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

A. On January 9, 199, the Plaintiff, who runs a truck terminal business, entered into a contract with the Korea Land Corporation to purchase ○○○○○○ Dong 103,517.5 square meters in a long-term installment plan for KRW 23,912,50,00 (the contract was changed to KRW 103,329.7 square meters in a size of 187.8 square meters in size on December 28, 1999; hereinafter referred to as “instant land”). On February 28, 2000, the Plaintiff registered the transfer of ownership in the name of the Plaintiff. The Plaintiff transferred the ownership of KRW 54,425.4 square meters in the instant land for a business year on January 3, 200 and paid KRW 103,329.7 square meters in a size of 187 square meters in a long-term installment plan for each business year; hereinafter referred to as “one of the Plaintiff’s own land for 2005 square meters in a business year.

B. The director of ○○○ Regional Tax Office, through a comprehensive audit on the disposition authority, erred by including interest on the acquisition of the instant land in deductible expenses, even though the Plaintiff’s amount equivalent to the interest on the acquisition of the instant land included in deductible expenses falls under capital expenditures and should be included in the land value. Secondly, since part of the instant sale land in the business year 2002 constitutes an unrelated asset, it constitutes 456,925,000 won (237,53,000 won in the business year 237,53,000 in the business year 2000, 219,372,000 in the business year 200, 200, 200, and thus, it was erroneous in the calculation of deductible expenses in the calculation of deductible expenses, even though it did not so, it constitutes 814,540,000 won in the calculation of the discounted debt estimated by the Plaintiff in relation to the instant land.

C. On October 6, 2005, the Defendant issued a revised and notified the Plaintiff of KRW 573,331,540 of the corporate tax for the business year 2002 and KRW 155,625,550 of the corporate tax for the business year 2003, and KRW 155,625,550 of the paid interest, interest, and the discounted debt estimated by the discounted debt estimated related

D. The plaintiff appealed and filed an objection on December 23, 2005, but the director of the regional tax office of ○○○ District Tax Office dismissed the plaintiff's objection on April 24, 2006. On July 10, 2006, the National Tax Tribunal made a correction of the amount of corporate tax for each business year and each business year of 2002 and each year of 2003, on the ground that the ratio of the discounted debt estimated by the present debt estimated by the present debt estimated by the present debt estimated by the National Tax Tribunal cannot be deemed as falling under the cost of acquisition and management of assets unrelated to business, because the pertinent ratio became an asset irrelevant to business due to the sale of the pertinent assets after the present debt estimated by the present debt estimated by the present debt estimated by the National Tax Tribunal on April 4, 2007, and thus, it cannot be deemed that the amount equivalent to the present debt estimated by the present debt estimated by the present debt estimated by the present debt estimated by the current debt estimated by the National Tax Tribunal on February 15, 2006.

E. According to the decision of the National Tax Tribunal on May 1, 2007, the Defendant corrected the corporate tax for the business year 2002 to KRW 431,665,780 to the Plaintiff.

Facts that there is no dispute over recognition, A1-4, B1-10, the purport of the entire pleadings.

2. Whether the disposition is lawful;

A. The plaintiff's assertion

The Plaintiff, while appropriating the acquisition value of the land of this case as the current value valuation, should have kept accounting of the discounted debt estimated by deducting the discounted debt estimated by the present value, which is the difference between the amount payable and the present value, at all interest expense. However, even if there is any error in the settlement of accounts, the Plaintiff’s disposal of the land of this case is obvious that the acquisition value of the land of this case was assessed by the present value, the Plaintiff cannot be included in the deductible expenses as capital, the same as the interest paid by the Plaintiff on the ground of the error in the simple settlement of accounts, even if the Plaintiff’s payment of the interest was the sum of the principal and the present value to be paid in the future at the time of acquisition of the assets.

Therefore, if the Defendant’s interest paid in the business year 200 (the actual amount of depreciation of the discounted debt estimated by present value), which was added to the deductible expenses and added to the gross income, is included in the deductible expenses in the amount of KRW 1,057,182,260 and KRW 1,297,627,840 for the business year 202 (the discounted debt estimated by present value) and the interest paid in the business year 2002 (the discounted debt estimated by present value), the corporate tax amount reverted to the legitimate business year 2002 shall be 9,972,907 won (=the main tax amount of KRW 7,247,752 + the additional tax of KRW 724,775 + the additional tax of KRW 2

(b) Relevant statutes;

○ Corporate Tax Act

· non-deductible of expenses not related to the business of Article 27

The following amounts of expenses paid by a domestic corporation in each fiscal year shall not be included in the calculation of losses in the calculation of the income amount for the concerned fiscal year:

1. The amount prescribed by Presidential Decree, such as expenses, etc. incurred from the acquisition and management of assets prescribed by Presidential Decree, deemed not directly related to the business of the relevant corporation

2. The amount of expenditure that is deemed not directly related to the business of the juristic person as prescribed by the Presidential Decree other than subparagraph 1.

· Article 28 (Non-Inclusion of Interest Paid in Loss)

(1) The interest on loans falling under any of the following subparagraphs shall not be included in deductible expenses in calculating the income amount of a domestic corporation for each business year:

4. Of interest on loans paid during each business year by a domestic corporation which acquires or holds assets falling under one of the following items, the amount calculated under the conditions as prescribed by the Presidential Decree (limited to interest on loans equivalent to the value of the concerned assets):

(a) Assets falling under subparagraph 1 of Article 27:

· Acquisition of assets under Article 41

(1) The acquisition value of assets acquired by a domestic corporation through purchase, production, exchange, gift, etc. shall be the amount falling under any of the following subparagraphs:

1. For assets purchased from a third person, the amount of the purchase price plus incidental expenses;

3. For assets acquired other than under subparagraphs 1 and 2, the amount as prescribed by the Presidential Decree.

(2) The scope of purchase prices and incidental expenses under paragraph (1), and matters necessary for the calculation of the acquisition value of assets shall be prescribed by Presidential Decree.

Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 17826, Dec. 30, 2002)

§ 31. Legal fiction of prompt depreciation

(1) Where a corporation appropriates the amount paid to acquire depreciable assets and the amount corresponding to capital expenditures for the depreciable assets as deductible expenses, the amount of depreciation shall be deemed depreciation and the scope of depreciation shall be calculated.

(2) The term "capital expenditure" in paragraph (1) means repair cost disbursed to extend the lifespan of the depreciable asset of a corporation or to steam the real value of the relevant asset, and it shall include any disbursement for one of the following subparagraphs:

1. Remodeling to change the original use thereof;

2. Installment of elevators or apparatuses for heating and cooling;

3. Installation of refuge or shelter rooms in building;

4. Restoration of the buildings, machinery, equipment, etc. which are destroyed or damaged and are not worth using for its original purpose.

5. Other things similar to subparagraphs 1 through 4, such as discretion, expansion, enlargement, etc.

· the scope of assets not related to the business of Article 49

(1) "Assets prescribed by Presidential Decree" in subparagraph 1 of Article 27 of the Act means the following assets:

1. Real estate falling under any of the following items: Provided, That real estate the use of which is prohibited or restricted by Acts and subordinate statutes, and real estate transferred by a special purpose company for asset-backed securitization under the Asset-Backed Securitization Act in accordance with an asset-backed securitization plan registered pursuant to Article 3 of the same

(a) Real estate not used directly for the business of a juristic person: Provided, That this shall not include the real estate located during the period that is determined by the Ordinance of the Ministry of Finance and Economy (hereafter in this Article, referred to as the

· non-Inclusion of interest paid in respect of non-business assets, etc.

(2) The term “amount calculated under the conditions as prescribed by the Presidential Decree” in Article 28 (1) 4 of the Act means the amount calculated by the following formula:

The total value of assets in accordance with the provisions of paragraphs (1) and Article 49 (1) shall be limited to the total value of assets (limited to total loans)

지급이자 x ―――――――――――――――――――――――――――――――――――――――

Total Loans

(3) The sum of the total loans and the value of assets under paragraph (2) shall be calculated by drop number. In this case, the assets under paragraph (1) shall, where there concurrently exist the provisional payments, etc. and the provisional payments, be the amount offset by them, and the assets under Article 49 (1) shall be the acquisition value.

· Business year of accrual of sales profits, losses, etc. of assets

(3) "Long term installment plan" in paragraph (2) shall mean the sale or transfer of assets (for transactions abroad, including leases of assets under conditional contracts for the transfer of possession rights) in which the sales amount or revenue amount is paid monthly, yearly, or by another periodic method by which the payment is made in 2 or more installments, and the last installment is made 1 year or more from the day after the date of the delivery of the concerned assets until the due date

· Acquisition value of assets under Article 72

(1) The acquisition value of assets under Article 41 (1) and (2) of the Act shall be the amount under each of the following subparagraphs:

1. Assets purchased from a third person: The amount obtained by adding the acquisition tax, the registration tax, and other incidental expenses to the purchase price;

(3) In applying paragraph (1), the acquisition value shall not include the amount falling under each of the following subparagraphs:

1. In case where assets are acquired under the long-term installment plan under the provisions of Article 68 (3), the present value of the debts incurred shall be evaluated and appropriated as the present value discount margin funds under the corporate accounting standards;

(5) The provisions of Articles 28, 73, 98, and 120 of the Act shall not apply to the depreciation amount of present worth discount margin funds under the provisions of paragraph (3) 1, and the paid interest under the provisions of subparagraph 2 of the same paragraph.

○ Scope of capital expenditures for fixed assets under the General Rules 23-311 of the Corporate Tax Act

Capital expenditures prescribed in Article 31 (2) 5 of the Decree shall include the following cases:

7. In acquiring assets under a long-term installment under Article 68 (3) of the Decree, the amount equivalent to the interest shall be determined by adding the amount equivalent to the interest, and in case where such payment is made in a yearly installment, the amount equivalent to the interest concerned shall be the capital expenditure for the assets concerned. In this case, the same shall apply to the case where the amount equivalent to the interest at the time of the initial contract is paid separately from the value of the assets concerned: Provided, That this shall not apply to the amount equivalent to the interest increased by recalculation the discounted value appropriated under Article 72 (3)

○ Corporate Accounting Standards

· valuation of tangible assets

(1) The acquisition cost of tangible assets shall be the value calculated by adding the acquisition incidental expenses to the acquisition cost or the acquisition cost of the relevant assets.

·The evaluation criteria for the debt

In principle, the amount of debt recorded on the balance sheet shall be the amount of debt borne by the enterprise.

§ 66. Appraisal of current value of claims and obligations

(1) Where the difference between the nominal value and the present value is important as bonds and liabilities incurred in transactions on long-term deferred payment terms and conditions, transactions on long-term cash lending and lending transactions or transactions similar thereto, they

(2) The current value under paragraph (1) shall be the value at an appropriate interest rate a total amount received or to be paid in the future due to the bonds and obligations concerned.

(3) The interest rate under paragraph (2) shall be applicable to the effective interest rate of the transaction in question: Provided, That where the effective interest rate of the transaction in question is unable to be claimed, or where the difference between the effective interest rate of the transaction in question and the interest rate of bonds and debts of the same or similar kind which is formed in the related market (hereinafter referred to as the “effective market interest rate”) is important, the interest rate calculated reasonably based on the same market interest rate shall be applied,

(4) The difference between the nominal value of bonds and debts arising under paragraph (1) and the present value shall be entered in the form of deducting the nominal value of the relevant bonds and debts from the discounted debt estimated by present value, and the interest rate, period, method of accounting, etc. applied shall be entered as the

(5) The discounted debt estimated by present value under the provisions of paragraph (4) shall be depreciated or returned by applying the Effective Interest Rate Act, and shall be included in the subjects of interest, expenses and interest profits.

(c) Fact of recognition;

(1) On January 9, 199, the Plaintiff purchased the instant land, the designated purpose of which is “the site for the distribution business facilities” from the Korea Land Corporation, and agreed to transfer ownership if the Plaintiff offered a security for the unpaid price even before full payment, on December 28, 1999, in 100 won (23,869,168,200 won due to the reduction of size of December 28, 1999). The principal and interest shall be paid in ten installments, other than the contract deposit, and the interest shall be paid in 10% interest rate for the unpaid balance for each installment payment. The transfer of ownership of the instant land shall be made after full payment of the purchase price, but the ownership shall be transferred if the security is provided for the unpaid price.

(2) The specific plan for the purchase price to be paid by the Plaintiff pursuant to the above agreement is as set forth in the table 1 below.

Table 1 (Unit:,00 won)

Classification

Date of the Payment Agreement

Ministry of Home Affairs

Interest on the Installment Interest

Sub-committees

Contract bond

January 9, 199

2,391,255

0

2,391,255

The first part;

July 9, 199

2,152,395

1,067,220

3,219,615

The second part

January 9, 2000

2,108,718

974,217

3,082,935

(Amendment of Contract)

December 28, 199

(43,381) Reduction

(2,186) Reduction

(45,567) Reduction

The third part;

July 9, 2000

2,152,100

858,481

3,010,581

4 The fourth part

January 9, 2001

2,152,100

759,425

2,911,525

The fifth part;

July 9, 2001

2,152,100

640,323

2,792,423

6 The sixth part payments

January 9, 2002

2,152,100

542,447

2,694,547

7 The 7th part payments

July 9, 2002

2,152,100

426,882

2,578,982

8The 8th part

January 9, 2003

2,152,100

325,468

2,477,568

9 The 9th part

9, 2003

2,152,100

213,441

2,365,541

10th part

January 9, 2004

2,152,100

108,489

2,260,589

Sub-committees

23,869,168

5,916,397

29,785,565

(3) However, unlike the above plan, the Plaintiff actually paid the purchase price to the Korea Land Corporation as shown in the table 2 below.

Table 2

The original cost schedule

Number of payments

Date of Collection

Principal

The Agreementer

Jinay

0

0

January 9, 199

2,391,255

1

1

July 9, 199

2,152,395

1,067,220

2

December 30, 199

0

909

2

3

January 10, 200

2,108,718

973,307

Sub-committees

6,652,368

2,041,437

February 28, 2000

Relocation Registration

3

4

July 1, 200

2,152,100

820,746

4

5

August 3, 2000

2,152,100

136,201

5

2,152,100

6

6

6, 200.99

2,152,100

100,234

annual aggregate

10,717,118

1,057,182

7

7

January 3, 2002

2,152,100

1,104,705

8

2,152,100

9

8

4, 2002

2,152,100

192,922

10

2,152,100

annual aggregate

8,608,400

1,297,627

Total Amount

23,869,168

4,396,248

28,265,416

The registration date ( February 28, 2000)

Total amount paid

6,652,368

2,041,438

8,693,806

After the registration date ( February 28, 2002)

Total amount paid

17,216,800

2,354,810

19,571,610

(4) After completing the registration of ownership transfer of the land of this case under the Plaintiff’s name on February 28, 200, the Plaintiff calculated the acquisition value of KRW 23,869,168,00 of the acquisition principal of the land of this case (at least 23,869,168,200 of the acquisition principal of this case, or below KRW 1,000 of the acquisition principal of this case shall be determined by the Defendant’s account that should be discarded; hereinafter the same shall apply) and the installment and interest paid before the acquisition, and the financial capital cost of KRW 2,649,200 of the acquisition amount, including the installment and interest paid before the acquisition amount, KRW 28,516,28,00 of the acquisition-related tax and public charges of KRW 1,518,00 of the acquisition-related tax and public charges of KRW 28,659,00 of the acquisition-related tax and the discounted debt amount of KRW 27,20,19,000.

Facts that there is no dispute over recognition, Gap 3, 4, Eul 10, the purport of the whole pleadings

D. Determination

Article 41 (1) 1 of the Corporate Tax Act provides that the acquisition value of assets purchased from another domestic corporation shall be the amount of assets added to the purchase value, and the Enforcement Decree of the same Act provides that "the acquisition value of assets shall be the amount calculated by adding the incidental expenses to the purchase value" under Article 72 (1) 1, and Article 72 (3) 1 of the same Act provides that where a debt incurred from a sale on long-term installment basis is evaluated and appropriated as the present value as the discounted value discount amount under the conditions as prescribed by the corporate accounting standards, the present value discount margin shall be excluded from the acquisition value."

In addition, the corporate accounting standards provide that the acquisition cost of tangible assets shall be the value calculated by adding the incidental expenses to the acquisition cost or the purchase price of the relevant assets (Article 62(1)), and that the value of liabilities recorded on the balance sheet shall be the amount of liabilities borne by the enterprise (Article 64), and that the amount of liabilities incurred from transactions on long-term deferred payment terms, long-term cash lending transactions, or other similar transactions, and where the difference between the nominal value and the current value is important, the current value shall be assessed, and such current value shall be the value discounted at the effective interest rate of the relevant transactions, which shall be received or to be paid in the future due to the relevant claims and obligations, and the difference between the nominal value of the above bonds and obligations and the present value shall be stated in the form of deducting from the nominal value of the relevant bonds and obligations, and the interest rate, period and accounting method applied by applying the effective interest rate, and shall be appropriated as the subject of interest expenses or interest income (Article 66).

In full view of the above provisions, in the case of a long-term installment transaction, not only the sale price, but also the interest in installment, is included in the acquisition value. However, it shall be interpreted that the difference between the nominal value and the present value is excluded from the acquisition value only when the present value is calculated by deducting the total amount to be paid in the future as the effective interest rate of the transaction in question according to the corporate accounting standards, and the difference between the present nominal value and the present value is calculated as the interest expense item. Therefore, in this case, as long as the Plaintiff did not include the interest expense item in the interest expense item as the discounted debt estimated by the present debt estimated by the present debt estimated by the present debt estimated by the present debt estimated by the present debt estimated by the Plaintiff, the interest paid by the Plaintiff

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit, and it is so decided as per Disposition.