In this Jan 21, 2021 photo, the cover of a fashion magazine shows Chinese actress Zheng Shuang at a newsstand in Beijing. (JADE GAO / AFP)
BEIJING – Chinese actress Zheng Shuang is facing a heavy punishment involving a total of 299 million yuan (about US$46.1 million) due to tax evasion, the State Taxation Administration (STA) said on Friday.
According to the investigation bureau of the Shanghai Municipal Tax Service, Zheng Shuang had failed to declare 191 million yuan of personal income
According to the investigation bureau of the Shanghai Municipal Tax Service, Zheng had failed to declare 191 million yuan of personal income, evaded tax of nearly 45.27 million yuan and accumulated tax arrears of 26.52 million yuan from 2019 to 2020.
Investigators also found that Zheng, together with a Beijing-based production company, severely violated the country's regulations on the allocation of TV drama production budgets and provided false documents when applying for the release of a TV drama.
To evade tax, a part of Zheng's personal income was reported as corporate revenue, while the remainder was paid as capital replenishment to a company under her de facto control via fake contracts, according to investigators.
ALSO READ: China targets tax evasion by film stars
She was fined 218.7 million yuan and asked to pay 71.79 million yuan in overdue taxes and 8.89 million yuan in late payment surcharges.
Zheng has paid all overdue taxes and late payment surcharges as requested, and tax authorities are urging her to pay the fines within the prescribed period of time, according to the STA.
The National Radio and Television Administration, China's broadcasting authority, voiced support for the decision of the tax authority to impose punishment on Zheng.
The administration has banned Zheng from taking part in any broadcast media production for her behavior, and vowed to step up the regulation of show business, particularly the salaries of performers.
Tax authorities will continue to work with broadcasting and film watchdogs to investigate, punish and expose tax fraud and deal with new means of tax evasion to promote the sound and long-term development of the country's film and TV industry, the STA said.