Wu Jing Faces Tax Evasion Amidst State Administration Of Taxation Campaign
More than 500 Chinese actors and film industry professionals are facing tax evasion cases amidst the State Administration of Taxation campaign. The tax department already questioned 17 artists in the business, and it includes the actor and director Wu Jing.
Wu Jing has to pay more than 200 million Yuan or about $29.17 million worth of overdue taxes. According to Vaaju, his account also got sealed.
The 44-year-old star directed and starred the propaganda movies, "Wolf Warrior" and "Wolf Warrior II." The latter earned over $600 million in the Chinese box office alone and got a domestic gross of $874 million.
Although "Wolf Warrior II" turned to be a big hit, it is now facing some tax issues. The film is said to be produced by 14 companies, and 3 of those are registered in Horgos, where its authorities gave benefits to film and television firms.
"Wolf Warrior 2" is mainly produced by Wu Jing Holdings Beijing Dengfeng International Culture Communication Co., Ltd. and Beijing Dengfeng, which has a subsidiary, Dengfeng Company. Also known as Jack Wu, the martial artist reportedly earned 1.7 billion Yuan, but only paid 500,000 Yuan worth of tax. He should have paid 4 billion Yuan. Hence, his account got sealed, and other people who invested in the movie didn't receive box office distribution.
"Hengdian Studio Meeting Contents" document showed that the CCP General Tax Administration obliges film and television companies to control and assess taxation by itself. It also implemented the "film and television circuit's tax recovery work."
The "Content of Hengdian Studio Meeting" also noted that the Taxation Administration created four phases to collect the overdue taxes and fines from over 500 Chinese actors and film professionals. The first phase is expected to be completed by the end of the year. It requires these people to compute their paid taxes and regularly pay their overdue amounts.
The second phase involves the questioning process, which will be finalized on December 15. The third phase includes a tax official who will regularly visit the actors to collect their unpaid taxes. It is set to finish by March 2019. Lastly, the fourth phase will let the Taxation Administration audit these prominent actors and carry out spot-checks that will conclude by June 2019.