Cha Eun-woo Files Tax Tribunal Appeal After Paying 13 Billion Won in Taxes: "Will Seek Legal Judgment"

After Additional Assessment Exceeding 20 Billion Won, Full Payment of 13 Billion Won Due to Duplicate Taxation
Appeals to Tax Tribunal Permitted if Tax Decision Deemed Unjust

Singer and actor Cha Eun-woo has reportedly paid an additional tax assessment of approximately 13 billion won, while also filing an appeal against the National Tax Service’s taxation with the Tax Tribunal.

A scene from the series "That Day Military Story" featuring Cha Eun-woo. Captured from the YouTube channel "KFN Plus"

According to Fantagio, Cha Eun-woo's management agency, on August 2, Cha Eun-woo submitted an appeal to the Tax Tribunal last month, arguing that the roughly 13 billion won in additional income tax imposed by the National Tax Service was unjustified. Fantagio stated, “Cha Eun-woo filed the appeal in accordance with legally prescribed procedures in order to seek a legal judgment,” but also added, “As the process is still underway, we ask for your understanding that we are unable to provide specific details at this time.”

Previously, Cha Eun-woo was subject to a high-intensity tax audit by the Seoul Regional Tax Office last year and was notified of an additional tax payment exceeding 20 billion won, the largest ever for a South Korean celebrity. The tax authorities determined that a one-person agency, established by Cha Eun-woo’s mother and signed to a service contract with Fantagio, paid Cha Eun-woo his earnings in a way that allowed a corporate tax rate—over 20 percentage points lower than the income tax rate of 45%—to be applied to his earnings. The agency was deemed a paper company established for the purpose of tax evasion.

In April, Cha Eun-woo stated, “I respect the procedures and results of the National Tax Service,” and added, “I accept this matter with even greater seriousness and depth. If there were areas I failed to oversee carefully, I take full responsibility for them.” He also said that he had paid all relevant taxes to prevent any further confusion. Subsequently, Cha Eun-woo paid the additional income tax of about 13 billion won. It is reported that some overlap in previously paid corporate and value-added taxes was acknowledged, and a refund was issued.

An appeal to the Tax Tribunal is a procedure whereby a taxpayer can contest a tax disposition if it is believed to be illegal or unjust. Taxpayers can file such claims within 90 days of knowing about or receiving a tax notice.

Cha Eun-woo enlisted in July last year and is currently serving in the military band. His scheduled discharge date is January 27, 2027. The Tax Tribunal is likely to reach a final conclusion after Cha Eun-woo’s discharge, which is expected in January of next year. If the decision is in Cha Eun-woo’s favor, he will be refunded the taxes he has paid; if his appeal is dismissed, he can file a formal lawsuit with the Administrative Court.

This content was produced with the assistance of AI translation services.