Where the amount of compensation increases due to an objection raised after land expropriation, the time of transfer.

In cases of land expropriation, the payment date shall be deemed the transfer date, but in cases where the increased compensation is determined, the payment date shall be the date the increased compensation is received or in cases where the transfer of ownership is registered before the payment date, the registration date shall be the transfer

Article 98 of the Income Tax Act: Time of Transfer or Acquisition

1. The request is dismissed.

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

The Defendant’s disposition of capital gains tax of KRW 43,140,100 shall be revoked to the Plaintiff on April 3, 2006.

1. Basic facts

A. The same shall apply to ○○○-Eup ○○, ○, ○, ○, ○, 780-4 square meters, owned by the Plaintiff and the same shall apply to 26 square meters.

On May 30, 2005, the Korea Land Corporation deposited KRW 310,871,850 in ○○○○○○○ Housing Site Development Project zone executed by the Korea Land Corporation (hereinafter “instant land”) with respect to the instant land on June 23, 2005, and completed the registration of ownership transfer on the ground of land expropriation on June 7, 2005, on June 23, 2005. Upon the Plaintiff’s filing of objection, the Korea Land Corporation additionally deposited KRW 15,67,250 for increased compensation on November 25, 2005.

B. On April 3, 2006, the Defendant rendered a disposition imposing capital gains tax of KRW 43,140,100 for the year 2005 (hereinafter “instant disposition”) on June 23, 2005 by setting the time of the transfer of the instant land as the date of receipt of the transfer registration of ownership and using the transfer value as the compensation amount.

2. The parties' assertion

The plaintiff asserts that the transfer date of May 30, 2005, which was the date of the initial deposit of compensation for losses, should be the date of transfer, and that the transfer date of this case should be the date of June 23, 2005, which was the date of receipt of the registration of real estate transfer only for increased compensation. However, the defendant's disposition of this case, which was viewed as the date of the transfer of the land of this case as the date of June 23, 2005, should be revoked because it is unlawful.

3. Determination

According to Articles 96 (1) and 94 (1) 1 of the former Income Tax Act (amended by Act No. 7579 of Jul. 13, 2005; hereinafter the same shall apply), "transfer value of land shall be based on the standard market price as at the time of transfer of the relevant asset." In calculating transfer gains of assets, Article 98 of the former Income Tax Act provides that the time of acquisition and transfer shall be determined by Presidential Decree. Article 162 (1) of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 19327 of Feb. 9, 2006) provides that "the time of acquisition and transfer under Article 98 of the Act shall be the date of settlement of the price of the relevant assets except for the following cases, the date of acquisition and transfer of ownership shall be 20 days before the date of expropriation of the land, and it shall be 10 days before the date of expropriation or liquidation of the land in accordance with the Act."

4. Conclusion

Therefore, the plaintiff's claim is without merit, and it is so decided as per Disposition.