China orders Fan Bingbing to pay massive tax fine

CHINESE TAX AUTHORITIES have ordered X-men star Fan Bingbing and companies she represents to pay taxes and penalties totaling $130 million but would spare her from criminal prosecution, state media said Wednesday.

The announcement ended months of speculation since Fan disappeared from public view three months ago amid reports she was being investigated for tax fraud. Of the total amount, Fan is being personally fined around $70 million for tax evasion. Xinhua News Agency cited tax authorities as saying Fan would not be held criminally accountable for tax evasion as the taxes, fines and late fees amounting to nearly 900 million yuan ($130 million) were paid on time.

The announcement, carried by Xinhua, gave no indication as to Fan’s whereabouts but indicated her agent was being held by police for allegedly obstructing the investigation.

Fan posted an apology on her official account on the social media site Weibo. com saying that 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.

Fan evaded 7.3 million yuan in taxes by using a secret contract worth 20 million yuan that she signed for starring in the film Air Strike. She had instead paid taxes on a contract for only 10 million yuan. This referred to a reportedly common entertainment industry practice - an actor having a public contract stating an official salary and a private contract detailing actual, much higher pay.

I am unworthy of the trust of the society and let down the fans who love me.” Fan Bingbing