Group ASTRO member and actor Cha Eun-woo is embroiled in controversy over alleged tax evasion amounting to 20 billion won, and estimates have placed the assessed surcharge as sixth largest in the world.
Cha Eun-woo was found to have received a notice from the National Tax Service for a tax surcharge exceeding 20 billion won on income tax and other taxes after a rigorous tax audit last year.
The National Tax Service judged that company A, established by Cha Eun-woo's mother, had entered into a service contract with agency Fantagio but was a paper company that did not provide substantive services. It was reported that Cha Eun-woo and his mother set up the fictitious company A and distributed income to reduce income tax of up to 45%, using a scheme to be taxed at the corporate tax rate more than 20 percentage points lower than the income tax rate.
The tax surcharge exceeding 20 billion won assessed against Cha Eun-woo was reported to be the largest amount ever imposed on a domestic entertainer, drawing attention. Subsequently, online claims have surfaced that Cha Eun-woo's alleged tax evasion ranks sixth among entertainers and sports stars worldwide, attracting interest.
According to netizens' claims, the largest tax surcharge was against Chinese actress Fan Bingbing at about 144 billion won. Second was Chinese actress Zheng Shuang (about 54 billion won), third was Portuguese footballer Cristiano Ronaldo (about 28 billion won), fourth was American singer Willie Nelson (about 22 billion won), and fifth was Colombian singer Shakira (about 21 billion won). Cha Eun-woo was being mentioned around sixth place.
However, the 20 billion won surcharge for Cha Eun-woo is not a finalized matter. Agency Fantagio said on the 22nd that this matter centers on whether the company established by Cha Eun-woo's mother is subject to substantive taxation, and that it is not a matter that has been finally confirmed and notified, adding that it will actively explain the issues related to legal interpretation and application through proper procedures.
It added that the artist and tax representatives will faithfully cooperate so that the procedure can be completed promptly, and that Cha Eun-woo promises to continue to faithfully fulfill tax reporting and legal obligations as a member of the public. It is known that Cha Eun-woo is currently awaiting the result of a pre-assessment review of taxation he filed in objection to the National Tax Service's decision.
Cha Eun-woo is experiencing strong aftershocks from the tax evasion allegations. Some have responded that because Cha Eun-woo enlisted July 28 last year and is serving, the timing of the tax audit notification may have been deliberately delayed until his enlistment to avoid criticism, in what they call a "military run." Also, Cha Eun-woo was removed from a beauty brand for which he worked as a model and from a bank advertisement video.
With Cha Eun-woo expressing his intention to actively explain the tax evasion allegations, attention is focused on whether he will issue an additional statement amid the growing fallout.
[Photo] OSEN database.
[OSEN]