[법인세부과처분취소][공1999.4.15.(80),689]
[1] The meaning of transfer value of assets
[2] In a case where the transferor received only a part of the purchase price assessed by the real estate itself and completed the registration of ownership transfer, and then agreed to receive the installment payment with interest added thereto, whether the interest portion is included in the transfer price of the real estate (negative)
[1] The transfer value refers only to the value of the part related to the transfer of the assets in economic substance among the amounts received by the transferor in connection with the transfer of assets.
[2] In case where the transferor received only a part of the purchase price, which is the value of real estate itself, and completed the registration of ownership transfer, and then agreed to receive the installment payment with interest added to the remaining amount, such interest shall be paid in relation to the transfer of real estate, but it shall be deemed that the transferor has the nature of the consideration for the provision of financial to the transferee, i.e., the transferor, not the purchase price itself, which is the value of the real estate itself, which is the direct quid pro quo with the transfer of real estate.
[1] Article 59-2 (1) and (3) (see current Article 99 (1) and (3)) of the former Corporate Tax Act (amended by Act No. 4803, Dec. 22, 1994) / [2] Article 59-2 (1) and (3) (see current Article 99 (1) and (3)) of the former Corporate Tax Act (amended by Act No. 4803, Dec. 22, 1994)
[1] Supreme Court Decision 92Nu9357 delivered on April 27, 1993 (Gong1993Ha, 1608), Supreme Court Decision 92Nu19613 delivered on July 27, 1993 (Gong193Ha, 2453)
Eastern Agricultural Chemical Co., Ltd. (Attorneys Long-ro et al., Counsel for the defendant-appellant)
The Director of Gangnam District Office
Seoul High Court Decision 97Gu8702 delivered on August 19, 1997
The judgment below is reversed. The case is remanded to Seoul High Court.
The grounds of appeal are examined.
1. According to the reasoning of the judgment below, the court below, based on the evidence presented in its judgment, issued the documents for ownership transfer registration with an annual payment of KRW 13,80,000 and KRW 690,000 for the first intermediate payment of KRW 1,380,000 as well as the first intermediate payment of KRW 1,380,000 as a yearly interest rate of KRW 12% on December 26, 1992. The court below dismissed the Plaintiff’s annual payment of interest accrued from the installment payment of KRW 11,730,00 as well as interest calculated on December 30, 1992 by adding interest at an annual interest rate of KRW 12% on the purchase price to the non-party East Construction Co., Ltd. (hereinafter the non-party Co., Ltd.). Accordingly, the court below determined that the interest accrued from the subsequent installment payment of KRW 13,80,000 and the interest accrued from the transfer price of the real estate should be determined based on the annual payment rate.
2. However, the transfer value is limited to the value of the part related to the transfer of the pertinent asset in the economic substance among the amounts received by the transferor in connection with the transfer of the assets. According to the records, the sale price of the instant real estate at the time of December 3, 1992 is determined in accordance with KRW 13,801,715,00. Thus, the instant sale and purchase contract of this case is transferred with the payment of the purchase price, which is the appraised value of the real estate. However, the transfer price of the instant real estate at the time of the transfer of ownership, provided that only a part of the price at the time of the transfer of ownership, and provided a financing equivalent to the remaining price, and interest is paid. The interest is paid in relation to the transfer of the real estate, but it shall be deemed that the transferor, i.e., the transferor, has the nature of the transfer price of the instant real estate, and thus, it shall not be included in the transfer price of the real estate. Nevertheless, the lower court erred in the misapprehension of legal principles as to the transfer price of the instant real estate.
3. Therefore, the judgment of the court below shall be reversed, and the case shall be remanded to the court below for a new trial and determination. It is so decided as per Disposition with the assent of all participating Justices.
Justices Jeong Jong-ho (Presiding Justice)