China fines another live-streamer after tax evasion probe widens

A live-streamer sells products ahead of the Singles’ Day shopping festival on November 11, 2021 at a JD outsourcing livestream company in Beijing on Nov 9, 2021. The crackdown on China’s booming live-streaming sector marks an escalation in President Xi Jinping’s campaign against illegal sources of income, part of a ‘common prosperity’ drive that aims to narrow the wealth gap. — AFP

China has fined another live-streaming personality for tax evasion, expanding a probe that’s ensnared some of the country’s most popular influencers and disrupted e-commerce at Alibaba Group Holding Ltd.

Ping Rong, a Guangzhou-based live-streamer, was fined 62mil yuan (RM41.01mil) for evading taxes in 2019 and 2020, the State Taxation Administration said in a statement. The influencer commanded a following of about 24 million fans on the video platform Kuaishou Technology. As of Tuesday afternoon, Ping didn’t show up on in-app searches.

The crackdown on China’s booming live-streaming sector marks an escalation in President Xi Jinping’s campaign against illegal sources of income, part of a “common prosperity” drive that aims to narrow the wealth gap. Celebrities have been targeted by tax authorities, as the drive to redistribute income dovetails with a broader clampdown on the entertainment industry for promoting “improper” idol culture. A Kuaishou spokesperson didn’t respond to a request for comment.

“We will strengthen analysing big data in tax collection and improve tax regulations targeting live-streamers,” said the local taxation bureau of Guangzhou, a city in the country’s south.

Live-streaming has in past years become key to enticing and retaining buyers on online platforms from Alibaba’s Taobao to Kuaishou.

The latest penalty came after the watchdog fined top live-streamer Viya a record US$210mil (RM878.91mil) in December, accusing her of concealing personal income and making false declarations. A month prior, authorities fined two live-streamers in Hangzhou nearly US$15mil (RM62.77mil) in total for illegally booking employment income as business income. All three have suspended their work and haven’t re-appeared in live-streaming studios since.

Tax authorities asked celebrities to voluntarily report wrongdoing in exchange for lighter punishment in September, after announcing a new round of tax checks. More than 1,000 live-streamers and workers in other fledgling industries have voluntarily paid back taxes since. – Bloomberg