Main Issues

The effects of imposition of additional tax on the Federation of Fisheries Cooperatives exempted from corporate tax on their income and earnings under Article 4 (1) 7 of the Regulation of Tax Reduction and Exemption Act.

Summary of Judgment

The penalty tax is collected in order to secure the faithful fulfillment of the obligation provided for in tax-related Acts, and even if its nature is different from that of the principal tax, the collection of the penalty tax on a corporation is premised on the collection of the corporate tax on income in each business year, except as otherwise provided for in tax-related Acts, and it is not possible to collect the corporate tax independently. Thus, if corporate tax cannot be collected after being exempted, the penalty tax may not be collected. Thus, the imposition of corporate tax on the Federation of Fisheries Cooperatives exempt from corporate tax on such income and profit is in violation of the provisions of Article 4(1)7 of the Regulation of Tax Reduction and Exemption Act and Article 41 of the Corporate Tax Act (amended by Act No. 2686, Dec. 21, 1974).

Plaintiff-Appellee

National Federation of Fisheries Cooperatives (Attorney Lee Ba-ho, Counsel for defendant-appellant)

Defendant-Appellant

Class A: Litigation Performers of the Director of the District Office;

original decision

Seoul High Court Decision 73Gu355 delivered on January 16, 1974

Text

The appeal is dismissed.

Reasons

1. Article 41(4) of the Corporate Tax Act provides that if a corporation does not submit a report under Article 66(1) of the same Act within the prescribed period or if the other party to the report is unclear, the amount of corporate tax shall also be added to the amount of corporate tax for the pertinent business year as stated in paragraph (1) of the same Article, and the amount of corporate tax shall not be collected as corporate tax for the same reason that the corporate tax cannot be collected in the same manner as stated in paragraph (4) of the same Article, even if the corporate tax cannot be collected for the same reason as stated in subparagraph 2 of the same Article. This provision provides that the corporate tax shall not be collected for the same reason that the amount of corporate tax shall not be collected for the same reason as stated in paragraph (4) of the same Article, even if the corporate tax cannot be collected for the same reason as stated in paragraph (4) of the same Article. This provision provides that the corporate tax shall not be collected for the same reason that the corporate tax shall not be collected for the same reason as stated in the above provision.