[취득세부과처분취소][공1996.10.1.(19),2921]
Whether a company for housing construction, etc. acquired land for housing construction and did not use it for housing construction within four years constitutes non-business land (affirmative)
In the event that a corporation whose business is the construction, supply or lease of housing does not use the land acquired for the purpose of housing construction for any purpose other than housing construction within four years from the date of its acquisition or use for housing construction for a period of four years, the heavy tax rate shall apply because such land does not fall under “land not deemed land for non-business use by the corporation”
Article 112(2) of the Local Tax Act; Article 84-4(1) and (4)10 of the former Enforcement Decree of the Local Tax Act (amended by the Presidential Decree No. 14481 of December 31, 1994)
[Plaintiff, Appellant] Plaintiff 1 and 2 others (Law Firm Han-sung, Attorneys Lee Jong-soo and 1116, Counsel for plaintiff-appellant)
Crin Construction Co., Ltd. (Attorney Seo-jin, Counsel for the plaintiff-appellant)
Head of Busan Metropolitan Government
Busan High Court Decision 95Gu4506 delivered on March 20, 1996
The appeal is dismissed. The costs of appeal are assessed against the plaintiff.
We examine the grounds of appeal by the Plaintiff’s attorney.
According to Article 84-4 (1) and (4) of the Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 14481 of Dec. 31, 1994), where a corporation which intends to build, supply, or lease a house does not use the land acquired for the purpose of housing construction for purposes other than housing construction within four years from the date of acquisition or use it for housing construction within four years from the date of acquisition, the land concerned does not correspond to the "land which is not deemed land for non-business purpose of the corporation" and thus the heavy tax rate shall apply.
According to the records, the plaintiff is a company that aims to construct housing and has not used the land in the housing construction for four years after acquiring the land in this case for the purpose of constructing housing. If the facts are the same, the land in this case does not fall under the "land which is not deemed land for non-business use of the corporation" and the heavy tax rate shall apply.
The judgment of the court below to the same purport is just and there is no error of law by misunderstanding facts against the rules of evidence, or by misunderstanding the legal principles on non-business land of a corporation subject to heavy acquisition tax, and there is no ground for all of the arguments.
Therefore, the appeal shall be dismissed and all costs of appeal shall be assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.
Justices Shin Sung-sung (Presiding Justice)