Kwan Yoon, the son-in-law of the LG Group and CEO of BlueRun Ventures (BRV), is currently embroiled in a legal battle over allegations of tax evasion related to a comprehensive income tax amounting to 12.3 billion KRW, as well as accusations of forging his nationality.
Yoon is the husband of Koo Yeon-kyung, the daughter of the late Koo Bon-moo, the former chairman of LG Group and the current head of the LG Welfare Foundation.
Yoon has filed an administrative lawsuit, arguing that the National Tax Service’s taxation based on the '183-day' rule for determining residency in South Korea is unjust.
The National Tax Service determined that Yoon omitted 22.1 billion KRW in dividend income from his comprehensive income tax filings between 2016 and 2020. In December 2021, they imposed a comprehensive income tax of approximately 12.37758 billion KRW on him.
According to the Income Tax Act, if a foreigner stays in South Korea for more than 183 days, they are considered a resident and are required to report their income accordingly.
However, Yoon claims that his stay in South Korea did not exceed 183 days and has therefore filed a lawsuit.
Yoon argues that his average annual stay in South Korea from 2012 to 2019 was 180.6 days, and thus, he should not be subject to taxation.
On the other hand, the National Tax Service believes that taking into account temporary periods of departure, Yoon had effectively resided in the country for more than 183 days.
Based on this, the tax authorities have classified Yoon as a domestic resident and imposed the comprehensive income tax.
In connection with this, Kang Min-su, the Commissioner of the National Tax Service, acknowledged during a parliamentary audit on the 16th by the Planning and Finance Committee that the possibility of tax evasion by exploiting non-resident status is a potential "legal loophole."
This is a significant statement by the current head of the National Tax Service, highlighting the legal gaps in tax issues involving non-residents, with concerns being raised over the potential exploitation of the 183-day rule for offshore tax evasion.
Meanwhile, a decision by the Tax Tribunal revealed that Yoon had provided financial support to an acquaintance in Korea for 10 years, further fueling controversy.
It was uncovered that Yoon had supported this acquaintance and their children with living expenses, tuition fees, and had even provided them with a free apartment from 2010 to 2019.
Some media outlets speculated that the well-known celebrity who received financial support from Yoon was the wife of actor Jo Han-sun. However, Jo’s agency, Mystic Actors, strongly denied the allegations, stating, "Upon confirming with the individual, it is clear that this matter has nothing to do with him. The allegations are baseless."
Although Yoon's appeal was dismissed by the Tax Tribunal in 2022 regarding the National Tax Service’s income tax imposition, he has filed a lawsuit with the Seoul Administrative Court, challenging the decision.
Yoon, who holds U.S. citizenship, is also facing accusations of nationality forgery, which has further stirred controversy. Depending on the outcome of the lawsuit, there is growing speculation that this case could lead to amendments to tax laws and strengthen measures against offshore tax evasion.
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Kwan Yoon, LG Family's Eldest Son-in-Law, in Legal Battle over Comprehensive Income Tax Evasion and Nationality Forgery Allegati
Kwan Yoon, the son-in-law of the LG Group and CEO of BlueRun Ventures (BRV), is currently embroiled in a legal battle over allegations of tax evasion related t
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