The Korean Nationwide Tax Service can be investigating celebrities who’re evading taxes utilizing loopholes within the system.
It has been reported that with a view to keep away from taxes, celebrities will register their buildings beneath the title of an actual property company they established or discover a loophole within the system by itemizing the property as items to kids. This apply has been criticized as public data for constructing homeowners might be simply discovered. Celebrities corresponding to Lee Byung Hun, Kwon Sang Woo, Han Hyo Joo, Kim Tae Hee, and extra haven’t bought buildings in their very own title however beneath companies. By buying actual property as an organization, celebrities can cut back acquisition, capital positive aspects, and rental earnings tax, nor do they pay complete actual property taxes that non-public homeowners pay. Though this conduct is just not unlawful, it’s clear that these strategies are using loopholes to keep away from paying taxes.
In keeping with MBC’s ‘PD Word’, the addresses of the established actual property companies can be listed in areas that aren’t in Seoul with a view to obtain extra tax cuts. Lee Byung Hyun bought a constructing price 26 billion KRW (21.2 million USD) in Yeongeungpo, Seoul however purchased the constructing beneath the title of a household company listed in Gyeongido. Kim Tae Hee bought a 13.2 billion KRW (10.7 million USD) constructing in Gangnam, Seoul however her company was listed in Gyeongido as nicely. In Kim Tae Hee’s case, she was capable of save 920 million KRW (750 thousand USD) in taxes attributable to this technique.
The Nationwide Tax Service has launched investigations into 27 of these kind of companies, however there are mentioned to be 1000’s left to assessment. An official from the group has acknowledged that this topic is just not a blind spot, however moderately an space that must be managed strictly.