Singer and actor Cha Eun-woo has returned from military leave, following recent allegations of the largest-ever tax evasion, amounting to 20 billion won.
On the 26th, OSEN reported that Cha Eun-woo took a vacation at the beginning of the year, after receiving notification from the National Tax Service of a tax correction exceeding 20 billion won.
According to Xportsnews, Fantagio confirmed, “It’s true that Cha Eun-woo took a vacation at the start of the year.”
As Cha Eun-woo is currently serving in the military and cannot easily express a personal stance, curiosity is growing as to whether he will recognize the seriousness of the situation and take steps, such as providing explanations. The agency has not disclosed its stance on this matter.
Cha Eun-woo recently underwent an intense tax investigation by the Investigation Bureau 4 of the Seoul Regional National Tax Service last year on charges of tax evasion. The National Tax Service subsequently notified him to pay approximately 20 billion won in taxes, including income tax. This represents the largest amount the National Tax Service has ever imposed on a Korean entertainer.
Cha Eun-woo’s mother founded a corporation, referred to here as Company A. His agency, Fantagio, then signed a service contract for entertainment activities, with profits divided among Fantagio, Company A, and Cha Eun-woo.
However, the National Tax Service regarded Company A as a “paper company” used by Cha Eun-woo and his mother to reduce their income tax burden.
Fantagio stated, “The main issue is whether the corporation established by his mother falls under the category subject to actual taxation,” adding, “The matter has not been finalized or notified, and we plan to actively explain the issues related to the interpretation and application of the law through legitimate procedures.”
Cha Eun-woo enlisted in the army’s military band in July last year, which subsequently raised suspicions that he chose to enlist to avoid the tax controversy.
Reports also indicated that the National Tax Service waited until enlistment procedures were completed before sending the tax investigation results, at Cha Eun-woo’s request. The agency has not made any additional statements about this.
