Cha Eun Woo's management label Fantagio has come forward with an official statement in response to earlier media outlet reports, raising suspicions that the star evaded as much as 20 billion KRW (~ 13.6 million USD) in taxes.
Based on an intensive audit conducted by the Seoul Regional Tax Office prior to his enlistment in July of last year, Cha Eun Woo was ordered to pay unpaid taxes amounting to ~20 billion KRW. Cha Eun Woo's side then proceeded to request a reevaluation, questioning different interpretations of existing tax laws.
In light of the issue become publicized on January 22 KST, Cha Eun Woo's label Fantagio stated,
"Hello, this is Fantagio.
We would like to convey our official stance on the recent reports of our artist, Cha Eun Woo, undergoing an intensive tax audit.
The core issue of this matter lies in whether or not the company set up by Cha Eun Woo's mother is eligible for taxation. The suspicions raised have not been confirmed nor declared true, and through the appropriate legal measures, we plan to identify any subjective interpretations of the laws and justify the decisions made.
In this regard, the artist and his accountant fully intend on cooperating with the investigation so as to resolve the matter as quickly as possible.
Cha Eun Woo promises to earnestly fulfill his duties to report his earnings as a citizen of the Republic of Korea.
Thank you."
Despite Fantagio's statement, tax industry insiders refuted, "Based on reasons such as the fact that the address to the company established by Cha Eun Woo's mother is in Ganghwado (an island in Ganghwa County, Incheon), it is difficult to conclude that this company actually performs services related to the entertainment industry. The only such services it may have performed include transporting the artist on several foreign vehicles registered as owned by the company. There is no evidence that this company contributed additional services that Fantagio could not fulfill for the artist."
Meanwhile, the issue is currently garnering attention as potentially the largest amount of unpaid tax by a single celebrity ever.
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