Prosecution Charges JW JoongWai Pharmaceutical for Concealing Rebate Costs and Evading 1.5 Billion KRW in Corporate Tax
78 Billion KRW in Unclear Expenses Included as Deductible
The prosecution has indicted JW Pharmaceutical and its CEO on charges of evading over 1.5 billion KRW in corporate taxes by accounting rebate expenses under other categories such as company welfare expenses.
According to the legal community on the 27th, the Tax Crime Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jin-yong) filed non-custodial indictments against JW Pharmaceutical and CEO Shin Young-seop on the 26th for violations of the Act on Aggravated Punishment of Specific Crimes (tax-related) and the Tax Penalty Act.
The prosecution has determined that JW Pharmaceutical included 7.8 billion KRW of unclear expenses, including rebate costs, as deductible expenses, thereby evading 156 million KRW in corporate taxes from 2016 to 2018. It is reported that JW Pharmaceutical used credit card receipts that had been canceled or belonged to individuals who were not employees to disguise rebate expenses as welfare expenses and then included them as deductible expenses.
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Previously, the Seoul Western District Prosecutors' Office indicted JW Pharmaceutical on charges of providing rebates, and the Seoul Central District Prosecutors' Office indicted doctors who received rebates from JW Pharmaceutical.
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