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조세심판원 조세심판 | 2014-01-17 | 조심2012서3842 | 상증
[Case Number]

[Case Number] Trial Decision 2012west 3842 (Law No. 17, 2014)

[Items]

[P] No. 3] Admonishment (type of decision)

[Summary of Decision]

[Determination] With the conversion of the Commercialization into the complete comprehensive taxation, Articles 32 through 42 were converted to the exemplary provisions, and Article 42 seems to be aimed at comprehensively including the non-listed type in the subject of gift tax. Thus, it is difficult to deem that the disposition authority erred in calculating the value increase tax base by measuring the increase in the stock value of the OO (OO) before and after the donation of stocks, and calculating the changed value increase tax base pursuant to Article 42(1)3 of the Commercialization Act.

[Related Acts]

[Related Acts] Article 2 of the Inheritance Tax and Gift Tax Act

【Reference Decision】

[Reference Decision] Trial Decision 2012 middle 4732

【Disposition】

The appeal is dismissed.

【Reasoning】

1. Summary of disposition;

A. The LOOOO is a corporation that operates the OO(hereinafter referred to as the "OOO") and the representative director and the largest shareholder are the petitioners KimO, and the OOOOO is a corporation that operates the building management business and the golf-use car lending business within the OOO, the claimant KimO(s) is 88% of the issued stocks, the claimant KimO(s) KimO(s) 11% of the issued stocks, and the claimant KimO(s) KimO(s) hold 1% of the issued stocks, respectively.

B. From December 1, 2005, the KOOO has leased the new and old golf course site and warehouse in the KOOO to the KOOOOOA, and the applicant KimOO, etc. has donated the stocks issued by the KOOOO to the KOOOO as listed below.

OO

(c)the agency's results of the integrated investigation of the corporate tax of the OOO and the KOOA and the result of the investigation of the claimant's gift tax;

(1) The KOOOO has leased the site and warehouse for golf use in the KOOO to the KOOOO which the KOOOO management business had been a main company and actually distributed profits unfairly to the KOOOOO in fact by transferring the KOOOO business operation rights; and

(2) In accordance with a series of plans that intend to succeed to the management rights of the KOOOOO to the shareholders of the KOOOOO's merger resolution, it shall be deemed that the claimant's vice versa donated the stocks issued by the KOOO and actually distributed profits to the claimant by making them into the second shareholders of the OOO(the KOOOO reported and paid corporate tax for the low-price leased portion of the KOOO site).

On February 10, 2012, 2004 through 2010, OOO(8 cases), 2004 through 2010 on the aggregate of the gift tax on the gift in 2004 through 2010 on the applicant KimOO, OO(8 cases), and 10 on November 26, 2004 on the gift tax on the gift in 2004.

D. The claimant appealed and filed an appeal on April 26, 2012 on August 14, 2012.

2. Opinion of the claimant and the disposition agency;

A. The claimant's assertion

(1) The agency has imposed gift tax on the profits on which the corporation has imposed by receiving a donation of the shares issued by the OOOO in a special relationship. Since the OOOO is a general black profit-making corporation that is not a specific corporation, it is not reasonable to impose tax because Article 41 of the Inheritance Tax and Gift Tax Act (hereinafter “the Inheritance Tax and Gift Tax Act”) is difficult to apply because it is a general black profit-making corporation that is not a specific corporation, and it is improper to impose gift tax on the shareholders of the issuing corporation based on Article 2(3) of the Inheritance Tax and Gift Tax Act only on the ground that it is against the principle of no taxation without law.

In addition, corporate tax has already been imposed on the portion received as a donation by the OOO-listed fund resolution, increase in stock value is limited to unrealized profits, and it should be imposed as income tax at the time of dividend. Therefore, this case's taxation not only constitutes double taxation, but also it does not change shareholder's share, and thus a disposition imposing gift tax is unreasonable.

(2) Although the Inheritance and Gift Tax Act does not separately provide for the taxation on the tax on the increase in stock value, such as this case, and the reply made to the tax authority in 2004 cannot be imposed, the disposition of this case imposed by applying the provisions of Articles 2(3), 2(4) and 42 of the Inheritance and Gift Tax Act is unfair as it violates the principle of good faith.

(3) The claimant did not report and pay gift tax on this case by reliance on the established rules which were sent by questioning the tax authorities. Thus, the imposition of penalty tax is unfair on the ground that there is a justifiable reason not to mislead the taxpayer into neglecting his/her duty to report and pay.

(b) Opinions of disposition agencies;

(1) The claimant's assertion is contrary to the legislative intent of the complete universalism of gift tax, and as long as the value of the shares held by the claimant increases after receiving a donation of the property from an OOO-listed fund, the disposition imposed in accordance with the complete universalism concept under Article 2 (3) of the Inheritance and Gift Tax Act is justifiable.

On the other hand, whether or not gift tax is imposed on unrealized profits is a matter of tax policy determination, and it is based on the same taxpayer that no gift tax is imposed on the property on which corporate tax or income tax is imposed. Therefore, it is possible to impose both in the case where each of the requirements for taxation are satisfied, such as this case.

(2) Since the amendment of the Inheritance and Gift Tax Act on December 30, 2003 introduced the complete universalism and subsequently changed the relevant provisions on gift tax on a specific corporation in an exemplary manner, it may be taxed on the gift accrued at the time of a similar transaction without any separate provision, and this case may be taxed pursuant to Article 2 or 42, although it is difficult to apply Article 41 of the Inheritance and Gift Tax Act.

(3) Other rules of the agency may be interpreted as taxable, and it is difficult to view that there is a justifiable reason for the claimant in that the pertinent corporation predicted the possibility of internal taxation, notwithstanding the rules and regulations received by the agency.

3. Hearing and determination

A. Key issue

(1) Appropriateness of the disposition imposing the gift tax on the increase in stock values on the profits on which a corporation other than a specified corporation receives a donation of stocks from a specially related person and which the corporate tax was levied

(2) Whether a disposition imposed by interpretation different from the details of a reply to an initial question violates the principle of good faith.

(3) As a result of the reply to the disposition agency, whether there is a justifiable reason not to cause any failure to report and pay gift tax.

(b) Related Acts and subordinate statutes: see Attached Form

C. Facts and determination

(1) In full view of this case’s review data, such as a request for a trial, a disposition agency’s reply, and the integrated national tax computer network data, the following facts are revealed.

OO

(A) As indicated in the “1. Disposal outline”, the claimant KimOO et al. donated the stocks issued by the KOOOOO which were held on November 26, 2004 through February 27, 2010 to the KOOOA. Accordingly, the KOOOO was a two shareholders of the KOOOOO as listed below at the end of 2010.

(B) On November 26, 2004, the Co., Ltd. reported the stock donation from EOOOO, and the deposit donation from OOOOOO on January 12, 2005, the assets increase profit of the OOO members was reported. The details of the dividend payment to the applicants in the OOOO shall be as follows.

OO

(C) Considering that this case constitutes a donation based on the complete comprehensive taxation of gift tax under Article 2(3) of the Inheritance and Gift Tax Act, and that it is equivalent to “the profits derived from the change in ownership shares or the value of the shares due to the acquisition or transfer of a business, the change in the organization of a corporation, etc.” as an example of Article 42(1)3 of the Inheritance and Gift Tax Act, the disposition agency determined and notified this case’s gift tax by deeming that the difference in the stock value of the company prior to and after the change as the value of the shares of the applicant, namely, the increase in the stock value of the company held by the applicant, as the value of the donated shares (in the process of filing an objection, the donor of the shares issued by the KOOO in the KOO on November 26, 2004 as the OO of the EOO).

OO

(D) On November 6, 2004, according to the "Written Internet Visit Counseling Team-1786", a certified public accountant belonging to an audit team of the KOOOOOOOOOOO and designated as an audit team of the KOOOOOOOOOOOOOOOOOOO and designated under the audit team of the KOOOOOOOOOOOOOOO was not a specific corporation provided in Article 41 of the Inheritance and Gift Act, even if a person with a special relationship who is a stockholder of the relevant corporation provides property to the relevant corporation without compensation, it is possible to levy gift tax by applying the provisions of Article 42 (Donation of Other Benefits) to the shareholders of the relevant corporation, if the person with a special relationship with the shareholders of the relevant corporation without compensation, and the provisions of Article 41 (Donation of Benefits through Transactions with Specific Corporations) of the KOOOOOOOOOOOOOOO are deemed to have received profits from the shareholders of the relevant specific corporation.

(E) On the other hand, in relation to the internal resolution resolution documents of the OOO dispute resolution committee, in relation to the above questions and answers, if a corporation receives property free of charge from a specially related person (including a corporation) or makes a share of profit through transactions with a specially related person (including a specially related person corporation), and the stock value increase due to the increase in the profit of the corporation concerned, the shareholder (OOO dispute resolution company) has a problem falling under the gift tax due to comprehensive donation under the Inheritance and Gift Act, which was donated in 2004, and there is a problem of taxation of gift tax at the time of OO's possession, OO's cash donation, OO's cash donation, and shares donation, etc. of the National OO president in the future, which were donated to the large company in 204, are expected to be a problem of taxation of gift tax at the time of OO's tax adviser, OOO's accountant, OOOO, and OO's stocks donation, etc.

(2) In full view of the above facts and relevant laws and regulations, this case’s taxation is examined.

(A) First, the claimant asserts that the instant transaction does not fall under Article 42(1)3 of the Inheritance and Gift Tax Act, and that the instant taxation disposition does not have any legal basis; however, the claimant asserts that there is no legal basis;

(4) The case that: (a) it is difficult to establish a comprehensive taxation principle so that no more than 2O's shares can be taxed because the amendment of the Inheritance Tax and Gift Tax Act provides for the following matters: (b) it is possible to newly establish the concept of donation subject to gift tax if the shares are de facto transferred without consideration even though the types of tax are not listed in the Act; (c) it is difficult to establish an example provision on the calculation of donated property by supplementing the previous regulations on deemed donation; and (d) it is difficult to view that there is an increase in the value of non-listed shares to be subject to gift tax for the purpose of calculating gift tax (see Articles 32 through 42) because Article 2 (3) of the Inheritance Tax and Gift Tax Act can not be the sole ground for taxation; (d) it is difficult to view that there is an increase in the value of shares issued by the 3O's comprehensive taxation method to be converted into that of non-listed shares issued by the 2O's comprehensive taxation method for the purpose of taxation without consideration of the purpose of taxation purpose of the 2O's's comprehensive taxation method.

(B) Next, even after the introduction of the complete comprehensive taxation, the requesting corporation has expressed its view that Article 41 or 42 of the Inheritance and Gift Tax Act cannot be applied to a black-owned corporation which is not a specific corporation, and accordingly, the applicant respondeded to the same purport with respect to the matters asked by the applicant, but without special reasons, the applicant made a tax disposition by changing its name to be taxable from May 29, 2007, which is contrary to the principle of good faith.

The public statement of opinion that is the object of taxpayer's trust should be consistently and repeatedly accepted by the tax authority which is required to apply the principle of good faith to the taxpayer. The above principle does not apply to the case where the tax authority's expression of opinion is merely a general theoretical opinion statement (see Supreme Court Decision 2007Du19454, Apr. 29, 2010; 2007Du19454, Apr. 29, 201); the provisions and contents of tax-related Acts and subordinate statutes and administrative regulations themselves do not constitute a public opinion expression by the tax authorities (see Supreme Court Decision 2001Du403, Sept. 5, 2003; 2001Du403, Nov. 6, 2004). The response to the claimant (Internet visiting 4-1786, 2004) was made once as part of the general consultation duty of the tax authorities on whether to impose gift tax, and it is difficult to view that the above general opinion statement of opinion is still an applicant's in violation of taxation.

(C) Lastly, the claimant believed the response of the disposition agency, and therefore, the claimant asserts that there is a justifiable reason that is not attributable to the failure to report and pay gift tax, but there is a justifiable reason that is not attributable to

As seen earlier, in light of the fact that the complete comprehensive taxation of gift tax was introduced by the amendment of the Inheritance and Gift Tax Act on December 30, 2003, and it is reasonable to see that the entire comprehensive taxation of gift tax was subject to the gift tax, and that the claimant himself/herself seems to have sufficiently recognized such fact, it is difficult to accept the claim purporting that the pertinent disposition of gift tax constitutes a case where there is a justifiable reason that does not lead to the failure of the taxpayer to perform his/her duty, such as where the interpretation of the tax law provisions is unclear and it is not unreasonable for the taxpayer to be unaware of his/her duty, or where it is unreasonable to expect the party to perform his/her duty, etc. (see, e.g., Supreme Court Decision 2012Du4732, Oct. 17, 2013; Supreme Court Decision 2013Du1488, Oct. 2

4. Conclusion

This case shall be decided as ordered in accordance with Articles 81 and 65 (1) 2 of the Framework Act on National Taxes because the petition for a trial has no merit as a result of the review.

annex. Relevant statutes

(1) Inheritance Tax and Gift Tax Act;

Article 2 (Gift Gift Tax Taxables) (1) Where any donated property falls under any of the following as of the date of donation due to a donation by another person (excluding donation becoming effective due to the death of a donor; hereinafter the same shall apply), in respect of such donated property, gift tax shall be levied in accordance with this Act:

(2) Where income tax under the Income Tax Act, corporate tax under the Corporate Tax Act and agricultural income tax under the Local Tax Act are levied on the donee with respect to donated property under the provisions of paragraph (1), gift tax shall not be levied. In such cases, the same shall also apply where income tax, corporate tax and agricultural income tax are exempted or reduced under the Income Tax Act, the Corporate Tax Act, the Local Tax Act or other Acts.

(3) The term "donation" in this Act means a free transfer (including the case of transferring at a remarkably low price) of any tangible or intangible property, the economic value of which can be calculated, directly or indirectly, to another person, notwithstanding the name, form, purpose, etc. of the relevant act or transaction, or an increase in the property value of another person by the contribution.

(4) Where it is deemed that the inheritance tax or gift tax has been unjustly reduced by indirect means via a third party, or by means of two or more acts or transactions, the provisions of paragraph (3) shall apply by deeming that such transactions have been made directly by the parties concerned, or such acts or transactions have been continued as one act or transaction.

Article 31(1) The scope of donated property pursuant to the provisions of Article 2 includes all articles having economic value that can be realized in money and all de facto or de facto rights having property value.

Article 41 (Donation of Profits through Transactions with Specialized Corporation) Where a person who has a special relationship with a stockholder or investor of a corporation (hereinafter in this Article “specific corporation”) under the suspension or closure of business, obtains profits from the stockholder or investor of the specified corporation through transactions falling under any of the following subparagraphs, the amount equivalent to such profits shall be deemed the value of donated property of the stockholder or investor of the specified corporation:

1. Transactions in which property or services are provided without compensation;

2. Transactions in which property or services are transferred or provided for significantly low prices in the light of the common practices of transactions;

3. Transactions in which property or services are transferred or provided for significantly high prices in the light of the common practices of transactions;

4. Other transactions similar to subparagraphs 1 through 3 and prescribed by the Presidential Decree.

(2) With respect to the calculation of profits earned by a specific corporation, a person in a special relationship, a stockholder or an investor of a specific corporation, a significantly low price, and the scope of a remarkably high price, the provisions of the Presidential Decree shall apply.

(1) In addition to the donation under Articles 33 through 41, 41-3 through 41-5, 44 and 45, in case where the benefits falling under any of the following subparagraphs are acquired above the standards as prescribed by the Presidential Decree, such benefits shall be deemed the value of donated property of the person who has acquired such benefits:

1. Profits acquired by paying from others a price lower than the market price (referring to the price assessed under the provisions of Chapter IV; hereinafter the same shall apply) or by using property (excluding real estate and money; hereinafter the same shall apply in paragraph (2)) not less than 100 million won at a price higher than the market price. In this case, the relevant profits shall be the difference between the market price and the actual paid price;

2. Profits accruing from providing services (limited to those of which ordinary payments are not less than 10 million won among many and unspecified persons; hereafter the same shall apply in this subparagraph and paragraph (2)) by paying from others without compensation or a price lower than the market price, or from providing other persons with services at a price higher than the market price. In this case, the relevant benefits shall be the difference between the market price and the actual paid or paid;

3. Profits acquired as a result of an increase or decrease in the capital (including investment amount) of a corporation, such as investment, reduction of capital, merger (including division and merger; hereafter the same shall apply in this Article), division, conversion, acquisition, exchange of stocks by convertible bonds, etc. under Article 40 (1) (hereafter referred to as "stock conversion, etc." in this Article), or profits acquired as a result of an increase or decrease in the transfer, takeover, business exchange, business exchange, restructuring, etc. of a corporation. In such cases, the relevant profits shall be the value obtained by subtracting the value of stock conversion, etc. from the value of stocks as at the time of stock conversion, etc. in cases of stock conversion, etc., and in cases other than stock conversion,

(2) In applying the provisions of paragraph (1) 1 and 2, if the period of use of property and that of provision of services has not been determined, such period shall be one year, and if the said period is not less than one year, it shall be deemed that new property or of provision of services have been used every year on the day following the date on which

(3) In the application of the provisions of paragraph (1), where it is deemed that there is a justifiable reason as a practice of transaction, the provisions shall not apply between persons other than those in special

(4) Where a person prescribed by Presidential Decree, such as a minor, has acquired any property due to the reason prescribed by Presidential Decree, such as execution of development projects, change of form and quality, partition of co-owned property, business authorization and permission, listing and merger of stocks and investment shares, etc. (hereafter in this Article, referred to as " reason for increase of property value"), and has acquired any profit above the standard prescribed by Presidential Decree, such profit shall be deemed the value of property donated to the person who has acquired such

1. Where property is donated to a third person;

2. Where an internal information has not been published concerning the management, etc. of an enterprise and the property related to the relevant information has been acquired commercially by being provided with such inside information;

3. Where the property is acquired with money borrowed from a person in a special relationship or with the money borrowed as a security of another person.

(5) The profits pursuant to the provisions of paragraph (4) shall be calculated, as prescribed by the Presidential Decree, taking into consideration the relevant property value, acquisition value (referring to the taxable value of donated property in case of donated property), ordinary value increase, the increase in the value of the acquisitor, the increase in the increase in the value of the property, etc. as of the date on which the cause for the increase in the value of the property occurs. In this case, if the relevant property is transferred before

(6) In applying the provisions of paragraph (4), where it is deemed that the inheritance tax or gift tax has been reduced by falsity or other illegal means, such provisions shall apply to the donation between persons other than those in a special relationship. In such cases, the provisions concerning the period fixed in paragraph (4) shall be deemed nonexistent.

(7) In the application of the provisions of paragraphs (1), (3), (4) and (6), matters necessary for the scope of assets whose value is not less than 100 million won, the scope of related persons, the methods for calculating the difference in the appraisal of the relevant assets before and after the change in the ownership shares or the value thereof, and the value of stocks at the

(2) Enforcement Decree of Inheritance Tax and Gift Tax Act

(1) For the purpose of Article 42 of the Act, the term “person in a special relationship” means a person prescribed by the classification falling under any of the following subparagraphs:

1. Persons having a special relationship under the provisions of Article 42 (3) and (4) 3 of the Act: Persons having a relationship under any subparagraph of Article 19 (2). In such cases, "one stockholder, etc." in Article 19 (2) shall be deemed "person who has acquired a profit";

2. A person in a special relationship under Article 42 (4) 2 of the Act: A person in a relationship under any subparagraph of Article 19 (2) with the largest shareholder under Article 41-3 (1) of the Act. In such cases, "one stockholder, etc." in Article 19 (2) shall be deemed "a person who has acquired profits".

3. Persons having special relations under the provisions of Article 42 (6) of the Act: Persons under the provisions of subparagraphs 1 and 2.

(2) The term “interest above the standard prescribed by the Presidential Decree” in other portion than each subparagraph of Article 42 (1) of the Act means the profit calculated according to the following classification:

1. In the case of free use of property or provision of services, etc. without compensation, in the provisions of Article 42 (1) 1 and 2 of the Act: The entire amount equivalent to the market price paid or to be paid according to the free use of property, provision of services, etc. or free

2. Where property is used at a low price or services are provided at a low price among the provisions of Article 42 (1) 1 and 2 of the Act: An amount equivalent to the relevant difference where the difference between the market price and the price is at least 30/100 of the market price;

3. Where property is used at an elevated level or services are provided at an elevated level under Article 42 (1) 1 and 2 of the Act: An amount equivalent to the relevant difference where the difference between the price and the market price is at least 30/100 of the market price;

4. In case of stock conversion, etc. in Article 42 (1) 3 of the Act: Relevant amount in case where the amount obtained by deducting the value of stock conversion, etc. from the value of stocks (referring to the value computed under Article 30 (4) 1 and 2) at the time of stock conversion, etc. is not less than 100

5. Other cases not falling under subparagraph 4 among the provisions of Article 42 (1) 3 of the Act: If the difference in the appraisal of the relevant property is 30/100 or more of the value of the relevant property before or after the change in ownership shares or the value thereof, or if the amount is not less than 300 million won, the difference in the appraisal concerned shall be calculated pursuant to the provisions of each of the following items:

(a) Where the equity shares are changed: (referring to the amount computed by applying mutatis mutandis the provisions of Articles 28 through 29-3) 】 (referring to the amount computed by applying mutatis mutandis the provisions of Articles 28 through 29-3) 】

(b) Where the appraised value is changed: Value before or after a change £­ Value after a change.

(3) "Property exceeding 100 million won" in the former part of Article 42 (1) 1 of the Act means the relevant property in cases where the value assessed under the provisions of Chapter IV of the Act exceeds 100 million won.

(4) The term "persons prescribed by Presidential Decree" in the main body of Article 42 (4) of the Act means persons deemed unable to perform the relevant act on their own account in view of their occupation, age, income, and property status.

(5) "Grounds prescribed by Presidential Decree" in the part other than subparagraphs of Article 42 (4) of the Act means registration of the Korea Securities Dealers Association in cases of unlisted stocks, and authorization, permission, etc. in cases of life insurance or non-listed stocks, and rights to develop and utilize groundwater, etc.

(6) For the purpose of the part other than each subparagraph of Article 42 (4) of the Act, the term “interest higher than the standard prescribed by the Presidential Decree” means the relevant property value increase in case where the amount calculated in accordance with the provisions of the part other than each subparagraph of paragraph (7) (hereafter in this paragraph, referred to as the “property value increase”) is not less than 300 million won or the said property value increase is not less than 30/100 of the

(7) "Amount calculated as prescribed by Presidential Decree" in the former part of Article 42 (5) of the Act means the amount calculated by subtracting the value of subparagraphs 2 through 4 from the value of each of the following subparagraphs:

1. Value of the concerned property: Value as of the date a cause of increase in property value occurs (referring to the value assessed in accordance with the provisions of Chapter IV of the Act);

2. Acquisition value of the relevant property: The amount paid for the actual acquisition (in cases of donated property, referring to the taxable amount of gift taxes).

3. Ordinary increase in normal values: The amount deemed to be reasonable for the increase in normal values during the retention period of the relevant property in consideration of the benefits accruing from substantial increase in corporate values under Article 31-6 (5), annual average land price inflation rate, annual average housing price inflation rate, national consumer price inflation rate, etc

4. Increase in value: Expenses paid to increase the relevant property value, such as the amount of capital expenditure following the execution of development projects, change of form and quality, and authorization, permission, etc. of projects;

(8) In applying the provisions of paragraph (2), the market price of services shall be determined by normal payments between many and unspecified persons in similar circumstances to the relevant trade: Provided, That where the market price is unclear, it shall be the amount calculated under any of the

1. In cases of real estate lease services: The rate as determined by the Ordinance of the Ministry of Finance and Economy taking into account the real estate price (referring to the price assessed under Chapter IV of the Act) ¡¿ the rental fee

2. Cases other than real estate lease services: An amount calculated pursuant to Article 89 (4) 2 of the Enforcement Decree of the Corporate Tax Act.

(1) The value assessed by the following formula (hereinafter referred to as “net profit and loss value”) and the net asset value per share of the stocks and equity shares (hereinafter referred to as “non-listed shares” in this Article and Article 56-2) not listed on the Korea Securities and Futures Exchange under Article 63(1)1 (c) of the Act shall be based on the weighted average value per share of 3 and 2 in proportion to 3 and 3:

The value per share = The weighted average amount of net profits and losses for the latest three years per share ± the rate determined and publicly announced by the Commissioner of the National Tax Service in consideration of the yield of distribution of corporate bonds with three-year maturity guaranteed by financial institutions (hereinafter referred to as the "net profit and loss exchange rate").

(2) The net asset value per share under paragraph (1) shall be the value appraised by the following formula:

The value per share = the net asset value of the relevant corporation ¡Àthe net asset value of the relevant corporation (hereinafter referred to as the “net asset value”).

(3) Enforcement Decree of the Income Tax Act

Article 163 (Necessary Expenses for Exemplary Assets) The main sentence of Article 97 (1) 1 (a) of the Act shall apply in accordance with the following subparagraphs:

1. Where gift tax has been imposed pursuant to Articles 33 through 42 of the Inheritance Tax and Gift Tax Act, the value of donated property concerned or the increase or decrease thereof shall be added to or subtracted from the acquisition value;

(4) Framework Act on National Taxes

Article 15 (Taxpayer and Fidelity) When a taxpayer performs his/her duties, he/she shall perform his/her duties in good faith and sincerity. The same shall apply where a tax official performs his/her duties.

Article 18 (Standards for Interpretation of Tax-Related Acts, Prohibition of Retroactive Taxation) (1) In interpreting and applying tax-related Acts, property rights of taxpayers shall not be unreasonably infringed in light of the equity in taxation and purpose of the pertinent provisions.

(2) With respect to any income, profit, property, act or transaction formed with an obligation to pay national taxes (in cases of national taxes separately provided for by tax-related Acts, an obligation to collect and pay such taxes; hereinafter the same shall apply), a new tax-related Act shall not be levied retroactively after the incorporation thereof.

(3) Once any construction of the tax-related Act or practices in tax administration is accepted generally by the taxpayers, any act or computation according to such a construction or practice shall be considered to be correct, and no tax shall be imposed retroactively by a new construction or practice.

(1) Where a taxpayer fails to file a tax base return pursuant to the tax-related Acts within the statutory due date of return, the amount of tax calculated pursuant to the tax-related Acts (including corporate tax on capital gains, such as land under Article 55-2 of the Corporate Tax Act in cases of corporate tax, and the amount to be added pursuant to Article 27 or 57 of the Inheritance Tax and Gift Tax Act in cases of inheritance tax and gift tax, respectively, and the amount of tax payable pursuant to Articles 17 and 26 (2) of the Value-Added Tax Act in cases of value-added tax; hereafter referred to as "calculated tax amount" in this Section) shall be added to the payable tax amount or deducted from the refundable tax amount (hereafter referred to as "additional tax amount subject to general non-reported" in this paragraph).

(1) Where a taxpayer fails to pay national taxes within the deadline for payment under tax-related Acts or the paid tax amount falls short of the payable tax amount, the amount calculated by applying the following formula shall be added to the payable tax amount or the refundable tax amount shall be deducted from the payable tax amount.

Amount of unpaid or underpaid tax 】 Period from the day following the due date to the due date of payment or the date of duty payment 】 Interest rate prescribed by Presidential Decree in consideration of the interest rates applied by financial institutions to overdue loans

Article 48 (Reduction, Exemption, etc. of Additional Taxes) (1) Where an additional tax is imposed under this Act or any other tax-related Act, if the grounds for such imposition fall under the grounds for extending the due date under Article 6 (1) or the taxpayer has justifiable grounds for non-performance of obligation, the relevant additional tax shall not be imposed.

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