Singer and actor Cha Eun-woo has been engulfed in allegations of 20 billion won in tax evasion, and reports have emerged that he has hired a major law firm to respond. His agency Fantagio has remained silent. Can Cha Eun-woo hire a law firm to confront the National Tax Service and restore his image?
On the 26th, one media outlet reported that Cha Eun-woo had appointed Shin & Kim LLC as his legal representative to pursue legal action over the National Tax Services notice of 20 billion won in additional taxes. Shin & Kim LLC is one of the so-called five major and large law firms and recently handled litigation related to girl group NewJeans exclusive contract.
Accordingly, Cha Eun-woo is expected to hire a major law firm to respond to allegations of 20 billion won in tax evasion. On that day, a Fantagio official told OSEN that whether Cha Eun-woo had hired a major law firm to respond to the tax evasion allegations was "unable to confirm," maintaining silence. This is being interpreted in effect as an "admission," and Cha Eun-woos legal response to the National Tax Services additional tax notice is anticipated.
Earlier, Cha Eun-woo was notified by the National Tax Service of an additional tax assessment exceeding 20 billion won on charges of tax evasion including income tax. This is the largest additional tax assessment for a domestic entertainer and ranks as high as sixth even when considered worldwide.
In this regard, Fantagio issued an official statement saying, "The core issue in this matter is whether the corporation established by Cha Eun-woos mother qualifies as the subject of substantive taxation. This has not been finally confirmed or notified, and we will actively provide explanations through proper procedures regarding issues of legal interpretation and application."
However, public reaction has been cold in light of the enormous size of the additional tax. In particular, attention is focusing on whether Cha Eun-woo could be subject to the Act on the Aggravated Punishment of Specific Crimes. Under that act, if the evaded tax amount in a year is 1 billion won or more, a sentence of life imprisonment or imprisonment of five years or more can be imposed.
Especially in an OSEN exclusive on the 26th, it was confirmed that Cha Eun-woo took leave earlier this year and then returned. Now six to seven months into his service since enlistment, Cha Eun-woo likely took scheduled leave based on timing and is presumed to have spent strictly personal time. After returning, he appears to have directly retained a law firm to begin responding in earnest.
Meanwhile, the National Tax Service determined that Cha Eun-woo had divided income with his mothers corporation A in addition to his agency Fantagio, and that corporation A was effectively a paper company that did not provide actual services. In fact, corporation As registered address is an eel restaurant located on Ganghwa Island, making it difficult to carry out entertainment-related work.
The National Tax Service judged that Cha Eun-woo and his mother used the sham corporation A to reduce what should have been about 45% in income tax, thereby improperly receiving a corporate tax rate more than 20% lower than the individual income tax rate.
In addition, reports said that while Cha Eun-woo enlisted in the army band in July last year and is serving in the military, the National Tax Service, at his request, delayed sending the tax investigation result notice and waited. Amid allegations that his enlistment was effectively an evasive "military run," the agency has maintained silence, asking for understanding that "it is difficult to confirm beyond the official position."
[Photo] OSEN DB
[OSEN]