[1] Whether land, such as ditches and waterways, which are not directly used for cultivating crops, is exempt from special rural development tax (negative)

[2] The purport of Article 4 (7) of the Enforcement Decree of the Special Rural Development Tax Act and the requirements for special rural development tax to be non-taxable under the same provisions

[1] The land on which farmland tax is levied means the land from which the revenue accrues from the direct cultivation or cultivation of the crops [referring to Articles 197, 198, and 206 of the former Local Tax Act (amended by Act No. 5598 of Dec. 28, 1998), and Article 63 (1) of the former Regulation of Tax Reduction and Exemption Act (amended by the Restriction of Special Taxation Act No. 5584 of Dec. 28, 1998), where the transfer income tax is reduced or exempted under Article 63 (1) of the former Enforcement Decree of the Special Rural Development Tax Act (amended by Presidential Decree No. 15976 of Dec. 31, 1998), the land on which the special rural development tax is exempt under Article 9 (1) 1 of the former Enforcement Decree of the Restriction of Special Taxation Act is used directly for farming, and thus, even if the land is used for the supply and drainage of agricultural water, it cannot be considered a reduction or exemption of the transfer income tax under the said Act.

[2] Article 4 (6) of the former Enforcement Decree of the Special Rural Development Tax Act (amended by the Presidential Decree No. 15976 of Dec. 31, 198) which provides for special rural development tax subject to non-taxation refers to the Act on the Regulation of Tax Reduction and Exemption, which was in force at the time of July 1, 1994, the enforcement date of the same Enforcement Decree, and Article 4 (7) of the same Enforcement Decree provides that special rural development tax subject to non-taxation under Article 4 (1) of the former Enforcement Decree of the Special Rural Development Tax Act (amended by the Presidential Decree No. 15976 of Dec. 31, 1998) shall be subject to non-taxation reduction and exemption under Article 4 (7) of the former Enforcement Decree of the Special Rural Development Tax Act (amended by the Enforcement Decree No. 15966 of Dec. 31, 1993). Thus, the same provision provides that special rural development tax subject to non-taxation reduction and exemption under Article 14 (7) of the former Enforcement Decree.

[1] Articles 197, 198, and 206 of the former Local Tax Act (amended by Act No. 5598 of Dec. 28, 1998), Article 63(1) of the former Regulation of Tax Reduction and Exemption Act (amended by Act No. 5584 of Dec. 28, 1998) (see current Article 77(1) of the Restriction of Special Taxation Act), Article 4(1)1 of the former Enforcement Decree of the Special Rural Development Tax Act (amended by Presidential Decree No. 15976 of Dec. 31, 1998), Article 4(1)4 of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 15976 of Dec. 31, 1998) / [2] Article 4(6) of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 15976 of Dec. 31, 198; Presidential Decree No. 47(196) of the former Regulation No. 197(14)

[2] Supreme Court Decision 97Nu1587 delivered on December 26, 1997 (Gong1998Sang, 438), Supreme Court Decision 97Nu18516 delivered on July 24, 1998 (Gong1998Ha, 2257), Supreme Court Decision 97Nu14415 delivered on May 12, 200 (Gong2000Ha, 1439), Supreme Court Decision 99Du2444 delivered on October 10, 200 (Gong200Ha, 2353)

Korea Agricultural and Rural Infrastructure Corporation (Attorney Kim Jong-jin, Counsel for the plaintiff-appellant)

the director of the tax office of Western

Seoul High Court Decision 2000Nu3384 delivered on October 19, 2000

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

1. Where capital gains tax is reduced or exempted pursuant to Article 63(1) of the Regulation of Tax Reduction and Exemption Act (wholly amended by the Restriction of Special Taxation Act, Act No. 5584, Dec. 28, 1998), land subject to taxation of farmland tax is directly cultivated and used for directly cultivating and draining, and thus, land subject to taxation of special rural development tax pursuant to Article 4(1)1 of the former Enforcement Decree of the Restriction of Special Taxation Act (wholly amended by the Presidential Decree No. 15976, Dec. 31, 1998) is limited to land used for directly cultivating and subject to taxation of farmland tax, so land such as ditches, waterway, etc. not directly used for cultivating crops even if it is used for supplying agricultural water and draining, it cannot be subject to exemption from special rural development tax even if the capital gains tax, etc. is reduced or exempted pursuant to Article 63(1) of the Restriction of Special Taxation Act.

According to the records, since the land in this case cannot be exempt from special rural development tax pursuant to the legal principles as seen earlier because it constitutes all or several roads, the judgment of the court below to the same purport is reasonable, and there is no violation of law regarding the interpretation of farmland as alleged in the grounds of appeal

2. The "Act on the Regulation of Tax Reduction and Exemption" under Article 4 (6) of the Enforcement Decree of the Act on the Regulation of Tax Reduction and Exemption, which provides for special rural development tax, means the Act on the Regulation of Tax Reduction and Exemption, which was enforced at the time of July 1, 1994, which was the enforcement date of the original Enforcement Decree, and Article 4 (7) of the Enforcement Decree provides that even if the Act on the Regulation of Tax Reduction and Exemption, which was enforced at the time of July 1, 1994, is subject to the transitional measures under Article 16 (3) of the Addenda of the above Regulation of Tax Reduction and Exemption Act, special rural development tax shall be exempted only for the same purpose as the tax reduction and exemption provided for in each subparagraph of Article 4 (6) of the Enforcement Decree (see, e.g., Supreme Court Decisions 97Nu1415, May 12, 200; 97Nu1587, Dec. 26, 1997).

The decision of the court below to the same purport is just, and since Article 4 (7) of the Enforcement Decree of the Special Rural Development Tax Act newly prescribes the objects of non-taxation separate from paragraphs (1) through (6) of the same Article, the plaintiff's assertion that no special rural development tax is imposed on the expropriation of land within the area approved and announced before December 31, 1993 under Article 16 of the Addenda of the Regulation of Tax Reduction and Exemption Act shall

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

Justices Park Jae- Jae (Presiding Justice)