China orders Ai Weiwei to pay $2.4 million for "tax evasion"

BEIJING Tue Nov 1, 2011 1:52am EDT

Dissident Chinese artist Ai Weiwei closes the door to his studio after speaking to the media in Beijing June 23, 2011.   REUTERS/David Gray

Dissident Chinese artist Ai Weiwei closes the door to his studio after speaking to the media in Beijing June 23, 2011.

Credit: Reuters/David Gray

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BEIJING (Reuters) - China has ordered dissident artist Ai Weiwei to pay 15 million yuan ($2.4 million) in back taxes and fines allegedly due from the company he works for, Ai said on Tuesday, a case supporters said was part of Beijing's efforts to muzzle government critics.

The 54-year-old artist, famous for his work on the "Bird's Nest" Olympic Stadium in Beijing, was detained without charge for 81 days this year in a move that drew criticism from Western governments. He was released in late June.

Ai told Reuters he received the notice from the tax authorities that described his title as the "actual controller" for Beijing Fake Cultural Development Ltd., which has helped produce Ai's internationally renowned art and designs.

The company is owned by his wife, Lu Qing, who is the firm's legal representative.

"They made up this new title," Ai said. "I'm a designer for the company. I'm not a director, or even a manager. Of course, I know this matter is targeted at me.

"They said: 'We're fining the company, not you.' But I said: 'Why was my name singled out by the government, at the foreign ministry briefings?' But they still said to me: 'This has nothing to do with you.'"

Rights activists said the charges were a pretext for silencing the artist who has been a fierce government critic.

"It appears that the government is set to destroy him, if not economically then at least by setting up the stage to later arrest him for failing to pay back taxes," said Songlian Wang, research coordinator for Chinese Human Rights Defenders.

"NOT REASONABLE"

Ai said he had not received any evidence of tax evasion, adding that he did not believe the company had evaded payment.

"Up till this day, Fake Company has not seen any account statements," Ai said. "I told them: 'This is not reasonable.'

"But they told me: 'If the country says you have evaded taxes, then you must have evaded them. Why don't you lose hope? This country will never change its ways.'"

The Beijing Local Taxation Bureau told Ai he had to pay about 5.3 million yuan in back taxes, 6.8 million yuan in fines and about 3 million yuan in late payments. Calls to the bureau went unanswered.

Ai said he had been given 15 days to pay up.

"If it's a tax problem, I'll pay. But if it's not, I won't pay," Ai said. "This whole matter is ridiculous."

Beijing authorities held a closed tax evasion hearing in July. The company's lawyer, Pu Zhiqiang, told Reuters it was illegal for them to do so.

Ai was barred from attending, but his wife, Lu, was present.

Ai tweeted on Tuesday that the authorities had threatened the company's accountant and manager and prevented them from meeting him.

Ai was detained at Beijing airport on April 3, prompting an outcry about China's tightening grip on dissent which has seen the detention of dozens of rights activists and dissidents.

The bearded, burly artist was the most internationally acclaimed of those detained, and his family has repeatedly said he was targeted for his outspoken criticism of censorship and Communist Party controls.

When Ai was released on bail in June, the government said he remained under investigation on suspicion of economic crimes.

Ai told Reuters previously that he had not received a formal notice to explain "suspected economic crimes."

Under the conditions of his release, Ai was told by the authorities he was not allowed to speak to foreign media, post messages on Twitter or leave Beijing for a year.

($1 = 6.355 Chinese Yuan)

(Additional reporting by Jane Lee, Editing by Ken Wills; and Nick Macfie)

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Comments (1)
knows wrote:
The purpose of the huge penalty is simple: pay it or shout up for the rest of his life.

100% of the people in the city’s tax department don’t know where that number came from because it was an order from “above”, and nobody is allowed to ask any question about it.

Nov 01, 2011 11:03am EDT  --  Report as abuse
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