Chinese Influencer Fined 19 Million Yuan For Tax Evasion

State administration officials are investigating an influencer for allegedly underreporting income. Investigators discovered large labor service invoices worth millions of yuan issued by a human resources management company in Shandong. The investigation is examining whether personal income was converted into individual business income to exploit tax incentives and reduce tax burdens. Authorities have obtained bank account records for relevant corporate personnel to trace the funds. Tax authorities discovered the firm used fictitious costs and converted personal income into individual business income to exploit tax incentives. The individual, Bai Bing, admitted to using shell businesses to convert income and underreporting second-hand house prices to evade taxes. Chinese authorities disclosed details regarding a tax evasion case involving a popular influencer with 10 million followers. Authorities investigated a top influencer, Bai Bing, regarding low personal income declarations since 2021. An investigation by the State Taxation Administration found that while Bai Bing's primary income comes from high-commission advertising collaborations, reported personal income has remained low since 2021. Police have launched a comprehensive review of businesses associated with the influencer, including a suspicious individual business entity registered in Chongqing. Investigations by the State Taxation Administration revealed Bai used advertising commissions to generate income while reporting low personal earnings since 2021. The scheme involved inflating expenses to claim tax benefits and using large-scale service fee invoices from a Shandong-based human resources company.