Actor Lee Yi-kyung has been notified of tax collection related to the operation of his one-person agency.
According to a report on the 13th, Lee Yi-kyung recently underwent an irregular tax audit by the National Tax Service and was subsequently notified of the tax collection.
The National Tax Service reportedly determined that Lee reduced his tax burden by processing a portion of his personal income as corporate revenue through his one-person agency.
This was viewed as potential tax avoidance, taking advantage of the fact that the maximum corporate tax rate is lower than the general income tax rate.
Regarding this, Lee Yi-kyung’s agency, Sangyoung ENT, stated, “The results of the recent tax audit were caused by a difference in the interpretation of tax laws between the tax authorities and our company regarding the standards for processing expenses during corporate operations.”
They further clarified, “There was absolutely no intentional omission of income or evasion through fraudulent means,” adding, “We respect the findings of the National Tax Service and plan to pay the full amount of the imposed tax collection without delay.”
Along with an apology, the agency added, “We will be more thorough in our tax management to ensure this does not happen again,” and “We will continue to abide by laws and principles and faithfully fulfill our tax obligations.”
This comes as other stars like Cha Eun-woo, Kim Seon-ho, Yoo Yeon-seok, and Lee Hanee have also recently been reported to have faced tax collections involving corporate entities.
One-person agencies are a common way for celebrities to manage their earnings and expenses as a corporation. Due to ongoing controversies, the Korea Management Association called for institutional improvements regarding one-person corporations and tax issues in February.
