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The judgment below
The remainder, excluding the dismissed part, shall be reversed and this part of the case shall be remanded to the Seoul High Court.
Reasons
The grounds of appeal are examined.
1. Article 81-4 of the former Framework Act on National Taxes (amended by Act No. 9911, Jan. 1, 2010; hereinafter the same) provides that “Tax officials shall conduct tax investigation to the minimum extent necessary for appropriate and fair taxation and shall not abuse their right of investigation for any other purpose.”
In addition, Article 2 Paragraph (2) provides that "no tax official shall conduct a reinvestigation on the same item of taxation and the same taxable period unless it falls under any of the following subparagraphs." In addition, where a reinvestigation is permitted under each subparagraph, "where there is clear evidence to acknowledge the suspicion of tax evasion" (Article 1), "where it is necessary to conduct an investigation on the other party to a transaction" (Article 2), "where there is error in relation to two or more business years" (Article 3), "where an objection or a request for examination or a request for adjudgment is deemed reasonable and an investigation is conducted according to the decision of necessary disposition" (Article 4), and "other cases similar to subparagraphs 1 through 4, as prescribed by Presidential Decree (Article 5).
The tax investigation should be conducted within the minimum necessary scope for appropriate and fair taxation, and further re-audit of the same item and the same taxable period may seriously infringe the taxpayer's freedom of business and legal stability as well as may lead to the abuse of the right to tax investigation. Therefore, it is necessary to prohibit except in exceptional cases where it is clearly contrary to the principle of fair taxation.
In the same purport, the Framework Act on National Taxes strictly limits the cases where re-audit is exceptionally permitted, and the re-audit of the same item and the same taxable period is prohibited in principle if the requirements listed are not met.