In today’s complex global financial landscape, where billions of dollars cross borders every day, transparency and accountability are more critical than ever. Independent financial investigations act as a safeguard against misconduct, ensuring that financial practices remain ethical, legal and fair.
Conducted by third parties such as forensic accountants, regulators or specialised firms, these investigations probe financial records to uncover irregularities, fraud or corruption. They play a pivotal role in exposing hidden financial schemes that could undermine business integrity and economic stability.
A core function is fraud detection, but the scope goes further. Investigations also support asset recovery, tracing funds through complex webs of shell companies and offshore accounts in cases of money laundering or illicit transfers. Moreover, they reinforce regulatory enforcement by strengthening compliance and governance standards.
The standard investigation process may include:
Forensic accountants play a crucial role in these investigations, analysing fraudulent activities and quantifying financial losses and damages.
Case 1-Expert Witness Report in Legal Disputes
A foreign shareholder suspected that local management manipulated revenue and understated costs during specific accounting periods to inflate the company’s profit, thereby increasing management incentives tied to KPIs. SBA was engaged to investigate. Working with external law firms, we prepared an expert witness report, which was later used in a potential legal dispute against the management team.
Case 2- Related Party Transaction Investigation
An SGX-listed group, with operations primarily in China, was queried by SGX over disclosures of asset purchases and sales between related parties within the group. The audit committee engaged RSM Stone Forest to carry out an independent financial investigation of these related party transaction. SBA supported by researching related-party relationships within and outside the group, observing physical asset transfers, reviewing cash flow records and analysing supporting agreements.
Case 3-Whistleblowing on inventory Disposal
A foreign-invested battery manufacturer received a whistleblower complaint about an unusually high waste rate in the production line. SBA was engaged to conduct an independent investigation of the production cycle, waste processing procedures and disposal methods. We identified key control weaknesses and proposed remedial actions for the company.
Accounting and Taxation
State Administration of Taxation (SAT) Announcement on VAT End-of-Period Uncredited Input Tax Refunds
General VAT taxpayers meeting the conditions for end-of-period VAT credit refund under Announcement No. 7 shall apply for refunds during the VAT filing period of the following month, after completing the current period tax filings. Applications must be submitted via the electronic tax bureau or the tax service hall.
Connection with Special Businesses (Exemption, Offset and Refund for Export, etc.):
Processing Rules of Tax Authorities:
If the taxpayer remains eligible once these matters are resolved, the authority shall complete the review and approve the refund within 5 working days. If not eligible, a notice of refusal must be issued within 5 working days.
Terminating of Processing: Applications will be terminated if major tax violations are suspected such as fraudulent export tax refund or false issuing of VAT special invoices. A notice shall be issued within 5 working days. Taxpayers may reapply once the issues are addressed.
This Announcement takes effect from 1 September 2025.
MOF and STA Announcement on the Value Added Tax (VAT) policy for interest income on treasury and other bonds
This announcement clarifies the VAT treatment of interest income earned on national government bonds, local government bonds and financial bonds.
Effective Date and Transitional Rules
Definition of Financial Bonds
For this announcement, the term "financial bonds" refer to negotiable securities that:
Human Resources
Notice on Printing and Distributing the Application Guidelines for the Fiscal Subsidies for Overseas Talents under the Personal Income Tax Preferential Policies of the Guangdong-Hong Kong-Macao Greater Bay Area in Guangzhou City for the 2023 and 2024 Tax Years (2025)
On August 19, 2025, the Finance Bureau of Guangzhou City, together with the Taxation Bureau of Guangzhou City and other government departments issued the "Notice on Printing and Distributing the Application Guidelines for the Fiscal Subsidies for Overseas Talents under the Personal Income Tax Preferential Policies of the Guangdong-Hong Kong-Macao Greater Bay Area in Guangzhou City for the 2023 and 2024 Tax Years (2025)".
The guidelines provide that overseas talents, including high-end and scarce talents, working within the administrative region of Guangzhou who meet the eligibility conditions may apply for fiscal subsidies. The subsidy applies to the portion of personal income tax paid in Guangzhou for the 2023 and 2024 tax years (1 January to 31 December) that exceeds 15% of taxable income.
Corporate Governance
The Supreme People's Court issues first batch of typical cases on foreign-related commercial and maritime mediation
On 11 July 2025, the Supreme People's Court released the first batch of six typical cases involving foreign-related commercial and maritime mediation. These cases involved parties from Singapore, South Korea, Italy, and the United States, and showcase China’s growing experience in diversified dispute resolution for cross-border matters.
The case emphasize equal protection of the legitimate rights and interests of both Chinese and foreign parties. Innovative approaches adopted by the courts include:
These practices aim to strengthen cross-border trade dispute resolution, safeguard the interests of foreign investors and establish new paradigms for international commercial mediation.