Singer and actor Cha Eun-woo has been accused of tax evasion of 20 billion won. With estimates even suggesting annual revenue of about 80 billion won, the once unshakable reign of the "face genius" since his debut is now wavering.
On the 22nd, according to one media outlet, Cha Eun-woo was recently notified by the National Tax Service of a tax assessment exceeding 20 billion won for income tax and other tax evasion charges. The reason given is that Cha Eun-woo shared income with a corporation A established by his mother in addition to his agency Fantagio.
The National Tax Service judged that A was effectively a paper company that did not provide actual services. A's registered address was found to be on Ganghwa Island, and it appeared unlikely to be a place conducting entertainment-related work. Therefore, the view was that Cha Eun-woo and his mother used the sham A to apply a corporate tax rate more than 20% lower than the income tax rate to reduce income tax of up to 45%.
Under current law, the top personal income tax rate is 45%, and including local government tax it reaches 49.5%. In contrast, the top corporate income tax rate is 25%. If the assessed amount is 20 billion won, Cha Eun-woo's income for the relevant period is estimated to be about 80 billion won. Cha Eun-woo, known as an idol group ASTRO member and beloved as an actor through the nickname "face genius," is estimated to have earned such income from his looks, surprising not only fans but internet users as well.
Suddenly, Cha Eun-woo has found himself in danger of losing the wholesome young-image he had built up. The 20 billion won tax evasion amount is the largest tax assessment among entertainers to date. Above all, the impression that a celebrity who earns revenue by receiving the public's love tried to evade taxes that apply to all citizens has sparked negative criticism.
Of course, debate over the income tax rate for high earners continues. There is also the possibility that the tax assessment amount may change. Fantagio, Cha Eun-woo's agency, on the 22nd issued an official statement saying this matter centers on whether the corporation established by Cha Eun-woo's mother is subject to substantive taxation, that it is not a matter finally confirmed or notified, and that they will actively explain the legal interpretation and application issues through proper procedures.
But damage to his image is unavoidable. This is the first personal controversy to surface since Cha Eun-woo debuted in 2014, and circumstances suggest he may have wanted to avoid it to the extent that even conscription would invite the term "military run." An initial report mentioned that the National Tax Service waited to notify the assessment until after enlistment at Cha Eun-woo's request. Fantagio remained silent, saying "please understand that we have nothing to say beyond our official position," and the National Tax Service also said, "We cannot answer as the related matters are individual security issues," effectively acknowledging the "military run" suspicion.
Cha Eun-woo is still serving faithfully in the army band, and Fantagio added, "The artist and the tax representative will cooperate faithfully so that the procedure can be concluded quickly," and "Cha Eun-woo promises to continue to faithfully fulfill tax reporting and legal obligations as a member of the public."
Even so, it has become unavoidable that cracks appear in the shaken stature of the "face genius." The face genius who earned 80 billion won is now embroiled in tax evasion allegations for trying to avoid 20 billion won in taxes. Attention is focused on whether Cha Eun-woo can prove that this was not penny-wise and pound-foolish.
[Photo] OSEN DB.
[OSEN]