Where a general taxable person is converted to a special taxable person, the relationship of special taxation;

In light of the purport of Article 25(1) and (2), Article 30(1) and (2) of the Value-Added Tax Act, Article 78(1) of the Enforcement Decree of the same Act, if a person registered as a general taxable person but becomes an individual entrepreneur who meets the criteria for a special taxation under Article 25 of the Value-Added Tax Act, he/she shall submit a report on waiver of the special taxation under Article 30(2) of the Value-Added Tax Act and Article 78(1) of the Enforcement Decree of the same Act to the head of the competent district tax office, and if the person fails to submit the said report, the type of taxation is automatically converted to the business entity subject to the special taxation at the time prescribed in Article 7

Article 25(1) of the Value-Added Tax Act, Articles 25(2), 30(1), and 30(2) of the Value-Added Tax Act, Articles 74-2(1) and 78(1) of the Enforcement Decree of the Value-Added Tax Act

[Defendant-Appellee] Plaintiff 1 et al.

Head of Namgu Tax Office

Daegu High Court Decision 87Gu240 delivered on February 1, 1989

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

We examine the grounds of appeal.

Article 25 (1) of the Value-Added Tax Act provides that a private entrepreneur shall be subject to the special taxation in cases where the proceeds from supply of goods and services in the immediately preceding calendar year fall short of the amount prescribed by the Presidential Decree. Article 25 (2) provides that "any private entrepreneur who starts a business in the immediately preceding or preceding calendar year shall be subject to the provisions of paragraph (1) on the basis of the amount converted by 12 months from the date of commencing such business to the end of the taxable period." Article 30 (1) of the Value-Added Tax Act provides that "any person who intends to be subject to the provisions of paragraph (1) shall file a report with the Government ten days prior to the beginning of the taxable period to be subjected to the application." Article 78 (1) of the Enforcement Decree of the Value-Added Tax Act provides that "any person who starts a business in the immediately preceding or immediately preceding calendar year shall submit a report on the waiver of special taxation stating the following matters to the head of the tax office to which the person is subject to the special taxation under Article 30 (2) of the Value-Added Tax Act."

The court below made business registration as a general taxable person operating inn on August 31, 1984 and newly started a new business from April 1, 1985, and since June 30, 1985, since the total amount of proceeds from supply converted from 12 months to June 30, 1985 falls short of 24,00,000 won, the plaintiff newly commenced a new business shall be deemed to have been converted from 1 taxable period to 1/1986 to 24,00,000, and in this case, it is proper that the plaintiff's business registration as a general taxable person cannot be deemed to have waived the special taxation only on the ground that the plaintiff's business registration as a general taxable person cannot be deemed to have been abandoned. In

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Yoon So-young (Presiding Justice)