Three persons in charge of a pharmaceutical company were sentenced to issue false invoices, and several pharmaceutical companies were founded to establish a Chinese herbal medicine company, and only issue false invoices for false invoices
A criminal ruling on pharmaceutical companies was released on the Internet. According to the second-instance criminal ruling, a staff member, accountant, and legal representative of a Chinese herbal medicine company were sentenced for suspected false issuance of special value-added tax invoices. The ruling disclosed the illegal operation of the above-mentioned pharmaceutical companies to issue false invoices - in order to obtain illegal benefits, two fugitives acquired a Chinese herbal medicine company, and issued false value-added tax invoices to many companies by fictitiously purchasing large amounts of Chinese herbal medicine raw materials, as well as Chinese herbal medicine tablets and Chinese herbal tea purchase and sales business. Since then, based on the existing illegal acts, the relevant illegal personnel have registered the branch of Chinese herbal medicines and continued to issue a large number of false invoices and receive and issue false VAT special invoices.
After the above two decoction companies were sold and replaced, the relevant defendants continued to engage in illegal and criminal activities of issuing false invoices. Among them, Zhu A and Zhu Jing were responsible for contacting upstream and downstream enterprises in other provinces and cities, Dong was responsible for the company's financial work, and Yang was entrusted by Yin to be responsible for part of the approval and management work. It was verified by the court that Zhu Moujing, an employee of the two Chinese herbal medicine companies, an accountant Dong Moumou, and the legal representative Yang Moumou used the company's name to issue a total of 6,964 agricultural and sideline products purchase invoices, with a total amount of over 100 million yuan.
It is worth noting that the above-mentioned illegal invoices are engaged in the illegal and false invoice issuance activities directly involved 9 pharmaceutical companies, spanning four provinces, namely Shaanxi, Gansu, Anhui and Yunnan. Based on the above facts, the court held that the three defendants Zhu Moujing, Dong Moumou, and Yang Moumou, colluded with others to violate the national tax collection and management regulations and issued false information for others and let others issue false information for themselves, causing loss of state taxes and the amount was huge. Their behavior has violated the criminal law and constituted the crime of issuing false information for VAT and should be punished.
In the end, the three reporters were sentenced to for about 23 years in prison and fined. Regarding the common reasons for pharmaceutical companies to issue false invoices, Wang Zhijian, a health lawyer and compliance lawyer at Beijing Zhonglun Wende Pharmaceutical, pointed out that after the implementation of the "two-invoice system", the company's agents have become service providers, from CSO to CSP, and the business model has undergone a fundamental change. However, the service provider's ideological understanding has not kept up, and it only follows the service contract and evidence templates. Although there may be real marketing behavior, since the evidence and real behavior are two different skins, it still does not have authenticity and will naturally be considered false.
Pharmaceutical companies issue false invoices and face multiple serious consequences
It is worth noting that as relevant departments increase their inspections on illegal behaviors such as false invoices, the financial and tax compliance risks faced by pharmaceutical companies are also increasing significantly.
htmlOn April 12, the Ministry of Finance issued an announcement on quality inspection of accounting information, mentioned the problem of false invoices in some pharmaceutical companies being investigated - "First, use false invoices and notes to embezzle funds for external use; second, fabricate business matters or use pharmaceutical promotion companies to embezzle funds; third, other accounting issues such as irregular book settings." Looking back at the scope of fiscal and tax inspections in 2019, it includes sales expenses of pharmaceutical companies, invoice flow, authenticity of revenue, authenticity of costs, salary payments of marketers, and sales rebate of for medical staff, etc. Pharmaceutical companies’ invoices are undoubtedly important evidence that relevant departments cannot avoid when checking tax issues, account issues, and cost issues. Wang Zhijian said that pharmaceutical companies may face administrative penalties and criminal liability for filing invoices.
Administrative Penalty: According to Article 93 of the "Hypermarks for Implementation of the Tax Collection and Administration Law of the People's Republic of China", if a taxpayer and the withholding agent illegally provide bank accounts, invoices, certificates or other conveniences to taxpayers and withholding agents , resulting in failure to pay or underpay taxes or defrauding state export tax refunds, the tax authorities may impose a fine of less than 1 times the unpaid, underpayment or defrauded taxes, in addition to confiscating their illegal gains.
Criminal liability: It may constitute the crime of issuing a special value-added tax invoice or issuing a false invoice - among which, the crime of issuing a false invoice is mainly manifested in: (1) false issuing a false invoice for others; (2) false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false issuing a false is If
constitutes the crime of issuing a special value-added tax invoice in false, the unit shall be sentenced to a fine according to the relevant provisions of Article 205 of the Criminal Law of , and the directly responsible supervisors and other directly responsible persons shall be sentenced to fixed-term imprisonment of not more than three years or detention; if the amount of false tax is large or there are other serious circumstances, the sentence shall be sentenced to fixed-term imprisonment of not more than three years but not more than ten years; if the amount of false tax is huge or there are other particularly serious circumstances, the sentence shall be sentenced to fixed-term imprisonment of not more than ten years or life imprisonment. If a false invoice issuance shall be imposed according to Article 205 of the Criminal Law, if any false invoices other than those provided for in Article 205 of this Law, if the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not more than two years, detention or control, and a fine; if the circumstances are particularly serious, he shall be sentenced to fixed-term imprisonment of not more than two years but not more than seven years, and a fine. The regulatory situation of
has been further strengthened, and pharmaceutical companies need to return to their original intentions
It is worth noting that the credit evaluation system for the procurement and procurement of pharmaceutical prices on June 1 also stipulates that "in pharmaceutical purchase and sales, medical institutions at all levels and types, centralized procurement institutions and their staff will be given kickbacks or other improper benefits or obtained false value-added tax invoices (except for obtaining false value-added tax special invoices issued by falsely)" are all within the evaluation scope.
Under the above system, the behaviors of pharmaceutical companies such as false invoices will lead to inflated terminal drug prices, and will be included in the credit rating of pharmaceutical companies, just like drug rebates and commercial bribery. According to the provisions of this system, pharmaceutical companies whose hiccup 1 breach of trust rating is "specially serious", in addition to reminding and reminding of risks, they should limit or terminate the qualifications for all drug and medical consumables to be listed online, bidding or distribution of the company. Of course, the direct increase in supervision by relevant departments is an important pressure that cannot be ignored.
Regarding the financial compliance of pharmaceutical companies, the advice given by experts is to meet the four elements of compliance "authenticity, legality, relevance and traceability" and build a pharmaceutical marketing compliance system that can withstand inspection;
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