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1. All of the plaintiff's claims are dismissed.
2. The costs of lawsuit shall be borne by the Plaintiff.
Reasons
Details of the disposition
On October 21, 1980, the Plaintiff is a corporation incorporated for the purpose of manufacturing vessel paints, etc. as a joint venture of the Switzerland-based corporation (hereinafter “B”) and C, a domestic corporation, a joint venture of the C Co., Ltd. (the future trade name is “C”; hereinafter “C”) without distinguishing it from before and after the mutual change.
With respect to the dividends paid to B from 2009 to 2011 (hereinafter “instant dividends”), the Plaintiff withheld corporate tax equivalent to 10% of the dividend amount pursuant to Article 10(2)(a) of the Convention for the Avoidance of Double Taxation with respect to the Taxes on Income between the Government of the Republic of Korea and the Switzerland Government (hereinafter “Korea-Switzerland Tax Treaty”). The head of Busan Regional Tax Office conducted an investigation into corporate tax with respect to the Plaintiff from July 14, 2014 to August 29, 2014, and as a result, deemed that B does not constitute a beneficial owner of the instant dividend income, the Defendant is the “Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to the Taxes on Income between the Government of the Republic of Korea and the Government of the Netherlands” (hereinafter “Korea-Switzerland Tax Treaty”).
(B) notified the Plaintiff that the withheld corporate tax will be imposed on the Plaintiff by applying the limited tax rate of 15% in accordance with Article 10(2)(b).
Accordingly, on November 3, 2014, the Defendant corrected and notified the Plaintiff’s corporate tax of KRW 450,000,000 (including additional tax; hereinafter the same shall apply), corporate tax of KRW 450,000,000 for the year 209, corporate tax of KRW 600,000,000 for the year 209, corporate tax of KRW 300,000 for the year 2010, corporate tax of KRW 225,000 for the year 2010, corporate tax of KRW 225,000,000 for the year 201, and corporate tax of KRW 225,000 for the year 2011 for the year 2011 (hereinafter “instant disposition”).
On December 18, 2014, the Plaintiff was dissatisfied with the instant disposition and filed an appeal with the Tax Tribunal. However, the Tax Tribunal made the said appeal on November 11, 2015 during the instant lawsuit.