1998, Li Yichao bought a cement products factory with total assets of nearly 200 million yuan at a price of 3.59 million yuan, which was approved by the government. The factory's 3 12 mu of land is located in a prime location in the city center, with excellent development value. However, due to the constant petition of factory workers, it caused an uproar in Luoyang, and Li Yichao failed to do so.
In 2003, with the development and construction of Luonan New District, Zhongtai Real Estate became the first real estate developer to acquire land in Luonan. It is said that this is related to the unusual relationship between Li Yichao and the relevant leaders of Luoyang Construction Committee.
Relevant materials show that Luoyang Zhongtai Real Estate Co., Ltd. evaded taxes140,000 yuan from May 2005 to February 2006 after investigation by Anyang Public Security Bureau of Henan Province. Luoyang Zhongtai Real Estate Co., Ltd. is a subsidiary controlled by Luoyang Zhongtai Group Co., Ltd., and Li Yichao is the legal representative and chairman of Luoyang Zhongtai Group, actually controlling Luoyang Zhongtai Real Estate Co., Ltd., and Li Yichao directly instructed the financial manager of Luoyang Zhongtai Real Estate Co., Ltd. to evade taxes by means of not keeping accounts and concealing income, which was suspected of tax evasion, and the amount was extremely huge.
On February 28th, 2007, the 26th meeting of the 10th the NPC Standing Committee voted to terminate Li Yichao's qualification as a representative of the National People's Congress.
Li Yichao's case caused widespread concern in Luoyang society for a time. It's hard to imagine that even ordinary vendors have to pay taxes according to the rules. As a deputy to the National People's Congress, he usually does a lot of good things, and Li Yichao actually evaded taxes so much.
From the rise of Li Yichao to the present more than ten years, there are also some controversies about Li Yichao. According to informed sources, one of Li's most controversial issues in Luoyang was the cheap sale of Luoyang Cement Products Factory in the late 1990s.
In fact, at the same time, the Li case also has a meaningful impact on the current tax evasion of real estate enterprises. According to media reports, tax inspectors in Shanxi, Shandong, Sichuan, Yunnan, Shanghai and other provinces and cities in China have found the problem of tax evasion by local real estate enterprises, and these local tax authorities generally report that about 90% of real estate enterprises have tax-related problems.
For the phenomenon that real estate enterprises are profit giants and tax dwarfs, a person from the local tax department of Henan said that Henan also exists to varying degrees. Li Yichao's case shows that Henan Province attaches great importance to the problem of tax evasion in the real estate industry, and it also sounds an alarm for tax evasion enterprises in Henan.
Although Li Yichao came from the bottom, after years of hard work, he made the Forbes China Rich List in 2005. Surprisingly, such an excellent entrepreneur was jailed less than two years after listing. Is the reason for failing the list described by a simple word "tax evasion"? "Experience from experience" may be a portrayal of Li Yichao's life in prison.
After making a fortune, Li Yichao did a lot of good things while doing business. However, it is puzzling and incredible that Li Yichao, as a deputy to the National People's Congress, is full of "love" for society, but has no "charity" for national taxation. "Paying taxes is as inevitable as death", and enterprises that evade paying taxes will inevitably die.
With his unique legal perspective and wisdom, lawyer Zhiwei elaborated in detail the whole process of Li Yichao, a "civilian rich man", from starting from scratch to falling off the horse. Lawyer Zhiwei believes that a harmonious society needs the sunshine of wealth, but also the wealth of sunshine. Only the wealth under the sun will be respected by our society. Gray wealth and problem wealth will eventually be eliminated by the wheel of history, which is the tragedy of Li Yichao. A person familiar with the matter said, "[Li Yichao, Wang Xinli and Wang Yuefeng] are all local businessmen in Luoyang, and they all started from real estate. In the process of real estate development, the companies under their names colluded with local officials, violating laws and regulations. "