early 208west08 0828 ( October 16, 2009)

The nature of the disposable World Cup deposit and the time when profits and losses therefrom accrue.

The deposit for the disposable World Cup is not the obligation to be returned to the customer, but the sales proceeds of the disposable World Cup (sale with resale agreement) and the time when the World Cup deposit reverts to the customer is recognized as being after the lapse of the redemption period (six months).

The contents of the decision shall be the same as attached.

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

The Defendant’s imposition of corporate tax of KRW 173,126,240 for the business year of 2003, for the Plaintiff on November 14, 2007, each disposition of imposing corporate tax of KRW 118,581,580 for the business year of 2004, for the business year of 2004, for the business year of 9,853,850, and for the business year of 2006.

1. Circumstances of the disposition;

A. Conclusion of a voluntary agreement between the Plaintiff et al. and the Minister of Environment to reduce the use of disposable products (hereinafter “instant agreement”).

(1) Date of agreement: October 4, 2002

(2) Participating entity: The plaintiff and six failed food business entities (hereinafter referred to as "business entities")

(3) Contents of the principal agreement

(A) As incentives to promote the recovery and recycling of disposable cups, a business operator shall receive 100 won per unit for the disposable cups that the customer uses out of the store, and shall immediately refund the same amount for the disposable cups that have been recovered.

(B) The entrepreneur shall disclose the details of the receipt of the one-time World Cup in a regular (half-yearly) manner, and the proceeds therefrom shall be used to return to the customer by means of the provision of goods or other means or to support environmental conservation activities.

(c)the Government shall assist in the smooth and smooth recycling of disposable cups.

B. Receipt, disbursement and accounting of the Plaintiff’s security deposit (from January 1, 2003)

(1) 100 deposits received in cash 100/ represented for the disposable cups for the sale of packages 100 won

(2) 100 cash deposit deposit amount of 100 won when a customer returns a disposable cup; 2.00 won in cash

(3) When 6 months have elapsed from the date of the receipt of the deposit, use the unclaimed deposit in the environmental conservation project: the difference) deposit 100 / cash 100

C. The defendant's imposition of corporate tax against the plaintiff (hereinafter "the disposition of this case").

(1) Date of disposal: November 14, 2007

(2) Reasons for disposal: Unclaimed deposit which has passed six months after receipt can be used for environmental preservation projects; thus, when six months have elapsed, it should be included in the profit, and the amount used for environmental preservation projects among them shall be included in the loss.

(c) Gross income and losses by business year; and

(d) the corrected and notified amount of corporate tax;

(a) Business year 2003: 173,126,240 won;

(b) Business year 2004: 9,853,850 won;

(c) Business year 2006: 118,581,580 won (including additional dues on refund) for the business year 2005;

[Ground of recognition] Facts without dispute, Gap 1 to 5 evidence, Eul 1 to 4 evidence (including each number), the purport of the whole pleadings

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

(1) The instant deposit does not accrue to the Plaintiff even after six months have elapsed since it was received. The Plaintiff’s obligation to return the deposit is an obligation arising out of the Plaintiff’s commercial activity, and the five-year commercial extinctive prescription expires, or the Plaintiff’s obligation to refund to the customer is extinguished.

(2) The mere fact that the unregistered security deposit can be used for the environment preservation project even after six months have elapsed since it was received pursuant to the guidelines stipulated in the instant agreement, merely a private contract, is not attributable to either the Plaintiff’s obligation to return the deposit to the customer or the Plaintiff’s profit. Ultimately, the unpaid security deposit can be included in the gross income only when the obligation to return is exempted after the lapse of five-year commercial extinctive prescription

(3) Therefore, the Defendant’s disposition of this case, which was based on the premise that the unclaimed bonds for which six months have elapsed were included in gross income, is unlawful.

(b) Related statutes;

It is as shown in the attached Form.

(c) Fact of recognition;

(1) Operational Guidelines under the instant agreement (hereinafter “Operation Guidelines”)

(a)the receipt of deposits (Article 7);

O Business Operators may receive the World Cup deposits as provided for in the Convention for the World Cup that customers move out of the store.

O In such cases, the receipt shall be issued and the details of the receipt of the deposit shall be indicated separately from the details of the receipt of the general goods.

(B) Refund (Article 8)

O A business operator shall immediately refund the deposit to a customer where the customer returns the World Cup.

O In the case of refund, it shall be entered in the one-time World Cup refund ledger in a specific form.

(c) Guidance for refund, etc. (Article 11)

An O business operator shall post publicity materials that inform customers of the details of the receipt, refund, etc. of deposits at locations easily visible to customers.

The promotional materials shall specify that the deposits deposited by the customer are used for environmental preservation projects, such as the reduction of waste generation and the promotion of recycling, if they are not refunded within six months.

(d) the timing and purpose of the use of the unrepaid amount (Articles XII and XIII);

O A business operator shall use five items recycling businesses (hereinafter referred to as "environmental preservation business"), such as the business related to the reduction of wastes and the promotion of recycling of disposable products, if the deposit for the cupped Cup in his/her custody has not been returned for six months.

O The business operator shall not use the refund money for the purpose of purchasing goods, publicity, etc. by a company that is not related to environmental preservation.

Where a business operator intends to use a refund for any purpose other than environmental preservation, he/she shall consult with the Minister of Environment in advance.

(e) Accounting Items and the settlement thereof (Article 20)

o The sales proceeds of the disposable cups shall be accounted separately from the deposits, interest income, and other sales proceeds of the company, separately from the sales proceeds of the company.

o The expenditure of the sales proceeds of the disposable World Cup shall be kept separately from the business of the company separately from the other business of the company, by dividing it into the customer refund, the subsidy for environmental preservation project, and other expenditure. The latter exemption is

(f) Preparation and safekeeping of documents (Article 21)

O. To prepare and keep the ledger for collection and refund of the deposit for the World Cup and the ledger for use of the amount of refund for the refund.

O. Documentary evidence shall be preserved for two years, attaching it to the document.

(2) On March 7, 2008, the Minister of Environment abolished the World Cup deposit system on March 20, 2008, pursuant to the Convention on the Elimination of Madrid Industry and Related Persons of the Madrid Industry.

[Reasons for Recognition] Gap evidence 8, Eul evidence 5-1 to 3, the purport of the whole pleadings

D. Determination

(1) Whether the security deposit for the instant case is reverted to the Plaintiff

(A) The nature of the disposable World Cup transaction between the Plaintiff and the customer

Comprehensively taking account of the following circumstances revealed in the above facts and arguments, it is reasonable to view that the disposable cups transaction between the plaintiff and the customer was a sale with resale agreement within six months.

O The disposable World Cup provided by the Plaintiff to the customer is a movable property as provided by Article 99(2) of the Civil Code, which is a subsidiary product incidental to 's par value'.

Pursuant to Article 68 (1) of the Enforcement Decree of the Corporate Tax Act, when selling goods, products, or other products (hereinafter referred to as "goods, etc."), the business year in which earnings and losses accrue shall be the date on which the goods, etc.

O If the Plaintiff provides a disposable cup to the customer, the ownership of the disposable cups is transferred to the customer pursuant to Articles 100(2) and 188(1) of the Civil Act.

O If the instant deposit does not belong to the Plaintiff, but is a debt to be returned to the Plaintiff for five years, the ownership of disposable cups sold to the Plaintiff is also deemed to have been reserved to the Plaintiff. This goes against the ordinary transactional concept.

O The instant Convention provides 100 won per piece for disposable cups, and the proceeds from the instant Convention is used to return to the customer or to support environmental conservation activities by means of the provision of personal goods or others." The deposit received for the disposable cups is defined as the profits from the entrepreneur's occurrence.

O In accordance with the guidelines for the operation of this case, the business operator shall post promotional materials on the deposit system to customers, and the promotional materials clearly indicate that the business operator may use the money deposited by the customer at will in the environmental preservation project if it is not paid within six months.

O Customer paid KRW 100 won deposited in the instant agreement and the guidelines for the operation thereof, and included food in the disposable cups. If the customer returned the instant cups within six months, the customer would be refunded the deposit. Therefore, it is reasonable to deem that the Plaintiff sold the instant cups to the Plaintiff and the customer when the customer paid the deposit of KRW 100 to the Plaintiff and received the instant cups for the first time, but the Plaintiff claimed the refund within a certain period of time (six months).

O According to the operation guidelines of this case, the business operator may use the unregistered deposit for the environmental conservation project without the consent of the customer until the customer requests the refund for six months after receipt.

O The sales proceeds of disposable cups under the operating guidelines of this case shall be deposited, interest income, and other income.

By dividing the company's other sales proceeds by dividing it into two categories, the Convention on this case and the last sentence of the Korea-Japan stipulate the deposit as the sales proceeds.

Pursuant to the guidelines of this case, the purpose of the deposit of this case has been set for its use, and the purpose of use has to be strictly specified for any purpose other than the purpose of use, such as having to consult with the Minister of Environment in advance, and after its use, it is divided into customer refund funds, subsidies for environmental preservation projects, and other expenses, and has to be accounted separately for separately from the business of the company’s other business. Therefore, if the deposit of this case does not belong to the Plaintiff, even if the Plaintiff consulted with the Minister of Environment, the customer

Article 22 of the former Act on the Promotion of Saving and Recycling of Resources (amended by Act No. 7021 of Dec. 30, 2003) provides that the manufacturer and importer of the goods prescribed by Presidential Decree may include an amount different from the ex-factory price or import price of the goods (hereinafter referred to as "container deposit") in the price of the goods in order to facilitate the recovery and reuse of containers used in the goods, and the manufacturer, etc. of the goods whose containers include the container deposit shall refund the container deposit to the person who returns the containers.

(B) Nature of the instant case deposit

In light of the above circumstances, the deposit of this case is not the obligation of the plaintiff to return to the customer for five years, but the sales proceeds of disposable cups belonging to the plaintiff, and it is the amount strictly limited according to the agreement of this case, etc.

(2) Time when loss or loss from the bonds of this case is reverted

(A) According to Article 40(1) of the Corporate Tax Act, the fiscal year of accrual of earnings and losses of a domestic corporation for each fiscal year shall be the fiscal year which includes the date on which the concerned earnings and losses are determined.

(B) The instant deposit may be included in the Plaintiff’s gross income when the ownership of the instant deposit becomes final and conclusive as the Plaintiff could be used for environmental preservation projects according to the instant agreement, etc. after six months have elapsed since it was the money to be paid by the customer at the time of re-purchase of the instant World Cup in response to the request for the repurchase of the instant World Cup within six months from the date of sale or receipt.

(C) Furthermore, even after being recognized as gains from accounting, the Plaintiff could return the deposit to the customer or use it for environmental preservation business at the customer’s request, and thus, it cannot be said that the Plaintiff suffered losses by recognizing it as gains from the time different from the Plaintiff’s assertion.

(3) Sub-determination: The defendant's disposition of this case based on the premise that the deposit of this case was included in the plaintiff's gross income six months after the plaintiff received it.

3. Conclusion

The plaintiff's claim is dismissed because there is no reason for the plaintiff's claim.