DeHeng Lawyers Achieved Interim Victory in a Case Involving Over RMB 200 Million in Export Tax Refund Fraud

2024-11-18

Recently, DeHeng’s lawyers achieved an interim victory in a second-instance case involving over RMB 200 million in alleged export tax refund fraud. Following a first-instance verdict that sentenced three defendants to prison terms ranging from 10 to 15 years, the provincial high court ruled to “overturn the original judgment and remand the case for retrial.”

The first-instance court determined that the criminal group operated a circular trade model involving “upstream procurement, customs declaration for export, overseas transit, goods return, downstream distribution, and fund settlement.” However, the case lacked sufficient evidence in multiple aspects, and certain activities, such as smuggling, had already been adjudicated by other courts.

The second-instance court adopted several defense arguments presented by DeHeng’s lawyers, ultimately ruling to “overturn the original judgment and remand the case for retrial” on the grounds of “unclear facts and insufficient evidence.”

This case spans a long period, involves multiple stages, and involves substantial funds, with taxation- and accounting-related evidence that requires professional reading. Leveraging their professional expertise and extensive experience in economic crime investigations, DeHeng’s lawyers meticulously analyzed the evidence and systematically eliminated suspicions against the client, leading to this interim success.