A. Plaintiff A is the representative director of Plaintiff B (hereinafter “Plaintiff”) at the same time operating E, an individual company.

Defendant D dealt with the tax accountant service in Defendant C (hereinafter “Defendant D”) and became a personal entrepreneur by correcting his business registration on January 29, 2016.

B. Around July 2014, the Plaintiffs and the Defendant Corporation concluded a plane captain agency contract, and around that time, Defendant D performed the Plaintiff’s plane captain agent business, and around February 2015, the Suwon Heavy Regional Tax Office (hereinafter “JB”) entered into an advisory contract on response (hereinafter “instant advisory contract”).

C. On March 2015, the Second Lieutenant demanded the Plaintiffs to explain the details of transactions worth KRW 17.1 billion deposited in the Plaintiff’s individual passbook from 2011 to 2013, in addition to the sales reported by E and the Plaintiff Company from 2011 to 2013. The Defendant Corporation analyzed the details of transactions and explained to the effect that: (a) KRW 7.1 billion is the same as the details already reported on sales; (b) KRW 4 billion is merely a mere self-transaction; and (c) KRW 2.4 billion is not indicated by the depositor; and (d) there is a part irrelevant to the business among the remaining KRW 3 billion.

The Central Office of China proposed to the plaintiffs a written confirmation that E and the plaintiff company omitted a sales report of KRW 2.5 billion for five years from 2010 to 2014, and that if they receive additional taxation of KRW 1.6 billion, the tax investigation will be terminated.

When a tax investigation is extended, the defendant corporation stated that the omitted amount of sales declaration and the amount of excess tax accordingly increased, and that the issuance of false tax invoices can not be recognized as taxes of 1.6 billion won. Ultimately, the plaintiffs stated on April 1, 2016.