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China plans tax crackdown on richest entertainers, including online influencers

  • High-income stars who confess to tax evasion could receive lighter penalties, while the rest would face the full force of the law, new directive says
  • A ‘double-random’ system will match subjects with tax inspectors, with both sides under the scanner to deter officers from facilitating ‘cheats’

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Chinese live-streaming star “Viya” Huang Wei has an estimated net worth of more than US$30 million. Photo: VCG via Getty Images
Liu Zhenin Beijing
China is set to conduct regular tax investigations into top entertainers including online influencers, promising serious punishment for offenders amid a deepening crackdown on the entertainment industry and lucrative culture of fandom.
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High-income celebrities who self-report offences by the end of the year, however, may receive reduced penalties or exemptions, the country’s taxation authorities said in announcing the plans for greater scrutiny.

The planned inspections will be “double-random” – with both the subjects of the investigation and the inspectors assigned to be randomly selected and matched with each other, a State Taxation Administration (STA) notice announced on Saturday. Details and results from the investigation will be disclosed to the public in a timely and transparent way.

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High-income stars should “take the initiative to report and rectify their tax-related flaws” by the end of the year, the STA statement said.

Those who comply may benefit from reduced penalties or be exempted from punishment for their offences, whereas those who fail to do so will be subject to the full range of penalties by state administrative departments and industry associations.

“Those whose offences are serious shall be investigated and punished seriously according to the law,” the STA said.

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Under Chinese law, anyone failing to pay overdue taxes and any resulting fines within the deadline requested by the tax authorities will face criminal charges.

The STA announcement comes as the Communist Party steps up regulation of China’s entertainment industry following a series of major scandals, including massive tax offences.
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