China has given its celebrities and internet stars ten days to come into good standing with the tax administration after a heavy fine for fraud against an influencer, amid a recovery in the entertainment industry.
Chinese President Xi Jinping in August urged “common prosperity” and promised an “adjustment” to excessive income.
A message then understood as a warning to the rich bosses and to the excesses in certain sectors including showbiz and the internet, accused of offering “staggering salaries”.
On Monday, influencer Viya, very prominent in China for her “tele-shopping” 2.0 videos, was pinned for tax evasion and ordered to pay the record sum of 1.3 billion yuan (181 million euros) .
“The stars of the show, livestreamers and other public figures must strictly comply with the provisions of the tax law,” criticized several tax offices including those in Beijing and Shanghai.
All of them are in charge of numerous showbiz employees and companies.
“It is the duty of every citizen to pay taxes”, hammered the tax administration in a note published Wednesday.
It gives celebrities until “the end of the year”, or 10 days, to comply, and threatens “heavy” penalties.
Viya disappeared from the country’s main social networks on Tuesday, the day after his conviction for tax evasion.
The internet in China is strictly regulated and the country’s censors do not hesitate to dive into the digital anonymity of individuals or companies in the crosshairs of communist power.
Viya is a key figure in online commerce.
Its teleshopping on smartphones was followed daily by millions of Chinese consumers, generally young and eager for new technologies.
His notoriety was worth to him to be frequently solicited by the marks and to be at the head of a small empire.
Viya is not the first Chinese star to be pinned for tax evasion.
In August, the actress Zheng Shuang, known for several roles in popular television series in China, was ordered to pay 39 million euros.
The audiovisual regulator had imposed the withdrawal of series with the actress and ordered producers to no longer use his services.
In 2018, Chinese film star Fan Bingbing apologized to his fans and the Communist Party, when the tax authorities demanded $ 129 million in taxes and penalties.
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