Celebrity A was recently revealed to have made false accounting reports on clothing expenses
According to a report by SBS on November 19th, top star A spent an unreasonably amount of hundreds of millions of won in clothes and insisted that they had no choice but to wear expensive clothes due to their job as an advertising model.
Top star A, known as a regular guest at high-end luxury brand events, has been posting pictures of themselves wearing expensive clothes and accessories on official channels.
In the entertainment industry, there’s a practice of celebrities excessively processing clothing expenses to reduce taxes, causing suspicion on whether the money spent on clothing and accessories is considered business income for entertainment activities or for personal satisfaction to arise.
Upon investigating A’s tax reports, the National Tax Service found suspicious details. In May 2019, A said they spent about 3 million won on clothes for a photoshoot, but it paid to a watch company that day. It was said that over 90% of declared clothing expenses, amounting to about 3 billion won, were not related to entertainment activities.
When the National Tax Service decided to impose a substantial tax, A’s representative argued that they inevitably spent a fixed amount for maintaining the artist’s image when appearing in front of the public even when there were no official events. However, this argument was not accepted.
A’s representative complained, “They say they will only acknowledge the expenses captured on camera. However, given the nature of a celebrity, it is impossible to distinguish clothes for personal and public aspects, right?”. Despite making such a statement, A eventually accepted the National Tax Service’s decision and paid a large amount of fine.
Meanwhile, SBS interpreted the National Tax Service’s move as a way to give a warning to high-income celebrities and YouTube in order to prevent the practice of trying to reduce tax.
Source: Nate
