China plans to increase penalties for concealing box office, with a maximum fine of five times illegal income

False reporting and concealment of box office revenue may be subject to greater penalties. On October 31, the draft Film Industry Promotion Law submitted to the third review of the 24th session of the Standing Committee of the 12th National People's Congress stipulated that those who fail to truthfully count film sales revenue or provide true and accurate statistical data will have illegal income of 500,000 yuan. If the above is a fine of not less than one time but not more than five times the illegal income will be imposed.

False reporting and concealment of box office revenue may be subject to greater penalties. On October 31, the draft Film Industry Promotion Law submitted to the third review of the 24th session of the Standing Committee of the 12th National People's Congress stipulated that those who fail to truthfully count film sales revenue or provide true and accurate statistical data will have illegal income of 500,000 yuan. If the above is a fine of not less than one time but not more than five times the illegal income will be imposed.

In the second draft of the draft, this provision is: if a film distribution enterprise or movie theater fails to accurately count and provide sales revenue, the film competent department of the county-level people's government shall impose a fine of not less than 50,000 yuan but not more than 500,000 yuan; if the circumstances are serious, it shall be ordered to suspend business for rectification; if the circumstances are particularly serious, the original issuing authority shall revoke the license.

The Law Committee of the National People's Congress stated that some members and departments of the Standing Committee have proposed that the current penalties stipulated in the second review draft are not enough, and fines should be linked to the amount of fraud and penalties should be doubled.

After research, the Law Committee of the National People's Congress recommended amending the provisions of the second review draft to read: If the film sales revenue is not truthfully counted or the real and accurate statistical data is not provided, the film authorities of the government at or above the county level shall order it to make corrections and impose a fine of not less than 50,000 yuan but not more than 500,000 yuan. A fine of not less than one time but not more than five times the illegal income will be imposed. If the circumstances are serious, the company shall be ordered to suspend business for rectification; if the circumstances are particularly serious, the original issuing authority shall revoke the license.

The phenomenon of box office theft has a long history, and there are frequent stories of box office theft in theaters. In 2015, the total box office of China films exceeded 44 billion yuan, setting a new record in history, second only to the North American market in the world. However, the actual box office last year exceeded this figure because part of the box office revenue was "stolen" and could not be counted. Industry insiders estimate that in recent years, more than 10% of the national box office has been "stolen" every year. In 2015, the box office that was "stolen" reached at least 4.5 billion yuan.

It is reported that box office theft mostly occurs in cinemas in third-and fourth-tier cities, especially new cinemas in county-level cities.

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Editor: yvette