Choosing Standard Expense Rate Reporting Over Bookkeeping
Prioritizing Trust Over Tax Savings... A Zero-Risk Strategy
Broadcaster Yoo Jaeseok, often referred to as the "national MC," is being recognized as a model taxpayer, even under tax audits. During a rigorous tax audit by the National Tax Service last year, not a single case of tax evasion was found. His approach to tax payments, prioritizing transparency over tax-saving strategies, has also become a topic of discussion.
On the YouTube channel "JeolseTV," tax accountant Yoon Nagyeom recently explained, "The reason Yoo Jaeseok had a clean record during the tax audit lies in his reporting method," revealing his philosophy on tax payments. Generally, celebrities are classified as sole proprietors and hire tax accountants to file through bookkeeping. This method involves meticulously organizing income and expenses and maximizing tax deductions by recording various costs as business expenses. However, Yoo Jaeseok chose a different approach.
Choosing Standard Expense Rate Reporting Over Bookkeeping
Yoo Jaeseok opted for the estimated reporting method, applying the "standard expense rate" set by the government. This method is much simpler than bookkeeping, as a uniform expense rate is applied, but it often results in paying more taxes than necessary. Yoon explained, "If the annual income is 10 billion KRW, a celebrity using bookkeeping would pay about 2.7 billion KRW in taxes, but Yoo Jaeseok pays 4.1 billion KRW under the same conditions." She analyzed that despite the 1.4 billion KRW difference, he chose this method for multiple reasons: his sense of responsibility as the national MC, to avoid the stress of tax processing, and to eliminate the risks of tax audits.
During a tax audit, the tax office typically reviews five years' worth of records, closely checking for cases where personal expenses are reported as business expenses, family members are hired as employees and overpaid, or actual income is underreported. If caught, this can result in additional taxes and penalties amounting to hundreds of millions of KRW.
Yoon stated, "Yoo Jaeseok doesn't even need to collect supporting documents, and there is no structure for suspicion to arise. From the tax office's perspective, it's a situation where they might even need to issue a refund." She explained that he has completely eliminated the risk of tax audits.
Transparent Tax Payments Leading to Philanthropy
Yoo Jaeseok's honest tax payments are closely linked to his consistent charitable giving and good deeds. Every year, he donates hundreds of millions of KRW to various sectors of society, quietly practicing philanthropy. He has taken the lead in helping disaster victims through organizations such as the ChildFund Korea, Good Neighbors, and the Hope Bridge National Disaster Relief Association. During the COVID-19 pandemic, he donated funds to support medical staff and low-income families, and he also contributed to relief efforts during heavy rains, wildfires, and other disasters, demonstrating a strong sense of social responsibility.
Yoo Jaeseok's tax strategy and charitable activities, which have earned him nationwide affection for decades, are seen as a symbol of responsibility and transparency that goes beyond personal choice.
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