Whether the acquisition tax and registration tax for the whole land are included in the object of exemption under Article 276 (1) of the former Local Tax Act in case where a person who wishes to construct or expand a new factory building in an industrial complex succeeds to his position from a person who purchased the land in an industrial complex and acquires the ownership for the first time by paying the remaining purchase price for the land (affirmative)

In light of the contents, legislative purport, legislative history, etc. of Article 276 (1) of the former Local Tax Act (amended by Act No. 7332 of Jan. 5, 2005), if a person who intends to build or extend a new factory in an industrial complex succeeds to his/her position from a person who purchased a parcel of land in an industrial complex and first acquires the ownership by paying the remaining purchase price for the parcel of land, it is reasonable to view that the acquisition tax and registration tax for the whole parcel of land are included in the objects of exemption under the

Article 276 (1) of the former Local Tax Act (amended by Act No. 732 of January 5, 2005)

Nowon-gu Co., Ltd. (Attorneys Park Jong-ho et al., Counsel for the plaintiff-appellant)

Gyeongnam-do Gun (Law Firm Geum River, Attorneys Kim Won-tae et al., Counsel for the plaintiff-appellant)

Busan High Court Decision 2006Nu5557 decided September 14, 2007

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

The grounds of appeal are examined.

Article 276 (1) (hereinafter "the provision of this case") of the former Local Tax Act (amended by Act No. 732 of Jan. 5, 2005) provides that "the real estate acquired by a person who intends to newly build or extend a building for factory, research facility, or pilot production within an industrial complex designated by the Industrial Sites and Development Act, an inducement area under the Industrial Cluster Development and Factory Establishment Act, and an industrial technology complex constructed by the Act on Special Cases concerning Support of Industrial Technology Complexes shall be exempted from the acquisition and registration taxes." In light of the contents, legislative purport, legislative history, etc. of the above provision, if a person who intends to newly build or extend a building for factory in an industrial complex succeeds to the status of a person who purchased the land in an industrial complex and first pays the remaining purchase price of the land in an industrial complex and acquires the ownership thereof, it is reasonable to deem that the acquisition and registration taxes (hereinafter "acquisition tax, etc.") for the whole land shall be included in the exemption

According to the reasoning of the judgment below, the court below acknowledged the following facts based on its adopted evidence. The plaintiff acquired the status of buyer from the non-party corporation corporation on September 25, 2002 as to the land in this case and the factory building 7,927.20 square meters on its ground until February 20, 2003, and acquired the registration of ownership transfer on the land in this case from the ○○ Local Industrial Complex Corporation on July 22, 2004. The court below determined that as long as the plaintiff acquired the land in this case within an industrial complex and extended the factory building on its ground, all of the land in this case, including the part of the land in the existing factory building, shall be exempted from acquisition tax, etc. under the provisions of this case.

In light of the above legal principles and records, although the above judgment of the court below was somewhat inappropriate in its reasoning, the conclusion that the whole land of this case is included in the subject of exemption from acquisition tax, etc. under the provisions of this case is just and acceptable. In so doing, contrary to the allegations in the grounds of appeal, there were no errors by misapprehending the legal principles on interpretation

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 on the bench.

Justices Lee Hong-hoon (Presiding Justice)