Beijing Jianhua Land Company Limited, a subsidiary of Chinese real estate mogul Pan Shiyi has been fined more than approximately $111 million by the Chinese Communist Party.

The CCP’s Beijing Municipal Taxation Bureau announced the penalties on Dec. 17, alleging that Jianhua Land reduced costs by violating protocols, made false declarations, and lowered land prices in the second and third periods of the SOHO Shangdu land value-added tax settlement and corporate income tax settlement. 

According to the Epoch Times, the agency said it would collect 2.5 times the amount of tax Jianhua Land has failed to submit on the due date according to law. 

Within the same day of the notice, SOHO China, which owns 60% of Jianhua Land, said it would pay the total penalties on time.

Jianhua Land was established on Feb. 22 in 1994. Qixinbao reported that it belongs to Pan Shiyi with a registered capital of about $16 million.

This year, the CCP has targeted Pan Shiyi, the chairman of SOHO China. 

Earlier this month, Beijing Souhou Property Management, another subsidiary of SOHO China, was fined more than roughly $13.5 million by Shanghai’s multi-regional market regulators for violations of electricity prices. 

The CCP also stopped the U.S. Blackstone Group from taking over SOHOwith warnings of “anti-monopoly” review. The U.S. firm would have acquired the enterprise for HK$23.656 billion.

Besides China SOHO, the other shareholder of Jianhua Land is Beijing Huayuan Real Estate, which possesses 40% of company shares. 

Beijing Huayuan Real Estate is the subsidiary of Huayuan Group, whose former chairman Ren Zhiqiang was sentenced to 18 years in prison in September 2020 for embezzlement and other crimes. His conviction has been said to stem from his public criticisms of the CCP. 

Ren Zhiqiang is the son of Ren Quansheng, former Vice Minister of Commerce of the Chinese Communist Party.

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