Cui Yongyuan, the former host of CCTV, recently exposed the yin and yang contract phenomenon involving tax evasion by people in the entertainment industry, which caused a shock in public opinion, and the State Administration of Taxation demanded a thorough investigation.Cui Yongyuan broke the news the day before yesterday (4th), saying that he still has a yin and yang contract with an actor couple, the amount involved reached 750 million yuan (S$156 million), which made the outside world speculate on the real identity of the couple.
According to a report by Sing Tao Daily today (6th), Cui Yongyuan used an Apple iPad to show a large number of unclear photos of the contract when he was interviewed by the online media Viper Movie.
He said that these yin and yang contracts currently in hand involve very large amounts, and just talking about the numbers themselves will scare you to death.
Cui Yongyuan said: I am the most serious person, he and his wife are two people, 750 million.He is an actor, and then he is responsible for publicity (publicity, film distribution). To be honest, I don’t want to report these people. Some are friends, some are buddies.
The 55-year-old Cui Yongyuan has recently started repeatedly bombarding the main creators of Mobile Phone 2, Feng Xiaogang and Liu Zhenyun, as well as exposing a contract of 10 million yuan for the leading actor Fan Bingbing, and from this he began to bombard the existence of people in the entertainment industry who signed a yin-yang contract with one high and one low., to achieve the purpose of tax evasion. Cui Yongyuan explodes celebrity tax evasion incident, Khorgos tax avoidance surfaced
Korgos is a border town in Xinjiang, China, bordering Kazakhstan, a Central Asian country. Since the establishment of a national economic development zone in 2010, the vigorous tax-free preferential policies have attracted companies, many of which are registered by first-line celebrities.Horgos is nicknamed Hollywood.However, Hollywood does not produce movies, just to avoid taxes reasonably.
Cui Yongyuan, the former host of China Central Television, broke the news that film and television stars were involved in huge tax evasion incidents, and the incident spread to the important town of the Belt and Road—Chinese tax haven Khorgos.
Korgos is a border town in Xinjiang, China, bordering Kazakhstan, a Central Asian country. Since the establishment of a national economic development zone in 2010, the vigorous tax-free preferential policies have attracted companies, many of which are registered by first-line celebrities.
Fan Bingbing, who was accused by Cui Yongyuan of using yin and yang contracts to evade taxes, registered in 2016 as the legal representative of Horgos Amy God Film and Television Culture Co., Ltd.; last year's box office hit Wolf Warrior 2, three of its producers were registered in HorgosGoss.
In addition, Old Pao Sansheng III Shili Peach Blossom is also produced by a company registered by Horgos.At present, more than 1,600 film and television companies such as Huayi and Bona have registered in Khorgos.
The gathering of high-profit film and television companies caused Korgos to be dubbed Hollywood.However, Hollywood does not produce movies, just to avoid taxes reasonably, and thus build a huge leather bag market, causing dissatisfaction among regulators.
In March this year, officials from the Supervision Bureau of the Ministry of Finance summoned the financial leaders of companies registered in Khorgos and criticized them for not carrying out business or production activities, but transferring huge profits to avoid taxes, disrupting the local financial system.The local taxation bureau of Khorgos also required companies to conduct self-inspections, involving more than 2,000 companies.
Take away the tax sources of Beijing, Shanghai, Guangzhou and other cities
In this film and television star tax evasion incident, the official media Beijing Daily, which actively participated in the report, directly pointed out that Korgos, whose business environment is not ideal, relied on policy dividends, not only robbed Beijing of tax sources, but also gave ShanghaiCities such as Guangzhou and Shenzhen have brought pressure.The article stated that the huge tax gap has made Khorgos a trump card for many companies to ask for additional tax incentives, and they will move out if they don’t give the incentives.
From 2011 to November 2017, 1,431 Beijing companies have established more than 1,600 subsidiaries in Korgos, with an investment of 21.77 billion yuan (RMB, the same below, about SGD 4.35 billion).Among them, there are 111 listed companies, nine companies have more than 50 patents, and 19 companies have more than 50 software copyrights.This is undoubtedly a considerable loss of tax sources for Beijing, which is developing industries focusing on culture and high technology.Last year, there was also news that the Horgos tax depression would be cancelled.
Yang Zhiyong, a researcher at the Chinese Academy of Social Sciences’ Institute of Financial and Economic Strategy, said in an interview that Khorgos’ tax incentives are part of the central government’s policy to encourage Xinjiang’s development. Due to the loose management of the local government, a large number of shell companies have appeared, and a group of companies that have no real value should be cleaned up.There are leather bag companies operating.
Fan Ziying, a professor at the School of Public Administration of Shanghai University of Finance and Economics, pointed out that the catalog of industrial preferences given to Korgos at the national level is too broad and does not match the national strategy of building the Belt and Road Initiative. The preferential tax policies should benefit export trade and manufacturing-related industriesIndustry, which should cover almost all services, disrupts the country's tax system.
