Cha Eun-woo denies 20 bln won tax evasion allegations, vows to clarify claims

▲ Singer-actor Cha Eun-woo is seen in this photo provided by Fantagio. (PHOTO NOT FOR SALE) (Yonhap)

SEOUL, Jan. 22 (Yonhap) -- Singer and actor Cha Eun-woo, who is currently serving in the military, has denied allegations of large-scale tax evasion, with his agency saying the matter has not been finalized and that it will actively explain its position.

Fantagio, Cha’s agency, said Thursday it would “actively clarify the issues related to legal interpretation and application through due process” and “faithfully cooperate so the procedures can be concluded swiftly.”

Earlier in the day, a media outlet reported that Cha had been notified by the National Tax Service of an additional income tax assessment exceeding 20 billion won (US$200 million), alleging that he benefited from a lower corporate tax rate by signing a management service contract with a company established by his mother.

Fantagio countered that “the key issue is whether the company founded by Cha Eun-woo’s mother qualifies as a substantive taxable entity,” adding that “the matter has not been finally confirmed or formally assessed.”

The agency also said, “Cha Eun-woo pledges to continue faithfully fulfilling his tax reporting and legal obligations as a citizen.”

Cha enlisted for mandatory military service as an active-duty Army soldier in July last year.

(C) Yonhap News Agency. All Rights Reserved