Tax Scandal: What You Need to Know About Cha Eun-woo’s Alleged Tax Evasion

Singer and actor Cha Eun-woo. Photo courtesy of Fantagio

The Korean Taxpayers Alliance has called for a police investigation into the leak of information regarding singer and actor Cha Eun-woo’s tax audit.

On October 10th, the Taxpayers Alliance filed a complaint with the National Investigation Headquarters of the National Police Agency. They are seeking punishment for the unidentified tax official who leaked the information and the journalist who first reported it.

The Alliance argues that these actions violate both the Personal Information Protection Act and criminal laws concerning the disclosure of government secrets.

According to the Alliance, the accused have breached the confidentiality principles guaranteed by the National Tax Basic Act and infringed upon taxpayers’ rights by unlawfully disclosing specific tax information related to Cha Eun-woo’s audit. They emphasized that it’s inappropriate for tax information to be leaked and for individuals to face social stigma simply due to their celebrity status.

The Alliance clarified that their action is not about defending any specific individual. Rather, it’s an effort to establish public trust that tax information will remain confidential under all circumstances.

Earlier, on October 3rd, the Alliance criticized media reports alleging Cha Eun-woo’s tax evasion as character assassination. They argued that if Cha Eun-woo were to abandon his right to appeal due to negative public opinion, it would violate taxpayers’ rights to contest unfair taxes and receive refunds.

The Alliance also contends that labeling the corporation established by Cha Eun-woo’s mother as a “paper company” violates the constitutional principle of presumption of innocence. They stress that the legitimacy of the corporation should be determined by the court, and that this matter should be resolved through proper administrative and judicial procedures.

Recent reports claim that Cha Eun-woo received notice from the National Tax Service regarding the collection of over 20 billion KRW (approximately 15 million USD) in income tax, sparking allegations of tax evasion. In response, Cha Eun-woo took to social media to offer a sincere apology and pledged to cooperate fully with ongoing tax-related procedures.

This isn’t the first time the Taxpayers Alliance has filed complaints related to celebrity tax evasion reports. In 2011, they submitted a complaint to prosecutors regarding alleged tax evasion by celebrities and 32 tax officials. However, the case was dismissed the following year due to insufficient evidence.