China fines actress Fan Bingbing $116 million for tax evasion

Source:Global Times Published: 2018/10/3 13:00:15

Fan Bingbing  File photo:Xinhua




Top Chinese actress Fan Bingbing has been ordered to pay more than 800 million yuan ($116 million) in tax and fines, the country's tax authorities said on Wednesday. 

Fan apologized Wednesday on her official Sina Weibo account for tax evasion, saying she deeply regrets and is ashamed by her behavior. She said she accepts the penalties and will pay the taxes and fines despite all difficulties. 

Although Fan was paid 30 million yuan for her role in the film Unbreakable Spirit, she only declared 10 million yuan, while the other 20 million yuan was left out of her contract, thus evading 7.3 million yuan in taxes, according to an investigation conducted by the State Administration of Taxation and the Jiangsu Provincial Tax Service, the Xinhua News Agency reported on Wednesday.

Fan and her companies also owe 248 million yuan in taxes, the report said.

Authorities has ordered Fan to pay the said taxes, an overdue fee of 33 million yuan and a fine of 596 million yuan based on relevant laws and regulations, Xinhua reported.

Fan will have to pay about 884 million yuan by a deadline, according to the Xinhua report. However, the exact date was not mentioned.

If Fan meets the deadline, she will not face criminal charges. Otherwise, authorities will turn her over to public security authorities for further investigation, Xinhua reported.

Fan's agent, surnamed Mou, was accused of hiding and destroying accounting books when tax authorities conducted an investigation in June. Mou has been taken into custody for further questioning, the report said.

Local taxation authorities are also being investigated for not fulfilling their duty, it said.

Further supervision over the film and television industry has already begun. People in the industry who voluntarily settle their taxes by December 31 will not face penalties or fines, the report said.

The taxation authorities' investigation came after Cui Yongyuan, an outspoken former TV host, claimed in May that Fan was involved in tax fraud.

In July, the State Administration of Taxation issued a notice aimed at tackling illegal practices including the "yin yang contract," which means one was offered a contract involving a smaller amount of money just for tax purposes, while another contract provides a bigger amount for the actual payment.

Global Times



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