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Fake tax invoices find real growth

By Qian Yanfeng (China Daily)
Updated: 2009-05-22 07:57

The economic downturn might be knocking the wind out of many businesses, but one is sailing full steam ahead - the sale of illegal invoices.

Police say the desire by small- and medium-sized businesses to avoid paying taxes is the main impetus behind the growth of fake invoices.

In the past five months police have uncovered 90 cases in the city with more than 3.5 million invoices seized, the municipal public security bureau said.

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Most of the phony documents have been sold to business, especially small and medium ones, with tight cash flow and less awareness of taxation, said Yang Lieyi, deputy director of the economic crime investigation team under the public security bureau.

"Those who are found to have purchased fake invoices for tax evasion will be required to pay up," Yang said.

Police are working with the local tax administration on a citywide audit of companies' tax records to see if they have been involved in buying fake invoices.

"We hope enterprises and individuals alike will raise their awareness of the tax system and fulfill their responsibility as citizens."

Propelled by ever-growing demand, sales of fake invoices have become increasingly systematic and professional.

Gao Guan'gen, director of the Minhang branch of the economic crime investigation team, said more and more cross-region transactions have emerged due to the popularity of modern communication technology like mobile phones and the Internet.

His team recently arrested a 21-member gang whose business spanned two cities and who had produced more than 1 million illegal invoices.