China’s celebrities and internet influencers given 10 days to pay outstanding taxes

Tax bureaus in some of nation’s most prosperous regions tell those with unpaid or incorrectly filed taxes to take action before year’s end or face punishment
It comes days after top e-commerce influencer Huang Wei, also known as Viya, was fined a record US$210 million for tax evasion

China society

Linda Lew

Published: 7:00am, 23 Dec 2021

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Tax bureaus in some of China’s most prosperous regions have given celebrities and internet influencers a deadline of 10 days to pay their outstanding taxes, according to a notice issued on Wednesday.

The tax authorities in Beijing and Shanghai, and the provinces of Guangdong, Zhejiang and Jiangsu, have ordered those with outstanding taxes or who have filed their taxes incorrectly to promptly report and correct their filings before the end of the year, or face severe punishment, the government notice said.

It was issued days after one of China’s top e-commerce influencers, Huang Wei – also known as Viya – was fined a record 1.34 billion yuan (US$210 million) for tax evasion. Two other influencers were also punished and their Chinese social media accounts were deleted for the same offence in November.

“Celebrities, internet influencers and other public figures should strictly comply with tax regulations even more,” the notice said. “Those refusing to self-assess their [tax obligation] or who have done so incorrectly will be severely punished by the tax bureau in accordance with the laws and regulations.”

The Zhejiang provincial tax authority said Viya had avoided more than 700 million yuan in taxes from 2019 to 2020, and would not face any criminal charges as long as she paid the fine. Viya and her husband have apologised and promised to take full responsibility.

Influencer Li Jiaqi’s company said the business had been run in an honest way and operations remained normal. Photo: VCG via Getty Images

Viya sold 8.25 billion yuan worth of products on the Chinese e-commerce platform Taobao for this year’s Singles’ Day shopping event in November. Another top influencer, Li Jiaqi, pushed 10.62 billion yuan worth of goods, according to data from Taobao.

Taobao is operated by Alibaba Group Holding, which owns the South China Morning Post.

Speculation online that other influencers may face similar punishment has prompted some to come forward to clarify that they have been compliant in their tax filings.

Li’s company Meione Network Technology told reporters on Wednesday that the business had been run in an honest way and operations remained normal.

Actress Qi Wei, 37, who is managed by the same influencer talent company as Viya, on Tuesday issued a statement on Weibo, a Chinese social media platform, saying rumours that she had also evaded taxes were false.

Other celebrities who have been fined heavily for evading taxes in recent years include Chinese actress Fan Bingbing, who had to pay 883 million yuan in 2018.

Another actress, Zheng Shuang – who was embroiled in a bitter custody battle over children she had with ex-boyfriend Zhang Heng through surrogacy in the US – was fined 299 million yuan earlier this year. Zhang was fined more than 32 million yuan in October for helping Zheng evade taxes.

The strict enforcement of taxation comes as President Xi Jinping is promoting a “common prosperity” campaign that aims to reduce the wealth gap and make Chinese society more equitable.