Star faces a taxing situation
Chinese tax authorities have ordered film and TV star Fan Bingbing and companies she represents to pay taxes and penalties totalling $130 million, ending speculation over the fate of one of the country’s highest-profile entertainers three months after she disappeared from public view.
Of the total amount, Fan is being personally fined about $70 million for tax evasion, according to an announcement carried Wednesday by China’s official Xinhua News Agency, citing tax authorities. (Figures are in U.S. dollars.)
Fan would not be investigated for criminal responsibility for tax evasion as long as the taxes, fines and late fees amounting to nearly $130 million are paid on time, the report says.
The announcement gave no indication of Fan’s whereabouts but indicated police are holding her agent for allegedly obstructing the investigation.
Fan has starred in dozens of movies and TV series in China and is best known internationally for her role as Blink in 2014’s X-men: Days of Future Past, a cameo in the Chinese version of Iron Man 3 and appearances on the red carpet in Cannes as recently as May. Before her disappearance, she had been booked to star with Penelope Cruz in the Hollywood film 355. She has a role in the upcoming Bruce Willis-adrien Brody feature Air Strike.
In Hollywood movies she is billed as Bingbing Fan.
Fan posted an apology on her official account on the social media site Weibo.com saying she accepts the tax authorities’ decision and would “try my best to overcome all difficulties and raise funds to pay back taxes and fines.”
“I am unworthy of the trust of the society and let down the fans who love me,” she wrote in her first update of her Weibo.com microblog since June 2.
A man surnamed Liang, who identified himself as a staff member of Fan’s studio when reached by phone, refused to comment on the announcement, or on Fan’s location.
Her disappearance coincided with a crackdown by the authorities on high salaries for actors that can eat up much of the cost of a production.
In June, regulators capped star pay at 40 per cent of a TV show’s entire production budget and 70 per cent of the total paid to all the actors in a film.
Chinese state media said the investigation served as a warning to anyone working in the country’s arts and entertainment industries. A separate Xinhua report said the penalties issued to Fan would promote the “sustainable and healthy development of the film and television industry and raise social awareness on paying taxes according to the law.”
Hu Xijin, editor of the Global Times tabloid known for its nationalist pro-communist Party opinions, said, “Fan’s case must be shaking the performing arts world.”
People who try to evade taxes now will have to cough them up sooner or later, Hu wrote on his social media page. “The bigger the brand, the more likely you are to attract scrutiny. Just suffer this financial loss to be spared greater disaster, moreover these are illgotten gains.”
The Xinhua report said Fan evaded about $1 million in taxes by using a secret contract worth nearly $3 million, that she signed for starring in Air Strike, the Chinese film also known as Unbreakable Spirit.
She instead paid taxes on a contract for only half that, $1.5 million, it said. The example refers to a reportedly common entertainment industry practice in which actors have a public contract stating an official salary and a private contract detailing actual, much higher pay.