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19:44 PDT 17/02/2018
by
Patrick Brzeski
The good thing for the star in conflict is that it could escape criminal prosecution if it paid the huge fine.
China's briefing Xinhua has published its first official notice on the mysterious case of the actress on the list of missing Fan Bingbing Wednesday – and the news about the star in trouble are really terrible.
The initial report suggests that Fan could be fined a total of 479 million RMB ($ 70 million), as well as another bill for tax arrears of $ 255 million ($ 27 million). If she pays the full amount of these sums, she can escape criminal prosecution.
The best-paid actress of China and the inescapable reference of luxury in the country, Fan has not been seen in public since July 1, when she found herself mingled with a public scandal highly publicized tax evasion. It has also remained silent on Chinese social media, where it has tens of millions of subscribers since July 23.
There was no immediate comment from Fan or his representatives.
Her mysterious disappearance prompted a wave of speculation among Chinese fans and viewers, rumors ranging from statements that she would be under the custody of the Chinese authorities to information that she had fled to Los Angeles to seek justice. Asylum in the United States.
The mystery of his place of residence and his sudden toxicity in the Chinese press have plunged into uncertainty several large-scale film projects, including the upcoming Universal Women's Thriller. 355, in which Fan had to play alongside Jessica Chastain, Penelope Cruz and Lupita Nyong & # 39; o. The American public is best known for its fans that Blink in the X Men franchise.
Fan's troubles began in June, when a former nationally-known TV host leaked documents online demonstrating an alleged tax evading scheme by a large unidentified star – instantly identified online as being Fan. The materials would have revealed the allegedly widespread, but quite illegal, practice of the "yin-yang contract", according to which the production companies would provide actors with two types of wage contracts: a small contract to submit to the tax authorities and a second one. the actual salary of the star is much greater. The leaked documents showed that Fan was trying to claim $ 1.56 million (RMB 10 million) for four days of work on a future Chinese film while his secret salary amounted to an additional $ 7.8 million. (50 million RMB).
Fan's representatives strongly denied these accusations, claiming that they constituted slander and that she had hired a major law firm in Beijing to investigate charges. However, various authorities of the Chinese government also announced the opening of a series of investigations, including one in Jiangsu Province of China, where is based Fan company.
Xinhua's report Wednesday said: "In June, after people had announced Fan Bingbing's" yin-yang contract "related to tax issues, the State Tax Administration was attaching a great importance to the case and was obliged to instruct the tax authorities of Jiangsu and other places.respect the law.Investigations were conducted to verify that the facts of the present case had been well verified. "
The report states that it was discovered that Fan had avoided paying taxes multiple times, with sums totaling hundreds of millions of yuan.
"September 30, report continues", Jiangsu Provincial Tax Office officially released [its decisions concerning] Fan Bingbing, asking them to collect taxes, late fees and fines. "The notice adds that, if many fines are paid to Fan" within the time limit after the tax authorities issued the collection notice, its criminal liability "If it does not meet the payment deadline , his file will be "transferred to the public security organ for it to be treated in accordance with the law".
However, not all parties associated with Fan's case seem to have had a chance to escape criminal prosecution. Xinhua reports refer to a "certain person" of Fan's company in Jiagsu – considered by many netizens in China to be his supervisor – who allegedly destroyed accounting documents in an attempt to obstruct the Investigation by the authorities. The person was arrested.
The statement also contains a stern warning to the Chinese entertainment industry as a whole, indicating that the State Administration of Taxation has uncovered broad signs of yin-yang procurement and of tax evasion and used to clean up and regulate the film and television sectors.
"Film and television companies and related employees who have self-examined and who have recovered before December 31, 2018 and who have paid taxes due to the competent authorities are exempt from administrative penalties and shall not be allowed to do so." subject to a fine ". But those who "seriously avoid taxes and do not fulfill their obligations in accordance with the law will be held responsible and prosecuted for legal liability".
Assuming that most local entertainment companies are guilty of tax evasion, the remaining three months of 2018 could weigh heavily in the results of the largest Chinese studios. Meanwhile, the tax collector of the Chinese government seems to have a boon.
More soon…
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