Tax planning or tax evasion? Cha Eun-woo’s case centers on shell company

Singer and actor Cha Eun-woo’s alleged 20 billion won tax dispute (about $15 million) is now being closely examined through a technical lens to see whether a company from which he derived income had real business substance or existed only on paper. The issue was discussed on the CBS Radio program “Park Sung-tae’s News Show” on the 27th, where tax accountant Lim Soo-jung looked at core legal questions surrounding the case. According to Lim, the National Tax Service determined that a corporation registered at a restaurant location in Ganghwa Island received income that should have been paid directly to Cha. “The tax authority’s position is that a corporation was established without real business activity and income belonging to Cha Eun-woo was funneled through this entity,” Lim said, characterizing it as a potential shell company. “There is no issue if a corporation is properly established with personnel and facilities and actually provides services,” she said. “The central question here is whether the company in question had real substance or existed only on paper.”Weiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times