Generation of small rights acquitted _ future wants to enter the artificial intelligence industry
On February 11, 2018, the Jiujiang Intermediate People's Court in Jiangxi Province conducted the second trial of the tax evasion case involving Gongqingcheng Sailong Company. The legal representative of the company, Dai Xiaoquan, appeared in court as the defendant. After over an hour of proceedings, the presiding judge announced the acquittal of both the company and Dai Xiaoquan, who was released immediately. This verdict marked a significant turning point for the entrepreneur and his business.
In October 2017, a media article titled “The Founder Was Bizarrely Arrested: The Mystery of Shenzhen Sailong’s Sudden Death†sparked widespread public interest. It detailed the challenges faced by a prominent tech entrepreneur, highlighting how local officials allegedly pressured him to misappropriate company assets and control. This led to his arrest on charges of tax evasion, which were later overturned in the second trial.
The article also retraced the journey of Gongqingcheng Sailong from a high-profile tech startup to a company embroiled in legal and business turmoil. It raised critical questions about the business environment for private enterprises and tech entrepreneurs in the region.
In January 2017, the Gongqingcheng Procuratorate filed a lawsuit against Sailong and Dai Xiaoquan for alleged tax evasion of 3.39 million yuan. The first trial focused on three main issues: whether the tax evasion claim was valid, the nature of hidden taxes, and whether the company qualified as an export enterprise.
Dai Xiaoquan was arrested in January 2015 by Gongqingcheng police while in Shenzhen, accused of "executive tax evasion." According to the investment agreement between Sailong and the Gongqingcheng government, executives were exempt from personal income tax for two years, making the arrest legally questionable. After being detained, he was not formally prosecuted and instead placed under house arrest, with no legal procedures followed.
Since February 2014, Dai had been illegally detained, forced to sign an equity transfer agreement in April before being released. In January 2015, he was criminally detained on suspicion of tax evasion and transferred to surveillance the next day. Despite the lack of evidence, he remained under restrictions for three years, during which time Sailong faced numerous business challenges and legal disputes.
Following the acquittal, Dai expressed deep gratitude to the media and the judicial system, saying, “It really did things according to law.†He emphasized that the Jiangxi provincial government took the case seriously, and the second-instance court handled it based on facts and evidence without interference.
During the trial, the prosecution and defense disputed whether the company qualified as an export enterprise. A tax expert from the National Tax Import and Export Office of Jiangxi Province testified that the government had not paid the company 120 million yuan, which should be considered as part of the tax calculation. This laid the foundation for the acquittal.
After the media article sparked rumors, some local officials claimed the case was due to internal conflicts and asset transfers. However, the person labeled as a “triad member†denied these claims, stating they were merely following instructions from former officials. Dai’s property in Canada was purchased long before he returned to China, and he continues to pay the mortgage.
Sailong is expected to enter bankruptcy liquidation soon, with many civil lawsuits still pending. Dai plans to continue his entrepreneurial journey, focusing on artificial intelligence and mobile phone products. He aims to build an ODMS platform, integrate the industry chain, and collaborate with major brands like Huawei and Xiaomi.
Dai’s defense lawyer, Xie Min, praised the judicial process, noting that the courts in Jiangxi respected facts and listened to legal arguments. She described the case as the final chapter of her career, marking a successful resolution after two years of effort.
Xie Min also highlighted the broader significance of the verdict, calling it a step forward in judicial reform and a model for society. Zhu Jie, one of the early investors in Sailong, expressed hope for the leadership team, calling the news the best of the year.
For Dai Xiaoquan, this acquittal is not just a personal victory but a symbol of justice and resilience, offering new hope for the future.
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