Seoul Administrative Court 2016Guhap6970 ( October 19, 2017)

In calculating the ratio of voting stocks to apply the limited tax rate under the Korea-Japan Tax Treaty, treasury stocks are excluded.

(as with the judgment of the court of first instance) It is reasonable that its own shares should be excluded from the calculation of the requirement of 25 percent ownership of the voting shares under Article 10(2)(a) of the Korea-Japan Tax Treaty

Article 10 of the Korea-Japan Tax Treaty

2017Nu35846, revocation of disposition, etc. of imposing corporate tax

○○ Stock Company and 1

○ Head of tax office

on 01 October 01, 201

on December 22, 2016

1. All appeals by the defendant against the plaintiffs are dismissed.

2. The costs of appeal shall be borne by the Defendant.

1. Purport of claim

The defendant each disposition of collecting KRW 00,00,000 of corporate tax for 20* 00,000, 200, 2000, 2000, 200* corporate tax for 200,000, 200** 000,000 of corporate tax for 20* 00,000,000 of corporate tax for 200* 00,000,000 of corporate tax for 2010, and 2010 of corporate tax for 200* 00,00,000 of corporate tax for 2010.* The defendant* 200,000 of corporate tax for * 1,000,000 of corporate tax for 20* 1,000,000 of corporate tax for 20* 1,0000,000 of corporate tax for 200.

2. Purport of appeal

The judgment of the first instance is revoked. All plaintiffs' claims are dismissed.

1. Quotation of judgment of the first instance;

The reasoning of this court's decision is as follows: Article 8 (2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act are the reasons for the judgment of the court of first instance except that the following is added to Chapter 9 of the judgment of the court of first instance.

The defendant of the No. 10 (2) of the Korea-Japan Tax Treaty provides that "the "the Republic of Korea-Japan Tax Treaty shall apply the limited tax rate of dividend income," and the issue of voting stocks shall be determined at the time of issuance as to whether the above "isued" is the voting stocks. However, the shares of a corporation are naturally issued by a corporation, and the corresponding country is "the voting stocks issued by a corporation", and the same is "the voting stocks issued by a corporation", so it is difficult to interpret the meaning of "the above" as to determining whether the voting stocks are issued as at the time of issuance, because it is difficult to interpret the meaning of "the time of issuance."

The decision of the first instance court is justifiable, and all appeals by the defendant against the plaintiffs are dismissed as it is without merit.