Daesung Wrapped Up in Controversy Regarding Alleged Tax Evasion and Illegal Adult Entertainment Establishments Operating in His Building
In the midst of reports being published about illegal adult entertainment establishments being operated in a building owned by BIGBANG’s Daesung, allegations of tax evasion have also surfaced. Reports are stating that since purchasing the building, Daesung has been paying property taxes that apply to establishments registered as a general business.
According to a report published by Channel A on the 26th, Daesung’s building falls under the category of being an entertainment bar, which would make it subject to heavy taxation. Owners of such buildings reportedly must pay up to 16 times as much in property taxes as owners of general buildings. According to reports, although there are a total of five adult entertainment establishments in Daesung’s building, Daesung has been paying property taxes that apply to general businesses since the building was purchased in 2017.
The Gangnam District Office has revealed that they plan on launching an investigation after finding out the circumstances surrounding Daesung’s underpayment of taxes. “If we confirm [the allegations] to be true after carrying out an investigation, we plan on forcibly collecting additional property taxes from Daesung,” stated an official from the Gangnam District Office.
The Seoul Regional Tax office has also launched an investigation into the building owned by Daesung. It appears the tax office suspects that the owners of the entertainment establishments deliberately failed to pay the additional special consumption taxes that apply to such businesses by falsely registering as general restaurants. They will also be looking into whether Daesung underreported rental income by comparing his rental income on paper to the actual rent charged to the businesses.
With allegations of tax evasion being reported in addition to the previous reports regarding the illegal businesses in Daesung’s building, the entertainer seems to have the world against him. It has been reported that the police will soon make a decision about whether or not they will investigate Daesung.
According to the police, four establishments in Daesung’s building were caught violating facility standards on April 22nd. One particular establishment which was registered as a general restaurant was caught in a crackdown for hiring a “female assistant” (sex worker). The remaining three establishments, which were also registered as general restaurants, were found to have installed audio equipment (karaoke machines) and being run as adult entertainment establishments. “We are looking into whether the building owner, Daesung, can be charged with aiding and abetting illegal operations,” stated a police official.
Daesung, who is currently serving in the military, released a statement through his label YG Entertainment that read: “The building has been under my name since I purchased it just before enlisting in the military. I entered the military almost immediately after purchasing [the building], and as a result, I’ve been inadequate in how I managed the building. For this, I apologize. I will be taking immediate legal action against the businesses where illegal activities are confirmed to have taken place, and I intend to do my best to fulfill my responsibilities as a building owner.”
Meanwhile, Daesung is expected to be discharged from mandatory military service in December after enlisting in the army in March of 2018.