China steps up fight against tax-related crimes

China has intensified its war on tax-related crimes, identifying over 7.38 million false VAT invoices and recovering 24.6 billion yuan ($3.6 billion) in lost export tax rebates over the past two years, as eight government departments vowed to forge a tougher, comprehensive enforcement mechanism.

The data was released during a national meeting in Beijing on Thursday, which brought together the State Taxation Administration and seven other national departments.

According to the latest figures from the STA, over the past two years, authorities have inspected more than 130,000 enterprises suspected of fraudulent invoicing nationwide. A total of 7.38 million VAT invoices were identified as falsely issued. Meanwhile, 4,850 companies were investigated for export tax rebate fraud, resulting in the recovery of 24.6 billion yuan in lost export tax revenues.

Building on these results, the eight departments stressed that future efforts will focus on a more integrated approach by establishing a full-chain, coordinated crackdown mechanism that spans administrative law enforcement to criminal justice, and deepening data sharing, information exchange, joint analysis, and cross-departmental coordinated operations.

The meeting also underscored the need to tackle a broader range of violations, with participants pledging to step up the fight against invoice fraud, export tax rebate scams, and fraudulent claims for tax preferences.