A shall be punished by imprisonment with labor of one year and six months and by a fine of 1.1 billion won, and Defendant B shall be punished by a fine of 50 million won.

Defendant

A is an internal director of corporation B, and Defendant B (hereinafter “B”) is a corporation established for the purpose of distributing non-metallic minerals.

1. Around January 2014, Defendant A received the introduction of F, a representative of E, from D that he/she came to know while engaging in a secondhand business, and he/she recommended D to submit a list of total tax invoices for each purchaser and seller, without real transactions, to the relevant administrative agency, on condition that D would receive fees of KRW 50 per 1 km from D, and that D would be able to carry out data-free transactions.

A. On April 25, 2014, the Defendant: (a) filed a preliminary return on value-added tax at an Ansan Tax Office in January 2014; and (b) even though the Defendant did not have received goods or services equivalent to KRW 5,300,434,480 in total supply value from E, the Defendant prepared and submitted a false list of total tax invoices by seller as the Defendant received goods or services equivalent thereto.

B. On April 25, 2014, the Defendant: (a) filed a preliminary return of value-added tax base on the first half of 2014 at the Ansan Tax Office; (b) the Defendant: (c) prepared a false statement of value-added tax base on the new metal of a stock company; (d) KRW 1,487,470,140; (c) KRW 922,190,250 on the sealed metal of a stock company; (d) KRW 635,305,60 on the inflammable metal of a stock company; (e) KRW 324,89,750 on the Do-won metal of Korea; (e) KRW 134,669,200; (e) KRW 113,482,50 on the metal of Korea; and (e) prepared a false statement of value-added tax base on the aggregate of KRW 108,00,008, KRW 3038,405,39400 on the goods or services supplied.

(c)

On July 25, 2014, the Defendant filed a final tax return on the value-added tax at the Ansan Tax Office on July 25, 2014. In fact, the Defendant supplied goods or services equivalent to KRW 20,670,00 to the Dowon metal Co., Ltd., 9,424,350 to G, and KRW 9,206,50 to the Dogwon metal Co., Ltd.