Singer and actor Cha Eun-woo is currently embroiled in tax evasion allegations. On the 22nd, a representative from his agency, Fantagio, told Xportsnews that they are “organizing their position” regarding the matter.
Previously, Edaily reported that Cha Eun-woo underwent a rigorous investigation by the Seoul Regional Tax Office’s 4th Bureau last year on charges of tax evasion. He was subsequently notified by the National Tax Service of a 20 billion won tax levy due to alleged income tax evasion.
It is alleged that Cha Eun-woo established a family company to improperly reduce taxes despite already having an agency.
Cha Eun-woo’s mother, Ms. A, established Corporation B, which then entered into a support contract for entertainment activities with Fantagio. Fantagio, Corporation B, and Cha then shared the profits. The National Tax Service deemed this a paper company, concluding that Cha Eun-woo and Ms. A employed a scheme to reduce income tax by 45%.
The National Tax Service concluded that Cha Eun-woo avoided paying over 20 billion won in income tax due to this scheme. However, Cha Eun-woo’s side reportedly countered that it is not a shell company but a properly registered entity in the popular culture and arts planning business.
Photo = Xportsnews DB
