At the beginning of April this year, Shanghai Municipal Tax Service, State Taxation Administration accepted the report about actress Zheng Shuang suspected tax evasion according to the law.
Recently, It has identified Zheng Shuang’s failure to declare personal income of 191 million yuan from 2019 to 2020 in accordance with the law, tax evasion of 45,269,600 yuan, and other tax underpayments of 26,520,700 yuan.
It also made a decision to process and punish Zheng Shuang by recovering taxes, adding late fees and imposing fines totaling 299 million yuan in accordance with the law.
Zheng Shuang’s aforementioned acts violate the requirements of the Country’s Propaganda Department, the Ministry of Culture and Tourism, the State Administration of Taxation, National Radio and Television Administration, the National Film Administration, and other departments to strictly prohibit the “sky-high shooting remuneration” and “yin-yang contract” in the film and television industry since 2018.
The subjective intention of Zheng Shuang evading taxes is obvious. She seriously disrupts the order of tax collection and control and violates the relevant tax laws and regulations. So the taxation department will deal with it strictly according to the law.
Shanghai Municipal Tax Service, State Taxation Administration, in accordance with the Law of the People’s Republic of China on Tax Collection and Administration, the Law of the People’s Republic of China on Individual Income Tax, the Provisional Regulations of the People’s Republic of China on Value-Added Tax and other relevant laws and regulations, recovered tax, imposed late payment fees and fined Zheng Shuang a total of 299 million yuan.
Zheng Shuang did not raise any objection when the taxation department served the administrative treatment and punishment decision, indicated that she would not reconsider or appeal, and will pay all the taxes and late fees within the prescribed period.
The taxation department is urging her to pay off the penalty within the prescribed period according to law.
At the same time, the taxation department found that one of the reporters in this case, Zhang Heng, as the agent of Zheng Shuang’s “A Chinese Ghost Story” project, allegedly planned the splitting of the contract of 160 million yuan film remuneration, set up the “cover company” and directly operated the specific execution of the contract, collection of payment and other activities to help Zheng Shuang evade tax.
Shanghai Municipal Tax Service, State Taxation Administration has filed a case against Zhang Heng according to the law and will be dealt with separately according to the law.
In addition, the relevant companies are suspected to have facilitated Zheng Shuang’s splitting of contracts and concealment of film pay, helping Zheng Shuang to evade tax and other tax-related illegal acts, and the taxation department has also filed a separate case according to the law.
Will Zheng Shuang be held criminally liable?
Zheng Shuang is the first time to be administratively punished by the tax administration for tax evasion and has not been criminally punished for tax evasion before, and the corresponding tax and late fees were fully paid within the prescribed period.
If Zheng Shuang pays the fine within the specified period, she will not be held criminally liable, but on the contrary, the tax department will be transferred her to the public security organs according to law.
On the night of August 26, both Zheng Shuang and her studio’s Weibo accounts were permanently banned and Zheng Shuang’s Super Topic was also shut down. The same day, Zhang Heng’s Weibo account was also found to be banned.
Zheng Shuang’s path to return to showbiz has been completely blocked. However, if she pays the fine within the deadline, she should be able to live a normal life without going to jail.
And the result of the investigation hangs Heng has not yet come out, how will he be punished, it needs to continue to wait for the official announcement.