(including) revoke the disposition of imposition.

2. The costs of the lawsuit are assessed against the defendant.

Cheong-gu Office

The same shall apply to the order.

A. 23 persons such as CCC and the network BB (hereinafter referred to as “the network” on May 19, 2009), which were owners of 200-5 and 12 lots of land, Seoul, ○○○○○-dong, 200-5 and 12 lots of land (hereinafter referred to as “instant land”) (hereinafter referred to as “members”) were reduced to 17 persons, and hereinafter referred to as “members”) established DDD Development Association (hereinafter referred to as “the instant association”) on September 20, 1996 for the purpose of carrying on the sales or lease business by newly building commercial buildings on the instant land.

B. On December 30, 200, the instant association newly constructed D Building consisting of 1,878 stores on the instant land (hereinafter referred to as the “instant commercial building”) and on January 11, 2001, after completing the registration of initial ownership of the instant trade association’s name, sold 1,600 stores to the general public, granted the right to use for 30 years the portion corresponding to the site ownership of the sold store between the buyer and the buyer, and entered into an additional contract for land use with the buyer for 1,14.1 billion won in advance from the buyer in return, after receiving the aforementioned 1,14.1 billion won in advance from the buyer and disposing of it as the buyer’s rent (hereinafter referred to as the “rent of this case”). The value-added tax shall be levied from 201 to 2008 by treating the amount calculated as the rental period (30 years) and the selling area as the supply price.

The report and payment were made.

C. However, after the sale of the commercial building in this case, a majority of the land owned by the association members was transferred to a third party (hereinafter referred to as "non-members") due to reasons such as voluntary auction, etc., and thereafter, in a lawsuit seeking the return of unjust enrichment filed by some non-members against the association of this case or the buyer of this case, the association of this case and the buyer of this case are obligated to return unjust enrichment equivalent to the rent due to the possession and use of the land annexed to the store to the non-members who have acquired part of the land in this case." After the decision became final and conclusive, the association of this case, upon reporting each value-added tax from the first half of 2009 to the first half of 2010, excluded the rental fee of this case from the sales amount.

D. The director of the regional tax office of this person deemed the members to be jointly and severally liable for tax payment and notified the members of each value-added tax from 1st to 1st 2010 upon the omission of the report on the rental fees for players in 2009 to 1st 2010. Accordingly, some members such as CCC filed a lawsuit seeking revocation of the above dispositions. The appellate court (Seoul High Court 2012Nu36981) established for the joint development, etc. of the instant commercial building and newly constructed the instant commercial building for the purpose of joint development of the commercial building and completed registration of preservation of ownership in the name of the company. The association was an independent organization and organization such as the head of the general assembly decision-making institution and the head of the association, the executive body, etc. prepared the articles of association for the purpose of the establishment and completed registration of preservation of ownership in the name of the commercial building. The result of the association was carried out by the majority majority, regardless of the change of members, and continued to be an independent organization regardless of the change of members.

E. After that, the director of the mid-term Tax Office conducted a value-added tax survey on the instant trade association from the second to the second period from 2010 to the second period from 2013, and subsequently notified each of the tax base of value-added tax on the instant athletes’ rent to the tax office having jurisdiction over the instant trade association, and notified each of the tax base of value-added tax for each of the instant athletes’ rent to be corrected and notified to

F. On April 18, 2016, the Defendant issued a correction and notification of the additional tax amounting to KRW 22,643,983 (including additional tax amounting to KRW 8,714,384) (hereinafter “instant disposition”) on April 18, 2016, of KRW 51,96,730, an amount equivalent to the Plaintiff’s share in the Plaintiff’s portion of inheritance, out of the rent for the fore portion of 2010, the amount of KRW 99,67,157, which was equivalent to the Plaintiff’s share of inheritance (hereinafter “instant disposition”).

G. The Plaintiff dissatisfied with the instant disposition and filed an appeal with the Tax Tribunal on July 4, 2016, and the Tax Tribunal dismissed on October 4, 2016.

Facts without dispute over the basis of recognition, Gap evidence 1 through 5, Eul evidence 1 through 6, and 8

each entry and the purport of the whole pleading, including each number, shall be

2. Whether the instant disposition is lawful

A. The parties' assertion

1) The plaintiff's assertion

The association of this case constitutes a non-corporate association and its members, including the deceased, were distributed according to their share of the leased income as members of the non-corporate association. However, on May 19, 2009, the deceased died on and after the articles of incorporation of the association of this case acknowledged the inheritance of membership. As such, the deceased lost the status of membership of the association of this case due to the death of the deceased, and thus, the lease income in 2010 does not belong to the deceased and the Plaintiff as a heir, and only the settlement of the amount of the contribution and the dividends distributed to the deceased were occurred between the deceased and the deceased. Accordingly, the disposition of this case premised on the premise that the lease income was generated to the Plaintiff is unlawful.

2) The defendant's assertion

Since the deceased received the share of the rental fee of this case from the association of this case in a lump sum and did not refund it, the deceased was liable to pay global income tax on the revenue of the rent divided in proportion to the rental period of 30 years pursuant to Article 51 of the Enforcement Decree of the Income Tax Act. The deceased’s status and the rental income to be reverted to the deceased (the amount equivalent to 9.99% of the shares of union members at the time of the deceased’s death, among the rental fee of this case), upon the death of the deceased, succeeds to the heir who succeeded to the comprehensive rights and obligations on the deceased’s property. Thus, the

B. Relevant statutes

It is as shown in the attached Form.

C. Facts of recognition

1) According to the articles of association (amended on January 7, 2001) of the instant association, the purpose of the instant association is to engage in the joint development projects of the instant commercial building, the affairs related to the sale and lease of commercial buildings, the affairs related to the management and operation of commercial buildings, and all businesses incidental thereto (Article 2). The scope of the business objectives to be implemented by the instant association is the site of 3,775 square meters in total area of the instant land (Article 3), and the partners shall be the owners of real estate falling within the scope of the purpose stipulated in Article 2 as of January 26, 1998 and shall be the owner of each lot number registration (Article 4); the partners shall not sell, transfer, establish, etc. the invested real estate to a third party other than the partners without the approval of the association; and if they violate this, they shall compensate for damages to the association (Article 25).

2) On the other hand, the instant union and its members prepared a "basic agreement with EEE Co., Ltd., a contractor, on November 1, 1998, to clarify their mutual equity in business and the relationship of rights and obligations between the union members (Article 9), and to determine the equity ratio of the union members (Article 9), prohibit transfer of the finalized equity shares, and prohibit the union members from withdrawing from the union, but the rights and obligations for the union and the contractor are determined according to the equity ratio at the time of transfer or withdrawal (Article 10), and the business profits are distributed to the union members after the final settlement of accounts, but the final settlement of accounts is made after deducting all expenses directly related to the promotion of the project (Article 21). The equity ratio of the deceased at the time of the final settlement was 9.9%.

3) The instant association entered into a contract on the sale in lots and the use of a store with the buyer, and the buyer pays the total amount of the value of the building, value-added tax, and land usage fees to the deposit account in the name of the contractor as the sale price, and the instant association, which deducts monthly land usage fees from the land usage fees paid in advance from the date of commencing the use of the land, and agreed to pay value-added tax on the use of the land additionally

4) At the time of the establishment of the instant association, members were 23 persons, and six of whom were withdrawn. Of the instant land, the ratio of land size owned by non-members out of the instant land size reaches 71.76% as follows, as the ownership of the instant land among the instant land was transferred from February 1998 to August 2008 to non-members due to voluntary auction, etc. and around 2010.

Division Area

Transfer of land ownership 2,249.00 square meters

459.92 square meters out of membership.

Total land of non-members 2,708.92 square meters

The total area of the instant land is 3,775.00 square meters.

Non-members' land size ratio to 71.76%

5) Meanwhile, despite the transfer of ownership on the instant land, the instant association was confirmed to have prepared a detailed statement of distribution by joint business proprietor with respect to the income of the instant athletes’ rent by the equity shares registered with the National Tax Service and reported to the part attributable to 2009. According to the details of the instant association’s report, 23 persons from 2001 to 2007, and 27 persons from 2008 to 2007, and 17 members’ equity shares in the current statement of distribution by joint business proprietor are the same as the equity shares determined at the time of November 1, 1998.

6) According to the details of the deceased’s report on the tax base of inheritance tax following the deceased’s death, the part owned by the deceased among the instant land is included in the inherited property, and 381,753,852 of the joint ventures (based on December 31, 2008) concerning the instant association are included in the inheritance obligation.

Facts without dispute over the basis of recognition, entry and pleadings in the evidence of paragraphs 2 through 5, 7, 12 through 14 of this Article, and

The purport of the whole

D. Determination

Article 13 (1) of the former Framework Act on National Taxes (amended by Act No. 10405, Dec. 27, 2010; hereinafter referred to as the "Framework Act on National Taxes") provides that "unregistered associations, foundations, or other organizations which are incorporated with permission or authorization from the competent authority, or unregistered associations, foundations, or other organizations registered with the competent authority pursuant to Acts and subordinate statutes, or foundations which have basic property contributed for the purpose of public interest and have not been registered with the competent authority and do not distribute profits to its members shall be deemed corporations and shall be governed by this Act and other tax-related Acts." Article 13 (2) of the same Act provides that "any unincorporated associations, foundations, or other organizations, other than incorporated associations, foundations, or other organizations, which are deemed corporations pursuant to paragraph (1), appoint representatives or managers with the provisions concerning the organization and operation of organizations, and independently own and manage profits and property in their own account and name, and does not distribute profits to the members of associations, foundations, or other organizations."

This Act and other tax-related Acts apply to the representative or manager who has filed an application with the head of the tax office having jurisdiction over the corporation.

Article 2 (3) of the former Income Tax Act (amended by Act No. 10408, Dec. 27, 2010; hereinafter referred to as the "Income Tax Act") provides that "any association, foundation or other organization, other than an organization deemed a corporation under Article 13 (4) of the Framework Act on National Taxes, shall be deemed a resident or non-resident and shall be subject to this Act" and the former Enforcement Rule of the Income Tax Act (amended by Ordinance of the Ministry of Strategy and Finance No. 323, Feb. 23,

Article 2(1) of the Income Tax Act provides that "any association, foundation, or other organization that is deemed a resident or a nonresident and whose representative or manager is appointed pursuant to Article 2(3) of the Income Tax Act, but the method of distributing profits or the ratio of distributing profits is not determined shall be deemed to be one resident or a nonresident and the law shall apply accordingly." In applying Article 2(2) of the Income Tax Act, where profits are distributed in fact even if the method of distributing profits or the ratio of distributing profits is not explicitly determined, it shall be deemed that the members of such organization, etc. jointly run the business." In addition, Articles 87(1) and 43(2) of the Income Tax Act of the same Act provide that a joint business place with real estate rental income, business income, or forest income shall be calculated for each joint business place with the income, and the amount of income shall be calculated for each resident according to the amount of income distributed or to be distributed.

In full view of the contents and legislative intent of the above provisions, in cases where an unincorporated association, foundation or other organization is not an organization deemed a juristic person under Article 13(4) of the Framework Act on National Taxes, income tax shall be imposed pursuant to the Income Tax Act; however, in cases where an organization is a non-profit organization that does not distribute profits to its members, income tax shall be imposed by deeming it as one resident who is the taxpayer. In cases where an organization is a profit-making organization that distributes profits to its members, it shall not be deemed as one resident who is the taxpayer, and as prescribed in Articles 87(1) and 43(2) of the Income Tax Act, income tax shall be imposed on the income distributed to each of its members as a taxpayer (see, e.g., Supreme Court Decision 2010Du19393, Jan.

According to the above facts, the association of this case constitutes an unincorporated association, and members including the deceased establish the association of this case for the business of selling, leasing, and managing the commercial building of this case, and invested in the association of this case the right to use the land of this case for the business of constructing the commercial building of this case, and the association of this case distributes profits such as the income from the lease to the buyer of this case to the buyer of this case according to the determined equity ratio regardless of the loss of land ownership. Thus, the profits from the business of the association of this case are distributed to the buyer of this case according to the determined equity ratio regardless of the loss of land ownership

Meanwhile, Article 24 (1) of the Income Tax Act provides that "the total amount of income of a resident shall be the sum of the amounts imported or received in the pertinent taxable period." Article 51 (3) 1 of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 23588, Feb. 2, 2012) provides that "the total amount of income of a tenant who leases real estate in relation to the calculation of the total amount of income of his/her business income shall be the sum of the amounts calculated by dividing the rent by the number of months during the contract period." Thus, among the rental fee of the player of this case, the amount divided in 2010 shall be the sum of the amounts calculated by leasing the land to the purchaser, and the taxpayer shall be the member of the association of this case at the time of 2010. However, since the status of a non-corporate partner of the association of this case shall not be succeeded to unless otherwise stipulated by the articles of association, the deceased's status as a member of the association of this case shall be deemed unlawful.

3. Conclusion

If so, the plaintiff's claim is reasonable, and it is decided as per the disposition.

(c)