Defendant shall be punished by imprisonment for a term of two years and six months and by a fine of KRW 1,410,000.

The above fine shall not be paid by the defendant.

Punishment of the crime

[Criminal record] On October 6, 2016, the Defendant was sentenced to a suspended sentence of one year for a violation of the Trademark Act at the Busan District Court, and the said judgment became final and conclusive on October 14, 2016.

[2] The Defendant: (a) established “E” at the Gangseo-gu Seoul Metropolitan Government D Complex for the purpose of wholesale of household transfer from May 2010 to March 2013; and (b) changed the name of “G” from April 2013 to November 2014; and (c) operated E in the name of “H I” husband and wife.

No person shall evade taxes or receive taxes by fraudulent or other illegal means.

Nevertheless, the Defendant registered F as a nominal representative in carrying out the business under the name of E, and filed a tax return without issuing a tax invoice for the sales revenue generated to a large number of borrowed accounts, such as employees, relatives, etc., by omitting sales revenue by means of remittance, etc., with intent to evade taxes such as value added taxes and comprehensive income tax imposed on E and G.

1. Evasion of tax in 2012 - Violation of the Punishment of Tax Offenses Act;

A. In filing a global income tax return for the business year 201 via J around May 26, 2012, the Defendant evaded KRW 72,059,663 in total in the name of E from January 1, 201 to December 31, 2011, the Defendant evaded only KRW 1,198,434,079, without paying KRW 72,059,63,63 equivalent to the total amount of sales in the name of E from January 1, 2011 to December 31, 2011.

B. In filing a return of value-added tax on July 25, 2012 on the Internet via the Tax Agent J on July 25, 2012, the Defendant is obligated to transfer the sales amount to the borrowed account.