Tax. Photo: VCG

The State Taxation Administration on Saturday issued a notice strengthening tax levies on the entertainment industry as tax evasions and other scandals continue to hit Chinese actors and actresses.  

The notice said it will undertake tax inspections randomly on celebrities like pop stars and online live-streamers, and will reveal the inspection results to the public in due time.

The administration will seek to guide the brokering enterprises engaged by celebrities or livestreamers in accordance with laws and regulations to stop tax evasion and improve the accounting system. Celebrities and live-streamers suspected of possible tax evasion activities will be given one-to-one risk reminders who are required to rectify promptly.

Those who voluntarily report tax-related problems such as evasions and make timely corrections before the end of 2021 could be given lighter or mitigated penalties, or will be exempted from punishment in accordance with the law. If the circumstances are serious, they shall be investigated and bear legal liability, said the notice.

Tax authorities at all levels should not implement tax incentives that are set up illegally that run counter to law and regulations, according to the notice.

In August this year, the taxation administration ordered pop star and actress Zheng Shuang to pay 299 million yuan ($46 million) in administrative fines for a slew of serious tax evasions in the past years, a move aimed at tightening tax supervision of high-income celebrities and ensuring tax fairness for the society as a whole. 

Chinese observers noted that the tax supervision measures will be further tightened as China is set to promote common prosperity, a national goal.

Global Times