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Man Imprisoned for Value Added Tax Fraud
Zhang Guixi, the legal representative of a local firm in south China's Guangdong province, has been sentence for 12 years of jail term after being found guilty of value added tax fraud.

The sentence was handed down by the Intermediate People's Court of Shantou city in Guangdong province.

The charged stated that from July 1999 to June 2000, Zhang, using the names of 34 firms in the city, asked others to write 1,351 value added tax invoices involving more than 130 million yuan (US$15.7 million) for 11 manufacturing subsidiaries of Guiguang (Group) Co. Ltd., of Chaoyang city, despite the fact that no actual trade ever took place.

By doing so, Zhang cheated the state out of over 20 million yuan (some US$2.4 million) in export tax rebates though his company did not pay a penny in taxes, said the charge.

(Xinhua News Agency December 7, 2002)

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