Ai Weiwei loses tax case against Chinese government

A company run by Ai Weiwei, the Chinese artist, must pay a £1.5 million penalty for tax evasion after a Chinese court ruled that the fine had been correctly assessed and applied.

Mr Ai claimed that the tax penalty on the company that he works for, Beijing FAKE Cultural Development Ltd, together with his sudden 81-day imprisonment last year, was a punishment for his criticism of the government and was imposed without following the correct procedure.

Mr Ai, 55, was barred from attending the verdict, despite attempting at the last minute to register himself as a member of the legal team contesting the case.

There was a heavy security presence outside the courthouse, in Beijing’s Chaoyang district, with several police vans on hand to repel the artist and his supporters.

Mr Ai claimed that the tax penalty on the company that he works for, Beijing FAKE Cultural Development Ltd, together with his sudden 81-day imprisonment last year, was a punishment for his criticism of the government and was imposed without following the correct procedure.

However, he acknowledged, even before the verdict, that he had “absolutely no hope” of winning.

One of his lawyers, Pu Zhiqiang, said simply getting the case heard was “already a victory”. “As Wen [Jiabao, the Chinese premier] said, this is how you shine sunlight on power and make it transparent,” he said.

Chinese courts are under the authority of the Communist party and rarely accept cases filed by dissidents.
Mr Pu added that Mr Ai would lodge a final appeal against the verdict in seven days, and would also sue the Chaoyang court for breaching the normal procedures during the trial.
Mr Pu said the court had delivered the verdict in one hour, and had denied Mr Ai’s legal team the right to submit any evidence, to call any witnesses, and to have an assessment of how the fine and interest on the fine had been calculated.
He said an application to replace one of the lawyers on the case with Mr Ai, so that the artist could attend the hearing, had been rejected.
“As someone with a close interest in the FAKE company and who has personally guaranteed eight million yuan (£800,000) of debt to pay the fine, I believe Mr Ai had the right to attend. I am not surprised about the verdict, but I am surprised the court went to such an extent to win the case when it was unnecessary to do so,” he said.
The court ruled that the Beijing tax bureau had provided “accurate” evidence, “clear reasoning” and that its procedure was legal.
Outside his home in north eastern Beijing, Mr Ai told reporters that the verdict was more evidence that China continues to lack a “basic legal process” and would “still not give taxpayers and citizens an ability to justify themselves.” He said: “The entire judiciary is shrouded in darkness”.