Fan Bingbing was fined 850 million yuan for tax evasion and apologized on Weibo

Reporters learned from the State Administration of Taxation and the Jiangsu Provincial Taxation Bureau that in early June this year, after the public reported Fan Bingbing's tax-related "yin-yang contract" issues, the State Administration of Taxation attached great importance to it and immediately instructed the tax authorities in Jiangsu and other places to conduct investigations and verifications in accordance with the law. The facts of the case have now been clarified.

According to the investigation and verification, Fan Bingbing actually received 30 million yuan in salary during the filming of the movie "The Bombing", of which 10 million yuan has been declared for tax payment, and the remaining 20 million yuan was used to evade personal income tax of 6.18 million yuan by splitting contracts, and underpaid business tax and surcharges of 1.12 million yuan, totaling 7.3 million yuan. In addition, it was found that Fan Bingbing and the company she served as the legal representative underpaid taxes of 248 million yuan, of which 134 million yuan was evaded.

For the above-mentioned illegal acts, according to the jurisdiction designated by the State Administration of Taxation, the Jiangsu Provincial Taxation Bureau, in accordance with Articles 32 and 52 of the Tax Collection and Administration Law of the People's Republic of China, recovered 255 million yuan in taxes from Fan Bingbing and the companies of which she is the legal representative, and collected an additional late payment fee of 33 million yuan ; in accordance with Article 63 of the Tax Collection and Administration Law of the People's Republic of China, Fan Bingbing was fined 4 times, totaling 240 million yuan, for evading taxes by splitting contracts to conceal her true income, and was fined 3 times, totaling 239 million yuan, for evading taxes by using the studio account to conceal the true nature of her personal remuneration; the company of which she is the legal representative was fined 1 times, totaling 946,000 yuan, for evading taxes by understating income; in accordance with Article 69 of the Tax Collection and Administration Law of the People's Republic of China and Article 93 of the Detailed Rules for the Implementation of the Tax Collection and Administration Law of the People's Republic of China, the two companies of which she is the legal representative were fined 0.5 times for failing to withhold and pay personal income tax and for illegally providing convenience to assist in underpayment of taxes, totaling 51 million yuan and 65 million yuan respectively.

In accordance with Article 42 of the Administrative Penalty Law of the People's Republic of China and the relevant provisions of the Jiangsu Province Administrative Penalty Hearing Procedure Rules, on September 26, the Jiangsu Provincial Taxation Bureau issued a "Tax Administrative Penalty Notice" to Fan Bingbing in accordance with the law, and Fan Bingbing did not apply for a hearing. On September 30, the Jiangsu Provincial Taxation Bureau formally issued a "Tax Processing Decision" and a "Tax Administrative Penalty Decision" to Fan Bingbing in accordance with the law, requiring her to pay the recovered taxes, late payment fees, and fines within the prescribed period after receiving the above-mentioned processing and penalty decisions.

According to Article 201 of the Criminal Law of the People's Republic of China, since Fan Bingbing was punished by the tax authorities for tax evasion for the first time and had not been criminally punished for evading tax payment before, if the above-mentioned taxes, late payment fees and fines that are classified as tax evasion are paid within the prescribed period after the tax authorities issue a notice of recovery, criminal liability will not be pursued in accordance with the law . If taxes and late payment fees are not paid within the prescribed period and administrative penalties are not accepted, the tax authorities will transfer them to the public security organs for handling in accordance with the law.

After investigation, it was found that in June 2018, during the tax authorities' investigation of the companies controlled by Fan Bingbing and her agent Mou Guang, Mou Guang instructed company employees to conceal and deliberately destroy the accounting vouchers and accounting books of the companies involved, obstructing the tax authorities' investigation in accordance with the law, and suspected of committing a crime. Mou Guang and others have now been taken compulsory measures by the public security organs in accordance with the law, and the case is under further investigation.

The State Administration of Taxation has instructed the Jiangsu Provincial Taxation Bureau to hold the relevant persons in charge and relevant responsible personnel of the former Wuxi Local Taxation Bureau, the former Sixth Branch of the Wuxi Local Taxation Bureau and other competent tax authorities accountable in accordance with the law. At the same time, the State Administration of Taxation has deployed work to standardize the tax order of the film and television industry. Film and television companies and related practitioners who conduct self-examination and self-correction before December 31, 2018 and pay back taxes to the competent tax authorities will be exempted from administrative penalties and fines; those who refuse to correct their mistakes will be severely dealt with in accordance with the law; the heads and relevant personnel of regional tax authorities who have serious tax evasion and fail to perform their duties in accordance with the law will be held accountable or held legally responsible in accordance with the law according to different circumstances.

Today, Fan Bingbing also posted an apology letter on her Weibo account, which she had not updated for several days. In the apology letter, she said that she fully accepted the series of penalty decisions made by the tax authorities in accordance with the law after the investigation. She will raise funds, pay back taxes and pay fines in accordance with the final penalty decision of the tax authorities.