.18" case, there are a few trading companies like Long Taixiang and a clothing company like Yong Guan. The criminal gang headed by Zhang Jianli controlled a total of 17 manufacturing companies and 8 foreign trade companies, obtained value-added tax invoices for yarn raw materials in the name of 17 production companies, and then used the yarn invoices as a deduction for counterfeiting. In the illusion, virtual invoices for clothing are given to trading companies. Virtual invoicing spreads across Fujian, Jiangsu, Gansu, and Jiangxi provinces. From the fraudulent foreign trade companies to the ticket production companies, and even more upstream to purchase raw material yarns to obtain value-added tax invoices, they are all done by a group of people. The upper, middle and lower reaches of the line control, gang committing crimes, clear division of labor, which is undoubtedly It has become the latest and greatest feature in fraudulent export tax rebates in recent years.

The case handling staff of the Shenzhen State Tax Bureau also told reporters that “Zhang Jian was only 26 years old. At that time, we didn’t believe he was the boss when we arrested him. Then we probably understood that he would soon find the 'teacher'.” The teacher is Zhang Hongwei, a veteran of tax fraud.

Distribution distribution: freight forwarding intermediary "fried" busy

If Zhang Jianshe is the general leader of the entire fraudulent chain in the “7.18” case, then Liu Deyi (a pseudonym) responsible for “distribution and distribution” is the key to success of tax fraud. As Shenzhen's state tax inspectors said: "The fact that a fraudulent business can actually be completed is a big factor in the technical support of the disorderly freight forwarding industry."

It is understood that in the past, fraudulent elements initially adopted the method of counterfeit goods, that is, goods that did not have a tax refund or goods that had a low tax refund rate were reported as high-return goods. This method is dangerous. If it is checked by Customs, it will expose itself. Later began to report more out of less and virtual high offer. The "distribution and distribution of tickets" reflected in the "7.18" case is a further evolution of criminal tactics. The so-called "distribution distribution" is to find some freight forwarders who do not need tax refunds, and to match those goods to the taxpayers' dummy tickets. Such a legal clearance, the concealment is very strong, because the customs can not grasp the source of the goods, the customs inspection is difficult to detect the problem.

The key to the success of "distribution and distribution" is that the freight forwarding agency has mastered the real cargo information. Liu Deyi was asked by the police when he was asked from where he got the real export cargo information, he replied: "There is no fixed person, the information of these real export goods is in mutual circulation, as long as the foreign trade company proposed what kind of goods needed Information, we can all find it soon."

According to the case handling case, there are more than 12,000 freight forwarding companies registered in Shenzhen, and there are no companies like Liu Yiyi. Just rent a small office at the Wenjindu Port to distribute the computer and do the “distribution and distribution of tickets” line. If you do it for a few years, it will be more than one thing.

"As long as the goods can be found, it does not matter whether they are registered or not. There is no blank area for the supervision of this line." An investigator who asked not to be named told reporters that "the so-called law does not penalize the public. I do a lot of this now. I Dealing with them is more. Whenever they are caught on the spot, the first sentence is often, 'I'm so unlucky, how can I get caught!' He felt that it was bad luck." Say, he has done this line for many years and never imagined that there will be risks.

A random search on the Internet, you can see all kinds of "fried single" ("distribution allocation") discussion. Netizen "Freighter Workaholic" frankly said: "To tell the truth, in this line for so many years, the speculation saw much more." There are netizens ask: "Isn't the foreign trade is not stupid?" When there is a netizen asking how to help "fried When I was alone, I immediately had a series of "enthusiasm" responses. "I'm looking for sources of supply. I'll take down the deposit first, look at the delivery period, and look for suppliers to place orders..." "It's easy." "I'll help you with the landlord." Give me an ok achievement "" Look for me, 12 years experience in foreign trade, hand to hand!

In the entire foreign trade export process, the customs brokers are in the name of the consignor or consignor of import and export goods, or in their own name, handle the **** business with the customs and the domestic enterprise legal person engaged in customs declaration services. Customs brokers need to keep records at the Customs. The customs brokers in the customs brokers need to obtain qualifications and are relatively standardized. Some customs brokers are also driven by their interests, and they have done the "distribution and distribution of votes".

The reporter learned from the investigation in Shenzhen that the general customs declaration of export enterprises declaration, charge 100 yuan to 500 yuan declaration fee, and some entrepreneurs will use their brains will press the customs price down. For some specific goods, customs brokers do not charge customs fees, and even give "subsidy prices." Insiders gave examples to reporters: "Yantian Customs quotation: Customs declaration from 100 yuan, headphone subsidies from 100 to 800 yuan, pure wood furniture subsidies from 100 to 300 yuan, clothing subsidies from 100 to 1,500 yuan ... ..." This is the declaration The line is "laundry", the next step is to collude the intermediary "distribution and distribution."

Some formal customs brokers are very helpless. A customs broker at a large customs broker told reporters: “The customs brokers had a relatively low threshold, and the competition was fierce.” The speculation’s impact on us was quite large. Many companies that wanted to export thought that I would like to ask you to give a formal agent. Fees, I find some other freight forwarding or customs brokers, it's very cheap, and I can even put down my money. That's definitely some of our customers are lost."

A tax fraud case officer pointed out: “Some informal freight forwarders and customs brokers not only don’t charge fees, but instead give customers money, then they have a vicious competition. The freight forwarders and customs brokers of compliance operations may not be able to take a long time to sit down. Staying. This is called bad money to expel good money."

Shenzhen City Public Security Bureau Economic Crime Investigation Bureau Sixth Battalion's Li Chaowei, deputy head of the team told reporters: "The Lightning One" case has several principal offenders, one of which is a foreign trade company, one is a freight forwarding, the freight forwards are listed as the main offenders, in the fight against tax fraud It was the first time in his life.” He explained: “We think that the customs declaration distribution is the biggest cancer, but this industry supervision is not in place. Many people either don’t know that this is illegal, or they know it but look for it on the basis of non-subjective intention. Under the excuse, it is difficult to crack down.In the Lightning One case, the ** agency took the goods as the main offender, which was to destroy the distribution link. Even if the fraudsters could not find the corresponding goods, they would not have settled. It also dared not take this risk.

High Tax Refund Rate: Garment Industry Becomes Fraud Relief Area

Among the cases that have been destroyed in recent years, the majority of clothing products are. The “7.18” case is clothing, “Lightning One” is clothing, and Shenzhen is currently cooperating with a police case in Shaoxing, Zhejiang Province. According to the Shenzhen State tax inspectors, the reason for selecting clothes is that clothing is taxed at 17% and the tax rebate rate is as high as 16%. In addition to clothing, the tax rebate rate for electronic products and furniture is also high, and it is also an area of ​​concern for fraudsters.

According to informed sources, “The tax fraud elements are also based on the state’s policies. Which industry has a high tax refund? They have targeted which industry. Some industries have a tax refund of only about 5%, which is almost the same as the cost of tax fraud, but naturally it is not considered. The tax industry must be the industry with the highest tax rebate rate. Without profits, he will not do these things."

Since the entire fraudulent taxation process requires professional operations, each link in the tax fraud chain is like a grasshopper that is tangled together. Every grasshopper needs to get a share from it. The investigators told the reporter: “If a company has been operating for several years, only a tax refund of one or two million will be able to show that it does not swindle taxes because fraudulent taxes require high costs.” For example, Liu in the “7.18” case Proud to make more than 3 million yuan a year, but when deducting costs, it earns three to five million yuan a year.

According to the investigators, every link to fraudulent taxes is money. According to the tax rebate rate of 17%, that is, the 17 points of tax refunds, VAT invoices will cost about 6 points. Registering foreign trade companies and renting houses will cost 2 or 3 points, and they will find freight forwarders who do not need tax rebates. Matching those goods to his imaginary ticket would correspond to roughly three points. The total cost would be 12 points, and the tax frauders would have about 5 points in the end. So fraudulent taxpayers will certainly open up a large amount and exchange prices for quantity.

In this regard, some grassroots case handlers and experts have suggested that whether the state can issue corresponding policies and appropriately lower the tax rebate rate for clothing and other commodities. Tax frauds are profit-driven. If the tax rebate rate is reduced by several points, then the profits of tax frauders To the slightest extent, it also lost the incentive to tax fraud. When interviewed by reporters, Ji Dongsheng, deputy director of the Taxation Bureau of the State Administration of Taxation, said: “The high tax refund rate is also one of the factors (tax frauds).” Cui Xinsheng, associate professor of the University of International Business and Economics, told reporters: “China's exports are driving economic growth. Due to the high rate of export tax rebates, some people have drilled policy loopholes. I think the best policy is to eliminate export tax rebates. This is a fundamental solution to the problem."

Inter-regional crimes: Shenzhen tax rebates for Mainland distribution

"In the first half of last year, the National Tax Bureau of other provinces and cities nationwide had 288 visits to Shenzhen to collect evidence from companies such as shipping companies and freight forwarders. The Shenzhen National Tax Bureau cooperated with its investigation to defraud export tax rebates. This figure increased to 651 people in the first half of this year, basically covering all provinces across the country. "Shenzhen State Bureau of Taxation investigators told reporters that "there are 7 batches of 31 people in one day. The cases involved are foreign trade companies located in the mainland provinces and they are exported through Shenzhen distribution."

Set up a foreign trade company in the Mainland and look for sources in Shenzhen through freight forwarding. This trans-regional crime has become a new method and new trend for defrauding export tax rebates. According to the case handling case, the tax fraud “Zushi Shiye” in Chaoshan, Guangdong Province is very familiar with the policies. In order to escape the attack, they went north to open foreign trade companies and used their foundations and resources in Shenzhen for so many years to find the relevant sources. Due to the relatively few cases of fraudulent export tax rebates in some provinces in the Mainland, and lack of experience, criminals are likely to succeed. Invoicing from the Mainland, picking up goods in Shenzhen, and returning to the Mainland, the concealment is very strong.

“In the first half of this year, our brigade received public security from 11 provinces and autonomous regions, including Zhejiang, Jiangsu, Shanghai, and even Xinjiang. Recently, we cooperated with the Hainan Public Security Association to investigate a case and the tax fraud elements were found in Hainan. To the appropriate source of goods to come to Shenzhen to pick up the goods.” Shenzhen City Public Security Bureau Economic Crime Investigation Bureau Sixth Brigade Deputy Chief Chaochao stressed that “I think that Shenzhen has now become a distribution point distribution station, base camp.”

Vacuum Zone: Combating Fraud Taxes with Departmental Cooperation

Experts said that the crackdown on export tax fraud cannot be separated from the close cooperation between the public security, the state tax, and the customs. Therefore, all departments involved in export tax rebates should share information and establish a long-term mechanism for comprehensive management of various departments.

The case handling staff of the Shenzhen State Taxation Inspection Bureau told the reporter: “Some technical problems are not solved by one department, and many departments need to work together. I think all departments should send some comrades with practical experience and first-line comrades. Everyone sat down and exchanged information. And ideas, each designing how to plug holes."

The "Lightning One" case clues were discovered on the basis of sorting out the information of a large number of export-infringement enterprises. After finding out the company's violation records, the customs went to the State Tax Bureau to check their tax refund records, and finally locked in key suspected target companies, and transferred clues to the IRS. The advantage of the IRS lies in the combination of tax invoices and logistics. For example, the company that issued the invoice is a company that produces chemical products, but it is located in an area that rarely produces chemical products in the mainland, and does not conform to normal trade rules. According to the business logic, the national tax will determine the rationality of VAT invoice flow and analyze the risk points of tax fraud. If the risk points detected by the customs and the national tax are met, then the company is likely to participate in tax fraud.

In May this year, the Ministry of Public Security, the State Administration of Taxation, and the General Administration of Customs jointly issued a document stating that they must continue to crack down on fraud and tax rebates. In June, Shenzhen National Taxation, Customs, and Public Security jointly organized a business training for more than 200 people. There are also regular joint meetings between various departments to exchange information and experience. These are useful explorations that are worth trying. They need further improvement and development.

Get the best quality Hookah Accessories from 6shisha at low prices.We have a huge collection of top quality hookah accessories in all shapes and sizes at the best available prices online. We always do our best efforts to search for the highest quality products, with emphasis on variety,ODM & OEM are available,looking forward to your cooperation.We are proud to serve our customers all around the world.
For any further questions, we'll be more than glad to help.

Hookah Accessories

Hookah Hose,Charcoal Heater,Ceramic Shisha Bowl,Silicone Shisha Bowl

CHINA HOOKAH SMOKING LIMITED , http://www.chinahookah.com