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Manager accuses Xiushui chairman of $29m tax fraud

By Nie Ligao (chinadaily.com.cn)
Updated: 2009-08-05 15:57

Wang Zili, a recently resigned general manager of the Beijing Xiushui Garment Market Company claims the company had avoided paying 200 million yuan ($29.28million) in taxes since 2005 through a series of financial frauds arranged by the company's chairman of the board, Zhang Yongping, according to a Wednesday report in the Beijing News.

Xiushui Garment Markert Corporation's legal counselor Yu Tanzhen denied the charges. As proof of his company's innocence, he showed documents granting his company special tax exemptions at a press conference in Beijing on Wednesday night. The exemptions expired in 2008, and Yu also showed the tax inovices which he said proved that all required the taxes had been paid since then.

Wang told a reporter he had sent out several letters to the related authorities calling for a thorough investigation of the case. He also said he was worried about his personal safety, should the Xiushui Garment Market Corporation try to retaliate against him. But further information about the specifics of Wang's charges was not available.

Xiushui Garment Market Corporation runs and regulates the Xiushui Market, a famous shopping destination for both Beijing locals and foreign tourists. It is best known for cheap clothes and silk products.

Wang resigned from the company abruptly in July due to incompetence according to counselor Yu but Wang himself didn't give a reason.