Two internet livestreaming hosts fined for tax evasion

Two livestreaming hosts, Zhu Chenhui and Lin Shanshan, have been fined for tax evasion, the Zhejiang Provincial Tax Service of the State Taxation Administration said on Monday.

The tax authority in Hangzhou, Zhejiang's provincial capital, announced that Zhu was fined 65.5 million yuan ($10.2 million) and Lin 27.6 million yuan for evading tax obligations.

The two internet celebrities were found to have set up several sole proprietorships in Shanghai, the Guangxi Zhuang autonomous region, and Jiangxi province from 2019 to 2020, and fictitiously transformed their personal salaries and incomes into the operational interests of the sole proprietorships.

Zhu illegally converted 84.4 million yuan of her personal salaries and income into the operations of the sole proprietorships, which included the Beihai Chenxi Marketing Planning Center, evading personal income tax of 30.3 million yuan, while Lin evaded 13.1 million yuan of personal income tax.

Zhu and Lin were cooperative after the tax audit was filed, and they took the initiative to pay part of the tax before the facts of the case were verified, which mitigated the harmful consequences of their illegal activities, local authorities said.

The taxes have been recovered and the two hostesses were fined for tax evasion plus a surcharge for overdue tax payments, the local taxation authority said.

In addition, the tax bureau discovered that Li Zhiqiang, who jointly held a company with Zhu, was suspected of planning, implementing and helping Zhu and Lin evade taxes, and interfered with the taxation authority's investigation.

A case against Li has been filed and is being investigated.

The tax bureau said that supervision and management of professionals in the culture and entertainment industry, such as livestreaming hosts, should be strengthened to promote the need to fulfill legal obligations, pay taxes, and actively advance the healthy development of the industry.

In addition, the investigation and punishment of those who evade taxes will be intensified to create a fair tax environment.

Fang Xiaoying contributed to this story.