Cha Eun-woo is suspected of "20 billion won in tax evasion" and is also suspicious of buying real estate worth 2.8 billion won [Straight.]

*This content was translated by AI.

A one-man agency of group Astro member and actor Cha Eun-woo reportedly purchased real estate worth 2.8 billion won under the name of the corporation.

MBC's current affairs and culture program "Straight," which aired on the 8th, was decorated with "One-man agency, or are you stupid if you don't?" to deal with Cha Eun-woo's alleged tax evasion of 20 billion won.

On this day, lawyer and accountant Kim Myung-kyu said, "It can be said that (the National Tax Service) has already detected considerable allegations and entered. It can be seen as a signal that it has detected and entered active tax evasion charges, not just a mistake in tax accounting," he said.

The National Tax Service recently decided that Cha Eun-woo evaded income tax by using a corporation in his mother's name, and notified him of an additional 20 billion won. This was the highest ever for celebrity tax evasion.

As the controversy grew, Cha Eun-woo, who is serving in the military, said on his SNS, "With this incident, I am reflecting on myself and deeply reflecting on whether my attitude toward tax obligations as a citizen of the Republic of Korea was strict enough." In particular, Cha Eun-woo's address of a single-person agency corporation was known to be the same as an eel restaurant located in Ganghwa-gun, Incheon, which was operated by his mother, adding to the controversy. The representative of the corporation was Cha Eun-woo's mother, Cha Eun-woo and his younger brother were listed as company directors, and his father was listed as auditor.

"If a celebrity high-income person is settled in his or her personal name from his or her agency, personal income tax is up to 49.5%, including local taxes, but if he or she is settled as a single-person company, he or she only needs to pay up to 27.5% of corporate tax," said Straight.

"As Cha Eun-woo's annual profit is estimated to reach tens of billions of won, a lower tax rate by more than 20% means a billions of won in one-year tax," he said. "If the proceeds are accumulated in corporate reserves or treated as entertainers' activity expenses and family benefits registered as employees, the tax burden can be lowered."

He said, "It is not illegal to settle profits through a one-person company, but if the company was just a paper company that does not actually work as an agency, it can be seen as paying low corporate taxes instead of high income taxes. In the end, the National Tax Service believes that it should be viewed as an evasion of income tax, he added.

In addition, 'Straight' said, "In July 2020, Cha Eun-woo Corporation bought buildings, land, and nearby forests, including charcoal-fired eel restaurants. With a total area of about 4,500 pyeong, the purchase amount was 1.75 billion won, of which 800 million won was borrowed under the name of the corporation, he said. "In February last year, the land right in front of the restaurant was purchased for 1.1 billion won under the name of the corporation." I bought three football fields of real estate, but it is unclear what kind of activities I did as an entertainment agency."

In addition, regarding the change of the corporate form to a limited liability company, he added, "Unlike a stock company, there is no external disclosure and audit obligation, making it difficult to confirm whether another real estate investment has been made and whether the cost has been handled properly."

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*This content was translated by AI.