Luo Yonghao Accused of Tax Evasion, Denies Allegations as Defamation
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On September 28, 2024, Chinese entrepreneur Luo Yonghao faced a public accusation of major tax evasion from Zheng Gang, founder of Zihui Venture Capital and an early investor in Luo's former company, Smartisan Technology. Zheng posted a complaint on social media alleging that Luo used dozens of shell companies and limited partnerships to launder money and evade taxes, some of which have already been dissolved. Luo responded immediately, calling the accusation a false report and stating he has saved screenshots as evidence. He further claimed that Zheng is a discredited person subject to travel restrictions and is currently posting from South Korea, and that the case could lead to criminal charges against Zheng. The article notes that Zheng is a discredited person with multiple court orders against him, including asset freezes and travel bans. The two have a long history of conflict stemming from a failed investment in Smartisan Technology, including disputes over share buybacks and a 15 million yuan loan. The report is based on coverage from Daxiang News.
Source report
September 28 — The hashtag "Luo Yonghao accused of tax evasion" trended on Weibo today, following a public complaint filed by Zheng Gang, founder of Zihui Venture Capital.
The Allegation
On the evening of September 27, Zheng Gang publicly accused Luo Yonghao and his live-stream e-commerce agency Friends (交个朋友) of major tax evasion. Friends, a Hong Kong-listed company operating live-streaming channels on platforms including Douyin, Taobao, and JD.com, is primarily associated with Luo Yonghao.
Zheng alleged that Luo used the names of individuals including Luo Yongxiu, Huang He, and colleague Li Jun to register dozens of shell companies for money laundering, claiming these entities constituted serious tax evasion. He stated that many limited partnership firms involved had already been dissolved.
Zheng said: "Even if you've dissolved them now, I can bring them back to life. Let's see how much tax you owe in those limited partnerships and how much money flowed through them."
Luo Yonghao's Response
Luo Yonghao responded promptly, stating he had taken screenshots of the allegations. He remarked: "Too many online hooligans have no idea that false accusations are a crime," and called on netizens to help preserve evidence.
Luo further claimed that Zheng Gang is a judgment debtor subject to consumption restrictions, and alleged that Zheng is currently abroad illegally, posting defamatory content from South Korea. Luo warned that if the case is filed, Zheng could face criminal charges.
Background on Zheng Gang
According to the Tianyancha app, Zheng Gang is associated with 41 companies, of which over 20 are active, including:
- Shanghai Zihui Mobai Venture Capital Partnership (Limited Partnership)
- Smartisan Technology (Chengdu) Co., Ltd.
Zheng holds shares or serves as a director in these firms. More than 10 other companies under his name have been revoked or dissolved.
Risk information shows that over 10 million yuan worth of Zheng's equity has been frozen, including stakes in:
- Suzhou Zihui Tianma Venture Capital Enterprise (Limited Partnership)
- Chengdu Kailan Commercial & Trade Co., Ltd.
Zheng also has multiple consumption restriction orders. Notably, he was previously ordered to pay over 9.33 million yuan and has been banned from leaving the country. He is listed as a dishonest judgment debtor and has been repeatedly restricted from high consumption.
Long-Standing Dispute
The conflict between the two parties is not new. As one of the earliest investors in Smartisan Technology, Zheng was once a supporter of Luo Yonghao. The dispute began over equity repurchase issues and a 15 million yuan loan. After Smartisan's collapse, the two failed to reach a debt settlement agreement, deepening their rift. Since then, Zheng and Luo have repeatedly clashed online.
Source: Daxiang News Editor: Shen Jialing
Source
新民晚报Eastern
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Luo Yonghao denies tax evasion allegations from investor Zheng Gang on Weibo