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Hallyuwood
Ji Chang-wook Denies tax evasion allegations, agrees to pay assessed penalty
Ji Chang-wook Denies tax evasion allegations, agrees to pay assessed penalty
Korean actor Ji Chang-wook has denied allegations of tax evasion but has agreed to pay a penalty imposed by the government.
An exclusive report by Korean media outlet Field News stated that Korea’s National Tax Service (NTS), equivalent to the Bureau of Internal Revenue in the Philippines, conducted an intensive tax investigation on Ji Chang-wook and imposed back taxes amounting to billions of won.
It added that the Seoul Regional Tax Office launched a special tax investigation into the 38-year-old actor last March, which ran for several weeks.
The NTS reportedly examined the timing of revenue from his domestic and international entertainment activities, the legality of settlement processes for appearance fees, and supporting documentation for expenses handled through his agency and related corporations.
The report further stated that the NTS detected indications of possible tax evasion or improper tax handling during the verification process, resulting in the imposition of back taxes.
Following the report, Ji Chang-wook’s agency, Spring Company, issued a statement denying any tax evasion, while confirming that it will pay the assessed amount of back taxes.
“First, we deeply apologize for causing concern to many people due to this matter. However, we would like to clearly state that there was absolutely no intentional omission of income or tax evasion through fraudulent means,” the agency said.
The company added that during the tax investigation, it “transparently submitted relevant documents and cooperated faithfully with the inquiry.”
However, it noted that there was a difference in interpretation with the tax authorities regarding the application of tax laws, particularly on whether income generated from the actor’s entertainment activities should be attributed to the individual or the corporation under the principle of substantive taxation.
Despite this, the agency emphasized that since his debut in 2008, Ji Chang-wook has “strictly adhered to relevant laws and procedures without any tax issues and has made the faithful fulfillment of his tax obligations his top priority.”
“Therefore, we respect the results of the National Tax Service’s investigation and plan to pay the imposed penalty without delay in accordance with relevant procedures,” it added.
The agency also vowed to review its tax and accounting management systems to prevent similar issues from arising in the future.