"group ASTRO alumnus actor Cha Eun-woo is embroiled in allegations of tax evasion involving around 20 billion won, and the fallout is growing. Online and within the industry, regarding the scale of the additional tax assessment, some have even said, "among entertainers, this is unprecedented."
On the 22nd, one outlet reported that Cha Eun-woo received notification from the National Tax Service of an additional tax assessment exceeding 20 billion won for income tax and other taxes. If the report is accurate, it would be an unusually large sum among tax audit results targeting entertainers.
According to the report, Cha Eun-woo underwent an intensive tax audit by the Seoul Regional Tax Service's Investigation Division 4 in the spring last year before his enlistment. Although he originally had an agency, allegations arose that he reduced his tax burden by setting up a separate corporation in his or his family's name, entering into a service contract with the agency, and distributing income.
In fact, company A established by Cha Eun-woo's mother, Ms. Choi, signed a contract with agency Fantagio to provide support services for entertainment activities. However, the National Tax Service reportedly judged that company A was a paper company that did not provide substantive services. The National Tax Service believes this allowed avoidance of the high income tax rate of about 45% and the application of a corporate tax rate around 20%.
Accordingly, the National Tax Service regarded Fantagio as having processed company A's "false tax invoices" and imposed additional assessments of about 8.2 billion won in value-added taxes, and after summoning Cha Eun-woo and his mother for separate investigations, concluded that more than 20 billion won in income tax had been omitted, which is the core of the report.
However, the National Tax Service reportedly postponed sending the tax audit notification at Cha Eun-woo's request until his enlistment procedures were completed. Cha Eun-woo received notice of acceptance into the army band in May last year and enlisted on July 28 of the same year and is currently serving.
When this timing became known, some raised so-called "military run" allegations, saying, "isn't this enlistment an escape to avoid controversy?" As the amount of the additional assessment has been described as unprecedented, criticism has intensified.
As the controversy spread, agency Fantagio said in an official statement that "the key issue in this matter is whether the corporation established by Cha Eun-woo's mother is a substantive tax subject," and that "the matter has not been finally confirmed or notified, and we will actively provide evidence through proper procedures on the points of legal interpretation and application." It also denied the claims, saying, "the company in question is not a paper company but is a formally registered company in the field of popular culture and arts planning."
However, it did not take a separate position on the "military run" allegations. Fantagio declined to comment further, saying, "It is difficult to confirm anything beyond the official statement."
Meanwhile, after receiving the National Tax Service's notification, Cha Eun-woo filed a petition for review of imposition and is disputing the appropriateness of this decision. Since legal procedures are underway, the question of tax evasion and the scope of responsibility remain for final determination.
[photo]"OSEN DB"
[OSEN]