Chinese actor Fan Bingbing has been fined for tax evasion. She was ordered to pay 884 million yuan in fines and unpaid taxes after Chinese tax authorities found she failed to pay about 255 million yuan in dues, according to the Xinhua News Agency this month.
The investigation began over Fan’s reported income from the upcoming film Air Strike starring Bruce Willis, in which she makes a special appearance. The tax authorities discovered that Fan earned 30 million yuan for the film, but split her earnings into two separate contracts, known as “yin-yang” contracts, comprising a public contract for 10 million yuan, and a secret one for 20 million yuan, according to Xinhua. The practice refers to celebrities who sign two contracts: one with their actual salary and another with a lower figure that is submitted to tax authorities.
China’s State Administration of Taxation said that it was rolling out a campaign to tighten its tax policies and collection methods within the television and film business.
The film's release in China has been cancelled in the wake of the tax scandal. It was originally due to air on 17 August, then delayed until 26 October.
The actress, who had been missing since July amid rumours of possible wrongdoing, reappeared earlier this month and apologized on her social media account.