SM, additional 2 billion won in tax investigation… “I will go through the complaint procedure”

Input 2021.02.05 20:28

On the 5th, SM Entertainment, a representative entertainment agency in Korea, to which EXO, Red Velvet, and NCT belong, announced on the 5th that it had been levied a surcharge of 2021.66 million won as a result of a tax investigation by the Seoul Regional Tax Office.

SM Entertainment said, “As a result of corporate tax audits for parts of 2015-2019 and 2020, the amount was imposed.” I will proceed.”

The additional surcharge of 2021.66 million won is the estimated charge on the tax audit result notice before receipt of the tax bill, which is 3.19% of SM Entertainment’s equity capital.

The 4th Investigation Bureau of the Seoul Regional Tax Office recently conducted a tax investigation on SM Entertainment and Lee Soo-man, general producer of SM Entertainment. This producer is the largest shareholder who owns 18.73% of SM Entertainment as of September 30 last year.

This tax audit is known as a so-called special tax audit as an irregular tax audit following the detection of alleged evasion. The tax authorities are known to have caught the outflow of corporate funds in a transaction between producer Lee Soo-man and the corporation. The 4th Investigation Bureau of the Seoul Regional Tax Service is a department that mainly investigates charges of evasion by large corporations.

In response, the SM Entertainment side said, “I received regular tax audits after six years from September last year,” and “I worked sincerely and are waiting for the results.”