Article 4 subparagraph 2 of the Act on Special Rural Development Tax (hereinafter referred to as the "Special Rural Development Tax Act") stipulates that reduction or exemption for farmers and fishermen or organizations whose members are farmers and fishermen as prescribed by the Presidential Decree shall be non-taxation for agricultural special taxes. Article 4 (1) 1 of the Enforcement Decree of the same Act (hereinafter referred to as the "Decree") provides that one of the "those as prescribed by the Presidential Decree" under Article 4 subparagraph 2 of the same Act (hereinafter referred to as the "Act") shall be one of the "those as prescribed by the Presidential Decree", Article 63 of the Regulation of Tax Reduction and Exemption Act (hereinafter referred to as the "Act on the Regulation of Tax Reduction and Exemption for Agricultural and Fishing Villages") stipulates that the land directly cultivated by a person falling under Article 5 (1) 1 or 2 of the Act on the Regulation of Tax Reduction and Exemption for Agricultural and Fishing Villages (including the land subject to non-taxation, reduction and exemption, and small-amount collection for eight years or longer) shall not apply to the special measure under Article 4 (7) of the same Decree or the special measure under Article 16 through 13 of the Addenda of the same Act.

Meanwhile, Article 63(1) of the Early Reduction and Exemption Act (amended by Act No. 4666 of Dec. 27, 1993) and Article 16(3) of the Addenda provide for the exemption or reduction of capital gains tax on income accrued from the transfer of land, etc. for public business. Article 16(3) of the Addenda of the Early Reduction and Exemption Act provides for the applicable case of reduction and exemption under Article 63(1) of the Early Reduction and Exemption Act, which provides for the exemption or reduction of capital gains tax on land, etc. for public business and provides for the exemption or reduction of capital gains tax under Article 63(1) of the Early Reduction and Exemption Act which provides for the exemption or reduction of capital gains tax on land, etc. for the same purpose as those of Article 63(1) of the Early Reduction and Exemption Act, and thus, it is reasonable to directly apply the said exemption or reduction of capital gains tax to the extent that it is separate from those of Article 63(1) of the said Act (see Supreme Court Decision 95Nu1034, Jan. 26, 19967).

Therefore, the court below's decision that although capital gains tax on the land of this case was reduced or exempted pursuant to Article 16 (3) 1 of the Addenda to the Chonhae Act, it is proper to take measures that the land category is not farmland but forest land, and that capital gains tax reduction or exemption on the land of this case is not subject to non-taxation on agriculture under the above legal principles, and there is no error of law such as misunderstanding of legal principles as to the scope of application under Article 4 (7) of the Decree,

Therefore, the appeal shall be dismissed and the costs of appeal shall be assessed against the plaintiff who is the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Jeong Jong-ho (Presiding Justice)