In a case where class 2 disabled Party A acquired and registered a motor vehicle on December 7, 2015, and the head of the competent Gu exempted Party A from acquisition tax pursuant to Article 17 of the former Restriction of Special Local Taxation Act, and the head of the competent Gu sold the motor vehicle to Party B on December 7, 2016, and the head of the competent Gu issued an additional collection disposition of acquisition tax exempted pursuant to Article 17 (2) of the same Act on the ground that “A transferred ownership within one year from the date of registration” to Party A, the case holding that the aforementioned additional collection disposition is lawful on the ground that the period of restriction on acquisition tax reduction or exemption is until December 7, 2016.

On December 7, 2015, a class 2 disabled Party A acquired and registered a motor vehicle, and the head of the competent Gu exempted Party A from acquisition tax pursuant to Article 17 of the former Restriction of Special Local Taxation Act (amended by Act No. 13637, Dec. 29, 2015), and the head of the competent Gu sold the motor vehicle to Party B on December 7, 2016, the head of the competent Gu issued an additional collection of acquisition tax pursuant to Article 17(2) of the same Act on the ground that “A transferred ownership within one year from the date of registration” against Party A.

As long as there is no special provision excluding the application of the provisions of the Civil Act under Article 17(2) of the former Restriction of Special Local Taxation Act or other local tax-related Acts and subordinate statutes or ordinances, in interpreting the provisions of Article 17(2) of the former Restriction of Special Local Taxation Act, the “automobile registration date” on the first day of the period pursuant to the provisions of Article 157 of the Civil Act, which is applied by Article 23 of the Framework Act on Local Taxes, shall not be included in the above one-year period, and accordingly, the special exemption period of acquisition tax reduction and exemption shall be the initial date on December 8, 2015, which is not included in the registration date, and it shall be until December 7, 2016, which is calculated one year.

Article 17(1) and (2) (see current Article 17(3)) of the former Restriction of Special Local Taxation Act (Amended by Act No. 13637, Dec. 29, 2015); Article 23 of the Framework Act on Local Taxes; Article 157 of the Civil Act

Plaintiff

Head of the Daegu Metropolitan City North Korean Office

May 24, 2018

1. The plaintiff's claim is dismissed.

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

The Defendant’s disposition of imposition of acquisition tax of KRW 2,330,960 against the Plaintiff on January 11, 2017 is revoked.

1. Details of the disposition;

A. On December 7, 2015, the Plaintiff acquired and registered the instant motor vehicle with disabilities of class II (motor vehicle number omitted) (hereinafter “instant motor vehicle”), and the Defendant exempted the Plaintiff from acquisition tax of KRW 2,328,170 pursuant to Article 17 of the former Restriction of Special Local Taxation Act (Amended by Act No. 13637, Dec. 29, 2015; hereinafter the same).

B. Since then on December 7, 2016, the Plaintiff sold the foregoing vehicle to others, the Defendant rendered a disposition of additional collection of acquisition tax of KRW 2,330,960 (this tax + KRW 2,328,170 + additional tax of KRW 2,790) pursuant to Article 17(2) of the former Restriction of Special Local Taxation Act on the ground that “the ownership was transferred within one year from the registration date” against the Plaintiff on January 11, 2017 (hereinafter “instant disposition”).

C. The Plaintiff filed an objection against the objection, but was dismissed.

[Ground of recognition] Unsatisfy, entry of Gap evidence 1, purport of whole pleadings

2. Whether the instant disposition is lawful

A. The parties' assertion

1) Plaintiff

Article 17(2) of the former Restriction of Special Local Taxation Act provides that “within one year from the date of registration” with respect to the requirements for reduction or exemption of acquisition tax, and that period shall be calculated as “within one year from the date of registration” including the date of registration. In other words, the Plaintiff’s special restriction period up to December 6, 2016. Ultimately, the instant disposition is unlawful since the Plaintiff did not transfer ownership of an automobile within one year.

2) Defendant

Except as otherwise provided in special provisions, the Framework Act on Local Taxes is governed by the Civil Act, and the Civil Act provides that the first day shall not be included in the calculation of the period of special exception for “within one year.” In other words, the registration date shall not be included in the calculation of the period of special exception for “within one year.” Ultimately, as the Plaintiff transferred the ownership of an automobile within one year from the registration date, the instant disposition is lawful.

B. Determination

1) Article 17(1) of the former Restriction of Special Local Taxation Act provides, “A passenger motor vehicle, etc., the engine displacement of which is not more than 2,00 cc which is acquired by a disabled person prescribed by Presidential Decree to use for scrap or occupational activities, shall be exempted from acquisition tax and automobile tax until December 31, 2015 for the first time applying for reduction or exemption of acquisition tax or automobile tax on any of the items of automobile under Article 125(1) of the Local Tax Act,” and Article 17(2) of the same Act provides, “The exempted acquisition tax shall be collected as a penalty where the ownership is transferred within one year from the date of registration of a motor vehicle without death, marriage, emigration, cancellation of a driver’s license, or any

Meanwhile, Article 23 of the Framework Act on Local Taxes provides that "the calculation of the period prescribed by this Act or local tax-related Acts and municipal ordinances concerning local taxes shall be governed by the Civil Act except as otherwise expressly provided for in this Act or local tax-related Acts and the relevant municipal ordinances," and Article 157 of the Civil Act provides that "the first day of the period shall not be included in the calculation of the period if the period is determined by day, week, month or year; however, this shall not apply if the period begins at midnight."

2) Under the principle of no taxation without law, the interpretation of tax laws and regulations shall be interpreted as the legal text, barring special circumstances, and shall not be extensively interpreted or analogically interpreted without reasonable grounds. In particular, it accords with the principle of fair taxation with the principle of fair taxation to strictly interpret the provision that is obviously preferential in the provision on reduction and exemption (see Supreme Court Decision 2008Du11372, Aug. 20, 2009, etc.).

3) In light of the above legal principles, Article 17(2) of the former Restriction of Special Local Taxation Act provides that the instant case shall be “within one year from the registration date of an automobile” during the period of restriction on the reduction of acquisition tax under Article 17(1) of the same Act. Thus, unless there is any special provision excluding the application of the provisions of the Civil Act or other local tax-related Acts and subordinate statutes or municipal ordinances, in interpreting the said provision, the “automobile registration date” on the first day of the period pursuant to Article 157 of the Civil Act, which is applied by Article 23 of the Framework Act on Local Taxes, shall not be included in the said one-year period.

Therefore, in the case where the Plaintiff acquired and registered the instant automobile on December 7, 2015 and transferred its ownership to another person on December 7, 2016, the period of restriction on special cases of acquisition tax reduction and exemption under Article 17(2) of the same Act against the Plaintiff shall be December 8, 2015, which was not included in the registration date, and shall be up to December 7, 2016, calculated by taking the date of commencement as the date of December 8, 2015.

Ultimately, the Plaintiff should be deemed to have transferred the ownership of the instant vehicle within one year from the date of registration. Accordingly, the instant disposition to collect acquisition tax exempted under Article 17(2) of the former Restriction of Special Local Taxation Act is lawful.

3. Conclusion

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

[Attachment] Relevant Statutes: omitted

Judges Cho Jae-ho (Presiding Judge)