Cha Eun Woo tax-evasion case: Agency Fantagio admits to receiving hefty penalty by tax authorities
&imwidth=600&imheight=450&format=webp&quality=medium "Cha Eun Woo tax-evasion case: Agency Fantagio admits to receiving hefty penalty by tax authorities")
Cha Eun Woo Photograph: (Instagram)
Actor Cha Eun Woo, who has been caught up the tax evasion scandal, in the latest update his agency has revealed that they have received hefty penalty. Read to know more.
Ever since South Korean idol and actor Cha Eun Woo has been under fire for his involvement in tax evasion, new revelations have been coming up each day. With Cha Eun Woo possibly in legal trouble for him evading $13 million, after being notified by the National Tax Service, in the latest development his agency Fantagio has admitted they have received a hefty penalty for the involvement. Let's delve into knowing more.
Fantagio on paying hefty fine to tax authorities
According to a report by Koreaboo, the agency admitted to Xports News that they were fined $5.73 million last year. While some reports have stated that the amount is almost $5.94 million. Reportedly, the National Tax Service also found that Fantagio had received unfair tax benefits through its financial dealings with Cha Eun Woo's one-person agency and issued a tax assessment last year.
Will Cha Eun Woo face imprisonment for the tax evasion?
As per the report of The Chosun Daily, amid the scandal, Kim Jeong Gi, a lawyer of YTN Radio's lawyer Lee Won-hwa's Case X-File, stated, "The 20 billion won in additional taxes is the largest amount ever imposed on an individual entertainer in South Korea and ranks among the highest globally. Experts estimate Cha Eun Woo's earned income exceeds 100 billion Korean won."
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He further stated, "This is the National Tax Services's advance notice stating, We found you owe this much in taxes, but it's not yet finalised. Cha Eun Woo's side has requested a pre-assessment review to challenge the National Tax Service's decision. The National Tax Service suspects the corporation founded by Cha Eun-woo’s mother existed solely to reduce taxes. They must demonstrate the corporation actually supported and managed his activities."
“If the evaded tax exceeds 1 billion Korean won, the Act on the Aggravated Punishment of Specific Crimes applies, allowing penalties of life imprisonment or at least five years. In this case, not only Cha Eun-woo’s mother—as the corporation’s representative—but Cha Eun-woo himself, as the de facto beneficiary, could be investigated and punished as an accomplice,” Kim stated.
All about the case of Cha Eun Woo in tax evasion
According to several reports, Cha Eun Woo was recently notified by the National Tax Service Seoul Regional Office that he would owe more than 20 billion won ($13.6 million) in additional income tax following an intensive audit conducted in the first half of last year. Reportedly, the amount is believed to be the largest ever sought from an individual artist.
Cha’s side has requested a tax assessment review to challenge the appropriateness of the National Tax Service’s decision. They argued, "Due to frequent changes in Fantagio’s representatives, Cha’s mother, feeling anxious about her son’s entertainment activities and determined to protect him, established the company to directly manage his career. It is a formally registered entertainment planning company, not a paper company." However, the address of the management company established by his mother, registered as a popular culture and arts planning business on June 15, 2022, is Tongjin-eup, Gimpo-si, Gyeonggi-do. The company’s address is known to be the building of an eel restaurant operated by the mother in Ganghwa-do, Incheon.
Several companies have reportedly withdrawn advertising campaigns featuring actor and singer Cha Eun Woo following the tax evasion allegations. Shinhan Bank has already made Cha's ads private on YouTube and other social media platforms. While skincare brand Abib has also removed content related to him from Instagram and X. Other than these brands, Cha Eun Woo also represents Calvin Klein, LG Uplus, Saint Laurent and Norang Tongdak (a fried chicken chain).
