1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

Purport of claim and appeal

The first instance court.

1. Details of the disposition;

A. On February 14, 2007, the Plaintiff completed the registration of ownership transfer based on donation with respect to the farmland of 1,655 square meters (hereinafter “instant farmland”). On June 29, 201, the Plaintiff completed the registration of ownership transfer based on land expropriation in the future of the Republic of Korea with respect to the instant farmland.

B. On May 25, 2012, the Plaintiff purchased one-half of the 2,803 square meters (hereinafter “the instant substitute farmland”) of the land in this case as the substitute farmland of the instant farmland, and completed the registration of ownership transfer with respect to the said share on June 12, 2012.

C. The Plaintiff: (a) on August 31, 2011, the transfer value of the farmland in this case (i.e., the transfer value of KRW 501,29,500 - Acquisition value of KRW 101,286,00) was reduced or exempted from capital gains tax on the farmland substitute land under Article 70 of the former Restriction of Special Taxation Act (amended by Act No. 111133, Dec. 31, 201; hereinafter the same shall apply); and (b) on the premise that the Plaintiff falls under the special deduction for long-term holding under Article 95(2) of the former Income Tax Act (amended by Act No. 10580, Apr. 12, 2011; hereinafter the same shall apply), on the premise that the Plaintiff is subject to the special deduction for long-term holding under Article 95(2) of the former Income Tax Act, calculated by applying the special deduction for long-term holding from gains on transfer to KRW 107,429,150,000,00.

However, the Defendant, on October 5, 2012, notified the Plaintiff of the correction and notification of the capital gains tax of KRW 87,959,424 (including additional tax of KRW 9,445,255, including already paid tax of KRW 7,429,158), special rural development tax of KRW 4,814,115 (including additional tax of KRW 516,949) for farmland substitute land under the former Restriction of Special Taxation Act, on the ground that “the Plaintiff cannot be deemed to have directly cultivated the instant farmland.”

(hereinafter “instant disposition”) e.

On January 15, 2013, the Plaintiff filed a request for review with the Board of Audit and Inspection on January 15, 2013, but was dismissed on October 31, 2013.