Chinese actress heavily fined over Tax evasion

BEIJING: Chinese actress Zheng Shuang is facing a heavy punishment involving a total of 299 million yuan (about 46.1 million U.S. dollars) due to tax evasion, the State Taxation Administration (STA) said on Friday.
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.
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. – Agencies