The Faithful Declaration Checkup Policy gets individuals to have their income return report evaluated by an accountant, and was first implemented this year to help high-income taxpayers pay the right taxes.The publishing, broadcasting tax category that celebrities fall into need those who earn more than 1.5 billion won a year to go through with the new policy.
Tax offices are especially adding to the concern after they announced that they’ll be using strict standards to verify the reports, especially for those who have a record of being unfaithful.
One official said, “Celebrities who earn high incomes could often be seen getting worked up in June. Those who received a notice about the Faithful Declaration Checkup Policy met their accountants to figure out how much they need to declare and how much taxes they have to pay."
"Those who earn similar incomes even talked about agreeing on the amount to declare because if one person declares more than the others, that person may be put at a disadvantage against the National Tax Service. They were especially careful about the issue in case they cause a scandal like Kang Ho Dong did with his tax evasion.”
Agencies are also busy preparing to meet the storm of tax audits and reports.
Tax offices had stated that they would especially be going through strict tax audits against agencies that left out in their reports profits they earned through overseas concerts or appearances in overseas dramas.
One source from an agency stated, “Some big agencies even received official notices from the National Tax Service, and are trembling lest they meet a tax audit. Many are getting ready because there’s talk that agencies that have hallyu stars big in Japan or have earned more than 5 billion won in the past five years will have to go through a tax audit."
"They’re especially worried about [profit from] Chinese activities because they’re rarely put in official documentation.”
A source from the National Tax Audit explained, “We can’t say which agencies will be put under a tax audit or to what extent the audits will take place. We plan to especially look into agencies that had singers perform overseas and then left out the profits [in their reports].”
