Some of China’s biggest film stars are facing government tax probes after their contracts were leaked online last week, exposing what is thought to be a widespread practice of tax cheating.
On Monday, share prices of some of China’s biggest film houses and talent agencies crashed after news that the State Administration of Taxation would be investigating the film industry practice of signing “yin-and-yang” contracts which name one salary for tax authorities and a larger one as the actual contractual fee.
One of the worst hit by the sell-off has been a talent agency associated with Fan Bingbing, China’s highest paid performer, who was ranked by Forbes as the fifth highest-paid actress in the world in 2016. She is shortly to star opposite Jessica Chastain in the film 355.