2. The costs of lawsuit shall be borne by the Plaintiff.

A. In order to construct a rental house on September 14, 2012, the Plaintiff acquired a parcel of 488.8 square meters (hereinafter “instant land”). On October 17, 2010, the Plaintiff reported and paid acquisition tax, local education tax, and special rural development tax (i.e., KRW 26,200,000 for local education tax of KRW 2,620,000) to the Defendant on the aggregate of acquisition tax, local education tax, and special rural development tax (hereinafter “acquisition tax, etc.”) on the instant land (i.e., KRW 1,310,000 for local education tax of KRW 26,20,000).

B. On November 6, 2012, the Plaintiff issued a rental business registration certificate with the content of constructing an urban residential house with an exclusive area of 40 square meters or less on the instant land and operating a rental business. On the following day, the Plaintiff submitted an application for reduction and exemption of acquisition tax, etc. on the instant land to the Defendant, and received full refund of KRW 30,130,000 on November 19, 2012.

C. On December 21, 2012, the Plaintiff newly constructed two buildings on the instant land (the instant rental housing with a size of 635.96 square meters, hereinafter referred to as “instant rental housing”), and the other is the retail store with a size of 131.59 square meters.

As a result of an overall investigation on the reduction of and exemption from rental housing around July 2016, the Defendant found that the Plaintiff failed to file a return or pay acquisition tax, etc. on the non-residential area of 131.59 square meters among the instant land, which was fully refunded on November 9, 2012, and around September 1, 2016, imposed local education tax of 549,540 won (including additional tax of 2,188,730 won) (including additional tax of 182,120 won) on the non-residential area of the instant land, including acquisition tax, etc. of 131.59 square meters on the non-residential area of the instant land, and imposition of additional tax of 6,68,910 won (including additional tax of 5,862,970 won) on the non-residential area of 131.59 square meters (hereinafter referred to as “instant disposition”), and imposition of additional tax after the first imposition of additional tax.

E. On September 19, 2016, the Plaintiff asserted that the part of KRW 1,671,960 regarding the imposition of penalty tax against the nonperformance of payment was unlawful. The Cheongnam-do Governor.