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JW Pharmaceutical (Photo = JW Pharmaceutical) |
[Alpha Biz= Kim Jisun] The prosecution has charged JW Pharmaceutical and its CEO with tax evasion for falsely accounting rebate expenses under other categories, such as employee welfare costs, leading to a corporate tax evasion of over 1.5 billion KRW.
According to legal sources on Wednesday, the Seoul Central District Prosecutor’s Office, led by Chief Prosecutor Lee Jin-yong from the Tax Crimes Investigation Division, announced on the 26th that they had indicted JW Pharmaceutical and CEO Shin Young-seob without detention on charges of violating the Act on the Aggravated Punishment of Specific Crimes (tax-related) and the Punishment of Tax Crimes.
The prosecution claims that JW Pharmaceutical evaded 1.56 billion KRW in corporate taxes from 2016 to 2018 by including unclear expenses, totaling 7.8 billion KRW, in their business expenses.
It was reported that the company had used canceled credit card receipts and receipts from individuals who were not employees to cover rebate expenses under various other categories, including employee welfare costs, and then falsely included these as legitimate business expenses.
Earlier, the Seoul Western District Prosecutor’s Office had indicted JW Pharmaceutical on charges of providing rebates, while the Seoul Central District Prosecutor’s Office has indicted doctors who received the rebates from JW Pharmaceutical.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
