Korean Taxpayers Federation’s Shocking Response To Cha Eunwoo’s Controversy Sparks Backlash

This article is part of our coverage of Cha Eunwoo's Tax Evasion Scandal. You can read more and view the entire timeline here.

Recently, the Korean Taxpayers’ Federation (KTF) has urged the presumption of innocence to be upheld in the tax evasion controversy surrounding ASTRO’s Cha Eunwoo.

ASTRO’s Cha Eunwoo Accused Of Tax Evasion Totaling Up To $13.7 Million USD

One-sidedly accusing someone of tax evasion simply because they’ve been levied taxes is viewing taxes solely from the perspective of state power.

— KTF

The Taxpayer’s Union is Korea’s only tax-focused civic group dedicated to protecting taxpayers’ rights.

According to a press release from the KTF, they stated, “Tax avoidance is a taxpayer’s right. If tax avoidance succeeds, it becomes tax saving. If it fails, it becomes tax evasion. The U.S. Supreme Court has ruled that a “taxpayer’s legal right to reduce or avoid taxes imposed on him within the scope permitted by law can never be questioned.”

The KTF argued that labeling the corporation registered under Cha Eunwoo’s mother as a “paper company” violates the principles of presumption of innocence.

In the NeNe Chicken case, the National Tax Service determined the son’s company was a paper company lacking personnel and physical facilities, and filed a complaint. Although the first trial found him guilty, the Supreme Court ultimately acquitted him.

— KTF

The KTF felt that the media’s categorical labeling of “paper company” posed a risk of forming preconceived notions during appeals and lawsuits, therefore infringing on taxpayer rights.

The fundamental principle of criminal law is that, even if letting 100 criminals go free, no innocent person should be wronged.

— KTF

They also added that leaking tax information is illegal, and that information related to celebrity tax audits would be difficult to report without a tax official leaking it.

The NTS commissioner is neglecting to investigate the leak and is in dereliction of duty. The NTS must conduct internal audits to identify and punish the officials responsible for leaking tax information.

— KTF

The KTF also stated that “the equation of tax evasion equals condemnation” does not hold true.” They felt that the NTS should be criticized for creating tax laws that are difficult even for experts to understand and failing to provide sufficient advance notice.

However, K-Netizens were taken aback at the KTF’s statement.

• “This isn’t a taxpayer association, it’s a tax evader association.”
• “Does tax evasion include things like regular donations?”
• “Is this a tax evader’s club?”
• “Do you know what kind of world we live in these days? Who lets 100 criminals go free? Don’t you know Professor Park Ji Sun’s words? We’re smarter than you. The National Tax Service conducts tax audits, imposes additional taxes, and refuses to collect surcharges without any basis. Defend things that should be defended.”
• “What kind of federation is this? I haven’t heard of it before.”