The tax authorities publicly disclosed 3 cases of tax violations involving MCN agencies and online live streamers.

According to the State Administration of Taxation, tax authorities in Hebei, Hunan, Liaoning, and other places exposed two cases of illegal tax activities by network information distribution service agencies and one case of tax evasion by a network anchor. The total amount of late fees and fines involved in the three cases exceeded 25 million yuan. From the announcement, it was revealed that Hebei Chuming Culture Media Co., Ltd. used invoices that did not match the actual business situation, falsely offset input tax amounts, inflated costs, and illegally enjoyed preferential corporate income tax treatment for small and micro-profit enterprises. Additionally, the company paid labor compensation to its contracted anchors through personal bank accounts without withholding and paying personal income tax. The tax authorities have transferred the relevant clues of suspected false invoices issued by the company to the public security organs. Currently, the case has been transferred to the procuratorial organs for examination and prosecution. The other two cases mentioned in the report are Hunan Yanke Culture Media Co., Ltd. not withholding and paying personal income tax for the wages and labor compensation of its contracted anchors for live broadcasting services, and network anchor Li Chengxiang concealing sales income through personal accounts under the name of an individual industrial and commercial household, making false declarations, and underpaying personal income tax, value-added tax, and other taxes by nearly 2.5 million yuan. "The internet is not an extralegal place. Whether it's a network anchor, MCN agency, or platform operator, they must adhere to the bottom line of compliance," said the person in charge of the relevant department of the State Administration of Taxation. MCN agencies should promptly report tax-related information of network anchors and partners and conscientiously fulfill their tax obligations and withholding obligations. Network live streaming personnel should enhance their awareness of tax compliance and adhere to legal operations voluntarily.