Incheon, South Korea – Incheon City has taken a novel approach to collecting unpaid taxes by targeting the royalties of celebrities. The city has become the first in South Korea to conduct a comprehensive investigation into the royalty income of celebrities, resulting in the recovery of 41 million won in unpaid taxes from 47 individuals.

Targeting Hidden Income

Celebrities such as singers, actors, comedians, and writers receive royalties through various cultural and arts organizations. However, tracking these payments has traditionally been challenging due to the unique way in which royalties are distributed. This has created a loophole that some taxpayers have exploited to evade their tax obligations.

Incheon City launched an investigation in July to address this issue, examining the royalty records of 11 trust organizations designated by the Ministry of Culture, Sports and Tourism. By identifying celebrities who owed back taxes and had received royalty payments, the city was able to recover a significant amount of unpaid taxes.

Targeting High-Profile Tax Evaders

The city's efforts have been particularly successful in targeting high-profile individuals. Among those who had their royalties seized were a well-known comedian and a popular singer, both of whom owed substantial amounts in back taxes.

A New Approach to Tax Collection

Incheon City's initiative marks a significant departure from traditional methods of tax collection. By targeting hidden sources of income, such as royalties, the city is demonstrating its commitment to closing tax loopholes and ensuring that everyone pays their fair share.

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