The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. As to ground of appeal No. 8

A. Article 24(2) of the former National Tax Collection Act (amended by Act No. 10527, Apr. 4, 2011) provides that where the head of a tax office recognizes that a taxpayer cannot collect national taxes after the determination of national taxes due to the grounds for collection prior to the payment period, he/she may seize the taxpayer’s property to the extent of the estimated amount of national taxes to be determined.

If the whole or part of the national taxes to be collected by the preservation seizure was not determined after the preservation of national taxes were made final and conclusive before the preservation of national taxes was conducted, it shall be presumed that the public officials of the tax authorities were intentional or negligent for the damage suffered by the taxpayer due to the preservation seizure, unless there is any special proof. Therefore, the State is liable to compensate for the damage caused by unfair preservation seizure

This legal principle applies likewise to cases where a national tax was determined by a tax assessment after the preservation was seized, but the said tax assessment was revoked, and the whole or part of the national tax was not determined.

B. Review of the reasoning and records of the lower judgment and the first instance judgment cited by the lower court reveals the following facts.

(1) On May 7, 2002, the Plaintiff and C entered into a first exchange contract with B real estate and D stores, etc., and the Plaintiff and H entered into a second exchange contract with D stores on October 26, 2004 for exchanging D stores and Daejeon Hosts, etc.

(2) On November 15, 2007, the tax authorities to which the Defendant belongs made the instant seizure against the Daejeon Hostel, etc. owned by the Plaintiff. On November 22, 2007, the attachment notice stating that the amount of delinquent local taxes related to the attachment on November 22, 2007 falls under KRW 945,726,592 under the first exchange contract and KRW 81,526,855 of the transfer income tax for the year 2004 according to the second exchange contract.