Whether imposition of capital gains tax is legitimate because it does not constitute an organization deemed a corporation

The Plaintiff does not constitute an organization deemed a juristic person regardless of whether the Plaintiff satisfies the requirements prescribed in each subparagraph of Article 13(2) of the Framework Act on National Taxes. Therefore, the disposition of imposition of capital gains tax is lawful.

Article 13 of the Framework Act on National Taxes

Suwon District Court 2014Gudan1462 Revocation of Disposition of Imposing Capital Gains Tax

AA

00. Head of tax office

November 21, 2014

on January 23, 2015

1. The plaintiff's claim is dismissed.

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

The disposition of imposition of capital gains tax of KRW 303,579,490 (hereinafter referred to as the "disposition of this case") to the Plaintiff on November 1, 2013 by the former defendant working in office (hereinafter referred to as "the disposition of this case") shall be revoked.

1. Details of the disposition;

A. On February 1, 2007, the Plaintiff acquired and possessed an OO-dong 505-2 large 500.3 square meters (hereinafter “instant land”) from O-si from O-si by means of exchange for KRW 324,140,000, and completed the registration of ownership transfer on September 17, 2010, the Plaintiff transferred the instant land to BB Foundation, a foundation, and completed the registration of ownership transfer.

B. On November 1, 2013, the Plaintiff did not report the transfer income tax following the above transfer, and the Defendant decided and notified the Plaintiff of KRW 303,579,49, and KRW 490 of the transfer income tax for the year 2010. The Plaintiff filed an appeal with the Tax Tribunal, but was decided on April 8, 2014 by the Tax Tribunal to dismiss the appeal. The Plaintiff did not have any dispute as to the grounds for recognition, and the purport of the entire pleadings, as stated in the evidence No. 2 and 3, evidence No. 4-1, 2, and No. 4-1, 2, and 1.

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

1) On March 24, 1969, the Plaintiff was a church belonging to the CCC Maintenance Foundation, a foundation which obtained the establishment permission, and filed a report to the Defendant on December 22, 1997 as an organization deemed a corporation under Article 13(2) of the Framework Act on National Taxes. The Defendant issued the tax code certificate (O-O-O-OOO) to the Plaintiff, and the approval was granted to the Plaintiff as an organization deemed a corporation under Article 8(2) and (3) of the Enforcement Decree of the Framework Act on National Taxes. The Defendant issued the number (the number entered into the 89 substitute, but the number entered) granted to the “organization deemed a corporation” under Article 13(2) of the Enforcement Decree of the Framework Act on National Taxes at the request of the Plaintiff, on the ground that it does not constitute a “organization deemed a corporation” should be revoked. Therefore, the instant disposition should be revoked.

2) As long as the CCC General Maintenance Foundation, a foundation, is established pursuant to Article 32 of the Civil Act on March 24, 1969 and Article 4 of the Rules on the Establishment and Supervision of Non-Profit Corporations under the jurisdiction of the Ministry of Culture, Sports and Tourism and Cultural Heritage Administration, the Plaintiff is a church belonging to the CCC General Maintenance Foundation, which belongs to the CCC General Maintenance Foundation, with permission or authorization from the competent authority under Article 13 (1) 1 of

Since the instant disposition constitutes an unincorporated association, foundation, or any other organization registered with the competent authorities, it is unlawful to make the instant disposition on a different premise.

B. Relevant statutes

It is as shown in the attached Form.

C. Determination

1) Facts of recognition

(A) 1 May 2009, of the Seoul Special Metropolitan City Mayor’s preparation, entry in the permission of incorporation on May 1, 2009 is as follows: No. 136

- Date of permission: March 24, 1969

- Corporate Name: CCC General Maintenance Foundation

- Locations: OO-gu O6 O6 p. 00 076

- Representative: DD

- Contents: Permission to establish the above corporation pursuant to Article 32 of the Civil Code and Article 4 of the Regulations on the Establishment and Supervision of Non-Profit Corporations under the jurisdiction of the Ministry of Culture, Sports and Tourism

B) The entries in the registration number registration certificate on November 4, 1997 in the O market preparation are as follows: - the registration number is 3124-0***

- Registered Name: CCC EEcom Association

- Address: OO-dong 256-3

- Contents: Certification as above in accordance with the provisions of Article 41-2 of the Registration of Real Estate Act and the procedures for granting registration numbers to non-corporate associations, foundations and foreigners for real estate registration.

- Facts: This Certificate is not a document evidencing the entity's substance, but a document evidencing the organization's serial number, so it can only be used for real estate registration application.

C) On December 22, 1997, the entries in the tax code number issued by the defendant on December 22, 1997 are as follows.

- Tax code number: 134-89-0**

- Organization Name: EEE Association;

-Location: OO-gu O-dong 256-3

- Representative: Kim Jong-dae

D) The entries of the certificate belonging to July 9, 2010, of the president of the CCC General Maintenance Foundation, a foundation, are as follows:

- Document No. 12607-0581

- church name: CCC EE Association;

- church address: OOamamba-dong 256-3

- Contents: The fact that the above church does not have any dispute with the recognition of the church belonging to the Jung-gu Labor Association belonging to this religious order, Gap evidence 1 to 9, Gap evidence 4-1 and 2, and the purport of the whole pleadings;

2) We examine the first argument.

Article 13(2) of the Framework Act on National Taxes provides that "any organization other than an association, foundation, or other organization deemed a juristic person pursuant to paragraph (1), which meets certain requirements and obtains approval from the representative or the director of the competent tax office, shall also be deemed a juristic person and subject to the application of this Act and other tax-related Acts." As such, the Plaintiff can only recognize the fact that the Plaintiff submitted an application for business registration and received tax payment numbers (134-89-0***) from the Defendant, and the Plaintiff did not obtain the approval of the Plaintiff's representative or manager as a "organization deemed a juristic person upon application to the Defendant by the Plaintiff pursuant to Article 13(2) of the Framework

The plaintiff does not constitute "organization deemed a corporation under Article 13 (2) of the Framework Act on National Taxes, regardless of whether the requirements prescribed in each subparagraph of paragraph (2) are met."

The plaintiff applied for registration of the plaintiff to the defendant as "organization deemed a corporation" at the time of the plaintiff's filing of the application for registration of the business operator. Although the public official in charge simply provides tax code number, it is insufficient to recognize the above only with the statement of No. 5-1, No. 2, and No. 6, and there is no other evidence to acknowledge it.

Therefore, this part of the plaintiff's assertion is without merit.

3) We examine the second argument.

According to the above facts, an organization which has obtained permission from the Mayor of Seoul Special Metropolitan City to establish a foundation is the CCC General Maintenance Foundation. At the time of the transfer of the land in this case, the plaintiff is a church affiliated with the CCC General Maintenance Foundation, which is a foundation foundation, and has not been established or registered with the competent authority pursuant to the laws and regulations. Thus, it cannot be viewed as an "organization deemed a foundation" under Article 13

Therefore, this part of the plaintiff's assertion cannot be accepted, and the disposition of this case imposing transfer income tax on the premise that the plaintiff is not a "organization deemed a corporation" is legitimate.

3. Conclusion

Therefore, the plaintiff's claim is dismissed as it is without merit. It is so decided as per Disposition.