Actor Jo Jin-woong has clarified the situation regarding the tax reassessment of 1.1 billion won following a tax investigation.
On the 22nd, Jo Jin-woong's agency, People Entertainment, stated to Maeil Business Star Today, “Jo Jin-woong was assessed a tax of approximately 1.1 billion won during the regular tax investigation by the tax authorities, and he has paid the assessed tax in full, respecting the decision of the tax authorities.”
They continued, “The issue arose from whether the income of the corporation established by Jo Jin-woong was subject to personal income tax, stemming from differences in the interpretation and application of tax laws between the tax representative and the tax authorities. Jo Jin-woong reported and paid corporate tax on the corporate income according to standard tax processing methods, but the tax authorities decided to impose additional income tax on this.”
The agency stated, “Jo Jin-woong paid the full amount of tax assessed by the tax authorities without delay,” adding, “However, the decision of the tax authorities was contrary to the prevailing tax practices at the time, and it was a contentious issue with differing opinions among experts and academia. Therefore, we cautiously filed for a review with the Tax Tribunal to seek a legal judgment on the decision of the tax authorities, and the proceedings are currently ongoing. We have also identified several similar cases.”
They added, “Jo Jin-woong has always strived to fulfill his tax obligations as a citizen of South Korea and promises to continue to comply thoroughly with laws and procedures while fulfilling his responsibilities and obligations.”
Previously, Sports Kyunghyang reported that the Gangnam Tax Office in Seoul recently conducted a tax investigation on Jo Jin-woong and imposed a reassessment amounting to approximately 1.1 billion won.
Like actors Yoo Yeon-seok and Lee Ha-nee, who have faced tax reassessments amounting to tens of billions of won, Jo Jin-woong established a personal corporation to record income as corporate revenue and pay corporate tax. It is reported that the National Tax Service deemed there were issues with tax payments during this process, leading to the tax investigation.
Below is the full statement from Jo Jin-woong's agency
Actor Jo Jin-woong was assessed a tax of approximately 1.1 billion won during the regular tax investigation by the tax authorities, and he has paid the assessed tax in full, respecting the decision of the tax authorities.
The issue arose from whether the income of the corporation established by actor Jo Jin-woong was subject to personal income tax, stemming from differences in the interpretation and application of tax laws between the tax representative and the tax authorities. Actor Jo Jin-woong reported and paid corporate tax on the corporate income according to standard tax processing methods, but the tax authorities decided to impose additional income tax on this.
Actor Jo Jin-woong paid the full amount of tax assessed by the tax authorities without delay.
However, the decision of the tax authorities was contrary to the prevailing tax practices at the time, and it was a contentious issue with differing opinions among experts and academia. Therefore, we cautiously filed for a review with the Tax Tribunal to seek a legal judgment on the decision of the tax authorities, and the proceedings are currently ongoing. We have also identified several similar cases.
Actor Jo Jin-woong has always strived to fulfill his tax obligations as a citizen of South Korea and promises to continue to comply thoroughly with laws and procedures while fulfilling his responsibilities and obligations.
