Greater ChinaShipyards

Tax fraud uncovered at Mingde Heavy Industry

China’s State Administration of Taxation has uncovered a tax fraud case at bankrupt shipyard Mingde Heavy Industry.

According to the administration, Mingde Heavy Industry made fake contracts and legal certificates for a shipbuilding contract with a Greek owner in order to secure an export tax rebate of RMB18.54m ($2.73m) between 2010 and 2014.

Authorities have arrested three senior officials at the yard including Ji Fenghua, president of Mingde.

Mingde Heavy Industry, once the largest chemical tanker builder in the world, went bankrupt in 2015 after its largest creditor Sainty Marine applied to liquidate the yard, and all three auctions to sell the shipyard’s assets have failed due to there being no bidders.

The bankruptcy of Mingde triggered the bankruptcy of Sainty Marine, which will quit the shipbuilding business upon completion of an ongoing restructuring process.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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