Dispute with Tax Authorities over Attribution of Income in Single-Person Corporation

Actor Ji Changwook was ordered to pay additional taxes following a National Tax Service investigation into his single-person corporation.


Actor Ji Chang Wook. Photo by Yonhap News

Actor Ji Chang Wook. Photo by Yonhap News

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His agency, Spring Company, stated on the 2nd, "We respect the results of the investigation," but added, "There was absolutely no intentional omission of income or tax evasion by fraudulent means." The agency did not disclose the amount of the additional tax but said it would be paid immediately.


The main issue was whether the profits from his entertainment activities should be attributed to the individual or the corporation. The agency explained, "There was a difference of interpretation between the tax authorities and us regarding whether, under the substance-over-form principle, the income should be attributed to the individual or to the corporation." They added, "Since Ji Changwook's debut in 2008, we have made faithful tax payment our top priority," and stated, "We will further strengthen our tax and accounting management systems in the future."



Recently, the entertainment industry has seen a series of additional tax assessments related to single-person corporations. Previously, Cha Eunwoo, Yoo Yeonseok, and Lee Hanee were also notified of additional taxes for similar reasons.


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