The legendary actress Liu Xiaoqing, who has weathered the ups and downs in the entertainment industry for decades, once again stands at the center of public opinion due to tax issues at the age of 74.
On May 15, 2025, Mr. Wang, a citizen of Shenzhen, reported Liu Xiaoqing under his real name, causing a ripple effect. He pointed out that Liu Xiaoqing allegedly evaded taxes through her 'Shanghai Yixi Cultural Media Center', with an amount as high as 3.3 million yuan. This is not merely a financial oversight but a meticulously planned 'digital game'. The whistleblower detailed that Liu Xiaoqing disguised funds as 'endorsement fees', cleverly transferring them to the company, and then brazenly replaced the high personal income tax of over 27% with a VAT invoice at a 6% rate. Even more astonishing is that this company, accused of being a 'shell company', the Shanghai Yixi Cultural Media Center, appears to be a carefully crafted illusion, lacking an actual office, employees, or social security records, seemingly a phantom entity fabricated in the business world.
The Fourth Inspection Bureau of the Shanghai Municipal Taxation Bureau reacted quickly and has officially accepted the case, launching an intensive investigation. This action undoubtedly pressed the 'confirmation key' for this tax storm, keeping the public's focus tightly on this veteran star.
Looking back, Liu Xiaoqing's 'tax history' resembles a dramatic legendary story. As early as 2002, she was imprisoned for her company's tax evasion, spending 422 days in detention. Although she was not ultimately prosecuted, this experience is like an indelible stain that has always clung to her acting career, and the controversy has never ceased.
Today, history seems to be repeating itself. If this incident is verified, Liu Xiaoqing will not only face back taxes and fines; the shadow of criminal responsibility is also quietly looming. This tax evasion scandal involving 3.3 million yuan raises the question of whether it is an individual’s rise and fall in the profit-driven wave of the entertainment industry or just the tip of the iceberg of the tax chaos in the entire industry. Let us wait and see.
In the glamorous yet turbulent world of the entertainment industry, every move of the stars attracts attention. From hefty film salaries to exorbitant endorsements, the flood of wealth is overwhelming, but tax issues lurk like hidden reefs, and a slight misstep can plunge stars into deep trouble.
Liu Xiaoqing's recent crisis has forced people to reflect on the tax ecology of the entertainment industry. In this war without gunpowder, tax law is like the sword of Damocles, constantly warning every person in the entertainment industry. Perhaps this storm will become a wake-up call for tax compliance in the entertainment industry, prompting stars to re-examine their financial behaviors and allowing the public to gain a deeper understanding of the financial games in the entertainment world.
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