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Chinese film, TV stars paid $2.3 billion in additional taxes

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LOS ANGELES: Chinese film and TV stars have paid US$1.7 billion (S$2.3b) of additional taxes, following the mid-2018 scandal surrounding actress Fan Bingbing. The figure was announced on Tuesday by China's State Tax Administration.

Chinese authorities probed the taxation affairs of the entertainment sector in October.

Companies and individuals were asked to examine and self correct their post-2016 tax affairs, by the end of last month. Those that complied would be exempt from further penalties for tax evasion, the Tax Administration said.

In July, Fan was accused of hiding a part of her income from film production through the use of multiple contracts, only some of which would be declared to the tax authorities.

She had also set up companies in some regions to make use of lower tax regimes offered by some of China's provinces.

In October, after missing from public view for months, Fan resurfaced.

She apologised and was ordered to pay US$130 million of back taxes and penalties.

The huge scale of the other celebrities' unpaid tax bill - equal to roughly 20 per cent of China's gross box office last year - reinforces the argument that the use of double contracts and tax loopholes was widespread throughout the Chinese entertainment industry. - REUTERS

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