1. The plaintiff's claims against the defendants are all dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

Details of the disposition

From October 1, 2007 to January 16, 2015, the Plaintiff and C jointly run an entertainment tavern business under the trade name of “E” (former “E”) on the first floor of the same building from October 1, 2007 to June 27, 2013 with the trade name of “G” (hereinafter collectively referred to as “E”) in which each H is the nominal owner of the business.

On September 1, 2015, the chief prosecutor of the Seoul Central District Prosecutor's Office requested the director of the Seoul Central District Prosecutor's Office to file a tax complaint against the Plaintiff on the ground that "the Plaintiff is scheduled to prosecute as a violation of the Act on the Aggravated Punishment, etc. of Specific Crimes (tax) by confirming the business income tax, value-added tax, and individual consumption tax evasion while actually operating the key place of business from October 2007 to February 2, 2013."

The director of the Seoul Regional Tax Office conducted a tax offense investigation on the key place of business from September 16, 2015 to October 27, 2015, under which the Plaintiff and C had registered the relevant place of business under the name of H and distributed profits in the actual operation of the relevant place of business in the proportion of 7:3 shares. From 2007 to 2013, 15,490,279 total proceeds from supply from 2007 to 2013 to 18,202,870,00 won (total amount of income 53,138,690,000 - 18,202,870,000 - 19,45,541,000 won) by underreporting the sales of the previous reported income amount to the Plaintiff’s tax evasion, and notified the Defendants concerned.

On December 7, 2015, the director of the regional tax office of Korea imposed the total value-added tax of KRW 3,109,704,440 (including additional tax) on the Plaintiff from December 2, 2007 to December 1, 2013, and the total amount of individual consumption tax and education tax accrued from October 2007 to February 2013, and the additional tax of KRW 3,204,551,580.