 |
Actor Cha Eun-woo. (Photo: Yonhap News) |
[Alpha Biz= Paul Lee] Cha Eun-woo, member of the boy group ASTRO and actor, has been implicated in tax evasion allegations. On January 22, a media report stated that the National Tax Service (NTS) has notified Cha of additional tax assessments exceeding 20 billion KRW (~$15 million USD) for income tax and other taxes.
According to the report, Cha was subject to an intensive investigation by the Seoul Regional Tax Office in the first half of last year. Despite having an official management agency, Cha and his family allegedly established a separate family-run company and entered into service contracts with his management agency, using the arrangement to reduce taxes unlawfully. Income generated from Cha’s entertainment activities was reportedly split among Fantagio (his management agency), the family-owned company, and Cha himself.
The NTS determined that the family-run company functioned as a “paper company” providing no actual services. By channeling income through this entity, Cha and his mother allegedly reduced the effective tax rate by more than 20 percentage points compared to the standard income tax rate. Ultimately, the NTS concluded that the benefits accrued to the family company effectively belonged to Cha, resulting in unpaid income taxes exceeding 20 billion KRW.
Cha Eun-woo enlisted in the South Korean army in July last year for active military service.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
