Qilu Pharmaceutical is involved in a 1.3 billion yuan false invoicing case, and the balance of funds of hundreds of millions of yuan is becoming a mystery.

Blue Whale News, February 27 (Reporter Tu Jun)Recently, Qilu Pharmaceutical, the leader in generic drugs, was mired in a false invoicing case worth 1.351 billion yuan.

A criminal judgment (2024) Wan 0181 Xing Chu No. 327 from the People’s Court of Chaohu City, Anhui Province attracted widespread attention on the Internet. On February 27, Blue Whale Finance was no longer able to find the case on China Judgment Document Network. However, there is still a judgment for the case in the third-party case database.

According to the “Criminal Judgment of the First Instance of Zhao’s False Issuance of Special Value-Added Tax Invoice to Defraud Export Refunds and Tax Deduction Invoice”, the public prosecution agency charged: In August 2018, Feng Lixin (has been ruled) used Qilu Pharmaceutical Co., Ltd.(hereinafter referred to as Qilu Pharmaceutical Co., Ltd.) to use the need to withdraw funds for off-book expenditures and other purposes to register and establish Chaohu Medical System Tianxia Health Consulting Co., Ltd. in Chaohu City (hereinafter referred to as Chaohu Medical System Company, Tianyan Information shows that the company is currently in a revoked status and not cancelled status) and reached a cooperation agreement with Qilu Pharmaceutical Company.

Defendant Zhao joined Medical System Tianxia (Beijing) Network Technology Co., Ltd. in March 2019, and later served as the director of the operations department in December 2019, responsible for managing and guiding the operations department of Chaohu Medical System Company. Qilu Pharmaceutical Company provided the identity information of more than 300 employees in accordance with the arrangement of Chaohu Medical System Company. With the assistance of Chaohu Medical System Company, Qilu Pharmaceutical Company established a number of individual industrial and commercial households and opened bank accounts in Chaohu City. The business licenses and official seals of individual industrial and commercial households are all kept and used by Chaohu Medical System Company.

After that, Qilu Pharmaceutical Company sent billing information corresponding to the fund needs, fund return accounts, etc. to the Operation Department of Chaohu Medical System Company by email on a monthly basis based on its own off-account fund needs without accepting any drug promotion services and drug transactions. The Operation Department uploaded the information to the information platform of Chaohu Medical System Company to generate a settlement. Chaohu Medical System Company issued equal value-added tax special invoices according to the settlement sheet to Qilu Pharmaceutical Company and its affiliated Shandong Wanrun Pharmaceutical Co., Ltd., Hefei Yongji Pharmaceutical Co., Ltd., Shanghai McKasen Pharmaceutical Co., Ltd., Changchun Xinsheng Pharmaceutical Co., Ltd., etc. company.

At the same time, Chaohu Medical System Company successively entrusted Chaohu Xinyi Financial Management Co., Ltd. and Chaohu Shengde Financial Management Co., Ltd. to issue special value-added tax invoices to Chaohu Medical System Company at 91% of the settlement amount on behalf of the above-mentioned individual industrial and commercial households.

After receiving the invoice, Qilu Pharmaceutical and its affiliated companies transfer the money to Chaohu Medical System Company according to the amount of the statement. Chaohu Medical System Company then transfers the money to the bank accounts of individual industrial and commercial households actually controlled by the provincial divisions of Qilu Pharmaceutical Company according to 91% of the amount of the statement. Complete the return of funds.

From December 2019 to September 2021, Chaohu Medical System Company falsely issued 13925 value-added tax invoices to Qilu Pharmaceutical Company and its affiliated companies without real transactions, with a total amount of RMB 1.2749 billion (the same below). The total tax amount exceeded 76.47 million yuan, and the total price tax exceeded 1.351 billion yuan. Defendant Zhao illegally made more than 100,000 yuan.

On September 21, 2022, the defendant Zhao was notified by the police of Chaohu Municipal Public Security Bureau by telephone to the Economic Crime Investigation Brigade of the Bureau, and then withdrew his illegal income of 100,000 yuan on June 27, 2024.

Although Zhao’s illegal income is only 100,000 yuan, the difference is only 9%. Where does the hundreds of millions of yuan go? The verdict did not state it.

Some industry insiders told Blue Whale Finance that although the verdict did not specify who the 9% was ultimately awarded, it at least remained at Chaohu Medical System Company in terms of text. If the money was ultimately paid to the company by the other company as remuneration, then the money was the proceeds of crime in accordance with the law and should be confiscated by the court in accordance with the law. However, what the court confiscated was Zhao’s illegal income of 100,000 yuan, which was obviously the amount obtained by the company. 9% of the amount does not match. Therefore, the first-instance judgment did not dig deep into the exact amount of this 9% of the money and which of it was the proceeds of crime? Therefore, this judgment will bring a lot of doubts to outsiders in terms of content.

“The reason why these companies operate such accounts is usually to avoid tax. As for whether they will divide the company’s property privately, the court of first instance in this case did not specify. rdquo; Another industry insider told Blue Whale Finance.

According to public information, Qilu Pharmaceutical is a leading enterprise in the domestic pharmaceutical industry, ranking among the top ten pharmaceutical industry in China. It was established in 1981. According to a manuscript published in Dazhong Daily in 2024, the taxes paid in four years were 12.37 billion yuan; the group has 38,000 employees.

However, this is not the first time Qilu Pharmaceutical has had tax problems. In January last year, the Second Inspection Bureau of the Luoyang City Taxation Bureau of the State Administration of Taxation issued a penalty decision on Henan Qihe Pharmaceutical Co., Ltd., a 100%-owned subsidiary of Qilu Pharmaceutical (Punishment Document No.: Luo Shui Er Ji [2024] No. 2). The penalty decision showed that Henan Qihe Pharmaceutical Co., Ltd. was involved in illegal invoices in its daily business activities. The tax bureau supervision department determined that the company had evaded taxes in value-added tax, urban maintenance and construction tax, corporate income tax, etc., and the final amount of tax evasion was as high as 22.8973 million yuan. While recovering the amount of tax evasion, the tax supervision department also imposed a fine on Henan Qihe Pharmaceutical Co., Ltd. that is, a fine of 22.8973 million yuan.