A member of the group ASTRO and actor Cha Eun-woo is accused of using tricks to avoid tax evasion.
According to the Comprehensive Information System for Popular Culture and Arts on the 23rd, the management company established by Cha Eun-woo's mother was registered as a popular culture and arts planning business on June 15, 2022.
The address of that management company is Tongjin-eup, Gimpo-si, Gyeonggi. While the corporate address is known to be the eel restaurant building his mother operated on Ganghwa Island, Incheon, an allegation arose that they used a trick to evade tax evasion after a different address was entered in the Comprehensive Information System for Popular Culture and Arts.
Fantagio, Cha Eun-woo's agency, said it was unable to confirm and withheld comment.
Cha Eun-woo is currently embroiled in allegations of tax evasion. Last year, the Seoul Regional Tax Service Investigation Division 4 conducted an intensive investigation into Cha Eun-woo on allegations of tax evasion through a one-person agency established by his mother and notified him of a reassessment of income tax exceeding 20 billion won. This was reported to be the largest amount for a domestic entertainer.
Cha Eun-woo has been active through a contract in which his agency Fantagio and the one-person agency set up by his mother provided entertainment activity support services. It is reported that the income Cha Eun-woo earned was divided evenly among Fantagio, the one-person agency, and Cha Eun-woo. The tax authority viewed the one-person agency established by his mother as a paper company that did not actually provide services, and judged that Cha Eun-woo and his mother set up a corporation and distributed income as a scheme to reduce income tax of about 45% by applying a corporate tax rate 20 percentage points lower than the income tax rate.
Fantagio said this matter is primarily a dispute over whether the corporation established by Cha Eun-woo's mother is subject to substantive taxation, that it is not a matter that has been finally determined and notified, and that they will actively explain the issues related to legal interpretation and application through proper procedures. They added that the artist and the tax representative will cooperate faithfully so that the procedure can be completed quickly.
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