Cha Eun Woo Faces Tax Evasion Allegations

South Korean actor and singer Cha Eun Woo, who enlisted for mandatory military service last July, is now facing allegations of large-scale tax evasion.

The Seoul Regional Tax Office conducted an intensive investigation last spring. Authorities allege that Cha Eun Woo funneled income through a shell company set up under his mother’s name to reduce his tax burden, totaling over 20 billion Korean won in back taxes and accrued penalties.

Reports reveal that the company signed a contract with Cha Eun Woo’s agency Fantagio to provide “support services” for his entertainment activities. However, tax officials determined that the company had no actual business operations and existed solely to reclassify Cha’s personal income as corporate revenue, thus allowing him to avoid the top 45 percent personal income tax rate and instead pay the lower corporate tax.

Cha Eun Woo’s representatives firmly denied any wrongdoing. They claimed the company was established by his mother to manage his affairs amid frequent CEO changes at Fantagio, which allegedly disrupted his career stability. A formal challenge against the tax authority’s ruling has been filed and the case is currently under review.

Source: [1]

This article is written by Huynh for JayneStars.com.