The meaning of "land cultivated by oneself continuously for not less than 8 years until the date of transfer" under subparagraph 6 (d) of Article 5 of the Income Tax Act that provides for non-taxable income.

The term “land which has been cultivated by himself continuously for not less than 8 years until the time of transfer” under subparagraph 6 (d) of Article 5 of the Income Tax Act where no transfer income tax is levied” means the land actually used for farming as of the date of transfer regardless of its land category on the public register, and even if it is not actually cultivated, the form of the land shall not be the land in a state where the shape of the land can be used

Article 5 of the Income Tax Act, Article 14 (3) of the Enforcement Decree of the Income Tax Act, Article 5 (1) of the Enforcement Rule of the Income Tax

[Judgment of the court below]

head of Sung Dong Tax Office

Seoul High Court Decision 87Gu1280 delivered on April 29, 1988

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

We examine the grounds of appeal.

Article 5 subparagraph 6 (d) of the Income Tax Act provides that no income tax shall be imposed on the income accruing from the transfer of "land cultivated by himself for at least eight consecutive years until the transfer date, which is subject to the farmland tax." According to each provision of Article 14 (3) of the Enforcement Decree of the same Act and Article 5 (1) of the Enforcement Rule of the same Act, the land which he has cultivated continuously for at least eight years until the transfer date refers to the land actually used for farming as of the transfer date regardless of the land category in the public register, and even if the land is not actually cultivated as pointed out, the form of the land is not the land in which the farmland can be used for the farm. Thus, as the court below duly determined, if the Seoul Metropolitan Government subway Construction Headquarters stores materials for the construction of subway and piling stations from January 1, 1979 to December 1, 1982, this constitutes a land which has been cultivated continuously for at least eight years until the sale by the sale date, and thus, it does not constitute grounds for criticism in the original judgment.

Therefore, the appeal is dismissed, and the 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 Jong-dong (Presiding Justice)