CHA EUN WOO
The “soldier” CHA EUN WOO, whose past actions have been unearthed in connection with a “20 billion won tax fraud suspicion” and who is under intense scrutiny for his every move, recently appears to have been granted leave before returning to his unit.
According to an investigation by OSEN published on January 26, CHA EUN WOO, currently serving in the military band, took leave at the beginning of this month before resuming his duties. Having been enlisted for approximately six to seven months, it is very likely that this was a routine leave during which he spent strictly personal time.
The timing of CHA EUN WOO’s recent leave comes after he was notified by the National Tax Service of a tax adjustment exceeding 20 billion won. Just two weeks after returning to his unit, articles were published on the matter, causing strong repercussions not only in the entertainment industry but also in society at large.
To date, his agency FANTAGIO has, aside from an initial statement, only declared that “it is difficult to confirm anything,” maintaining silence, while CHA EUN WOO, as a soldier, is in a position where he cannot freely comment on his entertainment activities. Nevertheless, given the seriousness of the case, attention is focused on whether he will issue, even briefly, a statement through his agency to appease public opinion, or if he will choose to post directly on his personal SNS to offer an apology to disappointed fans.
Furthermore, before his enlistment last July, CHA EUN WOO was subject to an in-depth investigation for suspected tax fraud conducted by the 4th Investigation Division of the Seoul Regional Tax Office and was notified of a tax adjustment exceeding 20 billion won. This represents the highest tax adjustment ever imposed on a celebrity to date.
The National Tax Service determined that Company A, founded by CHA EUN WOO’s mother, had indeed signed a service contract with his main agency FANTAGIO, but that it was a shell company providing no actual services. In reality, Company A’s address was located in an eel restaurant in Ganghwado, a place deemed inappropriate for entertainment-related activities. Reports indicate that CHA EUN WOO and his mother established this non-substantive company to reduce income tax of up to 45%, by distributing revenue to benefit from a corporate tax rate more than 20 percentage points lower than the income tax rate. It was also determined that the tax invoices received by FANTAGIO from Company A were falsified, resulting in an additional 8.2 billion won in taxes.
After being notified of a tax adjustment exceeding 20 billion won, CHA EUN WOO’s camp contested the National Tax Service’s decision and is currently awaiting the result of a “pre-assessment review before imposition.” On its side, FANTAGIO stated:
“This case primarily concerns whether the company founded by CHA EUN WOO’s mother constitutes an actual taxable entity. It is not yet a finalized and notified decision, and we plan to actively present our arguments in accordance with legal procedures regarding disputed points related to the interpretation and application of the law.”
Journalist: Shawn
Translator: Shawn
Source: SNS CHA EUN WOO
