Singer and actor Cha Eunwoo has been engulfed in allegations of the highest-ever tax evasion by an entertainer, amounting to 20 billion won, and suspicions have even been raised that he enlisted to avoid it.
On the 22nd, his agency Fantagio told OSEN, "Please understand that it is difficult to confirm anything beyond the official position," remaining tight-lipped.
That morning, a media outlet reported that Cha Eunwoo was recently notified by the National Tax Service of a tax reassessment exceeding 20 billion won on charges including income tax for tax evasion. It said that Cha Eunwoo divided income not only with his agency Fantagio but also with corporation A, which was established by his mother, Ms. Choi.
In this regard, the National Tax Service judged that A was a paper company that did not actually provide services. It concluded that Cha Eunwoo and his mother used the sham A to receive a corporate tax rate more than 20% lower than the income tax rate to reduce income tax of up to 45%, effectively using a trick. In fact, A's registered address is on Ganghwa Island, and authorities said it was difficult to view it as a place conducting entertainment-related work.
Cha Eunwoo enlisted in the army's military band in July last year and is serving in the military. It also emerged that the National Tax Service waited to deliver the results notice until after his enlistment. This led to suspicions that his enlistment was essentially a getaway "military run." The agency's silence has been maintained, creating the appearance of tacitly acknowledging the allegations.
However, Fantagio said, "The main issue in this matter is whether the corporation established by Cha Eunwoo's mother falls under substantive taxation, and this is not a matter that has been finally confirmed or notified. We will actively explain the issues related to legal interpretation and application through proper procedures," adding, "The artist and the tax representative will sincerely cooperate so that the procedures can be completed quickly. Cha Eunwoo promises to faithfully fulfill tax reporting and legal obligations going forward as a member of the public."
Cha Eunwoo is scheduled to appear in the Netflix release The Wonder Fools.
[Photo] OSEN DB.
[OSEN]