Chinese film and TV firms and personnel have paid a total of 11.7 billion yuan (about 1.7 billion U.S. dollars) in back taxes, among which 11.5 billion yuan having been paid as of the end of 2018, since a campaign to regulate the industry’s taxes was launched last year, according to Xinhua News Agency.
The State Administration of Taxation in October issued a notice, requiring taxpayers in the film and TV industry to conduct self-examinations of their tax payments since 2016 from October 10, 2018. Those who make remedial payments to tax authorities before December 31 will be exempt from administrative punishment and penalties.
All levels of tax authorities were ordered to inform the policy to production companies, talent agencies, performing companies, celebrities' studios and personnel. And during the implementation, helps needed by the taxpayers have been offered to better protect their legal rights.
Liu Jianwen, president of the China Association for Fiscal and Tax Law, said that the tax regulation conducted under law has manifested the entity responsibility of taxpayers in the film and TV industry, which has a positive meaning in tackling the industry's prominent problem, improving the taxation supervision system, promoting the industry's healthy development, and enriching socialist culture.
The regulation on tax payment has supplemented the shortcomings in the development of the film and TV industry, solved the industry's risks, educated its employees, and created a more favorable environment and conditions for the sustainable and healthy development of the industry, said Yan Shaofei, secretary general of the China Film Association.
The campaign will continue this year, with those who refuse to take action now being severely punished.
In June 2018, Chinese actress Fan Bingbing was accused of using "Yin-Yang" dual contracts to hide her actual income, who was later found guilty of tax evasion.
She and her companies were fined by Chinese tax authorities for some 880 million yuan in October, including tax arrears amounting to 248 million yuan.
