Why money laundry fancy take place in the Film industry?
Chinese actress Fan Bingbing was revealed by host Cui Yongyuan on May 28, 2018, that she allegedly signed two different employment contracts with film investors before filming. In one of the contracts, Rmb10m as Fan’s salary for tax payments standard paid to the government. The other, signed in secret, was divided into four groups, with total revenue of 60 million yuan. This income, however, would not be seen by the government, allowing her to avoid paying more taxes. After the incident came to light, the local tax bureau immediately launched an investigation into Fan’s tax evasion and evasion, culminating in Fan paying 884 million yuan in back taxes and evading punishment. Meanwhile, the media has repeatedly reported that many celebrities have gone to the local tax bureau to make up for missing taxes or cancel their own companies after the incident.
The incident caused a stir in society at the time, with people angry about why celebrities are still trying to evade taxes even though they earn more than ordinary people. They also questioned why the film investment company was willing to sign a grey contract to pay Fan 60 million yuan. Are the 60 million yuan in the grey contract really all belong to Fan?
Such doubts are not groundless. In China, the film industry has a long history as the best place to launder money. In recent years, more and more people begin to feel confused. Nowadays, the investment of Chinese films is larger and larger, with hundreds of millions of yuan at every turn, and the production cost is more than Hollywood. However, the films produced are still so ugly, why? The answer is that many filmmakers have no intention of making a qualified film at all.
The most obvious form of money laundering in the film industry was in Hong Kong filmmaking in the 1990s. Most gang members, after receiving an illicit sum of money, use their influence to intimidate prominent Hong Kong actors, directors, and writers to produce films they invest in for minimal (or no) pay. And in the local cinema when the release of its box office fraud to complete a money laundering.
Firstly，the main reason why the film and television industry is a focus of money laundering is that the investment in the film and television industry is very opaque, and it turns out to be a mess, with a lot of cash transactions and a lot of IOUS. It is a natural place for money laundering. This is where the money goes. The second is that the film and television industry is a propaganda field. As for the members of the Party committee, there must be propaganda members who respond for promoting the positive image of the Chinese Communist Party. However, most of the money of doing the films this work ends up in the pockets of officials. The show is the most typical way they use money laundering. This is where the money comes from. In this model, it’s not really about whether or not the films are going to be shown, it’s about money laundering.
Now other private money into the film and television industry, is relatively formal, because the final may be the purpose is really on releasing, try to make money in the market. All operational commercialization, there should be invoices, the rebate, this kind of money laundering is more hidden, more secure, there is no such as above naked, but the truth is the same.
