South Korean actor and singer Cha Eun-woo has been embroiled in a major controversy after being accused of involvement in a tax evasion scandal amounting to 20 billion won (approximately RM55 million).
According to The Chosun Daily, the artist’s management agency, Fantagio, stated that they are currently investigating the serious allegations.
“We are currently gathering information and preparing a statement. We will release an official statement soon,” the agency said.
Reports stated that Cha had received a notice from South Korea’s National Tax Service (NTS) regarding a reassessment of unpaid taxes.
The tax penalty, amounting to more than 20 billion won, is reportedly the largest ever imposed on a celebrity in the country.
The report revealed that the action was taken following an intensive tax audit by Investigation Division 4 of the Seoul Regional NTS Office last spring, shortly before the actor began his military training.
According to authorities, Cha allegedly used the same modus operandi as other celebrities through a so-called “one-person agency” tactic.
Investigations found that a company founded by Cha’s mother allegedly acted as an intermediary between Fantagio and the artist.
However, the NTS determined that the company was a “paper company” that did not actually provide any real services.
Authorities alleged that the company was established to manipulate income structure in order to evade individual income tax of up to 45 percent, instead benefiting from a much lower corporate tax rate. -BOOM!
