Where a facility leasing company lends a ship to a lessee and uses it only for permitted distant water fisheries, whether the facility leasing company is subject to the reduction of acquisition tax.

If a facility leasing company lends a ship to a lessee and uses it only for permitted distant water fisheries, 50/100 of the acquisition tax amount calculated in accordance with Article 110-4(2)2 of the former Local Tax Act (amended by Act No. 4269 of Dec. 31, 190) should be reduced for vessels acquired or imported by the facility leasing company.

Article 110-4 (2) 2 of the former Local Tax Act (amended by Act No. 4269 of Dec. 31, 1990), Article 79-15 of the former Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 14481 of Dec. 31, 1994), Article 23 of the former Fisheries Act (amended by Act No. 4252 of Aug. 1, 1990), Article 41 (1) of the current Act), Article 13 of the Equipment Rental Business Act

Korea Development Lease Co., Ltd., Counsel for the defendant-appellant and five others

The head of Jung-gu Busan Metropolitan Government

Busan High Court Decision 93Gu7396 delivered on May 12, 1994

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal by the defendant litigant are examined.

According to the reasoning of the judgment below, the court below held that Article 110-4 (2) 2 of the Local Tax Act (amended by Act No. 4269 of Dec. 31, 190, deleted by Act No. 4794 of Dec. 22, 1994) provides that acquisition tax shall be reduced by 50/100 when a ship is constructed or imported to be placed only on a foreign port, and that acquisition tax shall be reduced by 10/100 when a ship is purchased to be placed on a foreign port from Article 79-15 of the Enforcement Decree of the same Act ( deleted by Presidential Decree No. 14481 of Dec. 30, 1994) to be placed on a ship to be placed on a foreign port, and that acquisition tax shall be reduced by 23 of the Fisheries Act (wholly amended by Act No. 4252 of Aug. 1, 190), if the plaintiff satisfies the requirements of Article 41 (1) of the current Fisheries Act to obtain permission for the above facilities leasing or lease.

The judgment of the court below is just, and there is no error in the misapprehension of legal principles as to the grounds for reduction of acquisition tax under the Local Tax Act and the Enforcement Decree of the same Act, and it is clear that the court below determined that acquisition tax on the above vessel by the plaintiff should be reduced on the basis of Article 110-4 (2) 2 of the Local Tax Act. The statement by the court below in Article 13 of the above Equipment Rental Business Act is merely a statement of the grounds that the plaintiff, who is the facility leasing company, is considered to have obtained a deep-sea fishery license in accordance with the requirements for reduction of acquisition tax. Thus, the court below's determination that the court below recognized a tax reduction

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

Justices Chocheon-sung (Presiding Justice)