Wu Yifan is completely finished after evading hundreds of millions in taxes!
[4] Compiled from: Red Star News
Case review
Earlier, the Second Inspection Bureau of the Beijing Municipal Tax Service, based on leads from relevant parties and tax big data analysis, conducted a tax inspection on Canadian artist Kris Wu (WU YI FAN) for suspected tax evasion during the period from 2019 to 2020 in accordance with the law. The investigation found that during 2019 to 2020, Kris Wu (WU YI FAN) evaded 95 million yuan in taxes by fabricating business transactions to alter the nature of income for false reporting and by concealing personal income through multiple related enterprises at home and abroad, and underpaid an additional 84 million yuan in taxes.
The Second Inspection Bureau of the Beijing Municipal Tax Service, in accordance with relevant laws and regulations such as the "Individual Income Tax Law of the People's Republic of China," the "Tax Collection and Administration Law of the People's Republic of China," and the "Administrative Penalty Law of the People's Republic of China," has pursued tax recovery, imposed additional late fees, and levied fines on Wu Yifan (WU YI FAN), totaling 600 million yuan. Among this, for the portion of tax evasion resulting from falsely reporting income by creating fictitious business transactions, a fine of four times the amount was imposed, totaling 345 million yuan; for the portion of tax evasion due to concealing personal income, a fine of five times the amount was imposed, totaling 42 million yuan. Recently, the Second Inspection Bureau of the Beijing Municipal Tax Service has lawfully delivered the tax administrative penalty decision to Wu Yifan (WU YI FAN).
The
[1] The People's Republic of China
Personal Income Tax Law
Article 1
An individual who has a domicile in China, or an individual without a domicile who resides in China for a cumulative total of 183 days within a tax year, is considered a resident individual. Resident individuals are required to pay individual income tax on income earned both within and outside China in accordance with the provisions of this law.
An individual who has no domicile in China and does not reside in China, or has no domicile but stays in China for a total of less than 183 days within a tax year, is a non-resident individual. Non-resident individuals are subject to individual income tax on income derived from within China in accordance with the provisions of this law.
The tax year starts from January 1 of the Gregorian calendar and ends on December 31.
[1] The author's perspective
The verdict of Kris Wu's rape case has just been announced, and immediately after, news of tax evasion broke out, showing how lawless he normally is. Such misdeed entertainers are truly audacious! While sighing, let's pay attention to the differences in Kris Wu's tax evasion.
First, compared to celebrities like Fan Bingbing and Viya who evaded taxes, Wu Yifan's uniqueness lies in the fact that he is a Canadian citizen. According to the aforementioned laws, it is not necessarily required for foreigners to pay taxes on income earned in China. Wu Yifan meets the standard of "accumulating 183 days of residence in China within a single tax year," making him a resident individual. Therefore, his income must be subject to individual income tax according to the law.
Second, Wu Yifan established multiple companies abroad and then had his partners pay his remuneration to these overseas companies, thereby concealing the fact that he received remuneration from within China, or altering the nature of his income for false reporting, with the intent to evade China's tax regulations and achieve the purpose of tax evasion. In the era of big data, China's tax authorities continually improve their regulatory methods and inspection capabilities, all aimed at creating a fair and just tax environment and resolutely maintaining China's tax order.
