Seoul Administrative Court 2015Gudan54769 ( January 1, 2015)

Whether a rental business entity constitutes long-term rental houses for unregistered housing units under the Rental Housing Act

(1) The instant rental house cannot be deemed as a long-term rental house under Article 155(19)2 of the former Enforcement Decree of the Income Tax Act solely on the ground that the pertinent rental house was registered as a business operator under the Income Tax Act for rental housing and meets the criteria for registration of rental business operators under Article 7 of the Enforcement Decree of the Rental Housing Act

Article 168 of Income Tax Act and Article 6 of Rental Housing Act

2015Nu63359 Revocation of disposition of revocation of capital gains tax imposition

○ ○

○ Head of tax office

on October 16, 2016

on October 06, 2016

1. The plaintiff's appeal is dismissed.

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

Cheong-gu and purport of appeal

The judgment of the first instance shall be revoked. The defendant shall transfer income accruing from September 12, 2014 to the plaintiff in 2013.

The imposition of tax in KRW 150,269,40 shall be revoked.

1. Quotation of judgment of the first instance;

The reasoning for this Court’s explanation concerning this case is as follows: (a) part of the judgment of the court of first instance is dismissed as set forth in paragraph (2) below; and (b) the reasoning for the judgment of the court of first instance is as stated in the reasoning of the judgment except for the addition of the judgment of the plaintiff as set forth in paragraph (3) below; and (c) the meaning of the language used in this case is cited in accordance with Article 8(2) of the Administrative Litigation Act and the main sentence of Article 420 of the Civil Procedure Act (hereinafter

2. Parts in height:

- The 2nd page 15 puts the 'Sackk' into the house.

- At the second page, there is no dispute over '(based on recognition'), Gap's evidence 1, 2, 6, 7, 8, 10, Eul's evidence 1 and 2, and the purport of the whole pleadings.

3. Additional determination

A. The plaintiff's assertion

In light of the fact that the Government continuously alleviateds the rental business registration standards by amending the Enforcement Decree of the Rental Housing Act in accordance with the purport of the Rental Housing Act, which intends to encourage rental housing to promote housing stability, the instant rental housing should be deemed as a long-term rental house even if the Plaintiff was a business proprietor who registered business under the Income Tax Act at the time of the transfer date of the instant transferred house, and satisfies the rental business registration standards prescribed by the Enforcement Decree of the Rental Housing Act, as long as the Plaintiff did not register the rental business operator under the Rental Housing Act

B. Determination

Even if the Enforcement Decree of the Rental Housing Act is amended in order to promote housing stability by encouraging rental housing as alleged by the Plaintiff, it is clear that the rental business operator is alleviated. ① The purpose of Article 167-3(1)2 of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 25193, Feb. 21, 2014; hereinafter the same shall apply) is to make business registration under Article 168 of the Income Tax Act and the rental business registration under Article 6 of the Rental Housing Act as to the tenant of long-term rental housing. ② The Rental Housing Act is for the purpose of promoting construction of rental housing and stabilizing the residential life of the people (Article 1). Meanwhile, the Income Tax Act is for promoting the equity of tax burden and contributing to the smooth procurement of financial revenue of the rental business operator under the Rental Housing Act (Article 1 of the Income Tax Act) by imposing taxes on the rental business operator under Article 5 of the Enforcement Decree of the Rental Housing Act according to the nature and purpose of the rental housing income and purpose of business registration under the Rental Housing Act.

Therefore, the disposition of this case that did not constitute a long-term rental house.

It cannot be deemed unlawful as a taxation disregarding the substance. The Plaintiff’s assertion is without merit.

4. Conclusion

Therefore, the judgment of the first instance court is legitimate, and the plaintiff's appeal is dismissed as it is without merit. It is so decided as per Disposition.