Requirements for Determination of Value-Added Tax Estimate

In the case of determining the tax base and the amount of tax by the estimation method, it shall be determined only on the basis of the most reasonable and reasonable basis for the estimation under each subparagraph of Article 21 (2) of the Value-Added Tax Act. If the taxpayer shows that all the documentary evidence, etc. presented by the taxpayer in filing a voluntary return and payment of the value-added tax are not reliable, it shall be determined by the estimation method only when the taxpayer cannot determine the tax base and the amount of tax based on such material

Article 21 (2) of the Value-Added Tax Act

Plaintiff

Head of Central Tax Office

Seoul High Court Decision 85Gu115 decided September 3, 1985

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal are examined.

According to the reasoning of the judgment below, the court below ordered the plaintiff's preliminary return of value-added tax from January 1, 1984 to March 31 of the same year based on macro evidence to pay value-added tax amounting to KRW 6,354,149, which is calculated by adding the total sales during the above taxable period to KRW 80,000,00. The defendant found confidential records as a result of conducting a special tax investigation on the non-party's (location omitted)'s (i.e., the non-party's (i., the non-party)'s (i., the non-party's (i., the address omitted)'s (i.e., the non-party)'s (i., the non-party's (i., the non-party)'s (ii)'s (i.e., the non-party's (i., the non-party's (ii)'s (i., the non-party's (ii)'s (iii)'s)'s)'s (i.

2. In the case of determining the tax base and the amount of the tax by the estimation method, the determination shall be made only on the basis of the most reasonable and reasonable grounds for estimation under each subparagraph of Article 21(2) of the Value-Added Tax Act. If the taxpayer shows that all the documentary evidence, etc. presented by the taxpayer in filing a voluntary return and payment of the value-added tax are not reliable, it shall be made by presenting new materials, indicating such facts, and only when it is impossible to determine the tax base and the amount of the tax even on those materials

According to the records, the defendant can be found to have conducted an estimated investigation on April 23, 1984 on the ground that the plaintiff's voluntary declaration was not deemed legitimate without any data investigation that points out illegality in the books kept by him and recorded by him. Thus, the disposition of this case cannot be deemed an illegal disposition that does not meet the requirements for the estimated taxation. Further, the method of partner's right is only one of the methods of estimating the total sales, etc. after the requirement for the estimated taxation arises, and it cannot be the basis for the estimation itself. Thus, the decision of estimated assessment cannot be made immediately without any data investigation in comparison with the business situation of the above partner.

Although the reasoning of the court below is somewhat insufficient, it is not appropriate to view it as above, and therefore, it is therefore justifiable.In addition, although the defendant re-revision in consideration of the special circumstances at the time of the ex post facto decision of the court below, it is only a entirely new fact that is not alleged in the court below, and it cannot affect the illegal conclusion of the disposition of this case on the ground that it is not so.

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

Justices Shin Jong-sung (Presiding Justice)