JYJ member Kim Jae Joong explained why he had to pay a large amount of additional fine in an irregular tax investigation.
Regarding the report that Kim Jae Joong was fined hundreds of millions of won in a tax investigation, his agency C-JeS Entertainment stated on March 9th, “Additional taxes were incurred during the 2020 tax investigation due to the omission of some revenue from Kim Jae Joong’s Japanese activities, and he has already paid 100 million won in additional taxes.”
The agency explained, “Kim Jae Joong reported and paid taxes based on the sales at that time, but there was a timing difference in the settlement process between activities in Korea and Japan, and some of the declared expenses were judged to be unrelated to the business. After confirming the facts, he immediately paid the additional taxes.”
They emphasized, “This was only due to differences in tax interpretation between business and personal expenses, and it was not intentional.”
Earlier on the same day, the New Daily reported that Kim Jae Joong had been subjected to an irregular tax investigation and fined a large amount of taxes by the Seoul Regional Tax Office in 2020. In the meantime, most of the planned tax audits conducted by the National Tax Service are cases of tax evasion by exploiting cost handling, and Kim Jae Joong’s tax evasion was raised among them.