226 million yuan tax authorities investigate and deal with major cases of fraudulent invoicing, tax evasion, and compensation fraud

On April 21st, the State Administration of Taxation announced a major case of a network anchor management agency colluding with illegal intermediaries to falsely claim, evade taxes, and defraud compensation. After investigation, Guangdong Huizhou Gaofu Shuai Cultural Media Co., Ltd. falsely issued 1196 invoices through the establishment of shell enterprises, with a total value of 226 million yuan in taxes, and evaded personal income tax of more than 32 million yuan for more than 700 anchors. The company underpaid various taxes and fees totaling about 21 million yuan. Recently, the Inspection Bureau of Huizhou Taxation Bureau imposed penalties on the company in accordance with the law. This company is a network anchor management organization, commonly known as the “MCN organization”, which is an important intermediate link connecting live streaming platforms and network anchors. The company is suspected of evading its obligation to withhold and pay personal income tax, planning to assist its broadcasters in evading taxes, issuing false value-added tax special invoices, and colluding with illegal intermediaries to defraud local rewards and subsidies, seriously disrupting the order of tax collection and management and disrupting the fair competition market environment.

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