A. Whether a domestic branch of a foreign corporation has the capacity to sue (negative);

B. Whether matters concerning the capacity of parties to a lawsuit are subject to ex officio investigation in administrative litigation (affirmative)

A. Article 1(2)4 of the Income Tax Act provides that no corporate branch is a domestic branch of a foreign corporation and a domestic branch of a foreign corporation or a domestic business office (including a branch office or other similar branch office) is liable to pay withholding income tax under the Income Tax Act. However, this provision is merely a provision that the foreign corporation is liable to withhold and pay income tax if it pays income or income amount to be withheld at the domestic branch of the foreign corporation, and it cannot be deemed a provision that grants legal personality to the domestic branch of the foreign corporation. Thus, the foreign corporation’s domestic branch does

(b) Matters concerning the existence of a party capacity under Article 47 of the Civil Procedure Act applied mutatis mutandis by Article 14 of the Administrative Litigation Act are matters to be ex officio.

Article 48 of the Civil Procedure Act, Article 1(2)4 of the Income Tax Act, Article 47 of the Civil Procedure Act

Scort Human Scort Scort, Attorney Suh-ro, Counsel for the plaintiff-appellant, Counsel for the plaintiff-appellant-appellant

Head of Maritime Affairs Office

Daegu High Court Decision 79Gu142 delivered on September 9, 1980

The judgment below is reversed, and the case is remanded to the Daegu High Court.

Judgment ex officio is made.

The judgment of the court below stated the plaintiff in the indication column of the parties "Sllve Human Human Slve Human Slves-Nt Inc. Korean branch" and stated "the plaintiff is a Korean branch of the non-party Slve Human Slve Human Slves Human Slves Slves (Slves Investment Co., Ltd.) which is a non-party corporation with an address of 8451 U.S. California, California, Ireland, U.S., and carries out various projects such as investment in real estate projects, etc." in the second sentence of the judgment of the court below. Accordingly, the court below seems to be premised on the ability of the party as the plaintiff separately.

However, according to a copy of the register (record 78) compiled in the records, the defendant's taxation disposition in this case is established on the ground that a foreign corporation whose head office is in the United States of America and whose head office is in the Republic of Korea and whose representative is appointed in accordance with Article 614 of the Commercial Act to operate a business in the Republic of Korea and which completed the registration of its branch office. On the other hand, according to the records, a foreign corporation with domestic source income under Article 1 (3) of the Corporate Tax Act, which is a foreign corporation with a domestic branch under Article 56 (1) 1 of the Corporate Tax Act, is a foreign corporation with a domestic branch under Article 56 (1) 1 of the Corporate Tax Act, and a foreign corporation with a domestic branch under its domestic branch, paid Class A earned income to withhold

On the other hand, since the branch of a legal entity is without a legal personality, the other party to the instant taxation is only a foreign legal entity that is “slut Human Slut Slut” and the taxation is merely limited to the income tax that is paid at the domestic source of the foreign legal entity and at the domestic branch of the foreign legal entity. Article 1(2)4 of the Income Tax Act provides that Article 1(4) of the Income Tax Act provides that a domestic branch of a foreign legal entity or a domestic branch of the foreign legal entity (including a branch office and any other similar branch office) shall be liable to pay withheld income tax under the Income Tax Act. However, this is merely a provision that the foreign legal entity that grants the foreign legal entity to the domestic branch of the foreign legal entity.

Therefore, the domestic branch of a foreign corporation has no capacity to be a party in the lawsuit. Therefore, the court below should have judged the plaintiff's "slut Slut Slut Slut" or his "Korean branch" after the date on which the party was confirmed. However, the court below erred by misapprehending the legal principles on the party's ability under Article 47 of the Civil Procedure Act applied mutatis mutandis by Article 14 of the Administrative Litigation Act, and such illegality is a matter to be investigated ex officio. Thus, the court below's decision which does not require the decision on the grounds of appeal cannot be reversed.

Therefore, the judgment of the court below is reversed and the case is remanded to the Daegu High Court which is the court below for a new trial and determination. It is so decided as per Disposition by the assent of all participating Justices.

Justices Lee Chang-chul (Presiding Justice)