A former agent of Zheng Shuang, a popular Chinese actress, was fined 32.27 million yuan ($5.02 million) for helping Zheng evade her tax obligations and covering up her film remuneration, according to the local tax authority of Shanghai on Monday.

Zhang Heng was the agent of Zheng Shuang for a TV series called "A Chinese Ghost Story". Zhang was responsible for the signing of relevant performance contracts and negotiating the remuneration. He specifically planned and drafted the agreement of increasing capital through setting up a special company, the Tax Bureau of Shanghai said.

After inspecting Zheng's case, the Shanghai tax authority announced a total tax evasion of 43.02 million yuan for this TV series.

The Inspection Bureau of Shanghai Tax Bureau has notified Zhang about the punishment and told him to pay the fine within the specified time in accordance with the law, said the announcement.

The tax bureau said it will further improve tax administration management on agents and agent companies in the culture and entertainment industry. Once they are found helping actors and actresses design, plan and implement tax evasion cases, they will be investigated and punished in accordance with the law.