Seoul High Court-2013-Nu-10948 (2014.04.09)

(Incompetence to Hearing) The excessive benefits paid to executive officers such as controlling shareholders, etc. without justifiable grounds are subject to the non-performance of deductible expenses.

Where a corporation pays remuneration to an officer who is a controlling stockholder in excess of the amount paid to an officer in the same position without justifiable grounds, the excess amount shall be excluded from deductible expenses, and the internal regulations of the corporation, such as articles of incorporation, do not constitute justifiable

Article 19 of the Corporate Tax Act

2014du6753, revocation of disposition of imposing corporate tax, etc.

AA Development Corporation

1. The director of the Seocho Tax Office;

Seoul High Court Decision 2013Nu10948 Decided April 9, 2014

All appeals are dismissed.

The costs of appeal are assessed against the Plaintiff.

All of the records of this case and the judgment of the court below and the grounds of appeal were examined, but it is clear that the assertion on the grounds of appeal by the appellant constitutes Article 4 of the Act on Special Cases Concerning the Procedure for Appeal, and therefore, all of the appeals are dismissed under Article 5 of the same Act. It is so decided as per