The appeal is dismissed.

The costs of appeal are assessed against the Plaintiff.

The grounds of appeal are examined.

1. As to the acquisition value of the first and second sites of this case

A. Article 97(1)1(b) of the former Income Tax Act (amended by Act No. 8144, Dec. 30, 2006; hereinafter the same) provides that where the acquisition value, one of the necessary expenses deducted from the transfer value, shall be based on the “actual transaction value required for acquisition” in calculating gains on transfer, if it is impossible to confirm the actual transaction value at the time of acquisition, it shall be based on the transaction example, appraisal value, or conversion value as prescribed by the Presidential Decree.

In addition, the Enforcement Decree of the former Income Tax Act 2008 following its delegation.

2. The same shall apply to those prior to the amendment by Presidential Decree No. 20618, hereinafter.

Article 163(12) of the former Income Tax Act provides that “The value of transaction example, appraisal value or conversion value prescribed by the Presidential Decree” means the value under Article 176-2(2) through (4). The main sentence of Article 176-2(3) of the former Enforcement Decree of the Income Tax Act provides that “where the transfer value or acquisition value is estimated, the value shall be calculated by applying each of the following methods in sequential order.” Article 163(12)1 of the former Enforcement Decree provides that “where there is an example of sale of assets having the identity or similarity with the relevant assets within three months before and after the transfer date or acquisition date, the value (sale case value)” and subparagraph 2 of Article 163 provides that “where there is any appraisal value which is appraised by two or more appraisal corporations on the relevant assets within three months before and after the transfer date or acquisition date (limited to those whose appraisal base date is within three months before and after the transfer date or acquisition date respectively), the average value of such appraisal value,” and subparagraph 3 of the same Article.

In calculating transfer margin, the actual transaction value which is the basis for the calculation of transfer margin is objective.