Chinese authorities, intensifying tax regulation for the entertainment industry in September, imposed a record $210 million fine on Viya (Huang Wei), one of China’s most popular influencers, on December 20, 2021. The reason for the penalty is tax evasion. . .
“Live Queen”
36-year-old Viya, one of China’s popular influencers, quickly became famous with the increase in online shopping. So much so that she began to be known by the nickname “Live broadcast queen”. Known for its ability to sell just about anything, Viya had over 120 million followers. In 2020, it could sell almost anything, including its rocket launch service, for 40 million Chinese Yuan ($6 million).
The $210 million fine is the largest ever for many online influencers like Viya, who compete to entice consumers to spend millions on products like cosmetics, clothing and appliances. Viya was one of the biggest stars in Alibaba’s Taobao market. It attracts traffic and increases consumption.
Viya, known for hosting a popular shopping feed on e-commerce platform Taobao, has been fined a record ($210 million) for tax evasion.
He Evaded Taxes by Hiding His Personal Income and Making Misrepresentations
Huang Wei, also known as Viya, has been ordered to pay 1.34 billion yuan in taxes, late fees and fines, the Provincial Tax Administration said on Monday. In the statement, it was stated that he avoided taxes totaling 643 million yuan in 2019 and 2020 by concealing his personal income and making false statements.
After the decision, the shares of some online sales sites in the country decreased.
he apologized
Viya apologized on Monday to his Weibo microblogging account, which has nearly 18 million followers. Saying that he felt “deeply guilty”, the influencer said that he would “fully accept” the penalty imposed by the tax office. He also promised to pay the fine on time.
But despite his apology, he took his Weibo (Chinese version of Twitter), Douyin (Chinese version of TikTok) and Taobao accounts offline.
At the beginning of the epidemic, Viya hosted a live broadcast to raise money for businesses and individuals struggling in Wuhan, and managed to raise approximately $ 32 million in a few hours.
Influencers Are Waiting in Panic
According to the state-owned China News Service (CNS), more than 1,000 influencers are panicking to pay their taxes after the government announced in September that it would strengthen regulation of government revenue collection from the entertainment industry. According to CNS, taxpayers have until the end of 2021 to avoid heavy penalties. Two other high-profile Chinese publishers – Cherie and Sunny – were collectively fined $15 million in September for tax evasion.
Beijing is intensifying surveillance of the entertainment industry. Celebrities in China should avoid exposing their wealth and adhere to “core socialist values”, China’s internet regulator said in November. In November, China also announced a blacklist of the names of 88 celebrities it has cited for “illegal and unethical” behavior.
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