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

This part of the reasoning of the judgment of the court of first instance is the same as the part on two to three pages, and thus, it shall be quoted in accordance with Article 8(2) of the Administrative Litigation Act and the main sentence of Article 420 of the Civil Procedure Act.

2. Whether the instant disposition is lawful

A. Summary of the parties' assertion

1) Plaintiff

A) As to the ground for disposition 1

Since the 00-minute Corporation is a business office which is not a Chinese corporation's subsidiary, even if the 00-minute Corporation closes its business ex officio, the special relationship between the Plaintiff and the Chinese corporation is not extinguished, so Article 11-9-2 (a) of the Enforcement Decree of the Corporate

B) As to grounds for disposition ②

The grounds for the disposition that the Plaintiff embezzled and embezzled the instant provisional payment are not identical to the grounds for the previous disposition, and thus, the Defendant’s additional grounds for disposition is not allowed.

Even if a disposition reason is allowed, since the Plaintiff’s income accrue to the Plaintiff immediately when the funds are useful, the period of attribution of the income should be deemed as 2010, 2011, and 2012, useful the instant provisional payment. Furthermore, if the Plaintiff considers the instant provisional payment useful, the disposition of imposition that deemed the instant provisional payment as the loan and considered the amount recognized as the income is unlawful.

2) Defendant

A) Grounds for disposition ①

As the 00-minute Corporation closes its business ex officio, the special relationship was extinguished between the Plaintiff and the 00-minute Corporation, and the 00-minute Corporation did not recover the provisional payment from the Plaintiff until that time. Thus, applying Article 11 subparag. 9-2(a) of the Enforcement Decree of the Corporate Tax Act, it is legitimate to include the provisional payment in the gross income and to dispose of it as a bonus to the Plaintiff, who is

B) Grounds for Disposition B

The Plaintiff appropriated the funds of the Chinese corporation or the 00-minute Corporation, and thus the funds were reverted to the Plaintiff as earned income. Moreover, the 00-minute Corporation decided not to realize the Plaintiff’s damage claim against the Plaintiff in 2013 when the 00-minute Corporation ceased ex officio to exist. As such, the time when the Plaintiff’s income accrued therefrom should be deemed to be 2013.

B. Relevant statutes

It is as shown in the attached Form.

C. Grounds for disposition ① Recognition

1) Relevant legal principles

Article 14(1) and (2) of the Framework Act on National Taxes is a practical principle for realizing the principle of equality, which is the basic ideology of the Constitution, in a tax legal relationship. In a case where unreasonable form or appearance that is irrelevant to the substance of a taxation requirement is taken for the purpose of evading a tax burden, the main purpose of this principle is to regulate unfair acts of tax avoidance and to enhance equity in taxation by imposing tax on a place where the taxable capacity exists, notwithstanding its form or appearance. This is not in conflict with the principle of no taxation without law, which is the basic principle of the tax law, but rather, to the extent that predictability and legal stability are not undermined in the application of various economic and living relations with various changes, it is mutually complementary and indivisible between the principle of no taxation without law and the principle of no taxation without law. If the application of the principle of no taxation without law and the composition of civil law, which is the cause of the application of the principle, are not necessarily necessary. If the substance and form of the substance of an act chosen by the parties, such as the form of transaction or the substance of an act, are not clear within the scope of taxation requirement.

(ii) the facts of recognition

(1) The Chinese corporation, established on December 15, 2003, sells extraction, coal, building materials, imported timber, etc. and sells them.

A limited liability company engaged in export business. The Plaintiff’s deputy director, the representative director of a Chinese corporation, is the Plaintiff.

△△△ has 65% shares of Chinese corporation, and the plaintiff holds 35% shares of Chinese corporation, respectively.

② On June 8, 2010, the Corporation completed the registration as the business office of a Chinese corporation. On May 31, 2010, the Plaintiff acquired, with the capital of 00 minutes, three parcels of land, 6,094 square meters and 678.32 square meters on the land, including Jeju-si, Y-si, Y-dong, 000 Y-dong, 000 m2000 m200 (hereinafter “the apartment of this case”), and on April 30, 2012, three parcels of land, 6,094 square meters and 678.32 square meters on the land (hereinafter “the Jeju-si real estate”).

③ In 2010 to 2013, the Corporation reported the corporate tax and value-added tax as listed below, and the corporate tax and value-added tax have not been reported after the ex officio closure of business.

Details of reporting corporate tax and value added tax;

(unit:,000 won)

Corporate Tax

Value-added Tax

Business year

Revenue amount

Tax Base

Amount of tax

Taxation Period

Sales Schedule

Purchase Schedule

Amount of tax

2010

-

△△00,000

△△1

2010.1

-

0,000

△△00

2010.2

-

00,000

△△,000

2011

0,000,000

△△00,000

△△1

2011.1

0,000,000

0,000,000

△△00,000

2011.2

0,000,000

0,000,000

00,000

2012

0,000,000

-

△△2

2012.1

0,000,000

0,000,000

00,000

2012.2

0,000,000

0,000,000

00,000

2013

-

-

2013.1

00,000

00,000

0,000

2013.2

-

-

-

④ From January 1, 2013 to April 2, 2013, three vehicles for business use and two houses for business use owned by the 00-minutes were entirely sold (no sales was made except for the above sale during the first period of 2013), the Plaintiff, its representative, left China on June 27, 2013, and the Plaintiff’s family member left China on July 18, 2013, and the instant apartment was transferred to a third party on September 6, 2013.

⑤ In the year of 2013, Chinese corporations appropriated 8.5 billion won as long-term investment assets for 00 minutes of construction.

④ On the other hand, the head of the OO head of the tax office confirmed that the 00-minute moved into the 00-dong Seoul Special Metropolitan City 00-J AA 1j 000 on August 26, 2013 and left the 00-minute public corporation was closed ex officio on August 26, 2013, and then closed the 00-minute public corporation ex officio on August 26, 2013.

[Grounds for recognition] The above quoted evidence, Gap 3 and 13 evidence, and the purport of the whole pleadings

3) Determination

A) In light of the facts acknowledged earlier, the above quoted evidence, evidence Nos. 6, 10, and evidence Nos. 9, 10, and 10, and the following facts and circumstances acknowledged by comprehensively considering the overall purport of the pleadings, the substance of the 00-minute Corporation is merely taking the form of the business office of a Chinese corporation for the purpose of evading the income tax to be borne by the Plaintiff, a representative, despite being a subsidiary with independent legal personality, with respect to the amount of KRW 9.48,000,00,000 paid in the form of “provisional payment,” and such viewing is also consistent with the principle of substantial taxation as seen earlier. Since the instant provisional payment was finally reverted to the Plaintiff upon the extinguishment of a special relationship between the Plaintiff and the Plaintiff upon the ex officio closure of the 00-minute Corporation’s business, the instant provisional payment was imposed on the Plaintiff by applying Article 11-2(a) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 26981, Feb. 12, 2016). 3019

① In a written request for a trial submitted to the Tax Tribunal on November 21, 2014, the Plaintiff voluntarily stated 00 minutes of construction work as “non-claimed corporation” or “Korean company”, and the Chinese corporation as “a parent corporation of the non-claimed corporation”. The non-claimed corporation is a corporation established according to a long-term plan, not established to pursue short-term profit, and the parent corporation does not intend to discontinue the non-claimed corporation, and thus the special relationship between the Plaintiff and the non-claimed corporation exists between the Plaintiff and the non-claimed corporation,” or the Plaintiff and the female, a child who is the father of the Plaintiff, established the non-claimed corporation in order to prepare the basis of living in Korea for the sake of the Plaintiff and the female, which is the reason for the △△△△△△

② According to the financial statements notes in 2013, according to the Chinese corporation’s 2013 financial statements, the Chinese corporation appropriated 8.5 billion won (based on the exchange rate of December 31, 2013) at the long-term stock investment amount of 00 minutes for 00 minutes, and there is no reason to have a long-term investment assets account separately if 00 minutes of the corporation is merely the business office of the Chinese corporation. In addition, the audit report in 2015 of the Chinese corporation also has a long-term investment assets account as in the audit report in 2015, and 00 minutes

③ 00분공사는 2012. 1. 25. 주식회사 CCCC과 코크스 매매계약을 체결하였는데, 계약서에 "주식회사 □□□□□□□유한공사 00분공사, 대표이사 원고"라고 기재하였다. 또 2014. 1. 6. 중국▼▼▼▼▼▼▼▼▼유한회사와 체결한 석탄매매계약의 계약서에서는 "중국☆☆☆☆☆☆유한회사 한국회사"라고 기재하였다. 위와 같은 계약 체결 주체 및 계약서의 기재에 비추어 00분공사는 단순히 대한민국 내에서 중국법인의 영업소 지위에서 제3자와 계약을 체결한 것이 아니라 별개의 법인격을 갖는 자회사의 지위에서 계약을 체결하였다고 보인다.

④ On June 6, 2014, the Chinese corporation and the 00-minute Corporation respectively become the parties concerned, and entered into four-minute agreements with DDDDDDD and EE EED Limited Corporation, and entered into four-minute agreements. The agreement is clear that China also treats 00-minutes as separate corporations, instead of 00 minutes of the agreement, that DDDDDD transfer to EE Limited Corporation in lieu of 00 minutes of the agreement, and that 00-minutes of the above claims that are paid on behalf of the Chinese corporation are repaid to China corporation. In other words, the agreement is divided into the Chinese corporation and the 00-minutes corporation are divided into separate parties to the contract, and the effect of the legal act of 0-minutes corporation belongs to 00 minutes of the corporation.

⑤ The Plaintiff asserted that 00 minutes of the instant provisional payment that was withdrawn from May 2, 2010 to three years after the establishment of 00 minutes of the instant apartment, the instant apartment, and the instant Jeju land and building acquisition, etc., were used by the Plaintiff, who was the reason for △△△△△, established a 00-minute construction project in order to lay the foundation for the living in Korea.

C. This is far more than KRW 8.5 billion paid by a Chinese corporation to establish and operate a 00 minute construction work.

④ However, while withdrawing the provisional payment of this case, the Plaintiff did not enter into a loan agreement for consumption, etc. with Chinese corporation or 00 minutes corporation, and did not obtain approval from the board of directors under Article 398 subparagraph 1 of the Commercial Act. By the time of the disposal of the apartment of this case, the Plaintiff did not take measures to secure claims, such as creating a collateral for the instant apartment in the name of Chinese corporation or 00 minutes corporation to collect the provisional payment of this case or real estate at Jeju city in order to collect the provisional payment of this case. In addition, from 2010 to 2012 when the Plaintiff withdrawn the provisional payment of this case, the 00 minutes corporation did not include the "short-term loan to officers" or "other long-term loan to officers", and it was unclear whether the provisional payment of this case belongs.

7) Unlike the year 2012 in which approximately KRW 9.2 billion in total sales, approximately KRW 7.4 billion in total sales, and approximately KRW 7.4 billion in sales, the Corporation did not run any other business except for the sale of a vehicle owned by 00 minutes in April 2, 2013 and the total collection period, which came into contact with the year 2013. Since then, the Plaintiff and his family, the representative of the Corporation, left China in order, left the place of business on August 26, 2013, and disposed of the instant apartment house, which was purchased with the funds of 00 minutes in China (the Plaintiff claimed that he returned to China to treat the heart disease, the Plaintiff’s disease, but it is insufficient to recognize it only by evidence No. 4).

④ Ultimately, while Chinese corporation used the Plaintiff, a representative, in the form of a “provisional payment” in addition to the funds of Chinese corporation in Korea, from 00 minutes of operating income, it appears that the Plaintiff established a 00-minute construction project in the form of a business office, not a corporation, for the purpose of evading the income tax to be borne in relation to the said provisional payment from the representative of the 00-minute construction project

9. 00 minutes of construction works, other than the sale of automobiles and fixtures by April 2, 2013, are not engaged in other businesses except for the sale of automobiles and fixtures, etc., and the special relationship between the Plaintiff and the Plaintiff is also extinguished upon ex officio closure of business on August 26, 2013 when the Plaintiff, its representative, left China (it is difficult to accept the above assertion in light of the following circumstances: (a) although the Plaintiff asserts to the effect that the 00 minutes of construction works would continue to operate the business, the Plaintiff is also asserting that the 00 minutes of construction works would have a meaning that the construction works would continue to run the business; (b) the sales of automobiles and fixtures, and (c) the details of the

Nevertheless, it is reasonable to view that the 00-minutes Corporation did not recover the provisional payment of this case from the plaintiff until the disposition of this case was taken, and thereby, it is reasonable to deem that the provisional payment of this case was finally reverted to the plaintiff (it is insufficient to recognize the above assertion only by other evidence, including the confirmation of claims and obligations (Evidence A14) on January 8, 2016, in light of the aforementioned various circumstances).

B) Furthermore, even if the 00 minutes of the instant provisional payment is considered as a business office of a Chinese corporation, not a subsidiary with independent legal personality, for the following reasons, the instant provisional payment is included in the gross income of the 00 minutes of the instant provisional payment, and the disposal of the instant provisional payment can be made as a bonus to the Plaintiff, who is the person to whom it belongs

(1) A foreign corporation which has a domestic source income under Article 2 (1) 2 of the Corporate Tax Act shall be liable to pay corporate tax on such income pursuant to the Corporate Tax Act, and Articles 91 through 99 of Chapter IV of the Corporate Tax

section 3 provides various provisions concerning corporate tax on income for each business year of foreign corporations.

section 92 of the Corporate Tax Act applies to the income of each business year of foreign corporations with a domestic place of business.

Article 15 (Scope of Gross Income) and Article 97 of the Corporate Tax Act provide that Article 67 of the Corporate Tax Act shall apply mutatis mutandis to the disposal of income to a foreign corporation with a domestic place of business.

② Meanwhile, Article 15(1) of the Corporate Tax Act provides that “The amount of profit shall be the amount of profit generated by transactions which increase the net assets of the relevant corporation, except as otherwise provided for in this Act,” and Article 15(2) of the same Act provides that “the necessary matters concerning the scope and classification, etc. of the profit under paragraph (1) shall be prescribed by Presidential Decree,” and accordingly, Article 11(2)(a) of the Enforcement Decree of the Corporate Tax Act provides that “the amount of provisional payments, etc. paid to the related party without connection with the business of the relevant corporation, which are not recovered by the date on which the special relationship terminates.”

In addition, Article 67 (Disposition of Income) of the Corporate Tax Act provides that "where the corporate tax base on the income for each business year is reported in accordance with Article 60, or the corporate tax base is determined or revised in accordance with Article 66 or 69, the amount included in the calculation of earnings shall be disposed of as prescribed by Presidential Decree, such as bonus, dividend, outflow, internal reservation, etc. to the person to whom the income belongs, and accordingly, Article 106 (1) 1 of the Enforcement Decree of the Corporate Tax Act provides that where the amount included in the calculation of earnings is clear that it was out of the company, it shall be disposed of as dividend, bonus from the disposal of profits, other income, and other outflow from the company according to the person

On the other hand, Article 106 (1) 3 of the Enforcement Decree of the Corporate Tax Act provides that "the amount included in the calculation of earnings shall be disposed of as dividends, bonuses, and other income according to the person to whom the income belongs, in principle, if income that is not expected to be taxed on the person to whom the income belongs is not included because it is planned that the income from the outflow will be imposed separately by forming the taxable income of the person to whom the income belongs, notwithstanding Article 106 (1) 1 of the Enforcement Decree of the Corporate Tax Act." In addition, Article 106 (1) 3 (j) of the Enforcement Decree of the Corporate Tax Act provides that "in filing a report on, determining or revising the corporate tax base on the income of the domestic business place of a foreign corporation for each business year of the foreign corporation, the income that belongs to the foreign corporation

(3) Accordingly, pursuant to Article 67 of the Corporate Tax Act and Article 11-9-2 (a) of the Enforcement Decree of the Corporate Tax Act with respect to a foreign corporation having a domestic place of business, provisional payments, etc. paid to the related parties to the domestic place of business of the foreign corporation without relation to the business of the relevant domestic place of business, which have not been recovered by the date on which the special relation ceases to exist, may be deemed as profits for the pertinent business year and included in the gross income for the pertinent business year. In such cases, the person to whom the amount included in the gross income is reverted shall be the related parties to the domestic place of business of the foreign corporation

④ In the instant case, the Defendant’s special relationship between the Plaintiff, its representative, and the 00-minute Corporation, upon ex officio closing of the 00-minute Corporation’s construction project, was extinguished, and until that time the instant provisional payment was not recovered, applied Article 67 of the Corporate Tax Act; Articles 11 Subparag. 9-2 (a) and 106(1)1 (b) of the former Enforcement Decree of the Corporate Tax Act, and included the instant provisional payment in the gross income of

In addition, since the plaintiff was disposed of as a bonus to the representative who is the person to whom the provisional payment belongs, there is no illegality in this regard (the plaintiff is not the plaintiff but the person to whom the income accrued from inclusion in the calculation of earnings of the provisional payment in this case is a Chinese corporation. Thus, the plaintiff asserts that the other company should be out of the company pursuant to Article 106 (1) 3 (j) of the former Enforcement Decree of the Corporate Tax Act. However, according to the facts acknowledged earlier, the above provisional payment person is not a Chinese

D. Sub-committee

Therefore, the disposition of this case is legitimate, since it is recognized as ground for disposition ① (the disposition of this case is not further determined as ground for disposition ②, which is a selective disposition ground for disposition).