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Different Judgments for the Same Case! How Should the Act of Issuing Invoices to Third Parties with Surplus Invoices Be Characterized?
Nov. 3, 2025, 4:58 p.m.
1657Views
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Surge in Enforcement Cases Against "Declaration Purchase Export" in Cross-border E-commerce: Heightened Tax Risks Under New Information Reporting Rules
Oct. 31, 2025, 4:18 p.m.
1888Views
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The latest case: the bill-receiving enterprise has the right to file a reconsideration of the decision to identify the upstream false opening.
Editor's Note: Based on the deduction mechanism of VAT interlocking and invoice chain, the upstream false opening often leads to the risk that the invoices obtained by downstream bill-receiving enterprises face the transfer-out of input. There are many disputes about whether the downstream bill-receiving enterprises can file a reconsideration of the upstream documents based on their interests when the upstream enterprises have not filed a relief procedure for the documents that they have falsely opened. Recently, a provincial high court tried a similar case. The court held that the downstream bill-receiving enterprise had an interest in the tax treatment decision falsely made by the upstream tax bureau, and the bill-receiving enterprise had the right to file a reconsideration on the upstream treatment decision. This paper analyzes the case and further discusses the relief path of the bill-receiving enterprise for readers' reference.Oct. 29, 2025, 4:13 p.m.
1651Views
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Latest Judicial Precedent of the Court: Using an Online Freight Platform to Issue Transportation Invoices on One's Behalf for Tax Deduction Constitutes the Crime of Tax Evasion
Editor's Note: In recent years, cases of online freight platforms being involved in the false issuance of special VAT invoices have occurred frequently. Platforms such as Zhejiang Shenshi Shengxin and Sichuan Mouyida (a certain Yida in Sichuan) have seen case amounts often reaching hundreds of millions or even tens of billions of yuan. Downstream enterprises are mostly held accountable for the crime of falsely issuing special VAT invoices or illegally purchasing special invoices, while convictions and accountability based on the crime of tax evasion are relatively rare. This article introduces a latest judicial precedent of the court where obtaining invoices issued on behalf of oneself from an online freight platform led to a conviction of tax evasion. Combining this case, it analyzes the legal characterization of truthful invoicing on behalf of others, the boundary between false invoicing and tax evasion, and puts forward tax compliance suggestions for the logistics and transportation industry, providing practical references for transportation enterprises to respond to similar tax risks.Oct. 27, 2025, 5:10 p.m.
1898Views
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Practical Application and Key Points for Cross-Examination of Audit Reports in Fraudulent Invoice Cases
Fraudulent invoice cases often involve numerous parties and complex fund flows. Investigative authorities frequently engage third-party institutions to prepare audit reports to determine whether funds were recycled or invoice fees were paid, thereby transferring relevant parties for prosecution on charges of fraudulent invoicing. In practice, many prosecuting authorities tend to accept the conclusions of third-party institutions, sometimes even over-relying on audit reports to the extent of “substituting examination with certification”—a practice that severely violates fundamental principles of criminal procedure. This article analyzes and discusses audit reports through the lens of a specific false invoicing case.Oct. 24, 2025, 4:29 p.m.
1852Views
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Multiple Platforms Release Rules on Tax-Related Information Reporting; E-commerce Tax Compliance Becomes a Matter of Survival
Editor's Note: In June 2025, the "Rules on the Reporting of Tax-Related Information by Internet Platform Enterprises" and supporting tax policies were officially implemented, marking a new phase in China's e-commerce tax collection and management. By establishing platform information reporting obligations, the new regulations effectively address the long-standing challenge of "information asymmetry" in collection and management, placing higher demands on compliance management for various e-commerce operators. This article analyzes the core points of the new regulations, the identification of tax-related risks, and provides compliance recommendations, offering reference for market entities to adapt to the new regulatory environment.Oct. 22, 2025, 4:39 p.m.
4630Views
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Key points to deal with the risk of execution of four types of procedures when obtaining invoices is suspected of false issuance
Editor's Note: Value-added tax is a "chain tax". If the drawer or the drawee is suspected of falsely making out, the risk of falsely making out may be transmitted through the invoice chain, which may lead to administrative and even criminal risks of the other party. In general cases of illegal invoices, enterprises may face procedures such as self-examination, tax investigation, tax inspection, and criminal transfer. It is of great significance to clarify the possible trends and favorable space for each stage to prevent and control criminal risks and prevent further losses. In addition, in practice, there are cases where public security organs file cases first based on case clues. In this case, it is particularly important to understand and respond to the convergence of execution. This paper, from the perspective of the drawee, analyzes the key points that enterprises should pay attention to at all stages in the case of suspected fraudulent opening.Oct. 20, 2025, 4:45 p.m.
1434Views
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Is It Legal for Tax Authorities to Adjust the Revenue of a 300-Million-Yuan Project to 2 Billion Yua
Editor's Note: Recently, Hwuason Law Firm received a consultation from a real estate development enterprise in a certain region. Due to incomplete cost vouchers for the enterprise's project caused by special historical reasons, the competent tax authority adjusted the enterprise's actual project revenue of 300 million yuan to 2 billion yuan when calculating the land value-added tax (LAT) liquidation tax using the verified collection rate, and then computed the tax by multiplying the hypothetical 2 billion yuan project revenue by a 5% collection rate. The enterprise found it difficult to determine whether this practice of the tax authority is legal. Combining the practice of LAT liquidation administration and the relevant provisions on verified collection, this article sorts out the two core modes of LAT verified collection, analyzes the legality of the tax authority's practice of significantly adjusting the project revenue in this case, and provides relief references for enterprises facing similar disputes.Oct. 17, 2025, 4:54 p.m.
1251Views
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Does the issuance and receipt of surplus invoice types necessarily constitute the crime of falsely issuing VAT special invoices?
Article 10(1)(iii) of the Supreme People's Court and Supreme People's Procuratorate's Judicial Interpretation on Tax-Related Cases explicitly includes “issuing VAT special invoices through fictitious transaction entities for business operations ineligible for tax deduction” within the scope of false issuance. This provision aims to target the use of surplus invoices for fraudulent issuance, with the associated criminal risks significantly increasing following the issuance of the judicial interpretation. In practice, differing judicial interpretations of surplus invoice fraud lead to substantial variations in the criminal liabilities ultimately borne by relevant parties. This article analyzes surplus invoice fraud through the lens of a real-world case.Oct. 15, 2025, 4:41 p.m.
1406Views
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Frequent Tax "Penetration" of Anonymous Shareholders: Tax Risks in Nominee Shareholding Warrant Attention
Editor's Note: Recently, tax authorities have continuously exposed multiple tax-related cases involving nominee shareholding, where several anonymous shareholders were pursued for Individual Income Tax after being "penetrated." As tax laws have not yet clearly stipulated the tax treatment for registered shareholders and anonymous shareholders, in practice, there are still many controversies regarding their tax obligations in various scenarios such as dividend distribution and the restoration of nominee-held shares. This has led to varying degrees of administrative and even criminal tax risks. This article aims to provide a brief overview and analysis of this issue.Oct. 13, 2025, 4:17 p.m.
1527Views
