China launches campaign against tax evasion in film, TV industry

China has decided to initiate a campaign to regulate tax payment in the film and TV industry and promote its healthy development, according to a notice from the State Administration of Taxation.

The notice demands all levels of taxation authorities inform the film and TV firms and relevant personnel with exorbitant casting fees to conduct self-examinations of their tax payments since 2016 from Oct 10.

The affected businesses include production companies, talent agencies, performing companies and celebrities' studios.

Those who make remedial payments to taxation authorities before Dec 31 will be exempt from administrative punishment and penalties, the notice said. The taxation authorities will then move in at the beginning of 2019, and those who still refuse to take action will be severely punished.

The notice vowed to establish and improve the taxation system in the film and TV sector.

The campaign also targets violations and dereliction of duty of taxation officials.

In a recent case involving actress Fan Bingbing, the local taxation bureau in Wuxi, eastern China's Jiangsu province, was criticized and called out for rectification, and relevant officials were imposed administrative sanctions of warning and record of demerits.