On the 7th, SBS' NewsStory will look into repeated tax evasion controversies involving famous celebrities and the sense of deprivation felt by ordinary citizens who have honestly paid their taxes.
A small studio in Bucheon, Gyeonggi Province. Mr. Kim Seung-hyun packs props by himself, finishes preparing the camera and then starts an online shopping broadcast. He looks like a Veteran shopping host, but in fact he is a 28-year veteran actor who has appeared in films and drama in bit parts and supporting roles. However, it is difficult to make a living from acting alone, so he is continuously working without rest, juggling advertising shoots, MC activities and other jobs.
Bit-part actors' appearance fees are usually around 500,000 to 1.5 million won. Each time they receive a fee, 3.3% is withheld at the source first, and every May they settle taxes based on annual income when filing comprehensive income tax returns. Those whose income is not abundant say they would rather pay more tax than worry about saving taxes, hoping only that work would continue steadily. In this situation, repeated tax evasion controversies involving famous celebrities are giving them an even greater sense of deprivation.
Recently, singer and actor Cha Eun-woo was notified by the National Tax Service of an additional tax assessment of 20 billion won. At the center of the controversy is a one-person agency set up in a family member's name. Personal income can be taxed at a top rate of 49.5%, but corporate tax rates are around 24%, so even the same income can carry a very different tax burden depending on how it is handled.
Establishing a one-person agency itself is not illegal. The key is whether the corporation in question has the personnel and physical facilities and has actually functioned as an agency. If not, it may be suspected of being a 'paper company' created merely to reduce taxes. An employee of an entertainment agency expressed regret over the tax evasion controversy, saying that celebrities themselves should have a greater sense of calling and responsibility to maintain trust across the entertainment industry.
From using large bakeries to avoid inheritance tax to high-earning YouTubers reducing income tax through address laundering, methods of tax evasion are becoming increasingly sophisticated. Each time news breaks of tax evasion by famous celebrities or high-net-worth individuals, the most frustrated are ordinary citizens who pay their taxes diligently. Model taxpayer Moon Hyung-shin, who has run a butcher shop for more than 40 years and paid tens of millions of won in taxes every year, voiced frustration, saying it must not become a society where people who pay taxes honestly lose out, saying, "Those who have little pay taxes well, and those who have wealth do not."
SBS' NewsStory will be broadcast at 8 a.m. on the 7th.
[Photo] OSEN DB, provided by SBS
[OSEN]