Notwithstanding the date of ownership on the register, whether capital gains tax shall be imposed on self-sufficient farmland for at least eight years (negative)

Any transfer income tax and defense tax thereon shall not be levied on any transfer income accruing from a transfer of farmland, the de facto depreciation of which for not less than eight years, notwithstanding the date of ownership on the register.

Article 5 subparagraph 6 (d) of the former Income Tax Act (amended by Act No. 4019 of Dec. 26, 198) (Article 5 subparagraph 6 (d))

Supreme Court Decision 84Nu423 decided Feb. 13, 1985 (Gong1985,440) 87Nu325 decided Jul. 7, 1987 (Gong1987,1348) 90Nu4082 decided Oct. 30, 1990 (Gong190,2469)

Plaintiff

Head of Donggsan Tax Office

Busan High Court Decision 91Gu3789 delivered on October 7, 1992

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

According to the reasoning of the judgment below, the court below acknowledged, based on macroficial evidence, that the plaintiff was continuously cultivated the land of this case as orchard for not less than 8 years on September 13, 1973 with the donation from his non-party's father and developed it as orchard and cultivated drilling, sublime, posium, and posium. On December 22, 1980, the plaintiff completed the registration of ownership transfer under the name of the plaintiff on July 26, 1988, and continued to cultivate the above land until the transfer by expropriation to the non-party Korea Land Development Corporation on July 26, 198. Accordingly, in light of the principle of substantial taxation or the purport of non-taxation provisions of the Income Tax Act, the court below's decision that the income from the transfer of the land of this case constitutes farmland as of July 26, 198, and therefore, it cannot be viewed that the court below's decision was without merit by comparing it with the above legal principles of Article 5 subparagraph 6 (d) of the Income Tax Act.

Therefore, the appeal is dismissed and all 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 Chocheon-sung (Presiding Justice)