GT Online: Two Web Hosts Fined Over 90 Million Yuan for Tax Evasion in China

Written by: Ermat

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Zhu Chenhui and Lin Shanshan, two online anchors, have been recovered by China’s tax authorities for alleged tax evasion and paid huge fines, Radio Free Asia reported on Nov. 20.

Since September this year, China’s tax authorities have tightened control over taxation in the cultural and entertainment sector, checking the personal studios and businesses of celebrity entertainers and web hosts. Zhu Chenhui and Lin Shanshan evaded personal income tax by setting up multiple sole proprietorships between 2019 and 2020 and fictitiously converting individual salary and labor compensation income received from the enterprises. The official website of Hangzhou Municipal Taxation Bureau of the State Administration of Taxation of China issued an article this Monday (22nd) that web hosts Zhu Chenhui and Lin Shanshan will be recovered by law for tax evasion, amounting to 65,553,100 yuan and 27,672,500 yuan, respectively.

According to China Accounting News, after the stars set up studios, they can count their personal or family and other consumption into the business, or even falsely invoice, thus reducing their tax burden. And if the star pays personal tax on salary and labor compensation, there can be no room for the aforementioned operation, except for the inherent deductions. The aforementioned Hangzhou tax bureau informed that the tax department found that Li Zhiqiang allegedly planned, implemented and helped Zhu Chenhui and Lin Shanshan to evade tax and interfered with the investigation of the tax authorities. Currently, the tax department has filed a case against Li Zhiqiang and will deal with him separately according to the law.

The Chinese Communist Party has put its hands on the stars. It seems that the tide of celebrities paying back taxes is coming.



Disclaimer: This article only represents the author’s view. Gnews is not responsible for any legal risks.

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