Core Viewpoint - The regulatory environment for the beauty live-streaming industry is tightening, with significant tax evasion cases leading to substantial penalties and a potential reshaping of the industry landscape [1][2][10]. Tax Evasion Cases - Since 2021, over 360 cases of tax evasion involving live-streamers have been investigated, resulting in the recovery of more than 3 billion yuan in taxes [3][10]. - In 2024 alone, 169 live-streamers were reported to have paid nearly 900 million yuan in back taxes [3]. - Notable cases include the high-profile penalties against influencers like Viya, who was fined 1.341 billion yuan for evading over 700 million yuan in taxes [15][19]. Regulatory Actions - The State Taxation Administration has intensified its scrutiny of the live-streaming sector, collaborating with multiple government departments to enforce tax compliance [3][6]. - The crackdown on tax evasion has led to the exposure of a broader network of tax fraud involving MCN (Multi-Channel Network) agencies, which facilitated tax evasion through fake invoices and misclassification of income [8][10]. Impact on the Beauty Industry - The tightening of regulations is expected to lead to a reshuffling of the beauty live-streaming market, as many influencers face severe consequences for tax violations, including account bans and reputational damage [23][24]. - The beauty industry is experiencing a decline in traffic, prompting brands to shift towards self-broadcasting models to regain control over their marketing strategies [24][25]. - Influencers are urged to enhance their content innovation capabilities to adapt to the changing market dynamics and regulatory landscape [25].