Cho High Court Decision 2010Du0488 ( October 25, 2011)

A small or medium start-up enterprise cannot be deemed to be a newly established corporation by converting a private enterprise into a corporation.

The plaintiff's main business is the main business of the private company operated by the major shareholder at the time of the plaintiff's establishment due to the cargo hold facility business of LNG vessel, and the cargo hold facility business is a general ship's main business, and it is difficult to view that the business of the private company operated by the major shareholder is a corporation newly established by converting the private company operated by the major shareholder into a corporation. Therefore, the plaintiff constitutes a small

2011Guhap685 Revocation of Disposition of Imposing Corporate Tax

AAA, Inc.

Head of the tax office

May 31, 2012

June 28, 2012

1. The defendant was employed on November 13, 2009 for the plaintiff.

(a) each disposition imposing 00 won of the corporate tax for the year 2004 and 000 won of the corporate tax for the year 2007; and

B. All of the disposition imposing corporate tax of KRW 000 for the year 2005 and the disposition imposing corporate tax of KRW 000 for the year 2006 are revoked.

2. The plaintiff's remaining claims are dismissed.

3. The costs of lawsuit shall be borne by the defendant.

Paragraph (a) of Paragraph (a) of the Disposition No. 1 and the defendant of November 13, 2009 shall revoke all the imposition of corporate tax of KRW 000 for the plaintiff of 2005 and corporate tax of KRW 00 for the year 2006.

1. Details of the disposition;

A. On March 2, 2002, the Plaintiff is a company established for the purpose of manufacturing, selling, and installing various ship cabin supplies. At the time when the Plaintiff was established, and the Plaintiff’s director ChoB, operated a shipbuilding construction business with the trade name “CC vessel equipment” (hereinafter “CC vessel equipment”).

B. The Plaintiff filed a corporate tax return from 2002 to 2007, and filed a corporate tax return for a small or medium start-up start-up enterprise of KRW 000 in the 2004, KRW 000 in the 2005, and KRW 000 in the 2006, and KRW 000 in the 2007.

C. Accordingly, on November 13, 2009, the Defendant: (a) applied special tax reduction or exemption (30%) for small and medium enterprises, other than the tax reduction or exemption (50%) for small and medium start-up enterprises, on the ground that the Plaintiff succeeded to the business of CCB, a major shareholder; (b) and (c) corporate tax of 00 won for the Plaintiff in 2004 and 000 won for the corporate tax for the year 2005 (including 000 won for corporate tax imposed on the Plaintiff on the special bonus, non-deductible and non-deductible and non-deductible that were paid without the payment provision as entertainment expenses for the business partners); and (d) corporate tax of 000 for the year 206 for the corporate tax (including the corporate tax imposed on the non-deductible and non-deductible that was calculated as entertainment expenses for the special bonus, non-deductible and business partners that were paid without the payment provision, and (e) the corporate tax imposed on the Plaintiff each of the instant tax (hereinafter referred to as “instant disposition”).

D. Accordingly, the Plaintiff filed a request with the Tax Tribunal on January 27, 2010, and was dismissed on October 25, 201.

[Ground of Recognition] The non-satched facts, Gap evidence 1, 2 (including household numbers, hereinafter the same shall apply), and Eul evidence 1 to 5, and the purport of the whole pleadings

2. Whether the disposition is lawful;

A. The plaintiff's assertion

The Plaintiff andCC’s vessel equipment are separate enterprises, and the Plaintiff does not establish a new legal entity by converting the business operated by ChoBB into a legal entity. Therefore, the Plaintiff is illegal, even though it constitutes a small and medium start-up enterprise, and the instant disposition on a different premise is unlawful.

B. Relevant statutes

It is as shown in the attached Form.

C. Determination

1) Article 6 (4) of the former Act on Special Cases concerning Tax Restrictions (amended by Act No. 7322 of Dec. 31, 2004, hereinafter the same applies) provides that "in applying the provisions of paragraphs (1) through (113), any of the following shall not be deemed a business start-up, and subparagraph 2 of the subparagraph provides that "if a new corporation is established after converting a business run by a large owner into a corporation, it shall not be deemed a business start-up." Meanwhile, Article 2 (1) of the former Enforcement Decree of the same Act (amended by Presidential Decree No. 20262 of Sep. 10, 207, 2007, hereinafter the same) provides that "a start-up under Article 2 (1) of the former Enforcement Decree of the Act on Special Cases concerning Tax Restrictions (amended by Act No. 7322 of Dec. 31, 2004, hereinafter the same shall apply) shall be deemed to be a new start-up of a small or medium enterprise not falling under any of the following subparagraphs.

2) 살피건대， 갑 제4 내지 29호증， 을 제7， 8， 11， 12호증의 각 기재，증인 진덕수 의 증언에 변론 전체의 취지에 의하여 인정되는 다음과 같은 사정， 즉 ① 원고가 설립 되던 당시 발기인 조BBB가 자본금 000원 중 000원을，발기인 윤DD 이 000원을， 발기인 장EE가 000원을 현금으로 출자하였던 점，② 원고 의 주주는 조BBB(75%)， 윤DD(25%)， 장QQ(5%)로 구성되어 있고， 설립당시 윤DD이 대표이사로， 조BBB， 장QQ가 이사로 취임하였던 점，③ 원고가 2002. 3. 2. 설립된 이 후에도 CC선박설비는 2002. 12. 31. 폐업하기 전까지 독자적으로 영업을 계속하여 2002년 매출액은 8，038，164，840원에 이르렀고， CC선박설비는 원고에게 000원의 외주공사를 하도급 주기도 하였던 점，④ 원고의 본점 소재지는 CC선박설비의 주소와 같으나， 원고의 사업은 주로 선박의 조선이나 수리장소에서 설치공사를 하는 것이기 때문에 원고는 작업 현장이 있는 장소인 거제시나 울산에 직원들의 기숙사로 아 파트나 토지를 취득하였으며， 위 본점 소재지에는 원고와 CC선박설비뿐만 아니라 'QQQ'라는 다른 계열사도 함께 있었던 점，⑤ 설립 당시 원고가 영위하던 주요 사 엽은 LNG 선박의 화물창 시설사업이었던 점[원고의 2002년 매출액 000원 중 LNG 선박의 화물창 시설공사를 도급받았던 주식회사 한국III(이하 '한국III'이라 한다)，주식회사 FFFF， GGG중공업 주식회사로부터 발생한 매출액의 합계는 000원이다]，⑥ 반면에 당시 CC선박설비가 영위하던 주요 사업은 일반 선박의 선실 시설사업으로서 그 주요 매출처는 주식회사 HHHH정공(이하 'HHHH정공'이라 한다)이었고(원고의 2002년 매출액 0000원 중 HHHH정공에 대한 매출액은 0000원이다)， C선박설비는 LNG 선박의 화물창 시설사업을 중도 에 포기하여 원고가 설립되던 당시에는 이를 영위하지 않고 있는 상태였던 점，⑦ 원고는 LNG 선박의 화물창 시설사업을 처음 시작하는 것이었기 때문에 이 사업 부분에 대한 경력자가 없어 원고의 직원을 선주인 JJJ중공업 주식회사(이하 'JJJ중공업'이라 한다)로 파견하여 공사용 도면에 대한 교육을 받고 설치용 도면 작성 업무를 수행하도 록 하는 내용으로 도급인 한국III과 공사계약을 체결하였고，원고의 작업시 JJJ중공업의 작업자를 직접 투입하여 같이 작업을 하면서 교육을 받기도 한 점 등을 종합하여 보면，비록 원고 설립시 CC선박설비의 종업원 94명 중 69명이 원고로 입사하였고，CC선박설비가 폐업하면서 거래처에 보낸 공문이나 원고의 인터넷 홈페이지에서 원고가 CC선박설비의 사업을 승계한다는 취지로 기재하였으며，CC선박설비의 폐업이후 원고의 매출이 크게 증가한 점 등을 감안하더라도，원고가 개인사업체였던 CC선 박설비가 법인으로 전환되어 새로이 설립된 법인에 해당한다고 보기는 어렵다.

3) Therefore, the part of the instant disposition in which the Defendant did not apply the tax reduction or exemption for a small or medium start-up enterprise, etc. under different premise, which exceeds 000 won in the imposition of corporate tax for the year 2004 and corporate tax for the year 2007, and exceeds 000 won in the imposition of corporate tax for the year 2005, and the part which exceeds 000 won in the imposition of corporate tax for the year 2006 is unlawful (the part which exceeds 00 won in the imposition of corporate tax for the year 2005 and corporate tax for the year 2006 without the payment provision of the instant disposition is lawful since it is irrelevant to the above tax reduction or exemption.

3. Conclusion

If so, the plaintiff's claim is based on the reasons within the above scope of recognition, and the remaining claims are dismissed as there is no reason, and it is so decided as per Disposition.