Seoul High Court Decision 149 decided October 24, 2013

The act of using a number of borrowed accounts through people constitutes "Fraud and other unlawful acts".

It is reasonable to view that the Plaintiff avoided the comprehensive taxation on financial income and the application of the progressive tax rate, and made it impossible or considerably difficult to impose and collect taxes, by concealing the income by distributing the deposits in several borrowed accounts for a long time.

Article 26-2 of the Framework Act on National Taxes

2013Guhap26828 global income and revocation of disposition

202 and 2003 Kima, 2003, by maintaining interest income in the borrowed account as KRW 40 million;

In 2006, the comprehensive income tax was not paid except nine persons, such as Kima, and the amount of such tax was paid.

From 2002 to 2006, it is only vV members.

③ The Plaintiff used the instant borrowed name account repeatedly for five years, and newly established and managed several new borrowed name accounts each year. In addition, the Plaintiff’s establishment and use of the instant borrowed name account in attached Form 2.

On the other hand, the account holder of the instant borrowed account is various as lineal family members, Cho Jong-soo, wife, company employees, customers, and other persons. Therefore, it is difficult for the tax authorities to find and taxation all of them.

④ The Plaintiff’s global income tax calculated by adding interest income to the instant borrowed name account.

The opening of a borrowed account is an illegal act under the financial real name system and is a financial institution.

The purpose of tax evasion may not be denied by means of solicitation.

(3) Therefore, the use of the instant borrowed account constitutes “Fraud or other unlawful act”

The disposition of this case, which was made by applying the exclusion period of ten years, is legitimate.

3. Conclusion

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

(c)

X Kimx

Head of Mapo Tax Office

August 22, 2014

1. The plaintiff's claim is dismissed.

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

The imposition of global income tax (including additional tax), global income tax (including additional tax), global income tax (including additional tax), global income tax (including additional tax), global income tax (including additional tax), global income tax (including additional tax), global income tax (including additional tax), global income tax (including additional tax), global income tax (including additional tax), global income tax (including additional tax) in 2005, and global income tax (including additional tax) in 2006, which the Defendant imposed on the Plaintiff on January 10, 2013, shall be revoked.

1. Details of the disposition;

The Plaintiff, from January 1, 2002 to December 31, 2006, shall have a title (a), such as her relatives, her relatives, president of business partners, etc.

In managing term deposits, etc. using the x name account (hereinafter in this case "the instant case") established in zzzz and other d financial institutions, the Defendant omitted the filing of global income tax on the total amount of interest income ○○○○○○○ from 2002 to 2006." On January 10, 2013, the Defendant filed a request for review on the Plaintiff on January 10, 2013, the global income tax ○○○○ (including the additional tax), global income tax 2003, global income tax ○○ (including the additional tax), global income tax 204, global income tax ○○(including the additional tax), global income tax 2005, global income tax ○○(including the additional tax), global income tax 2005, global income tax 000 (including the additional tax), and global income tax ○○ (including the instant disposition) in 206.

was dismissed by the court.

[Ground of recognition] Unsatisfy, Gap evidence 1 (including paper numbers), Eul evidence 1 to 6

Each entry, the whole purport of the pleading, including

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

It is impossible or significantly difficult to impose and collect by means of financial transactions with a borrowed account.

Considering that the interest income generated from the name account of this case does not constitute a "act of fraud or other wrongful act"; that income tax was withheld in each year; that the amount of interest income was added to each account holder; that global income tax was paid by adding up the amount of interest income; that the Plaintiff constitutes a simple non-declaration by a financial institution’s recommendation; that is, it constitutes a financial transaction with a name account; that is, the Plaintiff was conducting financial transactions with a name account as well as maintaining the name holder; and that there was no additional active act of concealing income, such as changing several names, etc., the Plaintiff’s financial transaction with the name account does not constitute a "Fraud or other unlawful act." Thus, the instant disposition

(b) Related statutes;

It is as shown in the attached Table related statutes.

(c) Fact of recognition;

(1) From 2002 to 2006, the Plaintiff’s name s inc financial institutions (branch offices)

I would like to establish a borrowed account aaa and make financial transactions.

On the other hand, a financial institution opens a borrowed account to the Plaintiff, and the Plaintiff and the Plaintiff apply for the opening of account.

The plaintiff's telephone number or address was indicated.

The plaintiff, as stated in attached Form 1 (2) "the actual condition of the establishment and use", 7 years in 2002 in the name of Park Jong-a.

An account shall be opened, five existing accounts and five new accounts in 2003, four existing accounts and four existing accounts in 2004.

Two accounts, two existing accounts and one new account in 2005, and seven accounts in 2006, respectively.

The establishment and use was established and used.

(3) The interest income accrued from the instant borrowed name account from January 1, 2002 to December 31, 2006

DD members and financial institutions have withheld interest income tax vV members.

(4) Of the interest income accrued from the instant borrowed account, the General Center exceeding KRW 40 million per annum.

The next person who reported the acquisition tax shall be Kima in 2002 and 2003 and Kima, etc. in 2006 as follows:

The amount of global income tax paid additionally by nine persons, such as Kima, is five members.However, the amount of global income tax paid additionally by nine persons such as Kima is five members.

nine persons, including Kima, who are subject to the global income tax return in 2006 and the Plaintiff’s global income tax return in 2006.

In all, tax agent is called Naa.

(5) Interest income from the Plaintiff’s original report (the Plaintiff’s name account) and interest income from omitting a report

Current status of acquisition shall be as follows:

[Ground of recognition] Unsatisfy, Gap evidence 6 to 17 (including Gazy number), Eul evidence 7 to 30

(including serial number) each entry, the purport of the whole pleadings

D. Determination

(1) Article 26-2 subparag. 1 of the Framework Act on National Taxes (amended by Act No. 8139 of Dec. 30, 2006)

The limitation period for the imposition of national taxes is defined as 10 years from the date on which the national tax is assessable if a taxpayer evades, is refunded, or is deducted from, the national tax by 'Fraud or other unlawful acts' (Article 1(1)); 7 years from the date on which the national tax is assessable if a taxpayer fails to file a tax base return within the statutory due date of return; 5 years from the date on which the national tax is assessable if it does not fall under subparagraphs 1 and 2 (Article 3).

The legislative purport of Article 26(1) above is to extend the exclusion period for the imposition of national taxes to 10 years, in principle, in cases where there is an unlawful act such as making it difficult to discover the taxation requirement of national taxes or making it difficult for the tax authorities to find out any false fact while the exclusion period of the imposition of national taxes is five years in order to promptly determine the tax law relations, and it is difficult for them to expect the exercise of the imposition right. Therefore, the exclusion period for imposition of national taxes is extended to 10 years, since it is difficult for them to find it difficult for them to do so. Therefore, the term "Fraud and other unlawful act" refers to a deceptive act which makes the imposition and collection of taxes impossible or considerably difficult, and it does not constitute a simple failure to report under tax law

On the other hand, the fact that a deposit is made by lending a deposit account in another person's name does not necessarily lead to any circumstance such as the motive, circumstance, etc. of a specific act or active act of concealing income. However, even in the act of hiding a deposit in a borrowed account, it shall not be readily concluded.

deposit in several borrowed-name accounts, or deposit in another borrowed-name account in succession; or

Provided, That even one deposit shall be the one-time deposit whose effect of concealment is remarkable due to a special relationship with the nominal owner.

in addition to the circumstances showing the intention of active concealment, the imposition and collection of taxes is not possible.

or substantially difficult (Supreme Court Decision 2008Do208 Decided May 29, 2009)

9436 see Supreme Court Decision 9436

(2) Considering the following circumstances, the Plaintiff has a long-term number of years, taking into account the health stand and the instant case:

Comprehensive taxation on financial income and cumulative tax rate by concealing income by distributing deposits in the borrowed account at the location of the account.

It is reasonable to avoid the application, and to make the imposition and collection of taxes impossible or remarkably difficult.

1. The Plaintiff shall open at the x Financial Institutions aa in the name of another person aa in the name of another person.

The interest income of vV members was omitted through the borrowed name account.

② Tax returns on interest income accrued from the borrowed account of this case shall be the same tax amount.

The income has been made by the agent, which seems to be aimed at achieving the purpose of abolition.

at the time of the application, the comprehensive taxation of financial income is imposed on interest income exceeding 40 million won.