Main Issues

Where land purchased before a specific area announcement is transferred after such announcement, the method of calculating gains;

Summary of Judgment

If the plaintiff purchased the land of this case before it was announced as a specific area ( March 8, 1983), and sold it on September 3, 1987 thereafter, in calculating the transfer margin, the transfer value shall be the value based on the ratio under Article 115 (1) 1 (a) of the Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 12767 of Aug. 1, 1989) and the acquisition value shall be the value based on the conversion method under Article 115 (3) of the Enforcement Decree of the same Act.

[Reference Provisions]

Articles 23, 45, and 60 of the Income Tax Act; Article 115 of the former Enforcement Decree of the Income Tax Act (amended by the Presidential Decree No. 12767 of August 1, 1989)

Reference Cases

[Plaintiff-Appellant] Plaintiff 1 and 2 others (Law Firm Gyeong, Attorneys Park Jae-soo et al., Counsel for plaintiff-appellant)

Plaintiff-Appellant

Madsan Industries

Defendant-Appellee

Head of the tax office;

Judgment of the lower court

Seoul High Court Decision 88Gu9055 delivered on December 9, 1988

Text

The appeal is dismissed.

Reasons

The grounds of appeal are examined.