Zheng Shuang’s (郑爽) tax evasion case finally came to end in August when the Shanghai tax bureau fined her 299 million RMB for back taxes and fines. She was ruled by the taxation department to have failed to declare all her earnings and evaded paying taxes with the use of “yin yang contracts” for her series, “A Chinese Ghost Story”.

As a result, she had to pay back the taxes owed and fines imposed on her. Based on the taxation laws, Zheng Shuang didn’t face any criminal liability as the Shanghai taxation bureau explained this was Zheng Shuang’s first offense and she had already paid off the unpaid taxes and fines within the allotted time frame.

Zheng Shuang’s ex-husband, Zhang Heng (张恒), was also being investigated by the tax authorities for his involvement in brokering the deal with the production companies and using methods to hide the money Zheng Shuang was really earning.

On October 18, the Shanghai tax bureau explained Zhang Heng was serving as Zheng Shuang manager’s during “A Chinese Ghost Story”, so he would be responsible for the contract and salary negotiations, contract break down, payment collections and more. They said he planned set up shell companies and several “capital increase agreements” to hide the sky-high salary from tax authorities and help Zheng Shuang avoid her tax obligations.

Zhang Heng was penalized with a fine amounting to 32.27 million RMB, which is 75% of Zheng Shuang’s salary of 43.03 million RMB for “A Chinese Ghost Story”. The Shanghai tax bureau has already delivered the judgment to Zhang Heng and he is to pay the fine within the allotted time frame. The bureau is in the process of recovering the amount in accordance to the law.

Zhang Heng’s Weibo account has been shut down by the platform in the government’s efforts to clean up the internet.

Credit: Weibo (1)