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China’s tax office uncovers fraud at bankrupt shipyard Mingde

China’s tax office uncovers fraud at bankrupt shipyard Mingde
Four employees at bankrupt Nantong Mingde Heavy Industry have been charged for falsifying accounts to keep an export tax rebate granted to a shipbuilding contract that was cancelled, according to China’s State Administration of Taxation.

The State Administration of Taxation uncovered the fraud that involved RMB1.85m ($273,120) worth of export tax rebate, and the case has been handed over to the public prosecutor’s office.

Mingde had clinched a deal to build a bulk carrier for an unnamed Greek shipowner and obtained export tax rebate for the vessel to be sold to the foreign buyer. When the shipbuilding contract was terminated by the Greek owner, Mingde continued to declare false information in order to keep the tax rebate.

The taxation office said a main culprit Ji Moumou and three others were arrested and detained.

The local media reported that the minimum sentence for the crime would be five years imprisonment.

The Chinese shipbuilder Mingde declared bankrupt in July 2015 after it failed in its restructuring plan.

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