All appeals are dismissed.

The costs of appeal are assessed against each party.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Resident judgment and the application of the tax treaty to the members of C Company (Law No. 1 and 2 of the Plaintiff’s ground of appeal and the Defendant’s ground of appeal No. 2)

A. At the time of the payment of the instant dividend income, the lower court determined that the 15% limited tax rate should be applied pursuant to Article 10(2)(b) of the Agreement between the Republic of Korea and the Federal Republic of Germany for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to the amount corresponding to the percentage of German resident among the instant dividend income, and the 25% tax rate should be applied pursuant to Article 98(1)3 of the former Corporate Tax Act (amended by Act No. 9267 of Dec. 26, 2008) with respect to the amount corresponding to the percentage of German resident, among the members of the instant dividend income, based on a resident certificate, etc.

B. Examining the reasoning of the lower judgment in light of the evidence duly admitted, the lower court’s judgment is justifiable in accordance with the judgment of remand.

The lower judgment did not err by misapprehending the legal doctrine regarding the resident status and the scope of application of the Korea- Germany Tax Treaty, or by misapprehending the legal doctrine regarding the burden of proof of the German resident percentage, contrary to what is alleged in the grounds of

2. Whether Article 27(2) of the Korea-Japan Tax Treaty is applied to C (Defendant’s ground of appeal No. 1)

(a) The Korea- Germany Tax Treaty does not preclude the application of the provisions on the prevention of tax evasion or tax avoidance, insofar as the domestic provisions of a Contracting State’s domestic law are in accordance with the principles contained in

[Article 27 (1) (a) of the Korea- Germany Tax Treaty] and the operation of the relevant business.