SINGAPORE: A Chinese influencer whose social media accounts had previously been banned for flaunting his luxurious lifestyle and excessive wealth, was fined 13.3 million yuan (US$1.8 million) for tax evasion, Shanghai tax authorities said in a statement released on Wednesday (Dec 18).
Wang Zibo, also known as “Bo Gongzi” or Master Bo, had underpaid his taxes including his personal income tax and value-added tax totalling 7.49 million yuan, the Shanghai Municipal Tax Service said.
This is part of China’s wider crackdown on tax evasion and wealth flaunting.
The Shanghai-based influencer was known for his love of Hermes luxury goods and was part of a wave of high-profile social media account suspensions in May that hit China’s super-wealthy star influencers, many who became widely known online for flaunting glamorous designer bags, sports cars and high-end jewellery.
On Douyin, the version of TikTok in China, Wang’s account had been muted and restricted from gaining new followers, checks by CNA showed.
His accounts on other Chinese social media platforms like the Sina Weibo microblogging site and Xiaohongshu app had also been deleted, Chinese media outlets reported.
China takes a tough stand on tax evasion and under the law, authorities are entitled to recover tax amounts, unpaid or underpaid, with surcharges imposed.
Those who cheat, conceal or fail to pay their taxes are subjected to hefty fines and investigated for criminal responsibility under the law.
Other Chinese A-listers have also come under investigation for tax crimes.
In 2018, megastar Fan Bingbing, one of China’s highest paid actresses, was blacklisted from the entertainment industry and fined around 883 million yuan for tax evasion and other offences.
Wang, who has a combined social media following of nearly 3 million, carried out live broadcasts online between 2021 to 2023 – promoting designer goods and collecting commissions, Shanghai tax authorities said.
He earned “considerable” sales from promoting goods on his live broadcasts, Shanghai tax authorities said, adding that his reported income in May had been inconsistent with money he earned from the large sales garnered from his live broadcasts.
This prompted investigators to look into Wang’s accounts.
After interviewing Wang, officials found he had used the personal bank accounts of close relatives to conceal his income and earnings.
Wang admitted to using his mother’s personal bank account and also made withdrawals to evade paying taxes, officials said.
In 2022, he collected 14.4 million yuan in commissions and 4.6 million yuan in 2023 through his mother’s bank account.
For this, he was fined a total of 13.3 million yuan in various taxes and late payment fees and has since paid the amount in full, authorities added.