Two Chongqing companies' private accounts for receiving payments and tax evasion were investigated and dealt with

On March 3rd, the State Taxation Administration Chongqing Taxation Bureau announced cases of tax evasion involving Chongqing Yongyuan Petrochemical Co., Ltd. and Chongqing Fireworks and Firecrackers Group Fengjie County Yongxiang Co., Ltd. The tax authorities relied on big data analytics to implement precise supervision. Both companies concealed income by receiving business payments through personal accounts. They were ultimately required to pay back the owed taxes, with late fees and fines imposed. All related funds have been fully recovered.

Petrochemical Enterprise:

Third-party platform payments transferred to personal accounts to conceal sales income

The Third Inspection Division of the Chongqing Taxation Bureau investigated the tax evasion case of Chongqing Yongyuan Petrochemical Co., Ltd. During 2020 to 2022, the company used third-party payment platforms to collect fuel payments. After settlement, part of the funds were transferred to personal accounts to hide sales income, resulting in underpaid VAT and other taxes totaling 531,400 yuan.

The case was flagged through big data analysis, which revealed suspicious activity. The gas station is located on a main urban road with heavy private vehicle traffic. However, the proportion of unissued invoices was significantly lower than nearby gas stations of similar size. Over three years, 99% of transactions involved invoicing, which is inconsistent with the industry’s typical retail pattern. On-site inspections found chaotic financial management, with the cash register system only storing two months of transaction data. By reviewing transaction records from third-party payment platforms, investigators identified key clues indicating funds transferred to private accounts. Cross-referencing bank statements, tax declarations, and other documents confirmed the tax evasion. In April 2025, the tax authorities ordered the company to pay back taxes, late fees, and a fine totaling 1.2796 million yuan. All involved funds, late fees, and fines have now been fully recovered.

Fireworks and Firecrackers Manufacturing and Operating Enterprise:

Receiving payments through multiple personal accounts to conceal income

The Sixth Inspection Division of Chongqing Taxation Bureau investigated the tax evasion case of Chongqing Fireworks and Firecrackers Group Fengjie County Yongxiang Co., Ltd. From 2021 to 2023, the company received sales payments through personal accounts of the legal representative’s relatives, cashiers, and shareholders. The company concealed income and submitted false tax declarations, resulting in underpaid VAT and corporate income tax totaling 718,100 yuan.

As a leading fireworks and firecrackers enterprise in Fengjie County, Yongxiang operates 21 retail distribution points, far exceeding the scale of local individual merchants. However, its reported sales income was less than five times that of smaller competitors, raising suspicion. Investigators found that core personnel’s personal accounts frequently received large sums, mostly from retail fireworks shops. By analyzing the entire supply chain data and verifying the operations of distribution points, along with cross-checking over 3,000 personal account transactions, authorities confirmed that the company’s private account receipts were not properly reported. Confronted with comprehensive evidence, company personnel admitted to tax evasion. In January 2025, the tax authorities ordered the company to pay a total of 1.2983 million yuan in taxes, late fees, and fines. All involved funds have now been recovered.