1. The plaintiff's claim is dismissed.

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

1. Details of the disposition;

A. The Plaintiff, while running a personal business with the trade name “C” in Gangseo-gu Busan Metropolitan Government, was invested in D (hereinafter “D”) on December 27, 2012 in relation to the land 5,142.8 square meters and the building 2,319.41 square meters located in Gangseo-gu Busan Metropolitan City (hereinafter “instant real estate”).

B. On February 19, 2013, the Plaintiff reported KRW 291,438,420 of the transfer income tax on the instant real estate and was subject to a carryover taxation following the transfer of fixed assets for business pursuant to Article 32(1) of the former Act on Special Cases concerning Tax Restriction (amended by Act No. 11614, Jan. 1, 2013; hereinafter “former Act”).

C. On March 18, 2013, the Plaintiff transferred 137,380 shares of D non-listed shares (the shareholding ratio of 93.85%; hereinafter “instant shares”) to E and F, a shareholder of D, each of 68,690 shares (hereinafter “instant shares transfer”), and did not file a return on the transfer income tax following the transfer of shares (hereinafter “instant shares transfer”).

On April 1, 2015, the Defendant: (a) converted the instant shares into a corporation by investing in kind the fixed assets for business pursuant to Article 32(5)2 of the Restriction of Special Taxation Act (amended by Act No. 11614, Jan. 1, 2013; hereinafter “the Act”); and (b) deemed that the resident subject to the carried-over taxation on the fixed assets for business constituted a disposal after January 1, 2013 by converting the fixed assets for business into a corporation, and issued a revised notice of KRW 349,842,680, capital gains tax for the year 2012, on the ground that the said assets for business constituted disposal after January 1, 2013 by the resident subject to the carried-over taxation on the fixed assets for business.

(hereinafter “instant disposition”) e.

On May 7, 2015, the Plaintiff filed an objection against the instant disposition with the Tax Tribunal, but was dismissed on September 22, 2015.

[Ground of recognition] Facts without dispute, entry of Gap evidence 1 to 5, purport of the whole pleadings

2. Whether the instant disposition is lawful

A. Article 11 of the Addenda to the Plaintiff’s assertion (hereinafter “Supplementary Rule”) provides that “The amended provisions of Article 32(5) of the Act shall be January 201, 2013.