South Korea's National Tax Service, the nation's equivalent of the IRS, is currently suspecting that K-Pop entertainment agency YG Entertainment is evading taxes.
The NTS believes that YG Entertainment has not been transparent in disclosing their actual profits made from overseas concerts. In addition, the NTS also suspects that YG Entertainment is hiding overseas assets as well.
The Seoul Regional Tax Office was able to obtain documents regarding YG Entertainment's finance, and revealed that they intend to examine them while comparing the financial data that YG submitted to the International Trade Research Bureau to make sure that there aren't any inconsistencies with the figures.
But it's not just YG Entertainment that will be investigated, but also the company's founder and producer Yang HyunSuk, who is currently suspected of tax evasion as well. It has been reported by various news agencies that the K-Pop producer registered his clubs under 'general restaurants' rather than an 'entertainment establishment'. While 'general restaurant's pay 10% in taxes, 'entertainment establishments' must pay a higher 20% tax.
Stay tuned for updates!