Group ASTRO member and actor Cha Eun-woo opened his mouth about allegations of 20 billion won in tax evasion, but he could not prevent advertisers from cutting ties.
Cha Eun-woo on the 26th said, "I sincerely bow my head and apologize for causing concern and disappointment to many people due to various recent matters related to me. Taking this incident as an opportunity, as a citizen of Korea, I am deeply reflecting on whether my attitude toward the duty to pay taxes has been sufficiently strict," and four days after the tax evasion allegations surfaced, he issued a direct statement.
The Seoul Regional Tax Service Investigation Bureau 4 conducted a high-intensity investigation last year into Cha Eun-woo over suspicions of tax evasion through a one-person management agency established by his mother. Cha Eun-woo had been active by having his agency Fantagio and the one-person management agency set up by his mother enter into service contracts to support his entertainment activities, and income was reportedly divided evenly among Fantagio, the one-person management agency, and Cha Eun-woo, but the National Tax Service regarded the one-person management agency established by Cha Eun-woo's mother as a paper company that did not actually provide services.
The National Tax Service judged that Cha Eun-woo and his mother set up a corporation and distributed income to reduce income tax by as much as 45%, using a scheme that applied a corporate tax rate 20 percentage points lower than the income tax rate, and Cha Eun-woo's side said, "This matter is centered on the major issue of whether the corporation established by Cha Eun-woo's mother is subject to substantive taxation, and it is not a matter that has been finally confirmed and notified. We will actively explain the issues related to legal interpretation and application through proper procedures. The artist and the tax representative will faithfully cooperate so that the relevant procedures can be completed promptly," it said.
The "20 billion won tax evasion" scandal involving Cha Eun-woo is the largest ever among domestic entertainers. In particular, as allegations arose that Cha Eun-woo used tricks to avoid taxes, the brands that had put him forward as their face reacted sensitively and took action. First, skincare brand Abib switched videos and posts related to Cha Eun-woo to private, and Shinhan Bank took the same measure. They did not explain the reason for making the ads private, but the actions were significant in that they came after the tax evasion allegations surfaced.
Amid the seriousness of the situation Cha Eun-woo faced, he eventually spoke out, but he could not stop advertisers from leaving. OSEN confirmed on the 26th that fashion brand Marithe Francois Girbaud took Cha Eun-woo's advertisements private. Marithe Francois Girbaud, which had selected Cha Eun-woo as a model last year, said as of the afternoon of that day that there would be no special measures, but within hours it took ads private and distanced itself from Cha Eun-woo.
Although Cha Eun-woo, who announced a statement while on military service, moved to contain the situation, he could not prevent advertisers from leaving. Cha Eun-woo returned after enjoying his first leave since the lunar new year of the byeong-o year, and he is known to have appointed Shin & Kim LLC as legal counsel and to be continuing legal responses to the National Tax Service's notice of a 20 billion won additional tax assessment.
[OSEN]