Actor Lee Joon-gi has revealed his stance regarding the approximately 900 million won in taxes that he has been assessed.

On the 19th, Lee Joon-gi's agency, Namoo Actors, stated, "Previously, actor Lee Joon-gi received a regular tax audit from the Gangnam Tax Office in 2023 and was assessed taxes. He respected the tax authorities' decision and paid the assessed amount in full."

Earlier on that day, a media outlet reported that the Gangnam Tax Office in Seoul had initiated a tax audit against Lee Joon-gi and his agency, Namoo Actors, in 2023, and the National Tax Service had assessed approximately 900 million won in taxes.

Namoo Actors stated that they paid grants to JG Entertainment, a personal management company established by Lee Joon-gi and his father in 2014, rather than to Lee Joon-gi himself, and that JG Entertainment calculated Lee Joon-gi's personal grants as corporate revenue for corporate tax purposes. In fact, the corporate tax rate is the highest at 24%, while the highest personal income tax rate is 45%. Given the difference in tax rates, it seems they determined the potential for tax evasion regarding Lee Joon-gi.

In relation to this, the agency noted, "This taxation issue arose from differing interpretations and applications of tax law between our tax representative and the tax authorities, which was a decision that diverged significantly from previous tax practices, and there are conflicting opinions among tax experts and academics regarding its implications."

They continued, "The points of contention with the tax authorities during the audit were whether the transaction of tax invoices between our agency and JG Entertainment established by actor Lee Joon-gi was appropriate and whether the tax on this income should be considered corporate tax for JG Entertainment or personal income tax for actor Lee Joon-gi. During this investigation, aside from differences in the application of corporate and income taxes, no other instances of tax evasion related to actor Lee Joon-gi were pointed out."

Additionally, they explained, "(This decision) is something that was never pointed out during the regular tax audits of 2015 and 2019 prior to 2023, and I understand there has been no existing judgment by the tax authorities or courts regarding the management practices of income and assets through personal corporations, so cautiously, we have applied for a review by the Tax Tribunal and are currently undergoing a hearing."

Finally, they added, "Actor Lee Joon-gi has made efforts to fulfill his tax obligations diligently under the advice of his tax representative. Namoo Actors and actor Lee Joon-gi will adhere strictly to the law and procedures as corporations and as citizens of South Korea, fulfilling our responsibilities and obligations."

Full statement from the agency, Namoo Actors

Hello.
This is Namoo Actors. We are giving our statement regarding the article related to actor Lee Joon-gi that was reported today.

Previously, actor Lee Joon-gi underwent a regular tax audit from the Gangnam Tax Office in 2023 and was assessed taxes. He respected the tax authorities' decision and paid the assessed amount in full. This taxation issue arose from differing interpretations and applications of tax law between our tax representative and the tax authorities, which resulted in a decision that diverged significantly from previous tax practices, and there are conflicting opinions among tax experts and academics regarding its implications.

The points of contention during the audit with the tax authorities were whether the transaction of tax invoices between our agency and JG Entertainment established by actor Lee Joon-gi was appropriate and whether the tax on this income should be considered corporate tax for JG Entertainment or personal income tax for actor Lee Joon-gi. No other instances of tax evasion related to actor Lee Joon-gi were pointed out during this investigation.

Namoo Actors and actor Lee Joon-gi fully respect the results of this tax audit and the tax authorities' decisions. However, we also understand that this matter was never pointed out during the regular tax audits of 2015 and 2019 prior to 2023, and there has been no existing judgment by the tax authorities or courts regarding the management practices of income and assets through personal corporations. Cautiously, we have applied for a review by the Tax Tribunal and are currently undergoing a hearing.

Actor Lee Joon-gi has made efforts to fulfill his tax obligations diligently under the advice of his tax representative. Namoo Actors and actor Lee Joon-gi will adhere strictly to the law and procedures as corporations and as citizens of South Korea, fulfilling our responsibilities and obligations.

Thank you.

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