[ad_1]
BEIJING – China on Wednesday accused its most famous actress, Fan Bingbing, of a multimillion-dollar tax evasion plan and warned other TV and film industry actors to do the same. light or suffer the same fate.
Authorities fined 37-year-old Ms. Fan a fine of nearly $ 70 million in unpaid taxes and penalties after an investigation revealed that she and her family employees of its production company had underreported its revenue from its blockbusters – a popular practice in China, not just in the entertainment industry.
In her first public statement since her withdrawal from public view four months ago, Ms. Fan apologized contritely and pledged to pay the fine to avoid a criminal investigation.
The tax authorities of Beijing and Jiangsu, the province where his production company is located, said that, in the first offense of Ms. Fan, she would not be charged. as long as she would pay an additional $ 60 million fine with her company. recover the taxes due by his company.
"I went through pain and suffering that I had never known before," Fan wrote in an article published on Weibo, the website similar to Twitter, since June 2. "I had a deep thought about myself. I feel ashamed and guilty of what I've done. "
Others will face charges, however. In a statement to the state-run media, the authorities reported potentially criminal acts committed by company employees, including obstruction of the tax investigation. According to the statement, a person – his agent, Mou Enguang, was arrested, according to media reports.
The importance of Ms. Fan suggests that the authorities intended to send a wider signal during the investigation. With regard to China's heavily censored entertainment industry, the government is particularly sensitive to the influence that the behavior of its stars may have – for better or for worse – on public opinion.
Shortly after the start of the investigation in June, the government announced that it would impose new limits on actors' salaries, even in privately financed films. No actor can now earn more than 70% of what the entire cast achieves or more than 40% of the production costs of a movie. According to the statement, the industry "distorts social values" and "favors trends in the cult of money" with disproportionate compensation.
The National Tax Administration has warned in a statement that other players in the entertainment industry could also be investigated unless they apply for the untaxed income tax return. He set the December 31 deadline, promising that those who voluntarily bend would not have to pay any penalties.
For Ms. Fan, the damage to reputation has already been done. She was, until this summer, one of China's most recognizable women, having participated in dozens of movies and television series and gained global recognition with roles in "X-Men" franchises And Iron Man.
In May, during the Cannes Film Festival, which played an annual star role, she joined Jessica Chastain, Lupita Nyong'o, Marion Cotillard and Penélope Cruz to promote their roles as superspies in planned thriller, "355."
The fate of this role, as well as many brand contracts that have been canceled or brutally suspended since then, remains to be seen. It is unclear where she currently stands, although unsubstantiated information indicates that she was reportedly arrested during the investigation.
Ms. Fan's sudden drop in public grace has been one of the biggest news in China in recent months. She worried fans and colleagues, while delighting others who relished the adventures of a rich celebrity.
In a comment that the censors seemed to want to suppress, netizens reacted online Wednesday with both a deep disdain and an incredible disbelief, namely that such a large tax evasion fraud deserved only a fine.
"Ordinary people who earn a small salary should always pay their taxes honestly," wrote a Weibo user.
Ms. Fan's legal problems erupted after a personal grudge that was not directly related to her attracted public attention. Cui Yongyuan, a retired state television presenter, issued charges in May over Weibo, which included the photo of two contracts for an upcoming film, a sequel to one of the first Ms. Fan's success, "Cell Phone", published in 2003. Present a salary of $ 1.6 million to the tax authorities, the second an actual payment of $ 7.8 million.
The practice of dual contracts, called "yin and yang" contracts, is widespread in many sectors. Mr. Cui's anger seemed to be aimed as much at Cell Phone Director Feng Xiaogang as Ms. Fan. Mr. Cui had previously accused him of slander because the conspiracy – in which a prominent TV host had an affair with an assistant, played by Ms. Fan – was striking, albeit inaccurate, a parallel with Mr. Cui's own career.
In their statement, the authorities indicated that Ms. Fan had used such double contracts at least four times. He detailed the one involving a Chinese production, starring Bruce Willis and known in English as the "Unbreakable Spirit", about the Japanese bombardment of China's capital, Chongqing, between 1938 and 1943.
In this case, the authorities said that Fan signed a 20 million yuan contract worth nearly $ 3 million, but said only 10 million yuan in the contract submitted to the tax authorities.
The release of the film, originally scheduled for August, was also delayed and its role would have been changed.
In addition to her apologies, Ms. Fan has presented an extraordinary statement of loyalty to the state and the Communist Party, which controls her for her career successes so far.
"Without the party and the good policies of the state, without the love of the people, there would have been no Fan Bingbing," she wrote.
Austin Ramzy contributed to Hong Kong reports. Claire Fu and Iris Zhao contributed to Beijing's research.
Follow Steven Lee Myers on Twitter: @stevenleemyers.
