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Director Wang Yichun’s real-name report on Huanxi Media’s false tax deductions, who is to blame?

China News Entertainment Beijing reported on June 15, “I, Wang Yichun, reported false tax deductions to Huanxi Media with my real name.” In the middle of the night on June 13, director Wang Yichun posted a long article against Huanxi Media on Weibo, which caused heated discussions.

In the subsequent tension between the two parties, Huanxi Media and Wang Yichun held their own opinions. Wang Yichun said that Huanxi Media had breached the contract first, while Huanxi Media said that its article was untrue and would reserve the right to pursue its legal liability for infringement.Director Wang Yichun's real-name report on Huanxi Media's false tax deductions, who is to blame? -Director-Wang-Yichuns-real-name-report-on-Huanxi-Medias-false-tax

Source: Director Wang Yichun’s Weibo.

Wang Yichun: Huanxi Media’s false tax deduction

In the long article, Wang Yichun reviewed the process of cooperating with Huanxi Media to prepare the film since October 2019. At that time, the two parties agreed that Huanxi Media would invest and Wang Yichun would act as a legal person to set up a production company to complete the production of Wang Yichun’s new film “Kidnapping Mao Huhu”. Subsequently, Wang Yichun established the production company Henan Jingshen Films as agreed and transferred the copyright of the script.

Wang Yichun said that in May 2020, Huanxi Media called Jingshen Pictures’ account for a production fee of 5.51 million yuan. In June, Huanxi Media decided to suspend the project, and then sued Jingshen Pictures to court. In the end, Jingshen Pictures was sentenced to return the investment fund of 5.0518 million yuan, as well as damages and liquidated damages totaling about 5.83 million yuan.Director Wang Yichun's real-name report on Huanxi Media's false tax deductions, who is to blame? -1655282711_66_Director-Wang-Yichuns-real-name-report-on-Huanxi-Medias-false-tax

Source: Beijing Court Trial Information Network.

According to Wang Yichun’s description, Jingshen Films was the only one who counted finance, legal affairs and administration. At that time, nearly one million yuan was spent on film preparation. “I didn’t get a cent of the screenwriter’s fee, director’s fee, and production fee, so I had to find out. If they don’t pay 1.29 million yuan, they will even own the copyright of their own script.” After she paid Huanxi Media 1.06 million yuan, Huanxi Media transferred the script copyright back to her, saying that it would continue to pursue more than 220,000 yuan.

But after that, the two sides started a tug-of-war over the tax refund issue. Wang Yichun said that since Jingshen had received 5.51 million and issued corresponding invoices, unless the other party returned or redeemed the previous invoices, he would have to pay an additional enterprise income tax of nearly one million yuan, but the counterparty claimed that “this case is the impact of the execution of the case. The amount of the red tax rebate is 5.0518 million yuan.”

When the tax issue had not yet received feedback, on the 13th, Wang Yichun received the information that he was being enforced, “Now they have to auction 220,000 personal properties forcibly.”Director Wang Yichun's real-name report on Huanxi Media's false tax deductions, who is to blame? -1655282711_941_Director-Wang-Yichuns-real-name-report-on-Huanxi-Medias-false-tax

Source: Director Wang Yichun’s Weibo.

In the variety show “Director Please Advise” at the end of last year, many audiences met Wang Yichun, a female director born in the 70s. She once wrote and directed and paid 3 million to shoot the director’s debut “What’s in the Darkness”, which was won at the First Youth Film Festival. Best Director Award. According to online data, “Kidnapping Mao Huhu” will start in the spring of 2020 and will be completed in 2021.

Huanxi Media: Subject to the judgment of the court

According to public information, Huanxi Media was co-founded by Dong Ping, Ning Hao, Xu Zheng, and Xiang Shaokun in 2015. It has cooperated with many well-known directors, including Ning Hao, Xu Zheng, Chen Kexin, Wang Jiawei, Zhang Yibai, Gu Changwei, Zhang Yimou, Jia Zhangke, etc.

According to the Tianyancha App, Huanxi Film and Television Investment Co., Ltd. directly or indirectly wholly owns three companies: Taizhou Huanxi Culture Investment Co., Ltd., Huanhuaxixi (Tianjin) Culture Investment Co., Ltd., and Beijing Huanshixi Culture Media Co., Ltd. Among them, Huanhuaxixi is the company that signed film contracts with director Wang Yichun and Henan Jingshen Films.Director Wang Yichun's real-name report on Huanxi Media's false tax deductions, who is to blame? -1655282711_328_Director-Wang-Yichuns-real-name-report-on-Huanxi-Medias-false-tax

Source: Tianyancha App.

In response to Wang Yichun’s report, some media asked Huanxi Media to verify. The other party responded that the company invested in Wang Yichun to make a movie, but she did not meet the agreed investment contract and quietly transferred the money to her private account, private company and personal studio.

“We just told her that if you are not standard, we will not vote. You return the rest of the money to us, and she does not agree. We will go to the lawsuit, and the court will decide both the first and second judgments. This is her violation. , so the project was stopped, and she had to return the money to us. She was very unwilling, so she smeared us everywhere and kept threatening us.” Huanxi Media added that tax issues are welcome to investigate.

According to the Beijing Court Trial Information Network, Beijing Chaoyang District People’s Court pointed out that the focus of the lawsuit is whether Huanhuaxixi Company has the right to terminate the contract.

The court held that under the circumstance that the two parties clearly agreed that the payment of the jointly managed account should be applied for in advance, the unapproved behavior of Jingshen Company for multiple payments constituted a breach of contract.Director Wang Yichun's real-name report on Huanxi Media's false tax deductions, who is to blame? -1655282711_45_Director-Wang-Yichuns-real-name-report-on-Huanxi-Medias-false-tax

Source: Beijing Court Trial Information Network.

After that, Jingshen Company refused to accept it and filed an appeal. In August 2021, the Beijing Third Intermediate People’s Court rejected Jingshen Company’s appeal request and upheld the original judgment.

Both sides responded again

In the early morning of the 14th, Wang Yichun responded again, saying that the private studio was opened at the behest of Huanxi. It was used to withdraw cash for the crew, pay some small amounts without invoices, and posted a list of reimbursements during the preparatory stage of the project. I thought they would take a bite out of this.” He said that Huanxi Media “not only knew about it, but also inspired and benefited from it.”Director Wang Yichun's real-name report on Huanxi Media's false tax deductions, who is to blame? -1655282711_290_Director-Wang-Yichuns-real-name-report-on-Huanxi-Medias-false-tax

Source: Director Wang Yichun’s Weibo.

On the morning of the 14th, Huanxi Media issued another official statement, saying that the cooperation dispute between the two parties has been tried and determined by the court, “After the cooperation between Huanxi Media and director Wang Yichun was terminated, the contract between the two parties has been terminated, and the copyright of the relevant script has been returned. Huanxi Media has always complied with tax laws. Laws and regulations, and legally handle the tax matters involved in the above disputes.”Director Wang Yichun's real-name report on Huanxi Media's false tax deductions, who is to blame? -1655282711_125_Director-Wang-Yichuns-real-name-report-on-Huanxi-Medias-false-tax

Source: “Huanxi Media” WeChat public account.

The statement also mentioned, “Director Wang Yichun’s Weibo has many inaccurate contents, and Huanxi Media will reserve the right to pursue legal responsibility for its infringement.”

(This article is from CIC, for more original information, please download the “CIC” APP)

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