In fact, whether a secondary tax liability exists for a person who is registered on the register of shareholders in the form of a company without any fact that shares are acquired or whose shares are distributed as a shareholder (negative)

In order to impose secondary tax liability on a shareholder of a corporation pursuant to Article 39 subparagraph 2 of the Framework Act on National Taxes, it is necessary to have an oligopolistic shareholder who is involved in the operation of the corporation as an oligopolistic shareholder, and on the sole basis of the fact that the shareholder registry is registered as a shareholder of the corporation in the form of a corporate registry, the liability to pay taxes cannot be imposed. Thus, the Plaintiffs who lent only the name of promoters at the time of incorporation upon the request of a relative founder who actually holds all the shares of the company, are actually engaged in a business unrelated to the company without any fact that the Plaintiffs actually acquired shares or simple the management of the company, or received dividends as a shareholder, and if the founder arbitrarily registers the Plaintiffs

Article 39 subparagraph 2 of the Framework Act on National Taxes

Supreme Court Decision 89Nu1414 delivered on April 13, 1990 (Gong1990, 1088) 89Nu1384, 1391 delivered on July 24, 1990 (Gong1990, 1808) 90Nu4235 delivered on September 28, 1990 (Gong190, 2213)

Plaintiff 1 et al., Counsel for the plaintiff-appellant Kim Jong-chul, Counsel for the plaintiff-appellant

Head of Ansan Tax Office

Seoul High Court Decision 90Gu1962 delivered on August 22, 1990

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

In order to impose secondary tax liability on the shareholders of a corporation pursuant to Article 39 subparagraph 2 of the Framework Act on National Taxes, it is necessary to have an oligopolistic shareholder who can participate in the operation of the corporation as an oligopolistic shareholder, and on the sole ground that the shareholder registry is registered as a shareholder in the form of a corporate registry, it cannot impose tax liability (see, e.g., Supreme Court Decision 89Nu4956, Nov. 28, 89; 89Nu1414, Apr. 13, 90).

According to the reasoning of the judgment below, the court below held that the plaintiffs owned 180 shares among the shares of the non-party Dongjin Industrial Machinery Co., Ltd., and the plaintiff 1 owned 5,500 shares among the shares of the non-party Dongjin Industrial Co., Ltd., respectively, and the above company is registered in the register of shareholders of each of the above companies. However, the non-party is the company established with the funds of the non-party and the whole shares are owned by the non-party, and the non-party 1 is the company and the non-party 2 is the company of the above non-party and the non-party 2 is the company of the non-party, and the plaintiff 2 is the non-party's non-party's company's non-party's non-party's non-party's non-party's non-party's non-party's non-party's non-party's non-party's non-party's non-party's non-party's non-party's non-party's non-party's non-party's non-party.

Therefore, the appeal is dismissed and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Lee Jae-sung (Presiding Justice)