1. As to the Defendant’s grounds of appeal, “Fraud or other unlawful act” in the crime of evading tax under Article 9(1) of the former Punishment of Tax Evaders Act (amended by Act No. 9919, Jan. 1, 2010) refers to an act that enables the evasion of tax, and that is recognized as unlawful by social norms, namely, a deceptive scheme or other unlawful act that makes it impossible or considerably difficult to impose and collect tax, and thus, the case where a taxpayer simply fails to report under tax law or makes a false report without accompanying such act does not correspond to the case where the taxpayer does not report under tax law or makes a false report. However, if the taxpayer “affirmative concealment of income” as a means of tax evasion prior to the failure to report or underreporting, it constitutes “Fraud

(See Supreme Court Decision 2007Do3680 Decided January 15, 2009). The court below reversed the judgment of the first instance that recognized that the Defendant evaded capital gains tax of KRW 611,488,280 among the facts charged in the instant case on the grounds stated in its reasoning, and convicted the Defendant of the said part.

Examining the aforementioned legal principles and evidence duly adopted and examined by the first instance court, the lower court’s aforementioned determination is justifiable. In so doing, it did not err by exceeding the bounds of the principle of free evaluation of evidence against logical and empirical rules, or by misapprehending the legal principles on “Fraud or other unlawful act” under Article 9(1) of the former Punishment of Tax Evaders Act.

In addition, Article 8(2) of the former Act on the Aggravated Punishment, etc. of Specific Crimes (amended by Act No. 9919, Jan. 1, 2010) requires a fine equivalent to two to five times the amount of tax evaded for a crime of tax evasion.