Nineteen houses and apartments belonging to former Chinese film actress Liu Xiaoqing, arrested for tax evasion, were auctioned in Beijing yesterday.

All her property, except one house that failed to be sold at the auction, was sold for 6.6 million yuan (US$797,409), with the money going towards her outstanding tax bill.

But it's far from enough as Liu still has to pay 16.2 million yuan (US$1.96 million) of tax, said sources with the tax authority.

The auction attracted the public's interest, with more than 500 people attending.

The investigations into Liu's tax evasion by public security have concluded. The People's Procuratorate of Chaoyang District in Beijing formally took over the case last Thursday.

Liu Xiaoqing, a popular Chinese film actress in the 1980s, is best known for playing roles in several movies and TV serials. She was arrested on charges of large-scale tax evasion by the Beijing Public Security Bureau in July, nearly three months after the local Taxation Bureau filed tax evasion cases for investigation and prosecution of the firms she ran.

The actress was found to have evaded large amounts of tax in a series of accounting irregularities. The company falsified its accounts, resorting to methods such as reporting a far higher expenditure and much lower income than it spent or earned since 1996.

Liu attempted to flee to France via Hong Kong in April this year, a report said. She was said to have arrived at Shenzhen Airport with her boyfriend on April 27 and prepared to leave for Hong Kong first, en route to France.

However, local customs officers had received order that Liu was involved in tax evasion and should be prevented from leaving the country. Liu's attempt to escape overseas failed.

(China Daily January 6, 2003)