China’s biggest star Fan Bingbing has been missing since July 1st, 2018. It was speculated that Fan Bingbing was taken by the Chinese government for failing to pay her taxes in full, but no official word was given.
Fan Bingbing was accused of using Ying Yang contracts to hide her pay where she would get a smaller fee in one contract and a larger fee in another for the same work. Fan Bingbing would declare taxes on the smaller contract and keep all the money on the larger contract.
Ying Yang contracts were used as a way around new rules regulating what actors could be paid for a movie. The government regulated that actors could only be paid 40% of the production cost of a movie vs 70% when China started cracking down on excessive celebrity pay.
Fan Bingbing ended up disappearing when it was found out she was using Ying Yang contracts. The government never released a word on Fan Bingbing until now. Xinhua, China’s official state news, released a statement that Fan Bingbing has been found guilty of tax evasion. Fan Bingbing was found to have avoided filing 255.3 million yuan in income which comes to around $37.1 Million, according to @niubi.
First official notice on fan bingbing tax case, from Xinhua. If I am doing the math correctly she has to pay around 950 million rmb in back taxes and fines, no criminal case if she pays https://t.co/BDgyRcpAeb
— Bill Bishop (@niubi) October 3, 2018
She can avoid criminal prosecution if she pays her back taxes plus penalties which come to around 950 million yuan($138 Million). Her agent, however, will be charged with destroying evidence.
Damn $138 million. It looks like Fan Bingbing will be doing some time unless she can get a billionaire like Jack Ma to help her out.