×
You will be redirected back to your article in seconds

Chinese Stars, Entertainment Companies Pay $1.7 Billion in Back Taxes

Chinese film and TV stars and entertainment companies have forked over an additional $1.7 billion (RMB11.7 billion) in taxes in the wake of last summer’s scandal surrounding actress Fan Bingbing and a subsequent government crackdown. The figure was announced late Tuesday by China’s State Tax Administration.

Chinese authorities launched a probe into the tax affairs of the entertainment sector last October. Companies and individuals were asked to examine and, if necessary, correct their post-2016 tax payments by the end of December. Those who complied would be exempt from penalties for tax evasion, the tax administration said.

In July last year, Fan was accused of hiding a proportion of her income from a film production through the use of multiple contracts, only some of which were declared to the tax authorities. It also emerged that she had set up companies in various Chinese provinces that offered lower tax regimes.

In October, after vanishing from public view for months, Fan resurfaced. She apologized and was ordered to pay $130 million (RMB884 million) in back taxes and penalties on behalf of herself and her companies.

Popular on Variety

The huge amount collected from other stars and entertainment firms – the figure is roughly equal to 20% of China’s gross box office last year – reinforces the argument that the use of double contracts and tax loopholes was widespread throughout the Chinese industry. The number of productions initiated in China slowed sharply from last summer as production companies and talent reassessed their financial situation and relationships.

“Industry workers should practice socialist core values…and strive to be entertainment workers with belief, empathy and sense of responsibility in the new era,” authorities said, according to state news agency Xinhua.

More Film

  • - New York, NY - 10/9/19

    #GoldOpen Launches Advisory Council, 'Golden Rider' to Promote Multicultural Films

    Diversity-focused nonprofit Gold House is launching an entertainment advisory council made up of industry leaders and a Golden Rider initiative to incentivize diverse representation in film, starting with the Asian diaspora. Both the council and rider are through the organization’s #GoldOpen venture, which supports the opening weekends of multicultural films.  The council — whose members [...]

  • Taylor Swift Variety Cover Story Sundance

    Taylor Swift: No Longer 'Polite at All Costs'

    “Not a shot. Not a single chance. Not a snowball’s chance in hell.” Taylor Swift — who, at 30, has reached a Zen state of cheerful realism — laughs as she leans into a pillow she’s placed over her crossed legs inside her suite at the Beverly Hilton Hotel, leaning further still into her infinitesimal odds of winning [...]

  • The Island

    ‘The Island,’ ‘Calamity,’ 'Piano Player' Highlight Cartoon Movie 2020 Lineup (EXCLUSIVE)

    BARCELONA – Rémi Chayé’s “Calamity, a Childhood of Martha Jane Cannary,” Anca Damian’s “The Island,” Fernando Trueba and Javier Mariscal’s “They Shot the Piano Player,” and Enrique Gato’s “Tad the Lost Explorer and the Curse of the Mummy” are among the sixty-six projects from twenty countries to be pitched at the 22nd Cartoon Movie, Europe’s [...]

  • Kirby Dick Amy Ziering

    'On The Record,' Russell Simmons #MeToo Doc, Charts Course to Sundance After Oprah Exit

    Update: A spokesperson for Kirby Dick and Amy Ziering says the filmmaking team will participate in print and broadcast interviews at the Sundance film festival. The accusers featured in the film are weighing press options at this time. Earlier, a spokesperson for the film “On The Record” confirmed to Variety that only photo calls would [...]

  • Ariel Winograd'TOD@S CAEN' film premiere, Los

    Viacom International Studios Signs First Look Deal with Ariel Winograd (EXCLUSIVE)

    MADRID  — Adding to a powerful and still growing talent roster, Viacom International Studios (VIS) has clinched a first-look deal with Argentine writer-director Ariel Winograd whose latest movie, “The Heist of the Century,” has just become one of the biggest Argentine openers in history. The multi-year pact takes in the development and production of not [...]

  • William Bogert Dead: 'Small Wonder' Actor

    William Bogert, Who Appeared in 'War Games,' 'Small Wonder,' Dies at 83

    TV, film and theater actor William Bogert, who appeared in a recurring role on 1980s sitcom “Small Wonder” and in films such as “War Games,” died Jan. 12 in New York. He was 83. On “Small Wonder,” which ran from 1985 to 1989, Bogert played Brandon Brindle, the Lawsons’ neighbor and Harriet’s father who became [...]

More From Our Brands

Access exclusive content