Dang Luan, Trinh Sang use what tricks to evade trillions of tax dollars?

Actor Dang Luan or h.ot g.irl Vi A, actress Trinh Sang, ... all have their own tricks to avoid personal income tax.

In March 2022, the Chinese entertainment industry was shaken by the news that actor Dang Luan evaded nearly 10 million USD in taxes. On his personal Weibo, Dang Luan said he felt regret, committed to pay a full fine of 16.6 million USD and promised to correct the mistake.

Although he quickly paid the fine and apologized to the public, Dang Luan's career is said to have ended at the age of 30, after nearly 10 years of artistic activities. The actor is currently removed from many projects.

His unreleased projects are also in danger of not being broadcast because the actor is banned from broadcasting on all Chinese media platforms. The amount of compensation for Dang Luan's partners is estimated at 47 million USD. With the tax evasion scandal, Dang Luan no longer has the opportunity to work in the Chinese art world in the future.

According to China Daily, Chinese artists can earn tens of millions of dollars annually from acting in movies, attending events, appearing in TV shows, and representing brands. And to preserve their efforts, they will find many different ways to hide their personal income and evade taxes.

In Dang Luan's case, the actor evaded the obligation to pay enough taxes by establishing a series of virtual businesses to convert the nature of income from high tax rates to the scope of non-taxable or taxed business contracts. less than 30% of the specified level. This method of tax avoidance is said to be difficult to detect and trace because the artist's income is converted through many intermediaries in a short time.

It is known that before being convicted of tax evasion and subject to a large fine, Dang Luan was reminded many times but still deliberately committed mistakes. Dang Luan's tax evasion method is also used by h.ot g.irl Vi A.

In December 2021, Vi A - one of China's self-made billionaires and China's livestream queen was fined nearly $210 million for tax evasion. Vi Asia has more than 120 million followers on social media platforms and is capable of selling everything, including rockets for 40 million yuan in 2020.

In 2021, she and her husband also participated in the list of 500 richest people in China, according to economic and financial magazine New Fortune, when ranked at 490. She was also voted as one of 100 people by Time magazine. most influential in 2021. After the incident, Vi A was removed from Chinese social networking platforms and was unable to continue her familiar sales business.

The tax authority of Hangzhou, China, said Vi A opened a sole proprietorship to take advantage of a lower tax rate of 5%, a popular tax avoidance strategy in the Chinese entertainment industry. Vi A registered to set up 8 representative offices in Shanghai, but her companies are only on paper, and in fact do not have any business activities in the business registration area.

It is known that during the years of operation, Vi A has hundreds of companies specializing in livestream sales all over China. Just within 2019 and 2020, by establishing virtual businesses, Vi A's tax evasion amount reached nearly 110 million USD, 10 times higher than Dang Luan's.

Taking advantage of personal relationships and the government's tax incentives, Dang Luan or Vi A can use the identity of an acquaintance to establish a local monopoly business to enjoy tax incentives. According to Xinhuanet, it usually takes about 2 weeks to open a company or film studio in the entertainment industry in China.

With this method, Chinese artists only have to pay 9.5% income tax, instead of 40-45% according to regulations. After allowing the business to exist for a year to avoid a large income tax, the artist sought to write off the business. Taking advantage of the identity of an acquaintance to establish a business helps artists not to be jointly responsible because they are not directly in the name of the business papers.

Meanwhile, Pham Bang Bang's way of tax evasion is to use yin and yang contracts to cover up the huge income from art projects. Specifically, from the 2018 investigation results, Pham Bang Bang received a salary of 30 million yuan (equivalent to 107 billion VND) when participating in the Great Bombing project.

However, the actress only declared to the tax authorities 10 million yuan. The remaining 20 million yuan (more than 71 billion dong) is divided into small contracts. This helped Pham Bang Bang avoid 6.18 million yuan (more than 22 billion dong) of personal income tax, 1 million 120 thousand yuan (more than 4 billion dong) in business tax with ancillary items, total total is 7 million 300 thousand yuan (more than 26 billion).

Because Pham Bang Bang used "tricks" to split the contract, cover up the actual amount to evade taxes, her fine was multiplied by 3 times. In addition, Pham Bang Bang took advantage of the agency to cheat on taxes, so she was also fined 3 times. The total fine for tax evasion of the legendary Vo My Nuong beauty is up to 130 million USD.

Pham Bang Bang's method of tax evasion was also learned by Trinh Sang's juniors when she evaded taxes for her ridiculously high income in the project Tan Thien female ghost. In August 2021, Trinh Sang was found guilty of tax evasion and had to pay a fine of 299 million yuan (1,074 billion VND).

The actress used a yin and yang contract when filming the film Tan Thien Mai, to split her income and avoid paying taxes. According to the Inspectorate of the Shanghai Tax Department (China), from 2019 to 2020, Trinh Sang did not declare personal income of 191 million yuan (VND 686 billion) including the salary for filming the movie Tan Thien Nu. ghosts and income from other artistic activities.

In total, she evaded taxes of more than 45 million yuan (more than 161 billion dong) and underpaid other taxes more than 26 million yuan (more than 93 billion dong). Based on Chinese law, the 9X actress must pay 299 million yuan (equivalent to 1,074 billion VND) including tax payable, late tax fee and fine.

Dang Luan, Pham Bang Bang and Trinh Sang - 3 Cbiz stars pay huge amounts of m.oney for tax evasion: Who is more miserable? Hoàng Phúc10:52:30 17/03/2022Involved in a tax evasion case, Dang Luan and many Chinese stars almost ran out of ways to return to showbiz. As the most sought-after faces in the Chinese entertainment industry, Dang Luan, Pham Bang Bang, Trinh Sang surprised fans when they were exposed to tax evasion. Dang...