Whether the instant service constitutes a tax exemption

Since it is reasonable to deem that the instant service constitutes a human resources supply service subject to value-added tax, not an employment brokerage service exempt from value-added tax, the instant disposition based on the premise that the Plaintiff was engaged in the human resources supply business is lawful.

Article 12 of the Value-Added Tax Act

Incheon District Court 2014Guhap31876 Disposition of Imposing Value-Added Tax

AA

BB Director of the Tax Office

February 26, 2016

Mar. 26, 2016

1. The plaintiff's claim is dismissed.

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

1. Details of disposition;

A. The Plaintiff is a company engaging in job placement services in the area of 00 U.S. Seocheon-gu, Seocheon-gu and 000 U.S.

B. During the value-added tax period from the first to the second half of 2011, the Plaintiff sent nursing staff to a number of convalescent hospitals, such asCC Hospital (hereinafter “instant convalescents”), and received wages from the said convalescents en bloc from the said convalescents (hereinafter “instant services”); and the Plaintiff issued an invoice of KRW 6,917,00,000 in total supply value to the said convalescent hospitals on the ground that the instant services are job placement services for job seekers who fall under value-added tax-free services.

C. The Defendant deemed that the instant service does not constitute an employment brokerage business subject to value-added tax exemption and constitutes a human resources supply business subject to value-added tax, and rendered each of the instant dispositions against the Plaintiff on September 10, 2013 regarding the purport of the claim.

D. On October 28, 2013, the Plaintiff filed a tax appeal on each of the instant dispositions, but was dismissed on March 25, 2014.

[Reasons for Recognition] Facts without dispute, Gap evidence 1, 2-1 to 4, 10-1, 2, Eul evidence 1-1 to 4, and 6-2, the purport of the whole pleadings

2. The legality of the instant disposition

A. The plaintiff's assertion

The Plaintiff arranged nursing workers in the instant convalescent, and deducted part of the amount of wages from the instant convalescent at the request of the hospital, and paid wages to nursing workers. As such, the instant services constitute an employment brokerage business, not a human resources supply business, and thus, the value-added tax should be exempted.

(b) Related statutes;

It is as shown in the attached Table related statutes.

C. Determination

1) Article 12(1)14 of the former Value-Added Tax Act provides that "personal services that are provided for occupation by low-income earners, musicians or other persons prescribed by the Presidential Decree" as one of the objects eligible for value-added tax exemption, and Article 35 of the former Enforcement Decree of the Value-Added Tax Act provides that "personal services provided for in Article 12(1)14 of the former Enforcement Decree of the Value-Added Tax Act (including the case where an entrepreneur concurrently operating several businesses independently supplies services that are not necessarily incidental to taxable businesses) are supplied as an independent business (including the case where an entrepreneur who independently operates several businesses independently supplies services that are not necessarily incidental to taxable businesses)," while 'personal services that are provided as independent qualifications by an individual

Meanwhile, Article 1(3) and (5) of the former Value-Added Tax Act and Article 1(3) of the former Enforcement Decree of the Value-Added Tax Act provide that the classification of the business that supplies services shall be based on the Korean Standard Industrial Classification publicly notified by the Commissioner of the Statistics Korea, as a matter of principle. According to the Korean Standard Industrial Classification, the operation of a job placement office belongs to the job placement business, which is a primary industrial activity, to select, arrange, and place human resources on behalf of the employer or job seeker based on the information on jobs and job seekers. In this case, job seekers are distinguishable from the job placement business that supplies human resources, a worker under his/her management, to a third

In full view of the above provisions, the body distinguishing between the employment intermediary business operator who is a value-added tax-free business operator and the manpower supplier who is a taxable business operator is whether these business operators are in the position of employer under the Civil Act.

2) In light of the above legal principles, if we examine the above facts, Gap evidence Nos. 3-1 through 6, 4-1 through 5, Eul evidence Nos. 2-5, 6-1 through 4, the overall purport of oral arguments, etc., including the following circumstances: (i) the "job placement services" as well as the "job placement services" are included in the corporate register; (ii) the plaintiff's transfer to a non-taxable corporation on January 30, 2013, after the taxation period of each of the dispositions in this case was completed, it is difficult to conclude a contract for dispatch with some of the convalescent hospitals in this case; and (iii) the plaintiff's application for the nursing services is not directly concluded with the nursing service personnel in this case; and (iv) the plaintiff's transfer of the nursing service personnel in this case, including the plaintiff's nursing service personnel, to the patient under the premise that there is no need for nursing service fees to be paid to the plaintiff; and (v) the plaintiff's transfer of the nursing service personnel in this case to the hospital.

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit. It is so decided as per Disposition.

section 3.