SEOUL, Aug 2 — Cha Eun-woo has appealed against a 13 billion won (RM36.8 million) tax bill after paying the disputed amount in full, with the South Korean star potentially entitled to a refund if he succeeds.
The popular Astro member and K-drama actor is challenging the tax assessment while carrying out his compulsory military service, South Korean entertainment outlet OSEN reported.
His agency, Fantagio, confirmed today that Cha had formally lodged an appeal.
“Cha Eun-woo has filed a tax appeal in accordance with legally prescribed procedures to receive a judicial review,” the agency said.
Cha underwent an intensive audit by the Seoul Regional Tax Office’s Investigation Division 4 in July last year, shortly before enlisting in the military.
He was reportedly initially notified of a tax reassessment exceeding 20 billion won after officials examined income channelled through a company established by his mother.
The National Tax Service reportedly concluded that Cha had distributed some of his earnings through the company, referred to as Company A, allowing the income to be taxed at lower corporate rates rather than higher personal income tax rates.
It also reportedly determined that the firm had not provided substantive services and regarded it as a paper company.
Fantagio disputed the finding, arguing that the company was formally registered as a public arts and culture planning business, and requested a pre-taxation review.
As scrutiny over the case grew, Cha said he had paid the full reassessed amount of 13 billion won while continuing with the remaining procedures.
“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,” he said at the time.
Cha has now asked the Tax Tribunal to overturn the assessment.
If the tribunal rules in his favour, he could receive a refund of the taxes paid. If the appeal is rejected, he may pursue the matter in an administrative court.
A ruling is reportedly expected after January next year, following his discharge from military service.
Fantagio declined to provide further details while the case remains under review.
“As the process is ongoing, we regret that we cannot provide specific details at this time,” the agency said.
Cha enlisted in July last year and is currently serving in the South Korean Army Band.
