Chinese superstar Fan Bingbing has been ordered to pay more than $129 million in taxes and fines, state media said yesterday, months after the once ubiquitous celebrity disappeared from the public eye. The 36-year-old actress, model and producer has been a household name in China for years and tasted Hollywood success with a role in the 2014 blockbuster “X-Men: Days of Future Past.” But her once active social media presence went silent in May after allegations that she had evaded taxes on a lucrative movie shoot, charges her studio called “slander”.
She has not been seen in public since. Chinese tax authorities have now ruled that both Fan and companies controlled by her failed to pay tens of millions of dollars in taxes, the official Xinhua news service reported yesterday. The report said Fan would have to pay a total of 883 million yuan ($129 million) in owed taxes, fines and penalties, adding that she would avoid criminal prosecution as long as she met a repayment deadline. At least one other person implicated in the probe has been detained for further investigation related to concealing and “deliberately destroying” accounting documents, Xinhua added without detailing that person’s identity.
Following the investigation into Fan, authorities have declared a wider crackdown on the entertainment industry, Xinhua said. Offenders are being offered an amnesty until December 31 to pay up any taxes they owe. Fan’s troubles began in May soon after she appeared on the red carpet at Cannes film festival when a former presenter for state-run China Central Television (CCTV) posted a purported movie shoot contract.
The documents suggested Fan was officially paid 10 million yuan ($1.45 million) for a project while unofficially receiving an additional 50 million yuan-all for four days of work. So-called “yin and yang” dual contract arrangements-with one contract for income declared to tax authorities while the other is kept secret-are reported to be used in China to evade taxes. After the contract documents went viral, the national tax administration announced it had instructed authorities in eastern Jiangsu province to investigate alleged use of such dual contracts in the entertainment industry.
Fan was not mentioned by name but she has businesses registered in Jiangsu. Last year, Fan topped Forbes magazine’s list of top-earning Chinese celebrities with income of 300 million yuan ($43 million). She is one of five leading international actresses cast in the forthcoming Hollywood spy thriller “355”, alongside Jessica Chastain and Penelope Cruz. But her star has dimmed among authorities in China. A recent report by academics ranking the “social ranking” of Chinese celebrities placed Fan at the very bottom with a score of zero. The study was widely carried by Chinese state media.-AFP