20 billion false invoices were investigated for involvement in pharmaceutical companies

1

False invoice case involving the pharmaceutical industry

Recently, according to CCTV News, the Chongqing Municipal Public Security Bureau announced that it had cracked an extremely large case of false invoicing.

According to reports, the false invoicing group used a large amount of purchased identity information to register a large number of shell companies, and falsely issue pharmaceutical consulting services, conference services and other invoices to pharmaceutical companies and drug intermediaries in order to reimburse the gray of the drug companies and company sales links.

In fact, this is what the pharmaceutical industry often said in the past as "passing tickets", and it is an act that the relevant departments have severely cracked down on in recent years.

Cyberlan has inquired from the official website of the State Administration of Taxation that since this year, many places across the country have repeatedly announced major tax violations, among which a large number of companies have falsely issued invoices and flowed to pharmaceutical companies and have been fined.

2

In the pharmaceutical industry, tax inspection is still the focus

As we all know, the implementation of the two-invoice system directly refers to the issue of bills in the pharmaceutical industry.

In many cases, false invoices are actually the source of commercial bribery in the medical field.

According to the "Pharmaceutical Industry Tax-related Criminal Risk Report (2021)" issued by Huashui Law Firm, the number of medical tax-related criminal cases has increased significantly in 2016-2020.

According to the analysis of the report, since medicines are more complicated to calculate the authenticity of goods than general commodities, the processing cycle of suspected false opening cases of pharmaceutical companies is longer than that of other industries.

In terms of the distribution of tax-related crimes, the crime of falsely issuing special VAT invoices accounted for the highest proportion, reaching 80.

Previously, experts in the Chinese medicinal material industry told Cybernet that many Chinese medicinal companies mainly purchase Chinese medicinal materials from farmers or production cooperatives.

At present, the two-invoice system has been fully implemented, coupled with the implementation of the VAT reform and the implementation of the third phase of the Golden Tax, the fiscal and taxation compliance of the pharmaceutical industry has also achieved certain results.

In this context, pharmaceutical companies must do a good job in tax compliance, improve security awareness, improve tax informationization, and strictly control and review upstream and downstream transaction invoices, sales representatives and other employees’ reimbursement invoices, in order to effectively avoid Risks arising from taxation.

It is foreseeable that under the requirements of policies and the market, those pharmaceutical companies that do not comply with fiscal and taxation regulations, if they do not transform early, the road ahead will be difficult to follow.