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

Cheong-gu Office

The Defendant’s disposition of imposition of capital gains tax of KRW 42,836,010 for the year 2006 against the Plaintiff on April 2, 2007, which was revoked KRW 30,026,490.

The following facts are not disputed between the parties, or may be acknowledged by entry in Gap evidence 1 through 6, 8, 9, Gap evidence 7-1, 2, Eul evidence 1-1 through 8:

A. On May 29, 2006, the Plaintiff and the ○○ Local Public Corporation entered into a land sale contract with respect to each real estate listed in the annexed real estate list (hereinafter “the instant real estate”). At the same time, the Plaintiff entered into a contract and submitted all documents necessary for the registration of transfer of ownership of the said real estate to the ○○ Local Public Corporation and paid KRW 2,97,210,325 to the Plaintiff after completing the registration of transfer of ownership of the said real estate.

B. The Plaintiff deemed the transfer date of the instant real estate as July 7, 2006, and made a preliminary return of transfer income tax on September 5, 2006.

C. On May 30, 2006, the date of receipt of ownership transfer registration, the Defendant calculated gains from transfer by deeming the time of transfer of the instant real estate as the date of receipt of ownership transfer registration, and on April 2, 2007, the Defendant did not make the Plaintiff’s tax deduction with the scheduled tax return, but notified the Plaintiff of KRW 42,836,010 for the transfer income tax for the year 2006 (hereinafter “instant disposition”).

D. The Plaintiff, who was dissatisfied with the instant disposition, filed an appeal with the National Tax Tribunal on May 14, 2007, but was dismissed on October 22, 2007.

2. Whether the disposition is lawful.

A. The plaintiff's assertion

The Plaintiff agreed to submit various elements necessary for the registration of ownership transfer of the instant real estate to ○○ Local Public Corporation at the same time as the land sale contract was entered into. However, it is premised on the payment of the purchase price and the Plaintiff’s obligation to pay the purchase price and the Plaintiff’s obligation to transfer ownership to ○○ Local Public Corporation for the business convenience of ○○ Local Public Corporation immediately after the completion of the registration of ownership transfer at the same time or the registration of ownership transfer. Therefore, ○○ Local Public Corporation still has a simultaneous performance relationship, but 38 days have passed since it unilaterally completed the registration of ownership transfer without any notification to the Plaintiff. Since ○○ Local Public Corporation’s registration of ownership transfer for the period during which the Plaintiff did not pay the purchase price to the Plaintiff is null and void, the instant disposition of this case imposing capital gains tax by deeming the date of transfer of ownership, etc. to be the date of registration of ownership transfer to be the date of transfer of the instant real estate, the disposition of this case is unlawful.

(b) Related statutes;

It is as shown in the attached Table related statutes.

C. Determination

In calculating gains on transfer of assets, Article 98 of the Income Tax Act provides that the time of acquisition and time of transfer shall be determined by the Presidential Decree. Accordingly, Article 162 (1) of the Enforcement Decree of the Income Tax Act provides that the time of acquisition and time of transfer under Article 98 of the Income Tax Act shall be the date of liquidation of the price of the assets concerned, but if the registration of transfer is made before the price is settled, the time of acquisition and time of transfer shall be the date of registration entered in the register,

As to the instant case, the public health department and ○○ local public corporation applied for the registration of ownership transfer on May 30, 2006 for the instant real estate, and the fact that the Plaintiff paid the purchase price of KRW 2,97,210,325 to the Plaintiff on July 7, 2006 constitutes the time when the registration of ownership transfer was made before the settlement of the price. Accordingly, the instant disposition that the Defendant calculated the transfer income tax by deeming the time of transfer of the instant real estate as the date of receipt on May 30, 206, which is the date of receipt on the register, is legitimate, and the Plaintiff’s assertion is without merit.

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.

List of Real Estate

1. ○○○-si ○○-dong ○○○-dong ○○○-dong ○○○-dong;

2. The same ○○ ditch, 00 square meters;

3. The same ○○○○○ square meters;

4. The same ○○○○○ square meters;

5. The same ○○○○○ square meters;

6. The same ○○○○○ square meters (1/2 equity) in a Dong.

7. The same ○○○○○ square meters (1/2 equity) in a Dong.

8. The same ○○○○○○ square meters (1/2 equity interest) and end; and

Related Acts and subordinate statutes

[Income Tax]

Article 98 (Time of Transfer or Acquisition)

In calculating gains on transfer of assets, the time of acquisition and transfer shall be determined by Presidential Decree.

[former Income Tax Act (amended by Act No. 8144 of Dec. 30, 2006)]

Article 105 (Preliminary Return on Tax Base of Transfer Income)

(1) A resident who transfers assets under each subparagraph of Article 94 (1) shall report the tax base of transfer income calculated under Article 92 (2) to the chief of the district tax office having jurisdiction over the place of tax payment within the period classified in each of the following subparagraphs

1. Two months from the last day of the month in which the transfer date belongs in cases of transfer of assets under Article 94 (1) 1, 2 and 4: Provided, That two months from the last day of the month in which the permission for a land transaction contract is granted in cases of transfer of land located within a zone subject to permission for a land transaction contract under Article 117 (1) of the National Land Planning and Utilization Act;

2. Two months from the last date of the quarter where the transfer date belongs in cases of transfer of assets under any item of Article 94 (1) 3.

§ 106. Voluntary return and payment

(1) When a resident makes a preliminary return, he/she shall pay the tax amount reduced or exempted under the Restriction of Special Taxation Act and other Acts and the tax amount reduced or exempted under Article 108, and the tax amount deducted for preliminary return and payment under Article 108, to the competent district tax office having jurisdiction

[Income Tax]

Article 105 (Preliminary Return on Tax Base of Transfer Income)

(2) A return on the tax base of transfer income under paragraph (1) shall be filed by a preliminary return.

§ 106. Voluntary return and payment

(2) The payment under paragraph (1) shall be made voluntarily by preliminary return.

Article 108 (Deduction of Tax Amount paid by Preliminary Return)

(1) If a person pays a tax jointly with a preliminary return, the amount equivalent to 10/100 of the tax amount to be paid from such calculated tax amount shall be deducted.

(2) The deduction under paragraph (1) shall be the tax credit for preliminary return and payment.

[Enforcement Decree of the Income Tax]

Article 162 (Time of Transfer or Acquisition)

(1) The time of acquisition and transfer under Article 98 of the Act shall be the date of liquidation of the price of relevant assets (if the transferee agrees to bear the capital gains tax and additional tax of capital gains tax on the transfer of relevant assets, excluding such capital gains tax and additional tax of capital gains tax) except in the following cases:

1. Where the date of the settlement of price is not clear, the date of registration, receipt of registration, or transfer date entered in the register, registry, list, etc.;

2. Date of receipt of the registration entered in the register, register, list, etc. where the transfer of ownership (including the registration and the opening of the name) has been made before the price is settled;

3. The earlier of the date of receipt, delivery, or use and profit-making under the long-term installment plan prescribed by the Ordinance of the Ministry of Finance and Economy (including registration and transfer of ownership).