Fan hit with US$ 129mil tax bill
Report: Superstar must pay on time to avoid court
BEIJING: Chinese superstar Fan Bingbing has been ordered to pay more than US$ 129mil (RM5 33.7mil) in taxes and fines, state media said, months after the once ubiquitous celebrity disappeared from the public eye.
The 36-year-old actress, model and producer has been a household name in China for years and tasted Hollywood success with a role in the 2014 blockbuster X-Men: Days of Future Past.
But her once active social media presence went silent in May after allegations that she had evaded taxes on a lucrative movie shoot, charges her studio called “slander”.
She has not been seen in public since.
Chinese tax authorities have now ruled that both Fan and companies controlled by her failed to pay tens of millions of dollars in taxes, the official Xinhua news service reported on Wednesday.
The report said Fan would have to pay a total of 883 million yuan (RM532mil) in owed taxes, fines and penalties, adding that she would avoid criminal prosecution as long as she met a repayment deadline.
At least one other person implicated in the probe had been detained for further investigation related to concealing and “deliberately destroying” accounting documents, Xinhua added without detailing that person’s identity.
Following the investigation into Fan, authorities have declared a wider crackdown on the entertainment industry, Xinhua said.
Offenders are being offered an amnesty until Dec 31 to pay up any taxes they owe.
Fan’s troubles began in May, soon after she appeared on the red carpet at Cannes film festival, when a former presenter for state-run China Central Television posted a purported movie shoot contract.
The documents suggested that Fan was officially paid 10 million yuan (RM6mil) for a project while unofficially receiving an additional 50 million yuan (RM30.1mil) – all for four days of work.
So-called “yin and yang” dual contract arrangements – with one contract for income declared to tax authorities while the other is kept secret – are reported to be used in China to evade taxes.
After the contract documents went viral, the national tax administration announced that it had instructed authorities in eastern Jiangsu province to investigate alleged use of such dual contracts in the entertainment industry.
Fan was not mentioned by name, but she has businesses registered in Jiangsu.
Last year, she topped Forbes magazine’s list of top-earning Chinese celebrities with an income of 300 million yuan (RM180.7mil). — AFP