1. The disposition rejecting corporate tax correction rendered by the Defendant to the Plaintiff on May 20, 2015 shall be revoked.

2. The costs of the lawsuit are assessed against the defendant.

1. Details of the disposition;

A. On August 11, 1981, the Plaintiff acquired and owned 46,440 square meters of B forest land (divided into six parcels on November 13, 2013; hereinafter “instant real estate”). On March 10, 2014, the Plaintiff entered into a contract to sell at KRW 11,240,000 with the transfer value at KRW 11,240,000 with the non-party construction corporation, and completed the registration of ownership transfer on June 20, 2014.

B. On August 21, 2014, the Plaintiff paid capital gains tax of KRW 2,914,917,972 to the Defendant on the instant real estate by scheduled return.

C. Meanwhile, on December 24, 2014, the Plaintiff was approved by the head of the competent tax office as an “organization deemed a corporation” pursuant to Article 13(2) of the Framework Act on National Taxes.

On March 17, 2015, the Plaintiff obtained approval from the head of the competent tax office having jurisdiction over December 24, 2014, which was after the date of the transfer of the instant real estate, as an “organization deemed a corporation” under the Framework Act on National Taxes. However, inasmuch as the disposal profit or loss of the instant real estate reverts to the Plaintiff, the Plaintiff’s “organization deemed a corporation” and the starting date of the first business year is June 20, 2014 pursuant to Article 3(2) of the Enforcement Decree of the Corporate Tax Act (hereinafter “instant issues clause”), the Corporate Tax Act applies to the transfer margin of the instant real estate, and the gains from the transfer of the instant real estate, which was used for its own proper business for at least three consecutive years, should be excluded from taxable income under the Corporate Tax Act, and thus, the amount of tax already paid should be refunded.

E. On May 20, 2015, the Defendant rendered the instant disposition rejecting the Plaintiff’s request for correction on the grounds delineated below.

Article 13 (2) 3 of the Framework Act on National Taxes provides that "a private organization, foundation, or other organization shall not distribute profits from its members to its members as a legal entity", but the plaintiff's clan shall be approved as a non-profit legal entity.