470 million yuan in export VAT refund scam: Chinese gold scam gang uncovered
The criminal gang used the gold trade as a front for issuing false special invoices to trick the government into reimbursing VAT on exports. The Mianyang Municipal Public Security Bureau of Sichuan Province said the bureau recently cracked down on an interprovincial economic crime gang that scammed export tax rebates and faked special invoices.
The crime took several years and began at the end of 2020. At that time, Guobao, located in Mianyang City, purchased a large amount of gold, claiming that it was used to manufacture converters for export, and repeatedly claimed export tax rebates, which caused alarm among the tax authorities, who considered that the production and operation of the company grossly insane, and they are probably cheating with export tax rebates.
After receiving a response from the tax authorities, the Economic Investigation Division of the Mianyang Public Security Bureau immediately organized a team to check the evidence. The police found that Guobao's production line was simple and the quality control was not strict, it should not have the conditions for mass production of qualified products, but the company purchased a total of 41 kg of gold from Shenzhen three times based on production needs and received a special value added tax invoice.
The Mianyang police went to Shenzhen to investigate the flow of gold and found that after purchasing 41 kilograms of gold, Guobao did not transport the gold to Mianyang for production, but sold it at less than the purchase price per gram.
Through a thorough investigation, the actual controller of Guobao came to the attention of the police. The police followed the evidence and found that he had paid a "processing fee" to another Shenzhen process pigment company under the guise of buying "gold paste" and received a falsely discovered special VAT. The total amount of tax on the invoice is 3.8 million yuan.
After a thorough investigation, the police found out that the company purchased about 1 ton of gold on several occasions on the grounds that it needed to produce "gold paste and gold water-based paint." The company faked 900 special invoices for 101 Chinese enterprises worth 470 million yuan.
In 2022, the prosecution authorities will prosecute all the defendants in the case, and this extremely large case of fraudulently obtaining export tax benefits and knowingly false issuing of special invoices will be fully disclosed.
Created: 25 May 2022