China tells celebrities, livestreamers to correct tax-related offences before 2022 -Breaking
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© Reuters. FILE PHOTO – Livestreaming sessions from Chinese livestreamers Li Jiaqi (real name Huang Wei) can be seen on Alibaba’s mobile app Taobao. This illustration photo was taken on December 14, 2021. Picture taken Dec(Reuters) – Chinese province authorities have instructed celebrities and streamers to report tax related crimes prior 2022. It comes days after Viya, China’s “queen of livestreaming”, was sentenced 1.34 Billion Yuan ($210 M) for tax evasion.
Viya (real name Huang Wei) was fined Monday by Hangzhou’s tax bureau for concealing personal income in 2018 and 2020.
Tax officials in China’s economically most prosperous provinces and cities posted similar notices to their websites on Wednesday asking celebrities and streamers to perform a self-review and correct any tax-related mistakes and to report back to the appropriate tax authorities.
It stated, “Before 2021’s end, rectify tax-related problems and report them to the tax bureau proactively. (This) will reduce, exempt or mitigate tax penalties according to the requirements of this notice.”
If self-correction and self-inspection are not completed or refused, the tax bureau will take it seriously and comply with all laws.
Celebs and streamers have been the latest victims of this broad crackdown. It started with tech monopolies, but Beijing has expanded its reach to private education and social media platforms as well.
Tax evasion was already ruining the careers of many well-known celebrities in the entertainment sector before the crackdown. But Wednesday’s notices emphasize the wide-ranging, systematic nature of “common prosperity,” crackdown.
President Xi Jinping called on China to attain “common prosperity”, aiming to close the gap in wealth that is threatening the country’s economic growth and legitimacy under Communist Party rule.
The warning was issued by tax authorities from Beijing, Shanghai and Guangdong as well Zhejiang. Together, the cities and provinces account for more than half China’s GDP. These areas also house the majority of celebrities in China and the livestreamers.
The central government’s State Taxation Administration published a notice in September announcing steps to improve tax administration for the entertainment industry, which included livestreamers.
The September notice also promised similar promises, including lighter penalties and exemptions to those who report and correct tax-related mistakes. State media reported that more than 1000 people have paid their tax arrears in the past year.
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