A joint investigation team has added tax evasion charges against Lee Man-hee, the de facto leader of the Shincheonji religious group, for allegedly evading approximately 7.5 billion won (about $6 million USD) in taxes. The charges stem from allegations that the group concealed income generated from its businesses.
Expanded Investigation into Shincheonji’s Finances
The joint investigation team announced on the 24th that Lee Man-hee, along with a former Shincheonji business manager identified as Mr. A, has been additionally charged with violating tax laws. Lee was taken into custody, while Mr. A was booked without detention. The Shincheonji religious organization itself has also been indicted on charges of violating the Act on the Punishment of Special Crimes, including tax evasion.
Investigators allege that Lee and others involved systematically evaded corporate taxes and value-added taxes totaling 7.57 billion won between 2016 and 2020. The prosecution believes that Shincheonji disguised its revenue-generating businesses, such as its nationwide church branches, as individual ventures belonging to followers. This allowed them to conceal profits and avoid tax obligations.
The alleged method involved double-counting business assets and hiding cash revenues. This practice, according to the investigation team’s findings, enabled the significant tax evasion.
History of Tax Investigations and Reopening of Case
The National Tax Service initially launched a tax investigation into Lee and 12 Shincheonji branches in 2020, referring the case to prosecutors on suspicion of tax evasion. In 2021, the Suwon District Prosecutors’ Office decided not to indict Lee, but the joint investigation team decided to re-examine the case in February of this year.
This is not the first time Lee Man-hee has faced legal scrutiny. He is currently detained on charges of allegedly orchestrating the mass joining of over 50,000 followers into the People Power Party. Investigators suspect that Lee coerced followers to join the party between 2021 and 2024 with the intention of influencing the party’s presidential and parliamentary nominations.
The charges also include allegations that Shincheonji obstructed the People Power Party’s nomination process through large-scale, organized party affiliations. The investigation team has previously arrested Lee twice, on the 29th of last month and the 13th of this month, citing the imminent statute of limitations on these alleged offenses.
Shincheonji’s Business Operations and Alleged Deception
Shincheonji, officially known as the Shincheonji Church of Jesus, the Temple of the Tabernacle of the Testimony, has faced numerous allegations regarding its financial practices and organizational structure. The current tax evasion charges focus on how the church managed its various business ventures and reported its income.
Investigators contend that by classifying church-run businesses as personal enterprises of its members, Shincheonji was able to operate these ventures without the financial transparency typically required of religious organizations or corporations. This alleged misclassification allowed for the accumulation of untaxed profits.
The practice of inflating asset values and underreporting cash transactions is central to the prosecution’s case. These tactics are believed to have been employed to systematically reduce the declared revenue, thereby lowering the tax liabilities for both the organization and its associated businesses.
Broader Legal Challenges Facing Shincheonji
The tax evasion allegations are part of a larger pattern of legal challenges that Shincheonji has encountered. The group has been under scrutiny for its recruitment methods, its role in the rapid spread of COVID-19 in South Korea, and its alleged political interference.
The charges related to influencing political elections highlight concerns about the potential for large religious organizations to exert undue influence on the political landscape. The investigation into the mass membership drive within the People Power Party suggests a deliberate strategy to impact electoral outcomes.
The joint investigation team’s decision to re-open the tax evasion case indicates that new evidence or a revised legal interpretation has emerged, prompting a renewed focus on the group’s financial dealings. The urgency in bringing these charges, as noted by the repeated arrests due to the statute of limitations, underscores the seriousness with which authorities are treating these allegations.
Conclusion
The ongoing investigation into Shincheonji and its leader, Lee Man-hee, continues to unfold, with new charges of significant tax evasion adding another layer to the legal complexities surrounding the organization. The outcome of these proceedings will likely have implications for how religious organizations manage their finances and engage with the broader society and political system in South Korea.
