[1] Whether the acquisition of real estate caused by division of property by divorce constitutes "acquisition through division of co-ownership right," which is subject to non-taxation of acquisition tax under Article 110 subparagraph 4 of the Local Tax Act (negative)

[2] Whether the registration of transfer of real estate caused by the division of property following the divorce constitutes "those subject to non-taxation of registration tax" under Article 128 of the Local Tax Act and "division of common property" under Article 131 (1) 5 of the same Act (negative)

[1] The "acquisition tax of real estate" under Article 105 (1) of the Local Tax Act is a kind of distribution tax imposed on the fact that the transfer of ownership of real estate is a transfer of ownership, and it is not imposed on the economic interest that will be gained by using, earning from, and disposing of the real estate. In the meantime, the "acquisition of real estate" under Article 105 (1) of the Local Tax Act refers to all cases of acquisition of real estate conducted in the form of transfer of ownership regardless of whether the ownership is actually acquired or not. In the meantime, tax laws and regulations under the principle of no taxation without the law should be interpreted in accordance with the language and text of the law unless there are special circumstances, and it is not allowed to expand or analogically interpret without reasonable reasons. Thus, the transfer of ownership of real estate through division of property under Article 839-2

[2] The registration tax is a tax imposed on the existence of the fact that the acquisition, transfer, change, or extinction of a property right or other rights is registered in the public register. Therefore, the registration of real estate transfer caused by division of property following divorce is a gratuitous succession acquisition, not included in the non-taxation of registration tax under Article 128 of the Local Tax Act, but does not constitute a division of co-owned property under Article 131(1)5 of the Local Tax Act.

[1] Articles 105(1) and 110 subparag. 4 of the Local Tax Act, Article 839-2 of the Civil Act, Article 18 of the Framework Act on National Taxes / [2] Articles 128 and 131(1)5 of the Local Tax Act

[1] Supreme Court Decision 88Nu919 delivered on April 25, 198 (Gong1988, 922) Supreme Court Decision 2000Du7896 delivered on June 28, 2002 (Gong2002Ha, 1848) Supreme Court Decision 2002Du9537 Delivered on January 24, 2003 (Gong2003Sang, 737)

Plaintiff

Nowon-gu in Seoul Special Metropolitan City

Seoul High Court Decision 2002Nu16179 delivered on April 11, 2003

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

1. The "acquisition tax of real estate" under Article 105 (1) of the Local Tax Act means all cases of acquisition of real estate in the form of transfer of ownership regardless of actual acquisition of ownership (see, e.g., Supreme Court Decisions 88Nu919, Apr. 25, 198; 2000Du7896, Jun. 28, 2002). Meanwhile, under the principle of no taxation without law, tax laws should be interpreted as a type of distribution tax imposed on the fact that the transfer of ownership of real estate is a requirement for taxation or non-taxation, and should not be interpreted extensively or analogically interpreted without reasonable grounds without any special reason (see Supreme Court Decision 2002Du9537, Jan. 24, 2003). Therefore, the transfer of ownership of real estate under Article 839-2 of the Civil Act does not fall under the category of "acquisition without tax exemption under Article 410 of the Local Tax Act."

In the same purport, it is proper that the court below determined that the Plaintiff’s acquisition of ownership of the real estate in this case as a division of property following divorce constitutes the acquisition of real estate under Article 105(1) of the Local Tax Act and does not constitute the acquisition through the division of co-ownership under Article 110 subparag. 4 of the Local Tax Act, and there

2. The registration tax is a tax imposed on the existence of the fact that the acquisition, transfer, change, or extinction of a property right or other rights is registered in the public book. Therefore, the registration of real estate transfer caused by division of property following divorce is a gratuitous succession acquisition, not included in the non-taxation of registration tax under Article 128 of the Local Tax Act, but does not constitute a division of co-owned property under Article 131(1)5 of the Local Tax Act.

In the same purport, the court below's decision that the plaintiff should pay local education tax in accordance with Article 131 (1) 2 of the Local Tax Act and Article 260-2 of the Local Tax Act is proper, and there is no error as alleged in the grounds of appeal.

3. Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing plaintiff.

Justices Zwon (Presiding Justice)