Actor Yoo Yeon-seok has had a double taxation acknowledged by the National Tax Service, resulting in a recalculation of the tax amount. The amount due has decreased to 3 billion won from 7 billion won, which has left a bitter feeling in light of the charges being revealed before he even received the tax notice.
On the 10th, a representative from his agency, King Kong by Starship, noted to OSEN regarding Yoo Yeon-seok's tax payment that "the double taxation has been acknowledged, and the tax amount has been recalculated," stating that he has fully paid an amount of about 3 billion won in tax.
This caught attention as it is about half of the initially reported amount of 7 billion won. Last month, Yoo Yeon-seok underwent a high-intensity tax audit from the National Tax Service, which had assessed the highest tax amount of 7 billion won among entertainers, making headlines. The result overturns that.
The controversy over the tax audit on Yoo Yeon-seok was triggered when he established a separate corporation, Forever Entertainment. According to his agency, since 2015, Yoo Yeon-seok has operated a personal YouTube channel, as well as various side businesses including the restaurant industry. The revenue generated from his activities as an actor was reported and taxed personally, while the revenue from his YouTube activities and other business revenues were reported through his corporation.
The National Tax Service had a different perspective. Since Forever Entertainment is effectively a one-person agency established by actor Yoo Yeon-seok, it must apply the tax rates applicable to individuals. Given the significant difference between corporate tax and personal income tax, the consequence was the imposition of 7 billion won in tax, the highest ever levied on an entertainer.
However, even at the time of the initial report that raised suspicions of tax evasion, Yoo Yeon-seok's side emphasized the "differences in interpretation and application of tax laws." Immediately, they filed for a pre-tax assessment, resulting in a tax of about 3 billion won being imposed, which has now been promptly paid.
Before Yoo Yeon-seok, actors Lee Ha-nee and Jo Jin-woong also faced additional tax assessments from the National Tax Service due to the establishment of separate corporations outside their exclusive contracts. In fact, as entertainers expand their avenues through operating YouTube channels and social media, there are various interpretations of tax laws regarding revenues generated from activities outside the contracts secured with their agencies.
Above all, due to their fame, the public has grown increasingly aware of the risk of negative issues like "tax evasion" and "tax avoidance" consuming the image of individuals like Yoo Yeon-seok, even amidst double taxation. Especially, before Yoo Yeon-seok even received an accurate tax notice, related suspicions were widely reported, impacting his reputation negatively. He is set to star in SBS's new drama "My Lawyer, Attorney Shin," which has led to controversy regarding the appropriateness of his casting.
Nonetheless, the conservative interpretation of tax laws by the tax authorities is expected to continue for some time. This has raised concerns in the industry regarding the establishment of separate corporations and one-person agencies outside exclusive contracts.
In this regard, a source from the entertainment industry, requesting anonymity, stated, "The fact that tax audit-related details were reported by certain media before receiving the tax notice appears to infringe upon the taxpayer's rights protected under the National Tax Fundamental Law," adding that "fair tax administration must be carried out."
[Photo] OSEN DB.
[OSEN]