SOURCE: '연예계 퇴출위기' 차은우, 200억 탈세 해설판 나왔다 "치밀한 설계 보여" [Oh!쎈 이슈]
Attorney and also accountant Kim Myunggyu has recently posted a 'friendly guide' breakdown of Cha Eunwoo's 20 billion KRW tax evasion allegations for the general public from an expert perspective.
He wrote, "The news about a famous celebrity being ordered to pay 20 billion KRW is currently causing a big stir. Most people might think, 'Whoa, how much money did he earn for the tax alone to be 20 billion?' As an expert (attorney + accountant), let me break down what this number actually means." He continued, "This 20 billion KRW is not just the original tax that he was supposed to pay. The actual tax is about 10 to 14 billion KRW, and the rest is a fine (penalty tax). If the National Tax Service determines that 'you intentionally lied to us' to pay less, they can add a penalty of 40% on top of the original tax. On top of that, they can also add interest for being late. In other words, 6 to 10 billion out of the 20 billion KRW is essentially the 'price for lying.'"
Last year, Cha Eunwoo underwent an intensive investigation by Investigation Bureau 4 of the Seoul Regional Tax Office. Kim Myunggyu explained, "The fact that 'Investigation Bureau 4' was involved indicates that the National Tax Service sees this as an 'intentional tax evasion' rather than just a simple mistake." He added, "Why does this happen so much to actors? It's because of the difference in IP (Intellectual Property). For idols, they are like products created by a company. Therefore, the company owns the IP (like an employee). For actors, their body is their asset. Therefore, they own their IP (like a one-man agency). Cha Eunwoo is a unique case. He started as an idol (company IP), but has grown into a top actor now (personal IP). It seems he tried a common tax-saving method used by actors (setting up a one-man agency) at the point when he felt he was doing the acting work on his own. That is where the problem started."
He continued, "Many actors set up a 'one-man agency' to pay less tax. This is because they want to ay the corporate tax rate (10-20%) instead of the personal income tax rate (45%). However, for a corporation to be legal, it must be a real company. It needs employees and an offie. What often happens is that actors register the company under their family member's name and use their parents' restaurant or their own home as he office address. When the National Tax Service sees this, they think, 'This is just a shell, isn't it? The money was actually earned by the actor.' So, they cancel the corporate tax benefits and hit them with a massive income tax bill." He emphasized, "Everyone wants to save on taxes. But if you don't want to spend money to run a real business (like hiring staff or paying for an office) and only want the tax benefits, that becomes a 'tax evasion.' This greed of'I don't want to spend money, but I want the benefits' has come back like a giant 20 billion KRW boomerang. When it comes to taxes, even famous celebrities are not an exception. Let's do things the right way."
Kim Myunggyu later posted a follow-up post titled 'Friendly Guide for Non-Experts Part 2,' comparing the case by saying, "How is this case different from Honey Lee's or Yoo Junsang's? To put it simply, it's a fight on a completely different level of seriousness."
He explained, "In past cases like Honey Lee's, the issue was 'we just have different ideas about tax laws' (there's a room for argument). But in Cha Eunwoo's case, it's more like 'you hid this on purpose' (suspicion of a crime). Why did they change the company to a 'Limited Liability Company (LLC)? The most suspicious part is changing a perfectly normal stock company into an LLC." He continued, "The reason is simple: to avoid external audits. When a stock company makes a lot of money or owns many assets, it must be audited by external accountants and disclose their financial books to the public. However, an LLC doesn't have to be audited no matter how much money it makes. In other words, there is a clear sign that they switched to 'dark mode' because they don't want to show their financial books to the others. This is why the National Tax Service suspects they were 'hiding things on purpose.'"
However, Kim Myunggyu cautioned that Investigation Bureau 4 is not always right and that we should watch this case until the end. He emphasized that for now, this case is still just an 'allegation.'
Kim Myunggyu said, "Is there a possibility that Investigation Bureau 4 got it wrong? Of course. They are not right 100% of the time. In fact, in the first half of the year, they investigated a certain asset management company but found no evidence of tax evasion. So, the case was closed as 'not guilty' (no charges). If the investigation into Cha Eunwoo's case also fails to prove that he 'meant to hide it,' it could end with just a simple tax payment. For now, it's still at the 'allegation' stage."
However, he mentioned a lot of evidence, pointing out, "The traces are too clear. It's hard to be positive because the signs of a 'carefully designed plan' are vary specific." He noted, "They changed the company to a 'LLC' to avoid external audits. They also 'laundered' the address by registering the business at an eel restaurant in Ganghwa Island instead of Gangnam to avoid paying higher taxes. This looks like an 'organized and planned setup' that involved experts, rather than just a simple mistake."
Finally, he stated, "The conclusion (the main point to watch) is that the core of this case is not 'how much more tax will be paid,' but rather 'whether the intent to hide information is proven.'" He also said, "If these plans are judged as intentional tax evasion, it's a serious matter that could lead to not only a record-breaking fine but also a criminal report to the prosecutors. The line between simply saving on taxes and illegally avoiding taxes is now disappearing."
Meanwhile, the National Tax Service has determined that Company A, established by Cha Eunwoo's mother, is a paper company. Although the company signed a contract with Fantagio, the National Tax Service believes that it did not actually do any real work. It is reported that the authorities sees this as a trick. They believe Cha Eunwoo and his mother set up this fake company to split his income and avoid the high 45% personal income tax. By doing this, they were able to pay the corporate tax rate, which is more than 20% lower. The fine of over 20 billion KRW is the largest amount ever given to a celebrity in South Korea.
However, the 20 billion KRW fine for Cha Eunwoo has not been finalized yet. On the 22nd, Fantagio stated, "The main issue in this matter is whether the company established by Cha Eunwoo's mother is legally required to pay these taxes. Nothing is official or finished yet. We plan to actively clarify the issues regarding legal interpretation and application through lawful procedures." Fantagio continued, "The artist and his tax representatives will faithfully cooperate so that the procedure can be concluded quickly. Cha Eunwoo promises to continue to faithfully fulfill his tax filings and legal obligations as a citizen of the Republic of Korea."
Currently, Cha Eunwoo’s side is reportedly waiting for the results of a 'pre-assessment review' they requested in objection to the National Tax Service’s decision.
