On the afternoon of October 13, 2024, Chinese nationalist commentator Sima Nan was live-streaming at Pangdonglai Angel City in Xuchang, Henan, when on-site staff asked him to leave. (Video screenshot)
[People News] The news that "Sima Nan was fined over 9 million yuan for tax evasion" trended on China's Weibo hot search list on Friday, March 21. Known for his extreme nationalist rhetoric, Sima Nan has been a prominent figure in China’s public discourse for years. He is often regarded as an "anti-American warrior" with a massive following, yet he is now facing an official investigation. What is the reason behind this sudden crackdown? Below is a report from Radio Free Asia's journalist, Katie.
According to a report by Chinese state media CCTV News, the Beijing Tax Bureau announced on March 21 that Sima Nan and his affiliated business were ordered to pay a total of 9.2694 million yuan (approximately $1.3 million) in back taxes and penalties.
The report stated that tax authorities had initially identified Sima Nan's suspected tax evasion using "big data tax analysis." As a result, an official investigation was launched, revealing that between 2019 and 2023, he evaded a total of 4.6243 million yuan in personal income tax and value-added tax (VAT) by concealing income and filing false declarations. Additionally, Sima Nan’s company, a Beijing-based film and television planning center, was found to have underpaid 753,200 yuan in corporate income tax by falsely inflating costs and improperly benefiting from tax incentives intended for small and micro enterprises.
Crackdown on Negative Comments About Private Enterprises? Official Media Issues Strong Criticism
Si Ma Nan, whose real name is Yu Li, gained notoriety in the 1990s as a so-called 'anti-pseudoscience warrior' for his critiques of qigong and Falun Gong. Throughout the years, he has consistently targeted Western society and liberal intellectuals, earning the label of an 'anti-American warrior.' His extreme nationalist views frequently spark significant controversy and criticism.
Simultaneously, Si Ma Nan has taken a firm stance against China's private economy, asserting in a video that state-owned enterprises are the backbone of the Chinese economy, while questioning the contributions of private enterprises to tax revenue and Gross Domestic Product (GDP). In 2021, he accused the high-tech company Lenovo of selling state-owned assets at prices below market value and criticized the company for its lackluster performance while compensating executives with excessive salaries. Lenovo's parent company has denied these allegations.
Si Ma Nan boasts a substantial following on various social media platforms, including Douyin, Weibo, and Toutiao, with over 56 million followers across the internet. However, since early November of last year, his accounts on these platforms have not been updated. The Hong Kong South China Morning Post reported at the time that Si Ma Nan has been banned from speaking on social media for a year, although the reasons for this remain unclear.
The recent punishment of Sima Nan comes at a time when the Chinese Communist Party (CCP) is striving to reassure private enterprises to enhance economic confidence. In February, CCP leader Xi Jinping gathered top private entrepreneurs for a symposium, promising that private enterprises would play a significant role in the Chinese economy and ensuring they would have the same market access conditions as state-owned enterprises. On March 2, state media outlet Xinhua News Agency featured an article on its front page titled 'I have always supported private enterprises' — A record of Comrade Xi Jinping's commitment to promoting the development of the private economy,' which garnered public attention. Additionally, Beijing is in the process of drafting a new 'Private Economy Promotion Law.'
In response to the news of Sima Nan's punishment, various state media outlets expressed their support. The Beijing Daily, for instance, published a commentary stating that in recent years, 'a number of entertainment stars and internet influencers have been investigated and penalized, serving as a warning to society: tax evasion cannot escape the law's reach. The state supports preferential policies for small and micro enterprises and emerging business models, which must not be exploited. Being overly clever and taking risks will inevitably lead to consequences.'
Netizens Commented: The Chamber Pot Must be Discarded After Use
On the afternoon of March 21, Sima Nan addressed his tax evasion penalty, stating, 'I bow my head and admit my guilt, sincerely reflect, and do not seek forgiveness'; he also claimed to have paid the fine and late fees in full. He explained that this issue was primarily due to his misplaced trust in the MCN company to handle his tax payments, and he acknowledged that he learned a lesson from this experience. However, his comments were criticized as an attempt to 'shift blame.'
Previously, Sima Nan had frequently criticized internet celebrities like Wei Ya for tax evasion and had released 75 videos related to taxation. Now, having faced penalties for tax evasion himself, netizens have labeled the situation as 'ironic' and 'retribution.'
In the comment section, netizens overwhelmingly celebrated the downfall of Sima Nan. One user commented, 'Every day he shakes his head and talks about patriotism, but it turns out it’s all just a business'; 'I’ve seen through him for a long time.' Others remarked, 'Karma, he should return the money he transferred to the United States!' Some even suggested, 'This time he should be banned from all platforms.'
On the overseas social media platform X, however, some users expressed that they 'couldn't feel happy at all,' noting, 'If he has to pay 9 million in taxes, how much has he earned over the years by profiting from patriotism? It’s tragic that such a morally corrupt individual, with clear evidence that 'criticizing America is his job, while going to America is his life,' still has so many followers willing to stand by him. How sad is that?'
Other users pointed out, 'Actually, the officials have always known he was evading taxes; they just didn’t investigate him before because he was still useful. Now that he’s no longer useful, it’s only natural for them to look into him.' Some even remarked, 'Once the chamber pot is used, it must be discarded!'
(Source: Radio Free Asia)
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