Shenzhen jewelry first “fall” : illegal opening nearly 200 million yuan invoice was punished, will constitute a criminal crime?

2022-05-24 0 By

Chinatimes.net.cn reporter Shuai Kecong Chen Feng in Beijing reported that Shenzhen’s first jewelry stock Idir (002740.sZ) has faced an existential crisis in the 8th year after its listing.A wholly-owned subsidiary of Aidier received an administrative penalty for issuing an invoice of nearly 200 million yuan in violation of regulations after it suffered huge losses due to infighting among major shareholders.From this, caused the supervision layer to its whether financial fraud doubts.The China Times did not respond to several attempts to contact Aidier for comment.Lian Dayou, director of Beijing Jingben Law Firm, told reporters that according to the Criminal Law, those who falsified a large amount of tax or had other particularly serious circumstances could be sentenced to more than 10 years in prison or life imprisonment.However, from the existing public information, it is not clear whether the case of issuing invoices in violation of millennium Jewelry will constitute the crime of falsely issuing VAT invoices.Jiangsu Millennium Jewelry Co., LTD. (hereinafter referred to as “Millennium Jewelry”), a wholly-owned subsidiary of The company, has received a written decision on Tax Administrative Punishment issued by the Third Inspection Bureau of Nanjing Taxation Bureau of the State Administration of Taxation, according to a notice issued by the company on February 8.Millennium Jewelry issued an invoice totaling 194 million yuan to two new energy companies in Jiangxi Province in violation of the relevant provisions of The Invoice Management Measures, with tax amount of 25.2253 million yuan and illegal profit of 262,800 yuan. The third Inspection Bureau of Nanjing Taxation Bureau of the State Administration of Taxation confiscated its illegal income of 262,800 yuan and imposed a fine of 500,000 yuan.Aidier is a jewelry brand enterprise integrating jewelry product design and development, production and processing, and brand chain.Millennium jewelry issued invoices because of violations, it is hard to understand.In the announcement, Aidier only said that the tax administrative penalty did not touch on the situation of major illegal forced delisting, which will not have a significant adverse impact on the company’s continued operation. The company will earnestly learn from this lesson, strengthen the control of subsidiaries, and strictly abide by the relevant laws and regulations.But the specific reason for the illegal invoicing and whether it involves criminal responsibility, Aidier did not disclose.On February 9, The Reporter of China Times contacted the secretary of the board of Directors and the representative of securities affairs of Aidier repeatedly by phone and email, but could not get a response.Reporters consulted nanjing tax department website, also failed to find the relevant punishment documents.Lawyer Lian Dayou, director of Beijing Jingben Law firm, told China Times that the above announcement did not reveal the specific terms of millennium Jewelry’s violation of the Invoice Management Measures.However, combined with the amount of invoice and the tax calculation involved, should be falsely opened value-added tax invoice.According to open amount namely and profit, because this tax bureau authority will profit confiscate, and maximum penalty 500 thousand yuan.In accordance with the provisions of Article 37 of the Law on the Administration of Tax Collection, the tax authorities shall confiscate the illegal income derived from falsely issuing invoices;Anyone who overwrites less than 10,000 yuan may also be fined less than 50,000 yuan;If the false amount exceeds 10,000 yuan, a fine of not less than 50,000 yuan but not more than 500,000 yuan shall be imposed;If the case constitutes a crime, criminal responsibility shall be investigated according to law.Will it constitute a criminal offence?Lian Dayou told reporters that, according to the existing public information, millennium jewelry illegal invoice case will constitute a false VAT special invoice crime can not be determined.According to even greatly, the Supreme People’s Court of falsely making out special invoices for value-added tax conviction sentencing standards related issues notice “(method [2018] 226 date) regulation, if the amount involved in more than fifty thousand yuan, with crime of falsely making out special invoices for VAT shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and concurrently imposed a fine of not more than twenty thousand yuan and two hundred thousand yuan;If the amount of tax falsely charged is more than 500,000 yuan, the amount of the crime shall be deemed to be relatively large;Where the amount of tax falsely withheld is more than 2.5 million yuan, the amount shall be deemed to be huge.However, for ordinary VAT invoices, the standard for criminal prosecution is based on Article 2 of the Supplementary Provisions of the Supreme People’s Procuratorate and the Ministry of Public Security on The Standards for Criminal Cases Under the Jurisdiction of public Security Organs (Gongtong Zi [2011] No. 47). If one of the following cases is suspected, the case shall be prosecuted:(1) making out more than one hundred false invoices or making out an accumulative amount of more than 400,000 yuan;(2) having been punished twice or more in the past five years for making out false invoices even though the amount is not up to the above-mentioned standards;(3) other serious circumstances.Lian Dayou said that because falsely issuing VAT invoices infringes on the country’s tax system and interests, whether it constitutes a criminal violation depends on whether a special VAT deduction has been carried out and whether it has caused the loss of national tax revenue.If, in violation of the provisions of Article 205 of the Criminal Law, a unit commits the crime as prescribed in issuing special invoices for VALUE-ADDED tax, it shall be fined, and the persons who are directly in charge and the other persons who are directly responsible for the crime shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention;If the amount of tax falsely evaded is relatively large, or if there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than 10 years;If the amount of tax falsely withheld is huge, or if there are other especially serious circumstances involved, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment.In terms of money alone, the Millennium Jewels case has already met the criteria of huge amounts.Since January 2015, Aidier went public as the first jewelry stock in Shenzhen. In just over seven years, the jewelry company has experienced many changes in personnel, performance and stock price.Public information shows that the history of Aidier can be traced back to the 1990s, was born in 1968 by Su Riming founded.Su Jiming worked in a jewelry company in his early years, and later founded the small processing factory of Aidier jewelry, leading the company step by step to become bigger and stronger.After the listing, under the leadership of Suming, Aideel has carried out capital operation for many times: since 2017, it has acquired the equity of Shenzhen Dibang Jewelry Co., LTD., Chengdu Shumao Diamond Co., LTD., Millennium Jewelry and other companies.However, the cost of nearly 2 billion yuan acquisition of the three targets failed to complete the performance of the bet, Aidier also fell into a huge loss quagmire.In the past three years, Aidier net profit accumulated losses of more than 2.4 billion yuan.By the close of Trading on Feb. 9, Aidier’s shares had closed at 4.29 yuan per share, giving it a market capitalization of just 1.9 billion yuan.Compared with the peak market value of more than 5 billion yuan since the listing, The market value of Aidier has lost more than 60%.More striking is the infighting between Su Jiming, founder and largest shareholder, and Li Yong, chairman and second largest shareholder.In April 2020, under the pressure of other major shareholders, Su Jiming resigned as chairman of the board, and Li Yong, founder of Millennium Jewelry, became the latest leader of The company.After being forced out, Su Turned to become a whistle-blower, accusing Millennium Jewelry, which Li Yong served as chairman and legal person, of falsely issuing 470 million yuan of value-added tax invoices in 2019, which led to the current millennium Jewelry penalty incident.Troubled Aidier’s future hangs in the balance, and the top priority is how to deal with regulatory questions.On February 8, on the day of the disclosure of illegal invoice issuance of Millennium Jewelry, the Shenzhen Stock Exchange urgently issued a letter of concern, requiring the company to disclose the specific situation of tax-related cases and explain whether there is financial fraud in fictitious business.Responsible Editor: Ma Xiaochao Editor: Xia Shen Tea