Falungong
cult's tax evasion being investigated
China's
tax authorities have disclosed that the Falungong cult and
its founder Li Hongzhi have been evading taxes.
An
official with the State Administration of Taxation said
that China's Taxation Offices investigated tax evasion cases
involving Li Hongzhi, Falun Dafa Research Society, 549 Falungong
organizations, 142 manufacturers of Falungong materials
and 338 retailers in the past three months. Taxation officers
have imposed more than 10 million yuan (1.2 million US dollars)
in fines.
Falungong
organizations and operators have attempted every possible
means at their disposal to evade taxes. Preliminary survey
that has been done show that from 1994 to 1998, Li Hongzhi
and Falun Dafa Research Society acquired 2.685 million yuan
(323,500 US dollars) from giving lectures and conducting
other activities without declaring any tax.
Falungong organizations nationwide earned more than 22 million
yuan (2.6 million US dollars) from selling Falungong cult
materials, including books and audio-video products. Retailers
made profits of over 66.6 million yuan (8 million US dollars)
from more than 100 million yuan (12 million US dollars)
of Falungong materials.
Under
Li Hongzhi authorization, the Shandong Provincial Youth
Science and Technology Service Center evaded taxes worth
more than 2.79 million yuan (336,000 US dollars). During
June and July of 1997, the Center donated 500,000 yuan (60,000
US dollars) in cash to the Falun Dafa Research Society of
Falun Dafa and bought Li a car worth nearly 200,000 yuan
(24,000 US dollars).
The
Center also planned to donate to the Research Society 1.86
million yuan in royalties, but the case was uncovered by
police before the money was transferred.
The
official said the evidence fully exposes Li Hongzhi's true
evil nature by taking advantage of the Chinese people to
further his political ambitions and become filthy rich in
the process.
Investigation
of tax evasion cases of the Falungong Cult is still proceeding.
(China
daily 1999/12/10)
