Chinese Actress Liu Xiaoqing Who Plays Grandma in The Prisoner of Beauty Investigated for Tax Evasion

At age 74, Chinese actress Liu Xiaoqing is back in the spotlight—but this time, it’s not just for her role in the currently airing costume drama The Prisoner of Beauty. Reports say a Shenzhen resident surnamed Wang reported Liu for suspected tax evasion, prompting Shanghai tax authorities to launch an investigation.

A History of Tax Troubles

According to the complaint, back in 2020-2021, Liu Xiaoqing’s company, Shanghai Yixi Culture Media Center, converted a 3.3 million yuan loan into personal income under the label of “endorsement fees,” and issued invoices with a 6% tax rate to avoid paying over 27% in personal income tax. This isn’t Liu Xiaoqing’s first brush with tax authorities. In 2002, she spent 422 days in detention for a major tax evasion case involving her business operations. Meanwhile, new reports say Liu Xiaoqing had actually left the company in question back in 2021.

Another Actress from The Prisoner of Beauty?

The report quickly went viral, topping Weibo’s trending searches and reviving scrutiny over Liu Xiaoqing’s past tax history. While netizens are calling for a full and fair investigation, many are also skeptical about the timing of the report, suggesting it could be an attempt to undermine the popularity of The Prisoner of Beauty, which has been breaking records left and right. Since its premiere, it’s become the fastest drama in 2025 to break 28000 on Tencent as well as topping other rankings like Kuyun and Baidu Search. Unlike female lead Song Zu’er, whose then tax allegations impacted the drama, many feel Liu Xiaoqing’s controversy shouldn’t affect it, especially since her role as the grandmother is relatively smaller.

[UPDATE] Liu Xiaoqing Responds

The same night, Liu Xiaoqing responded to the allegations from Wang, calling it malicious and false. She clarified that she doesn’t know Wang and has never had any dealings with him. She said the court has already ruled in her favor, stating she had nothing to do with the loan mentioned. She criticized Wang for stirring up public opinion online. Liu emphasized that she has always paid her taxes and welcomes any official review. She and her company are cooperating with the ongoing tax investigation.

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