The Star Malaysia

The taxman sees stars

Many China celebritie­s earn big bucks and some dodge taxes. The Fan Bingbing case is a clear warning to evaders.

- newsdesk@thestar.com.my Beh Yuen Hui

VARIETY TV shows perhaps offer the most lucrative and easiest jobs for celebritie­s in China.

Insiders have revealed that there are several categories of celebritie­s and these determine how much they earn. For example, those in the so-called S-class are paid around 5mil yuan (RM3mil) per episode for shooting reality TV shows, while an A-class star can command 20mil yuan (RM12mil).

This ridiculous­ly sky-high remunerati­on has caught the attention of the authoritie­s, prompting them to come up with “ceiling wages” for celebritie­s appearing in variety, game and reality shows.

The National Radio and Television Administra­tion has decided that the maximum payment to an artiste is 800,000 yuan (RM485,000) per episode and 10mil yuan (RM6mil) per season, according to Beijing Daily.

Before this, it was reported that actor-director Xu Zheng received 6mil yuan (RM3.64mil) for hosting one episode of Lost in Food.

Xu, who starred in Lost in Thailand and Lost in Hong Kong,

among the highest-grossing Chinese films, raked in a total of 75mil yuan (RM45.5mil) from the 12-episode TV show, aired on Zhejiang Satellite TV in 2016.

Another reality show that features a number of popular male artistes is Go Fighting!, one of China’s highest rated reality game show. It features stars competing against each other in challenges and missions.

It was said that actors Huang Lei and Huang Bo were paid 30mil yuan (RM18mil) and 48mil yuan (RM29mil) per season, while Sun Honglei received 3mil (RM1.8mil) per day.

The local news also reported that actor Liu Ye received 4.5mil yuan (RM2.7mil) per day for taking part in the third season of reality show

Where Are We Going, Dad? with his son Noe.

Taiwanese screen goddess Brigitte Lin, who for the first time signed up for a TV series 20 years after retiring from acting, was rumoured to be paid 2.4mil yuan (RM1.4mil) per episode for shooting

Up Idol, a reality show that also has other female celebritie­s such as Athena Chu and Ada Choi from Hong Kong.

Last year, actress Fan Bingbing topped the list of 2017 Highest Revenue Celebritie­s, with an income of 244mil yuan (RM148mil).

She was paid 60mil yuan (RM36.4mil) per season for shooting China’s version of The Amazing Race.

With such stunning numbers, guess how much tax these celebri- ties pay. Are they honest in fulfilling their responsibi­lity as citizens?

Fan was China’s highest-paid female actor for four consecutiv­e years. She received 30mil yuan (RM18mil) for working on Chinese film The Bombing, but declared only one-third of the amount to the tax office.

The 37-year-old, who is engaged to actor Li Chen, failed to pay about 7.3mil yuan (RM4.5mil) in personal income tax and business taxes.

Apart from this, investigat­ors also found that Fan and her firms have tax arrears amounting to 248mil yuan (RM150.5mil), of which 134mil yuan (RM81mil) has been evaded, reported Xinhua.

Last Wednesday, when the country was enjoying the week-long National Day celebratio­n, the State Administra­tion of Taxation (SAT) dropped a bombshell by ordering Fan to pay hefty taxes and fines of nearly 884mil yuan (RM536.4mil).

Fan’s agent, identified in news reports only as Mou, and other related personnel have been placed under “compulsory measures” by police for obstructin­g the investigat­ion process.

( Under China’s Criminal Procedure Law, compulsory measures can include arrest, detention, summons, bail pending trial, or residentia­l surveillan­ce.)

They were found to have instigated employees to hide and deliberate­ly destroy accounting material of the companies involved.

Fan’s case is the second most high-profile tax evasion case involving a celebrity since that of veteran actress Liu Xiaoqing. In 2002, Liu was ordered to pay nearly 20mil yuan (RM12mil) in tax arrears and fines, and was jailed for 14 months.

Many people have wondered why Fan was not jailed.

SAT has explained that tax evaders would be exempted from criminal charges if they pay the amounts due within the period determined by the tax authoritie­s.

However, many Chinese still believe that Fan should have faced criminal penalties. They argue that her case may lead to other celebritie­s believing that money can settle everything.

Chinese legal experts, however, say Fan’s hefty fines underline a resolve to fight tax evasion.

“The case sends a strong warning to those who flout the tax law and is a good lesson for the public,” Zhang Bin, a researcher with the National Academy of Economic Strategy, told Xinhua.

Meanwhile, Lin Yongjian, deputy head of China Television Artists Associatio­n, said the case is ultimately good for the entertainm­ent sector.

“Film stars make easy money. Despite such fame and wealth, some of them choose not to fulfil their tax obligation­s. It is not okay,” he added.

Fan has apologised, saying she was ashamed and felt bad over what she had done.

 ?? — AFP ?? I’m sorry: Fan has apologised, saying she was ashamed and felt bad over what she had done.
— AFP I’m sorry: Fan has apologised, saying she was ashamed and felt bad over what she had done.

Newspapers in English

Newspapers from Malaysia