The plaintiff's claim is dismissed.

Litigation costs shall be borne by the plaintiff.

Details of the disposition

On April 17, 1990, the Plaintiff acquired ownership by inheritance of 26/125 of shares in Youngcheon-si C Forest Land 36,099 square meters (hereinafter “instant land”) from his father B.

The land of this case was awarded to E on January 27, 2015 in the procedure for compulsory auction by official auction by Daegu District Court D, and the procedure for registration of ownership transfer was completed on March 16, 2015.

On September 5, 2018, the Defendant imposed capital gains tax of KRW 6,395,030 on the instant land (hereinafter “instant disposition”) on the Plaintiff in 2015.

The Plaintiff dissatisfied with the instant disposition and filed an appeal with the Tax Tribunal on March 28, 2019, but the appeal was dismissed on September 5, 2019.

[Ground of recognition] Facts without dispute, Gap evidence Nos. 1, 2, Eul evidence Nos. 1, 2, and Eul evidence Nos. 1 and 2, and the purport of the whole argument of the plaintiff as to the purport of the whole argument of the plaintiff as to the land of this case is distributed to bond business operators, etc., and there are no economic benefits acquired by the plaintiff due to auction, and the plaintiff has no ability to pay capital gains tax since he/she

Judgment

Article 88 of the Income Tax Act provides that "The actual transfer of assets shall be made at a price by selling, exchanging, investing in kind in a corporation without relation to the registration or enrollment of the assets."

Therefore, even if the ownership of real estate is transferred by compulsory auction, it constitutes a transfer of assets subject to capital gains tax.

(See Supreme Court Decision 86Nu711 delivered on March 24, 1987). The Plaintiff asserts to the effect that the obligation to pay capital gains tax does not accrue since the compulsory auction procedure for the instant land did not have any economic benefits.

However, the land of this case was transferred to a third party due to a compulsory auction, and KRW 48,520,000 of the successful bid price was distributed to the creditors of the plaintiff.