The National Tax Service (NTS) has reportedly launched an audit into his alleged failure to properly declare taxable income, according to multiple sources. The audit began early last year, several months before he enlisted in the military to fulfill his mandatory service in July.
The NTS believes that the actor evaded taxes worth 20 billion Korean won (US$13.6 million) by diverting taxable earnings through a company established by his mother, which reportedly had little to no actual business activity.
"Cha will fully cooperate with the probe through his lawyer and tax accountant to ensure that all necessary procedures are completed promptly," his management agency Fantagio said in a press release.
Cha is said to be awaiting a reassessment of the probe after filing an objection with the NTS.
Cha, who has been serving in the army's brass band, is expected to be discharged in January next year.
The multi-talented star has won over numerous ardent fans across Asia since his debut in the showbiz industry in 2016, thanks to his good looks as well as his successful transition from K-pop idol to sought-after actor.
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