[법인세부과처분취소][공2002.10.15.(164),2355]
The case holding that the parent company's purchase of shares from the subsidiary company cannot be deemed as the termination of the title trust, and the parent company's purchase of shares from the subsidiary company at a price higher than the market price shall be subject to unfair calculation
The case holding that if a subsidiary company has issued and discounted commercial papers under its own name and raised funds for its own acquisition, and bears interest on the debt discounted on the bill, the ownership of the shares belongs to the subsidiary company, so it shall not be deemed as the termination of the title trust with the parent company's purchase of the above shares, and since the parent company's purchase of the above shares at a price higher than the market price from the subsidiary was aimed at compensating for losses of the subsidiary company's disposal of the shares, it shall be deemed as falling under "the case where it purchased the shares from an investor, etc. in excess of the market price" under Article 46 (2) 4 of the Enforcement Decree of the Corporate Tax Act (wholly amended by Presidential Decree No. 15970 of Dec. 31, 198) and thus, it shall be subject to unfair
Article 20 of the former Corporate Tax Act (amended by Act No. 5581 of Dec. 28, 1998) (see Article 52 of the current Act), Article 46 (2) 4 of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 15970 of Dec. 31, 1998) (see Article 88 (1) 1 of the current Act)
New World Co., Ltd. (formerly: New World Department Store, Ltd., Counsel for the plaintiff-appellant)
Head of Central Tax Office
Seoul High Court Decision 2001Nu11092 delivered on January 24, 2002
The appeal is dismissed. The costs of appeal are assessed against the plaintiff.
We examine the grounds of appeal.
According to the reasoning of the judgment below, the court below acknowledged the facts as stated in its holding, and determined that the purchase price of the shares of this case was 10,000 won per week more than the time when the plaintiff purchased the shares of this case, and that the purchase price of the shares of this case was 10,000 won at the time when the plaintiff purchased the shares of this case from Korea-U.S. Co., Ltd., Ltd. (hereinafter referred to as the "Korea-U.S. Development") again purchased the shares of this case from Korea-U.S. Co., Ltd., Ltd. (hereinafter referred to as the "Korea-U.S."), and that the ownership of the shares of this case shall be deemed to be attributed to the Korea-U.S. Development. In the event that the plaintiff purchased the shares of this case from Korea-U.S. development to Korea-U.C., the purchase price of the shares of this case was 10,000 won more than the time when the purchase price of the shares of this case was made.
In light of the relevant legal provisions and records, the above recognition and judgment of the court below are just, and there is no error of law such as misunderstanding of facts or incomplete deliberation due to violation of the rules of evidence or misunderstanding of legal principles as to the requirements for denial of wrongful calculation under the Corporate Tax Act and the principle of substantial taxation
Therefore, the appeal is dismissed and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.
Justices Zwon (Presiding Justice)