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Cha Eun-woo Faces 'Paper Company' Allegations as Tax Agency Investigates

Cha Eun-woo Faces 'Paper Company' Allegations as Tax Agency Investigates
Cha Eun-woo is facing legal issues due to allegations of tax evasion amounting to 20 billion won.
Ganghwa County confirmed potential legal violations during their investigation of the company represented by his mother.
Cha Eun-woo has engaged a law firm to contest the tax assessments from the National Tax Service.

[TV Daily, reporter Choi Hana] Cha Eun-woo is now engulfed in a significant crisis due to allegations of tax evasion totaling 20 billion won. This situation intensifies increasing pressure on his family corporation, following actions by the National Tax Service and local investigations launched by Ganghwa County.

According to a report by Sports Kyung Hyang on January 28, Ganghwa County recently completed its inspection of Company B, a limited liability entity where Cha's mother, Ms. A, serves as the representative. This company is linked to a restaurant previously operated by Cha's parents, raising questions about its actual activities.

The authorities confirmed through a visit that the business had not registered for necessary cultural and artistic planning operations. After conducting legal reviews, Ganghwa County is currently discussing potential charges, significantly increasing the tension for Cha Eun-woo as the allegations expand beyond mere tax collection issues.

This incident involving Cha Eun-woo goes beyond mere tax issues and delves into the transparency of corporate operations. If a company is found not to exist or operate legitimately, it could pose significant legal challenges and damage the credibility of the entertainment industry, threatening the positive image that Cha has cultivated.

Moreover, the choice of a limited liability company format, which can obscure financial flows without external audits, raises further concerns. He faces accusations of attempting tax evasion through this entity, potentially eroding public trust in how celebrities manage their businesses. Such legal controversies could adversely impact Cha Eun-woo's career going forward.

While Cha’s agency, Fantagio, expressed their stance on future legal proceedings, it is generally true that stars involved in legal disputes often see considerable damage to their careers. Advertisers and fans are likely to react sensitively to such controversies, which could significantly affect Cha Eun-woo's activities.

This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.

Photo: DB

Source: tvdaily.co.kr