On June 2, Ji Chang Wook's management company officially spoke out after the male star was inspected by the Korean tax authorities and recovered billions of won. "We deeply apologize for causing concern for many people involved in this issue. However, there was no intentional omission or tax evasion by fraudulent means" - the unit said.
According to the management company, during the recent tax investigation, Ji Chang Wook's side transparently provided relevant documents and fully cooperated with functional agencies. However, the cause of the incident lies in the differences in the interpretation and application of tax law.
Specifically, the two sides have different views on whether revenue from Ji Chang Wook's artistic activities should be calculated as personal income or income of the managing company according to the principle of substantive taxation.
Despite differences in views, we respect the investigation results of the National Tax Department. Since Ji Chang Wook was launched in 2008, the company has always complied with regulations and procedures related to taxes. We will fully fulfill our obligation to pay the arrears according to regulations" - the company informed.
Previously, in the afternoon of the same day, Korean media reported that the Korean National Revenue Service had conducted a special tax inspection of Ji Chang Wook since March this year.
The inspection is said to focus on the operations of the management company established and operated by the actor. Functional agencies are reviewing the time of recording revenue from domestic and foreign art activities, the cat-xe settlement process as well as expenses processed through the company and related legal entities.
During the investigation, the tax authorities were said to have discovered a number of issues related to tax declaration and handling, leading to the decision to recover an amount of up to billions of won.
The information appears in the context that Ji Chang Wook is receiving a lot of attention with the movie "Colony" (Colony). The work directed by Yeon Sang Ho is currently leading the Korean box office and has surpassed 3.5 million views in just nearly two weeks of screening.
