Chinese filmmaker Zhang Yimou has challenged a government evaluation of his annual earnings as officials seek to fine him for breaking the country's strict 'one-child' policy.

The House of Flying Daggers director confessed to fathering three children with his current wife, Chen Ting, last month (Dec13) and recently insisted he was prepared to accept the consequences of his actions and pay a social compensation fee, based on the household's annual income, to resolve the issue.

Zhang is said to have earned $590,000 (£393,330) a year around the time each of his children were born, which could amount to a fine of $1.2 million (£800,000).

However, the 62 year old and his wife are contesting the amount he is reported to have earned and they filed documents last week (ends03Jan14) to argue their case, according to authorities.

Figures for the official income estimate and fine have yet to be made public.