Group Astro member and actor Cha Eun-woo is facing allegations of tax evasion and running a paper company.
E-Daily reported on January 22 that Cha Eun-woo underwent an intensive tax investigation by the Seoul Regional Tax Office last year for tax evasion, and the tax office notified him of an additional tax levy of approximately 20 billion KRW.
This amount is the largest tax levy ever imposed on an individual entertainer.
Cha Eun-woo’s mother established a corporation that signed a service contract with Fantagio to support his entertainment activities. Tax authorities suspect Cha Eun-woo and his mother employed a scheme to reduce income tax by approximately 45%.
According to business information, the corporation established by Cha Eun-woo’s mother is an eel restaurant in Ganghwa, founded in October 2022 and operated by his family.
However, its standard industrial classification is listed as a management business. The company reportedly relocated from Incheon, Ganghwa to Seoul, Gangnam. Fantagio has not stated any position on the matter.
Regarding the tax evasion allegations, Fantagio stated, “The main issue is whether the corporation established by the mother is subject to actual taxation,” adding, “The matter has not been finalized or notified, and we intend to actively clarify the issues related to the interpretation and application of the law through legal procedures.”
They further added, “The artist and the tax agents intend to cooperate sincerely to ensure that the procedure is concluded swiftly,” assuring that “Cha Eun-woo promises to continue to faithfully fulfill tax declarations and legal obligations as a citizen.”
