June 23, 2011 11:14
A district court has rejected a request by Korean Wave star Bae Yong-joon to cancel part of his hefty income tax. The Suwon District Court on Wednesday dismissed a suit by Bae (39) to cancel around W2.1 billion out of W2.3 billion (US$1=W1,074) in income tax imposed on his 2005 earnings.
The court said most of the expenses incurred during the filming of commercials, TV dramas or movies are normally covered by advertisers and production companies, and Bae shouldered barely any costs of his own. As a result, the court ruled the W7.4 billion in expenses Bae deducted in his income tax filing were largely non-deductible.
In his 2006 income tax filing for earnings the previous year, Bae deducted W7.4 billion out of the total W23.9 billion as expenses and paid only W6.9 billion in income tax. But a tax probe in 2008 recognized only W247 million in credit card spending and W20 million paid to his personal stylist as expenses and slapped him with W2.33 billion in arrears, prompting the actor to sue.
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