1. The Defendant’s disposition imposing KRW 1,421,697,096 on the Plaintiff on December 6, 2018 is null and void.

Details of the disposition

Parties B (hereinafter referred to as “B”) and C (hereinafter referred to as “C”) have undertaken a new apartment construction project in Busan East-gu D.

The plaintiff has overall control over the affairs while actually operating B and C.

The Defendant: (a) purchased at KRW 1.5 billion from E and F, and concluded a sales contract at KRW 4.9 billion, and paid KRW 4.9 billion to them; (b) later, the acquisition value of the said real estate was excessively appropriated as KRW 4.9 billion around December 23, 2008 due to refund of KRW 3.4 billion, etc.; and (c) revised C’s corporate tax in December 23, 2013 to exclude the difference of KRW 3.4 billion from deductible expenses; and (d) on the ground that it is unclear that the said difference of KRW 3.4 billion was released from the office, and thus, it is unclear that it was disposed of as a bonus to the Plaintiff, the actual representative, and thus, notified the change in the income amount that is disposed of as a bonus.

On December 15, 2014, the Defendant decided and notified the Plaintiff of KRW 1,425,648,33 of the global income tax for bonus for the year 2008 (hereinafter “the initial disposition”), and upon the return of the notice, served by public notice on January 15, 2015.

On June 4, 2018, the defendant deemed that the original disposition did not meet the requirements for service by publication, and thus revoked the original disposition ex officio.

On December 6, 2018, the Defendant decided and notified the Plaintiff of the global income tax of KRW 1,421,697,096, which reverts to the bonus in 2008.

(2) On February 21, 2019, the Plaintiff filed an objection with the Busan Regional Tax Office on February 21, 2019, but the foregoing objection was dismissed on May 2, 2019.

As a result of the partial investigation into B and C’s corporate tax from May 19, 2014 to July 25, 2014, the Defendant deemed that B and C received a tax invoice without real transaction from Company I (hereinafter “I”), and excluded the relevant processing purchase on September 1, 2014.