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1. The Defendant’s imposition of corporate tax of KRW 833,493,880 against the Plaintiff on December 1, 2014 shall be revoked.
2.
Reasons
1. Details of the disposition;
A. On November 4, 1993, the Plaintiff was a corporation established for the purpose of manufacturing and wholesale business of women on November 4, 1993, and 1,13.2 billion won in the business year 201, 1,52.3 billion won in the business year 201, 1,72.9 billion won in the business year 2012, and 1,95.9 billion won in the business year 2013. The Plaintiff’s sales revenue did not amount to a small or medium enterprise exceeding the first KRW 100 billion in the business year 2010, but the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 22583, Dec. 30, 2010; hereinafter “former Enforcement Decree of the Restriction of Special Taxation Act”) was subject to the grace period from 2010 to 2013 pursuant to Article 2(2) of the former Enforcement Decree of the Restriction of Special Taxation Act.
B. Meanwhile, the Enforcement Decree of the Restriction of Special Taxation Act applies mutatis mutandis to the requirements for small and medium enterprises under the Enforcement Decree of the Framework Act on Small and Medium Enterprises. The Enforcement Decree of the Framework Act on Small and Medium Enterprises amended by Presidential Decree No. 21368 on March 25, 2009, and Article 3 Subparag. 2 and Subparag. 1 of the same Act provide that companies belonging to “related companies” shall meet the standards for size of small and medium enterprises by adding item
Since then, the former Enforcement Decree of the Restriction of Special Taxation Act was amended by Presidential Decree No. 22583 on December 30, 2010, and Article 2(1)3 and Article 2(2) proviso of the Enforcement Decree of the Framework Act on Small and Medium Enterprises introduced the standards for related companies under Article 3 subparag. 2(c) of the Enforcement Decree of the Framework Act on Small and Medium Enterprises and Article 3 subparag. 2(2) proviso to Article 2(2) and stipulates that where the total sales amount, etc. of related companies meet the standards for exclusion of small and medium enterprises, the relevant year and the subsequent three years shall not be applied to the grace period, and the amended provisions of Article 2(1)3 of the Addenda
C. On June 26, 2013, the Plaintiff’s representative director B transferred 120,000 shares (30%) out of the Plaintiff’s shares to C (hereinafter “C”).
The Plaintiff reported corporate tax for the business year 2013 to the Defendant, and is a small and medium enterprise.