Cha Eun-woo takes legal action against 20 billion won tax bomb


Cha Eun-woo (real name Lee Dong-min, 29) of the group Astro has been revealed to have been fined over 20 billion won in taxes by the National Tax Service. Accordingly, Cha Eun-woo has appointed the major law firm Sejong and has begun legal action. According to a report by Hankyung.com on January 26, Cha Eun-woo is currently preparing explanations and legal procedures regarding the National Tax Service's tax assessment through Sejong. His agency Fantagio stated that they "cannot confirm" the matter, but with the appointment of Sejong confirmed, Cha Eun-woo's response is considered to have become full-scale.

The corporation operated by Cha Eun-woo's mother underwent a high-intensity investigation last year by the Seoul Regional Tax Office's Investigation Division 4 on suspicion of tax evasion. The National Tax Service judged that the corporation was essentially a paper company that did not provide actual services. It appears that Cha Eun-woo and his mother attempted tax evasion by establishing a non-substantive corporation and distributing income to apply the corporate tax rate in order to reduce income tax by as much as 45%.

In particular, suspicions of intentional tax evasion were raised due to the corporation's address being an eel restaurant run by Cha Eun-woo's mother in Ganghwa-do, the change of the corporation from a joint-stock company to a limited liability company, and the addition of real estate rental business. Tax accountant Moon Bora explained, "The National Tax Service will interpret this as 'there is something they are trying to hide.'" Accounting lawyer Kim Myung-gyu analyzed, "This is a strong signal that the National Tax Service views this not as a simple mistake but as a very serious case of intentional tax evasion."

Cha Eun-woo's side stated that they cannot accept the 20 billion won fine. They have currently applied for a tax assessment review, and Fantagio said, "The main issue in this matter is whether the corporation established by Cha Eun-woo's mother is subject to actual taxation," adding, "We plan to actively provide explanations through proper procedures regarding the legal interpretation and application issues."

Cha Eun-woo enlisted in July last year and is currently serving in the military band, and has not yet made an official statement regarding the tax evasion allegations. This case is the largest income tax fine ever involving a domestic celebrity, and Cha Eun-woo's legal response is drawing attention.

The Sejong law firm has recently handled several major cases, including the lawsuit for termination of the exclusive contract of NewJeans. Sejong recorded its highest performance last year and rose to third place in the law firm industry. Fantagio, Cha Eun-woo's agency, is also reported to have been fined 8.2 billion won.

The National Tax Service judged that Cha Eun-woo evaded taxes by distributing income through a one-person planning company established by his mother and notified him of an income tax fine in the 20 billion won range. It appears that Cha Eun-woo attempted tax evasion by establishing a corporation to avoid the highest personal income tax rate and apply a relatively lower corporate tax rate.

Attention is focused on how Cha Eun-woo's legal response will unfold and how the National Tax Service's judgment will proceed. Cha Eun-woo is currently serving in the military, with his discharge date scheduled for January 27, 2027.


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