Liu Xiaoqing makes a public appearance at the closing red carpet ceremony of the 15th Beijing International Film Festival held in Beijing, on April 26, 2025. Photo: VCG

China’s top tax authority in Shanghai said on Friday it found no evidence of tax violations involving prominent actress Liu Xiaoqing and her affiliated companies, following a public complaint filed months earlier this year, with Liu reaffirming her commitment to lawful tax compliance on the same day.

In a statement released on Friday, the Shanghai Municipal Tax Service under the State Taxation Administration said it had completed a legal review into allegations made by a whistleblower surnamed Wang against Liu and related enterprises. “No tax-related issues as described in the report were found,” the statement said.

The tax authority said it will continue to strengthen tax supervision in accordance with the law, enhance service quality, and promote compliant operations and honest tax practices. It also expressed appreciation for the public’s attention and support for its work, per the statement.

Also on Friday, Liu posted a statement on social media confirming the conclusion of the investigation. “Previously, there were reports alleging tax violations involving myself and related companies. Following a review by the tax authorities, no evidence of the alleged issues was found,” Liu said.

“Paying taxes in accordance with the law is the legal obligation of every citizen. I will continue to comply with national laws and regulations, and fulfill my tax responsibilities with integrity,” she added in the statement. 

The probe followed an earlier announcement made on May 15 by the Fourth Inspection Bureau of the Shanghai tax authority, which confirmed it had received a complaint from Wang and was processing the case in accordance with relevant laws and regulations.

Wang, a Shenzhen resident, submitted a signed complaint accusing Liu of tax evasion. He alleged that Liu’s wholly-owned firm, Shanghai Yixi Cultural Media Center, used value-added tax (VAT) invoices to avoid paying higher personal income tax rates, China Media Group reported (CMG) in May.

The complaint claimed Liu funneled 3.3 million yuan ($463,000) in endorsement income into the company under the label of “image ambassador fees,” and issued VAT invoices taxed at 6 percent, thereby allegedly dodging personal income tax rates exceeding 27 percent. 

The company was also accused of lacking a physical office, staff, and social insurance records—allegedly signs of issuing false invoices and committing tax evasion, per the CMG report.

At the time, Liu denied the allegations publicly on social media, stating she did not know the whistleblower and had no prior interactions with him. She called the claims “malicious” and inconsistent with the facts, and said she welcomed an official investigation into her income and tax status. “Paying taxes in accordance with the law is the obligation of every citizen,” she said.
 
Liu Xiaoqing, born on October 30, 1950, in Fuling district, Southwest China’s Chongqing Municipality, is one of China’s most renowned actresses. 

Liu previously made headlines in 2002 when she was detained for 422 days in a high-profile tax case. Authorities at the time accused her company of evading 14.58 million yuan in taxes. Her brother-in-law Jing Jun, who served as the company’s legal representative, was sentenced, while Liu herself was not prosecuted after repaying the owed taxes through asset liquidation, according to previous media reports.

Global Times