Singer and actor Cha Eun-woo has been embroiled in allegations of the largest-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 said to OSEN regarding Cha Eun-woo's tax evasion allegations and the controversy over enlisting to evade them, "Please understand that it is difficult to confirm anything beyond our official position," and declined to comment.
According to a report that morning, Cha Eun-woo was recently notified by the National Tax Service of a tax reassessment exceeding 20 billion won on charges of income tax and other tax evasion. It was reported that Cha Eun-woo shared income not only with his agency Fantagio but also with corporation A established by his mother, Ms. Choi.
In this regard, the National Tax Service judged that A was effectively a paper company that did not provide actual services. It concluded that Cha Eun-woo and his mother used the shell A to apply a corporate tax rate more than 20% lower than the income tax rate to reduce income tax of up to 45%, a sham maneuver. In fact, A's registered address is on Ganghwa Island, which is cited as a reason it is difficult to consider it a place conducting entertainment-related work.
Cha Eun-woo enlisted in the army band in July last year and is currently serving. The National Tax Service even waited to deliver its notice of results until after his enlistment. This gave rise to allegations that Cha Eun-woo's enlistment was effectively an escape-style "military run." The agency's silence has been taken as effectively admitting the allegations.
However, Fantagio said, "The core issue in this matter is whether the corporation established by Cha Eun-woo's mother is subject to substantive taxation, and this is not a matter that has been finally determined and notified. We will actively explain the issues related to legal interpretation and application through proper procedures," adding, "The artist and tax representatives will faithfully cooperate so that the procedures can be completed quickly. Cha Eun-woo pledges to continue to faithfully fulfill tax reporting and legal obligations as a member of the public."
Cha Eun-woo is set to appear in the Netflix series The Wonder Fools.
[Photo] OSEN DB.
[OSEN]