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From the Tax Law Offices of David W Klasing -When do Tax Avoidance Strategies Become Criminal Tax Evasion?

China s Talent-Owned Companies Under Scrutiny as New Tax Crackdown Looms

China s Talent-Owned Companies Under Scrutiny as New Tax Crackdown Looms Rebecca Davis, provided by FacebookTwitterEmail Chinese authorities have issued warnings of a new crackdown on entertainment industry financial practices and astronomical star salaries in wake of another high-profile celebrity tax scandal. The latest furor, involving actor Zheng Shuang, is the biggest since the 2018 downfall of Fan Bingbing and has echoes of the earlier scandal, albeit without a mysterious disappearance by the leading lady. Last week, allegations emerged online that the immensely sought-after TV actor Zheng was paid $24.6 million for her work on a single web series. The figure massively exceeds the $7.7 million (RMB50 million) maximum that Chinese industry bodies say individuals can be paid for a single production.

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