Unlike subject to heavy taxation under the Local Tax Act, entertainment bars subject to imposition of individual consumption tax do not have separate restrictions on the facilities and scale of business.

Acquisition tax and entertainment bar business subject to heavy taxation under the Local Tax Act are imposed only when the area of business has a certain structure and scale, and the Individual Consumption Tax Act does not separately impose restrictions on the scale, structure, facilities, etc. of entertainment bar business subject to individual consumption tax, so it is legitimate to impose individual consumption tax and disposition.

Article 1 of the Individual Consumption Tax Act (Taxable Object and Tax Rate)

2016Guhap74989 Revocation of Disposition of Imposing individual consumption tax

(m) Three persons outside the ZZ:

Y. One other than the director of the tax office

March 3, 2017

March 24, 2017

1. All of the plaintiffs' claims are dismissed.

2. The costs of lawsuit are assessed against the plaintiffs.

Cheong-gu Office

Each individual consumption tax and education tax imposition disposition shall be revoked in the list of the individual consumption tax and education tax imposition imposed by the Defendants against the Plaintiffs.

1. Details of the disposition;

A. Each workplace operated by the plaintiffs

1) The Plaintiff Co., Ltd. (hereinafter referred to as “Plaintiff Co., Ltd.”) has registered the business with the trade name, 'OOO-type SO-type SO-type SO-type SO-type place of business (hereinafter referred to as “OO-type first place of business”) from October 13, 2014, 'OOO-type SO-type SO-type SO-type and type of business with the trade name, 'OOO-type and type of business'-type and 'O-type and type of business from August 20, 2012, 'OO-type'-type place of business (hereinafter referred to as “second place of business”) with O-type O-type O-type place of business from around August 20, 2012 to 'OO-type'-type place of business (hereinafter referred to as “second place of business”) and carries out each business.

2) The Plaintiff Co., Ltd. (hereinafter referred to as “Plaintiff Co., Ltd.”) registered the business with the trade name of 'OOOO Dried OO Dried OO Dried OO' at the place of business located in OO-gu from October 13, 2014 (hereinafter referred to as “third place of business”), as 'OOO DriedO DriedO', 'food / hod', 200, 200 from June 15, 2014, from OOO-Gu 22-oO's place of business (hereinafter referred to as “4 place of business”) to change 'OO Dried O DriedO' to 'O', 'O' and 'business registration', 'business registration', and 'business registration'.

3) On May 1, 2012, Plaintiff AssociationO Co., Ltd. (hereinafter referred to as “Plaintiff AssociationO”) registered its business from around May 1, 2012 to OOOOO-type place of business located on the first floor above OOOOOOOS hotel (hereinafter referred to as “previous 5 place of business”) and operated its main store, and opened its main store from around June 21, 2013 as “OOOOOO ship shipping store”, and opened its business as “other restaurant/other restaurant business” (hereinafter referred to as “5 place of business”).

4) On November 5, 2014, the Plaintiff Co., Ltd. (hereinafter referred to as the “Plaintiff DOOOOO”) is a business place located in OOOOO-gu 5 (hereinafter referred to as the “6 business place”) from around November 5, 2014, with the trade name of “OOOOO-type”, and the type of business is a restaurant business (other main offices).

(b) Imposition of individual consumption tax and education tax;

The defendants were subject to imposition of individual consumption tax and education tax (hereinafter "each disposition of this case") on the plaintiffs on the grounds that each of the business places of this case constitutes "the entertainment tavern" under the Individual Consumption Tax Act, and "the list of imposition of individual consumption tax and education tax".

(c) Procedures of the previous trial;

1) Plaintiff OOO filed an appeal with the Tax Tribunal on March 7, 2016 regarding the imposition of individual consumption tax, etc. on the first and second workplaces, but was dismissed on June 9, 2016.

2) On March 7, 2016, Plaintiff OOO store filed an appeal with the Tax Tribunal on the imposition of individual consumption tax, etc. on the third and fourth businesses, but was dismissed on June 9, 2016.

3) Plaintiff clubO filed an appeal with the Tax Tribunal on May 10, 2016 on the imposition of individual consumption tax, etc. on the five business places, but was dismissed on July 21, 2016.

4) On November 13, 2015, Plaintiff OOOOOOO was requested to the Board of Audit and Inspection on November 13, 2015, but was dismissed on July 12, 2016.

[Reasons for Recognition] Facts without dispute, Gap evidence 1 through 11, Eul evidence 1 (including branch numbers, if any; hereinafter the same shall apply) and the purport of the whole pleadings

2. Whether each of the dispositions of this case is legitimate

A. The plaintiffs' assertion

1) In order to constitute an entertainment drinking house, a place where individual consumption tax is imposed, it is the principal business type of a place of business where customers can dance, and a dance hall should be installed separated from guest seats in the corresponding size.

1) Of the above list, the notified tax amount shall be the sum of the individual consumption tax and education tax amount attributed to each corresponding month, whichever is the original unit.

The plaintiffs play the main business form in each workplace of this case that provides customers with a place where they can enjoy by reproducing the outlines of the 1980s and the 1990s, and does not have the main business form so that they can enjoy dancing (Although some customers enjoy dancing within the workplace, they cannot be viewed that the main business type of each workplace of this case can allow customers to enjoy dancing).

Although there is a space in which customers can dance within the 2 through 5 business places, the space is very narrow compared to the size of the relevant business place, and it is difficult to view it as a dance hall because it is not proper to distinguish it from the zone in which a table seat is installed. In particular, no space is provided for dancing in the 1 and 6 business places (the mere fact that lighting equipment or sound facilities are installed in each business place of this case cannot be viewed as having a dance hall in each business place of this case).

2) The purpose of the Individual Consumption Tax Act imposes a high rate of individual consumption tax is to restrain high-priced acts, so the "taxable pleasure place, which is the place subject to individual consumption tax," which is the place subject to imposition of individual consumption tax, should be interpreted to be limited to cases for high-priced acts. ① Admission fees per person of each workplace of this case is limited to KRW 5,00 among liquor, KRW 10,000 among weekends, and KRW 10,000 among weekends, and the entrance fee includes the remaining amount of drinking water or beer, and the entrance fee is a low level of drinking water and alcoholic beverages sold within each workplace of this case, ② The establishment of this case is a sound space for providing a high rate of harmony between generations by means of medium of past figures, and each workplace of this case does not constitute "taxable pleasure place" as referred to in the Individual Consumption Tax Act.

B. Relevant statutes

Attached Table 2 shall be as stated in the relevant statutes.

C. Determination

1) First, we examine whether each of the instant establishments constitutes entertainment taverns which are taxable entertainment places under the Individual Consumption Tax Act.

A) Article 1(1) of the Individual Consumption Tax Act provides that "the individual consumption tax shall be imposed on specific goods, admission to specific places, eating, drinking, and drinking at specific places, and business activities at specific places." Article 1(4) provides that "the place where the individual consumption tax is imposed on the taxable entertainment places and their tax rates (the taxable entertainment places) and the tax rates are as follows: "10/100 of the fee for entertainment and food for foreigners, exclusive entertainment and food for foreigners, and other similar places: Article 1(12) of the Enforcement Decree of the Individual Consumption Tax Act delegates matters necessary for the determination of taxable entertainment places and entertainment and food for foreigners." Article 2(3) of the Enforcement Decree of the Individual Consumption Tax Act provides that "other similar places" means places where business is actually similar to entertainment and food for foreigners under the Enforcement Decree of the Food Sanitation Act.

Meanwhile, Article 21 Item 8 (d) of the Enforcement Decree of the Food Sanitation Act provides that "the business of cooking and selling alcoholic beverages mainly on the basis of "the business of cooking and selling alcoholic beverages" is "the business of employing entertainment workers or installing entertainment facilities and customers are allowed to sing or dance," and Article 22 (2) of the Enforcement Decree of the Food Sanitation Act provides that "the term "the business of providing entertainment facilities" means dance halls installed to enable workers engaged in entertainment or customers to dance."

In full view of the above provisions, whether a taxable entertainment place constitutes an entertainment bar under the Enforcement Decree of the Food Sanitation Act, namely, ① a business of cooking and selling alcoholic beverages, ② a business of employing entertainment workers or a dance hall is installed, ③ customers are determined depending on whether they are allowed to sing or dance.

B) In full view of the purport of the entire pleadings, the following facts are recognized in light of Gap evidence Nos. 8 through 10, 12 through 17, Eul evidence Nos. 2 through 12, and 16 through 22.

(1) In each of the instant workplaces, alcoholic beverages are mainly sold, and foods and beverages are also cooked and sold.

(2) The facilities, structure, and specific types of business of each of the instant workplaces are as follows.

(a) 1 and 2 workplaces;

① At the first place of business, there is a space for customers to dance, a DNA stuff, a sound system, and a special lighting. At each site verification survey conducted between 23:00 and 24:00 on May 22, 2015, and 17:0 and 18:00 on July 13, 2015, the customer’s dancing was confirmed in the above space. The photograph taken therefrom also shows that the customer is dancing in the above space.

② At the on-site inspection conducted around 21:00 on October 2, 2015 with respect to a second place of business, it is confirmed that the second place of business has a space, dumping, sound equipment, special lighting, etc. which allow customers to dance at the second place of business. According to photographs taken therefrom, it is confirmed that customers are dancing in the foregoing space.

(B) 3 and 4 workplaces;

① At the on-site inspection conducted between 21:00 and 23:00 on May 18, 2015, it was confirmed that the third place of business had a space where customers can dance, dicestuff, sound equipment, special lighting at the third place of business. Meanwhile, the report prepared by police officers belonging to the Seoul OOO Police Station dispatched to the third place of business on September 30, 2013 and around 00:14 on November 6, 2013 upon receipt of the 112 report, on September 30, 2013, around 00:14, and around 0:49 on November 6, 2013, music has a large amount of music inside the third place of business. The ceiling has a string, and 30 customers drink and dance in music under the circumstances of kiding.

② At the on-site inspection conducted between July 9, 2015 and July 24, 2015 with respect to a 4-site establishment, customers were confirmed to have a space where the 4-site establishment can dance, DNA, sound equipment, and special lighting at the 4-site establishment. In addition, the 4-site employee's OO on July 24, 2015 stated that "customers are danced mainly on the 1st floor, and are nived in the second floor in the second floor, the 2-story employee's OOOO on July 10, 2015." The 4-site employee's OO on the 4-site representative director's OOO on the 1st floor and the customer's response.

(C) 5 workplaces

(1) Customers visiting a fifth workplace are keeping things in custody after paying admission fees, drinking by entering them, or dance in line with music. The photographs of the fifth workplace confirmed by the head of the Defendant OOO head of the agency at the time when the decision on objection against each disposition imposing individual consumption tax, etc. on the fifth workplace is made (the pictures attached to the fifth workplace in which the customers posted on the Internet Blouse) are confirmed to have dancing by many visitors at the fifth workplace in which lighting equipment and sound facilities are installed, and the photographs and drawings of the fifth workplace in which the PlaintiffOO submitted are installed to enable customers to dance.

② Plaintiff O voluntarily reported and paid the individual consumption tax for the previous five business places from May 2012 to May 2013. However, after opening the five business places around June 2013, Plaintiff O voluntarily reported and paid the individual consumption tax for the five business places after January 2015.

③ The head of the Busan Metropolitan City Shipping Unit imposed each property tax for 2014 and for 2015 on a corporation with the first floor above the above underground level as a property tax under the Local Tax Act on a high-class recreation center (an entertainment bar business place: an entertainment bar business place subject to permission under the Food Sanitation Act, which has a dancing space separated from guest seats and has a dance room for customers) which is subject to heavy taxation on the ground that the above first floor area below the property tax is subject to heavy taxation under the Local Tax Act.

(d) Six workplaces; and

On May 22, 2015, between 23:00 and 24:00 on each site inspection conducted between 17:00 on July 13, 2015 and 18:00 on each site inspection conducted on each part, it was confirmed that there is a space, DNA stuff, sound system, special lighting, etc. prepared to enable customers to dance at the 6th workplace, and that customers have danced in the above space.

C) In light of the above facts, ① sales at each of the instant workplaces is mainly alcoholic beverages, ② entertainment facilities are installed in each of the instant workplaces; ③ customers entering each of the instant workplaces are allowed to dance in the entertainment facilities installed therein. Therefore, it is reasonable to deem that each of the instant workplaces constitutes entertainment taverns falling under the entertainment entertainment places falling under the entertainment entertainment places under the Individual Consumption Tax Act.

D) Meanwhile, under the premise that the Supreme Court precedents on whether the subject matter of the property tax is an entertainment drinking house under the Local Tax Act shall also be applied to this case, the individual consumption tax should be imposed, taking into account the area occupied by a dance hall installed separately from the guest seat in the relevant place of business, or the individual consumption tax should be imposed only when the principal business type allows customers to dance.

On the other hand, acquisition tax is imposed only on entertainment taverns with a certain structure and size, and property tax is imposed on entertainment taverns under the Food Sanitation Act, while individual consumption tax is imposed on the Individual Consumption Tax Act as well as on the structure and scale of entertainment taverns, it is difficult to view that the Supreme Court precedents on whether entertainment taverns subject to property tax and property tax under the Local Tax Act should be applied as it is in this case, since entertainment bar is subject to permission under the same Act, and it is difficult to view that the Supreme Court precedents on whether entertainment taverns subject to property tax and property tax under the Local Tax Act are entertainment taverns subject to entertainment bar are subject to permission under the same Act. Accordingly, the plaintiffs' assertion on different premise is not acceptable.

2) Next, we examine the assertion that each of the instant establishments does not constitute a taxable entertaining place in light of the intent of the Individual Consumption Tax Act.

① As seen earlier, a place where an entertainment drinking house is actually similar to an entertainment drinking house under the Enforcement Decree of the Food Sanitation Act, i.e., a place where an individual consumption tax is imposed, and whether it constitutes a sound space is irrelevant to the imposition of the individual consumption tax. ② Since not only the safry goods but also the objects of taxation of the Individual Consumption Tax Act include private goods such as guns for hunting, small automobiles, oil, etc., and thus, they cannot be interpreted as not subject to the individual consumption tax solely on the basis that they are the low level of alcoholic beverages and alcoholic beverages sold in the place of business. Accordingly, the Plaintiffs’ assertion on this part cannot be accepted.

3) Sub-determination

Each of the instant business places constitutes a taxable entertainment place under the Individual Consumption Tax Act, and thus, each of the instant dispositions imposing individual consumption tax on entertainment, eating and drinking at each of the instant business places is lawful.

3. Conclusion

Therefore, the plaintiffs' claims are dismissed in entirety as it is without merit. It is so decided as per Disposition.