Gray zone. Most content creators aren’t registering themselves as businesses, let alone some poor college students writing on a niche website earning some donations and subscription fees.
You can enter into a contractual relationship with the internet platform and you may be liable to pay personal income tax, but personal income tax is only a very small fraction of the Chinese government tax base that they are negligible for internet content creators except for the largest channels with millions of subscribers as well as high profile celebrities involved in contracts comprising tens of millions of yuan.
Most of the tax revenues in China come from value-added tax, followed by corporate income tax. These are where the tax evaders are at. I highly doubt they’re wasting resources going after some poor college students or even internet content creators for evading personal income tax.
To comment on the validity of the cases here: there is no definite proof as far as we know, but at least a dozen of internet accounts on major internet platforms (Weibo, Xiaohongshu, Douyin etc.) claiming to be the victims have posted photographic evidence of their own identification documents, police arrest warrants, detention notices, attorney bills etc. A number of practicing lawyers have also claimed that they have been approached by the victims. This has been happening since June last year but the number of cases seem to have increased over the past few months.
It is highly unlikely that people post fake evidence like this for drama, at least not in China, and especially since this has turned into a hot topic on the Chinese internet gaining quite a lot of attention. You can get into serious trouble for that. Especially for practicing attorneys linked to their actual businesses. I find it unlikely to be fabricated. Maybe the scale and extent have been exaggerated, but I don’t think people would want to risk losing their careers just for fabricating drama.