In 2021, a high-tech enterprise, suspected of the crime of false VAT invoicing, entrusted King&Capital to provide legal services on the implementation of criminal special compliance rectification.

I. Compliance team intervened and counseled to promote the launch of compliance rectification

After accepting the commission, the compliance team firstly conducted research and judgment on the overall situation of the enterprise involved in the case. The main business area of the enterprise in question was the supply of military products, and it had high scientific research capability and had been in the leading position in the industry. Before the crime, the enterprise was in the process of preparation for listing, and it itself had a good business condition and development prospect.

Compliance team from the enterprise's business situation, future development, rectification measures and other multi-dimensional argumentation, guidance to the enterprises involved in the case to submit relevant documents to the procuratorate, apply for the procuratorate involved in the case of the enterprise to start a special compliance rectification.

Successfully passed the prosecutor's hearing, and the person involved in the case was finally released.

After the submission of the application documents, the compliance team started to gradually counsel the enterprise to carry out compliance rectification, guiding the financial department to independently carry out self-examination, tax-related training and system combing during the period when the legal representative/actual controller was absent.

In November 2021, the procuratorial authorities organized a hearing for the enterprise in question to report on the rectification measures and progress. After this report, the procuratorial authorities agreed that the company in question should initiate special criminal compliance and rectification, and the legal representative was finally released after nearly six months of detention.

In-depth and comprehensive due diligence of the company and effective implementation of rectification measures

After the legal representative/actual controller was released, the compliance rectification work could be carried out more effectively and comprehensively. The compliance team and the company's management jointly analyzed the causes of the case, simultaneously conducted comprehensive due diligence on the enterprise, combined with the enterprise's actual business model, business situation, financial personnel composition, decision-making system for major matters and the introduction of the ERP system, and many other factors, to formulate detailed and targeted rectification plans, and counseled the enterprise to complete them one by one.

IV. Participating in compliance rectification and acceptance, helping to demonstrate compliance results

In September 2022, the procuratorate appointed a third-party supervision and evaluation organization to carry out compliance acceptance of the company involved in the case. The compliance team assisted the company in sorting out the rectification work implemented within one year item by item, forming a report on the compliance rectification work and submitting the acceptance information in accordance with the acceptance requirements of the third-party supervision and assessment agency.

On September 23, 2022, the third-party supervision and assessment agency, together with experts in the fields of auditing and taxation, carried out the acceptance work. The compliance team attended the acceptance meeting together with the key personnel of the enterprise involved in the case, assisted the enterprise in reporting on the rectification situation, and accompanied the personnel involved in the case, the head of the compliance department and the head of the finance department in responding to and answering the questions raised by the third-party supervisory and assessment agent one by one.

Eventually, the third-party supervision and assessment organization proposed to the prosecuting authority that the enterprise involved in the case passed the compliance rectification and acceptance.

The compliance team of King&Capital adheres to the firm culture of "pursuing excellence and fulfilling responsibilities" in the process of counseling enterprises for rectification, actively innovates, adapts to local conditions and effectively implements rectification measures, so as to achieve real rectification and compliance and help private enterprises to comply with laws and regulations and develop in a benign manner.