Whether the value of household appliances and installation costs are included in the tax base amount of acquisition tax and registration tax following the acquisition of apartment houses (affirmative)

In order to meet the trend of housing environment improvement and the elevation of the quality of apartment, attached home appliances are placed by placing them in the cryp to the cryp-in so that they can be used most efficiently from the construction stage of apartment buildings, and they are purchased and constructed en bloc by placing them in the cryp-in to the cryp-in so that they can be used most efficiently from the construction stage of apartment, and attached home appliances are installed customly in the cryp-in and attached to apartment, making it difficult to separate them difficult to separate them in the apartment, and reducing the utility of apartment in the case of separation from apartment, attached home appliances are objects attached to or attached to apartment, so it is essential to increase the utility of apartment itself. Therefore, the amount of tax to be added to the tax base of acquisition tax and registration tax according to the acquisition of apartment houses should be calculated including the value of home appliances products and the cost of installing them.

Articles 104, 105, and Article 82-3 of the Enforcement Decree of the Local Tax Act;

Plaintiff 1 and 523 others (Attorney Yoon Young-young, Counsel for the plaintiff-appellant)

The head of Dong-gu Busan Metropolitan City

May 1, 2008

1. All of the plaintiffs' claims are dismissed.

2. The costs of lawsuit are assessed against the plaintiffs.

The part of the acquisition tax, registration tax, and education tax as stated in the attached Table 2. Each disposition of each of the relevant acquisition tax, registration tax, and education tax, registration tax, 21,000 won, and 4,200 won of education tax, as stated in the attached Table 1. Each of the plaintiffs is revoked.

1. Details of the disposition;

A. The Plaintiffs, from the Korea National Housing Corporation, sold each of the relevant households listed in the separate sheet 2, attached to the 1251 Gangseo-dong, Busan National Housing Corporation (hereinafter “instant apartment”), and acquired it on the date of each acquisition listed in the separate sheet 2, attached hereto.

B. The Plaintiffs calculated the tax amount, including the cost of installing (2,079,849 won per household) for the instant apartment, the cost of installing the main TV, drum laundry, gas emitting emitting, and Slick (hereinafter “the instant home appliances”) included in the sales price of the instant apartment at the tax base of acquisition tax, registration tax, etc. (including education tax; hereinafter the same shall apply) for the instant apartment, and reported it to the Defendant on the date of each of the pertinent declarations listed in the attached Table 2 (hereinafter “instant disposition”).

[Reasons for Recognition] Facts without dispute, Gap 1 to 3 evidence, Eul 4 evidence (including each number; hereinafter the same shall apply), the purport of the whole pleadings

2. Whether the disposition is lawful;

A. The plaintiffs' assertion

(1) The Defendant had the Plaintiffs calculate, report, and pay the tax amount, including the cost of installing household appliances of this case, at the tax base of acquisition tax and registration tax on the apartment of this case. The household appliances of this case are not the paper that is offered for the common use of the apartment of this case, and the cost of installing household appliances of this case is not the subject of taxation such as acquisition tax and registration tax on the apartment of this case.

(2) In addition, it goes against the principle of tax equality because it discriminates against the plaintiffs in comparison with the imposition of acquisition tax and registration tax, etc. for home appliances, which are blurgy, in the case of hot spring-dong apartment as well as other areas in the same region.

(3) Therefore, the instant disposition is unlawful.

B. Relevant statutes

[Local Tax Act]

Article 104 (Definitions)

The terms used in relation to acquisition tax shall be defined as follows:

1. The term “real estate” means land and buildings;

4. The term "buildings" means buildings under Article 2 (1) 2 of the Building Act (including the buildings similar thereto), leisure facilities, storage facilities, Docking facilities, landing facilities, conduit facilities, conduit facilities, water supply and drainage facilities, energy supply facilities, and other similar facilities fixed on the land, or installed on the underground or other structures (including facilities annexed thereto), which are prescribed by Presidential Decree;

Article 105 (Persons Liable to Pay Tax)

(1) Acquisition tax shall be imposed on a person who acquires real estate, a vehicle, mechanical equipment, standing timber, aircraft, ships, mining rights, fishing rights, golf membership rights, riding club membership rights, condominium membership rights, or right to use athletic facilities complex in the Do (referring to the Do in which golf membership rights, riding club membership rights, condominium membership rights, and right to use athletic facilities complex are located) in which the relevant acquired article is located.

(4) With respect to a building constructed, fabrication or any accessory equipment which has an effective value to a building by integrating with a major structure of the building, shall be deemed to have been acquired concurrently by the person who acquired the building, even though the said equipment has actually been installed by a person other than the acquisitor of the building.

[Enforcement Decree of the Local Tax Act]

Article 82-3 (Scope of Acquisition Value)

(1) The tax base of acquisition tax shall mean all the expenses paid or to be paid (including expenses for direct and indirect expenses (excluding value-added tax), such as subscription fees, design expenses, late fees, interest on installments, and interest on the amount appropriated for construction funds, etc., but excluding late fees and interest on installments, if acquired by any person other than a corporation) to acquire the relevant goods prior to the date of acquisition of a taxable object: Provided, That where the amount agreed on in a sales contract is discounted on the condition of a lump sum payment, etc., such discounted amount shall be such amount.

C. Facts of recognition

(1) Sale of the apartment of this case and current status of household appliances of this case

(A) Since the time of design, the apartment of this case is designed to install household appliances, such as the main set, TV, drum laund, gas emitting shot, Lane, air conditioners, etc., with no choice of the seller on the installation of the household appliances and the installation items, and at the time of sale, the household appliances, which are essential for all households, are installed, and the cost of installing the household appliances, are included in the sale price of the apartment of this case, but not separately calculated.

(B) Although it is not physically impossible to separate the instant leased appliances from the instant apartment, they are installed in the instant apartment, so it is not easy to separate them because they are attached to a customized building, and the cost of the instant leased appliances includes not only material costs but also labor costs and expenses incurred by the installation.

(C) According to the sales contract of the apartment of this case, in the case of selective-type items different from the above household appliances, the item and payment method of the price shall be provided for in a separate contract other than the sales contract (Article 1). The price of selective-type items and the sales price of the apartment of this case shall be calculated separately from the sales price of the apartment of this case.

(2) The relationship between the value of the leased goods and the tax base such as the acquisition tax and the registration tax

(A) The Defendant imposed acquisition tax and registration tax, etc. on the apartment sale price, including the apartment price of household appliances, as the tax base. On January 27, 2005, the Defendant, from January 27, 2005 to January 27, 2005, excluded the cost of household appliances from the tax base of acquisition tax and registration tax, etc.

(B) However, on May 19, 2006, the defendant asked the Minister of Government Administration and Home Affairs as to whether the value of household appliances, which was leased from the Minister of Government Administration and Home Affairs, is included in the tax base such as acquisition tax and registration tax of the apartment of this case. On May 22, 2006, the Minister of Government Administration and Home Affairs sent a reply to the effect that it is reasonable to determine whether the household appliances are the specific products offered for the common use of apartment as facilities installed by connecting or attaching them to apartment buildings.

(C) Accordingly, on May 24, 2006, the Defendant: (a) conducted an on-site inspection of the apartment of this case on the site; and (b) determined that the air clean of household appliances included in the sale price of the apartment of this case, among household appliances, are independent household appliances, and excluded from the said tax base; and (c) determined that the household appliances of this case are integrated into the building and included in the tax base; and (d) reported and paid the acquisition tax and the registration tax, etc. for the apartment of this case in accordance with the above criteria.

(D) On the other hand, the controversy over whether the acquisition tax and registration tax are imposed on the household appliances has continued, and the Minister of Government Administration and Home Affairs notified each local government of the fact that the value of household appliances, which were designed and constructed before the time of acquisition of apartment units in lots, is included in the tax base for acquisition tax and registration tax, by considering the cost of acquisition of apartment units and the value of household appliances, which are acquired with compensation together with apartment units, as all expenses incurred

[Reasons for Recognition] Gap evidence 1 to 7, Eul evidence 1 to 7, Eul evidence 9, the purport of the whole pleadings

(d) Markets:

(1) Determination as to the assertion of the above A. (1)

According to Article 104 subparagraph 4 of the Local Tax Act, facilities attached to a building of acquisition tax shall also be included in a building. The incidental facilities referred to in the above Article mean facilities essential to increase the efficiency of the building itself (the same shall apply to the case of registration tax). The following circumstances acknowledged by the above facts are as follows: household appliances, which are leased, are placed at the disposal price of the apartment, so that they can be used most efficiently from the construction stage of the apartment to improve the residential environment and improve the quality of the apartment, and are purchased and constructed in a lump sum, so that they can be used most efficiently from the construction stage of the apartment. Since the household appliances, which are leased of this case, are planned to be installed from the time of designing them, are also included in the installation cost of the apartment, and are not included in the sale price of the apartment of this case, so it is difficult for the seller to arbitrarily separate them from the sale price of the apartment, and it is also difficult for the seller of this case to use them separately from the sale price of the apartment products of this case.

(2) Determination as to the assertion of the above A. (2)

The principle of tax equality is the realization of the principle of equality as stipulated in Article 11(1) of the Constitution, and it is a principle that the imposition and collection of taxes are demanded to be fair and equitable commensurate with the taxpayer's ability to pay taxes, and it is not permitted to unfavorably discriminate or give preferential treatment to a specific taxpayer without any reasonable reason. As seen earlier, while the standards for whether the value of home appliances constitutes the tax base of acquisition tax and registration tax, etc. have not been established clearly, the defendant determined that the home appliances of this case is a facility which is unnecessary to fulfill the utility and function of apartment houses through on-site inspection by the inquiry by the Minister of Government Administration and Home Affairs, based on the inquiry by the Minister of Government Administration and Home Affairs, and it cannot be said that it violated the principle of tax equality by unfavorably discriminating against the plaintiffs without any reasonable reason on the ground that the value is calculated and imposed in the above tax base (Article 11(1) through 6 of the evidence No. 8-1 of this Decree, even in the case of the plaintiffs' hot spring dong apartment after the above inquiry of the plaintiffs's claim.

(3) Therefore, the instant disposition is lawful.

3. Conclusion

Therefore, the plaintiffs' claims are dismissed in entirety as it is without merit. It is so decided as per Disposition.

Judges Yellow Jin-hun (Presiding Judge)