Landing Guangzhou’s Defense Achievement: Only 5-Year Sentence Secured In A Major VAT Special Invoice Fraud Case

Landing Guangzhou, January 15, 2024, 18:00 Guangdong

The Landing Guangzhou chief criminal team, in conjunction with the Zhejiang criminal team, represented the controlling shareholder of a leading internet company in a developed prefecture-level city. The case involved charges of issuing over one billion yuan in fraudulent value-added tax invoices. During the review and prosecution stage, despite a series of proactive defense efforts, the prosecution insisted on a 12-year prison sentence. The Landing Guangzhou chief criminal team argued their case forcefully at the court hearing, securing the support of the collegial panel and engaging in emergency negotiations with the prosecution, which agreed in principle to reduce the sentence. However, after four hearings, the prosecution still insisted on a 7-year sentence. The defense maintained its position, arguing for a lighter sentence. Through arguments on the nature of the case, evidence, and procedures, they ultimately persuaded the court to accept a 5-year sentence, achieving a successful defense outcome!

Defense Process

In mid-2022, the actual controller of a leading internet company in a developed prefecture-level city on the eastern coast was arrested on suspicion of issuing false value-added tax invoices. His family urgently entrusted the Landi Guangzhou team with the case. The case involved allegations of issuing false invoices exceeding one billion yuan, directly handling over 200 million yuan, and issuing false taxes exceeding 20 million yuan. The amount of falsely issued taxes was enormous, far exceeding the standard for such a large amount, and he was highly likely to face a sentence of more than ten years imprisonment or life imprisonment.

After accepting the commission, Director Ye Zhusheng and Attorney Yang Ke of the Landing Guangzhou Criminal Team, together with lawyers from Landing's local branch, quickly launched an investigation. They met with the client more than ten times across provinces, organized a comprehensive analysis of the case facts, formulated twelve main defense strategies, conducted a thorough search of similar cases, and organized dozens of legal research trips to address difficult points. Ultimately, they produced a defense opinion document of over 100,000 words, making important judgments on multiple levels, drafting a legal opinion of over 100 pages, and actively communicating with the case handlers in other locations multiple times. Their legal opinions and professional capabilities were highly recognized by the case handlers.

During this process, the Guangzhou-based criminal investigation team of Director Landing actively explored various avenues, including non-prosecution for corporate compliance, lenient treatment for private entrepreneurs, and reporting on the business operations of private enterprises, to promote a lenient approach to the case and expedite the release of the actual controller on bail. The case underwent multiple remands for supplementary investigation, multiple supplementary prosecutions, and several court hearings. The handling prosecutor remained steadfast, insisting on a 12-year prison sentence recommendation after the case was transferred to the court for prosecution.

During the trial, the Guangzhou-based criminal investigation team of Director Landing submitted detailed defense arguments to the court in advance, pointing out numerous problems in the case. The judge was extremely cautious before the trial, holding a pre-trial conference to discuss the controversial issues regarding the nature of the crime, evidence, and procedure. Ultimately, under the court's supervision, the prosecution agreed to propose a significantly reduced sentence. Several defense arguments and facts presented by the defense lawyers were adopted by the court, including the non-criminality of some false invoicing activities, the calculation of false tax amounts, the calculation of national tax losses, the division of tax payment obligations, corporate crime, surrender, plea bargaining, tax payment, and lenient treatment. These defense achievements were also reflected in the first-instance criminal judgment. After four court hearings, the prosecution insisted on a sentencing recommendation of seven years imprisonment. Ultimately, the court of first instance adopted the defense's argument for a five-year prison sentence, suggested in court that the prosecution adjust its sentencing recommendation, and finally rendered a verdict of five years imprisonment.