Samsung Electronics vice chairman Lee Jae-yong has been cleared of allegations that he evaded taxes through a paper corporation after the police admitted there was insufficient evidence.

The financial crime unit of the Seoul Metropolitan Police Agency announced on Thursday that they decided not to file tax evasion and other charges against the Samsung heir on February 21.

Police said they sent official documents to the UK and Switzerland to obtain information on an alleged paper company used to divert funds, but after failing to receive the requested material, they could not confirm specific criminal offenses.

Suspicions were first raised by local online news outlet Newstapa last October. It alleged that Lee created a paper company in the British Virgin Islands in order to open a Swiss bank account.

The Youth Justice Party then filed a complaint with the prosecution against former and incumbent Samsung Electronics executives, and the case was transferred to the police.