The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined.

1. Article 40 (1) of the former Corporate Tax Act (amended by Act No. 7005, Dec. 30, 2003; hereinafter the same) provides that "the business year of accrual of earnings and losses of a domestic corporation for each business year shall be the business year which includes the date on which the concerned earnings and losses are settled." Article 70 (2) of the former Enforcement Decree of Corporate Tax Act (amended by Presidential Decree No. 18706, Feb. 19, 2005) provides that "the business year of accrual of dividend income received by a corporation shall be the business year which includes the date on which the time of receipt under Article 46 of the Enforcement Decree of the Income Tax Act falls." Article 46 subparagraph 2 of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 18173, Dec. 30, 2003) provides that "the time of receipt of dividends through the disposal of retained earnings shall be the date of resolution on disposal of the concerned corporation's surplus.

2. In full view of the adopted evidence, the court below acknowledged the following facts: ① The Plaintiff did not include the total of KRW 2,431,040,437, and the total of KRW 15,833,300, and KRW 2,446,873,737 (hereinafter “the dividends for attempted dividends of this case”) in gross income for the business year 2002, and ② the Defendant did not include the Plaintiff’s claim for failed dividends of this case in gross income for the business year 2002, by deeming on June 15, 2007, that the Plaintiff’s claim for failed dividends of this case should be included in gross income for the business year 2002.

Furthermore, the lower court stipulated that dividends shall be paid to its members only after all redemption of the principal and interest of the asset-backed securitization plan and the articles of incorporation of each special purpose company of this case, and the transaction of asset-backed securitization shall be prior to the time of redemption by issuing asset-backed securities.