Criteria for determining whether a nonprofit corporation subject to non-taxation of acquisition tax, etc. is property directly used for its business

Whether a non-profit corporation prescribed in subparagraph 1 of Article 107 and Article 184 (1) subparagraph 3 of the Local Tax Act directly uses property for its business is determined based on the actual use relationship, and the provisions of the articles of incorporation are only one reference material in determining this.

Article 107 subparagraph 1 of the Local Tax Act, and Article 184 (1) subparagraph 3 of the Local Tax Act

[Defendant-Appellee] Defendant 1 and 3 others

Attorney Kim Jong-young, Counsel for the defendant-appellant

Seoul High Court Decision 84Gu1190 delivered on December 17, 1985

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal are examined.

According to the reasoning of the judgment below, the court below held that the plaintiff was a school juristic person established with the approval of the President Lee Jong-sung, the purpose of which is to conduct higher education, and established and operated Han-sung, and that the above university secured a site until June 1982 and had its affiliated hospital established until the end of March 1983, since the above university secured a medical science and the construction of the attached hospital until the end of June 1982, the above university was established. Thus, the plaintiff did not directly acquire the land of the Hansung Hospital established and operated by the Family Foundation for the purpose of establishing the attached hospital under the above authorization conditions, and operated the land of the above medical corporation, the building and the facilities of the hospital, and it did not constitute a ground for education for the students of the above Chuncheon, and since the above 20th anniversary of March 1, 1983, the judgment of the court below was just and there was no violation of the law by the defendant as stipulated in Article 17 subparagraph 14 of the Local Tax Act, and since March 1, 1986 of the above.

The issue is whether a non-profit entrepreneur under Article 107 subparagraph 1 of the Local Tax Act and Article 184 (1) subparagraph 3 of the Local Tax Act uses the property directly for the business is the non-profit entrepreneur, the issue is that if the non-profit entrepreneur is a juristic person, the hospital of this case is not the basic property for education, but the basic property for profit under the articles of incorporation of the Plaintiff corporation, and it cannot be deemed that it is directly used for the business. However, in light of the legislative intent and the provisions of the proviso of Article 107 of the Local Tax Act, which prescribe the non-taxation of acquisition tax, etc. according to the classification of use and the provisions of Article 107 of the Local Tax Act, the issue of whether the non-profit juristic person prescribed in each of the above laws uses the property directly for the business shall be determined based on the actual relation

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.

Justices Kim Jong-sik (Presiding Justice)