China Hits Top Influencer With $210 Million Fine Over Taxes

[Mista]

She sold 30 billion yuan of goods in a year and evaded 640 million yuan in taxes through her owned ten companies.
According to China's tax law, it is necessary to pay twice as much tax as punishment.

I'm sharing the news because I didn't know top livestreamers in China can earn more than top Hollywood stars in the US. I don't think Jay Chou or JJ Lin earn as much as her as well lmao.

 

[xuxu1457]

I'm sharing the news because I didn't know top livestreamers in China can earn more than top Hollywood stars in the US. I don't think Jay Chou or JJ Lin earn as much as her as well lmao.

top livestreamers can earn 3 billion rmb, 500 million $ a year

 

[Viet]

She sold 30 billion yuan of goods in a year and evaded 640 million yuan in taxes through her owned ten companies.
According to China's tax law, it is necessary to pay twice as much tax as punishment.

Wow she is rich. Interestingly I am curious how she can hide it in a tightly controlled state China. In Germany the police have no mercy they will raid your house midnight and put you in prison if you are catched with more than 1 million euros evading taxes.

 

[Song Hong]

Wow she is rich. Interestingly I am curious how she can hide it in a tightly controlled state China. In Germany the police have no mercy they will raid your house midnight and put you in prison if you are catched with more than 1 million euros evading taxes.

The government is the rich and the rich is the government everywhere in the world. Probably China a lesser extend. The role of government is to protect the people against the government class themselves.

Everywhere in the world when rich are raided or thrown into prison, it is about political struggle, but it was presented and brandish as "democracy, rule of law, freedom of speech" by the press.

Most readers are not sophisticated and they got brainwashed thinking that the people controlled the government.

 

[xuxu1457]

Wow she is rich. Interestingly I am curious how she can hide it in a tightly controlled state China. In Germany the police have no mercy they will raid your house midnight and put you in prison if you are catched with more than 1 million euros evading taxes.

The governments of Germany and the United States are much stronger than the Chinese government. The Chinese police are not equipped with guns, the enforcement ability of the tax authorities is relatively weak, and it was relatively easy before tax evasion. Weiya carried out turnover through the ten companies she registered and turned her income into other businesses to evade taxes. Before, there was an actress who evaded 70 million dollars in taxes through Yin and Yang contracts.

 

[Mista]

the enforcement ability of the tax authorities is relatively weak, and it was relatively easy before tax evasion.

I've always wondered why China's tax revenue as a percentage of GDP is relatively low when their income tax rate is so high.

List of sovereign states by tax revenue to GDP ratio - Wikipedia

en.wikipedia.org

List of countries by tax rates - Wikipedia

en.wikipedia.org

 

[Stranagor]

I'm sharing the news because I didn't know top livestreamers in China can earn more than top Hollywood stars in the US. I don't think Jay Chou or JJ Lin earn as much as her as well lmao.

I think if there is no Mainland market, they will quickly go broke or live much less comfortable lives.

Wow she is rich. Interestingly I am curious how she can hide it in a tightly controlled state China. In Germany the police have no mercy they will raid your house midnight and put you in prison if you are catched with more than 1 million euros evading taxes.

These are relatively new industries and public policies are known to follow changes on the ground. There's a time lag. Once the loopholes are mended through new regulation as well as its bureaucratic implementation, than those unruly ones who benefited from lack or lax regulations are cought.

 

[Viet]

The governments of Germany and the United States are much stronger than the Chinese government. The Chinese police are not equipped with guns, the enforcement ability of the tax authorities is relatively weak, and it was relatively easy before tax evasion. Weiya carried out turnover through the ten companies she registered and turned her income into other businesses to evade taxes. Before, there was an actress who evaded 70 million dollars in taxes through Yin and Yang contracts.

It’s a question of psychology I guess between west and east. Here the government thinks if you evade even 1 dollar tax they act as if you stole it from the government.
The police will act like they deal with thieves.
40 percent of my income belongs to government. They say that’s their money.

 

[xuxu1457]

I've always wondered why China's tax revenue as a percentage of GDP is relatively low when their income tax rate is so high.

List of sovereign states by tax revenue to GDP ratio - Wikipedia

en.wikipedia.org

List of countries by tax rates - Wikipedia

en.wikipedia.org

China's personal income tax accounts for only 5% of China's tax revenue, but in fact, everyone is avoiding tax.

1. If the monthly salary ranges from 1 to 5000 yuan, including 5000 yuan, the individual income tax rate shall be 0%.

2. If the salary range is between 5000 and 8000 yuan, including 8000 yuan, the individual income tax rate shall be 3%.

3. If the salary range is between 8000 and 17000 yuan, including 17000 yuan, the individual income tax rate shall be 10%.

4. If the salary range is between 17000 and 30000 yuan, including 30000 yuan, the individual income tax rate shall be 20%.

5. If the salary range is between 30000 and 40000 yuan, including 40000 yuan, the individual income tax rate shall be 25%.

6. If the salary range is between 40000 and 60000 yuan, including 60000 yuan, the individual income tax rate shall be 30%.

7. If the salary range is between 60000 and 85000 yuan, including 85000 yuan, the individual income tax rate shall be 35%.

8. if the salary range is more than 85000 yuan, the individual income tax rate shall be 45%.

However, there is usually a tax reduction of 2000 to 3000 yuan, including mortgage loans, children and parents, each of which can be subtracted by a thousand yuan. So ordinary people basically don't pay personal income tax.

 

[大汉奸柳传志]

I'm sharing the news because I didn't know top livestreamers in China can earn more than top Hollywood stars in the US. I don't think Jay Chou or JJ Lin earn as much as her as well lmao.

streaming by itself don't earn that kind of money, but try think of her as an online wholesale retailer

 

[MH.Yang]

I've always wondered why China's tax revenue as a percentage of GDP is relatively low when their income tax rate is so high.

List of sovereign states by tax revenue to GDP ratio - Wikipedia

en.wikipedia.org

List of countries by tax rates - Wikipedia

en.wikipedia.org

The main revenue of the Chinese government comes not only from taxes, but also from the profits paid by state-owned enterprises.
For example, in 2019, China tobacco administration paid 1177 billion CNY ($183.9 billion) in profits to the govt:
https://m.nbd.com.cn/articles/2020-03-01/1412789.html
In addition to paying profits, they also paid 1205.6 billion yuan ($188.4 billion) in taxes.

 

[TNT]

I just wish one day the stupid Pakistani govt and state starts to take tax evasion this seriously. In Pakistan, the richer u get the lesser tax u pay. The elites have been robbing this country for decades and the stupid nation still dance to them and make them their leaders. One particular province leads all because their number of seats determine who rules and these imbeciles have always voted a corrupt elite class.

 

[xuxu1457]

The main revenue of the Chinese government comes not only from taxes, but also from the profits paid by state-owned enterprises.
For example, in 2019, China tobacco administration paid 1177 billion CNY ($183.9 billion) in profits to the govt:
https://m.nbd.com.cn/articles/2020-03-01/1412789.html
In addition to paying profits, they also paid 1205.6 billion yuan ($188.4 billion) in taxes.

In fact, the profits of state-owned enterprises are not included in taxation, and most state-owned enterprises do not make money, but only maintain the country's livelihood and the stable operation of the basic economic lifeline.
For example, China Railway, gas stations of state-owned enterprises and the State Grid, telecommunications companies must be distributed to remote areas, some areas have only a few households, all of which have to be done at a loss.
China Tobacco does make money, and the money it earns can basically cover China's military spending. The total profits of China's state-owned enterprises exceeded 500 billion US dollars last year, and most of them will stay in the enterprises to invest. They will also transfer some shares to pension funds and medical insurance funds every year to supplement old-age pension and medical care. The government does not rely on profits and mainly depends on taxes.
China Tobacco does bring more than 1 trillion RMB in taxes and profits to China every year.

China's total tax revenue this year may reach 20 trillion yuan, 3 trillion US dollars, of which 40% value-added tax, 25% enterprise income tax, 7% personal income tax, 7% consumption tax, these four account for 80%

 

[Zsari]

I've always wondered why China's tax revenue as a percentage of GDP is relatively low when their income tax rate is so high.

List of sovereign states by tax revenue to GDP ratio - Wikipedia

en.wikipedia.org

List of countries by tax rates - Wikipedia

en.wikipedia.org

Income tax in China only targets the rich. I recall that only the top 15% of population is not exempted from income tax, and only 9% actually pays them.

 

[patero]

I've always wondered why China's tax revenue as a percentage of GDP is relatively low when their income tax rate is so high.

List of sovereign states by tax revenue to GDP ratio - Wikipedia

en.wikipedia.org

List of countries by tax rates - Wikipedia

en.wikipedia.org

There's one obvious answer to that, if you choose to believe what China investment analyst Leland Miller from China Biege book has reported: tax filings do not match the reported GDP data dating back to 2012 which, alongside other data, suggests over-reporting of GDP by an average of 2% per year from 2012 to 2016, and about 4% from 2016 to 2020. The gap between reported GDP and calculations based on tax filings has certainly widened even further in the pandemic era, accumulated to approximately 25-30% now, which incidently is roughly equivalent to the amount contributed to GDP by the real estate and construction sector (including related upstream and downstream industries).