Police cracks tax scam involving nearly 100 b yuan

BEIJING -- Chinese police cracked a tax scam case involving nearly 100 billion yuan ($14.6 billion) and 25 criminal gangs, the Ministry of Public Security said Wednesday.

Police in five provincial-level regions including Shanghai and the southern province of Guangdong arrested 304 suspects and destroyed 53 dens that had forged a large number of value-added tax invoices.

Among them, two gangs headed by two principal suspects, surnamed Yang and Chen, had purchased and sold over 2,600 zombie companies since February this year to aid in the scam.

This case is one of the largest to be cracked by Chinese police in recent years, in terms of the amount of money and number of suspects.

Those who sell goods, property or services should generally pay a value-added tax, usually at a rate of 11 or 17 percent, according to relevant regulations.

The case is under further investigation, the ministry said.