Article 14 (Real Taxation)

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

The reasoning for this case is that the court agreed on the 2nd 4th 2th e.g., the contract amount of 176,00,000 won and 88,000 won for the first e.g., 200 won and 440,000 won for the second e.g., 200 won for the second e., 30 years for the second e., 5th 7 years for the second e.g., 40 days for the second e., 5th e., 5th e. 7th e., 5th e., 5th e., 5th e. 8th e., e. 7th e. 7th e., 5th e., e. 9th e., e., 5th e., e., 6th e., e. 1st e., 7th e., e.

2. Parts in height:

2. Whether the disposition is lawful;

D. Determination

1) Determination as to the argument of the above A. 1

(1) In the event that club members with personal ties of the group jointly live in a house selected by each person through internal settlement procedures after jointly conducting authorization, permission and reporting procedures in the selection and purchase of a building site, a new house construction project that leads to a construction project, a person who agreed to provide a housing construction project with funds such as material costs, etc. from club members, and agreed to provide a housing construction project that constructs a house in the form prescribed by club members, and provided only services, shall not be deemed as a person who constructed and sold a house under Article 32 (1) 1 of the Enforcement Decree of the Income Tax Act, as one of the Housing Construction and Sales Business Act.

However, Article 14(1) of the Framework Act on National Taxes provides that if the ownership of income, profit, property, act, or transaction subject to taxation is merely nominal and there is a person to whom such income, profit, property, act, or transaction actually belongs, the person to whom such income, profit, or transaction belongs shall be liable for tax payment. Article 14(2) provides that the provisions on the calculation of tax base in tax-related Acts shall apply according to the substance, notwithstanding the name or form of income, profit, property, act, or transaction, and declares the substance of the taxation. Meanwhile, in interpreting the substance of the contract, the objective meaning given by the party to the act of indicating it is clearly established in the contents of the contract. In addition, the objective meaning given by the party to the act of indicating it is not clearly expressed by the party’s language and text, the objective and background leading up to the contract to be achieved by the party to the contract, the purpose and genuine intent of the party to the contract to whom the construction contract was executed, and the purpose and purpose of the construction agreement and purpose of the construction agreement, as stated in the construction agreement between the Plaintiff and the real owner of new housing construction agreement.

(2) As asserted by the Plaintiff, it is recognized that the registration of ownership transfer for the site of the instant house has been made in the name of the club of this case, and the building permit was made in the name of the club of this case after the completion of the instant house, and that the registration of ownership preservation was made in the name of the club of this case, and that the Plaintiff is entrusted with all duties for the progress of the construction project of the instant house from the club of this case and the agreement between the Plaintiff and the club of this case.

However, as seen earlier, ① the Plaintiff’s decision on the premises for construction of the instant housing was made first by the Plaintiff, regardless of the language and text of the said club, and was paid the down payment and intermediate payment with the Plaintiff’s funds. Then, the Plaintiff calculated the cost of purchase of the instant building site and the purchase price for each type of house to be constructed on the basis of this determination, and the instant club members individually found the advertisement containing the above contents, and concluded a contract with the Plaintiff to supply the instant housing (including shares of the instant building) at an amount determined in advance, by taking into account the floor plan, location, etc. of each type of house presented by the Plaintiff, and then the Plaintiff could not be seen as having been separated from the Plaintiff’s housing construction and sales business under the title of the instant club 6, and thus, the Plaintiff could not be deemed as having agreed upon the Plaintiff’s right to purchase the instant housing under the premise that it would not have been separated from the Plaintiff’s housing construction and sales business under the title of the instant housing construction agreement.

3. Conclusion

Therefore, the judgment of the court of first instance is just, and the plaintiff's appeal is dismissed as it is without merit, and it is so decided as per Disposition.

[Seoul Administrative Court 2007Guhap43402 (2008.04)]

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

A. The Plaintiff, a construction company established on January 25, 1991 from 200 to 2004, provided housing construction services to ○○○○○○○○○○○○○○○○○○○○ (hereinafter “instant housing”), etc. on the 11st spot, such as “○○○○○○○○○○○○○○○” (hereinafter “instant housing”), the Plaintiff reported and paid value-added tax and corporate tax on KRW 66,826,720,00 of the supply value of the contracted construction.

B. The Defendant newly built high-class loans at the above 11 sites and sold them directly to the same persons, as indicated in the calculation of earnings and deductible expenses, included 71,220,89,303 won in the sales revenue of newly built houses in gross income, and included 70,746,720,112 won in the sales revenue of new houses in deductible expenses as indicated in the separate calculation of gross income and deductible expenses, and based on this, as stated in the separate calculation of deductible expenses, based on the following: ① KRW 479,324,010 in corporate tax for the business year from 200 to 2004; ② from February 2, 2000 to February 2, 2002, and KRW 2,190,870,700 in total, and KRW 367,879,750 in the amount of income accrued from 201 to 203, each of the above dispositions imposed on the Plaintiff ○○, including the above disposition amount reverted to 2000 to 4181.

C. On October 4, 2005, the Plaintiff dissatisfied with the instant disposition and filed a petition with the National Tax Tribunal for a trial on October 4, 2005, but the National Tax Tribunal filed a petition with the Plaintiff on August 30, 2007.

[Grounds for Recognition: Evidence 1-1 to 12, Evidence 1-2, evidence 3-1 through 5, evidence 4-1 to 4, evidence 5-1, 2, evidence 6-1 to 4, evidence 1-2-1 to 6, evidence 3-1 to 3-1, 2, 3, evidence 6-1, 6-2, each of evidence 6-1, 2-2 and 6-2, and the purport of whole pleadings]

2. Whether the disposition is lawful;

A. The plaintiff's assertion

1) The Plaintiff purchased the instant housing site on its own, and completed the registration of ownership transfer in the name of the housing consumer, and the construction permit was also changed in the name of the housing consumer after obtaining it under the name of the original owner of the instant housing site. After the completion of the construction, the registration of ownership transfer was made in the name of the housing consumer, and the registration of ownership preservation was made in the name of the housing consumer and the civil and criminal liability was borne by the housing consumer. However, the Plaintiff was entrusted with the construction of the instant housing from the housing consumer under the delegation contract and provided housing construction services to them, and received the fees therefor. Thus, the instant disposition based on the premise that the Plaintiff newly built and sold the instant housing was in violation of the principle of no taxation without the law because it was

2) Before the instant disposition, tax authorities conducted two tax investigations on the Plaintiff around 1999 and around 2003 on two occasions, etc. on the same type of transaction as the instant transaction, and recognized the Plaintiff’s tax treatment by deeming it as the provision of housing construction services, thereby violating the principle of trust and good faith.

B. Relevant statutes

The entry in the attached Form shall be as follows.

(c) Fact of recognition;

1) On July 23, 2001, the Plaintiff: (a) purchased one’s own ○○○○○○○○○○○○ and a building on the ground owned by ○○○○○○○○○○○○, 553.5 square meters, from the purchase price of KRW 1,758,00,000; and (b) purchased each of the sites and above-ground buildings owned by ○○○○○ from each of ○○○; (b) purchased each of the same sites and above-ground buildings owned by ○○○○, ○○○, and ○○○○ from each of 1,634,00,000 won; and (c) received a building permit under the name of ○○ and Yang○○, a seller, at the same time as the remainder payment on November 30, 201, concluded that the Plaintiff completed the registration

2) Then, on each of the above lands, the Plaintiff made an advertisement for the sale of lots against many unspecified persons by creating data on the sales promotion of ten households (Nos. 101, 102, 201, 202, 202, 301, 302, 401, 402, 402, 501, 502, and 502) of the instant housing in the same manner. The advertising data contains the usual sales price, the payment method, the construction period, the scheduled date, the floor plan, the level of internal and external paralysis, the location of the sales office and the telephone number, etc.

3) Subsequent to that, on November 5, 2001, the Plaintiff: on 100 and 101 of the instant housing, including the fact that it entered into a contract with Kim ○○ and 101 by drawing up an agreement for the same subparagraph: From September 3, 2001 to November 16, 2001, each of the instant housing is recruited through the above parcelling-out advertisement [Ma○○ (101), Yellow ○ (102), ○○○ (201), ○○○○○ (202), ○○○○○ and ○○○○ (301), 300, 300, 400, 50, 500, 60, 70, 50, 50, 60, 60, 80, 60, 500, 501, 400, 502, 501, 502, 502, 500, etc.

4) Meanwhile, the Plaintiff filed a building permit for the construction of the instant house with the head of ○○○○ and one other, prior to concluding the agreement individually with the instant club after the advertisement for sale in lots, and completed the registration of ownership transfer on September 4, 2001 with respect to the new site on December 6, 2001, the Plaintiff completed the registration of ownership transfer on March 11, 2003, when the construction was commenced on January 25, 2002 and the construction was completed almost after changing the name of the owner to the title of the instant club (in the case of subparagraph 101, the title was changed to ○○○ and 502, respectively) and completed the registration of ownership transfer on April 30, 203 with the approval of use from the head of ○○○ on April 7, 2003. < Amended by Act No. 6813, Apr. 30, 2003>

5) The instant club merely paid each fixed amount to the bank account under the name of the Plaintiff’s representative director, as down payment, intermediate payment, and remainder, and did not separately organize the club or prepare a construction contract contract between the Plaintiff and the Plaintiff. The instant club was not entirely involved in the purchase of land, design, construction, etc. relating to the construction of the instant house, and did not settle the agreed price, construction cost, etc. with the Plaintiff before and after the completion of the construction.

6) Meanwhile, with respect to the instant disposition, except for the new construction of the instant housing, the new construction of the housing in the remaining ten sites newly built by the Plaintiff from 2000 to 2004 was conducted in such a way as to purchase the first site and sell the housing after purchasing the housing site as in the new construction of the instant housing, and to individually enter into a mutual agreement with the persons recruited thereby, and completed the construction by receiving a fixed amount of agreement and completing the registration of ownership preservation in the future.

[Ground for Recognition: Facts without dispute, Gap 7 evidence, Gap 8-1 through 10, Gap 9-1, 2, Gap 10, 11, Gap 12-1 through 10, Gap 13, Gap 14-2, Gap 31-2, Eul 4-1, Eul 4-2, Eul 5, and the purport of the whole pleadings]

D. Determination

1) Determination as to the assertion of the above A.1

A) Article 14(1) of the Framework Act on National Taxes provides that if a taxable object is merely nominal, and there is another person to whom it actually belongs, the person to whom it actually belongs shall be liable to pay taxes. Article 14(2) provides that the provisions on the calculation of tax base in the tax-related Acts provides that the person to whom it actually belongs shall be liable to pay taxes, regardless of the name or form of income, profit, property, act or transaction. On the other hand, in interpreting the contents of the contract, the objective meaning given by the parties to the act of indicating is clearly established, first of all, the objective meaning given by the parties to the act of indicating is reasonably interpreted in writing, but the objective and objective meaning are not clearly expressed in the terms indicated by the parties’ language and text, the motive and circumstance leading up to the conclusion of the contract, the purpose of the contract to be achieved by the parties to the contract, the genuine intent of the parties to the contract, and the transaction customs of the building site shall be reasonably interpreted in accordance with the principles of logic and experience, and the purpose and method of the construction contract of the Plaintiff and the building owner.

B) The above facts and the evidence revealed as follows: ① the Plaintiff secured the land for the instant house in advance and recruited club members by advertising for sale to many unspecified persons; ④ all matters concerning the new construction and sale of the instant house were received by the Plaintiff through the sale advertisement; ② The club members of the instant case did not have any common or human relationship with the Plaintiff except for the Plaintiff’s demand for similar housing with those recruited through the sale advertisement; ③ the club members of the instant case did not constitute a meeting, or concluded a construction contract, and paid a fixed amount of the contract under the agreement with the Plaintiff in installments in a way similar to the general housing contract without any participation in the construction of the instant house; ④ The Plaintiff did not specifically disclose the details of the use of the construction cost to the club members of the instant case, or through settlement procedures for profits and losses by completing the construction of the instant house before and after the completion of the construction of the instant house; and the Plaintiff’s assertion that the Plaintiff was delegated the new construction of the instant house from the Plaintiff as part of the new construction of the instant house is unreasonable.

2) Determination as to the assertion of the above A.2

In general, in order to apply the principle of trust and good faith to the tax authority's act in tax law relations, the tax authority must give the taxpayer a public opinion that is the subject of trust, and the taxpayer should not be responsible to the taxpayer when the taxpayer trusted that the expression of opinion is justifiable, third, the taxpayer must trust the expression of opinion and act in which the taxpayer is in trust, and fourth, the tax authority's disposition against the above expression of opinion should result in a violation of the taxpayer's interest (see, e.g., Supreme Court Decision 2001Du403, Sept. 5, 2003). In this case, the defendant's second tax investigation against the plaintiff two times against the plaintiff, correction of the past's error of taxation and disposition of this case through a new tax investigation, and thus, the defendant cannot be viewed as having expressed the plaintiff's business behavior as a public housing construction service. Furthermore, this part of the plaintiff's business behavior cannot be viewed as having presented the plaintiff's opinion without any reason.

3) Sub-determination

Therefore, the instant disposition based on the premise that the new construction and sale of the instant housing, etc. was conducted as the Plaintiff’s housing construction and sales business is lawful.

3. Conclusion

Thus, the plaintiff's claim of this case is dismissed as it is without merit.

The details of inclusion of earnings and losses;

The following gold:

the amount of losses

Subjects

Amount (won)

Subjects

Amount (won)

Amount of sales revenue;

71,220,899,303

Land:

66,918,252,864

Design and Supervision Expenses

1,224,381,000

Special Bonuses

2,558,017,923

Tax-Free Purchase Tax Amount

46,068,325

Sub-committees

70,746,720,112

Details of taxation

No.

Sub-Items :

Taxation Period / Year Reversion

(won) Amount of tax

Date of notification of disposition;

1

legal person:

200

45,573,550

September 9, 2005

2

202

239,777,180

ʺ

3

2003

136,170,110

ʺ

4

204

57,803,170

ʺ

Sub-committees

479,324,010

5

Value-added Tax

200.2

874,705,400

ʺ

6

201.1

788,213,680

ʺ

7

201.2

33,816,680

ʺ

8

202.1

159,596,320

ʺ

9

202.2

30,819,970

ʺ

10

204.2

3,718,650

ʺ

Sub-committees

2,190,870,700

11

Wage and salary income tax (A)

201

15,154,690

ʺ

12

202

12,526,040

ʺ

13

2003

140,199,020

ʺ

Sub-committees

367,879,750

14

Notice of change in the amount of income (the representative contribution disposition);

200

724,432,55

September 1, 2005

15

201

598,651,753

ʺ

16

202

19,988,382

ʺ

17

2003

304,793,635

ʺ

18

204

176,252,459

ʺ

Sub-committees

1,924,118,784

Relevant statutes

Article 14 of the Framework Act on National Taxes

(1) If the ownership of income, profit, property, act or transaction subject to taxation is merely nominal and a person to whom such ownership belongs exists, the tax-related Acts shall apply to such person to whom such person actually belongs as a taxpayer.

(2) The provisions concerning the calculation of tax base in tax-related Acts shall apply according to the substance, notwithstanding the name or form of income, profit, property, act or transaction.

○ Division of Article 4 of the Income Tax Act

(1) Income of a resident shall be classified as follows:

1. Global income:

The sum of interest income, dividend income, real estate rental income, business income, labor income, annuity income and other income generated in the current year;

○ Article 19 of the Income Tax Act

(1) Business income shall be the following income generated during the relevant year:

6. Incomes accruing from the construction business (including the housing construction and sales business as prescribed by the Presidential Decree; hereinafter the same shall apply);

○ Scope of housing construction and sales business under Article 32 of Enforcement Decree of Income Tax Act

(1) "Housing construction and sales business prescribed by Presidential Decree" in Article 19 (1) 6 of the Act means any of the following subparagraphs:

1. Business of constructing and selling the housing; and

Article 4 of the Corporate Tax Act

(1) Where the corporation to which all or part of revenue from assets or business legally accrues and the corporation to which it actually accrues are different, this Act shall apply to the corporation to which the revenue actually accrues.

(2) The provisions concerning the calculation of the amount of taxable income subject to corporate tax shall apply according to the substance, notwithstanding the name or form of such income, profits, etc.

Article 67 of the Corporate Tax Act

In filing a report on the tax base of corporate tax on the income for each business year under the provisions of Article 60 or in determining or revising the tax base of corporate tax under the provisions of Article 66 or 69, the amount included in gross income shall be disposed of to the person to whom it belongs as prescribed by Presidential Decree, such as bonus, dividend, other outflow from the country

Article 106 of the Enforcement Decree of the Corporate Tax Act

(1) The amount included in the calculation of earnings under the provisions of Article 67 of the Act shall be disposed of pursuant to the provisions of the following subparagraphs. The same shall also apply to non-profit domestic corporations

1. Where the amount included in the calculation of earnings has clearly leaked out of the company, the dividends, bonuses from the disposition of profits, other income, and other outflow from the company under the following items according to the person to whom they accrue: Provided, That where the accrual is unclear, it shall be deemed as accrual to the representative (where an executive who is not a minority shareholder, etc. and persons with a special relationship under Article 43 (8) holds 30/100 or more of the total number of issued stocks or total amount of investment of the relevant corporation and actually controls the operation of the corporation, he/she shall be deemed the representative, and where a corporation is exempted from withholding taxes under Article 46 (12) of the Restriction of Special Taxation Act reports that there is a separate representative among the officers who are stockholders, etc., the reported person shall be the representative, and where there are 2 or more representatives, the de facto representative shall be the representative;

(b) If the person to whom it belongs is an officer or employee, the bonus to the person to whom it reverts;

○ Article 1 of the Value-Added Tax Act

(1) Value-added tax shall be imposed on the following transactions:

1. Supply of goods or services; and

(2) The term "goods" in paragraph (1) means all tangible things and intangible things which have property value.

○ Taxpayers under Article 2 of the Value-Added Tax Act

(1) A person who independently supplies goods (referring to the goods provided for in Article 1; hereinafter the same shall apply) or services (referring to the services provided for in Article 1; hereinafter the same shall apply) on a business basis, regardless of whether they are for profit-making purposes (hereinafter referred to as "business operator") shall be liable to pay