Where a real estate was transferred for security but a debt repayment has been made at the debtor's request and the procedure for the transfer of ownership has been completed, a disposition imposing capital gains tax (negative)

If the Plaintiff completed the registration of transfer of ownership from the obligor as the purport of transfer of security for a claim for real estate, but received a repayment of obligation, and completed the procedure for the registration of transfer of ownership from the obligor at the obligor’s request, the disposition imposing capital gains tax on the Plaintiff is unlawful.

Article 23 (1) of the Income Tax Act, Article 45 (1) of the Enforcement Decree of the Income Tax Act

[Plaintiff-Appellant-Appellee] Plaintiff 1 and 1 other (Law Firm Gyeong, Attorneys Park Jae-soo et al., Counsel for plaintiff-appellant-appellant-appellee)

Attorney Choi Sung-sung et al., Counsel for the defendant-appellant

Head of the tax office of the Ulsan District Tax Office (the head of the Ulsan District Tax Office before change)

Busan High Court Decision 89Gu1827 delivered on July 27, 1990

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

According to the reasoning of the judgment below, the court below held that the plaintiff's transfer of the ownership of the real estate of this case from the non-party purification pipe as the transfer of the security for the claim of this case, but the debt was paid, and if it was confirmed after the non-party's purchase of the real estate of this case was completed at the request of the above non-party, there is no capital gains from the plaintiff. However, the defendant's disposition of this case was unlawful. In light of the records, the judgment of the court below is just and there is no error of law

Therefore, the appeal is dismissed and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Song Man-man (Presiding Justice)