China's tax authorities have disclosed that the Falungong cult and its founder Li Hongzhi have been dodging taxes.

An official with the State Administration of Taxation said that China's Taxation Offices investigated tax evasion cases involving Li Hongzhi, Falun Dafa Research Society, 549 Falungong organizations, 142 manufacturers of Falungong materials and 338 retailers in the past three months. Taxation officers have imposed more than 10 million yuan (1.2 million US dollars) in fines.

Falungong organizations and operators have attempted every possible means at their disposal to dodge taxes. Preliminary survey that has been done show that from 1994 to 1998, Li Hongzhi and Falun Dafa Research Society acquired 2.685 million yuan (323, 500 US dollars) from giving lectures and conducting other activities without declaring any tax.

Falungong organizations nationwide earned more than 22 million yuan (2.6 million US dollars) from selling Falungong cult materials, including books and audio-video products. Retailers made profits of over 66.6 million yuan (8 million US dollars) from more than 100 million yuan (12 million US dollars) of Falungong materials.

Under Li Hongzhi authorization, the Shandong Provincial Youth Science and Technology Service Center evaded taxes worth more than 2.79 million yuan (336,000 US dollars). During June and July of 1997, the Center donated 500,000 yuan (60,000 US dollars) in cash to the Falun Dafa Research Society of Falun Dafa and bought Li a car worth nearly 200,000 yuan (24,000 US dollars).

The Center also planned to donate to the Research Society 1.86 million yuan in royalties, but the case was uncovered by police before the money was transferred.

The official said the evidence fully exposes Li Hongzhi's true evil nature by taking advantage of the Chinese people to further his political ambitions and become filthy rich in the process.

Investigation of tax evasion cases of the Falungong Cult is still proceeding.