Lee Yi Kyung addressed allegations of tax evasion on May 13th.
The actor’s agency, SANGYOUNG ENTERTAINMENT, stated, “The results of this tax investigation come from differences in interpretation between the tax authorities and our company regarding the standards for expense processing during corporate operations.” The agency emphasized, “We did not conceal any income or intentionally engage in tax evasion through unlawful means.”
Earlier, Xports News reported that Lee Yi Kyung had received a tax notice related to the one-person agency he established following an unscheduled audit by the National Tax Service. Authorities reportedly concluded that part of his personal income had been processed as corporate revenue to benefit from a lower tax rate.
In response, the agency stated, “We respect the National Tax Service’s decision and will promptly pay the assessed amount in accordance with the proper procedures.”
They added, “We sincerely apologize for causing concern to many people and will more carefully review our tax and accounting management system to prevent similar issues from occurring in the future. We will continue to abide by laws and principles while faithfully fulfilling our tax obligations.”
Recently, celebrities including Lee Yi Kyung, Cha Eun Woo, Kim Seon Ho and Lee Ha Nee have become embroiled in tax evasion suspicions related to their one-person agencies. Tax authorities are reportedly investigating cases in which celebrities allegedly established one-person agencies resembling shell companies in order to benefit from lower corporate tax rates compared to individual income tax rates.
>> Cha Eun Woo Pays Full Tax Bill, Actual Amount Confirmed at $8.8 Million
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