A. The Plaintiff engaged in the steel system business with the trade name “C” in the business place located in Gyeongcheon-si, Gyeongcheon-si (hereinafter “instant business establishment”). The Plaintiff established a corporation D (hereinafter “instant corporation”) by investing in kind all of the business assets and liabilities of the instant business establishment, including the land and its ground buildings (hereinafter “instant building”) on the land outside 11 parcels in Gyeongcheon-si, Gyeongcheon-si, Gyeongcheon-si, Seoul (hereinafter “instant building”).

B. On September 30, 2009, when the Plaintiff reported the transfer income tax to the Defendant as indicated in the following table, the Plaintiff applied for a carryover taxation of the transfer income tax on the conversion of the instant investment in kind to the Defendant pursuant to Article 32 of the former Restriction of Special Taxation Act (amended by Act No. 9921, Jan. 1, 2010; hereinafter the same).

(1) The former part of the transfer value (1) (1) transfer value (1) calculated on July 28, 2009. < Amended by Presidential Decree No. 20391, Jul. 27, 2007; Presidential Decree No. 20358, Jul. 27, 2007; Presidential Decree No. 20358, Jul. 28, 2009; Presidential Decree No. 20687, Jul. 28, 2009; Presidential Decree No. 20357, Jul. 27, 2007; Presidential Decree No. 20393, Feb. 278, 2007; Presidential Decree No. 2039, Oct. 37, 421; Presidential Decree No. 20681, Jul. 2, 28, 209; Presidential Decree No. 25174, Jan. 4, 201, 205>

C. On July 17, 2009, the director of Busan Regional Tax Office pointed out that the market price of the building of this case does not fall under the appraisal value of the Pacific Appraisal Corporation (hereinafter “Appraisal value”) 1,539,037,500 won, not the acquisition value on the account book (hereinafter “book value”) 2,464,801,525 won. In such a case, the net asset value of the business of this case exceeds KRW 4,365,986,000 of the corporation’s capital of this case. Thus, the net asset value of the business of this case exceeds KRW 3,60,000 of the corporation’s capital, and thus, it does not fall under the requirements for carryover taxation under Article 32 of the Restriction of Special Taxation Act (the net asset value of the business place converted into the corporation’s capital stock).

On April 7, 2015, the defendant belongs to the plaintiff in 2009.