Cha Eun-woo, Accused of Tax Evasion, Seen at Military Band Event After Paying 13 Billion Won in Taxes

Singer and actor Cha Eun-woo, who has been embroiled in tax evasion allegations, was seen participating in a military band event.

On April 29, multiple social media platforms posted photos showing Cha Eun-woo attending a military band event held on April 23. Cha Eun-woo enlisted in the Army on July 28 last year, completed basic military training, and is currently serving in the Ministry of National Defense’s military band.

Photos of singer and actor Cha Eun-woo, who is suspected of tax evasion, serving in the military have been captured. Social media

원본보기 아이콘

The released photos show Cha Eun-woo, dressed in a suit, standing in front of orchestra members and saluting the audience.

In January, reports emerged that Cha Eun-woo received a notice from the National Tax Service (NTS) regarding an additional income tax assessment exceeding 20 billion won, which led to tax evasion allegations. The NTS reportedly concluded that Cha Eun-woo, his agency Fantagio, and an entity called Company A, established by his mother Ms. Choi, had entered into a false service contract to distribute income. As a result, he was taxed at the corporate income tax rate, which is more than 20 percentage points lower than the maximum personal income tax rate of 45%. Company A, registered in Ganghwa Island, was suspected of being a "paper company" that did not provide actual management services.

As the controversy grew, Cha Eun-woo stated, "If I were not serving in the military, I would want to personally visit and sincerely apologize to everyone who may have been affected by this incident," adding, "I will faithfully comply with all upcoming tax-related procedures and humbly accept the final decision of the relevant authorities, taking full responsibility as required."

Cha Eun-woo later released an additional statement, saying, "I respect the procedures and outcome of the National Tax Service and, to prevent further confusion, I have paid all related taxes. I will also diligently comply with the remaining procedures." He further explained, "I established the company in the process of preparing to continue my career more stably during a period of changes and uncertainty. Looking back now, I realize there were aspects I did not examine thoroughly in that process, and the responsibility for this lies with me, not with my family or my agency."

Recently, it has been reported that Cha Eun-woo has fully paid the additional tax of 13 billion won. On April 9, his agency Fantagio announced, "We have been informed by our accountant that a portion of the payment will be adjusted through the National Tax Service’s refund process, and the actual burden is expected to be around 13 billion won." The agency further stated, "With the full payment of personal income tax, we are now proceeding to claim refunds for portions of the previously paid corporate tax and value-added tax that were subject to double taxation."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.