Illustration: Chen Xia/GT

Sitting around a round table, a total of 34 Chinese actors, mainly fan-favorite young idols like Fan Chengcheng and Yang Chaoyue, recently attended a special training program - a tax law course. This may seem unrelated to their professions, but is actually vital to these stars' careers, since some public figures in the entertainment industry have become involved in negative tax-related issues, easily miring them in controversy and damaging their public image and audience appeal.  

The training program involves a multi-faceted curriculum for celebrities that includes information such as introducing the country's tax laws and compliance requirements, explanations of real-world tax cases by legal experts, as well as helping stars to coping with negative publicity and media fallout. The program was led by the National Radio and Television Administration (NRTA), with Liu Jianguo, the deputy director of the NRTA, attending the program's opening. Liu encouraged these stars to firmly reject "exorbitant paychecks," "dual contracts" and "tax evasion."  

The areas Liu mentioned reveal that the core of tax-related issues in showbiz is often rooted in complex causes. 

Take an actor surnamed Deng as an example. In 2022, the fourth audit bureau of the Shanghai Municipal Tax Service suspected the actor of tax evasion after an extensive big data analysis. However, Deng's method of tax avoidance was not outright refusal to pay taxes, but rather involved falsely reporting income by fabricating business transactions to disguise the nature of his earnings, according to a statement on the official website of the State Taxation Administration. 

His case shows that a tax training program is an important and pragmatic course of action for both stars and ­regulatory bodies. It shifts the old ­paradigm from the regulatory body's passive audits and enforcement to ­positively encouraging stars to voluntarily learn about the importance of paying taxes and the consequences of fraud. While educating stars, the program also protects their careers by helping them properly navigate tax scenarios. 

For celebrities, knowing right from wrong when it comes to taxes can be seen as a means of self-preservation, since due to their "high earnings, diverse income channels and complex financial structures, not all of them are aware they've crossed the tax compliance red line," Gao Lingling, a law expert, told the Global Times. 

Launching a tax training program like this is medicine for the showbiz's constant "tax pain." However, it cannot remain a one-off measure, and so should evolve into a sustainable, long-term mechanism.

The same training program was also launched in mid-April. According to the Beijing News, there will be a total of five such programs launched throughout the year. The training session seems to have developed into a relatively institutionalized practice. With each session, the mechanism is cultivating more popular celebrities to become role models for maintaining public figures' positive ethics in the entertainment industry. 

While such training programs can attract participation from celebrity trainees, the knowledge they acquire must also undergo examination. 

Since 2021, the State Taxation Administration of China has strengthened tax management for individuals in the entertainment industry by launching "double-random, one-public" tax inspections of celebrities, online streamers, and other industry professionals. The "double-random, one-public" approach means inspected subjects and enforcement officers are both randomly selected and the inspection results and penalties are promptly disclosed to the public. 

Binding such inspections and tax-related training programs together can not only form a powerful force to better regulate celebrities, but also show ­China's endeavor to form a healthy environment in the entertainment industry. Tax training has become a fundamental component of compliance for actors that is just as important as their talent. Through such training, the entertainment industry can aim to ­enhance the spirit of adhering to contract, thereby winning more audience trust. 

Besides Fan Chengcheng and Yang Chaoyue, other stars like Jing Boran, Bai Yu and Chun Xia also took part in the training course. Many of these stars are young generation workers in the industry and are widely popular among Generation Z fans. Their exemplary tax behavior and dedication to fulfilling social responsibilities can influence fans of the same generation. 

The author is a reporter with the Global Times. life@globaltimes.com.cn