A. Plaintiff secondary electronic company (hereinafter “Plaintiff secondary electronic company”) was a company engaged in the manufacturing of electronic equipment by the business year of 2008 and did not fall under a small or medium enterprise due to the expansion of 2009 years. However, pursuant to the main text of Article 2(2) and proviso of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 24368, Feb. 15, 2013; hereinafter the same) Article 2(1) of the former Enforcement Decree of the Restriction of Special Taxation Act, the grace period was applied from 2009 to 2012.

B. As of December 31, 2012, Plaintiff Busan is a company subject to external audit pursuant to Article 2 of the Act on External Audit of Stock Companies as of the business year 2012, and around November 2012, Plaintiff Busan acquired new shares 162,500 shares issued by Plaintiff Bangladesh Co., Ltd (hereinafter “Plaintiff”) and became the largest shareholder of Plaintiff Bangladesh as of December 31, 2012.

C. In accordance with Article 2(2) of the former Enforcement Decree of the Restriction of Special Taxation Act, the Plaintiff’s vice-electronic reported and paid corporate tax to the Defendant on March 31, 2013 by applying the minimum rate of 8% under Article 132(1) of the former Restriction of Special Taxation Act (amended by Act No. 11614, Jan. 1, 2013; hereinafter the same) to the minimum rate of 8%, and the Plaintiff’s vice-electronic also reported and paid corporate tax to the Defendant on March 31, 2013 by applying the minimum of 7% under Article 132(1) of the former Restriction of Special Taxation Act, which applies to small and medium enterprises.

As of December 31, 2012, the Defendant did not meet the criteria prescribed in Article 2(1)3 of the former Enforcement Decree of the Restriction of Special Taxation Act and Article 3(1)2(c) of the former Enforcement Decree of the Framework Act on Small and Medium Enterprises (amended by Presidential Decree No. 25302, Apr. 14, 2014; hereinafter the same), and thus, the grace period for small and medium enterprises is applicable pursuant to Article 2(2)3 of the former Enforcement Decree of the Restriction of Special Taxation Act.