Caixin
Aug 27, 2021 07:17 PM
ECONOMY

Troubled Chinese Star Ordered to Pay $46 Million for Tax Evasion

Zheng Shuang. Photo: VCG
Zheng Shuang. Photo: VCG

What’s new: The State Taxation Administration’s Shanghai branch has ordered once high-profile Chinese actress Zheng Shuang to pay 299 million yuan ($46 million) in overdue taxes, late fees and fines, according to an official statement (link in Chinese) on Friday.

The amount is made up of about 71.8 million yuan in overdue taxes, 8.9 million yuan in late fees and a much larger 219 million yuan in fines, the authority said (link in Chinese).

Zheng was accused of massive tax evasion, including by falsifying her personal income into corporate income, according to the statement.

The context: The Shanghai tax authority started to investigate the case in April after Zheng was reported by her former partner Zhang Heng for alleged tax evasion. The pair had been caught in a crossfire involving a loan dispute and controversial child surrogacy.

Zheng’s case is the latest in a years-long regulatory crackdown on tax evasion and abnormally high income in the entertainment industry.

In 2018, Fan Bingbing, an A-list star in China, was found guilty of tax evasion and then ordered to pay more than 800 million yuan in overdue taxes, late fees and fines.

That year, authorities announced that the payment for the performers in a TV or film production should not exceed 40% of the production’s total costs, and a single performer’s salary should not exceed 70% of the total payment for all of the production’s performers.

Related: Surrogacy Scandal Star Hit With Allegations of Tax Evasion

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Guo Yingzhe (yingzheguo@caixin.com)

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