Whether a “non-business land” under Article 112-3 of the former Local Tax Act (amended by Act No. 4415 of Dec. 14, 1991) can be deemed as a “non-business land” in case where a corporation acquired land and used it for business purposes and disposed of it to another place within five years from the date of acquisition

Where a corporation acquires land and uses it for business purposes and sells it within five years from the date of acquisition, it shall not be deemed to fall under the case where the relevant land becomes non-business land of the corporation within five years from the date of acquisition in light of the purpose of legislation with respect to the acquisition tax.

Article 112-3 of the former Local Tax Act (amended by Act No. 4415 of Dec. 14, 1991)

[Plaintiff-Appellant] Plaintiff 1 and 1 other (Law Firm Domin, Attorneys Lee Domin-soo and 1 other, Counsel for plaintiff-appellant)

Samyang Petroleum Corporation

The East Mine Development Market

Gwangju High Court Decision 91Gu291 delivered on April 2, 1992

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal by the defendant litigant are examined.

According to Article 112-3 of the Local Tax Act (amended by Act No. 4415 of Dec. 14, 1991), where a corporation acquired a land and used it for a business purpose, and sold it within five years from the date of acquisition, acquisition tax shall be additionally collected by applying the tax rate under Article 112 (2). Thus, in case where a corporation acquired a land and used it for a business purpose, and sold it within five years from the date of acquisition, it shall not be deemed to fall under “where the relevant land becomes a corporation’s non-business land within five years from the date of acquisition of the land,” in light of the purpose of legislation with the acquisition tax, it shall not be deemed to fall under “where the relevant land becomes a corporation’s non-business land.” Therefore, the court below is just and there is no error in the misapprehension of legal principles pointing out the land points out.

In addition, as long as the land of this case is not the land for sale under Article 84-4 (3) 2 of the Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 12028 of Dec. 31, 1986), it cannot be discussed whether the land of this case is non-business land of a corporation subject to acquisition tax with the same provision. Thus, there is no ground to view that the land of this case becomes non-business land of a corporation subject to acquisition tax and its subject to acquisition tax under the premise that the same provision applies.

Therefore, the appeal is dismissed and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.