In case where a notice of change in income tax on recognized contributions has been served after the decision to commence the reorganization proceedings of the company, and public interest claims;

The requirements for taxation of source tax on recognized contributions disposed of under the Corporate Tax Act are generated only when the notice of income change is served on the relevant corporation, so if such notice of income change is served after the commencement of the company reorganization procedure, it is a public-interest claim under Article 119 of the Company Reorganization Act.

Article 102 of the Company Reorganization Act, Article 119 of the Company Reorganization Act, Article 142 of the Income Tax Act, Article 143 of the Income Tax Act, Article 150 of the Income Tax Act

[Defendant-Appellee] Plaintiff 1 et al., Counsel for defendant-appellee

Head of Southern District Tax Office

Seoul High Court Decision 79Gu439 delivered on March 4, 1980

The appeal is dismissed.

The costs of appeal shall be borne by the plaintiff.

The Plaintiff’s attorney’s ground of appeal is examined.

According to the reasoning of the judgment below, Article 102 of the Company Reorganization Act provides that a claim on property arising from a cause before the commencement of the company reorganization procedure shall be reorganization claim. Therefore, tax claims shall also be reorganization claim if the above conditions are met. However, Article 119 of the same Act provides that a tax withheld among liquidation claims may be claim on public interest claims for which the time limit for payment has yet to expire or has not yet arrived at the time of commencement of the reorganization procedure. According to Articles 142, 143, and 150 of the Income Tax Act and Article 198 of the Enforcement Decree of the same Act, a person liable for withholding tax on Class A labor income shall pay the income tax collected at source by the 10th day of the month following the month in which the collection date belongs, and the head of the tax office shall notify the relevant corporation of the change in the income amount under the Corporate Tax Act within 15 days after the date of determination of the corporate income amount. The purport of the above provisions is that a tax withholding claim for the company concerned cannot be seen as being paid at the time of taxation claim 97 years prior to the commencement date.

Therefore, the appeal is dismissed. The costs of appeal are assessed against the plaintiff who has lost, and it is so decided as per Disposition by the assent of all participating judges.

Justices Jeong Tae-won (Presiding Justice)