23 years ago, Chinese actress Liu Xiaoqing was sentenced to 422 days in prison due to a tax scandal. On August 8, 2025, she released a statement on her personal Weibo account addressing being reported for tax evasion again this year. She stated, “After verification by the tax authorities, no tax issues as reported have been found. I will continue to abide by national laws and regulations, and fulfill my tax obligations with integrity.” This statement has sparked attention and discussions.
In May this year, a resident of Shenzhen, Wang Yao (online alias “Sixth Bay King Brother”), filed a report with the Shanghai Municipal Taxation Bureau’s Fourth Inspection Bureau, accusing Liu Xiaoqing of suspected tax evasion through the Shanghai Yixi Cultural Media Center, which she controls.
Evidence showed that in December 2020, Liu Xiaoqing’s jewelry company in Ningbo borrowed 3.3 million yuan from Wang Yao, and in January the following year, this amount was transferred to the Shanghai Yixi Cultural Media Center’s account under the guise of “image endorsement fees.” Subsequently, the company issued 24 value-added tax invoices from February to April 2021, followed by 42 invoices at a 6% tax rate, allegedly using fictitious business to legitimize personal income and evade over 27% in personal income tax.
Wang Yao also pointed out that the Shanghai Yixi Cultural Media Center has no actual operational site, no employees, has not paid social security, and Liu Xiaoqing once transferred 34% of the company’s shares to a related enterprise registered with a fake ID card for 0 yuan, raising suspicions of fund transfers and shareholding. The report also mentioned multiple instances of Liu Xiaoqing being fined for tax underpayment in Shanghai, categorized as “repeated violations.”
On the evening of May 15, the Fourth Inspection Bureau of the Shanghai Taxation Bureau of the State Administration of Taxation issued a situation report: “Recently, we have received a report from Wang accusing Liu and related companies of tax issues, and we are currently handling it in accordance with the law.”
On the same day, Liu Xiaoqing released a public statement: “I do not know the reporter Wang at all and have never had any contact. Wang’s report is completely inaccurate and malicious. The tax authorities are conducting an investigation with a responsible attitude, and I and the Shanghai Yixi Cultural Media Center will fully cooperate with the investigation.”
Liu Xiaoqing spent 422 days in prison from June 20, 2002, to August 16, 2003, on tax evasion charges. Ultimately, her brother-in-law Jing Jun was sentenced as the legal person of the company, while Liu Xiaoqing herself was not prosecuted. After her release, Liu Xiaoqing sold assets to pay off taxes and returned to the public eye.
In 2015, in her autobiography “Life Is Not Afraid to Start Over,” Liu Xiaoqing recounted her life from its peak to its low point, including her incarceration, stating she was wronged and had never acted unethically or engaged in any hidden rules, attributing her imprisonment to youthful arrogance and offending someone.
According to overseas revelations from the Chinese Communist Party’s princelings, Liu Xiaoqing attracted the attention of Jiang Zemin by visiting Deng Xiaoping’s home. However, she did not appeal to Jiang Zemin and even belittled him, which caused trouble and led to her imprisonment by Jiang Zemin.
Recently, risk information from “Tianyancha” shows that the previous reporter Wang has sued Liu Xiaoqing, citing objections to the executioner’s execution. The case is scheduled to be heard on September 12 in the Futian District Court of Shenzhen. On August 9, the topic “Liu Xiaoqing has been sued by the reporter” trended on Weibo.
Some netizens expressed confusion, saying, “It has been proven that there is no problem, so why use past events to attract attention?” “It’s clearly about economic disputes, seeking revenge!” “Without a doubt, she must have touched someone’s cake!” “Definitely. We do not understand the world of the wealthy.”
Public records show that Liu Xiaoqing was born on October 30, 1950, in Fuling County, Sichuan Province (now Fuling District, Chongqing), China. She is a renowned Chinese actress known for her works such as “Little Flower,” “Look at This Family,” “Furong Town,” “The Plain,” and “Empress Wu Zetian.”