On February 2, lawyer and accountant Kim Myung-gyu wrote on his personal social media: “Before the issue of Cha Eun-woo’s 20 billion won tax revaluation had even settled down, allegations surfaced involving Kim Seon-ho of the same agency. Since it is also a single-member or family company, an alarm bell is likely to be raised across the entertainment industry for now.“
He continued: “Suspicions arose that a company was set up at his home address, that company cards were used for living expenses and that false salaries were paid to his parents, listed as managers. The agency said: “It was not tax evasion: it was created for theatrical activities, but since there were no commercial activities, they are closing it,” but this explanation is quite dangerous. It seems like a self-inflicted mistake.“
According to Kim Myung-gyu, if there really were no business activities, there would be no business expenses. If you used company cards and paid wages to your parents during a year in which the business ceased, that money would be classified under tax law as non-business related expenses (temporary advances). In that case, the agency itself opened the door to interpreting the situation as misappropriation or breach of trust through the private use of company funds. He explained: “Temporary advances aren’t simply limited to the “you borrowed the money, so pay it back” level. If the money went out without actual business activity, the National Tax Service will treat it as a bonus paid to the representative and will impose taxable income accordingly.“
He also added: “Closing a business does not erase the data and records held by the National Tax Service. Conversely, the shutdown period may be an ideal opportunity for tax authorities to carefully review fund flows. An explanation like “we closed because we weren’t working” might actually be an invitation that says “please come investigate.”“Continuous:”Ultimately, the key is substance. They must adequately explain whether real planning of the theater took place through planning documents, meeting records and work logs, and whether the parents actually did real work. If they don’t, this explanation could turn suspicion of tax evasion into an embezzlement and breach of trust dispute. I’m worried that the agency may make a complacent judgment, thinking, “Surely they won’t look at the matter that far.”“
Kim Seon-ho is currently accused, like Cha Eun-woo, of evading taxes by running a family company. It was reported that he registered a performance planning company at his home address in Yongsan-gu, Seoul, and listed his parents as internal director and auditor. Allegations also surfaced that after paying salaries to his parents, the money was transferred back to him, further escalating the controversy.
In response, Fantagio said on February 1: “The aforementioned single-member company was established in the past for theatrical production and related activities and was absolutely not created to intentionally evade or evade taxes”, adding“After the move to Fantagio, actual activity was not carried out for over a year and the company is currently being closed down in accordance with relevant laws and procedures.“
Sources: Nate
