Thursday, 20 March 2025

The Politics of Distraction: Lee Joon Gi - Embroiled in Purported Tax Evasion Amidst A Major Entertainment Scandal and Political Turmoil

 


THE POLITICS

OF

DISTRACTION

 

LEE JOON GI

 

EMBROILED IN

 

PURPORTED

TAX EVASION

 

AMIDST

 

A MAJOR

ENTERTAINMENT

SCANDAL


AND

 

SERIOUS

POLITICAL TURMOIL



 

 

 



 



Recently, the globally loved and respected multihyphenate superstar, Lee Joon Gi, who is a Role Model for The Young, was accused of tax evasion, but the misleading accusation has been proven to be false. Many believe the issue has been created to distract the public, the world and the global kdrama world from the serious on-going problems that South Korea is facing: serious political upheaval and a disruptive entertainment scandal which have far-reaching consequences.

 

It is suspected that the controversial strategic distraction or diversionary tactic is intentionally timed to prevent further global scrutiny of the scandals in the country and censor the truth. It is not a coincidence but a sophisticated strategy to limit damage control. The ‘smoke-screen’ is a ploy to manipulate the situation to distract everyone, and also, to conceal shocking matters at hand and to undermine political and personal accountability.







 

The consumer of the media is encouraged to be A CRITICAL THINKER rather than an absorbent sponge.

 

Lee Joon Gi has already paid his taxes in full but he would make an appeal to the Tax Tribunal.

 

It cannot be denied that the South Korean tax system is probably problematic and inefficient in the first place. So many celebrities are being accused of tax evasion. Rulings seem to be unclear and the system needs to be improved. 


According to Channel News Asia (CNA), ‘…. we (LJG’s representatives) have filed an appeal to the Tax Tribunal as the matter was never pointed out during the previous regular audits in 2015 and 2019. We are aware that there is no existing precedent regarding the practice of managing income and assets through a personal corporation.’

 

However, these controversial incidents only serve to bring to light what an Excellent Role Model Lee Joon Gi is compared to the scandalous behaviour of another actor.

 

SUMMARY


1. Namoo Actors stated that Lee Joon Gi has been DILIGENT in fulfilling his tax responsibilities.

 

Lee has already COMPLIED WITH the new ruling and paid his taxes IN FULL.

 

2. LEE JOON GI’S APPEAL TO THE TAX TRIBUNAL

 

Lee has made AN APPEAL objecting to the additional taxes imposed by the Gangnam branch of the National Tax Services to the TAX TRIBUNAL.

 

3. NO EXISTING PRECEDENT

 

There is no existing PRECEDENT regarding the practice of managing income and assets through a personal corporation. Lee stated that he followed PAST TAX DECLARATION PRACTICES. This new ruling is completely different from the past practices of the National Tax Services.

 

‘….. IT IS A DECISION THAT DEVIATES FROM PREVIOUS TAX PRACTICES.’

 

4. THE TAX RULING WAS NOT RAISED IN THE AUDITS IN 2015 AND 2019

 

During THE AUDITS IN 2015 and 2019, such tax matters WERE NOT RAISED OR POINTED OUT. So, why NOW? The regular tax audit was carried out by the Gangnam Tax Office in the year 2023. It is now March 2025.

 

There is NO PREVIOUS ESTABLISHED RULING pertaining to it. Taxpayers must not be left in the dark with regard to their taxation rights and obligations.

 

Suddenly attacking taxpayers on a retrospective basis is not fair. Penalty provisions should be applied forward, not backward.

 

5. LEE JOON GI: NO TAX EVASION OR AVOIDANCE

 

Namoo Agency emphasized that the investigation DID NOT REVEAL any issues concerning TAX EVASION OR AVOIDANCE on Lee Joon Gi’s part.

 

Since the ruling is ambiguous, it cannot inflict a detriment on the taxpayer. The doubt of the ambiguity must be construed in the favour of the taxpayer.

 

INJUSTICE AND ABSURDITY. It is FRIVOLOUS TO ACCUSE TAXPAYERS OF TAX EVASION when one’s system is inefficient and fuzzy, and allows for various interpretations of the tax laws by tax authorities and tax agents. You cannot spring a ‘new’ ruling on tax payers who had already paid their taxes in the past, and then, accuse them of evading taxes, when your new ruling was never made VERY CLEAR to them in the first place. Are they trying to destroy or dent reputations?

 

 

CONTROVERSIAL RETROSPECTIVE TAX

 

The controversial retrospective tax is a retrogressive step.

 

Deborah Moragwa states, ‘Applying tax laws retrospectively is akin to time travel. Time travel, real or unreal, allows one to travel into the past.’

 

‘Applying tax laws retrospectively means past actions which were unrestricted in law becomes restricted or taxes which were not levied at the material time become due and payable.’

 

Retrospective tax, which is controversial, simply means imposing an additional charge via an amendment from a specified date in the past.

 

‘One principle of taxation that shapes taxation systems is CERTAINTY. When tax payers are certain about their tax obligations, they can do tax planning effectively, thereby enhancing compliance.

 

Tax payers are ENTITLED, and rightly so, to plan their actions in accordance with the law IN EXISTENCE at the time they perform the action.’

 

‘CERTAINTY IN TAX LAWS is still a key principle in the formulation of tax policies.’

 

‘Retrospective application of tax laws create uncertainty.’

 

 

 

CONTROVERSIAL RULING DISAGREEMENTS 

BETWEEN 

ACADEMIA

AND

TAX EXPERTS

 

Such a controversial ruling has sparked a debate between the academia and tax experts. The tax system is probably problematic, inefficient and needs reformation. Some rules are unclear and not clear cut. Taxation rules need to be VERY clear.

 

A tax ruling cannot have room for interpretation. If the tax ruling is to be strictly implemented, it must have CLARITY, UNAMBIGUOUSNESS, TRANSPARENCY AND CONSISTENCY.

 

This will ENSURE COMPLIANCE AND MINIMIZE DISPUTES between National Tax Services and tax payers.

 

 

A 

FAIR

 AND

 JUST

 TAXATION SYSTEM

 


The question posed in ET Today is, ‘ … whether the National Tax Service will conduct similar tax inspections on other artists, celebrities or management companies in the near future’? ‘It will affect ‘… the tax management methods of the South Korean entertainment industry.’

 

There are so MANY Korean stars or celebrities with their own entertainment companies, some of which are made famous by huge scandals and should be investigated.


The public and global fans expect to hear a whole lot more 'tax evasion' cases – a flurry of such cases in quick succession, if the South Korean National Tax Service is SERIOUS about being JUST and FAIR, and not just hauling a few TARGETED victims over the coals.

 


 


 

 

 

 


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