2. The costs of lawsuit shall be borne by the Plaintiff.

A. On May 1, 1992, the Plaintiff established BITED, a corporation located in Hong Kong (hereinafter “B”). On August 18, 2009, the Plaintiff transferred 217,200 shares issued by the said corporation (hereinafter “instant shares”) to Hong Kong nationality C on August 18, 2009 while serving as the shareholder and representative director of the said corporation, and did not file a transfer income tax on the grounds that the transfer of assets abroad by a resident of less than five years as of the transfer date was not subject to transfer income tax.

B. From June 16, 2014 to September 5, 2014, the director of the Central Regional Tax Office: (a) conducted a tax investigation; (b) notified the Plaintiff as a domestic resident who has his/her domicile or residence in Korea for at least five years as of the date of the transfer of the instant shares; (c) accordingly, on October 1, 2014, the Defendant notified the Plaintiff of KRW 2,293,794,870 (including additional taxes) of the transfer income tax reverted to the Plaintiff in 2009.

(hereinafter “instant disposition”). C.

On November 20, 2014, the Plaintiff appealed to the Tax Tribunal, but was dismissed on July 27, 2016.

[Ground of recognition] No dispute, Gap 1 to 4, Eul 1's each entry, the purport of the whole pleadings

2. Whether the instant disposition is lawful

A. The Plaintiff’s assertion that the transfer income tax on the transfer of assets abroad shall be imposed only on a domestic resident who has his domicile or residence in Korea for at least five consecutive years prior to the date of transfer of the pertinent assets under the Income Tax Act. The Plaintiff: (a) all his family members living together in Korea around 1992, and vice versa; (b) established B and continued to serve as a representative director and registration director; and (c) acquired and retained all the domestic real estate acquired during his residence in Hong Kong while the real estate acquired during his residence in Hong Kong was all disposed of; (d) the Plaintiff constitutes a non-resident under the Income Tax Act by November 18, 2004, which is the day immediately preceding his final entry in Korea, as well as his spouse, even if the Defendant is a resident at the time of August 31, 2004, which is the tax base date.