Overseasidol.com — On May 15, 74-year-old Chinese actress Liu Xiaoqing became the subject of a serious tax evasion allegation.
A man identified as Mr. Wang from Shenzhen publicly reported Liu, accusing her of using her wholly-owned company, Shanghai Yixi Culture Media Center to evade personal income tax.
According to Mr. Wang’s complaint, Liu Xiaoqing allegedly engaged in financial misconduct involving a total of 3.3 million yuan.
The funds, he claims, were paid to her company under the pretense of “image endorsement fees”.
This money was then invoiced using value-added tax (VAT) receipts, which are taxed at a lower rate than personal income, thereby allegedly allowing Liu to avoid paying higher personal income tax rates.
Supporting his claims, Mr. Wang submitted formal documentation showing evidence of suspected illegal tax activities.
As per his statement, the Shanghai Municipal Taxation Bureau’s Fourth Inspection Division has officially registered the case and is now launching an investigation into Liu Xiaoqing and the relevant business entities involved.
This news raising renewed public interest in how celebrity taxation is monitored and enforced in China.
As authorities move forward with the probe, fans and industry observers alike are awaiting further developments.
