According to South Korean entertainment outlet OSEN, K-pop star and actor Cha Eun-woo has formally appealed a 13 billion won (approximately RM36.8 million) tax bill after paying the disputed amount in full. The Astro member is challenging the tax assessment from his military base, where he is currently carrying out his compulsory service in the South Korean Army Band.
Fantagio Confirms Formal Tax Appeal Filing
According to his agency, Fantagio, the star lodged the formal appeal to initiate a judicial review. “Cha Eun-woo has filed a tax appeal in accordance with legally prescribed procedures to receive a judicial review,” the agency said in a statement. The appeal asks the Tax Tribunal to overturn the assessment.
If the tribunal rules in his favor, Cha could receive a full refund of the taxes paid. If the appeal is rejected, the star may pursue the matter further in an administrative court. A final ruling is expected after January next year, following his discharge from the military.
Investigation Details and Corporate Tax Rate Disputations
The dispute stems from an intensive audit conducted by the Seoul Regional Tax Office’s Investigation Division 4 in July last year, just before Cha enlisted. According to reports, officials initially notified the actor of a tax reassessment exceeding 20 billion won after reviewing income channeled through a company established by his mother, referred to as Company A.
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The National Tax Service concluded that earnings distributed through Company A allowed income to be taxed at lower corporate rates instead of higher personal income tax rates. Tax officials also determined the firm operated as a paper company without providing substantive services.
Fantagio strongly disputed those findings. The agency argued that the firm was formally registered as a public arts and culture planning business and requested a pre-taxation review prior to the full assessment.
Full Payment Made to Prevent Confusion
As public and regulatory scrutiny intensified, Cha chose to settle the reassessed amount completely while continuing his legal options. “We respect the National Tax Service’s procedures and results, and to prevent further confusion, we have fully paid the relevant taxes. We will diligently follow the remaining procedures,” Cha said at the time of the payment.
Fantagio has declined to share additional specifics while the case remains active. “As the process is ongoing, we regret that we cannot provide specific details at this time,” the agency noted.
Frequently Asked Questions
Q: Why was Cha Eun-woo issued a tax reassessment?
A: The National Tax Service concluded that earnings channeled through his mother’s company avoided higher personal income tax rates by utilizing lower corporate tax rates.
Q: Has Cha paid the disputed 13 billion won bill?
A: Yes, according to Fantagio, Cha paid the full 13 billion won reassessment while proceeding with his formal appeal to the Tax Tribunal.
Q: When is a final ruling expected on the tax appeal?
A: A ruling from the Tax Tribunal is anticipated after January next year, following the conclusion of his military service.
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