Liu Xiaoqing was imprisoned because of tax evasion

On July 24, 2002, Liu Xiaoqing was arrested in accordance with the law with the approval of the Second Branch of the Beijing Municipal People's Procuratorate on suspicion of tax evasion. After investigation by the tax authorities, it was determined that Liu Xiaoqing and his companies, Beijing Xiaoqing Culture and Art Co., Ltd. and Beijing Liu Xiaoqing Industrial Development Co., Ltd., had, since 1996, made unlisted or underlisted income, overlisted expenditures, false declarations, and notification declarations. By refusing to declare and other means, he evaded 14.583 million yuan in taxes. Including late payment fees of 5.734 million yuan, the tax owed is 20 million yuan. Xiaoqing's company account has been sealed, and all 1.96 million yuan in bank deposits have been paid. Liu Xiaoqing has been in prison for more than a year. He was released on bail pending trial on August 16, 2003. Liu Xiaoqing paid back taxes to the tax department after being released on personal bail pending trial.