[2] Whether the transaction partner's act of fraud or other wrongful act under Article 9 (1) of the Punishment of Tax Evaders Act is applicable in a case where the transaction partner intentionally omitted the sales at the time of filing a final return of value-added tax without delivering a tax invoice with the intent to evade the value-added tax (affirmative)

[3] The taxpayer of value-added tax and the subject of tax evasion under Article 9 (1) of the Punishment of Tax Evaders Act

[4] The scope of the amount of tax evaded to be confirmed in criminal proceedings against the crime of tax evasion

[2] If a taxpayer did not issue a tax invoice with the intent to evade value-added tax in the supply of gold to the other party to a transaction and intentionally omitted the sales from the return at the time of the final return of value-added tax, this constitutes a positive act which makes it impossible or considerably difficult to impose and collect taxes.

[3] Article 2 (1) of the Value-Added Tax Act provides that a person who supplies goods and services independently for business purposes is a person liable to pay value-added tax. Thus, a person who receives the supply is merely a person liable to pay taxes in finance and science, but is not a person liable to pay taxes under tax law. The criminal subject of a crime of tax evasion under Article 9 (1) of the Punishment of Tax Evaders Act is a taxpayer under Article 2 subparagraph 9 of the Framework Act on National Taxes, a representative of a corporation under Article 3 of the Punishment of Tax Evaders Act, a representative of

[4] According to the Value-Added Tax Act, the value-added tax amount to be paid by an entrepreneur to the Government shall be the amount computed by deducting the input tax amount from the output tax amount, but where the tax invoice is not received or the tax invoice received is not submitted, the input tax amount shall not be deducted. The tax amount to be determined in the criminal procedure against the relevant tax evasion should be identical to the number and scope of the tax liability amount under the tax law to be imposed on the relevant tax evasion, and where the purchase tax invoice is not received or submitted, the input tax

2. "Fraud or other unlawful act" under Article 9 (1) of the Punishment of Tax Evaders Act refers to a deceptive scheme or other active act that makes it impossible or considerably difficult to impose and collect taxes, and it does not correspond to the mere failure to file a tax return under the tax law or filing a false tax return without accompanying any other act. However, as acknowledged by the court below, if the defendant did not issue a tax invoice with the intent to evade value-added tax in supplying gold to the other party to a transaction and intentionally omitted the sales from the return at the time of filing the final return of value-added tax, such act constitutes "Fraud or other unlawful act" (see Supreme Court Decision 85Do842, Sept. 24, 1985).

The judgment of the court below to the same purport is just, and there is no error in the misapprehension of legal principles as alleged in the grounds of appeal.

3. Article 2(1) of the Value-Added Tax Act provides that a person who supplies goods and services independently for business purposes is a person liable to pay value-added tax, so a person who receives the supply of goods and services is merely a person liable to pay taxes in finance (see Supreme Court Decision 96Da4067, 40684, Apr. 25, 1997) and is not a person liable to pay taxes under tax law (see Supreme Court Decision 96Da4067, 40684, Apr. 25, 1997). The criminal subject of tax evasion under Article 9(1) of the Punishment of Tax Evaders Act is a person liable to pay taxes under Article 2 subparag. 9 of the Framework Act on National Taxes and a legal person, such as a representative of a corporation or an individual, an agent, employee, and other employees (see Supreme Court Decision 97Do2429, May 8, 198). Therefore, the court below did not err in the misapprehension of legal principles as alleged

4. The court below is just in finding that the gold sales amount in the decision as to the Multilateral Trade Co., Ltd. and the Peace Book include value-added tax and recognized an amount equivalent to 1/11 of that amount as the output tax amount. Under the Value-Added Tax Act, the value-added tax amount to be paid by an entrepreneur to the Government is the amount obtained by deducting the input tax amount from the output tax amount, but if the tax invoice has not been issued or received but the tax invoice has not been submitted, the input tax amount shall not be deducted. The amount of evaded tax to be determined in the criminal procedure against a tax evasion offender must be identical to the amount of tax liability under the tax law to be imposed on the relevant tax evasion (see Supreme Court Decision 85Do1518, Mar. 8, 198). In this case without a purchase tax invoice, and without submitting it, it is just in finding the evaded tax amount without deducting the input tax amount from the output tax amount, and contrary to the allegations in the grounds of appeal, the court below rejected the legal principles as to the tax evasion or amendment.

5. The allegation that the lower court’s sentence of imprisonment with prison labor for less than 10 years or a fine is too heavy is not a legitimate ground for appeal.

6. Therefore, the appeal shall be dismissed as per Disposition.

Justices Cho Chang-chul (Presiding Justice)