On August 25, the Holingol City Procuratorate held public hearings on two cases involving the fraudulent issuance of invoices, with plans to decide not to prosecute two executives from private enterprises. The hearing was chaired by Shen Yanmin, Party Secretary and Chief Prosecutor of the procuratorate. Attendees included representatives from the Holingol City People's Congress, members of the Chinese People's Political Consultative Conference, representatives from the Federation of Industry and Commerce, representatives from tax authorities, public supervisors, investigators involved in the cases, as well as the two suspects and their lawyers.

The hearing was conducted strictly according to the procedures outlined in the Supreme People's Procuratorate's "Regulations on Hearing Procedures for Case Review in People's Procuratorates," and was fully recorded simultaneously through audio and video.

According to the prosecuting attorney handling the case, Li and Shi are the legal representatives of two private construction groups based in Horqin Gol City. Several years ago, pressured by Liu, a local criminal gang leader, both Li and Shi allegedly issued false invoices under their respective company names for Liu's company. Notably, during the invoice issuance process, both individuals had already declared and paid taxes as required by law. Additionally, the recipient—Liu—did not use the falsely issued VAT invoices to claim tax deductions, meaning no actual loss of state tax revenue occurred. During the investigation phase, Li and Shi voluntarily turned themselves in and admitted their guilt, accepting responsibility while maintaining that the circumstances of their crime were relatively minor.
During the review and prosecution stage, the court conducted its first-ever corporate compliance review. Two companies submitted materials to the procuratorate, including their corporate development histories, business registration details, tax payment records, financial compliance plans, and commitments to operate in full adherence to compliance standards. Through on-site visits and investigations, the handling prosecutors learned that both companies have maintained strong business performance and excellent tax reputations since their establishment. They currently employ over 200 regular staff members, providing jobs for more than 1,000 people, and have made significant contributions over the years to Horin Gol City’s economic growth, social development, tax revenue, employment opportunities, and even charitable initiatives.
Considering the suspect's statutory and discretionary mitigating factors, and in order to support and safeguard the "six stabilizations" and "six guarantees," as well as to promote the healthy development of private enterprises, the procuratorial authorities plan to adopt a decision of non-prosecution with conditions for these two individuals, while strictly implementing the criminal justice policy that balances leniency and severity, and ensuring adherence to the judicial approach of "fewer arrests, cautious prosecution, and prudent detention."

After reviewing the details of the two cases and hearing the opinions of the procuratorial authorities, the delegates held a closed-door deliberation on the matters under consideration and subsequently shared their views. They unanimously agreed that the procuratorial authorities should, in accordance with the law, decide not to prosecute Li and Shi.




Meanwhile, delegates expressed strong approval and appreciation for the procuratorate's proactive efforts in fully leveraging its prosecutorial functions, optimizing the business environment, and actively supporting the growth of private enterprises—particularly their willingness to take responsibility. "Today's hearing clearly demonstrated the judiciary's pivotal role in guiding and safeguarding the healthy development of the private economy," said Wu Changyun, a representative from the Federation of Industry and Commerce. "I hope we can strengthen collaboration with judicial authorities in the future to promote legal awareness, working together to foster sustainable business growth. I truly commend the procuratorate for their outstanding approach!"

"The law is rigid, but justice has a human touch." Chief Prosecutor Shen Yanmin emphasized that protecting businesses means stabilizing employment and fostering growth. He added that the rule of law is the best environment for business development. The Holingol City Procuratorate will continue to implement the Supreme People’s Procuratorate’s "Opinions on Fully Leveraging the Functions of the Procuratorate to Support and Safeguard 'Six Stabilities' and 'Six Guarantees,'" actively promoting the compliant development of private enterprises. By fulfilling its duties comprehensively and providing high-quality legal support, the procuratorate will contribute its expertise to creating a world-class business environment.
Author: Tian Qiuyue
Source: Xilin Gol Procuratorate
Related News