Whether taxable income can be deducted from taxable income by including the non-taxable income of the year concerned, where the non-taxable income of the previous year is carried over.

In calculating the tax base of the corporate tax on the corporate income for each business year under the Corporate Tax Act, the provision that the non-taxable income for each business year should be deducted from the corporate business year only that the non-taxable income for the corresponding year should be deducted from the corporate business year, but the income recognized as non-taxable income in the preceding business year is not taxed in the previous business year, and the non-taxable income for the previous year should

Article 8 of the Corporate Tax Act

Korea-Japan Branch Corporation

The Head of Seoul Cheongrine Tax Office

The plaintiff's claim is dismissed.

Litigation costs shall be borne by the plaintiff.

The disposition that the defendant imposes corporate tax of KRW 17,476,405 on the plaintiff from January 1, 1969 to December 31, 1969 shall be revoked.

Litigation costs shall be borne by the defendant.

Of the amount of 38,486,947 won in business year income from January 1, 1969 to December 31, 1969, the Defendant imposed KRW 32,91,75 on the Plaintiff corporation a corporate tax amount of KRW 17,476,405 on the Plaintiff corporation as the tax base and imposed KRW 32,91,75,000,000 after deducting KRW 5,575,192 won in business year 1968.

However, according to Article 8 of the Corporate Tax Act, in calculating the tax base of corporate tax on each business year of the Plaintiff, the Plaintiff’s legal representative asserted that the Defendant’s disposition to impose corporate tax without deducting KRW 74,243,205 carried over in the previous year in calculating the tax base of the Plaintiff’s business year, even though it is required to deduct the non-taxable income from the income of each business year of the Plaintiff’s business year, is unlawful. Thus, in calculating the tax base of the corporate tax on each business year of the corporation, the provision that the non-taxable income of each business year should be deducted from the income of each business year of the corporation in calculating the tax base of the corporate tax, only the non-taxable income of each business year should be deducted from the income of each business year of the corporation, and the non-taxable income of the previous year should be deducted from the income of the previous year. Thus, the Plaintiff

Therefore, the plaintiff's claim for the revocation of the disposition imposing corporate tax on the premise of the above assertion is without merit, and it is dismissed, and the costs of lawsuit are assessed against the losing plaintiff and it is so decided as per Disposition.

Judges Lee Jong-jin (Presiding Judge)