A lawyer and accountant has clarified allegations of tax evasion involving Cha Eun-woo.
Cha Eun-woo reportedly underwent an intensive tax investigation last year by the Seoul Regional Tax Office’s Investigation Bureau No. 4 on charges of tax evasion. Allegedly, he received notification of a tax collection of approximately ₩20 billion, including income tax, an amount marking the largest ever imposed on a domestic celebrity. Despite this, Cha Eun-woo, who is currently serving in the military, has remained silent.
The National Tax Service reportedly believes that Cha Eun-woo and his mother utilized Company A, where his mother serves as a representative, to reduce their income tax burden. In response, Cha Eun-woo’s agency, Fantagio, stated that “whether the company established by his mother is subject to actual taxation is the main issue” and expressed its intention to “actively clarify.”
Meanwhile, Kim Myung-kyu, a lawyer and certified public accountant, offered an expert’s perspective on the controversy. He stated, “From a general perspective, people might think, ‘Wow, how much did he earn for the taxes alone to be ₩20 billion?’ As an expert (lawyer+accountant), let me break down the meaning of this number.” He clarified, “This ₩20 billion does not represent only the original taxes that should have been paid. The actual tax is estimated to be between ₩10 billion and ₩14 billion, with the remainder consisting of penalties (additional taxes).”
He further explained, “If the National Tax Service determines that you ‘intentionally deceived’ (unfair underreporting), they impose a penalty of 40% on the original tax due, along with interest (late payment penalty). Therefore, out of the ₩20 billion, ₩6 billion to ₩10 billion essentially represents the cost of lying.”
He also conveyed, “The involvement of Investigation Bureau No. 4 in this case is a strong signal that the National Tax Service views this not merely as a simple mistake, but as very serious intentional tax evasion charges.”
Furthermore, Cha Eun-woo’s mother registered Company A’s address as Gimpo, Gyeonggi Province, when it was officially registered as an entertainment business. However, upon its conversion to a Limited Liability Company (LLC) in 2024, the address shifted to an eel restaurant in Ganghwa. Regarding this, he explained, “The most suspicious point is that a perfectly fine corporation was changed to an LLC,” adding, “and the reason is simple: to avoid external audits.”
Meanwhile, Cha Eun-woo is currently serving in the military and is set to be discharged next January. Before this tax evasion controversy, he also faced suspicions of ‘military enlistment for escape purposes.’
