Why did Cha Eun-woo choose to pay the full tax amount before the appeal outcome?

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Cha Eun-woo Settles Disputed Tax Bill Amidst Appeal Process

Cha Eun-woo has paid the full disputed tax bill of 13 billion won while simultaneously lodging a formal appeal against the assessment. This action was taken to prevent further confusion and to adhere to the procedures and findings of the National Tax Service. The popular entertainer is challenging a tax reassessment that arose from an audit by the Seoul Regional Tax Office, which examined income channelled through a company established by his mother.
Payment to Uphold Procedural Respect and Clarity

The decision to pay the full 13 billion won amount, as confirmed by his agency Fantagio, was explicitly stated by Cha Eun-woo as a measure "to prevent further confusion" and "to respect the National Tax Service’s procedures and results." This suggests an intent to comply with the administrative process while pursuing legal recourse, thereby avoiding potential complications that might arise from non-payment during the appeal period. This approach allows the appeal process to proceed without the immediate issue of outstanding dues, as stated by the agency when the payment was made.
Context of the Tax Assessment and Appeal

The tax assessment stemmed from an intensive audit conducted by the Seoul Regional Tax Office. Officials reportedly examined income that Cha Eun-woo allegedly distributed through a company set up by his mother. The National Tax Service concluded that this arrangement was used to have earnings taxed at lower corporate rates instead of higher personal income tax rates, viewing the company as a shell entity that did not provide substantive services. Fantagio has contested this, asserting that the company was formally registered as a public arts and culture planning business.
Potential for Refund and Ongoing Process

Should the Tax Tribunal rule in Cha Eun-woo's favour, he is entitled to a refund of the 13 billion won he has paid. The appeal process is currently underway, with a ruling from the Tax Tribunal anticipated after January of next year, following his scheduled discharge from military service. If the appeal is unsuccessful, he retains the option to pursue the matter further in an administrative court. Fantagio has stated that specific details cannot be disclosed as the case remains under review.

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Why did Cha Eun-woo choose to pay the full tax amount before the appeal outcome?

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