According to media reports, experts interviewed by China Broadcasting Corporation stated that if relevant personnel have indeed committed subjective and deliberate tax evasion, even if they cancel the studio, they will eventually be severely punished.
At the same time, "sky-price pay", yin and yang contracts are strictly prohibited, tax evasion is strictly punished, there is zero tolerance for bad actors, and the "rice circle" economy is completely rectified...Multi-departmental forces are attacking, and supervision is continuously strengthened. On the way to the healthy development of the performing arts industry, how to push the industry's self-discipline to a deeper level besides punishment afterwards?
In response to the performance industry’s remuneration violations, “yin-yang contracts”, and tax evasion, after Fan Bingbing’s tax evasion incident, the management department started to crack down on “expensive remuneration” until recently the State Administration of Taxation announced the Zheng Shuang tax evasion case. The decision to deal with the case, recovering taxes, imposing late fees and fines totaling 299 million yuan, all revealed the determination of relevant departments to severely punish tax evasion.
Pan Yan, secretary general of the China Performance Industry Association, said that enhancing legal awareness and operating in compliance with laws and regulations should be the consensus of practitioners and related brokerage agencies. Pan Yan said: "The establishment of a studio is no longer a depression where some responsibilities can be evaded, so I think it is inevitable related to the big policy environment. From the perspective of industry self-discipline, we actually hope to play a more important role. Try to avoid the occurrence of violations of laws and regulations. In their daily work, brokerage agencies, artist studios, and brokerage team practitioners must improve their legal awareness, business capabilities and professional standards, and increase management efforts."
Tianyan Check App shows that recently Lin Xinru, Yu Shuxin, Meng Ziyi, Liu Yuxin and many other celebrity artists have logged off successively. According to incomplete statistics from Tianyan Check data and public information, more than 40 celebrity affiliated companies have been cancelled since 2021.Among them, March and August are the peak periods of cancellation. From the point of view of the places of registration, Shanghai and Zhejiang have the largest number of companies with the registration places, 15 and 13 respectively.
According to Tianyan Check data, there are currently more than 10,000 artist brokerage-related companies in China. There are nearly 700 companies with "studios" in their names, of which sole proprietorships and individual industrial and commercial households account for 99.6%. It is worth noting that in recent years, the number of annual write-offs related to artist brokerage companies in my country has increased significantly. In 2019 and 2020, more than 1,000 artist brokerage-related companies in my country have cancelled. As of August 27, according to the industrial and commercial registration, Tianyan Check data shows that my country has cancelled more than 660 artist broker-related companies this year, and more than 100 related companies have been cancelled in June alone. (Data magazine synthesis)
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