Analysis of Zheng Shuang's Tax Evasion Case and Its Implications

On August 26, 2021, the Shanghai Municipal Tax Service's First Inspection Bureau revealed that actress Zheng Shuang had failed to declare personal income of 191 million RMB from 2019 to 2020. She evaded 45.27 million RMB in taxes and underpaid an additional 26.52 million RMB. As a result, Zheng was ordered to pay back taxes, late fees, and penalties totaling 299 million RMB. An online article titled "Zheng Shuang's Tax Evasion Scheme Stuns Industry Insiders" detailed the specific methods she used to evade taxes, so we won’t repeat them here. Instead, this article will focus on three key questions:

• Which tax laws did Zheng Shuang violate?
• Why was Zheng Shuang penalized so heavily?
• What lessons can be drawn from Zheng Shuang’s case for personal tax planning?

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