Whether a person has re-established for at least eight years;

The plaintiff is clear that he/she did not meet the requirements for reduction or exemption of capital gains tax because he/she resided in the area of the Si/Gun/Gu where farmland is located or in the area of the Si/Gun/Gu adjacent thereto for not less than eight years and does not constitute a farmer.

Article 69 of the Restriction of Special Taxation Act (Reduction or Exemption of Transfer Income Tax for Self-Cultivating Farmland)

Article 66 of the Enforcement Decree of the Restriction of Special Taxation Act: Reduction or exemption of transfer income tax for self-Cultivating farmland

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

The Defendant’s disposition of imposing KRW 50,072,740 on the Plaintiff as of 2006.07.07 is revoked.

1. Circumstances of dispositions;

A. On 20 March 20, 1998, the Plaintiff, a father, donated ○○○○○○-do ○○○○○○-do ○○○○, 3,200 square meters in the same Ri, 4,128 square meters in the same Ri, 3,080 square meters in the same Ri, and 3,080 square meters in the same Ri ○○-do (hereinafter “the farmland”).

B. On October 28, 2006, the Plaintiff transferred the farmland of this case to ○○○, and subsequently declared a tax amount equivalent to 100/100 of the transfer income tax on the ground that the farmland of this case constitutes self-arable farmland under Article 69 of the Restriction of Special Taxation Act.

C. However, on the ground that the Plaintiff failed to meet the reduction or exemption requirements, the Defendant imposed the instant disposition imposing KRW 50,072,740 on the Plaintiff on July 07, 2006, imposing the transfer income tax belonging to the year 2006.

D. The Plaintiff appealed and filed a request for a national tax trial on November 29, 2006, but was dismissed on November 20, 2006.

[Reasons for Recognition] Evidence Nos. 1 to 6-1, Evidence No. 1 to 1, and the purport of the whole pleadings

2. The assertion and judgment

A. The plaintiff's assertion

Although the Plaintiff did not reside in the farmland of this case, it actually cultivated the farmland of this case on the 1st day while operating a private taxi in Seoul while doing so, it is required to obtain reduction or exemption of capital gains tax under Article 69(1) of the Restriction of Special Taxation Act.

B. Defendant’s assertion

The Plaintiff did not meet the residential requirements under Article 69(1) of the Restriction of Special Taxation Act, and only indirectly engaged in agricultural management by employing other persons, it does not constitute an exemption from capital gains tax.

(c) Related statutes;

○ Reduction or exemption of transfer income tax on self-Cultivating farmland Article 69 of the Restriction of Special Taxation Act

(1) With respect to the income accruing from a transfer of land prescribed by the Presidential Decree, which is directly cultivated by the resident prescribed by the Presidential Decree residing in the location of such land for not less than eight years [not later than December 31, 2010, three years where such farmland subject to direct payments for business transfer prescribed by the Presidential Decree is incorporated into the Korea Agricultural and Rural Infrastructure Corporation under the Korea Agricultural and Rural Infrastructure Corporation and Farmland Management Fund Act or into the corporation prescribed by the Presidential Decree which mainly runs the agricultural business (hereafter referred to as the "agricultural corporation" in this Article)] and prescribed by the Presidential Decree, the tax amount equivalent to 100/100 of the capital gains tax on the income accruing from a transfer of such land (including those subject to non-taxation, reduction and exemption, and small collection) shall be reduced or exempted: Provided, That where the relevant land is incorporated into the residential area, commercial area and industrial area under the National Land Planning and Utilization Act (hereafter referred to as the "residential area, etc." in this Article) or has been designated as the land other than the land scheduled for replotting prior to the disposition of replotting under the Urban Development Act and other Acts.

○ Reduction or exemption of transfer income tax on self-Cultivating farmland Article 66 of the Enforcement Decree of the Restriction of Special Taxation Act

(1) The term "resident prescribed by the Presidential Decree residing in the seat of the farmland" in the main sentence of Article 69 (1) of the Act means a person who has cultivated while living in the area falling under any of the following subparagraphs (including the relevant area which falls under the relevant area at the time of commencement of cultivation, but comes not to fall under it due to a change in administrative district, etc.) for not less than eight years [3 years where farmland subject to payment of management transfer subsidies under paragraph (3) is transferred to the Korea Rural Community and Agricultural Corporation under the Korea Rural Community and Agricultural Corporation and Farmland Management Fund Act (hereafter referred to as the

1. An area in a Si/Gun/Gu (referring to an autonomous Gu; hereafter the same shall apply in this paragraph) where farmland is located;

2. An area within a Si/Gun/Gu adjacent to an area referred to in subparagraph 1.

D. Determination

Article 69(1) of the Restriction of Special Taxation Act provides that "resident prescribed by the Presidential Decree residing in the seat of farmland" shall be exempted from the tax amount equivalent to 100/100 of capital gains tax on the income accruing from the transfer of land prescribed by the Presidential Decree among the land subject to agricultural income tax, which is cultivated directly for not less than eight years by "resident prescribed by the Presidential Decree residing in the seat of the farmland". Article 69(1) of the Enforcement Decree of the same Act provides that "the resident residing in the seat of the farmland for not less than eight years" shall be "the person who resided in the area in the Si/Gun/Gu, or in the Si/Gun/Gu adjacent to the Si/Gun/Gu, where the farmland is located, or in the Si/Gun/Gu, where the farmland is located, which is located for not less than eight years." Since the taxation on capital gains accruing from the transfer of farmland goes beyond the explicit scope in light of the nature of the above provision of reduction or exemption, it is apparent that the Plaintiff did not meet the requirements for reduction or exemption of capital gains tax.

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit. It is so decided as per Disposition.