SM Entertainment Ordered To Pay 20.2 Billion Won Following Tax Investigation
SM Entertainment has been ordered to pay 20.2 billion won (approximately $18 million) after a tax investigation by the National Tax Service Seoul Regional Tax Office.
It was previously reported that the fourth investigation bureau of the Seoul Regional Tax Office had carried out a tax investigation of SM Entertainment and executive producer Lee Soo Man. It was described as an irregular tax investigation, known as a “special tax investigation,” after suspicions of tax evasion. Reports stated that taxation authorities had detected the outflow of company capital in Lee Soo Man’s corporate transactions. SM Entertainment had responded by saying it was a regular tax investigation that began last September and it was the company’s first in six years. They stated, “We earnestly took part and are awaiting the results.”
On February 5, SM Entertainment announced that it has been ordered to pay an additional collection amount of 20.2 billion won following the tax investigation. This is described as 3.19 percent of SM Entertainment’s capital.
SM Entertainment has stated, “After we receive the tax notice, we plan to pay the additional collection amount before the deadline of the end of March, and we plan to carry out an appeal process after that.”
SM Entertainment also underwent tax investigations in 2009 and 2014, and the company was ordered to pay an additional 10.2 billion won (approximately $9.1 million) in corporate taxes after the investigation in 2014.