Cha Eunwoo, a South Korean singer, actor and member of boy band ASTRO, is under investigation for alleged tax evasion after routing income through a company set up by his mother. The Seoul Regional Office of the National Tax Service (NTS) is reportedly probing more than 20 billion won (about HK$106 million) in unpaid taxes, according to Korean media.
According to reports, Cha’s mother established a company, dubbed A Company, which signed a “support service contract” with Cha’s management firm, Fantagio, to handle his entertainment-related income. However, tax authorities claim the firm provided no real services and functioned as a shell company to reduce Cha’s personal income tax liability, which can reach 45 percent.
Fantagio was fined 8.2 billion won (around HK$43 million) last August for issuing false tax receipts for A Company. Cha and his mother have requested a pre-assessment review to challenge the tax office’s decision, saying the company was legally registered and provided legitimate management services amid frequent changes in Fantagio’s leadership.
Fantagio said the case has yet to be finalized by the tax authorities.
In a statement on Thursday, the agency said: “We are fully cooperating with the investigation and hope the matter will be resolved soon. Cha will continue to comply with all tax obligations honestly.”
