More than 10 suspects were detained yesterday morning in Shanghai's largest value-added tax fraud case. More than 1 billion yuan (0 million) of fake VAT invoices were issued, police said.
The gang registered more than 10 “business consultation” and “company service” firms to provide the illegal service, police added, and profited about 10 million yuan as a result, causing a 200 million yuan tax loss to the government from January 2013 until now.
The suspects are alleged to have issued fake VAT invoices with an average kickback of 3 percent of the face value of the invoices to companies that sought to evade tax.
In a raid of six locations yesterday, police seized a number of invoice printers and seals.