Bae Yong Joon loses income tax battle

June 24, 2011
Pay up or be jailed!

24 Jun - South Korean courts rejected actor Bae Yong Joon's request to have tax authorities waive 2.1 billion won (S$2.4 million) of the 2.3 billion won (S$2.6 million) in tax arrears he had been ordered to pay, according to a report by Channel News Asia website.

The 39-year-old actor had deducted 7.4 billion won (S$8.4 million) from his taxable income of 23.9 billion won (S$27.2 million) as expenses, and paid 6.9 billion won (S$7.8 million) in income tax for his earnings in 2005 in Bae's 2006 tax filling.

His expenses only amounted to 267 million won (S$304,000) and Korean tax authorities demanded he pay 2.3 billion won (S$2.6 million) in arrears, found by a tax probe in 2008. Bae wasn't happy with the probe's findings and filed an appeal.

Nevertheless, the courts rejected his appeal, reasoning that the expenses incurred during the production of a commercial or a television programme is based on the production house or advertising agency.

He couldn't prove the 7.4 billion won (S$8.4 million) he claimed in tax deductions was used to pay for the expenses he incurred in his performing career that year therefore the courts rejected his appeal.


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