Chinese Authorities Audit 200 Artistes’ Tax Files
Above: Tax files of high-earning celebrities will be reviewed by Chinese authorities.
After Fan Bingbing (范冰冰) was found guilty of tax fraud and fined 883 million yuan by Chinese authorities, a ripple effect is felt throughout the Mainland Chinese entertainment industry. The State Administration of Taxation is eager to crack down on other artistes who have also evaded taxes.
Tax authorities are urging artistes who evaded taxes to self-correct themselves and come forward before December 31 to avoid administrative punishment. It is understood that many artistes will take the warning and “surrender” themselves to avoid further trouble with the law.
Other Artistes Suspected of Tax Fraud
Several high-profile Mainland artistes are also allegedly suspected of tax fraud. An actress with the surname of “Y” is very active in the industry and involved in many types of work. But after tax authorities’ crackdown on celebrity tax fraud, she has distanced herself from her studio to avert legal responsibilities.
An actor with the surname of “H”, who is one of the top earners in the industry and invested in many commercial and film projects in recent years, is also suspected of tax fraud.
Director “F” and actress “H’s” husband “Y” have also allegedly used “yin yang” contracts to avert taxes.
Over 200 High-earning Artistes Audited
The State Administration of Taxation will focus on top-earning artistes and review their tax files for authenticity. Tax authorities will audit 200 artistes whose filming fees are over 10 million yuan, which include Taiwanese actors such as Eddie Peng (彭于晏), Wallace Huo (霍建華), Mark Chao (趙又廷), and Ethan Ruan (阮經天), who are immensely popular in Mainland China and earn lucrative filming fees.
Many artistes’ production companies are registered in Wuxi and Hengdian due to favorable tax concessions. Larger film production companies and distributors are primarily registered in Xinjiang. Yang Mi (楊冪), Angelababy (楊穎), Fan Bingbing (范冰冰), Vicki Zhao (趙薇), Nicky Wu (吳奇隆), Huang Xiaoming (黃曉明), Li Yifeng (李易峰), Zanilia Zhao (趙麗穎), Zhou Xun (周迅) all registered their companies in Xinjiang due to the favorable tax climate.
This article is written by Jayne for JayneStars.com.