Identification And Prevention Advice Of The Crime Of Falsely Making Out Specialized VAT Invoices

China tax system has reformed since 1994. The VAT is one of the most important taxes in this system and plays an important role in Chinese economy. Because the VAT invoices are ad valorem tax and they can be deducted from the output tax, the VAT invoices are more valuable than currency. For this reason, the crime of falsely making out specialized VAT invoices becomes a frequent phenomenon. The crimes of falsely making out special VAT invoices happens trans-provincially, are not easy to find, have multiple forms and involve many members, which bring great many difficulties for judicial organs to investigate and identify this crime. Not only will it bring the loss of national tax, but also will breaks the management of VAT invoices system.Application of VAT system in China has a short history and the related legislation is imperfect. The problems about the crime of falsely making out special VAT invoices have not formed a unified understanding, which makes the legal workers confused in practice. It also gives criminals an opportunity to commit this crime. In order to call for the society’s attention of the problems of the crime of falsely making out special VAT invoices, this paper aims at analyzing and discussing the the difficult problems of it. At the same time, it also put up with some suggestions about the management and development of this tax system. This article consists of four parts:The first part is the introduction of the concept of the VAT, the development process of VAT, the present situation of VAT and the negative effects brought by the crime of falsely making out special VAT invoices. It indicates the necessity and urgency to forbid the crime of falsely making out special VAT invoices.The second part mainly introduces the crime constitution of this crime, such as the objective and subjective aspects, and discusses some controversial questions. This part analyzes this crime profoundly and comprehensively.The third part describes and demonstrates the disputes of the crime of falsely making out special VAT invoices, including the dispute of the taxpayer acquired the VAT invoices which are falsely making out in good faith, the judicial handing of one enterprise making out special VAT invoices instead of the one which has no rights to do and falsely making out special VAT invoices between two enterprises which want to use this method to forge their enhancing business performance, the dispute of the identification of the amount of this crime, the dispute of making a distinction between this crime and the crime of tax evasion.The fourth part is about the suggestions of improving the special invoices for VAT system in two aspects. One is the status of implementation of the tax department and improvement suggestions. The other is the operation of tax reform in BT replaced with VAT to prevent falsely making out special invoices for VAT and some suggestion for perfecting the VAT chain.