Cha Eunwoo, a member of the group ASTRO and active actor, is embroiled in controversy over tax evasion allegations involving an amount estimated at ₩20.0 billion KRW (about $13.8 million USD).
It was revealed that after a rigorous tax audit last year, Cha Eunwoo was notified by the National Tax Service to pay more than ₩20.0 billion KRW (about $13.8 million USD) in back taxes for income tax evasion.
The National Tax Service determined that company A, established by Cha Eunwoo’s mother, had a service contract with his agency Fantagio but did not actually provide any services, classifying it as a paper company. It is reported that Cha Eunwoo and his mother set up this fictitious company to reduce their income tax by distributing income so that the corporate tax rate, which is more than 20 percentage points lower than the income tax rate, would apply.
The over ₩20.0 billion KRW (about $13.8 million USD) tax penalty for Cha Eunwoo is known to be the largest amount ever levied on a domestic celebrity, attracting significant attention. Subsequently, online claims have emerged that the scale of Cha Eunwoo’s tax evasion ranks sixth among celebrities and sports stars worldwide.
According to netizens, the largest tax penalty was imposed on Chinese actress Fan Bing Bing, amounting to approximately ₩144 billion KRW (about $99.6 million USD). Following her, Chinese actor Zheng Shuang is second with about ₩54.0 billion KRW (about $37.3 million USD); Portuguese footballer Cristiano Ronaldo is third with around ₩28.0 billion KRW (about $19.4 million USD); American singer Willie Nelson is fourth with about ₩22.0 billion KRW (about $15.2 million USD); and Colombian singer Shakira is fifth with roughly ₩21.0 billion KRW (about $14.5 million USD). Cha Eunwoo is mentioned as ranking sixth.
However, the ₩20.0 billion KRW (about $13.8 million USD) penalty against Cha Eun Woo is not yet finalized. On the 22nd, his agency Fantagio issued an official statement saying, “The main issue concerns whether the company established by Cha Eunwoo’s mother is subject to actual taxation. This matter has not been finally confirmed or notified, and we intend to actively clarify the points regarding legal interpretation and application following due process.”
They added, “The artist and his tax representatives will sincerely cooperate to expedite the conclusion of this procedure. Cha Eunwoo promises to continue fulfilling his tax reporting and legal obligations faithfully as a citizen.” It is currently known that Cha Eunwoo’s side is awaiting the results of a “pre-assessment review” they requested in objection to the National Tax Service’s decision.
Cha Eunwoo is facing severe repercussions from these tax evasion allegations. Some have speculated that, since he enlisted on July 28 last year and is currently serving in the military, the notification of the tax audit results may have been purposely delayed until his enlistment date to avoid criticism—a so-called “military run.” Additionally, Cha Eunwoo was removed from advertising videos for a beauty brand featuring models and from a bank commercial.
With Cha Eunwoo expressing his intent to actively clarify the tax evasion allegations, attention is focused on whether he will release further statements amid the growing fallout.