CHA EUN WOO
Member of ASTRO and actor CHA EUN WOO (28, real name LEE DONG MIN) is facing allegations that he evaded income tax through an “individual agency”.
Tax authorities have notified CHA EUN WOO of a tax reassessment exceeding 20 billion won (approximately 12 million euros), the highest amount ever claimed from an artist. CHA EUN WOO’s side stated that they plan to explain the situation by filing a request for a reassessment of the taxation.
On January 22, media outlet Edaily reported that CHA EUN WOO had been subjected last spring to a tax evasion investigation conducted by the Seoul Regional Tax Office, and that he was recently notified of a tax reassessment amounting to approximately 20 billion won.
According to reports, CHA EUN WOO is currently under contract with FANTAGIO, but his mother established a single-person company, referred to as Company A, and entered into a service contract with FANTAGIO to provide support services for CHA EUN WOO’s artistic activities. Subsequently, CHA EUN WOO’s income was distributed among FANTAGIO, CHA EUN WOO, and Company A.
However, the National Tax Service reportedly viewed Company A as a type of “shell company” intended to reduce the tax rate. It determined that Company A did not provide substantial services related to CHA EUN WOO’s artistic activities, and that it was created to benefit from a corporate tax rate more than 20 percentage points lower than the personal income tax rate (45%).
Previously, the National Tax Service conducted a tax audit of FANTAGIO and notified the company last August of a total reassessment of 8.2 billion won. It was reported that during the investigation into suspected tax evasion by FANTAGIO, authorities discovered suspicious elements related to Company A and continued their investigation.
After summoning CHA EUN WOO and his mother for questioning, the National Tax Service reached this conclusion. It was also indicated that the results of this tax investigation were notified after CHA EUN WOO’s military enlistment last July.
In response, CHA EUN WOO’s side filed a request for a reassessment of the taxation. FANTAGIO released a statement the same day, stating:
“This matter primarily concerns whether Company A is subject to actual taxation, and it is not a decision that has been definitively finalized and notified. We plan to actively present our position in accordance with legal procedures regarding issues of legal interpretation and application.”
They continued by stating: “We will cooperate in good faith so that this procedure can be concluded promptly, and we will continue to diligently fulfill our tax and legal obligations as citizens.”
Journalist: Shawn
Translator: Shawn
Source: SNS ASTRO, Korean media
