Fan would not be investigated for criminal responsibility for tax evasion as long as the taxes, fines and late fees amounting to almost 900 million yuan ($130 million) are paid on time, the report said.
Out of all Fan's films and business ventures, she was found to have paid 248 million yuan less tax, 134 million yuan of which constituted tax evasion.
In a letter posted on her official account on the Twitter-like platform Weibo, Fan said she fully accepted the authorities' decision, would overcome "all difficulties" to pay the penalties, and step up supervision of her companies.
These agreements are known as "yin-yang" dual contracts - one setting out the real agreed payment terms and a second with a lower figure for the tax authorities.
Fan was ordered to pay "hundred of millions" of yuan, Xinhua reported, without further details. Over the past few months, rumors circulated that Fan had been arrested, that she had been banned from leaving China, that she had been banned from acting for three years, that her production company's offices had been emptied, and even that she had sought asylum in the United States.
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A source close to Fan said she had been kept at a "holiday resort" used to investigate officials in a suburb in the coastal province of Jiangsu.
Hours after the news was made public, Fan broke her four-month-long silence on Weibo, posting an apology for her more than 63 million followers to see in which she declared that she completely accepts the results of the investigation against her and will do her best to pay back the sum, adding that she is deeply ashamed of what she had done. I am deeply ashamed and feel guilty for what I have done, and I offer my honest apologies to everyone. Here, I sincerely apologise to everyone.
The report gave no indication as to Fan's whereabouts but indicated her agent was being held by police for allegedly obstructing the investigation.
Fan's troubles began in May soon after she appeared on the red carpet at Cannes film festival when a former presenter for state-run China Central Television (CCTV) posted a purported movie shoot contract. I have failed the support of my country, the trust of society, and the love of my devoted fans!
Last year, she topped Forbes magazine's list of top-earning Chinese celebrities with an income of 300 million yuan.