Chinese Authorities to Investigate Fan Bingbing for Tax Evading

By M. Grace, June 04, 2018 22:06 PM

Fan Bingbing at the Southeast Asia Premiere for X-Men: Days of Future Past(Wikimedia Commons)

Chinese tax authority started investigating on tax evasion practices in the film and television industry.

In a statement of State Administration of taxation on June 4, Monday, any illegal activities uncovered will be punished in line with the law.

Their statement is in response to the recent trending discussion online claiming that Fan Bingbing, a popular Chinese actress might have evaded paying tax by only reporting a fraction of her total income.

Earlier this week, Cui Yongyuan, a famous cultural critic and former CCTV anchor, posted on his social media account regarding the contract for a 4-day shoot involving the actress. He alleged that Bingbing had signed contracts that will pay her for 60 million yuan. The remaining part of her income (50 million yuan) , which is larger than the reported amount (10 million yuan) was allegedly paid through separate agreements, which is a way to avoid tax payment.

"It might be a single case, or a hidden rule within the film and television industry," Cai Daotong, director of the Law School of Nanjing Normal University said and added that the tax authority needs to investigate whether there are illegal activities during the process of reporting of tax.

"But once it has been proved, the tax authority has the duty to pursue the tax payment and also a fine for delaying payment. The case will be sent to police for further investigation if relevant people are suspected of crimes," Cai said.

Bingbing and her studio denied the allegations and said that they will duly cooperate with the investigations.

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