In case of a transaction with a corporation, etc., if documents confirming the actual transaction price at the time of transfer or acquisition are submitted only in the administrative litigation procedure, whether the gains on transfer based on the actual transaction price is calculated (affirmative)

In the case of Article 170 (4) 1 of the Enforcement Decree of the Income Tax Act (amended by the Presidential Decree No. 10977 of Dec. 31, 1982), in other words, where it is confirmed that the actual transaction price at the time of transfer or acquisition in transactions with the State, local government or other corporations, unlike the case of subparagraph 3, even if the transferor did not submit the evidential documents pursuant to Article 95 or 100 of the Income Tax Act which can confirm the actual transaction price at the time of transfer or acquisition, it can be calculated based on the actual transaction price unless the transferor submitted the documents that can confirm the actual transaction price

Articles 23(4) and 45(1)1 of the Income Tax Act (amended by Act No. 3576 of Dec. 31, 1982); Article 170(4)1 of the Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 10977 of Dec. 31, 1982)

Maaptables

Head of the tax office

Supreme Court Decision 87Nu767 Decided April 11, 1989

Seoul High Court Decision 89Gu4866 delivered on August 23, 1989

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 Articles 23(4) and 45(1)1 of the Income Tax Act (amended by Act No. 3576 of Dec. 21, 1982), which was enforced at the time of the transfer of this case, the transfer value and acquisition value, which form the basis for calculating gains on transfer of assets, shall, in principle, be based on the standard market price at the time of transfer or acquisition of transferred assets, only on such cases as determined by the Presidential Decree. Article 170(4) of the Enforcement Decree of the same Act (amended by the Presidential Decree No. 10977 of Dec. 31, 1982) of the same Act (amended by the Presidential Decree No. 10977 of Dec. 31, 1982) provides subparagraphs 1 through 3 where gains on transfer can be calculated based on the actual transaction price.

The judgment of the court below to the same purport is just and there is no error in the misapprehension of legal principles as to the substance over form principle.

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 Kim Sang-won (Presiding Justice) Lee Chang-won