SM Entertainment Reportedly Being Investigated for Tax Fraud, Agency Gives Official Statement
On March 20, a Korean new site reported that Korean entertainment powerhouse SM Entertainment was being investigated by the National Tax Service for fraud and tax evasion in the millions of USD. In response, SM Entertainment released an official statement denying any wrong doings or that it is being specially investigated.
SM Entertainment said, “Reports that SM has been evading taxes on off shore accounts is unfounded. The company is being audited normally, as it should be following the 2009 audit.” The representative also asked people stop spreading the groundless rumors.
On March 18, the Seoul Tax Bureau sent over 30 staff members to the SM headquarters to collect documents and books for their investigation. Other reports are noting that if it was a regular tax audit, the company would have been notified at least 10 days in advance, but for this investigation SM Entertainment was notified the day of.