June 24, 2014 12:38
Management agency SM Entertainment, which spawned hugely successful acts like BoA, TVXQ, Super Junior and Girls' Generation, has to pay W10.2 billion in back taxes (US$1=W1,019).
A tax probe revealed that the agency "mistakenly" failed to pay corporate tax on earnings generated by its subsidiary in Japan due to its "lack of knowledge of the relevant laws," it said in a statement Monday.
The agency denied reports that it tried to evade taxes from the income it gained through the overseas activities of performers in its stable.
In March, the National Tax Service raided the agency's offices in the wealthy Gangnam district of southern Seoul and confiscated account records.
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