Law Firm A, a legal entity A

2. The Defendant’s disposition of rejecting the correction of KRW 74,169,440, acquisition tax imposed on the Plaintiff on May 7, 2012, KRW 3,708,470, and KRW 7,416,940, and the local education tax is revoked.

3. All costs of the lawsuit shall be borne by the defendant.

A. The Plaintiff is a school foundation that maintains and manages the Gsung University and conducts university education.

B. On February 7, 2012, the Plaintiff purchased a total of 20 units, including 304 units, etc. of the 1766-1 ground transportation unit SHH unit officetels, Jung-gu, Busan, Busan, and completed the registration of ownership transfer of each of the instant officetels on April 13, 201.

C. On April 12, 2012, the Plaintiff reported and paid acquisition tax amounting to KRW 74,169,440 for each of the instant officetels’ tax base amounting to KRW 1,865,236,240, and KRW 3,708,470 for special rural development tax, and KRW 7,416,940 for local education tax.

D. On May 2, 2012, the Plaintiff acquired an officetel for the Defendant’s use in education, which is the Plaintiff’s business objective, and the Plaintiff asserted to the effect that it constitutes non-taxation of acquisition tax, and filed a request for correction seeking the refund of acquisition tax, etc. paid as above. However, the Defendant rendered a disposition rejecting the above request for correction (hereinafter “instant disposition”).

E. The Plaintiff dissatisfied with the instant disposition and caused an appeal to the Tax Tribunal on July 13, 2012, and the said claim was dismissed on November 6, 2012, and the written decision was served on the Plaintiff on November 9, 2012.

[Ground of recognition] Facts without dispute, Gap evidence 1, 2, 3, Gap evidence 4-1, 2, Eul evidence 1-1, 2, Eul evidence 3, and the purport of the whole pleadings

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

1) As the number of foreign teachers increases, each of the instant officetels was acquired to provide foreign teachers with accommodation as a result of the increase in foreign teachers, and is actually used as a lodging place for foreign teachers.

2) Due to the characteristics of universities located in areas other than Seoul, providing foreign teachers with accommodation is essential to secure foreign teachers.

3) Therefore, the acquisition of each of the instant officetels constitutes an acquisition tax-free object, where a person operating a school acquires real estate to use it for the pertinent business, and thus, the prior Defendant’s disposition on a different premise is unlawful.

B. Relevant statutes

Attached 'Related Acts and subordinate statutes' are as listed in each of the relevant Acts.

C. Determination

1) The main sentence of Article 41(1) of the former Restriction of Special Local Taxation Act (amended by Act No. 11618, Jan. 1, 2013; hereinafter “former Restriction of Special Local Taxation Act”) provides that the real estate acquired by a person operating a higher education under the Act on Special Local Taxation to use for the pertinent business shall be subject to acquisition tax if it is not used directly for the pertinent purpose (Article 1) or if it is sold, donated, or used for other purposes for less than two years for the period used directly for the pertinent purpose (Article 2(2)). The above provision provides that acquisition tax shall be imposed on the corresponding real estate if it is actually used directly for the education business of the school juristic person, and the scope of "use for the pertinent business" shall be determined on the basis of the actual relation of use for the pertinent real estate in consideration of the purpose of its business and purpose of its acquisition (see Supreme Court Decisions 200Du1385, Jun. 27, 2001; 200Du1785, Feb. 20017

2) Comprehensively taking account of the purport of Gap evidence 5-1, 2, Gap evidence 5-2, Gap evidence 7, 8, 12, 13, 19, and 20 testimony as witnesses of the first instance court, the plaintiff acquired each office of this case in order to provide foreigners of Gyeongsung University with accommodation facilities around February 7, 201 after the resolution of the board of directors on November 29, 201, the plaintiff acquired each office of this case. ② The office of this case, as of November 11, 2012, is actually used as accommodation of foreign language teachers of Gsung University; ② The office of this case, as of the 14th anniversary of the 2nd anniversary of the 14th anniversary of the 2nd anniversary of the 2nd anniversary of the 2nd anniversary of the 2nd anniversary of the 2nd anniversary of the 2nd anniversary of the 3nd of the 2nd of the 3nd of the 3rd of the 3rd of the 2nd of the 3rd foreign university, the 2nd of the 2nd of the 3rd.

3) The above facts are as follows: ① the Plaintiff maintains and operates an officetel for the purpose of providing university education; ② the Plaintiff is indispensable to provide instruction, lectures, research, etc. to university students in the Plaintiff’s business; ② in light of the recent trend of internationalization of university education, it is practically necessary to secure foreign school teachers for lectures necessary to compare not only the lectures of the language department such as practical Englishization, etc., but also the research achievements of various countries (this same applies even if it is not a full-time teacher). ② Securing excellent school teachers is one of the most important factors in achieving the original purpose of the education; ② securing rate of school teachers and securing rate of foreign school teachers is an important standard in the evaluation of university; ③ the Plaintiff acquires each of the buildings of this case for the purpose of using it as a lodging school for foreign school teachers; ④ it is considerably necessary to provide apartment houses to the Plaintiff’s business in order to directly use it as a staff member in the above school, ④ it is reasonable to directly use the building in accordance with the purpose of the Enforcement Decree of the Private School Act to provide the above 2nd.

4) Meanwhile, Article 42(1) of the former Restriction of Special Local Taxation Act provides that the dormitory of a university shall be exempt from the acquisition tax separately for the dormitory of the university. Each of the instant officetels is not constructed for the purpose of using it for educational business at the beginning, but is not located within the site of Gisung University. The mere fact that some of the above officetels users are not full-time teachers, is insufficient to reverse the recognition under Article 42(1) of the former Restriction of Special Local Taxation Act, and no other counter-proof exists.

5) Therefore, the instant disposition, based on the premise that each of the instant officetels does not constitute real estate used directly for the Plaintiff’s business, must be revoked as it is unlawful.

3. Conclusion

Therefore, the plaintiff's claim of this case is justified, and the judgment of the court of first instance which has different conclusions is unfair, so it is revoked and ordered to order the cancellation of the disposition of this case. It is so decided as per Disposition.

Oral Dus

Kimok-Dhan

Relevant statutes

Gu Restriction of Special Local Taxation Act (amended by Act No. 11618, Jan. 1, 2013)

Article 41 (Exemption for Schools and Foreign Educational Institutions)

(1) Schools under the Elementary and Secondary Education Act and the Higher Education Act, and Free Economic Zones and Jeju Free International City Act.

foreign countries under the Special Act on the Establishment and Management of Foreign Educational Institutions or the Special Act on the Development of Enterprise Cities;

Real estate acquired by a person operating an educational institution to use for the relevant project;

The acquisition tax shall be exempted until December 31, 2012: Provided, That in any of the following cases:

The exempted acquisition tax on the relevant portion shall be collected as a penalty.

1. It shall not be used for the relevant purposes without justifiable grounds by the time three years pass from the date of acquisition;

case.

2. Sale, donation, or resignation for other purposes when it has been used directly for the relevant purposes for less than two years.

applicable in the case of use

Article 42 (Reduction and Exemption for Dormitory, etc.)

(1) Any school referred to in subparagraphs 1 through 5 of Article 2 of the Higher Education Act, acquired by a school to use in a dormitory.

Acquisition tax on real estate, and substitute for real estate used directly for the relevant purpose as of the tax base date;

property tax (including an amount imposed pursuant to Article 112 of the Local Tax Act) and Article 146 of the Local Tax Act;

Local resource and facility tax under paragraph (2) and the pro rata property portion of resident tax for the relevant school, respectively, in 2012

Exemption by no later than January 31: Provided, That in any of the following cases, a substitute for the corresponding part shall be exempted:

Any exempted acquisition tax shall be collected as a penalty.

1. It shall not be used for the relevant purposes without justifiable grounds by the time three years pass from the date of acquisition;

case.

2. Sale, donation, or resignation for other purposes when it has been used directly for the relevant purposes for less than two years.

applicable in the case of use

former Local Tax Act (Amended by Act No. 11617, Jan. 1, 2013)

Article 151 (Tax Base and Tax Rate)

(1) The amount of local education tax shall be calculated by the following amounts:

1. With respect to acquired articles (excluding cases falling under Article 15 (2)): Article 11 to the tax base under Article 10;

Tax rates under Articles 1 (1) and 12 (where the tax rates are otherwise prescribed by municipal ordinance pursuant to Article 14, such tax rates shall apply thereto.

c. 20/100 of the amount calculated by applying the tax rate derived by subtracting 20/1000 from hereinafter the same shall apply).

Provided, That in any of the following cases, it shall be the amount prescribed in the relevant item:

(b) The Restriction of Special Local Taxation Act, the Restriction of Special Local Taxation Act, and the Ordinance on Local Tax Reduction and Exemption (hereinafter referred to as "local tax reduction

(1) Where acquisition tax is reduced or exempted under the Local Tax Reduction or Exemption Act, the rate of reduction or exemption of acquisition tax shall be prescribed.

local education tax shall be calculated according to the method of calculation referred to in the main sentence other than each item of this subparagraph.

2) The acquisition tax reduction rate different from this Act under the Local Tax Reduction and Exemption Act;

In the case of determining the applicable acquisition tax rate: the method of calculating the main sentence other than each item of this subparagraph, notwithstanding the applicable acquisition tax rate.

The amount of local education tax calculated: Provided, That where the tax rate is determined by 20/100, it shall be excluded from taxation.

section 3.

Act on Special Rural Development Tax.

Article 4 (Non-Taxation)

No special rural development tax shall be imposed in any of the following cases:

12. National economy or securing national competitiveness, such as technology and human resources development, property formation for low-income earners, public projects, etc.;

For efficient operation of the special rural development tax, the special rural development tax is deemed to require non-taxation.

Of those prescribed by Presidential Decree

Enforcement Decree of the former Act on Special Rural Development Tax (amended by Presidential Decree No. 24441, Mar. 23, 2013)

Article 4 (Non-Taxation)

(6) "Products prescribed by Presidential Decree" in subparagraph 12 of Article 4 of the Act means any of the following:

Reduction means a reduction or exemption;

5. Article 9 (2) of the Local Tax Act and Article 13 (2) 1 of the Restriction of Special Local Taxation Act (limited to the Rearrangement of Agricultural and Fishing Villages Act);

As a result, the State or a local government's agricultural infrastructure acquisition and ownership in accordance with the agricultural infrastructure improvement plan.

Articles 15(2), 16, 17, 17-2, and 19;

ARTICLE 20, 21(1), 22(1) and (5), 22-2(1) and (2), 22-3, 23, and

28(1), 29, 30(3), 31(1) through (3), 33, 34, or 36;

Articles 37, 38 (1), 40, 41 (1) and (5), 42 (2) and (3), 43 (1) and 44

Articles 45 (1), 46 (1), 50 (1), 52, 53, 54 (5), and 58-2;

Articles 60(4), 63, 66(3) and (4), 67(1) and (2), 72(1), and 73(1);

Paragraph (2), Articles 74(1), 76(1), 79, 80, 81(1) and (2), 83(1) and (2).

Reduction or exemption under Articles 85 (1), 85 (2), 88, 89 and 90 (1).

/ Private School Act

Article 28 (Management and Protection of Property)

(2) Sale or sale of property of a school juristic person directly used for school education prescribed by Presidential Decree.

subsection (1) of this section.

/ Enforcement Decree of the Private School Act

Article 12 (Scope of Non-Disposal of Property)

(1) Property which a school juristic person is unable to sell or offer as security pursuant to Article 28 (2) of the Act.

Property directly used for the education of private schools established and operated by the relevant school foundation, which is:

one of them shall be referred to as one of them: Provided, That in order to improve the educational environment, all school sites and educational instruments;

If it is intended to move the school or consolidate the principal school and the branch school after securing a part of the facility;

In the case of property referred to in subparagraphs 1 through 3 whose use is ceased due to transfer or consolidation, education, and

The following disposals by means of exchange between school foundations for strengthening and specialization of the Gu's competitiveness:

The foregoing shall not apply to property falling under any of the following subparagraphs:

1. School site;

2. A teacher (including an auditorium);

3. Sports grounds (including indoor sports grounds);

4. Practical training or research facilities; and

5. Other facilities, equipment, and teaching materials and aids directly used for education.

/Operational Regulations for University Establishment/Operation

Article 4 (Abetting)

(1) Teachers shall be classified in accordance with attached Table 2.

[Attachment 2]

Classification of Teachers' Facilities (related to Article 4 (1))

A person shall be appointed.