Song Hye Kyo Apologizes for Tax Investigation Issues
“Everything related to tax is the tax accountant’s responsibility. All problems that occurred due to his mistake is also my responsibility, so I apologize.”
Song Hye Kyo made an official statement on the issue of tax investigation and tax payment.
Through her legal representative, Song Hye Kyo apologized about her recent issues regarding tax investigation and tax payment.
“We left all the issues regarding tax to the tax accountant and there was an issue in the tax investigation. We’ve already paid the tax amount due as well as the surtax,” stated Song Hye Kyo.
The statement continued, “We accepted without objection to pay the additional tax amount of 95.45 percent and 88.58 percent, which in comparison to the 56.1 percent that celebrities usually pay is quite high.”
The following is the full statement.
The Firm (representative Jung Chul Seung) would like to reveal the details of tax investigation, which ended in 2012, of Song Hye Kyo as her legal representative. First off, we would like to apologize that a statement was tardy, as we were confirming the facts of the case that has been closed since two years ago.
1. Song Hye Kyo was notified by the Seoul Regional National Tax Service in August 30, 2012 that there was an issue with her taxes for 2009 to 2011, and a tax investigation will take place.
2. From August 30, 2012 to October 8, 2012, Song Hye Kyo received an investigation from the Seoul Regional National Tax Service through the accounting firm ‘T’’s manager ‘C,’ who was in charge of Song Hye Kyo’s tax-related business, about ‘the appropriateness of the tax declaration details of the business income taxpayer.’
3. On October 11, 2012, the National Tax Service notified her saying, “As there has been a problem with taxes for a period of time, the documents and evidence sent in are not trustworthy. So a tax investigation regarding the undocumented expenses from 2008 to 2011 will take place.’
4. On October 15, 2012, Song Hye Kyo paid 95.48 percent of her earnings from 2011 (meaning only 4.52 percent of yearly earnings were accepted), and 88.58 percent from 2012, coming out to a total of about 3.1 billion won in income taxes and late taxes.
5. The tax rate in number 4 was fixed very highly, compared to the usual Seoul Regional National Tax Service rate of 56.1 percent. Despite the fact, Song Hye Kyo, to take responsibility for her lack of proper tax management, paid for the additional taxes and penalty fees without argument. She also parted ways with manager ‘C’ of accounting firm ‘T,’ who was unable to handle her taxes properly, and hired a new tax accountant to end the tax investigation.
6. Meanwhile, the Seoul Gangnam District Tax Office told Song Hye Kyo in April of 2014, ‘As the Board of Audit and Inspection pinpointed Song Hye Kyo, an additional tax for the 2008 tax return must be collected.’
7. Through a newly hired tax agency, Song Hye Kyo paid her income tax for 2014, as well as the additional fees and taxes from 2008 that she was notified of, paying around a total of 700 million won in taxes.
1. Like all other taxpayers, Song Hye Kyo left all matters regarding tax to the tax accountant until now.
2. Before she received a notification from the National Tax Service in 2012 that there was insufficient evidence on the tax payment, Song Hye Kyo had no idea that the tax accountant had been making poor reports on tax.
3. Compared to the standard tax payment of 56.1 percent paid by celebrities, Song Hye Kyo had to pay nearly double the amount in taxes and surtaxes, due to the errors made by the tax accountant.
4. The tax account, who failed to monitor his employee’s negligence of his duties, and has therefore caused great damage to the client, has been remitted to Ministry of Strategy and Finance’s tax accountant disciplinary procedures. Song Hye Kyo fired the tax accountant as soon as she received tax investigation and will be taking legal action against the tax accountant as well as the accounting firm.
5. Although she has left all matters regarding tax up to the tax accountant, she is well aware of the fact that the final responsibility lies on the taxpayer.
6. As an actress who receives the attention of the public, Song Hye Kyo apologizes for not paying more attention to matters related to her taxes.
7. Although she fully paid the additional taxes and penalties two years ago, Song Hye Kyo is deeply reflecting on the errors that arose on her tax affairs due to ignorance and will be paying particular attention in the future so that something like this won’t happen again.
8. We apologize with our heads bowed down one more time.
- Song Hye Kyo 20140819