If the interest rate on the current loan is selected as the market price, the interest rate on the current loan shall be applied to the market price as well as the two business years thereafter.

Where a corporation selects the interest rate on overdraft at the market price pursuant to Article 89 (3) 2 of the Enforcement Decree of the Corporate Tax Act, it shall apply the interest rate on overdraft at the market price for the business year of its choice and the next two business years.

Article 89(3)2 of the Enforcement Decree of the Corporate Tax Act

2018Guhap22113 Revocation of Disposition of Corporate Tax Imposition

s

F. Head of a tax office

o October 05, 2018

November 16, 2018

1. All of the plaintiff's claims are dismissed.

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

The Defendant’s imposition of corporate tax of KRW 6,679,520 for the business year of 2014 and corporate tax of KRW 9,010,80 for the business year of 2015 shall be revoked on September 1, 2017.

1. Details of the disposition;

A. The Plaintiff was established on December 29, 1998, and is engaged in the business of processing and manufacturing glass, etc. from the Cheongcheon-si Cheongcheon-si Cheong-si 2015. The Plaintiff reported each corporate tax for the business year from 2010 to 2015, and calculated the interest rate for the provisional payment to be considered as the market price pursuant to Article 89(3)2 of the Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 22577, Dec. 30, 2010; hereinafter the same shall apply) with respect to the provisional payment paid to Jeoncheon-a, a representative director, at the market price pursuant to Article 89(3)2 of the Enforcement Decree of the Corporate Tax Act.

Business year

2010

2011

2012

2013

2014

2015

Applicable Interest Rate

Interest rate for overdraft Loan

The weighted average loan interest rate

[Manifested Interest Rate Selection Status]

B. On June 5, 2017, the Director of a Regional Tax Office issued a comprehensive audit against the Defendant from June 5, 2017 to December 23, 2017, and notified the Defendant that the recognition of the Plaintiff’s business year 2014 and 2015 was calculated as follows:

According to Article 89(3)2 of the Enforcement Decree of the Corporate Tax Act, where the interest rate on the overdraft is selected as the market price, the interest rate on the overdraft loan is selected as the market price and the overdraft loan interest rate is selected as the market price for the next two business years.

○ The Plaintiff selected the interest rate on the current loan at the market price in the business year 2013, but calculated the interest rate on the provisional loan by applying the average interest rate on the second business year thereafter.

C. Accordingly, on September 7, 2017, the Defendant re-calculated the interest rate recognized as the market price by applying the interest rate on the temporary payments in the business year 2014 and 2015 to the Plaintiff. Based on this, the Defendant issued a revised and notified the Plaintiff of KRW 6,679,520 of corporate tax belonging to the business year 2014, and KRW 9,010,80 of corporate tax belonging to the business year 2015 (hereinafter “instant disposition”).

D. The Plaintiff dissatisfied with the instant disposition and filed an appeal with the Tax Tribunal on December 4, 2017, but the appeal was dismissed on March 6, 2018.

[Ground of recognition] Facts without dispute, purport of whole pleading

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

Article 89 (3) 2 of the Enforcement Decree of the Corporate Tax Act stipulates that the interest rate on the overdraft shall be applied to the market price only for the relevant business year in which the interest rate on the overdraft was selected as the market price and the two business years thereafter, and that the market price may be selected each year by new method.

In addition, if there is a gap in the interpretation of the tax law, interpreting it in favor of the taxpayer accords with the principle of no taxation without law (the principle of strict interpretation and the principle of clarity).

If the defendant asserts, the taxpayer can choose the interest rate at the market price only once every three years, such as 1, 4, 7, and 10 years. This goes beyond the literal interpretation scope of the above provision.

Therefore, the Plaintiff selected the market price of the overdraft interest rate in 2010 from that time to that of the market price for the business year of 2012, and applied the overdraft interest rate to the market price for the business year of 2012.

Ultimately, the instant disposition is made on a different premise, and thus ought to be revoked as it is unlawful.

B. Relevant statutes

The entries in the attached Table-related statutes are as follows.

C. Determination

1) According to Article 89(3)2 of the Enforcement Decree of the Corporate Tax Act, in the case of lending or borrowing of money under Article 88(1)6 [referring to where money or other assets or services are leased or provided at an interest rate, rate, or rent lower than the market price (excluding where money is provided as a result of the exercise or payment of stock option, etc., or where company housing is provided to an executive officer or employee who is not a shareholder, etc. or contributor; hereinafter the same shall apply] and Article 88(1)6 of the Enforcement Decree of the Corporate Tax Act (referring to where money or other assets or services are borrowed or provided at an interest rate, rate, or rental rate higher than the market price; hereinafter the same shall apply), the weighted average interest rate shall be the market price.

In this context, where the pertinent corporation selects the interest rate on overdraft as the market price pursuant to Article 89(3)2 of the Enforcement Decree of the Corporate Tax Act, it is reasonable to view that the interest rate on overdraft should be applied not only to the market price, but also to the market price, if the pertinent corporation selects the interest rate on overdraft as the market price for the business year in which the interest rate on overdraft was selected but also to the business year in which the interest rate on overdraft was selected as the market price for the next two business years. The reasons are as follows.

A) Examining the history of amendment to the relevant provisions of the Enforcement Decree of the Corporate Tax Act concerning the interest rate applicable to provisional payments, the following is as follows.

(1) The former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 19891 of Feb. 28, 2007)

Article 89 (Scope of Market Price, etc.)

(3) In the lending or borrowing of money under the provisions of Article 88 (1) 6 and 7, notwithstanding the provisions of paragraphs (1) and (2), the interest rate on overdraft as determined by the Ordinance of the Ministry of Finance and Economy shall be the market price: Provided, That in the following cases, the relevant interest rate shall be deemed the market

1. Where the concerned corporation has borrowed money at an interest rate higher than that of the current loan, the relevant interest rate on the loan equivalent to the amount of such borrowed money: Provided, That with respect to the loan falling under any of the following items, the current interest rate on the current loan shall be the market price:

(a) Where a loan is made to a corporation or an individual operating a business and the interest is agreed to be received at the interest rate for overdraft loans with a fixed repayment period; and

(b) The relevant interest rate leased to employees who own no houses in excess of the weighted average loan interest rate calculated under the conditions as prescribed by the Ordinance of the Ministry of Finance and Economy within the scope of the amount under Article 112 (1) of the Enforcement Decree of the Income Tax Act (excluding the case where the loan interest rate is higher than the overdraft loan interest

(A) As such, Article 89(3) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 19891, Feb. 28, 2007) provides that in a case where money and other assets or services are leased or provided at an interest rate, tariff, or rental rate lower than the market price, in principle, where monetary lending or borrowing between related parties is deemed to have unjustly reduced tax burden, such as where money and other assets or services are borrowed or provided at an interest rate, rate, or rental rate higher than the market price.

(B) However, criticism was raised that the above overdraft interest rate did not properly reflect the actual status of the transaction, and accordingly, the interest rate deemed the market price based on reflective consideration was revised to be applied as an weighted average loan interest rate in principle as follows (2) (see, e.g., Supreme Court Decision 2014Du4719, Aug. 26, 2014).

(2) The former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 19891, Feb. 28, 2007; Presidential Decree No. 21302, Feb. 4, 2009)

Article 89 (Scope of Market Price, etc.)

(3) In the case of lending or borrowing of money under Article 88 (1) 6 and 7, the weighted average loan interest rate calculated under the conditions as prescribed by the Ordinance of the Ministry of Finance and Economy shall, notwithstanding paragraphs (1) and (2), be the market price: Provided, That in case where it is impossible to apply the weighted average loan interest rate, as prescribed by the Ordinance of the Ministry of Finance and Economy (referring to the case where there is no amount borrowed from a person who is not a related

(A) As above, Article 89(3) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 19891, Feb. 28, 2007; Presidential Decree No. 21302, Feb. 4, 2009; Presidential Decree No. 21302, Feb. 4, 2009) provides that in the case of lending or borrowing of money between related parties, in principle, the weighted average loan interest rate shall be applied at the market price, but in exceptional cases, the interest rate at

(B) The Government provides for the following reasons for the amendment of the above provision:

Grounds for enactment and amendment

(j) Supplementation of the interest rate deemed the market price at the time of lending funds between related parties (Article 89(3) of the Decree);

(1) In the case of loans between related parties, the interest rate at the market price is applied regardless of the interest rate at the time of borrowing, and thus, it is difficult to reflect the substance of transactions.

(2) In the case of a lending or borrowing of money between a related party, the interest rate on overdraft loan in principle is applied to the previous interest rate which is deemed the market price. However, in the future, the weighted average loan interest rate as prescribed by the Ordinance of the Ministry of Finance and Economy shall be applied, but where it is impossible to apply the weighted average loan interest rate

(3) In the case of lending or borrowing of money between related parties, it is anticipated that the interest rate corresponding to the substance should be applied to the market price, thereby contributing to relaxing corporate tax burden.

(3) The former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 21302, Feb. 4, 2009; Presidential Decree No. 22577, Dec. 30, 2010)

Article 89 (Scope of Market Price, etc.)

(3) In cases of lending or borrowing money under Article 88 (1) 6 and 7, notwithstanding paragraphs (1) and (2), the rate (referring to the rate under subparagraph 1 where no choice is made) of the following rates which the relevant corporation selects, as prescribed by Ordinance of the Ministry of Strategy and Finance, along with a report under Article 60 of the Act, shall be the market price, and the selected rate shall be applied to all the corresponding transactions, and shall be continuously applied in the business years thereafter: Provided, That where the rate under subparagraph 2 is selected but it is impossible to apply the rate under subparagraph 2 in the business year thereafter and there are any grounds prescribed by Ordinance of the Ministry of Strategy and Finance, the rate under subparagraph 1 may

1. Interest rate on overdrafts prescribed by Ordinance of the Ministry of Strategy and Finance;

2. The weighted average loan interest rate prescribed by Ordinance of the Ministry of Strategy and Finance;

(A) As above, Article 89(3) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 21302, Feb. 4, 2009; Presidential Decree No. 22577, Dec. 30, 2010; Presidential Decree No. 22577, Dec. 30, 2010) provides that, in cases of lending or borrowing of money between related parties, the rate which the pertinent corporation selects, in principle, from among the overdraft interest rate or the weighted average loan interest rate, shall be applied at the market price.

In particular, if the corporation selects either of the interest rate on overdraft loans or the weighted average loan interest rate as the market price, it shall continue to apply to the following business years in principle: Provided, That in cases where the corporation selects the weighted average loan interest rate, but it is impossible to apply it in the following business years, the interest rate on overdraft loans shall apply to the market price only in the corresponding business year

Therefore, if the pertinent corporation selects the interest rate on overdraft as the market price, it shall continue to apply it in the following business years. ② Where it selects the weighted average loan interest rate, it shall continue to apply it in the following business years. ③ Where it is impossible to apply the weighted average loan interest rate even though it has selected the weighted average loan interest rate, it shall apply the interest rate on overdraft as the market price only in the corresponding business year.

(B) The Government provides for the following reasons for the amendment of the above provision:

Grounds for enactment and amendment

(e) Provision that the market price that becomes the basis for avoidance of wrongful calculation shall be selected when lending money (Article 89(3) of the Decree);

1) The weighted average loan interest rate, which is the basis for the avoidance of wrongful calculation, is complicated in the calculation of monetary lending between related parties, requires a large amount of expenses for tax payment cooperation.

2) In lending money, the average weighted loan interest rate and the interest rate on the overdrafted loan, which are the basis of unfair calculation avoidance, of the market price as chosen by the corporation.

3) It is anticipated that the tax adjustment avoidance of wrongful calculation would be simplified when lending money between related parties.

(4) Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 22577, Dec. 30, 2010; Presidential Decree No. 23589, Feb. 2, 2012)

Article 89 (Scope of Market Price, etc.)

(3) In cases of lending or borrowing money under Article 88 (1) 6 and 7, notwithstanding paragraphs (1) and (2), the weighted average loan interest rate prescribed by Ordinance of the Ministry of Strategy and Finance shall be the market price: Provided, That in the following cases, the interest rate on overdraft prescribed by Ordinance of the Ministry of Strategy and Finance shall be the market price according to the following classifications:

1. Where it is impossible to apply the weighted average interest rate on borrowings and there are grounds prescribed by Ordinance of the Ministry of Strategy and Finance: The interest rate on overdraft shall be the market price limited to the relevant business year

2. Where the relevant corporation selects the interest rate on overdraft as the market price, along with the report under Article 60 of the Act, as prescribed by Ordinance of the Ministry of Strategy and Finance: The interest rate on overdraft shall be the market price for the business year in which the interest rate on overdraft was selected as the market price and for two subsequent business years.

(A) As above, Article 89(3) of the Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 22577, Dec. 30, 2010; Presidential Decree No. 23589, Feb. 2, 2012; Presidential Decree No. 23589, Feb. 2, 2012) provides that, in cases of lending or borrowing of money between related parties, the weighted average loan interest rate shall be applied to the market price in principle: Provided, That in exceptional cases where it is impossible to apply the weighted average loan interest rate, the interest rate on the overdraft loan shall be applied to the market price only in the pertinent business year; and (b) where the pertinent corporation selects the overdraft loan interest rate as the market price, the overdraft loan interest rate

(B) Therefore, if the pertinent corporation selects the overdraft interest rate as the market price, it shall continue to apply the overdraft interest rate to the business year of its choice and the two following business years. ② In the case of failure to select the overdraft interest rate (in the case of principle), where it is possible to apply the overdraft interest rate, the weighted average overdraft interest rate in that year shall be applied to the market price, and in the next year, whether the overdraft interest rate shall be chosen again as the market price or as the weighted average interest rate shall be applied to the overdraft loan interest rate in accordance with the principle. If it is impossible to apply the overdraft interest rate, the overdraft interest rate shall be applied to the market price only in the pertinent business year, and whether the overdraft interest rate shall be applied to the overdraft interest rate again in the following year or not to the over

(C) However, in comparison with Article 89(3) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 21302, Feb. 4, 2009; Presidential Decree No. 22577, Dec. 30, 2010; Presidential Decree No. 22577, Dec. 30, 201), this means that (i) the previous provision provides that the relevant corporation may choose either of the overdraft interest rates or the weighted average loan interest rates as the applicable interest rate; (ii) once one of them is selected, it shall continue to apply in the following business years; and (iii) the amended provision sets the weighted average loan interest rate as the market price in principle, and (iv) provides the relevant corporation with an opportunity to choose the overdraft interest rate as the market price, and (v) provides the corporation with an opportunity to choose the overdraft interest rate as the market price, so that the application period of the obligation may continue to apply it in the business year

(5) Subsequent to Article 89(3) of the Enforcement Decree of the Corporate Tax Act (hereinafter “Enforcement Decree”) was added by Presidential Decree No. 23589, Feb. 2, 2012 (where a loan exceeds five years, the interest rate on the current loan shall be the market price only for the relevant loan or loan), and Article 89(3) was amended by Presidential Decree No. 25194, Feb. 21, 2014 as “limited to the relevant loan or loan” and Article 89(2) proviso and subparagraph 2 are maintained.

(6) As such, Article 3(3) of the Enforcement Decree of the Corporate Tax Act provides for the method of applying the weighted average loan interest rate as the market price in principle to the market price on the grounds that the actual status of the transaction is properly reflected in the lending or borrowing of money between related parties, the convenience of calculation, the promptness and uniformity of tax administration, etc.

B) In light of the language, content, form, system, etc. of the above provision, Article 89(3) of the Enforcement Decree of the Corporate Tax Act is to apply the weighted average loan interest rate in principle to the market price in cases of lending or borrowing money between related parties. (2) If the relevant corporation selects the interest rate on overdraft loan as the market price, the interest rate on overdraft loan must be applied to the relevant corporation in the business year and the two subsequent business years; (2) where the relevant corporation fails to choose the interest rate on overdraft loan again after the expiration of the period, and where it is possible to choose the interest rate on overdraft loan as the market price, the weighted average loan interest rate in the corresponding year shall be applied to the relevant corporation; and (3) where the relevant corporation fails to choose the interest rate on overdraft loan as the market price, Article 89(3) of the Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 25194, Feb. 21, 2014) or Article 89(3)14(1) of the Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 25194)]

In addition, there is no ground to regard this method to be applied only when the corporation first selects the interest rate on the overdraft as the plaintiff's assertion.

In particular, Article 89(3) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 21302, Feb. 4, 2009; Presidential Decree No. 22577, Dec. 30, 2010) provides that once the relevant corporation selects the lending interest rate, it shall continue to apply the lending interest rate unlimitedly in the following business years. This is more so in light of the amendment of Article 89(3) of the Enforcement Decree of the Corporate Tax Act that the period of application of the obligation is somewhat mitigated in the pertinent business year and two business years thereafter.

C) Interpretation and application of tax-related Acts and subordinate statutes must be strict upon the request of the no taxation without law, and analogical interpretation and expanded interpretation are not allowed (see, e.g., Supreme Court Decision 82Nu142, Jun. 28, 1983).

However, Article 89 (3) 2 of the Enforcement Decree of the Corporate Tax Act only stipulates that the interest rate on the overdraft shall be applied to the market price for the business year in which the corporation selects the overdraft interest rate as the market price, and for the two business years thereafter, the overdraft interest rate shall not be limited to the first selected business year and the two business years thereafter, or the number of its application shall not be limited only once.

Therefore, when the corporation selects the opportunity to choose the interest rate on the overdraft as the market price in the interpretation of the language and text, the interest rate on overdraft should be applied as a matter of course to the market price for the business year of its choice and two next businesses.

D) According to Article 43(1) of the Enforcement Rule of the Corporate Tax Act, the weighted average loan interest rate refers to the rate calculated by dividing the total amount obtained by multiplying the balance of respective loans (excluding loans borrowed from a related party) as of the time of lending a corporation by the total amount of the balance of the relevant loan.

In other words, the weighted average loan interest rate is the rate calculated on the basis of the average of the loan balance in the case of a general fund transaction except for exceptional cases, such as fund transaction with a related party. Therefore, the weighted average loan interest rate can be fully reflected in the actual loan transaction by applying the actual interest rate determined in comprehensive consideration of all the circumstances, such as the basic interest rate or the economic conditions of the market in the ordinary fund transaction by the relevant corporation, and the credit rating and the scale of transaction with the relevant corporation.

However, the weighted average loan interest rate is not only complicated in the calculation method, but also in the case that the number of financial transactions is too complicated, its application can be practically impossible, and it is also necessary that so-called ‘tax cooperation cost' is needed, such as unnecessary expenses are more needed by practitioners.

On the other hand, according to Article 43(2) of the Enforcement Rule of the Corporate Tax Act, the interest rate on the current loan refers to 46/1,00 per annum, and the above interest rate on the current loan is set by ① 85/1,000 per annum [Article 43(2) of the former Enforcement Rule of the Corporate Tax Act (amended by Ordinance of the Ministry of Strategy and Finance No. 266 of Feb. 28, 2012)]. ② 69/1,000 per annum (amended by Ordinance of the Ministry of Strategy and Finance No. 266 of Feb. 28, 2012, Article 43(2) of the former Enforcement Rule of the Corporate Tax Act (amended by Ordinance of the Ministry of Strategy and Finance No. 544 of Mar. 7, 2016).

This interest rate on over-the-counter loans can reflect to some extent the external economic situation, such as basic interest rate based on international circumstances or domestic market conditions, and the current status of household loans or business loans on a national scale.

However, since the legal entity and the other party's credit rating or size, and the economic specificity of individual financial transactions such as agreement or understanding between the parties involved in the financial transaction are not properly reflected, there is a limit to the effect that the actual status of the transaction is not properly reflected as a technical and constructive applicable interest rate compared to the weighted average loan interest rate.

However, the interest rate of the current loan has advantages that it is easy for the tax office to establish a simple, speedy and uniform tax affairs when it denies the calculation of the tax office's unfair act and tax adjustment.

Article 89(3) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 19891, Feb. 28, 2007) provides that the interest rate on overdraft should be applied to the market price in principle. However, Article 89(3) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 19891, Feb. 28, 2007; Presidential Decree No. 21302, Feb. 4, 2009; Presidential Decree No. 21302, Feb. 4, 2009; Presidential Decree No. 21302, Feb. 4, 2009; Presidential Decree of the Corporate Tax Act (amended by Presidential Decree No. 22577, Dec. 30, 2010); however, Article 89(3) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 22577, Dec. 30, 2010>

In light of the above circumstances, Article 89(3) of the Enforcement Decree of the Corporate Tax Act (hereinafter “Enforcement Decree”) applies the weighted average loan interest rate to the market price in principle in order to reflect the actual status of the transaction in the case of lending or borrowing of money between related parties. (2) In order to promote the convenience, swiftness, uniformity, etc. of tax administration, the corporation is given an opportunity to choose the interest rate on the overdraft as the market price. (3) Once the corporation selects the interest rate on the overdraft as the market price, the corporation is forced to apply the interest rate on the overdraft loan to the market price for the pertinent business year chosen regardless of the first or second or second or subsequent two business years.

E) The weighted average loan interest rate is changed according to the actual transaction details of the relevant corporation, while the interest rate on overdrafts is fixed as long as the relevant laws and regulations are not amended.

Therefore, even though the corporation has selected the overdraft interest rate at the market price in a specific business year, if the corporation is allowed to choose not to choose the overdraft interest rate at the market price or not to apply the overdraft interest rate at the market price in the next year or to choose whether to apply the overdraft interest rate at the same time according to the principles, it is likely that it will in fact avoid taxes by comparing the overdraft interest rate at the time of filing corporate tax every year with the overdraft interest rate at the time of

F) The Plaintiff asserts to the effect that the attached Form No. 19 of Article 43(5) of the Enforcement Rule of the Corporate Tax Act provides that “each year’s overdraft interest rate and the weighted average loan interest rate” shall be referred to.

However, according to Article 43(5) of the Enforcement Rule of the Corporate Tax Act, where a corporation selects the applicable interest rate pursuant to Article 89(3)2 of the Enforcement Decree of the Corporate Tax Act (referring to the case of selecting the current interest rate at the market price), it is necessary to prepare and submit a statement of the recognition of provisional payment and a statement of adjustment (A).

If a corporation selects the interest rate of the current loan at the market price, it is only required to submit attached Form 19, but it does not stipulate that it shall be selected and submitted every year.

In addition, in the attached Form 19, it is clearly stated in the "Form" column that "in case of selecting the interest rate on overdraft under Article 89 (3) 2 of the Enforcement Decree of the Corporate Tax Act, the interest rate on overdraft shall be applied at the market price continuously in the selected business year and in the following two business years."

2) On such premise, the Plaintiff selected the interest rate on the current loan at the market price in the business year 2013. As such, the Plaintiff selected the interest rate on the current loan at the market price pursuant to Article 89(3)2 of the Enforcement Decree of the Corporate Tax Act, and the two business years following the 2013 business year which selected the interest rate on the current loan at the market price pursuant to Article 89(3)2 of the Enforcement Decree of the Corporate Tax Act, i.e.

Therefore, the instant disposition was made pursuant to the above relevant provisions, and is lawful.

3. Conclusion

Therefore, the plaintiff's claim is without merit, and it is so decided as per Disposition.

1) Article 52(1) of the former Corporate Tax Act (amended by Act No. 11128, Dec. 31, 2011); however, the term “specially related persons” used the term “specially related persons” but thereafter, the term was modified by Act No. 11128, Dec. 31, 2011; hereinafter referred to as “specially related persons”) was changed to “specially related persons”; hereinafter referred to as “specially related persons, in addition to the language and text of the Act, the term is unified