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Can Audit Reports Issued by Audit Authorities on Refined Oil Products Consumption Tax Serve as the Basis for Tax Collection by Tax Authorities?
April 28, 2026, 1:47 p.m.
1535Views
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SPC: The Essence of Invoice Alteration by Petrochemical Companies is to Evade Consumption Tax, Not Constituting the Crime of Falsely Issuing Special VAT Invoices
March 23, 2026, 2:37 p.m.
4089Views
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Seven Trends in Tax Collection and Administration of the Petrochemical Industry in 2026
Editor's Note: As a pillar industry of the national economy, tax collection and administration of the petrochemical industry is not only related to the stability of national fiscal revenue but also plays a guiding and regulating role in the high-quality development of the industry. Currently, the reform of tax collection and administration is continuously deepened. The central government focuses highly on the supervision of refined oil consumption tax, with multiple departments intensively introducing regulatory policies and intelligent supervision methods being accelerated. The intensity of joint crackdowns on tax-related violations continues to increase. Coupled with the expectation of consumption tax reform and the clarification of judicial adjudication rules, petrochemical enterprises are facing a new round of systematic escalation of tax-related risks. Based on the latest policy dynamics, regulatory practices and typical cases, this article systematically sorts out the seven major trends in tax collection and administration of the petrochemical sector in 2026, providing references for industry enterprises to respond to regulatory changes and solidify the foundation of tax compliance.Dec. 12, 2025, 3:45 p.m.
8305Views
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New regulations for refined oil products released! Tax supervision in the refined oil industry is upgraded again
Editor's note: Recently, the refined oil industry has ushered in the new regulations "Management Measures for the Circulation of Refined Oil". The release of the new regulations also means that the tax compliance of the refined oil industry is facing new challenges. The new regulations put forward clear requirements for the admission and exit of operators in the refined oil industry, the construction of the industry's big data system, and the ledger system. Based on this, this article will analyze the tax impact of the new regulations on the refined oil industry by combining tax cases in the refined oil industry and relevant policy documents.Aug. 12, 2025, 4:46 p.m.
7260Views
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The State Council issued a heavyweight document on the regulation of refined oil distribution, deploying four tax-related regulatory points
In recent years, in the wave of economic development and market change, China's refined oil circulation field industry regulation has gone through a number of major reforms. 2025, February 5, the General Office of the State Council issued the "Opinions on Promoting the High-quality Development of the Circulation of Refined Oil Products" (State Council [2025] No. 5), put forward five aspects of the 21 specific initiatives, the refined oil industry tax-related regulation has also made four important deployments. This article analyzes the key points of the new policy in light of the evolution of the policy. Under the new regulatory environment, enterprises need to actively respond and establish a sound tax compliance system to adapt to the new situation where wide access and strong regulation coexist.Feb. 10, 2025, 10:47 a.m.
9209Views
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Big Case Release: Hwuason Law Firm Represented Refined Oil Special Invoice Fraudulent Invoicing Case Convicted of Illegal Purchase of VAT Special Invoice with Probation and Concluded the
n 17th December, 2024, a criminal judgement was issued by a local people's court in a case of false invoicing of refined oil products by an enterprise trading refined oil products with a total of more than RMB 1.5 billion in value-added tax (VAT), in which the team of Hwuason Law Firm cooperated with each other and was represented by Wang Qiang in the court. The person in charge of the enterprise was transferred by the investigating authorities for examination and prosecution of the crime of false VAT invoices, and the prosecuting authorities and the people's court adopted the defence opinions of the lawyers, corrected the application of the crime by the investigating authorities, and finally sentenced the person in charge of the enterprise to the crime of illegally purchasing VAT invoices and applied probation. The judgement in this case has put into practice the rules of the two high tax-related judicial interpretations of the second paragraph of article 10 of the crime of false invoices, and has a positive reference significance to the case of false invoices in the field of refined oil products.Dec. 23, 2024, 10:32 a.m.
8351Views
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Cases of Scalpers Manipulating the Separation of Fuel and Invoice Should not be Treated as Makes out False Value-Added Tax Invoices and the maximum sentence should not exceed five years
The latest case shows that for the group of scalpers who manipulate the fuel and invoice to separate and assist the invoice-buying units to obtain chemical invoices or refined oil invoices in a fraudulent manner, according to the spirit of the judicial interpretation of the two high courts that limits the application of the offence of fraudulent invoicing and the rule of purpose of tax cheating + result of tax losing, the conviction should be based on the offence of unlawfully purchasing VAT invoices, that is, the maximum statutory sentence should not exceed five years. The maximum statutory penalty shall not exceed five years. The author suggests that parties involved in suchNov. 19, 2024, 11:03 a.m.
7463Views
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The maximum sentence in the case of petrochemical change of invoices fraud is not more than seven years, and parties who have been sentenced to more than ten years may seek to change their sentences.
In recent years, the convictions and sentences of criminal cases of petrochemical invoicing have varied greatly from place to place, and the fates of the parties in different cases have been very different. At present, whether it is the relevant provisions and the latest spirit of the judicial interpretations of the Supreme Court and the Supreme Prosecutor, or the recently disclosed cases of judicial adjudication, they are all confirming that the behavior of petrochemical alteration of invoices should not be treated as the crime of falsely opening VAT special invoices. Parties facing more than ten years or even life imprisonment due to wrongful conviction or heavy sentence should actively seek fair justice through appeals, and the people's courts should also take up the responsibility to take the initiative to carry out special review and supervision of historical cases, correct the mistakes in conviction and sentence, and let each individual case reflect the light of justice.Nov. 11, 2024, 10:57 a.m.
7966Views
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Whether a refining enterprise should be deemed to have carried out taxable production activities when directly selling externally purchased naphtha as raw material
In the field of consumption tax, the production of taxable consumer goods is a taxable activity, while pure trading activities are not within the scope of taxation and naturally do not require the payment of consumption tax. However, a refining and chemical enterprise received a notice from its competent tax authority requiring it to pay back taxes on the sale of purchased naphtha raw materials. Is there a legal basis for the tax authority to do so? Should the refining and chemical enterprise pay consumption tax on its trading business of purchasing and selling naphtha? This article intends to analyze this issue.Sept. 9, 2024, 2:44 p.m.
8423Views
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The key catch in exploring the nature of tax evasion by enterprises utilizing red-flush false naphtha invoices are these two table
After the refined oil products module went online, new behavioral patterns of false invoicing in the petrochemical industry have emerged, and red-flush false invoicing is one of them. In practice, some judicial authorities have dealt with red-flush false invoicing of refined oil products as the crime of false invoicing, but this does not accurately grasp the true nature of this type of behavior. The author will take the two declaration forms as the key hand to prove that the essence of the behavior of red-flush false invoicing is to sell the inventory data of refined oil products in order to evade the consumption tax, so as to help the judicial authorities to correctly convict the behavior on the basis of correctly exploring the essence of the behavior, so as to provide the practical judicial protection for the only legal interest of the national consumption tax interests that are infringed upon in this kind of cases.July 23, 2024, 1:47 p.m.
8197Views
