Where real estate is transferred due to exchange, the transfer value shall be calculated.

Even if the cause of the transfer is the exchange, the transfer is the real estate transferred by the exchange, and its transfer value should be based on the standard market price of the transferred real estate, and it is not based on the standard market price of the real estate transferred by the exchange.

Article 23 (4) of the former Income Tax Act (amended by Act No. 4661 of Dec. 31, 1993)

[Plaintiff-Appellant] Plaintiff 1 and 1 other (Law Firm Gyeong, Attorneys Lee Dong-young et al., Counsel for plaintiff-appellant)

[Defendant-Appellee] Plaintiff 1 et al.

The Head of the Maternization Tax Office

Seoul High Court Decision 93Gu19278 delivered on February 16, 1994

The part of the judgment below against the defendant shall be reversed, and the case shall be remanded to the Seoul High Court.

We examine the grounds of appeal.

According to the reasoning of the judgment of the court below, on November 11, 1991, the plaintiff entered into a contract with the non-party 4,535 square meters of forest land ( Address 2 omitted) prior to 1,200 square meters ( Address 1 omitted) owned by the plaintiff on November 11, 1991, and completed the registration of transfer of ownership based on each of the above lands on the 19th day of the same month. The appraisal price of the land owned by the plaintiff at the time of the above exchange is KRW 838,80,800, the appraisal price of the land owned by the non-party 216,940,00, the appraisal price of the land owned by the non-party corporation is KRW 213,375,00, the officially announced land price is KRW 45,350,000, the price difference of the land donated by the non-party 300,000, the price difference of the land at the time of transfer should be the exchange contract for the non-party corporation.

However, even if the cause of transfer is an exchange, since the transfer is a real estate that is transferred by an exchange, its transfer value shall be based on the standard market price of the real estate that is transferred, and it shall not be based on the standard market price of the real estate that is transferred by the exchange (see Supreme Court Decision 91Nu1424 delivered on Nov. 12, 191).

Therefore, in calculating gains from the transfer of this case, the judgment of the court below is erroneous in the misapprehension of legal principles as to the transfer value, which affected the conclusion of the judgment, on the basis of the officially announced value of the land transferred through the exchange, without based on the officially announced value of the land to be transferred.

Therefore, without examining the defendant's remaining grounds of appeal, the judgment of the court below is reversed, and the case is remanded to the court below for a new trial and determination. It is so decided as per Disposition by the assent of all participating Justices.

Justices Yoon Young-young (Presiding Justice)