The Case Study And Reflection On Invoice Crime

With the development of economy, invoice crime has become popular in the society. In recent years, there has been an increase in the number of invoice crime and in the scales of the crime with some new features such as group work, professional work and intelligent work. Interestingly, it seems the more to prohibit invoice crime, the more it develops. To solve the problem of invoice crime, this paper presents original suggestions on invoice crime based on precautions and fights against invoice crime of Changchun Police Office to provide legal ground on the issue. The first part covers the concepts and meanings of invoice and invoice crime. Four components and major forms of invoice crime are illustrated to provide theoretical bases on this paper.First, it introduces the concepts and meanings of the invoice. It is generally believed that an invoice is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services. Therefore, invoice is a legal document, an original document for accounting and an important part for tax auditing. Good management of invoice is of significant importance as shown in the following: firstly, it is good for companies to audit accounts correctly; secondly, it is convenient for the government departments to supervise on taxes and reinforce the law; thirdly it is helpful to protect legal trades and be against illegal ones; fourthly, it is useful to have a control on tax and stop corruption.In addition, this paper talks about the concepts of invoice crime from the legal perspective as well. And it analyzes future laws and regulations on the invoice in China including the administrative regulations and criminal legislation on taxes. Invoice crime is a general term for a variety of tax crime in which added value invoice, refund invoice or other invoice are used for scam, including illegal invoice manufacturing, fake invoice, illegal invoice purchases and sales that are against the law.Furthermore, four components of invoice crime are analyzed deeply to provide legal basis for the following parts. The first component is the object of invoice crime. Invoice crime violates double objects, namely administrative system of invoice and tax system. In China, based on"Management Law on Tax", invoice should not be manufactured by any enterprise except those specific ones appointed by tax supervision departments of provincial governments. The second component is objectivity. Objectively, invoice crime takes the form of illegal manufacturing and sales that violates the law and regulations on invoice. The third component is the subject. Subjects of invoice crime are general subjects while enterprises can be subjects. Double punishment is conducted for enterprise invoice crime. The fourth component is subjectivity. Invoice crime is conducted subjectively and directly to be against invoice management laws and regulations and does harm to the society. It points out that anyone who conducts the above on purpose is supposed to be violating the law whatever motivation he has and whether it is profitable or not. If the behavior is to show the skill and for personal collection, it can be viewed as"Obvious behavior but light harm"and it is not crime.This article also cited several of the invoice form of crime and more detailed description.Part two discusses the practical work of Changchun Police office in the fight against invoice crime in the year of 2010. From January to August, 38 legal cases have been prosecuted and 33 of them have been successfully solved. Altogether 62 suspects have been arrested and 136.788 pieces of various kinds of fake invoice have been confiscated. Besides, 9 illegal groups of fake invoice trading have been controlled and 28 illegal places of fake invoice have been eliminated and 52000 pieces of fake invoice publicity cards have been taken away plus 258 fake stamps.Part three is a reflection on the practical work of the year 2010 in part two and further analysis is on the main characteristics and causes of invoice crime.First, the paper shows main features of invoice crime in Changchun city. Invoice crime covers a large scale and is combined with other crime at the same time, doing great harm to the society. The major source of fake invoice in Changchun is input from other provinces. Invoice crime tends to be more intelligent and original recently and contains anti-detective feature. Invoice crime develops into a stage of group work and internet work. Fake invoice is in a variety of forms and circulates in a larger scale compared with the past.Moreover, causes of invoice crime are analyzed in the following. It is caused by temptation of profits and encouraged by great need. Profit is the direct motive of invoice crime. Public attitude to invoice crime is tolerable. However, the main function of invoice is to realize auditing of tax and invoice should not be circulated. Apparently manufacturing and selling fake invoice has nothing to do with any victim not like fake currency or fake medicine which do harm to people directly. So the public is not clear of the potential harm of illegal manufacturing and selling of fake invoice. And some believe that fake invoice does not get individual interest involved and can bring extra financial goodness to the enterprise. Even some invoice crime is under sympathy of the public, thus it is spreading quickly. The punishment on invoice crime is not severe enough to stop invoice crime and problems exist in supervision in related industry. There is still a lot to do to give publicity to invoice crime.Part four is the solutions and suggestions to invoice crime. This paper gives suggestions on how to fight against invoice crime from both the micro and macro level to help future precautions and fights against the crime.From the micro level, the following can be improved. One is to make good use of detective techniques to deal with invoice crime. Another is to reinforce the publicity to show the harm of fake invoice to create a new atmosphere against invoice crime. Furthermore, the fight should be focused on group work and net work of invoice crime to diminish the room of its development. Besides, it is advisable to make all parties cooperate and participate in the campaign of remove invoice crime. Finally it is critical to have regular supervision and take serious initiatives to win the war against invoice crime.From the macro level, the fundamental solution to the problem is to improve legislation on invoice crime. First, scientific criminal policies should be set. Legislation on invoice crime in criminal law is not supposed to be changed in accordance with specific administrative regulations on tax,and it is not advisable to intensify punishment without further investigation. Instead, it is necessary to set limit on regulations of invoice crime but expand regulations on tax invoice or tax fraud crimes in the criminal law. To be specific, the behavior of false use of invoice to avoid tax should be regulated into tax evasion and the behavior of false invoice for refund should be regulated into refund scam. Other criminal acts of simple violation of invoice regulation should be punished according to the type and level in order to change the tendency of severe punishment. Also relationship between legislation of criminal law and administrative regulations should be regulated reasonably. Administrative legislation should be reinforced to legally control the behavior that is currently referred to as simply violating the invoice management. Second, emphasis should be laid on legislation technique to smooth the relationship between current regulations and rules. The standard of legislation of invoice crime should be in consistency. At present, there are two options. One is to make legislation on the function of invoice, and the other is on method. In recent years, some scholar has proposed to legislate based on behavior. The author agrees to legislate based on the function of invoice. Since invoice management is based on the function of invoice to divide invoice into general invoice and specific invoice, it is more scientific to legislate on invoice crime accordingly and it meets the economic principle. As far as invoice crime is concerned, it does harm to national tax. To make legislation on functions of invoice shows that different types of invoice crime affect the society differently due to the fact that there is great difference in the social function of invoices.