The meaning of dividends for import under Article 24-4 (1) of the Corporate Tax Act (Law No. 2566 of March 3, 1973)

The term "import dividends" under Article 24-4 (1) of the former Corporate Tax Act (Act No. 2566 of Mar. 3, 1973) refers to the total amount of dividends for import under Article 24-4 (1) of the former Corporate Tax Act, and it does not mean the remaining amount which remains after deducting the amount equivalent to the reduction of the income from reduction or exemption of the capital under Article 62 (1) of the Emergency Order on the Stabilization and Growth of Economy

Article 24-4(1) of the former Corporate Tax Act (Act No. 2566, Mar. 3, 1973); Article 62(1) of the Emergency Order Concerning Economic Stabilization and Growth (Presidential Emergency Order No. 15, Aug. 2, 1972)

[Defendant-Appellee] Korea Commercial Bank Co., Ltd.

The litigation performer Kim Jong-dae, Andong-style, Ansan-style, and the fixed number of gambling by the director of the Central Tax Office;

Seoul High Court Decision 78Gu620 delivered on June 10, 1980

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

We examine the Defendant’s first ground for appeal.

Article 24-4(1) of the Corporate Tax Act (Act No. 2566, Mar. 3, 1973) which was in force at the time when the taxation requirement of this case was established. Article 62(1) of the Emergency Order on Economic Stabilization and Growth (Presidential Emergency Order No. 15, Aug. 2, 1972) provides that all of the provisions on tax reduction and exemption should be strictly interpreted. However, even under any of the above Acts, there is no ground to view that a considerable portion of the dividend amount in income deduction should be excluded from the dividend income subject to tax reduction and exemption, and even if searching for the purport of each of the above provisions, Article 24-4(1) of the Corporate Tax Act and the above Emergency Order No. 14 of the Corporate Tax Act provides that "the above provisions of Article 24-4(1) of the Corporate Tax Act are derived from the purpose of fostering capital markets by inducing a domestic corporation to make investments in other corporations, and the provisions of Article 62(1) of the above Emergency Order No. 1 of the Corporate Tax Act provide that it would be excluded from the above tax base reduction and exemption.

We examine the second ground for appeal.

According to Article 5 of the Corporate Tax Act, the term "business year" as provided in this Act means one fiscal period prescribed by the law or the corporation's articles of incorporation, rules, etc., but it can be known that the period does not exceed one year. Thus, the business year does not exceed one year, but does not necessarily mean that it must not exceed 1 year, i.e., 12 months.

Therefore, the judgment of the court below on the premise that the business year of the Plaintiff Bank was not erroneous in the six-month period is just, and there is no error in the misapprehension of legal principles, such as the theory of lawsuit.

Therefore, this appeal is without merit, and it is dismissed. The costs of appeal are assessed against the losing party and it is so decided as per Disposition by the assent of all participating Justices.

Justices Yoon So-young (Presiding Justice)