China's tax authorities crack down on major tax evasion and subsidy fraud cases

Today (April 21, 2025), the State Administration of Taxation of China announced a major case of false invoices, tax evasion, and subsidy fraud by an online anchor management agency in collusion with illegal intermediaries. After investigation, Guangdong Huizhou Gaofushuai Culture Media Co., Ltd. issued 1,196 false invoices by setting up shell companies, with a total value and tax of 226 million yuan, evading more than 32 million yuan in personal income tax for more than 700 anchors, and the company underpaid a total of about 21 million yuan in various taxes and fees. Recently, the Inspection Bureau of Huizhou Municipal Taxation Bureau punished the company in accordance with the law.

This company is an online anchor management agency, also known as the "MCN agency", which is an important intermediate link between live broadcast platforms and online anchors. The company is suspected of evading the obligation of withholding personal income tax, planning to help its anchors evade taxes, falsely issuing special value-added tax invoices, and colluding with illegal intermediaries to defraud local rewards and subsidies, etc., which seriously disrupted the order of tax collection and management and destroyed the fair competition market environment.