With handsome looks, a tall stature, a neat bearing and the title of former student body president, the man known as Cha Eunwoo was called "choi-choi cha-cha" (favorite is favorite, Cha Eunwoo is Cha Eunwoo). About a year before his discharge, he faced a massive blow: allegations of the largest tax evasion in entertainment history.
Cha Eunwoo has confronted the biggest crisis of his entertainment career. According to a media outlet on the 22nd, Cha Eunwoo received a notice from the National Tax Service demanding additional taxes exceeding 20 billion won on charges including income tax evasion.
The National Tax Service raised questions about Cha Eunwoo's income structure. A corporation (Company A) established by Cha Eunwoo's mother and his agency Fantagio signed a service contract ostensibly to support Cha Eunwoo's entertainment activities. Afterward, Cha Eunwoo's earnings were divided and distributed among Fantagio, Company A and Cha Eunwoo personally.
The National Tax Service judged that Company A was a paper company that did not provide substantive services. It said income that should have been attributed to an individual was dispersed to the corporation to avoid income tax rates of up to 45% and instead receive the relatively lower corporate tax rate.
Cha Eunwoo's side said, "The main issue in this matter is whether the corporation established by Cha Eunwoo's mother is subject to substantive taxation; this is not a matter that has been finally determined or notified, and we will actively explain the issues related to legal interpretation and application through proper procedures. The artist and his tax representative will cooperate faithfully so that the relevant procedures can be concluded promptly," they said.
The body that directed its scrutiny at Cha Eunwoo is the Investigation Division 4 of the Seoul Regional Tax Service, nicknamed the "corporate reaper." It is known as the department responsible for special tax audits deployed when tips of tax evasion or slush fund creation are detected rather than for routine tax audits; it handles large corporations, high-income individuals, figures related to politics and business, and major tax evasion cases. Therefore, being investigated by Investigation Division 4 of the Seoul Regional Tax Service is often interpreted to mean there are serious allegations such as deliberate tax evasion or embezzlement rather than simple accounting errors.
News that he was hit with an additional tax bill exceeding 20 billion won from Investigation Division 4 of the Seoul Regional Tax Service severely damaged Cha Eunwoo's image. Since debuting in 2016 as a member of ASTRO, Cha Eunwoo has worked as a singer and actor and built an image as a well-mannered young man, with top-three class ranks and a history as student body president during his school years along with his striking visuals. Known to spend his own money on gifts for production staff and praised by seniors as "well-mannered and good to juniors and seniors," Cha Eunwoo had been on a smooth path and was regarded as being on a different level to the extent he was called "choi-choi cha-cha."
However, the tax evasion allegations have seriously damaged Cha Eunwoo's morality and his image as a celebrity. In particular, the duty to pay taxes is one of the four duties that all citizens of Korea must observe without exception, along with the duty of military service, the duty of education and the duty to work. Not only did he allegedly violate that duty, but the news that he received one of the largest additional tax bills among entertainers itself left a blemish on his credibility.
It is also reported that, at Cha Eunwoo's request, the tax notice was held until his enlistment was complete, raising suspicions of preferential treatment and of avoiding military duty. The public who cheered him on calling him "choi-choi cha-cha" appear to feel not just disappointment but betrayal at the allegations alone. Now serving in the military, Cha Eunwoo faces the biggest task he has had to resolve since his debut.
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