On March 18, reports came out that alleged YG Entertainment is undergoing tax investigation. Initially, the agency clarified they had not received any such notice.
On March 20, it was revealed that the agency is indeed undergoing a special tax investigation after all.
It is speculated to be related to earlier reports released this March that revealed Yang Hyun Suk and his brother owned a club called “Love Signal” and that club was suspected of tax evasion because it had been registered as a restaurant instead of a club, restaurants pay lower taxes in comparison to clubs.
It had been previously believed that Seungri owned that club but that was debunked. The club is owned by the Yang brothers.
On March 20, around 100 investigators were sent to the agency headquarters to retrieve any tax-related documents.
Regular tax investigations are held once every five years and the agency had gone under a regular one in 2016.
However, the team that was dispatched on March 20 is a special investigation team led by the 4th Investigation Bureau of the National Tax Service Seoul Regional Office.
In response to the reports, YG Entertainment responded that they will diligently cooperate with the tax investigation.
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