Agent fined for helping actress evade tax
Print Edition
Zhang Heng, the former agent of Chinese actress Zheng Shuang in a Chinese TV drama project, has been fined 32.27 million yuan (US$5 million) for helping the actress evade taxes, according to the State Tax Administration yesterday.
In August, Zheng was slapped with a 299-million yuan penalty for tax evasion by using “yin-yang contracts” — open and secret dual-priced contracts.
Zhang, one of the whistle-blowers in that case, was found responsible for the actress’ contracts, remuneration and other issues in the TV series “A Chinese Ghost Story” in December 2018, said an official with the Shanghai Tax Service.
Investigations revealed that Zhang had detailed the payment method for Zheng with the producer of the TV series, and made the plan to split the payment contract totaling 160 million yuan into two to evade taxes over the sky-high remuneration.
One contract stated that the actress’ pay was 48 million yuan, and the other showed that the rest of the actress’ income would be paid through capital replenishment to a company under Zheng’s de facto control.
Zhang also directly manipulated enforcement of the contracts, as well as pressing for and receiving payments, leading to a total tax evasion of 43.027 million yuan, the administration found out.
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