[TV Report = Reporter Choi Min-jun] A former National Tax Service investigator pointed out the core of the ‘suspicion of tax evasion worth 20 billion won’ surrounding Cha Eun-woo and expressed his disappointment with the way they responded. While the tax rate structure and the substance of the corporation are issues, the possibility of criminal prosecution is being discussed depending on the nature of the case, leading to ongoing controversy. On January 31st, a video titled “‘20 billion is not the end.’ A former National Tax Service investigator reveals the essence of Cha Eun-woo’s tax evasion case” was released on channel ‘CIRCLE 21’. In the video, Jeong Hae-in, former National Tax Service investigator and executive director of a tax firm, explained, “The essence of this issue is the question of whether profits that should have been reported as personal income were treated as corporate income. The highest personal income tax rate is about 50%, while corporate tax is around 20%, so in the eyes of the National Tax Service, the question is bound to arise, ‘Why did you pay only 20% of the income that should have been 50%?’” He added that the investigation of individual celebrities was originally under the jurisdiction of Bureau 2, but if the amount increases, Bureau 4 may become involved. Executive Director Jeong said, “The exact amount of profit is unknown, but if it is more than 100 billion won, it is an area where a high-intensity investigation is possible.” He added, “It is not exact, but Cha Eun-woo’s profit amount may be more than 100 billion won. That is highly likely.” He continued, “If it were a normal corporation, its employees, workplace, and business activities should be clear, but if it is a ‘shell corporation’ without substance, it may be seen as a means to reduce personal income tax.” He emphasized, “In this case, there is a possibility that it may be judged closer to tax evasion rather than tax saving.” There was also mention of additional taxes and the possibility of prosecution. Executive Director Jeong said, “General under-reporting is subject to a 10% penalty, but unreasonable under-reporting where intentional underreporting is subject to a 40% penalty,” and added, “If the 4th investigation bureau was involved, it could be an investigation with a complaint in mind. If it leads to a complaint, it is difficult to rule out the possibility of a criminal record.” In particular, he said, “The way you respond is important,” and added, “Acknowledging a mistake early on and apologizing can be a way to reduce image risk. If the law firm’s response is highlighted, the public may perceive it as ‘denying tax evasion.’” Cha Eun-woo was investigated by Investigation Bureau 4 of the Seoul Regional Tax Service in the spring of last year, and it is known that he received a notice of additional collection exceeding 20 billion won from the National Tax Service. Among the fines notified to celebrities, it is evaluated as an unusually large amount. A similar controversy is spreading to another actor. Recently, Kim Seon-ho was also caught up in suspicions of tax evasion during the settlement process through a one-person corporation. The agency drew a line, saying, "We complied with legal and tax procedures," but controversy continues as it became known that the settlement money was received through a corporation during the time of the former agency. With the next film ahead, attention is focused on how the tax issues surrounding the two actors will affect the industry's overall practice of using celebrity corporations. Reporter Choi Min-jun cmj@tvreport.co.kr / Photo = TV Report DB, Channel ‘CIRCLE 21’