Tax authorities expose five export tax fraud cases involving over 40 million yuan

Source: CCTV News Client Date: September 28

Today, tax authorities publicly exposed a series of investigated export tax fraud cases, while also disclosing disciplinary and legal violations by tax officials found during the investigations, including misconduct in export tax refund management.

Case 1: Hunan Chenrui Communication Technology Co., Ltd.

Tax and public security authorities in Xiangxi Tujia and Miao Autonomous Prefecture, Hunan Province, jointly investigated Hunan Chenrui Communication Technology Co., Ltd. and its actual controller, Peng Yu, for colluding with a tax official to commit export tax fraud.

Findings: From 2020 to 2021, the company and Peng Yu colluded with Xiang Feng, a staff member of the Xiangxi High-tech Zone Tax Bureau, to fraudulently obtain export tax refunds totaling 3.3928 million yuan. Methods included signing fake sales contracts, issuing fraudulent special VAT invoices, and accepting fraudulent invoices from upstream enterprises.

Penalties and Legal Actions:

• In September 2025, tax authorities ordered the recovery of the fraudulently obtained refunds and suspended the company's export tax refund eligibility for two years and three months.
• The case has been transferred to public security authorities for further investigation.
• In October 2025, Xiang Feng was expelled from the Communist Party and dismissed from public office.
• In December 2025, Xiang Feng was sentenced to six years and six months in prison by the Luxi County People's Court for bribery, fraudulent issuance of invoices and export tax refunds, and other crimes. Illegal gains were also confiscated.

Case 2: Linyi Qunce International Trade Co., Ltd.

The First Inspection Bureau of the Linyi Municipal Tax Bureau, Shandong Province, investigated Linyi Qunce International Trade Co., Ltd. for falsely declaring product categories to obtain export tax refunds.

Findings: From 2022 to 2024, the company fraudulently obtained export tax refunds totaling 8.1175 million yuan by falsely declaring export product categories. Goods that were not eligible for refunds were fraudulently declared as goods eligible for a 13% refund rate.

Penalties and Legal Actions:

• In March 2026, tax authorities ordered the recovery of the fraudulently obtained refunds, imposed a fine of twice the amount, and suspended the company's export tax refund eligibility for two years.
• All involved tax funds have been fully recovered. The fine is currently being collected.
• The case has been transferred to public security authorities for further investigation.

Case 3: Henan Aima'ni Seasoning Food Co., Ltd.

The Inspection Bureau of the Hebi Municipal Tax Bureau, Henan Province, jointly with public security authorities, investigated Henan Aima'ni Seasoning Food Co., Ltd. for export tax fraud.

Findings: From 2020 to 2024, the company fraudulently obtained export tax refunds totaling 12.3095 million yuan through fraudulent agricultural product purchase invoices, fraudulent special VAT invoices, and fake foreign exchange settlements.

Penalties and Legal Actions:

• In May 2025, tax authorities ordered the recovery of the fraudulently obtained refunds and suspended the company's export tax refund eligibility for three years.
• In July 2026, the Hebi Intermediate People's Court sentenced the company's actual controller, Zhang Qing, to 13 years in prison and imposed a fine for the crime of export tax fraud.

Case 4: Hubei Ruiao Electronic Technology Co., Ltd.

The First Inspection Bureau of the Xiaogan Municipal Tax Bureau, Hubei Province, investigated Hubei Ruiao Electronic Technology Co., Ltd. for export tax fraud. Four tax officials were held accountable for misconduct in export tax refund management.

Findings: From 2020 to 2023, the company fraudulently obtained export tax refunds totaling 1.6965 million yuan through fraudulent special VAT invoices and fake purchase and sales contracts.

Penalties and Legal Actions:

• In October 2024, tax authorities ordered the recovery of the fraudulently obtained refunds, imposed a fine equal to the amount, and suspended the company's export tax refund eligibility for one and a half years.
• The case has been transferred to the procuratorate for review and prosecution.
• Following the "dual investigation" requirement, tax authorities held accountable officials with misconduct in export tax refund management:
• In April 2026, one tax official from Dawu County Tax Bureau received a serious warning within the Party.
• In November 2025, three tax officials from Dawu County Tax Bureau were held accountable for tax enforcement misconduct.

Case 5: Three Companies Controlled by Chen Hua

The Third Inspection Bureau of the Shenzhen Municipal Tax Bureau investigated three companies under the actual control of Chen Hua for export tax fraud.

Findings: From 2020 to 2024, three companies, including Shenzhen Jinsiyu Trading Co., Ltd., controlled by Chen Hua, fraudulently obtained export tax refunds totaling 22.7697 million yuan. Without actual goods transactions, they used fake export customs declarations, fake foreign exchange settlements, and fraudulent special VAT invoices from upstream enterprises.

Penalties and Legal Actions:

• In December 2024, tax authorities ordered the recovery of the fraudulently obtained refunds, imposed a fine equal to the amount, and suspended the companies' export tax refund eligibility for three years.
• Chen Hua and five other individuals have been indicted by the procuratorate and are awaiting trial in the People's Court.

Official Statement

A spokesperson from the State Taxation Administration stated that using fraudulent invoices, fake sales contracts, or false product declarations to obtain export tax refunds constitutes illegal conduct under the Tax Collection and Administration Law.

"Compliance is the foundation for the long-term healthy development of the foreign trade industry. Export enterprises should declare taxes truthfully and handle export tax refunds in accordance with the law."

The tax authorities will continue to optimize tax services while persistently investigating various tax-related violations, cracking down on malicious tax evasion such as export tax fraud, and safeguarding a fair and law-based tax environment.

(Reported by CCTV correspondent Li Sha)