Tax spotlight turns to other Chinese celebs

Fan Bingbing (above).
Fan Bingbing (above).

BEIJING • Fan Bingbing's tax-evasion case has been dealt with, but it is now a taxing time for other Chinese celebrities to meet a Dec 31 deadline.

They and entertainment companies have been directed to re-examine their taxes dating to 2016.

Xinhua reported that the State Administration of Taxation is stepping up the pressure to address the issue of tax evasion stemming from the use of dual contracts, with the lower one used for tax reporting.

Those who make good on unpaid taxes before Dec 31 will not be penalised, the statement said.

Last week, Fan, who was out of the public eye when she was investigated, was fined 884 million yuan (S$177 million).

There is uncertainty over whether she is still detained.

The authorities also announced that five officials from the regional taxation office of Wuxi in Jiangsu province, where Fan's company is based, have been either fired or demoted.

According to trade publication Variety, the share price of Huayi Brothers, the producer of Cell Phone 2, a movie which Fan worked on, has plunged more than 50 per cent from its peak at the start of this year.

A version of this article appeared in the print edition of The Straits Times on October 10, 2018, with the headline 'Tax spotlight turns to other Chinese celebs'. Print Edition | Subscribe