China fines social media influencer $2.8 million for tax evasion

(ECNS) - Chinese tax authorities have fined a social media influencer nearly 19 million yuan ($2.8 million) for tax evasion after investigators found he underreported income over several years, officials said.

The State Taxation Administration said food influencer Bai Bing evaded 9.1 million yuan in personal income tax, value-added tax and deed tax between 2021 and 2024 by misreporting income and channeling personal earnings through business entities.

Authorities ordered him to repay unpaid taxes, late fees and fines totaling 18.9 million yuan, all of which have now been collected.

Investigators said Bai, who has more than 40 million followers on Douyin, earned substantial income from advertising partnerships but consistently underreported his personal income, prompting a tax probe.

He was found to control more than a dozen entities, including a shell sole proprietorship registered in Chongqing that reported large revenues despite having no employees or real operations.

Officials determined that income from his video production should have been classified as personal labor income, but was instead routed through business entities to reduce tax liabilities.

The investigation found Bai also used affiliated companies to channel funds through a human resources firm before returning them to personal accounts. Personal luxury purchases, including designer bags and jewelry, were recorded as business expenses, authorities said.

Bai admitted the violations, authorities said.

(By Zhang Jiahao)