Cha Eun-woo, a singer and actor who was embroiled in allegations that he was notified by the National Tax Service of more than 20 billion won in additional taxes for tax evasion and other charges, ultimately bowed his head. Cha Eun-woo, who had contested the NTS decision to challenge its legality, ultimately paid the full amount of the imposed taxes and moved to defuse the situation.
On the 8th, Cha Eun-woo posted a lengthy apology on his personal social media and gave his second position on the tax evasion controversy.
Earlier, Cha Eun-woo received a high-intensity tax audit from the Investigation Division 4 of the Seoul Regional Tax Service before enlisting in July last year and was notified of more than 20 billion won in additional taxes. This is the largest amount of additional tax levied on an entertainer to date.
The NTS determined that Cha Eun-woo had signed a service contract with company A, established by his mother, and distributed revenue to receive the lower corporate tax rate instead of the high rate of income tax. The NTS judged that company A was effectively a paper company with no actual service provision.
Initially, agency Fantagio said the company was a firm formally registered as a cultural and arts planning business and, rejecting the NTS decision, filed a "pre-taxation adequacy review," adding that "this is not a matter finally confirmed and notified, and the issue involves disputed interpretation and application of the law," and expressed a willingness to actively explain the matter.
However, three months after the controversy was raised, Cha Eun-woo eventually shifted his position to pay all the taxes. He said, "I respect the NTS's procedures and results, and to prevent further confusion I have paid all related taxes. I will also sincerely participate in the remaining procedures."
In particular, regarding the company in question, Cha Eun-woo explained, "I established the company in the process of preparing to continue my activities more stably during a period of many changes and confusion in my work, but looking back now there were parts I did not sufficiently examine, and I believe the responsibility lies with me, not my family or the company."
He added, "Having carried out activities with the love and support of many people, I take this matter more heavily and deeply. If there were parts I did not sufficiently examine, the responsibility also lies entirely with me. For no reason will I evade responsibility by saying 'I didn't know' or 'it was someone's judgment.'"
Finally, Cha Eun-woo repeatedly expressed apology to the fans who supported him. He said, "Through this incident I strongly felt that I need to look at myself. Above all, it pains me most and I am sorry that I disappointed the fans who trusted me, Aroha." He vowed, "To prevent the same problem from recurring, I will examine my future activities with more cautious and strict standards. I will work harder and harder to be Cha Eun-woo who fully takes responsibility for his choices and actions until the end."
Cha Eun-woo enlisted in the army band in July last year and is currently serving in the military. Because his enlistment came shortly after the tax audit, some suspected it was an enlistment to escape. In response, early in the controversy Cha Eun-woo explained, "Enlisting was not a choice to avoid controversy," and "I will sincerely participate in the tax-related procedures that proceed and take responsibility according to the final judgment."
Facing an indelible image blow from astronomical additional taxes and paper company allegations, Cha Eun-woo chose to confront the issue head-on by paying the full taxes, and attention is focused on whether he can win back the public who have turned away.
[Photo] OSEN DB
[OSEN]