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Online shop owners sentenced for tax evasion on overseas purchasing

(People's Daily Online)

17:29, February 26, 2013

On Feb. 25, two online shop owners named Liu Xin and Fan Lin were sentenced to 11 years in prison and one year and six months probation by the Shanghai Municipal First Intermediate People's Court because of 179, 000 yuan tax evasion on overseas purchasing. Liu Xin was fined 100, 000 yuan and Fan Lin was fined 81,000 yuan. All seized smuggling goods were confiscated. This is the first criminal punishment case for tax evasion on overseas purchasing in Shanghai.

Fan Lin flew to Shanghai Pudong International Airport from South Korea’s capital Seoul onboard flight OZ367 on April 9, 2012. When Fan entered China, Fan did not declare any goods through Customs. Customs officers discovered 473 items including cosmetics, watches, phototherapy gadgets, handbags, etc, of which 411 goods were given by Liu Xin to bring into China from South Korea.

On May 23, 2012, Customs officers found 307 items including cosmetics, watches, phototherapy gadgets, handbags, etc in Liu Xin’s luggage without customs declaration when Liu entered China at Shanghai Pudong International Airport. After an investigation, it was proven Liu Xin evaded 99,000 yuan worth of tax and Fan Lin 80,000 yuan.

The Customs anti-smuggling department at Shanghai Pudong International Airport issued the compulsory measure of awaiting trial on bail for Fan Lin and Liu Xin respectively on April 10 and August 22, 2012.

According to Liu and Fan’s confession, they are online shop owners who sell goods purchased overseas at their online shops. Public prosecutors initiated the case at the Shanghai Municipal First Intermediate People's Court on Dec. 26, 2012.

The court considered Fan Lin and Liu Xin violated Customs regulation, escaped customs supervision and smuggled goods into China with great amount of tax evasion.

Liu Xin and Fan Lin said in court that they would not appeal against the verdict. (Liu Xin and Liu Xin are not their real names)

Edited and translated by Ma Xi, People's Daily Online
Read the Chinese version: “80后”淘宝店主海外代购逃税17.9万
Source:Jiefang Daily

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