Actress Han Hyo Joo has been fined around $50,000 USD after tax audits showed she underreported her taxes.
According to an exclusive report from Aju Economy, actress Han Hyo Joo was investigated at the end of 2022 as a tax audit and was fined between ₩60.0 million KRW (about $46,800 USD) and ₩70.0 million KRW (about $54,600 USD) for underreporting her taxes. Fellow BH Entertainment actor Lee Byung Hun was also fined ₩100 million KRW (about $78,000 USD) after an investigation in September 2022.
In 2020, the National Tax Service started investigating celebrities who purchased buildings under their personal corporations instead of under their own name. Some wealthy individuals will do this to avoid taxes that are imposed on individuals such as real estate taxes. Kim Tae Hee, Lee Byung Hun, and Kwon Sang Woo were three actors revealed to have been fined for such acts.
Actress Kim Tae Hee Reported To Have Been Investigated For Unpaid Taxes — Agency Responds
In Han Hyo Joo’s case, she purchased a building in the Eunpyeong district of Seoul in 2018 under a corporation and the representative of the corporation is her father. However, there were no signs of an actual company being operated at the building itself. In addition, she purchased a building in the Hannam neighborhood of Seoul in 2017 for ₩5.50 billion KRW (about $4.29 million USD) and sold it in 2021 for ₩8.00 billion KRW (about $6.24 million USD), netting ₩2.50 billion KRW (about $1.95 million USD) in gains.
BH Entertainment argued that it was a difference in accounting that caused the differences in tax reported, as they believed that it was how the accountant handled the calculation of expenses. They maintain their position that it was not intentional tax evasion.
Han Hyo Joo underwent a normal tax investigation without any special circumstances. It is not related to any illegal activity due to the differences of interpretation of the handling of her personal expenses.
— BH Entertainment
Back in 2011, Han Hyo Joo was awarded by the Ministry of Strategy and Finance for being a model taxpayer, receiving a presidential commendation. She also promoted as an ambassador for the National Tax Service for two years due to her honest tax payments and promoting various government-related events.
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