Chinese Actress Fan Bingbing Fined $130 Million for Tax Evasion

BEIJING–Fan Bingbing is to be fined up to $130 million for tax evasion, China state news outlet Xinhua said on Wednesday, the first public notice since the actress and fashion darling became embroiled in the financial scandal.

According to the statement, the actress owes $42 million in late taxes and fees, along with a fine of $86 million. Fan was accused of using “yin-yang contracts”, which divert payments into a company owned by the actress in order to lower her tax liability. At the same time, the practice is fairly common among the industry, leading some to question why Fan was targeted. The statement did appear to offer a resolution to the months-long drama, saying that she would avoid criminal charges if paid by an unspecified deadline.

Since the scandal erupted, Fan–who ranked as China’s best paid actress four years running according to Forbes and among the world’s best paid–has vanished from the public eye, leading to speculation she may have been placed under house arrest. She was last seen in public in June.

Up until this incident, Fan was a constant on the red carpet and often made high profile appearances, showing up to the Cannes Film Festival and the Met Gala in couture pieces, and at events such as Alibaba’s Singles’ Day gala. With over 60 million Weibo followers, she was tapped by fashion brands as an ambassador from Mont Blanc, Guerlain, De Beers, to H&M. She also has her own cosmetics line, which was launched at the start of this year.

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