"Not a Finalized Matter Yet"
"Will Actively Clarify Legal Interpretation Issues"
The agency representing actor Yoo Yeon-seok, who has been embroiled in a "7 billion won tax evasion" controversy, explained that the issue "arises from differences in interpretation and application of tax laws between the tax representative and the tax authorities."
On the 14th, Yoo Yeon-seok's agency, King Kong by Starship, released an official statement saying, "We are currently in the stage of awaiting notification from the tax authorities after a pre-tax assessment," and added, "This matter has not been finally confirmed or notified. We plan to actively clarify the issues related to legal interpretation and application through proper procedures."
The agency explained, "This issue arose because the tax authorities interpreted the income of the corporation, which Yoo Yeon-seok has operated for the past five years to develop and produce YouTube content as an extension of his entertainment activities and to run additional businesses and the food service industry based on that, as subject to personal income tax rather than corporate tax. Consequently, personal income tax was imposed on parts that the tax representative had already reported as corporate revenue."
They emphasized, "Yoo Yeon-seok has always prioritized fulfilling his tax obligations faithfully and will continue to thoroughly comply with relevant laws and procedures as a responsible citizen."
Earlier, CBS No Cut News reported that the National Tax Service conducted an intensive tax investigation on Yoo Yeon-seok and recently notified him of tax imposition amounting to about 7 billion won, including income tax.
Like actress Lee Ha-nee, Yoo Yeon-seok established the entertainment agency Forever Entertainment, where he serves as CEO. The National Tax Service reportedly launched a tax investigation after identifying tax issues during this process. Lee Ha-nee recently faced allegations of tax evasion and embezzlement amounting to about 6 billion won but stated that she respected the tax authorities' decision and paid the full amount of taxes.
Lee Ha-nee's agency explained, "During the irregular integrated tax investigation of corporate business artists (investigation period of 5 years), even though Lee Ha-nee paid corporate tax on her entertainment income as corporate revenue, the tax authorities interpreted that such income should not be subject to corporate tax but rather personal income tax. Accordingly, additional personal income tax was imposed, and Lee Ha-nee paid the full amount."
Yoo Yeon-seok reportedly filed a "pre-tax assessment" appeal in January, disputing the National Tax Service's notification. The pre-tax assessment is a procedure in which the tax authorities notify the taxpayer of the intended tax imposition before issuing a formal tax notice based on the tax investigation results, allowing the taxpayer to raise objections and the tax authorities to verify the appropriateness of the taxation.
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