The legitimacy of the disposition of exclusion of the company's employees from entertainment expenses, if they viewed the entertainment expenses as entertainment expenses.

The key issue is that the expenses are entertainment expenses paid by the subcontractor for the boosting the morale of the foreign workers dispatched by the subcontractor and the smooth progress of the business. On the same premise, the defendant's disposition is legitimate.

Article 25 (Non-Inclusion of Entertainment Expenses in Deductible Expenses)

The plaintiff's appeal is dismissed.

Expenses for appeal shall be borne by the plaintiff.

The judgment of the first instance shall be revoked. The defendant's disposition of imposing corporate tax against the plaintiff on December 6, 2004 exceeds 122,99,963,260 won out of 335,450,080 won for the year 199; the part exceeding 493,037,060 won out of 783,631,280 won for the year 2000; the part exceeding 2,540,675,678,814,750 won for the year 2001; the part exceeding 1,968,814,750 won out of 452,809,750 won for the year 202; the part exceeding 72,542,160 won out of 77,684,680 won for the year 203; and the part exceeding 184,120 won out of 184,1200 won shall be revoked.

1. Quotation of judgment of the first instance;

The reasons for the court's explanation of this case are as follows: "National Tax Examination to the National Tax Tribunal" of "National Tax Tribunal of 3rd 4th 2th 6th 7th 6th 7th 6th 6th 6th 6th 6th 1th 1st 5th 1st 1st 1st 5, Gap 2 through 7th 14th 4th 6th 5th 4th 4th 6th 5th 4th 4th 4th 4th 4th 4th 4th 4th 4th 4th 4th 4th 4th 4th 4th 4th 1st 1st 5th 1st 5th 1st 6th 5th 1st 5th 1st 6th 5th 1st 6th 5th 6th 4th 96th 5th 96th 4th 196th 1st 5th 36th 4th 4th 19th 6th 4th 6th 4th 4th 7.

Article 25 (Non-Inclusion of Entertainment Expenses in Calculation of Losses)

(5) The term "entertainment expenses" in paragraphs (1) through (3) means entertainment expenses, social expenses, recompense, and other expenses of a similar nature regardless of the pretext thereof, which are disbursed by a corporation in connection with its business.

former Corporate Tax Act (amended by Act No. 6558 of Dec. 31, 2001)

Article 25 (Non-Inclusion of Entertainment Expenses in Calculation of Losses)

(5) The term "entertainment expenses" in paragraphs (1) through (4) means entertainment expenses, social expenses, recompense, and other expenses of a similar nature regardless of the pretext thereof, which are disbursed by a corporation in connection with its business.

former Corporate Tax Act (amended by Act No. 6293 of Dec. 29, 2000)

Article 25 (Non-Inclusion of Entertainment Expenses in Calculation of Losses)

(4) The term "entertainment expenses" in paragraphs (1) through (3) means entertainment expenses, social expenses, recompense, and other expenses of a similar nature regardless of the pretext thereof, which are disbursed by a corporation in connection with its business.

2. Conclusion

Therefore, the judgment of the court of first instance is legitimate, and the plaintiff's appeal is dismissed. It is so decided as per Disposition.