Actor Jang Geun-suk found to have hidden profits overseas + agency charged with fraud and tax evasion

Article: Actor Jang Geun-suk hid profits overseas, agency loses lawsuit filed opposing tax levy

Source: Kyunghyang

Actor Jang Geun-seuk's agency has been found guilty of fraud and tax evasion.

On the 20th, Judge Jeong Sang-gyu of the Seoul Administrative Court ruled that Jang Geun Seuk's agency A lost the countersuit filed to cancel 300 million won fine for hiding 5.3 billion won overseas.

Company A that actor Jang Geun Seuk belongs to is run by his mother B who is the largest shareholder. His mother was the CEO of the company until 2012. The Japanese National Tax Service notified the Korean National Tax Service that the actor had omitted a tax return to Korean tax authorities during a tax investigation into a Japanese company that was acting on behalf of Jang Geun-suk in Japan.

As a result, the Seoul Regional Tax Office conducted a tax investigation into his agency and discovered that his agency had deposited 5.3 billion won of revenue the actor earned from his Japanese activities into his mother's overseas account in Hong Kong from January to April 2012 but did not list the income in the company's books. When the tax investigation began, the company belatedly adjusted the books to report the income under the guise of "in house reserves" and paid an additional tax claiming they had simply "under reported" the amounts.

However, the Gangnam Tax Office determined the act is considered an "outside outflow arising from fraud or other illegal acts" and fined the company an additional 320 million won in corporate tax. But his agency refused to pay the fine and filed a counter suit claiming "it was illegal for them to impose additional taxes on the company for simply under reporting reserves."

However, the court judged that "considering corporate profits were paid to offshore accounts that are difficult for the National Tax Service to track down making it hard for the National Tax service to impose taxes on their hidden profits, those acts are considered fraud and tax evasion."

Regarding claims by Jang Geun Seuk's agency that "it was illegal to get fined an additional 320 million won on revised profits," the judge stated, "the company only revised the books and paid additional tax on the missing income only after the tax investigation began." 

As a result, the judge sentenced Jang Geun Seuk's mother B to 2.5 years in prison with 4 years probation and a fine of 3 billion won for tax evasion through January last year for under reporting billions of won in profits. 

1. [+1,932, -14] But his income in 4 months is at least 5.3 billion won...a measly 300 million won fine and he's putting up such a fuss? What a waste of our taxes tsk
2. [+1,209, -34] Ban him from appearing on TV. Seriously can't stand ba$tards like him with rotten brains. Foreign celebrities seem to donate an awful lot but our Korean celebrities are too busy spending all their money buying up real estate. 
3. [+749, -15] What's even worse is he can easily earn another 5.3 billion won but doesn't want to pay a mere 300 million? He has a pattern of habitual tax evasion and not to mention that he got out of active duty by claiming he had bipolar disorder and got reservist duty instead. He's the absolute worst of the worst! He wants to earn all the money but wants nothing to do with the duties that come with it. Kick him out of the industry!
4. [+552, -10] Kick him out of all broadcasts! There are lot of more people lined up to take his place. There are too many problematic people in the industry already, we need to start kicking them out. Drunk drivers, scammers, gamblers, druggies, r*pists...kick them all out! There are way more decent people with clean pasts that deserve these jobs. 
5. [+64, -1] I was a part-timer at a broadcast station and remember seeing Jang Geun-suk in person. He acted like he was some big shot in the industry. Nothing has changed even now. He's the same rude ba$tard that doesn't greet his seniors..
6. [+58, -1] This is why we need to fix our laws. If this was US, he would've been hit with a strict judgement. Punish him strongly, please.. when will Korean courts judge properly??
7. [+38, -3] Why is he still being given work in the industry??
8. [+34, -1] Asia's prince? More like tax evasion prince..
9. [+33, -2] Both him and his parents are infamous for having zero morals or character기
10. [+21, -0] Kick out this trash!!!