A famous mainland Chinese actress, Liu Xiaoqing, aged 74, has had her jewelry company involved in a civil lending dispute and was ordered by the court to pay over 449,000 yuan (RMB). Prior to this, Liu Xiaoqing’s Shanghai Yixi Cultural Media Center was reported to be suspected of tax evasion.
According to Tian Eye Check, recently, Liu Xiaoqing Jewelry (Ningbo) Co., Ltd. and a certain Mr. Xu have had an enforcement action taken against them with a target amount of over 449,000 yuan, involving a civil lending dispute case related to Wang and Liu Xiaoqing Jewelry (Ningbo) Co., Ltd. and Mr. Xu. The executing court is the Futian District Court of Shenzhen City.
Information on the case process shows that in February of this year, the court delivered the civil judgment to Liu Xiaoqing Jewelry (Ningbo) Co., Ltd. and Mr. Xu, ordering the defendants to repay the principal loan of 300,000 yuan and interest to the plaintiff, Wang. Failure to pay will result in forced execution.
As previously reported, in April of this year, Wang reported in his real name that Liu Xiaoqing’s Shanghai Yixi Cultural Media Center was suspected of tax evasion.
The report provided by Wang indicates that the Shanghai Yixi Cultural Media Center was involved in transactions totaling 3.3 million yuan, in which funds were transferred to the company under the name of “image endorsement fees,” and invoices for value-added tax at a rate of 6% were issued, allegedly evading personal income tax of over 27%. In addition, the company was accused of having no actual operational premises, employees, or social security payment records, and was suspected of issuing false invoices to evade taxes.
Wang stated that the Fourth Audit Bureau of the Shanghai Municipal Taxation Bureau of the State Administration of Taxation has accepted this case and will investigate Liu Xiaoqing and related companies.
On the evening of May 15, the Fourth Audit Bureau of the Shanghai Municipal Taxation Bureau issued a situation report stating, “Recently, our bureau has received Wang’s report on tax issues involving Liu et al. and related companies, which is currently being processed.”
That evening, Liu Xiaoqing posted on social media, stating that the report of “suspected tax evasion” was not consistent with the facts, she does not know Wang, the informant, and has never had any interactions with him. She and the Shanghai Yixi Cultural Media Center will cooperate with the tax authorities in their investigation.
According to Tian Eye Check, Liu Xiaoqing was associated with 10 companies, of which 7 are in the process of being canceled, leaving only 3 still in existence, all operating in the cultural, sports, and entertainment industries.
Liu Xiaoqing was an investor in the accused Shanghai Yixi Cultural Media Center, which was established in June 2017 with a capital of 30,000 yuan.
Additionally, Liu Xiaoqing serves as the legal representative in 7 companies, with only two currently active.
According to Tian Eye Check’s information, in mid-June, the Futian District Court of Shenzhen City delivered a notice to Ningbo Xiaoqing Enterprise Management Consulting Partnership (Limited Partnership), Mr. Xu, and Liu Xiaoqing Jewelry (Ningbo) Co., Ltd. regarding the lawsuit filed by Wang and Liu Xiaoqing, among others, regarding an objection to the execution, along with the copies of the lawsuit, evidence, response notice, and court summons. The notice stipulates that it will be deemed delivered from the date of the announcement and is scheduled for a trial on September 12.