Tax authorities publicly reported three cases involving MCN institutions and online streamers for tax-related violations. On the 19th, the State Administration of Taxation disclosed that tax departments in Hebei, Hunan, and Liaoning provinces exposed two cases of tax violations by Multi-Channel Network (MCN) institutions and one case of tax evasion by an online streamer. The combined amount of late fees and penalties for the three cases exceeded 25 million yuan.
According to the announcement, Hebei Chuming Cultural Media Co., Ltd. (an MCN institution) had others issue invoices that did not correspond to actual business operations, falsely deducted input tax, inflated costs, and illegally enjoyed preferential income tax treatment for small and micro enterprises. Additionally, the company paid labor compensation to contracted streamers through personal bank accounts without withholding personal income tax. Tax authorities have transferred the company's suspected invoice fraud leads to public security agencies. The case has now been transferred by public security departments to the procuratorate for review and prosecution.
The other two cases in the announcement involve Hunan Yanke Cultural Media Co., Ltd. (an MCN institution), which failed to withhold personal income tax when paying wages and labor compensation to contracted streamers for live streaming services; and online streamer Li Chengxiang, who conducted live streaming sales under his personal name and through an individual business entity he established, concealed sales revenue through personal account receipts and other methods, made false declarations, and underpaid nearly 2.5 million yuan in personal income tax, value-added tax, and other taxes.
"The internet is not beyond the reach of law. Whether online streamers, MCN institutions, or platform operators, all must adhere to compliance standards," stated a relevant department head from the State Administration of Taxation. MCN institutions should promptly report tax-related information about online streamers and partners, and conscientiously fulfill tax obligations and withholding duties. Personnel in the online streaming industry should consciously strengthen their awareness of lawful tax payment and maintain compliant operations.