A defendant shall be punished by imprisonment with prison labor for not less than two years and a fine not exceeding 2.5 billion won.

3. When the defendant fails to pay the above fine.

Punishment of the crime

From October 2007 to February 2013, the Defendant operated “C” entertainment establishments on the first floor of Gangnam-gu Seoul (Seoul) and “D” entertainment establishments on the first floor of the same building, E and 7: under the terms and conditions of allocating profits.

1. In the course of operating the “C” and the “D” entertainment station (hereinafter “each of the instant entertainment stations”), the Defendant: (a) destroyed the books of account, such as a sculpture, which is a real owner of the business by disguised the business registration name; and (b) omitted sales, such as omitting a report on cash sales and credit sales; and (c) filed a false report by reducing the total of KRW 11,728,128,297 from 208 to 2013 by reducing the sales amount from 2013 to 11,728,297.

Accordingly, the Defendant, by fraud or other unlawful means, evaded each tax of KRW 730,981,640 in total in 2009, KRW 591,177,48 in total in 2010, KRW 544,481, KRW 481, KRW 085 in total in 2011, and KRW 535,097, and KRW 739 in total in 2012.

2. The Defendant in violation of the Punishment of Tax Evaders Act, by fraud or other unlawful means as described in paragraph (1) above, evaded either KRW 120,340,817, individual consumption tax of KRW 106,496,298, education tax of KRW 31,948,89, and KRW 42,243,00, individual consumption tax of KRW 37,383,186, education tax of KRW 11,214,956, and KRW 643,293,293 of the aggregate income tax of February 2013, as described in the list of crimes in attached Table 1.

Summary of Evidence

1. Partial statement of the defendant;

1. Statement made by each prosecution with respect to G and H;

1. A written accusation;

1. An investigation report (a record analysis of the suspected violation of the Act on the Special Cases concerning A of Domestic Entertainment Workers (Embezzlements), list of service charges reports and the amount attached on January 2, 2013 to D amusement drinking places, attachment of C/ C’s standard value-added tax assessment certificate, attachment of C/D amusement shop’s daily report, monthly report, etc., and attachment of D’s additional value-added tax return, etc. related to D’s entertainment drinking places) and each of the relevant statutes.