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

Cheong-gu Office

The disposition of imposition of global income tax in attached Form 2, which the Defendants made to the Plaintiffs, shall be revoked in entirety.

A. On January 1, 2005, HG CD Corporation is a public corporation converted and established in the CDA pursuant to the HG CD Corporation Act, and the Plaintiffs were working as a working employee or a maintenance employee on board in the HG CD Corporation and retired from office.

나. HGCD공사는 2009년부터 2013년까지 원고들에게 '여비 및 시험수당 지급 세칙'이 정한 바에 의하여 원고들의 업무내용 및 직급에 따라 월 4〜18만 원의 월액여비 (이하 '이 사건 월액여비'라 한다)를 지급하였는데, 이 사건 월액여비가 소득세법 제12조 제3호 자목에서 정한 '대통령령으로 정하는 실비변상적 성질의 급여'로서 비과세소득에 해당한다고 보아 이 사건 월액여비에 대하여 근로소득세를 원천징수하여 납부하지 아니하였다.

C. The Defendants decided and notified the comprehensive income tax on monthly travel expenses of this case, which are different according to their duties, not to pay the monthly travel expenses of this case as wages in the nature of compensating for actual expenses, and paid to the Plaintiffs as earned income subject to taxation (hereinafter “instant disposition”). While additional tax was imposed on some of the Plaintiffs in addition to the principal tax on global income tax, it seems that the additional tax is already revoked ex officio).

D. The Plaintiffs were dissatisfied with the instant disposition and requested a judgment with the Tax Tribunal, but on March 28, 2016, the monthly travel expenses of the instant case constituted an earned income subject to taxation, which is not a salary of the nature of reimbursement of actual expenses, but a salary to compensate for the wages for the provision of labor.”

[Ground of recognition] Facts without dispute, Gap evidence Nos. 1 through 25 (including branch numbers; hereinafter the same shall apply), the purport of whole pleadings

2. Whether the instant disposition is lawful

A. The plaintiffs' assertion

The following expenses are incurred in the course of regular business trips in the case of employees working on board and employees engaged in maintenance and repair of the HG CD Corporation. The HG CD Corporation paid these expenses in the form of a certain amount depending on the type of work, comprehensively taking into account prompt business handling and accounting convenience. Accordingly, monthly travel expenses of this case constitute non-taxable income in the nature of compensating for actual expenses, which is non-taxable income prescribed in subparagraph 3 (i) of Article 12 of the Income Tax Act and subparagraph 3 of Article 12 of the Enforcement Decree of the same Act. Nevertheless, monthly travel expenses of this case constitute earned income subject

A) In the case of an employee working on board, a daily allowance arises from the outside 5 to 6 times a month, due to flexible working hours, and the passage and departure of the taxi or other traffic costs, such as taxi fares, are additionally incurred if there is a difference between the departure and retirement of the taxi and the actual departure station. As it is difficult to purchase the urban entertainment in the train or use the apartment restaurant at a fixed time due to the irregular work form, it is necessary to use the apartment restaurant in the train, and the communication cost is required, such as using his cellular phone for business purposes due to the relationship between the outside and the business.

B) In the case of maintenance and repair personnel, in the event of traffic expenses, such as taxi expenses, etc., due to departure from or leaving the taxi by performing line work at a new wall or night, in the event of purchasing corrosion, such as restaurant, etc. while conducting work on the track, transportation expenses, simplified and communication expenses are required in the case of purchasing drinking water while conducting outdoor work, or using mobile phones for business purposes in the outside while performing their duties.

B. Relevant statutes

The entries in the attached Table-related statutes are as follows.

C. Determination

1) Article 20 (1) 1 of the Income Tax Act provides that wage, salary, remuneration, annual wage, wage, bonus, allowance, and other similar wages that are paid by providing "labor income subject to taxation" shall be included in earned income. Article 38 (1) 10 of the Enforcement Decree of the Income Tax Act provides that "annual or yearly salary paid in the name of travel expenses" shall also be included in earned income. Meanwhile, Article 12 (1) 3 (i) of the Income Tax Act provides that "no tax shall be imposed on wage in the nature of compensation for actual expenses prescribed by Presidential Decree out of earned income." Article 12 (3) (i) of the Enforcement Decree of the Income Tax Act provides that "The amount of salary in the nature of compensation for actual expenses as prescribed by Presidential Decree means one of the following subparagraphs." Article 3 of the Enforcement Decree of the Income Tax Act provides that the amount of compensation for actual expenses, such as daily allowance, night allowance, or travel expenses (including the amount within 200,000 won of an employee's vehicle owned by directly driving for performing his duties and receiving the actual expenses in the city.

As such, the Income Tax Act, as a matter of principle, includes wage paid on a monthly basis as travel expenses, while the wage of the nature of reimbursement of actual expenses among the wage and salary income subject to taxation is exceptionally defined as non-taxable income in consideration of its nature. Therefore, the monthly travel expenses paid on a monthly basis fall under non-taxable income in terms of the nature of reimbursement of actual expenses.

2) In the following respect, the evidence submitted by the Plaintiffs alone is insufficient to recognize that monthly travel expenses of this case are being paid in order to compensate for the actual expenses incurred in relation to monthly travel expenses of this case due to regular occurrence of expenses to the personnel on board and the maintenance and repair personnel subject to the payment of monthly travel expenses of this case.

A) In the case of an employee working on board, the employee of the HG CD Corporation goes back to the station that started after receiving the key and free electricity from the fixed station and receiving the approval for the boarding log on the day, and returned to the station that started after performing his/her duties. Even if the employee starts from a station other than the starting station, he/she waiting in the relevant station and returned to the station that started from the other train. Even in cases where the employee on board provides accommodation for reasons such as night programs, etc., the employee on board uses the boarding log prepared in the relevant station, and the HG CD Corporation provides meals to the employee on board or pays a fixed meal cost. The Plaintiffs asserted that the employee on board has no choice but to use the taxi on the date when the employee on board goes to work at the work site and the train’s departure from the place of duty (e.g., where the employee on board was discharged from the place of duty and the train is the Daejeon Deputy Chief, it is difficult for the Plaintiffs to view that the above employee on board does not have the nature of his/her departure from the above service site.

B) In the case of maintenance and repair personnel, the HG CD Corporation’s maintenance and repair staff shall, if necessary, move to the place of business using the vehicle allocated for the maintenance and repair of tracks and perform the maintenance and repair business using the received equipment, and the HG CD Corporation shall provide meals to the maintenance and repair staff. The evidence submitted by the Plaintiffs alone is insufficient to recognize that the cost of transportation following the withdrawal and retirement of the maintenance and repair staff, the cost of communication generated by using mobile phones for business purposes, the cost of communication generated by using outdoor services, the cost of meals needed while conducting outdoor services, etc. exceeds the amount ordinarily borne by the employees, and it does not seem that the monthly travel expense of the instant case was determined by estimating the above costs.

3) According to the “Rules for Travel Expenses and Test Allowances Payment” (hereinafter “Rules for Payment”), among employees of the HG CD Corporation, who are the basis for the monthly travel expenses of this case, the subjects of monthly travel expenses of this case are ① a person working on board (KTX captain, engineer, driving guidance team leader, etc.), ② a person working on board in accordance with the allocation schedule (KTX captain, engineer, driving guidance team leader, etc.), a person engaged in maintenance, management, and repair of lines or equipment that require maintenance and repair, ③ a person engaged in entrusted management of 10 lines on a daily basis, ③ a person engaged in entrusted service, a person engaged in the inspection of facilities, and a dispatched employee engaged in the inspection of facilities. According to the Rules for Payment of this case, the employees on board are 180,000 won per month, 40,000 won per month for maintenance and repair employees, and monthly travel expenses do not have the nature of the Plaintiffs’ monthly travel expenses in the process of reimbursement for actual travel expenses of this case.

4) Therefore, the Plaintiffs’ assertion that monthly travel expenses in this case constitute non-taxable income as remuneration in the nature of reimbursement for actual expenses cannot be accepted.

3. Conclusion

The plaintiffs' claims are dismissed as without merit, and the costs of lawsuit are assessed against the losing plaintiffs. It is so decided as per Disposition.

December 12, 2016