Money

Tax officer convicted of taking bribes appeals sentence

By Zhang Yan (China Daily)
Updated: 2010-03-22 07:55

The former vice-head of the Beijing Chongwen District Local Taxation Bureau who accepted 1 million yuan in bribes from a real estate developer, has appealed to the City's No 1 Intermediate Court for a lenient sentence.

Zhu Fengzhen, was charged with taking bribes totaling 1 million yuan ($146,412) and was sentenced to 13 years' imprisonment by Xuanwu District Court.

Guo Jingxia, press officer for City No 1 Intermediate Court, told METRO Zhu appealed for a lenient sentence, saying, "as a civil servant, I received huge bribes from others, I confessed my crime, but considering my confession and good attitude, and my old parents and child, I appeal for a lighter sentence."

In 2000, Beijing Fuhua Construction Development Co Ltd Company failed to pay its taxes on time and the tax department imposed an overdue payment fine of 2.2 million yuan in addition to the outstanding tax.

The head of Beijing Fuhua Construction Development Co Ltd, Wang Fusheng, who was on Forbes' 2007 China Rich List, approached Zhu for an exemption on the 2.2 million yuan overdue fine.

According to Guo, Wang told Zhu that Fuhua Construction was a big tax payer and had made large contributions to Dongcheng and the whole city, but the company had some current difficulties with funds. Wang asked her to consider an exemption for its overdue taxation payment.

The tax department adopted Zhu's suggestion and exempted Fuhua Construction the overdue fine.

However, according to China's tax regulations, Wang's company should not have been exempted from the overdue fine, Guo said

After the exemption, Wang began to pay Zhu back with various favors. In 2001, Wang's company paid 16,000 yuan to an agency applying for a visa for her son to study aboard, Guo said.

Then in 2003, Beijing Xinmei Real Estate Development Company, an affiliated company of Fuhua, developed a project with a 270 million yuan demolition fee, but the company couldn't list the huge demolition fee as a cost when accounting. Zhu suggested Wang hire her sister as the tax agent for Xinmei. Wang duly signed the contract with Zhu's sister and agreed to pay her 300,000 yuan annually as agent, Guo explained.

Then in 2004, Zhu borrowed one million yuan from Wang saying her sister's company was in financial trouble. Wang gave her the money as consultation fee, Guo said.

In 2008, Wang was detained by the police on charges of personal tax evasion and avoidance of company tax.