Cha Eun-woo contests W13b tax bill; similar cases against Lee Ha-nui, Yoo Yeon-seok draw scrutiny

Singer and actor Cha Eun-woo, who paid roughly 13 billion won ($9.02 million) in back taxes, has filed a formal appeal with the Tax Tribunal challenging the National Tax Service's assessment. The move draws fresh attention to similar cases involving actors Lee Ha-nui and Yoo Yeon-seok, who were hit with comparable tax bills and have also filed appeals.

According to Fantagio, Cha filed the appeal with the Tax Tribunal last month, arguing that the roughly 13 billion won in income tax levied by the National Tax Service was unjust.

"Cha Eun-woo filed the appeal through the legally prescribed process in order to receive a legal determination," Fantagio said. "As the proceedings are currently underway, we ask for your understanding that we are unable to share specific details."

A tax tribunal appeal allows taxpayers to contest a tax assessment they believe to be unlawful or unjust by filing a claim with the Tax Tribunal.

Taxpayers may file within 90 days of learning of a tax assessment or receiving a tax notice.

The National Tax Service determined that the one-person agency run by Cha's mother was a shell company that did not actually provide entertainment management services to Cha, and that the arrangement had been used to reduce his tax liability. Cha's side had filed a pre-assessment review but it was rejected. He subsequently paid the full 13 billion won after adjustments, including for double taxation.

With Cha's appeal now filed, attention is turning to the cases of Lee Ha-nui and Yoo Yeon-seok, who were assessed and contested similar bills on comparable grounds. Lee was notified of a tax bill of about 6 billion won and Yoo of about 7 billion won, and both have filed appeals. All three cases center on the same core issue: alleged tax evasion through a one-person agency arrangement. Lee's case had initially been expected to conclude in April, but observers say the Tax Tribunal is weighing its decisions carefully as a string of high-profile entertainers have filed appeals over similar arrangements.