If income can be calculated on the basis of other evidentiary documents even though the account book was not kept, the intention to determine the tax base and tax amount of income tax by the method of estimated investigation (negative)

Even if a book prescribed by the Income Tax Act is not kept, if income which serves as the tax base can be calculated based on other evidential documents such as a contract, the tax base and tax amount shall not be determined by the on-site investigation method or by the estimation investigation method.

Articles 118 and 120 of the Income Tax Act

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

Right to Information

Head of the Daegu Tax Office

Daegu High Court Decision 89Gu573 delivered on May 9, 1990

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

Even if the books under the Income Tax Act were not kept, if the income which serves as the tax base can be calculated based on other documentary evidence such as the contract, the tax base and tax amount shall not be determined by the on-site investigation method or by the method of the estimation investigation (see, e.g., Supreme Court Decision 80Nu433, Nov. 25, 1980). Thus, the court below acknowledged the fact that even if the plaintiff did not keep the books under Article 184 of the Income Tax Act, even if the plaintiff did not keep the books, it was possible to calculate the income that served as the tax base of this case by the method of the estimation investigation, not by the method of the on-site investigation, the decision that the defendant decided the tax base and tax amount of the plaintiff's real estate income of this case as to the whole apartment of this case without using the method of the on-site investigation, and there is no error of law

Even if the cash receipt and disbursement book was prepared retroactively and its contents are somewhat inconsistent with the facts, the above judgment cannot be different as long as the plaintiff can calculate the income of this case by the above documentary evidence. The argument is groundless.

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.