1. The plaintiff's claim is dismissed.

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

1. Details of the disposition;

A. On November 15, 1982, the Plaintiff, a corporation established with permission under Article 32 of the Civil Act, was paid KRW 1,289,317,660 as compensation for the instant land (hereinafter “instant compensation”) as it was expropriated for the implementation of the C development project as the land of five parcels, including the land B, in Gyeyang-gu, Incheon (hereinafter “instant land”) owned by it was expropriated on April 22, 2016.

B. On January 6, 2017, D Confucian Schools affiliated with the Plaintiff filed an application with the Commissioner of the National Tax Service for a prior answer of interpretation of the tax law under the National Tax Service Regulations (hereinafter “the instant regulations”) as to whether the instant land falls under “use directly for the proper purpose business for three or more years as of the date of disposal of the relevant fixed assets” under Article 3(3)5 of the former Corporate Tax Act and Article 2(2) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 27828, Feb. 3, 2017) and whether the instant compensation is excluded from the income subject to corporate tax.

By February 6, 2017, the Commissioner of the National Tax Service requested D Confucian Schools to submit documents to verify the Plaintiff’s proper purpose business, such as the Plaintiff’s establishment basis and the articles of incorporation, and the details used in relation to the proper purpose business, and D Confucian Schools submitted data such as the Plaintiff’s articles of incorporation.

C. On March 31, 2017, the Plaintiff reported and paid corporate tax for the business year 2016 to the Defendant. At the time, the instant compensation was not included in the income subject to corporate tax.

The Commissioner of the National Tax Service, on February 19, 2018, uses the instant land for the establishment, etc. of a funeral and educational facility, constitutes “use directly for the proper purpose business” but does not constitute “use directly for the proper purpose business” in cases where the income generated by leasing or cultivating the instant land is used for the proper purpose business.