The Information Office of the State Council held a press conference. A relevant person in charge of the State Administration of Taxation explained that since this year, the tax department has stepped up efforts to investigate illegal invoicing enterprises and shell enterprises to rectify the tax-related problems of the “invoicing economy.” According to reports, the “invoicing economy” is a prominent form of illegal investment promotion and “internal rolling” competition, undermining the economic tax order and damaging the level playing field. The tax department monitors and warns “shell” enterprises with clearly abnormal invoicing and basically no taxes, no profits, no employees, no locations, and cluster registrations. In the first half of the year, a total of 1.29 million “shell” enterprises were investigated and confirmed, nearly 700,000 households were cancelled, and regulatory guidance measures were taken against about 600,000 other households, which promoted more realistic data and better quality of business entities. Hu Jinglin, director of the State Administration of Taxation, said that in the first half of this year, the invoicing amount of enterprises detected to have “billing economy” problems dropped 37.7% over the same period last year. By verifying “idle billing” and “revolving billing” enterprises, the reduction of abnormal “ticketing” companies has had an effective deterrent effect on acts such as some enterprises using self-made “bills of lading” to circulate invoices between related companies, creating huge revenue chaos out of emptiness, and the fact that false trade is carried out in the name of bulk trade.

The Information Office of the State Council held a press conference. A relevant person in charge of the State Administration of Taxation explained that since this year, the tax department has stepped up efforts to investigate illegal invoicing enterprises and shell enterprises to rectify the tax-related problems of the “invoicing economy.” According to reports, the “invoicing economy” is a prominent form of illegal investment promotion and “internal rolling” competition, undermining the economic tax order and damaging the level playing field. The tax department monitors and warns “shell” enterprises with clearly abnormal invoicing and basically no taxes, no profits, no employees, no locations, and cluster registrations. In the first half of the year, a total of 1.29 million “shell” enterprises were investigated and confirmed, nearly 700,000 households were cancelled, and regulatory guidance measures were taken against about 600,000 other households, which promoted more realistic data and better quality of business entities. Hu Jinglin, director of the State Administration of Taxation, said that in the first half of this year, the invoicing amount of enterprises detected to have “billing economy” problems dropped 37.7% over the same period last year. By verifying “idle billing” and “revolving billing” enterprises, the reduction of abnormal “ticketing” companies has had an effective deterrent effect on acts such as some enterprises using self-made “bills of lading” to circulate invoices between related companies, creating huge revenue chaos out of emptiness, and the fact that false trade is carried out in the name of bulk trade.