Fan Bingbing, one of China’s top celebrity has been ordered to pay nearly $130 Million by the Chinese tax authority. Fan was facing allegations of tax evasion from a few months, and she was also disappeared from the public eye from the last July. Suddenly on Wednesday she resurfaced and shared an apology on her social media. South China Morning post says that Fan was under house arrest in a luxury resort while the authorities were investigating all the allegations.
Fan was accused of filing wrong income to tax department for years in order to save tax. Authorities found that Fan used two different contracts, one open and another secret to avoid paying a large amount in tax. Now that authorities have found her guilty and thus she has been ordered to pay 884 million yuan, the equivalent of $130 million and £100 million. $60 million in back tax dues and $70 million in fines. If Fan is not able to pay the amount by the given time, she may face criminal charges.
Many people in the west know her from her role in X-Men: Days of Future Past as Blink. She is also seen in many Korean and French movies. She is also the face of big brands like Mercedes-Benz, Cartier, L’Oreal, Chopard and Louis Vuitton in China. She has over 62 Million followers on Chinese social media Weibo. After over 3 months of disappearing, Fan has come to the public eye with her social media post about how sorry she is for her action and how thankful she is to the country and the communist party. On her social media post, she wrote: “I feel ashamed and guilty about what I have done, and I sincerely apologize to you all!.” The 37 year actress also showed her gratitude to the country and party. “Without the great policies of the Communist Party and the state, without the people’s love and care, there would be no Fan Bingbing,” she wrote on Weibo. She also said she has “fully accepted” the fine imposed on her.
What is Fan Bingbing Scandal
The scandal first came into the public eye when a popular TV host took to the social media to expose a deep tax evasion culture which he said was as “yin-yang” agreement by naming Fan Bingbing. That post caused all the pain for Fan and her followers. There was a huge outrage on social media and news media. In China, celebrities are a big thing. They hold a status of respect and many time Government hire them to promote different government policies. So it was bound to cause outrage. Since after that Fan was held under house arrest and all of her public appearances were kept private.
So, what is “yin-yang” you may ask?
Yin-Yang means creating two contacts one for the public while other is kept private. For instance, in a social media post, a popular Tv host had shared two version of the same contract from one of Fan’s movies. In one contract the price was mentioned $1.7 Million for tax recording purpose while in another contact (secret contract) the actual price paid to Fan was much higher than the $1.7 million mentioned in public. By this formula, Fan was able to avoid paying tax worth $60 million.