Korea's National Tax Service (NTS) is investigating whether some celebrities unfairly used loopholes to avoid paying taxes. The tax probes follow a vow by the newly appointed National Tax Service Commissioner Lim Hwan Soo to end the tax-dodging practices of the wealthy.
It was recently rumored that Jang Geun Suk, 27, was one of the celebrities they were investigating. He was rumored to have underreported his earnings in China by up to $2 million. However, Jang Geun Suk's agency Tree J Company stresses that the NTS is not personally investigating the actor.
"The report claiming that Jang Geun Suk is being investigated for tax evasion is completely false, and we express our apologies over worrying his fans."
In a press release Tree J Company reps said they have not heard from the NTS and would fully cooperate with if them if they did.
Company reps told Star News on Sept. 2, "If we had heard from them, we would have responded right away. We are very taken aback. We're only aware that the National Tax Service is currently investigating entertainment agency "A."
Jang Geuk Suk and more than 20 other Hallyu stars have contracts with this agency to handle their Chinese appearances.
It may be a case where a celebrity is implicated because of the inadequate accounting practices of those who handle their money. That's what happened to actress Song Hye Kyo. She recently had to pay back taxes and a penalty after it was determined that her accountant had claimed deductions for which there was no supporting paperwork. The actress paid what she owed, and although she personally made no mistake except to trust her accountant, she apologized repeatedly to the public. Then she fired her accounting firm.
Singer and actor Rain is another celebrity who recently had to deny rumors of tax evasion. According to his agency Cube DC, "Rain's involvement in the tax evasion investigation is completely false, and we regret that this had to happen. All of his appearances are bound by legal contract, and all performance fees are paid to Cube DC's official bank account."
Cube DC says they filed taxes for all of Rain's activities and they are willing to supply any documentation that is required.
"Activities in overseas countries were carried out after signing legal contracts. We would like to clarify that there is no tax evasion, and we will need to confirm details to clear his name."
According to the Korea Herald, several celebrities are facing further investigation and most are said to own property in Seoul's upscale Gangnam district.
As the list by the National Tax Service supposedly targets wealthy celebrity landowners, there is some speculation as to who the other celebrities might be. According to Chaebul.com, the wealthiest landowners include SM Entertainment CEO Lee Soo Man, YG Entertainment CEO Yang Hyun Suk and singer Seo Taiji, as well as actress Jun Ji Hyun and actor Song Seung Hoon.
