Yanqi Luo Claimed

Tax Evasion Exposure and Defense

Yanqi Luo advises companies and individuals in Shenzhen on tax evasion exposure, the first-offense exemption under China's tax crime framework, and practical response to tax audits and investigations.

Mr. Luo practices at Shenzhen Guangda Law Firm in the Nanshan District. He studied law at Sun Yat-sen University and was admitted to the bar in 2014. His practice focuses on tax crime defense and financial crime, and he frequently advises foreign-invested enterprises and trading companies in Guangdong on the criminal risks associated with inaccurate filings, unreported income and invoicing irregularities.

Understanding the First-Offense Exemption

One of the most important protections for taxpayers under Chinese law is the first-offense exemption in Article 201 of the Criminal Law. If the tax authority issues a demand for payment and the taxpayer pays the tax due, pays the late fee and accepts the administrative penalty, criminal liability is not pursued — unless the taxpayer was previously punished for tax evasion or has received administrative punishment two or more times within five years.

Mr. Luo explains this protection in practical terms: the earlier the taxpayer responds to an audit, the more likely the matter can be resolved administratively. Payment after criminal investigation begins carries less weight, and payment after prosecution has commenced affects sentencing but does not automatically end the case.

"Taxpayers who adopt deceptive or concealment means to make false tax declarations or fail to declare, evading taxes in a relatively large amount that accounts for more than ten percent of the tax payable, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall also be fined." — Criminal Law of the People's Republic of China, Article 201

Practice Areas

• Tax audit response and administrative resolution
• Tax evasion and false declaration defense
• Cross-border tax compliance for foreign-invested enterprises
• Advice on repayment, late fees and penalty negotiation

Engagement Approach

Mr. Luo begins with a written assessment of the client's exposure, including the tax amounts involved, the applicable thresholds and the realistic procedural options. He coordinates directly with tax advisors and accountants where needed, and he keeps communication clear and practical for clients who may be encountering the Chinese tax enforcement system for the first time.