The time limit to meet the requirements prescribed in Articles 51, 1 and 2 of the Enforcement Decree of the Tax Reduction and Exemption Control Act in order to reduce or exempt the transfer income tax under Article 63 (1) of the same Act.

In order to reduce capital gains tax or special surtax under the provisions of Article 63(1) of the Regulation of Tax Reduction and Exemption Act and Article 51(1) and (2) of the Enforcement Decree of the same Act, the land first transferred shall be the land on which buildings under the Building Act have not been settled, and the time when the transferred land satisfies the above requirements is to meet the above requirements is not specifically stipulated in the same Act, and thus, the transferor shall be exempted from receiving almost all of the purchase price for the relevant land and until the transferee can exercise its right as the actual owner.

Article 63(1) of the Regulation of Tax Reduction and Exemption Act, Articles 51(1) and 51(2) of the Enforcement Decree of the Regulation of Tax Reduction and Exemption Act

Supreme Court Decision 84Nu612 Decided August 20, 1985

Attorney Ko Young-ok, Counsel for the promotional business corporation-appellant

Head of Yongsan Tax Office

Seoul High Court Decision 84Gu652 delivered on June 21, 1985

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

The grounds of appeal are examined.

1. According to Article 63(1) of the Regulation of Tax Reduction and Exemption Act, Article 51(1), (2), and (4) of the Enforcement Decree of the Building Act, the court below held that the tax amount equivalent to 50/100 of the special surtax shall be exempted only when a national transfers the land registered under Article 6 of the Housing Construction Promotion Act (if the land is transferred to a housing construction business operator, 2.3 percent of the total amount of the land which is not settled under the Building Act) and that the land of this case (attached Form 13 lots) is owned by the plaintiff under macro evidence, and it is difficult to view the above 1,984,575,00 won to the non-party construction business operator registered under Article 6(2) of the Housing Construction Promotion Act and the above 2.3 percent of the total amount of the intermediate payment to the non-party 1 and the remaining 2.6 percent of the total amount of the land of this case (the remaining 2.6 percent of the land of this case is divided into 16.6 percent of the above land).166

2. In order to reduce capital gains tax or special surtax pursuant to the provisions of the Regulation of Tax Reduction and Exemption Act and the Enforcement Decree of the same Act, the land first transferred is equal to the time of original adjudication, and there is no special provision in the Building Act as to the time when the transferred land satisfies the above requirements. Thus, this shall not be applicable to the transferor's payment of the purchase price in full and until the transferee is able to exercise his right as the owner (see Supreme Court Decision 84Nu612 delivered on August 20, 1985). Accordingly, according to the testimony of the non-party who did not dismiss the court below, according to the non-party's testimony, the date on which the plaintiff received almost all the purchase price was paid on February 27, 1982, and the remaining payment date of the contract under the contract is equal to April 30, 1982, and according to the facts duly established by the court below, it shall not be justified as to the above part of the special surtax until 1983.3.126.26.

However, if the land on which the building in this case is settled as at the time of the original adjudication is located is only the land above 1250 and 1266-1 of the above 13 parcels of this case, it shall be deemed that it constitutes the requirements for reduction and exemption of special surtax under the Regulation of Tax Reduction and Exemption Act with respect to the 111 parcels of this case from the beginning, and it shall be smoothly supplied idle land to the land for construction of national housing through reduction and exemption of special surtax, so it shall conform to the legislative intent of the above Article in order to facilitate the construction of national housing, and the court below shall accept the disposition of this case which determined the tax amount on the basis of transfer margin calculated on the basis of the whole 13 parcels of this case as a whole for any reason, for which the above 11 parcels of this case is not subject to reduction and exemption of special surtax, and therefore, it shall be justified for the court below to have determined the tax amount on the basis of the above 11 parcels of this case

In addition, the above tax amount cannot be calculated separately by classifying the above land according to the records, and the judgment of the court below shall be reversed in its entirety.

3. Therefore, the judgment of the court below is reversed, and the case is remanded to the Seoul High Court which is the lower court. It is so decided as per Disposition with the assent of all participating judges

Justices Jeong Jong-tae (Presiding Justice)