Amid Fan Bingbing storm, five celebrities who had tax troubles and how they paid for them
As China cracks down on tax avoiders in the television and film industry, we take a look at some of the wealthy stars who have fallen foul of the taxman in various ways
China’s film and television industry is feeling the heat this week after the government launched a tax evasion probe into the sector. The investigation targets actors accused of signing so called “yin-yang” contracts – one contract setting out payment terms and a second one with a lower figure for the tax authorities as a way to avoid paying tax.
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The crackdown comes after an online storm blew up between TV presenter Cui Yongyuan and actress Fan Bingbing. Earlier Cui had published images of documents on his social media account claiming they were copies of different contracts signed by the actress for the same job, the main difference being the size of her fee.
Here are five other celebrities who have got into tax trouble.
1. Liu Xiaoqing
The last time a high-profile Chinese artist was embroiled in a tax investigation was in 2002, when 1980s actress Liu Xiaoqing was imprisoned for a year for tax evasion. The case was connected to her company, Beijing Xiaoqing Culture and Arts Company. As well as the prison term, she was fined 7.1 million yuan.
In 1999, Liu was named one of the richest people in China, appearing at 45 on Forbes’ list of the 50 richest Chinese businessmen and businesswomen.
The actress, star of The Great Wall of the South China Sea (1976), The Burning of the Imperial Palace (1983) and Reign Behind the Curtain (1984), holds the record for having won the most awards in the actress categories of the Hundred Flowers Award, with three for best actress and one for best supporting actress.
2. Nicolas Cage
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In 2009, the United States Internal Revenue Service claimed Cage failed to pay more than US$6.2 million in federal income tax for 2007. The IRS also filed a lien against Cage for more than US$350,000 in unpaid taxes dating from 2002 to 2004.
3. Song Hye-kyo
In 2014, South Korean actress Song Hye-kyo had to do that very Korean thing – publicly apologise for committing tax evasion. The star of hits including Autumn in My Heart (2000), All In (2003), Full House (2004) and That Winter, the Wind Blows (2013) said she “deeply regrets mishandling her tax affairs due to ignorance” and that she “[takes] full responsibility for all tax evasion charges”.
4. Annie Leibovitz
US celebrity portrait photographer Annie Leibovitz hit the big time when an image of John Lennon and Yoko Ono made the cover of Rolling Stone in 1981. She is also hit the headlines for her poor financial management. In 2009 Leibovitz owed US$2.1 million in unpaid taxes for 2004-2007 and was forced to pledge the copyright to every photograph she’s taken, or ever will, to secure a loan to pay off debts.
5. Willie Nelson
US country singer Willie Nelson got in trouble with the tax man in 1990 after the IRS hit him with a bill for U$16.7 million in unpaid back taxes. While he had to hand over many possessions to stay out of prison, it was a light-bulb moment which led to the release of an album poking fun at his plight (he called it The IRS Tapes: Who Will Buy My Memories?) that helped him.
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Fans took the title literally, buying items at auction and then handing them back to the singer. By 1993, Nelson had settled his tab in one of the most high-profile tax cases in music history.
