Requirements for calculation of transfer margin by means of a percentage method under Article 115 subparagraph 1 (a) of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 9229, Dec. 30, 1978)

In order to calculate transfer margin by the percentage method under Article 115 (1) 1 (a) of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 9229, Dec. 30, 1978), not only at the time of transfer but also at the time of acquisition, its assets are located in a specific area and the percentage is determined.

Article 115(1) of the former Enforcement Decree of the Income Tax Act (Presidential Decree No. 9229, Dec. 30, 1978)

Supreme Court Decision 83Nu579 Decided February 14, 1984 84Nu63 Decided May 29, 1984

[Judgment of the court below]

Director of the tax office

Seoul High Court Decision 85Gu479 delivered on November 18, 1985

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal are examined.

In order to calculate the transfer margin by means of the rate under Article 115 (1) 1 (a) of the former Enforcement Decree of the Income Tax Act (Presidential Decree No. 9229, Dec. 30, 1978) which was enforced at the time of the transfer of this case, the party member's view is that not only at the time of the transfer, but also at the time of the acquisition, the property should be located in the specific area and the rate should be determined (see Supreme Court Decisions 83Nu579, Feb. 14, 1984; 84Nu63, May 29, 1984). Accordingly, the court below's decision ordering the cancellation of the transfer income tax imposition disposition of this case cannot be deemed as legitimate and there is no misapprehension

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

Justices Lee Jong-soo (Presiding Justice)