China tech crackdown: Hangzhou fines top influencer Viya a record US$210 million for tax evasion
- Viya has been fined a record 1.34 billion yuan for tax evasion by tax authorities in Hangzhou, a leading e-commerce hub
- Viya has cooperated with the tax authority and she will not face any criminal charges if she pays the fine, authorities say
The tax bureau of China’s e-commerce hub Hangzhou has fined leading e-commerce influencer Viya a record 1.34 billion yuan (US$210 million) for tax evasion, in a move bound to send shock waves across the country’s live-streaming industry.
Huang Wei, known as Viya online, avoided more than 700 million yuan in total taxes from 2019 to 2020 through a slew of tax evasion methods, including hiding commission fees, declaring personal wages as corporate income, and omitting reports of taxable income, according to a statement published on Monday by the Zhejiang Provincial Tax Service, under the State Taxation Administration.
Taobao is operated by Alibaba Group Holding, which owns the South China Morning Post.
Zhu Chenhui, known as Xueli Cherie online, and Lin Shanshan, two other influencers fined for tax evasion, have disappeared from the internet recently, with their social media accounts, Taobao stores and official company websites inaccessible for several days. All three influencers were fined by the Hangzhou tax authorities, where e-commerce giant Alibaba is headquartered.
Viya and Dong Haifeng, her husband, published apology letters on Weibo after the fine was announced. “I completely accept the punishment made by the tax department and will actively raise money to pay [the fine] on time,” she said.
