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Seventeen employees jailed for tax dodging

(Xinhua)
Updated: 2007-01-22 15:05

A steel company in north China'sShanxiProvince has been fined 185 million yuan (23.7 million U.S. dollars) for tax evasion and 11 employees have received prison sentences ranging from two to eleven years, according to the local court.

Shanxi Yujin Iron & Steel Co., controlled by steel giant Shougang Group, was accused of making up fake sales invoices for scrap steel in order to evade 182 million yuan (23.3 million U.S. dollars) of taxes from January 2002 to March 2005, according to Linfen Intermediate People's Court.

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The company was fined 185 million yuan, according to the court.

Wang Mingshan, manager of supply and marketing and chief organizer of the tax evasion, was sentenced to 11 years in jail after he delivered himself to the police and paid 200,000 yuan (25,641 U.S. dollars) in fines.

Six others were given suspended sentences besides the 11 sentenced to jail, according to the court.

Founded in October 2001, Shanxi Yujin Iron & Steel Co. now has a yearly production capacity of one million tons of iron and two million tons of steel.

TheBeijing-based Shougang group signed a strategic cooperation agreement with Linfen City on November 19, 2004 and bought 51 percent shares of Shanxi Yujin Iron & Steel Co. Ltd.