For acquisition in annual installments: Tax base of acquisition tax;

Where annual installments are paid in installments for the acquisition of annual installments, the tax base of acquisition tax shall be the amount of annual installments.

Article 111(1) of the Local Tax Act; Article 73(5) of the former Enforcement Decree of the Local Tax Act

Samyang Water & Industrial Company

Attorney Park Jae-gu, Seoul Metropolitan Government;

Seoul High Court Decision 76Gu259 delivered on June 14, 1977

The plaintiff's appeal is dismissed.

The costs of appeal arising from the plaintiff's appeal shall be borne by the plaintiff.

The part of the judgment below against the defendant is reversed, and that part of the case is remanded to the Seoul High Court.

First, we examine the Plaintiff’s ground of appeal.

According to the reasoning of the judgment below, pursuant to the Presidential Emergency Decree No. 3 and Article 11 (1) of the Local Tax Act, the acquisition tax rate under the Local Tax Act shall be 15/100 of the acquisition value or annual installments, and pursuant to paragraph (2), necessary matters concerning the classification and scope of property under the preceding paragraph shall be prescribed separately by the Presidential Decree. According to Article 704 of the Enforcement Decree of the Local Tax Act, the term "land for non-business use of a corporation" as stated in the Emergency Decree No. 131 of the Enforcement Decree of the Local Tax Act means land for non-business use of a corporation under Article 131 of the Enforcement Decree of the Local Tax Act, which was enforced at the time of the enforcement of the Emergency Decree. The term "land for non-business use of a corporation" means land for which the corporation did not directly use its own purpose or acquired it for its own purpose within 6 months after it acquired it for non-business use. Thus, the court below's determination that the plaintiff corporation acquired the land for non-business use of the plaintiff corporation at least 171, which had no unique company's own own purpose.

Next, we examine the first ground for appeal by the defendant's attorney.

According to the reasoning of the judgment below, according to Article 111 (1) of the Local Tax Act, the tax base of acquisition tax shall be the value at the time of acquisition, but in the case of acquisition in annual installments, the annual installment payment date (the first payment date in case of payment in annual installments) at the time of acquisition in annual installments under Article 73 (5) of the Enforcement Decree of the Local Tax Act, which was enforced at the time of the acquisition of the land in this case by the plaintiff corporation, shall be deemed to have been acquired in annual installments as the tax base. The court below determined that the plaintiff corporation purchased the land in this case in December 30, 1974 and paid 10,830,000 won in annual installments and paid 10,000,000 won in annual installments, and the remaining amount shall be paid in annual installments from March 31, 1976 to March 31, 1979 to 30,2300,000 won in annual installments, and the above amount shall be paid in annual installments from 10,70,10.6.

However, Article 111(1) of the Local Tax Act and Article 73(5) of the Enforcement Decree of the same Act provide that the tax base of acquisition tax shall be the acquisition value at the time of acquisition, but where an annual installment payment is made by acquisition in annual installments, the first annual installment payment date shall be the tax base of acquisition tax, and the first annual installment payment shall be the tax base of the annual installment payment by acquisition tax, and it shall be interpreted that the first annual installment payment stipulated in the Enforcement Decree of the same Act and the above Local Tax Act refers not to the portion of each divided annual installment payment, but to the whole of each divided annual installment. If the "annual installment payment" is interpreted to mean only the part of each divided annual installment payment without the above interpretation, the acquisition tax shall be deemed the acquisition value at the time of the acquisition of the tax base under the Local Tax Act and the principle of the tax base under the Local Tax Act, and if an amount is paid by installments, the first annual installment payment date shall be deemed the acquisition tax base, and an unreasonable result shall be deemed to have been acquired at the time of each installment payment.

However, under the interpretation that the purport of the amount of annual installments in this case means that only the portion of annual installments for which installments are to be paid should be the tax base of KRW 10,000,000, which is the first annual installments already paid as stated in its reasoning. The above determination by the court below is difficult to avoid criticism that there is a misunderstanding of the legal principles as to the tax base of real estate acquisition tax in the event that the real estate was acquired in annual installments.

It is reasonable to point out this issue.

In the end, the plaintiff's appeal is without merit, and the costs of appeal arising from the plaintiff's appeal are assessed against the losing plaintiff. The defendant's appeal is with merit not to make a judgment on other grounds of appeal, and therefore, the part against the defendant among the judgment below against the defendant is reversed and remanded to the court below. It is so decided as per Disposition by the assent

Justices Lee Il-young (Presiding Justice)