On the October 27th broadcast of CBS Radio's 'Park Sung-tae's News Show,' tax accountant Lim Soo-jung analyzed that the likelihood of this issue leading to criminal prosecution is low. Lim stated, "The core of this controversy lies in the existence of a family corporation established for income distribution purposes." He explained that Cha Eun-woo's side allegedly set up a corporation under his mother's name to distribute income received from his agency, thereby artificially reducing tax liabilities, which is the main basis for the current taxation issue.
Particularly, regarding the corporation's registered main office being an eel restaurant in Ganghwa-do, Incheon, Lim noted that this is not a typical business setup. He added, "While establishing a corporation is not illegal, if it exists only on paper without any human or physical resources and solely for tax benefits, it becomes problematic." He emphasized that proving whether the corporation actually performed entertainment management services will be crucial in the forthcoming clarification process.
Furthermore, the involvement of the Seoul Regional Tax Office's Investigation Bureau 4, known as the 'grim reaper' of the business world, could indicate a serious view of 'intentional tax evasion.' However, Lim stressed that a large amount of tax evasion does not necessarily lead to criminal charges. He concluded by predicting that the probability of Cha Eun-woo facing legal punishment is not high, stating, "While there is room for tax evasion charges, the current circumstances suggest that it is unlikely to reach the stage of criminal prosecution."
By Yoo Ye-ji, Ten Asia Reporter ryuperstar@tenasia.co.kr