Singer and actor Cha Eunwoo has been caught up in allegations of the largest tax evasion by a celebrity, at 20 billion won, and reports have also emerged that he requested the National Tax Service to withhold the 'tax investigation result notice' until after his enlistment. In response, the National Tax Service said it was an "individual security matter" and declined to comment.
On the 22nd, one outlet reported that Cha Eunwoo was notified by the National Tax Service of a tax reassessment exceeding 20 billion won on charges including income tax evasion. This is the largest reassessment imposed on an entertainer to date.
According to the report, this stems from the tax investigation he received before enlisting in the military in July last year, and Cha Eunwoo's side is currently awaiting the result of the "pre-assessment review" they filed in objection to the National Tax Service's decision.
The outlet said that in Cha Eunwoo's case, a company A established by his mother, Ms. Choi, came between his agency Fantagio and Cha Eunwoo. Fantagio and company A signed a contract for services to support Cha Eunwoo's entertainment activities, and from that time it is reported that the income Cha Eunwoo earned was divided among Fantagio, company A and Cha Eunwoo.
However, the National Tax Service judged that company A was essentially a 'paper company' that did not actually provide services. It is reported that the agency believes Cha Eunwoo and his mother set up the non-substantive company A and distributed income to receive a corporate tax rate more than 20 percentage points lower than the personal income tax rate in order to reduce the 45% income tax, effectively using a trick. In fact, company A's address is on Ganghwado, and the reason given was that it is hard to see it as a place engaged in entertainment-related activities.
Cha Eunwoo is opposed to the National Tax Service's investigation results. On the 22nd, his agency Fantagio said in an official statement that "the main issue in this matter is whether the company established by Cha Eunwoo's mother is subject to substantive taxation, and this is not a matter that has been finally confirmed and notified; we will explain the issues related to legal interpretation and application through lawful procedures."
The agency added, "The artist and the tax representative will cooperate faithfully so that the procedure can be completed promptly. Cha Eunwoo pledges to continue to faithfully fulfill tax filings and legal obligations as a member of the public."
In addition, reports said the National Tax Service did not send the tax investigation result notice before his enlistment and waited at his request while Cha Eunwoo, who enlisted in the army band in July last year, is serving in the military. As suspicions were raised that Cha Eunwoo's enlistment was effectively an evasive "military run," the agency maintained silence, saying, "Please understand that it is difficult to verify anything beyond the official position."
So can ordinary people also coordinate with the National Tax Service to adjust the date of notice in cases of tax reassessment? On this, the National Tax Service gave a cautious response, saying, "We cannot answer because the related matters are individual security issues." It meant that because the National Tax Service's investigation into Cha Eunwoo's alleged tax evasion is ongoing, it cannot provide any related answers.
Some argue that because the National Tax Service accommodates taxpayers' convenience to the greatest extent to collect taxes, such coordination is fully possible. However, there is a heated debate among netizens over the fact that Cha Eunwoo filed a "pre-assessment review" despite the National Tax Service's accommodations.
Meanwhile, Cha Eunwoo enlisted in basic training on July 28 last year and is serving in the army band. His expected discharge date is Jan. 27, 2027.
[Photo] OSEN DB
[OSEN]