China fines 4 internet celebrities US$1.9m over tax evasion involving e-commerce sales
In some cases, popular live-streamers with online stores and millions of fans paid taxes as low as a few hundred yuan, authorities say
Chinese authorities have fined four internet celebrities 13.3 million yuan (US$1.9 million) for tax evasion after they racked up millions of followers but paid nearly zero tax, Xinhua said on Friday.
The penalties, including fines and late-payment fees, were paid in addition to the outstanding taxes, the state news agency reported.
“The streamers involved have high popularity and large sales volume in their live broadcast spaces and often receive donations from fans, but the tax declarations and payments of these streamers were very low,” the report said.
These were among seven cases disclosed by tax authorities in Shandong, Sichuan and Zhejiang provinces, Xinhua said. The other three cases involved popular online stores, one of which had an annual store revenues of more than 100 million yuan.
Although computer systems were making it easier for Chinese tax bureaus to log workplace payroll information, the earnings of internet streamers and their stores remained more elusive, said Chen Zhiwu, chair professor of finance at the University of Hong Kong.
Celebrities usually open or endorse the stores, which include e-commerce shops.