On 28 april, the national tax administration published a case of tax theft. During the period from 2021 to 2024, red and white ice on the “tracing shop” network was found to have reduced the amount of personal income tax, value added tax, tax due, etc., by converting the nature of income, false declarations, etc., to a total of $9. 1118 million, for which the national tax administration has imposed penalties in accordance with the law。
The current white-ice shivering account has been shown to be banned and unobserved for violations of relevant laws and policies; its little red book account has also been shown to be unobserved for violations of relevant community rules; and its microblogging account has been silenced and unobserved。
White ice's vibrating video number indicates that the user is forbidden to speak
Establishment of a “shell individual” to convert income
One of the most common tax havens in the red ring
Short video producers, white ice, have more than 40 million fans on the shivering platform, and are the head-on net red of a restaurant type. The number of short videos released by them, such as food scouts, taxis and fireworks surveys, is high. Skywatch shows that there are many companies associated under white ice, mainly those that disseminate culture。
However, according to a survey conducted by the state tax administration, white ice has been realized on web platforms mainly through cooperation in advertising and commissioning, but white ice has long been declared as low in personal income since 2021。
According to press reports, the inspectorate of the state tax administration organized interviews with three staff members, who stated that it had been found that white ice was a long-term source of significant revenue for individual businesses registered in chongqing and that there were no insured persons in business information, that is, there were no permanent staff. It is therefore highly suspected that the individual may not have actual business activities。
Following an inspection by tax inspectors of the registered address of individual business owners in chongqing, white ice showed no signs of actual production. This is an empty shell of "individuals."。
It has been verified that short videos made by white ice are produced mainly by their individuals and are promoted by means of personal images, traffic, etc., and that the income earned should be personal labour income. Therefore, it is assumed that white ice translates personal income into that of individual business owners, with the aim of reducing personal income tax by means of a false cost, tax incentives, etc。
White ice creates a "shell individual" to convert income
In response, ma xin feng, a renowned tax expert and director of greenfield law firm in henan, introduced the creation of a “shell of self-employed persons” and the change of the term “labour pay” to “business income”, which is one of the most common tax avoidance schemes in the red ring. It is essentially his personal image and flow, which, in tax law, is “remunerated for work” and is subject to a maximum of 45 per cent personal income tax. However, he registered in chongqing a “shelled individual businesser” with no employees and closed doors, packaging the money as “business income” for the individual. Since operating income not only deducts costs, it also benefits in some places from tax incentives such as authorized collections, at rates well below 45 per cent. This “transformation of income” is typical of tax evasion. In practical verifications, individual households can be punctured as long as they are unoccupied and do not actually operate。
You want to buy your own bag and pay your taxes
Why isn't this road working
The inspectors also found that white ice had been taxed less, that funds had been remitted to the human resources company in shandong through affiliated companies, and then through multilayered streams, that the funds had eventually been returned to white ice and to the personal bank accounts of the persons concerned, i. E. By using “private households” for collection, and that the related income had not been taxed。
As the investigation progressed, the inspectors discovered a large number of luxury invoices on the books of a company holding direct shares of white ice. Almost all of these brand bags, high-end jewellery, etc., appear in the living video previously shared by white ice, which is used daily by himself and his family and has nothing to do with company operations。
It's a big story
The director of inspection iii, li myung yi, of the inspectorate-general of state tax administration, made a presentation and the inspectors interviewed white ice after obtaining a wealth of evidence. In the face of hard evidence, white ice admits the fact that it converts income through the creation of shelled individual business owners and earns income through the company's false subsidies. At the same time, it has voluntarily acknowledged its low tax levels through false declarations of second-hand house prices and borrowing from companies for personal consumption。
In response, ma xinfeng described the large number of billings for brandy and high-end jewellery placed on the books of white ice companies. The tax inspectors compared these invoices to the daily video of his life and found that all these luxury items were used by him and his family on a daily basis and were “not related to the business”. The company law makes it clear that personal consumption, which is not related to business, can never be deducted as a company cost before tax. In the view of the tax authorities, this is a 20 per cent personal income tax paid in good faith, in the light of the company's “redred off” share. "want to buy your own bag to pay off your taxes? It's a dead end.”
Tax experts:
Under the bank tax information sharing mechanism
Use of third-party corporate transition revenues “one by one”
The office of the inspector general of the national tax administration organized three inspections of wushan during a press interview, in which he reported that white ice had paid a tax less, that funds had been remitted to shandong's human resource company through affiliated companies, and that the funds had been revolving through multiple layers, and that the funds had eventually been returned to white ice and the personal bank accounts of the persons concerned, i. E., they had been collected using “private households” and the related income had not been declared taxable. This is a typical violation of false declarations and income tax evasion。
Ma xinfung explained that, in order to wash the money into his pocket, white ice, through a related company, had transferred funds to a human resources company in shandong, passing through layers and finally returning to his personal bank, kari, who was associated with him, with no tax declaration at all. This financial chain, which uses third-party companies to transition and end up in private households, under the current banking tax information-sharing mechanism, is simply “one by one”。
On 28 april, the general directorate of state taxes informed that white ice had been found to have reduced personal income tax, value added tax and tax dues totalling $9. 1118 million between 2021 and 2024 by converting the nature of income and making false declarations. In october 2025, the general state tax administration, in accordance with the relevant laws and regulations, including the law of the people's republic of china on the administration of the collection of taxes, decided to impose penalties for the recovery of taxes, fees, arrears and penalties totalling rmb 18. 9124 million. At present, all the taxes and fees involved, late payments and fines have been recovered。
Ma xinfung explained that white ice's tax deduction over these four years was $9,118 million, leaving almost $10 million, mainly in late payment and fines. According to article 63 of the law of the people's republic of china on the administration of the collection of taxes, a taxpayer who steals his tax shall be paid by the tax authority for the non-payment or underpayment of his tax or late payment, and shall be fined at the rate of 50 per cent or less than five times the amount of his tax。
Ma xinfung indicated that the severity of the penalty was due to the subjective intent of white ice (such as the establishment of a shell company, false declarations of second-hand house prices, etc.). Although the funds are now fully accounted for and criminal liability is avoided (under the penal code, after the first tax evasion is notified by the tax authorities in accordance with the law, the payment of the tax due, the payment of the late payment, the administrative penalty imposed, and the exemption from criminal liability), the cost of this $18. 91 million is sufficient to sound the alarm for similar high-income groups。
Red star news chief, wu yang
Editor, yang zhen, audit, zhijiang
