Lifestyle Arts Kim Tae Hee reportedly evaded over S$1million in real estate taxes

Kim Tae Hee reportedly evaded over S$1million in real estate taxes

Individuals who buy properties have to pay pricey real estate taxes which include a value-added tax (VAT) of 10 per cent of the purchase price. However, companies do not have to pay VAT. Businesses outside of Seoul can get discounts in the total of tax paid.

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Kim Tae Hee is one of the top actresses in Korea and she is known for her looks, intellect, career and equally amazing husband Rain. The couple also share children together and it seems that she has the perfect life. The actress was lauded by netizens for giving a discount for her tenants due to the coronavirus pandemic. However, all the good reputation she has built is going down the drain since the Korean broadcaster MBC aired an investigative journalism programme called PD Note.

PD Note revealed that Kim Tae Hee, Lee Byung Hun, Kwon Sang Woo and Han Hyo Joo have avoided millions of dollars in real estate taxes by taking advantage of a flaw in the law. Celebrities often buy luxury buildings because they are the choice types of real estate investments in the country. Individuals who buy properties have to pay pricey real estate taxes which include a value-added tax (VAT) of 10 per cent of the purchase price.

Companies do not have to pay VAT. Businesses outside of Seoul can get discounts in the total of tax paid. According to the show, Lee Byung Hun used a paper company, which has a registered address in Gyeongi province outside of Seoul, to buy a 26bil won (S$30.1mil) building in Yeongeungpo, Seoul. PD Note also said that Kim Tae Hee bought a 13.2bil won (S$15.3mil) building in Gangnam using the loophole. It was alleged that the Hi Bye, Mama! actress saved 920mil won (S$1.06mil) in taxes with this method.

Kim Tae Hee is reportedly evading real estate tax. Picture: Instagram

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27 of such paper companies have been investigated by the National Tax Service and although this tax evasion method is not illegal, a rep said that the law may be amended to address this issue. Since the news broke, Kim Tae Hee and her husband Rain have been condemned for their actions. A netizen asked why did the actress have do use her intelligence for this. Kim Tae Hee studied in the esteemed Seoul National University which is hard to get into and the students are said to be very intelligent.

Another netizen said that the stars that were involved did not hesitate to think of their duty as a public figure. He said he was not shocked to find the other stars involved in this but he was shocked to find out about Kim Tae Hee whom he sees as a smart and kind person. /TISG

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