On July 10, 2026, tax authorities in Shandong, Zhejiang, Sichuan and other regions exposed seven cases of tax evasion by internet celebrities and online stores, bringing the total to 11 typical cases this year. The message is clear: any attempt to exploit loopholes for tax evasion will face legal consequences.
China's platform economy has grown rapidly, with online retail reaching 15.97 trillion yuan in 2025 (up 8.6% YoY). However, some bad actors use illegal tactics — registering shell companies, converting service income to business income, diverting sales proceeds to personal accounts, and filing false returns.
Professor Huang Wenyi of Renmin University noted that believing online transactions can escape oversight is self-deception. With continuous improvement of the data-driven tax governance system and implementation of platform enterprise tax reporting regulations, supervision has entered a new phase of legalization and standardization.
Some internet celebrities maintain small-scale taxpayer status despite revenue far exceeding the 5 million yuan threshold. Professor Gu Cheng of Dongbei University of Finance and Economics explained that under the new VAT Law, once discovered, tax authorities can apply the 13% general taxpayer rate retroactively rather than the 1-3% small-scale rate, dramatically increasing penalties.
Professor Shi Shaobin of Shandong University emphasized that business deregistration does not eliminate past tax obligations, and fraudulent deregistration can be revoked. Tax authorities will continue optimizing services while strengthening supervision of new business forms.