Actress Honey Lee has stepped up to clarify her tax evasion allegations.
On march 7 KST, Honey Lee's label TEAMHOPE issued an official statement to explain the results of the actress's tax audit. The label began, "We would like to clarify that the audit discovered no instances of tax evasion or tax dodging, such as deliberate omissions or false expenses, involved in Honey Lee's entertainment activities."
TEAMHOPE continued, "Alongside her primary career as an actress, Honey Lee has been involved in various activities such as traditional Korean music performances, content development and production, and investments—areas that could not be managed by her talent agency. To facilitate these endeavors, she established and operated the corporation Hope Project. To separate income generated from her acting career from assets acquired through these other activities, this income was reported as corporate revenue, and corporate taxes were duly paid."
The agency further explained, "Then, during a recent 'Comprehensive Special Tax Audit for Corporate Artists', the tax authorities declared that this income should have been categorized as personal income and subjected to personal income tax rather than corporate tax. Consequently, additional income taxes were imposed, and the due amount was paid."
TEAMHOPE additionally emphasized that the actress was not subject to any severe tax penalties for fraudulent activities, but was penalized for incorrect tax filing and minor errors.
Finally, the label stated, "This tax assessment arose from a difference in legal interpretations regarding whether an artist with a private corporate entity should pay corporate tax or income tax on their earnings. Honey Lee has fully complied with the tax authorities' decisions, paying an amount significantly exceeding the highest statutory tax rate. As a responsible citizen of South Korea, Lee Ha-nee has always adhered to tax laws and procedures and will continue to fulfill her tax obligations diligently."
Previously, in September of last year, it was reported that Honey Lee underwent an intensive tax audit by the Seoul Regional Tax Office and was charged 6 billion KRW (~ $4.5 million USD) in additional taxes, marking the highest known tax imposition on a South Korean celebrity.
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