[부가가치세부과처분취소][공1987.5.1.(799),665]
The meaning of "unfairly low prices" under Article 13 (1) 3 of the Value-Added Tax Act and the criteria for judgment thereof.
Article 13 (1) 3 of the Value-Added Tax Act provides that an enterpriser receives an unreasonably lower price than the market price that is recognized to unfairly reduce the tax burden in the transaction with a person with a special relationship with him/her, and that it is unreasonable or remarkably low, it should be determined objectively based on the normal transaction that does not lose the equity in the tax burden according to a specific case.
Article 13 (1) 3 of the Value-Added Tax Act
Supreme Court Decision 85Nu514 Decided December 10, 1985
[Defendant-Appellee] Defendant 1 and 3 others (Attorney Cho Young-chul, Counsel for defendant-appellee)
Head of the tax office;
Seoul High Court Decision 86Gu132 delivered on July 8, 1986
The appeal is dismissed.
The costs of appeal are assessed against the defendant.
The grounds of appeal by the litigation performer are examined.
Article 13 (1) 3 of the Value-Added Tax Act provides that an enterpriser receives an unreasonably low price for a transaction with a person with a special relationship, it means that an enterpriser receives a significantly lower price than the market price that is deemed to unreasonably reduce the tax burden in the transaction with the person with a special relationship, and, in the end, it would be objectively determined on the basis of normal transaction that does not lose the equity in the tax burden (see Supreme Court Decision 85Nu514 delivered on December 10, 1985). According to the legal determination of the court below, the court below held that the court below erred in the calculation of the tax base of the land service provided without compensation to the person with a special relationship with the non-party Maritime Co., Ltd. (see Supreme Court Decision 85Nu514 delivered on December 10, 1985, and the same deposit and rent as the time when the plaintiff leases the land owned by the non-party Maritime Co., Ltd., Ltd., and received it cannot be determined as a wrongful calculation on the ground that it is unreasonable.
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.
Justices Yellow-ray (Presiding Justice)