China launches tax evasion probe into film, TV industry

SHANGHAI (Reuters) - China will launch a tax evasion investigation into the country’s film and television industry, the tax bureau said in a statement posted on its official website on Sunday.

Some of the country’s most famous actors have been accused of signing so called “yin-yang” contracts - one contract setting out agreed payment terms and a second one with a lower figure for the tax authorities to avoid payment of tax.

China’s cinema market is worth $8.6 billion.

The State Administration of Taxation (SAT) has asked local bureaus in the southern province of Jiangsu, among others, to carry out investigations.

“If violations of tax laws and rules are found, they will be dealt with in accordance with the law,” said the SAT.

Reporting by Engen Tham and Wang Jing; Editing by Michael Perry

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