Samsung Group heir Lee Jae-yong has been cleared of allegations that he evaded taxes through the establishment of a paper company in the British Virgin Islands, according to police Thursday.

The financial crime unit of the Seoul Metropolitan Police Agency said it decided not to file tax evasion and other charges against the Samsung Electronics Co. vice chairman in a case launched after the Youth Justice Party filed a criminal complaint last year.

The party filed the complaint after Lee was purported to have created a paper company in the Virgin Islands in order to create a Swiss bank account in 2008. The suspicion was first raised by online news outlet Newstapa in October of last year.

Police reportedly failed to confirm specific criminal offenses, as they were unsuccessful in obtaining evidence from overseas despite seeking cooperation from British and Swiss law enforcement authorities. (Yonhap)