On 12 October 2026, the Ma’anshan Municipal Tax Bureau announced the conclusion of its investigation into Hanshan Hongyu Accounting Firm (General Partnership) and its controlling partner Zhang Dahong. The firm systematically fabricated procurement contracts and inflated raw material costs for 17 client enterprises over a three-year period (2023-2025), resulting in corporate income tax underpayment of RMB 28.6 million and VAT underpayment of RMB 12.4 million. The case was prosecuted under the Tax Collection and Administration Law Articles 63 and 64.
Key Takeaways
- Joint and Several Liability: Both the firm and the individual partner were fined 3 times the illegal gains (RMB 4.2 million) and referred to the Ministry of Finance for CPA license revocation proceedings.
- Client Enterprises Also Sanctioned: The 17 client companies were ordered to pay back taxes, late fees (0.05% daily), and fines of 0.5-1 times the underpaid amount, emphasizing that outsourcing compliance does not absolve taxpayer responsibility.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement