Jung Soang Found Involved in Tax Evasion... Chinese Tax Authorities Consider Jung Soang's Tax Evasion Report
Total of 299 Million Yuan Imposed in Additional Taxes and Fines on Jung Soang
[Asia Economy Beijing=Special Correspondent Jo Young-shin] Zhang Heng, the ex-boyfriend of actress Zheng Shuang, who angered all of China with a surrogate scandal, has been fined 32.27 million yuan (approximately 5.94 billion KRW). He has been under investigation by tax authorities for assisting his ex-girlfriend Zheng Shuang in tax evasion.
According to Chinese media including People.cn on the 19th, Shanghai tax authorities discovered charges against Zhang Heng during the investigation of Zheng Shuang’s tax evasion case.
According to the investigation results, Zhang Heng was confirmed to have helped evade taxes during the contract for Zheng Shuang’s appearance fee for the 2018 drama "Qian N? You Hun." At that time, Zheng Shuang’s actual appearance fee was 160 million yuan, but only 48 million yuan was officially received. The remaining amount was paid as capital increase funds to a shell company effectively controlled by Zheng Shuang.
It was revealed that Zhang Heng directly negotiated with the production company regarding the payment method of the appearance fee during this process. According to Chinese tax law, for tax evasion crimes, illegal income is confiscated and a fine of up to 100% of the evaded tax amount can be imposed. This time, Zhang Heng’s fine was set at 75% of the 43.027 million yuan tax evasion amount related to the "Qian N? You Hun" appearance fee.
The tax authorities explained, "Zhang Heng assisted Zheng Shuang in tax evasion and the nature of the crime is very serious," but also took into account circumstances such as Zhang Heng reporting the tax evasion.
Zheng Shuang is considered a figure who triggered the rectification movement in the Chinese entertainment industry. Earlier this year, she was effectively expelled from the Chinese entertainment industry after being embroiled in a surrogate scandal.
She secretly married Zhang Heng in the United States in 2018 and hired two surrogates to each bear a child. The couple broke up when the surrogates were about seven months pregnant. It was later reported that the children were abandoned, causing a huge shock in Chinese society.
As the controversy grew, Zheng Shuang was investigated for tax evasion and was found to have evaded taxes by not reporting personal income of 191 million yuan from 2019 to 2020. Chinese tax authorities imposed a total of 299 million yuan (approximately 53.9 billion KRW) in back taxes and fines on Zheng Shuang last August.
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