Project Suspected to Be Stalled, Uncertain Career Paths, Song Zu’er and Jiang Yiyi Sound the Tax Alarm Again

In an exclusive report by Sohu Entertainment (By Zhuang Zixiu), the entertainment industry is once again rocked by a tax evasion scandal involving Song Zu’er and Jiang Yiyi.

The fallout from these revelations has already impacted at least five upcoming dramas, spanning various platforms and production companies.

Tax evasion has long been a red line in the entertainment world, with several celebrities seeing their careers plummet after crossing it. As a result, insiders reveal that most stars now exercise extreme caution, often enlisting the help of professional financial advisors to navigate tax matters.

With Song Zu’er and Jiang Yiyi’s recent entanglement in tax issues, it serves as a stark reminder to all industry practitioners about the importance of tax compliance.

Project Suspected to Have Stalled, Impacting Multiple Upcoming Dramas

On August 31st, actress Song Zu’er was accused of tax evasion by a former employee, with the amount reaching 45 million yuan. Although the matter has not yet been conclusively settled at the official level, the lack of response from Song Zu’er herself, coupled with the swift disassociation from relevant parties, has cast a shadow over her future.

Firstly, upon the revelation of this news, netizens noticed that posts related to Song Zu’er had been deleted by several TV stations including Beijing TV, Hunan TV, Zhejiang TV, Jiangsu TV, and Anhui TV.

Secondly, Song Zu’er was recently announced as the spokesperson for Pantene. However, after the incident, Pantene first removed promotional materials featuring Song Zu’er. Although they later reposted the materials, they activated a one-click protection and canceled all future live endorsement activities with Song Zu’er.

Song Zu’er’s former management company, Xi Tian Pictures, also released a statement promptly, stating that since October 2020, Song Zu’er and her family have taken all financial documents and managed them independently. They have not been involved in any financial accounting or tax filing related to the artist, nor are they aware of them.

In light of recent events, there are growing concerns within the industry that the “Carefree Crossing” project may be shelved. Insiders report receiving notifications indicating the project’s suspension.

The situation looks bleak for Song Zu’er. If her alleged tax evasion is proven, it could impact several dramas, including “Carefree Crossing,” “Difficult Manufacturing,” and “Bend,” across various platforms and production companies such as iQIYI, Tencent Video, and Huace Film & TV!

Coincidentally, while Song Zu’er deals with her tax issues, another child star, Jiang Yiyi, faces similar accusations. Official statements confirm that Jiang Yiyi has already paid RMB 2.3879 million in back taxes.

In response, Jiang Yiyi clarified that her agency had managed her finances, and she was unaware of the tax matters. She promptly rectified the situation by completing the back payment on July 6th without any intent of tax evasion.

However, Jiang Yiyi’s agency refuted her claims, stating they had warned her about her studio’s tax risks, but she did not address them at the time.

The situation remains unresolved, and Jiang Yiyi’s response has not quelled public doubts, potentially impacting her career.

Reports indicate that Jiang Yiyi has two dramas awaiting broadcast: “Bloody Glory” and “Between Flowers and Wine.”

Artists Exercise Extreme Caution Under the Taxation Red Line

Each celebrity scandal not only tarnishes reputations but also deals a heavy blow to production companies.

Song Zu’er and Jiang Yiyi’s involvement has impacted at least five productions, with Song Zu’er’s projects being particularly significant, involving major platforms and production companies.

Mr. Li, a legal representative from a talent agency, expressed his frustration: “Despite production companies being extremely cautious nowadays, they still can’t completely eliminate risks. If a project is halted, the production company bears the brunt of the fallout for the artist. Investments of tens or even hundreds of millions could be lost.”

Many netizens sympathize with the affected projects.

In response, producer Qi Ya argues that artists, having attained social and financial standing, should bear corresponding responsibilities. Ignorance cannot excuse tax evasion. Even if remedial actions are taken afterward, breaking the law remains breaking the law.

Qi Ya believes that the stringent punishment of artists engaged in illegal activities has led to greater tax compliance among many artists.

Qi Ya revealed that many artists previously handled their tax affairs carelessly, with some evading taxes through contract splitting or income form changes. However, the downfall of several celebrities due to tax issues has served as a strong deterrent.

“I know many A-list celebrities, and these days, they all hire professional financial advisors from large corporate firms to handle their finances, especially taxes. They don’t wait until the end of the year or even one or two years to settle their taxes; instead, they pay them monthly, aiming for transparency in every transaction. This has become standard practice in the film and television industry.”

According to a source close to the artists, after the incidents involving Song Zu’er and Jiang Yiyi, their talent agency promptly held meetings to reiterate the importance of tax compliance and urge artists to be more vigilant.

So, how can such tax-related problems be avoided?

Qi Ya pointed out that many artists nowadays establish studios once they become famous. However, the management of these studios is often chaotic, with family members or relatives taking up positions without relevant expertise. They also tend to neglect tax matters until problems arise, attempting to shift the blame afterward, which is unacceptable.

“If you’ve set up a studio, you should have the right professionals and management systems in place, as well as a good understanding of tax regulations. You can’t sign contracts and collect money without understanding tax implications and then claim ignorance when issues surface.”

Qi Ya concluded, “The key to staying clear of tax troubles is to eliminate any sense of luck! In China, tax investigations can go back up to five years. Engaging in irregular practices is like planting a time bomb for your career, and you’ll deeply regret it when it explodes.”


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